Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
The Gross Domestic Product (“GDP”) is the measure of the market value of the goods and services produced by labor and property in the United States.
Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Lehman Brothers New York Tax Exempt Index is an unmanaged index composed of investment grade New York tax-exempt securities, all having a $50 million minimum maturity value.
Lipper High Current Yield Funds Average is an average of managed mutual funds that aim at high (relative) current yield from fixed income securities, which have no quality or maturity restrictions, and tend to invest in lower grade debt issues.
Lipper Intermediate Investment-Grade Debt Funds Average is an average of managed mutual funds that invest at least 65% of their assets in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five- to ten-years.
Lipper International Large-Cap Core Funds Average is an average of managed mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper’s international large-cap floor. International large-cap core funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to their large-cap specific subset of the S&P/Citigroup World ex-U.S. BMI.
Lipper Large-Cap Core Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the Standard & Poor’s Mid-Cap 400 Index.
Lipper Large-Cap Growth Funds Average is an average of managed mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.
Lipper Mid-Cap Growth Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 300% of the dollar-weighted median market capitalization of the Standard & Poor’s MidCap 400 Index.
Lipper Multi-Cap Value Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest in a variety of market capitalization ranges, without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap funds will generally have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the S&P MidCap 400 Index. Multi-Cap value funds seek long-term growth of capital by investing in companies that are considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. These funds will normally have a below-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified multi-cap funds universe average.
Lipper New York Municipal Debt Funds Average is an average of managed mutual funds that invest at least 65% of their assets in municipal debt issues that are exempt from taxation in New York or a city in New York.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.
Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The Russell Universe - Russell is a recognized leader in consulting, multi-manager investing and institutional investment management. Our consultants advise clients on more than $2 trillion in assets. We deliver investment programs to over 2,000 clients in 44 countries. With more than $230 billion in assets in our funds, Russell researchers meet with over 4,000 investment managers around the world to evaluate their investment process.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”) is an unmanaged index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation.
Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.
Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge.
Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Fund do not match those in the indexes and performance of the Fund will differ. Investors cannot invest directly in an index.
Dear Shareholder:
In a period of market volatility, mutual funds offer a “hedge” against extremes. Since the purpose of mutual funds is to provide a balance of investments and since fund advisers monitor performance of individual holdings in a portfolio, investors are generally protected against extremes. Over the long run, mutual funds have continued to be a wise investment.
The HSBC Investor Funds have performed in accordance with the swings of the equities and fixed income markets. Many of the HSBC Investor Funds have outperformed their industry benchmarks, most have equaled the benchmark and a few underperformed. Management and the board monitor performance continuously. While any Fund can underperform for a limited period of time, Funds that continue to underperform are put on a watch list, and if a downtrend continues, the board and management will re-evaluate the subadviser relationship.
With over 12 trillion dollars invested, mutual funds remain one of the best ways to sustain both value and growth of a portfolio. The diversity of the HSBC Fund Family provides a useful way to ride the wave of volatility. Please consult your financial adviser to determine the best mix of funds for your individual needs. We encourage you to be active in overseeing your own investments and welcome your comments about how we can provide the best service to you.
Thanks,
Larry M. Robbins, Chairman, HSBC Investor Funds
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1 | HSBC INVESTOR FAMILY OF FUNDS |
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Commentary From the Certain parties |
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HSBC Investments (USA) Inc.
Effective June 2, 2008, changed name to HSBC Global Asset Management (USA) Inc.
Economic review
Several factors weighed on the U.S. economy during the six-month period between November 1, 2007 and April 30, 2008. The ongoing decline in the housing market depressed activity in industries related both directly and indirectly to the housing market, including homebuilders, home improvement retailers and furniture makers. The housing slump also made it more difficult for consumers to borrow against their home equity. That development weakened consumer spending, even as rising prices on food and energy and a flagging employment picture caused Americans to cut back. Consumer spending accounts for more than two-thirds of U.S. economic activity. Therefore, the consumer slowdown posed a significant threat to economic growth.
The housing slump also contributed to rising defaults on subprime mortgages. Higher subprime mortgage defaults led to losses for securities backed by these low-quality home loans, which had become widely dispersed throughout the global financial system in recent years. Losses in subprime mortgage-backed securities forced a number of financial firms to write-down the value of their holdings by billions of dollars. Moreover, market participants became concerned about the possible extent of problems related to weak mortgages. Lenders, concerned that they could not accurately gauge prospective borrowers’ financial health, became extremely cautious about extending credit, resulting in a severe credit crunch that depressed economic growth.
The Federal Reserve Board (the “Fed”) acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed reduced the federal funds rate, its target short-term interest rate, from 4.50% to 2.00% during the six month period ended April 30, 2008 in order to inject liquidity into the financial markets. It also orchestrated a buyout of troubled securities firm Bear Stearns, to prevent problems at the company from undermining the broad financial system. The Fed also sought to improve financial institutions’ access to credit by accepting a wider variety of assets as collateral.
Exports helped the U.S. economy continue to expand despite the difficult environment during the early months of 2008. A weakening dollar made U.S. companies’ products and services more competitive overseas, while increasing the value of revenues earned in foreign currencies. The U.S. Gross Domestic Product1 grew at annualized rates of 0.6% during the fourth quarter of 2007 and 0.9% during the first quarter of 2008.
The U.S. economy’s struggles led to signs of a global slowdown. Growth in Europe appeared to weaken, and evidence emerged that developing economies, which have generated powerful growth in recent years, were beginning to feel the effects of America’s problems as well. For example, China’s year-over-year exports grew 22.5% in December 2007, but just 6.5% in February 2008. Nevertheless, the global economy remained healthy and continued to expand more quickly than the U.S. economy during this period.
Market review
Investors during most of this six-month period responded to the uncertain economic environment by fleeing from the perceived risk of stocks and into the perceived safety of high-quality bonds. U.S. stock returns were exceptionally volatile during this time, as the lack of clarity about the direction of the economy; the subprime crisis and the credit crunch caused traders to react aggressively in response to emerging data. The U.S. market recovered somewhat between mid-March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. For the six month period ended April 30, 2008, the S&P 500 returned -9.63%, while the small-cap sector as represented by the Russell 2000® Index returned -12.92%.
Financial stocks suffered some of the U.S. market’s greatest declines, as shareholders sold financial stocks due to concerns about large write-downs and the potential for further damage from the subprime mortgage crisis. Stocks in the financial sector rebounded modestly toward the end of the period, as bargain-hunting investors began to believe that the market had priced in the worst of the subprime crisis.
Consumer discretionary stocks also performed poorly during this period, as investors worried that high food and energy prices and a weaker employment picture would reduce the money individuals had available to spend on non-essential items. Conversely, energy and materials stocks benefited from rising commodity prices, and posted some of the market’s strongest returns during this period.
Foreign stocks generally posted losses, with the MSCI EAFE Index of developed foreign stock markets returning -8.99% during the period under review. Investors sold foreign stocks due to a general aversion to risk and because of concerns about the repercussions from the turmoil in the credit markets. Emerging markets in Asia, which had performed exceptionally well in recent years, particularly struggled as investors sold assets they perceived to be risky. Developing markets in other parts of the world meanwhile held up relatively well, as they benefited from rising commodity prices.
Investors concerned about risk piled into bonds issued by the U.S. Treasury and foreign governments. Yields declined and prices rose on government bonds, causing the spread between the yield on government securities and corporate bonds to widen substantially. High-yield bonds—debt issued by companies with relatively weak finances—trailed other sectors of the fixed-income market, as investors favored the greater stability of higher-quality bonds. The Lehman Brothers U.S. Aggregate Index, which tracks the broad fixed-income market, returned 4.08% for the six months through April 30, 2008.
1 For additional information, please refer to the Glossary of Terms.
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HSBC INVESTOR FAMILY OF FUNDS | 2 |
HSBC Investor Core Plus Fixed Income Fund
(Class A Shares, B Shares, C Shares and I Shares)
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team
The HSBC Investor Core Plus Fixed Income Fund (the “Fund”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Fund utilizes a two-tier structure, commonly known as a “master-feeder,” in which the Fund invest all of its investable assets in the HSBC Investor Core Plus Fixed Income Portfolio (the “Portfolio”). The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Market Commentary
For the six month period ended April 30, 2008, the Class A Shares returned -1.04% (without sales charge) and the Class I Shares (previously the Advisor Class Shares) of the Fund produced a -0.81% total return. That compared to a total return of 4.08% and 1.75% for the Lehman Brothers U.S. Aggregate Index1 and the Lipper Intermediate Investment-Grade Debt Funds Average1, respectively.
Past performance is no guarantee of future results.
Portfolio Performance
The Fund held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Fund’s emphasis on other sectors weighed on relative returns.*
Security selection also reduced the Fund’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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3 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Core Plus Fixed Income Fund - As of April 30, 2008 |
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Fund Performance | | | | | | | Average Annual Total Return (%) | | Expense
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As of April 30, 2008 | | Inception
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HSBC Investor Core Plus Fixed Income Fund Class A1 | | 8/26/96 | | -5.72 | | | -3.92 | | | 2.51 | | | 4.43 | | | 5.13 | | | 1.41 | | | 0.70 | | |
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HSBC Investor Core Plus Fixed Income Fund Class B2 | | 1/6/98 | | -5.27 | | | -3.68 | | | 2.75 | | | 4.48 | | | 4.43 | | | 2.16 | | | 1.45 | | |
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HSBC Investor Core Plus Fixed Income Fund Class C3 | | 11/4/98 | | -2.38 | | | -0.89 | | | 2.72 | | | — | | | 4.18 | | | 2.16 | | | 1.45 | | |
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HSBC Investor Core Plus Fixed Income Fund Class I** | | 1/9/95 | | -0.81 | | | 1.26 | | | 3.85 | | | 5.42 | | | 6.53 | | | 0.72 | | | 0.45 | | |
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Lehman Brothers U.S. Aggregate Index4 | | — | | 4.08 | | | 6.87 | | | 4.37 | | | 5.96 | | | N/A | | | N/A | | | N/A | | |
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Lipper Intermediate Investment-Grade Debt Funds Average4 | | — | | 1.75 | | | 3.39 | | | 3.36 | | | 5.06 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for Class A Shares, Class B Shares, Class C Shares and Class I Shares of the Fund for the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the period ended April 30, 2008 would have been lower.
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** | The Class I Shares of the HSBC Core Plus Fixed Income Fund are part of the Advisor Funds Trust. |
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1 | Reflects the maximum sales charge of 4.75%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. Effective July 2006, the Fund was reclassified from the Lipper General Bond Funds Average to the Lipper Intermediate Investment-Grade Debt Funds Average. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund’s performance is measured against the Lehman Brothers U.S. Aggregate Index, an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 4 |
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Portfolio Reviews |
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HSBC Investor High Yield Fixed Income Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Halbis Capital Management (USA) Inc., High Yield Team |
The HSBC Investor High Yield Fixed Income Fund (the “Fund”) seeks to provide a high level of current income and capital appreciation. HSBC Investments (USA) Inc. serves as investment adviser to the Fund. The Halbis High Yield Team provides the day to day management of the portfolio. The Team’s philosophy is focused on delivering sustainable value added performance in the high yield fixed income market. The investment approach is a combination of top-down sector/industry selection and bottom-up security/quality selection. The team rotates sectors and themes within the high yield universe during different market environments seeking to add value, endeavoring to take advantage of market inefficiencies in order to outperform in both up and down markets. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. High yield bonds are subject to greater risks than investment grade bonds, such as the increased risk of default because of the lower credit quality of the issues.
Market Commentary
The Fund delivered a total return of -1.65% (without sales charge) for Class A Shares and -1.53% for Class I Shares for the six month period ended April 30, 2008. That compared to -0.22% and -2.01% total return for the Fund’s benchmarks, the Citigroup U.S. High Yield Market Capped Index1 and the Lipper High Current Yield Funds Average1, respectively.
Past performance is no guarantee of future results.
Portfolio Performance
High-yield bond performance was volatile during the period under review, as investors tried to gauge the likely repercussions of the economic slowdown and the credit crunch. The Fund generated gains during three of the six months in this period ended April 30, 2008, and posted losses during the other three months.
The Fund held an overweight allocation to the energy sector. The relatively large position in energy lifted returns against the benchmark, as energy companies benefited from surging oil and gas prices. We also held underweight positions in the homebuilding and building products industries. Bonds issued by companies in those industries generally performed poorly due to the ongoing slump in the housing market, so the Fund’s smaller-than-benchmark stakes helped its performance against the index.*
A relatively large position in bonds of gaming companies hurt the Fund’s relative return. Consumers facing higher food and energy prices cut back on discretionary entertainment, thereby depressing revenues at these firms and causing their bonds to trade lower. The Fund held a smaller stake than the benchmark in bonds rated BBB, the lowest tier of the investment-grade bond universe, which also weighed on relative performance. BBB-rated bonds posted the benchmark’s strongest returns for the six month period as a whole, despite intermittent strength from lower-quality bonds.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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5 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor High Yield Fixed Income Fund - As of April 30, 2008 |
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Fund Performance | | | | | | | Average Annual
Total Return (%) | | Expense
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As of April 30, 2008 | | Inception
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HSBC Investor High Yield Fixed Income Fund Class A1 | | 11/18/05 | | -6.33 | | | -6.61 | | | 3.49 | | | 2.93 | | | 0.80 | | |
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HSBC Investor High Yield Fixed Income Fund Class B2 | | 11/21/05 | | -5.65 | | | -6.26 | | | 4.11 | | | 3.68 | | | 1.55 | | |
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HSBC Investor High Yield Fixed Income Fund Class C3 | | 12/14/05 | | -2.96 | | | -3.70 | | | 4.80 | | | 3.68 | | | 1.55 | | |
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HSBC Investor High Yield Fixed Income Fund Class I | | 11/18/05 | | -1.53 | | | -1.81 | | | 5.83 | | | 2.68 | | | 0.55 | | |
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Citigroup U.S. High Yield Market Capped Index4 | | — | | -0.22 | | | -0.23 | | | N/A | | | N/A | | | N/A | | |
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Merrill Lynch U.S. High Yield Master II Index4 | | — | | -0.77 | | | -0.83 | | | N/A | | | N/A | | | N/A | | |
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Lipper High Current Yield Funds Average4 | | — | | -2.01 | | | -2.22 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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1 | Reflects the maximum sales charge of 4.75%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund has changed its standardized performance benchmark from the Merrill Lynch U.S. High Yield Master II Index to the Citigroup U.S. High Yield Market Capped Index to more closely reflect the management style of the Fund. The Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada. The Merrill Lynch U.S. High Yield Master II Index measures the performance of the broad high yield market. The Indexes are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 6 |
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Portfolio Reviews |
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HSBC Investor Intermediate Duration Fixed Income Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team |
The HSBC Investor Intermediate Duration Fixed Income Fund (the “Fund”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Fund utilizes a two tier structure, commonly known as “master-feeder,” in which the Fund invests all of its investable assets in the HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”). The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Market Commentary
The Fund returned -1.49% (without sales charge) for the Class A Shares and -1.26% for the Class I Shares during the six month period ended April 30, 2008. That compared to a total return of 4.22% and 1.75% for Lehman Brothers Intermediate U.S. Aggregate Index1 and the Lipper Intermediate Investment-Grade Debt Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
The Fund held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Fund’s emphasis on other sectors weighed on relative returns.
Security selection also reduced the Fund’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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7 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor Intermediate Duration Fixed Income Fund - As of April 30, 2008 |
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Fund Performance | | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | | Inception
Date | | Six
Months† | | 1
Year | | 5
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Intermediate Duration Fixed Income Fund Class A1 | | 2/7/01 | | -6.15 | | | -4.54 | | 2.38 | | 3.79 | | | 1.67 | | | 0.65 | |
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HSBC Investor Intermediate Duration Fixed Income Fund Class B2 | | 2/15/01 | | -5.68 | | | -4.29 | | 2.62 | | 3.83 | | | 2.42 | | | 1.40 | |
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HSBC Investor Intermediate Duration Fixed Income Fund Class C3 | | 2/13/01 | | -2.71 | | | -1.43 | | 2.63 | | 3.69 | | | 2.42 | | | 1.40 | |
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HSBC Investor Intermediate Duration Fixed Income Fund Class I | | 1/23/01 | | -1.26 | | | 0.51 | | 3.65 | | 4.83 | | | 1.42 | | | 0.40 | |
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Lehman Brothers Intermediate U.S. Aggregate Index4 | | — | | 4.22 | | | 7.07 | | 4.26 | | N/A | | | N/A | | | N/A | |
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Lipper Intermediate Investment-Grade Debt Funds Average4 | | — | | 1.75 | | | 3.39 | | 3.36 | | N/A | | | N/A | | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for Class A shares, Class B Shares, Class C Shares and Class I Shares of the Fund for the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 4.75%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund’s performance is measured against the Lehman Brothers Intermediate U.S. Aggregate Index, an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 8 |
|
Portfolio Reviews |
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HSBC Investor New York Tax-Free Bond Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team |
The HSBC Investor New York Tax-Free Bond Fund (the “Fund”) seeks to provide shareholders with income exempt from regular federal, New York State and New York City personal income taxes. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The Fund’s income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Regional funds may be subject to additional risks, since the issues they invest in are located in one geographical location.
Market Commentary
The Fund delivered a total return of 1.11% (without sales charge) for Class A Shares and 1.24% for Class I Shares for the six month period ended April 30, 2008. That compared to -0.37% and 0.15% for the Fund’s benchmarks, the Lehman Brothers New York Tax Exempt Index1 and the Lipper New York Municipal Debt Funds Average1, respectively.
Past performance is no guarantee of future results.
Portfolio Performance
The credit and liquidity crisis roiled the municipal bond markets during the period under review. Investors began to question whether bond insurers would have the financial resources to meet their obligations, and those concerns in turn hurt the performance of insured municipal bonds. The turmoil in the financial markets also caused certain financial institutions to sell large volumes of municipal bonds, driving up yields on New York tax-free securities during parts of the period.
Meanwhile, the yields on Treasury issues declined substantially, as the Federal Reserve Board (the “Fed”) reduced short-term interest-rates and investors fled to high-quality, liquid securities. As a result, New York municipal bonds paid unusually high yields relative to Treasury bonds with comparable maturities.
We maintained very high credit quality in the Fund’s portfolios. That strategy boosted the Fund’s performance relative to its benchmark, as the financial markets’ troubles caused investors to favor higher-quality issues. An overweight position in short-term bonds also benefited performance against the index, as the yield curve steepened during this period.
An overweight stake in insured paper reduced relative returns, as investors became concerned about the health of bond insurers. That said, we believe the generally high quality of the insured bonds in the Fund’s portfolio helped prevent some of the problems among bond insurers from having a larger impact on Fund return.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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9 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor New York Tax-Free Bond Fund - As of April 30, 2008 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual Total Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | | Inception
Date | | Six
Months† | | 1
Year | | 5
Year | | 10
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor New York Tax-Free Bond Fund Class A1 | | 5/1/95 | | | -3.68 | | | -2.54 | | | 1.88 | | | 3.65 | | | 4.47 | | | 0.88 | | | 0.88 | | |
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HSBC Investor New York Tax-Free Bond Fund Class B2 | | 1/6/98 | | | -3.23 | | | -2.43 | | | 2.10 | | | 3.69 | | | 3.55 | | | 1.63 | | | 1.63 | | |
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HSBC Investor New York Tax-Free Bond Fund Class C3 | | 11/4/98 | | | -0.26 | | | 0.52 | | | 2.09 | | | — | | | 3.07 | | | 1.63 | | | 1.63 | | |
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HSBC Investor New York Tax-Free Bond Fund Class I | | 7/1/96 | | | 1.24 | | | 2.53 | | | 3.12 | | | 4.42 | | | 4.89 | | | 0.63 | | | 0.63 | | |
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Lehman Brothers New York Tax Exempt Index4 | | — | | | -0.37 | | | 3.41 | | | 4.04 | | | 5.22 | | | N/A | | | N/A | | | N/A | | |
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Lipper New York Municipal Debt Funds Average4 | | — | | | 0.15 | | | 0.50 | | | 3.24 | | | 4.18 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
1 Reflects the maximum sales charge of 4.75%.
2 Reflects the contingent deferred sales charge, maximum of 4.00%.
3 Reflects the contingent deferred sales charge, maximum of 1.00%.
4 For additional information, please refer to the Glossary of Terms.
5 Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
† Aggregate total return.
The Fund’s performance is measured against the Lehman Brothers New York Tax Exempt Index, an unmanaged index composed of investment-grade New York tax-exempt securities, all having a $50 million minimum maturity value. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
| |
HSBC INVESTOR FAMILY OF FUNDS | 10 |
|
Portfolio Reviews |
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HSBC Investor Growth Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Philip J. Sanders, Senior Vice President/Portfolio Manager, CFA and |
Daniel P. Becker, Senior Vice President/Portfolio Manager, CFA |
Waddell & Reed Investment Management Company |
The HSBC Investor Growth Fund (the “Fund”) seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the subadviser believes have the potential to generate superior levels of long-term profitability and growth. The Fund utilizes a two tier structure, commonly known as a “master-feeder”, and invests all of its investable assets in the HSBC Investor Growth Portfolio (the “Portfolio”), which acts as the master fund. Effective May 12, 2008, Winslow Capital Management Inc, replaced Waddell & Reed Investment Management Company (Waddell & Reed) as subadviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
The Fund returned -8.65% (without sales charge) for the Class A Shares and -8.56% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.28% for the Russell 1000® Growth Index1 and a -10.15% return for the Lipper Large-Cap Growth Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
The subprime mortgage crisis evolved into a credit and liquidity crisis during this period. Those developments had a substantially adverse impact on stocks of all sizes, both the U.S. and foreign markets.
The Fund benefited from strong stock selection relative to its benchmark. Security selection added to relative returns in four of the eight economic sectors in which the Fund invested during the period. In particular, certain holdings in the materials and energy sectors boosted the Fund and helped to outperform its benchmark. Overweight positions in the health care and industrials sectors also helped relative performance.*
The Fund’s positions in the information technology, consumer discretionary and financial sectors detracted from relative performance over the period, largely due to stock selection. Growth-oriented technology stocks generally were weak during the period, likely due to a faltering economy and cutbacks in technology spending. Consumer discretionary holdings were hurt by investors’ concerns that high-energy costs, a plunging housing market and a weakening employment picture would undermine consumer spending. Financial stocks suffered due to investors’ worries about the possible extent of the subprime mortgage crisis.*
* Portfolio composition is subject to change.
1 For additional information, please refer to the Glossary of Terms.
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11 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor Growth Fund - As of April 30, 2008 |
| | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)6 | |
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As of April 30, 2008 | | Inception
Date | | Six
Months† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Growth Fund Class A1 | | 5/7/045 | | | -13.20 | | | 4.81 | | | 10.80 | | | 8.18 | | | 1.21 | | | 1.20 | | |
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HSBC Investor Growth Fund Class B2 | | 5/7/045 | | | -12.47 | | | 5.41 | | | 11.32 | | | 8.54 | | | 1.96 | | | 1.95 | | |
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HSBC Investor Growth Fund Class C3 | | 5/7/045 | | | -9.89 | | | 8.43 | | | 11.84 | | | 8.75 | | | 1.96 | | | 1.95 | | |
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HSBC Investor Growth Fund Class I | | 5/7/045 | | | -8.56 | | | 10.53 | | | 12.97 | | | 9.83 | | | 0.96 | | | 0.95 | | |
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Russell 1000® Growth Index4 | | — | | | -9.28 | | | -0.23 | | | 8.86 | | | N/A | | | N/A | | | N/A | | |
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Lipper Large-Cap Growth Funds Average4 | | — | | | -10.15 | | | 1.73 | | | 8.76 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
1 Reflects the maximum sales charge of 5.00%.
2 Reflects the contingent deferred sales charge maximum of 4.00%.
3 Reflects the contingent deferred sales charge maximum of 1.00%.
4 For additional information, please refer to the Glossary of Terms.
5 The HSBC Investor Growth Fund was initially offered for purchase effective May 7, 2004, however, no shareholder activity occurred until May
10, 2004.
6 Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
† Aggregate total return.
The Fund’s performance is measured against the Russell 1000® Growth Index, an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
| |
HSBC INVESTOR FAMILY OF FUNDS | 12 |
|
Portfolio Reviews |
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HSBC Investor Growth and Income Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Gary U. Rollé, CFA, Principal/Chief Investment Officer and |
Edward S. Han, Principal/Portfolio Manager and |
Transamerica Investment Management, LLC |
The HSBC Investor Growth and Income Fund (the “Fund”) seeks long-term growth of capital and current income by normally investing at least 65% of its assets in common stocks, preferred stocks, and convertible securities. The Fund may also invest in various types of fixed income securities and in money market instruments. The Fund employs Transamerica Investment Management, LLC as the subadviser to the Fund.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Market Commentary
The Fund returned -10.19% (without sales charge) for the Class A Shares and -10.14% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.63% return for the Standard & Poor’s 500 Index1 and a -10.27% return for the Lipper Large-Cap Core Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
During the period, U.S. stock markets struggled against the combined effects of a housing market correction, a credit and liquidity crisis, concerns about inflation and mounting signs of an economic slowdown. The financial services sector was particularly hard hit as companies with subprime-mortgage exposure took multibillion-dollar charges against earnings.
The Fund held an overweight position relative to its index in shares of materials and industrial firms. These companies performed well during the period, contributing to the majority of the Fund’s relative performance. An underweight position in health care and financial services stocks boosted relative performance as well, as these sectors performed poorly during the period.*
However, the Fund’s underweight position in the consumer staples and energy sectors detracted from performance against the index. Security selection in the consumer discretionary, consumer staples and energy sectors weighed on relative performance as well.*
* Portfolio composition is subject to change.
1 For additional information, please refer to the Glossary of Terms.
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13 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor Growth and Income Fund - As of April 30, 2008 |
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Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | | Inception
Date | | Six
Months† | | 1
Year | | 5
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Growth and Income Fund Class A1 | | 4/12/01 | | | -14.68 | | | 0.97 | | | 10.35 | | | 2.67 | | | 1.32 | | | 1.20 | | |
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HSBC Investor Growth and Income Fund Class B2 | | 4/5/01 | | | -14.19 | | | 1.44 | | | 10.63 | | | 3.18 | | | 2.07 | | | 1.95 | | |
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HSBC Investor Growth and Income Fund Class C3 | | 11/3/03 | | | -11.42 | | | 4.48 | | | — | | | 8.92 | | | 2.07 | | | 1.95 | | |
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HSBC Investor Growth and Income Fund Class I | | 4/2/01 | | | -10.14 | | | 6.53 | | | 11.72 | | | 4.13 | | | 1.07 | | | 0.95 | | |
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Standard & Poor’s 500 Index4 | | — | | | -9.63 | | | -4.68 | | | 10.61 | | | N/A | | | N/A | | | N/A | | |
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Lipper Large-Cap Core Funds Average4 | | — | | | -10.27 | | | -4.98 | | | 9.61 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
1 Reflects the maximum sales charge of 5.00%.
2 Reflects the contingent deferred sales charge, maximum of 4.00%.
3 Reflects the contingent deferred sales charge, maximum of 1.00%.
4 For additional information, please refer to the Glossary of Terms.
5 Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
† Aggregate total return.
The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”), an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
| |
HSBC INVESTOR FAMILY OF FUNDS | 14 |
HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund
(Class A Shares, B Shares, C Shares, and I Shares)
by Kevin F. Simms
Co-CIO International Value Equities and Director of Research – Global and International Value Equities
AllianceBernstein Investment Research and Management
The HSBC Investor International Equity Fund and the HSBC Investor Overseas Equity Fund (the “Funds”) seek to provide their shareholders with long-term growth of capital and future income by investing at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. The Portfolio may invest up to 20% of its assets in equity securities of companies in emerging markets. The Funds employ a two-tier fund structure, known as “master-feeder,” in which the Funds invest all of their investable assets in the HSBC Investor International Equity Portfolio (the “Portfolio”). The Portfolio employs AllianceBernstein L.P. (“AllianceBernstein”), a unit of AllianceBernstein Investment Research and Management as subadviser.
The Portfolio invests primarily in equity securities of companies organized and domiciled in developed nations outside the U.S., or for which the principal trading market is outside the U.S., including Europe, Canada, Australia and the Far East.
Investment Concerns
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
For the six month period ended April 30, 2008, the Class I Shares (previously the Advisor Class Shares) of the HSBC Investor International Equity Fund produced a -10.82% return and the Class A Shares of the HSBC Investor Overseas Equity Fund returned -11.23% (without sales charge). That compared to a total return of -8.99% and -10.12% for the Funds’ benchmarks, the MSCI EAFE Index1 and the Lipper International Large-Cap Core Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
Investor worries about slowing global economic growth and further repercussions from the subprime mortgage crisis dominated financial markets during the period, contributing to the Fund’s negative performance. In addition, record oil prices weighed on investor sentiment. Central banks adopted more accommodative monetary policies, lowering interest rates and pumping money into the banking system. Global stocks fell sharply near the end of the period, as a major U.S. investment-banking firm neared bankruptcy.
The Fund’s sector selection enhanced relative returns, due primarily to overweight positions in shares of industrial commodities and energy firms. Security selection in the technology and utilities sectors also added to relative returns.*
Security selection hurt the Fund’s relative performance. Selection of stocks in the capital equipment and industrial commodities sectors particularly weighed on returns relative to the index. Key detractors from performance included shares of a large U.K. mortgage lender, which declined amid investor perceptions of deteriorating conditions in the country’s housing market. Meanwhile, stocks of French capital equipment companies in the Fund’s portfolio were hurt by weakening consumer confidence and rising raw materials costs.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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15 | HSBC INVESTOR FAMILY OF FUNDS |
HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund - As of April 30, 2008
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Fund Performance | | | | | Average Annual Total Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | Inception
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HSBC Investor International Equity Fund Class I** | 1/9/95 | | -10.82 | | | -2.39 | | 20.93 | | 8.50 | | 10.50 | | | | 0.89 | | 0.89 | |
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HSBC Investor Overseas Equity Fund Class A1 | 8/26/96 | | -15.68 | | | -8.09 | | 18.98 | | 7.18 | | 8.86 | | | | 1.64 | | 1.64 | |
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HSBC Investor Overseas Equity Fund Class B2 | 1/6/98 | | -14.42 | | | -7.10 | | 19.28 | | 7.21 | | 8.56 | | | | 2.39 | | 2.39 | |
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HSBC Investor Overseas Equity Fund Class C3 | 11/4/98 | | -12.33 | | | -4.68 | | 19.29 | | — | | 8.65 | | | | 2.39 | | 2.39 | |
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MSCI EAFE Index4 | — | | -8.99 | | | -1.31 | | 20.92 | | 7.05 | | N/A | | | | N/A | | N/A | |
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Lipper International Large-Cap Core Funds Average4 | — | | -10.12 | | | 0.23 | | 18.53 | | 5.62 | | N/A | | | | N/A | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
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** | The Class I Shares represent HSBC Investor International Equity Fund and are part of the Advisor Funds Trust. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund’s performance is measured against the Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index, an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Funds’ performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 16 |
HSBC Investor Mid-Cap Fund
(Class A Shares, B Shares, C Shares and Class I Shares)
by Tony Y. Dong, CFA, Director, Mid-Cap Equity and Senior Portfolio Manager and
Brian S. Matuszak, CFA, Senior Equity Analyst and
Andy Y. Mui, CPA, Senior Equity Analyst
Munder Capital Management
The HSBC Investor Mid-Cap Fund (the “Fund”) seeks to achieve long-term growth of capital by investing at least 80% of its net assets in equity securities, i.e., common stocks, preferred stocks, convertible securities and rights and warrants of mid-capitalization companies. Mid-capitalization companies are those companies with market capitalization within the range of companies included in the S&P MidCap 400® Index, or within the range of companies included in the Russell Midcap Index. The Portfolio employs Munder Capital Management (“Munder”) as sub-investment adviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Mid capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Market Commentary
The Fund’s Class A Shares posted a return of -10.62% (without sales charge) and -10.48% for the Class I Shares (previously the Trust Class Shares) for the six month period ended April 30, 2008. That compares to -6.95% and -10.98% for the Fund’s benchmarks, the S&P MidCap 400 Index1 and the Lipper Mid-Cap Growth Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
Stock selection was the most prominent driver of strong absolute returns. The Fund produced double-digit gains in eight- of the ten-economic sectors represented in the index, while approximately 60% of the stocks in the portfolio generated double- or triple-digit gains. Mid-cap growth stocks performed especially well during this period. Investors moved up the market cap scale from more economically sensitive small-cap stocks in favor of shares of somewhat larger companies that could produce above-average earnings in a weakening economy.*
Stock selection was essential in helping the Fund outperform the benchmark index. Selection was beneficial across most sectors. For example, shares of a video-game retailer, a bank, an energy services and equipment provider and an engineering and construction firm all tripled in value during the six-month period. Likewise, there were three additional stocks in particular that tripled value for the period, an online advertising firm, a digital mapping company, a utility software enterprise, and a medical devices maker. A larger-than-benchmark position in industrials and an underweight stake in financials also boosted relative performance.*
Stock selection within the consumer staples sector represented the largest drag on relative performance, as two of the four consumer staples stocks in the portfolio posted negative returns. Losses of those two stocks reduced the Fund’s relative gain by only 0.74 percentage points.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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17 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Mid-Cap Fund - As of April 30, 2008 |
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Fund Performance | | | | | | | | Average Annual Total Return† (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | | Inception
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Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Mid-Cap Fund Class A1 | | | | 7/1/93 | | | | | -15.10 | | | | | -1.41 | | | | | 13.96 | | | | | 7.00 | | | | | 10.76 | | | | | 1.72 | | | | | 1.35 | | |
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HSBC Investor Mid-Cap Fund Class B2 | | | | 7/1/93 | | | | | -14.04 | | | | | -0.51 | | | | | 14.24 | | | | | 6.75 | | | | | 10.41 | | | | | 2.47 | | | | | 2.10 | | |
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HSBC Investor Mid-Cap Fund Class C3 | | | | 7/1/93 | | | | | -11.71 | | | | | 2.17 | | | | | 14.39 | | | | | 6.81 | | | | | 10.36 | | | | | 2.47 | | | | | 2.10 | | |
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HSBC Investor Mid-Cap Fund Class I | | | | 7/1/93 | | | | | -10.48 | | | | | 4.15 | | | | | 15.39 | | | | | 7.80 | | | | | 11.42 | | | | | 1.47 | | | | | 1.10 | | |
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S&P MidCap 400 Index4 | | | | — | | | | | -6.95 | | | | | -2.76 | | | | | 15.20 | | | | | 9.64 | | | | | N/A | | | | | N/A | | | | | N/A | | |
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Lipper Mid-Cap Growth Funds Average4 | | | | — | | | | | -10.98 | | | | | 0.59 | | | | | 13.78 | | | | | 5.59 | | | | | N/A | | | | | N/A | | | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
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† | For periods prior to July 1, 2000, the performance shown above includes the total return (adjusted for Fund expenses) generated by HSBC Investments (USA) Inc’s management of a pooled investment vehicle called a collective investment trust (“CIT”) with the same investment objective as the Fund. The assets from that CIT were converted into the HSBC Investor Mid-Cap Fund on July 1, 2000. The CIT was not registered with the Securities & Exchange Commission (SEC) and thus was not subject to certain investment restrictions that are imposed on the Fund. If the CIT had been registered with the SEC, its performance might have been adversely affected. Performance assumes reinvestment of dividends and distributions. |
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The Fund’s performance is measured against the S&P MidCap 400 Index, an unmanaged index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. |
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HSBC INVESTOR FAMILY OF FUNDS | 18 |
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Portfolio Reviews |
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HSBC Investor Opportunity Fund |
(Advisor, Class A Shares, B Shares and C Shares) |
by William A. Muggia |
President–Chief Investment Officer |
Westfield Capital Management |
The HSBC Investor Opportunity Fund (“the Fund”) seeks to provide its shareholders with long-term growth of capital by investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Funds employ a two-tier structure, commonly referred to as “master-feeder.” The Fund invest all of its investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management Company, LLC as sub-investment adviser.
The Portfolio invests primarily in common stocks of small and medium-sized companies that may have the potential to become major enterprises.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Market Commentary
For the six month period ended April 30, 2008, the Class A Shares of the Fund produced a -3.00% return (without sales charge) and the Class I Shares (previously the Advisor Class Shares) produced a -2.69% return. The Funds’ benchmarks, the Russell 2500™ Growth Index1 and the Lipper Mid-Cap Growth Funds Average1, returned -11.37% and -10.98%, respectively.
Past performance is no guarantee of future results.
Portfolio Performance
Myriad macroeconomic ills plagued U.S. investors during the period. A downturn in the U.S. economy, increasing inflationary pressures and continuing tumult in the banking system weighed on the financial markets. Despite an unprecedented campaign of fiscal and monetary measures designed to alleviate the economy’s various troubles, U.S. equities posted double-digit losses across multiple economic sectors. Energy was the only economic sector to end of the six-month period in the positive territory in both the small- and mid-cap universes.
The Fund’s outperformance of its benchmark was driven in large part by healthcare, energy, and technology shares. In particular, the performance of the Fund’s health care allocation benefited from positive stock selection within pharmaceuticals, health care equipment and biotechnology. Rising crude oil prices boosted energy stocks, helping them advance to record-high levels during the first months of 2008. An overweight position in the energy sector enhanced relative results, as did selection of certain domestic natural gas and equipment and services stocks. Selection among information technology stocks boosted relative performance, in part because the Fund’s valuation discipline helped it to avoid holding some of the stocks that posted the sector’s weakest returns.*
The biggest drag on relative performance came from financials. While we believe the portfolios limited exposure to this troubled sector should have been a source of good performance, weakness in certain positions hampered the aggregate results of the Fund’s financial-sector allocation. Industrials also restrained the Fund’s results. Declines among shares of trading companies and distributors particularly weighed on returns.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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19 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Opportunity Fund - As of April 30, 2008 |
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Fund Performance | | | | | | | | Average Annual Total Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2008 | | Inception
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Months† | | 1
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Year | | 10
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HSBC Investor Opportunity Fund Class A1 | | 9/23/96 | | | -7.83 | | | 7.34 | | | 17.13 | | | 8.24 | | | 10.46 | | | 1.77 | | | 1.65 | | |
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HSBC Investor Opportunity Fund Class B2 | | 1/6/98 | | | -5.78 | | | 9.29 | | | 17.43 | | | 8.32 | | | 9.89 | | | 2.52 | | | 2.40 | | |
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HSBC Investor Opportunity Fund Class C3 | | 11/4/98 | | | -3.95 | | | 11.46 | | | 17.46 | | | — | | | 10.59 | | | 2.52 | | | 2.40 | | |
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HSBC Investor Opportunity Fund Class I** | | 9/3/96 | | | -2.69 | | | 12.31 | | | 18.71 | | | 9.32 | | | 12.23 | | | 1.03 | | | 1.03 | | |
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Russell 2500™ Growth Index4 | | — | | | -11.37 | | | -3.56 | | | 14.88 | | | 4.79 | | | N/A | | | N/A | | | N/A | | |
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Lipper Mid-Cap Growth Funds Average4 | | — | | | -10.98 | | | 0.59 | | | 13.78 | | | 5.59 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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** | The Class I Shares of the HSBC Investor Opportunity Fund are part of the Advisor Funds Trust. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund’s performance is measured against the Russell 2500™ Growth Index, an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The performance for the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 20 |
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Portfolio Reviews |
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HSBC Investor Value Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Jon D. Bosse, CFA |
Chief Investment Officer |
NWQ Investment Management Co., LLC |
The HSBC Investor Value Fund (the “Fund”) seeks long-term growth of capital and income by investing primarily in U.S. and foreign companies with large and medium capitalizations that possess hidden opportunities underpriced by the market. The Fund utilizes a two tier structure, commonly known as a “master-feeder” and invests all of its investable assets in the HSBC Investor Value Portfolio (the “Portfolio”), which acts as the master fund. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as subadviser.
Investment Concerns
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the Portfolio changes.
Market Commentary
The Fund returned -15.17% (without sales charge) for the Class A Shares and -10.60% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.83% return for the Russell 1000® Value Index1 and a -11.08% return for the Lipper Multi-Cap Value Funds Average1.
Past performance is no guarantee of future results.
Portfolio Performance
Equity markets declined, both in the United States and worldwide, due to concerns about the outlook for the global economy and the unprecedented deterioration in the credit markets. Value stocks generally outperformed growth stocks, while U.S. equity markets demonstrated tremendous volatility. Stock prices appreciated materially near the end of the period—particularly among financial stocks—following the Federal Reserve’s aggressive actions to lower key interest rates.
The Fund’s absolute return was enhanced by strong performance from energy shares. Energy stocks performed well due to appreciation in oil prices and increasing production profiles. Select stocks in the steel and transportation industries also contributed to the Fund’s absolute return. The Fund’s exposure to the financial sector negatively influenced performance, as uncertainty about the extent of the problems related to the subprime mortgage crisis adversely affected stock prices within the sector.*
Although the Fund’s underweight position in the lagging financial sector helped performance relative to the index, selection among financial stocks caused the Fund’s allocation to that sector to weigh on relative returns. All but one of the Fund’s financial holdings declined in value during the period. An overweight position in the technology sector also hurt performance against the index, as technology shares were weighed down by concerns that continued economic weakness could lead to reduced corporate and consumer technology spending.*
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* | Portfolio composition is subject to change. |
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1 | For additional information, please refer to the Glossary of Terms. |
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21 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
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HSBC Investor Value Fund - As of April 30, 2008 |
| | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)6 | |
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As of April 30, 2008 | | Inception
Date | | Six
Months† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Value Fund Class A1 | | | 5/7/045 | | -15.17 | | | -14.54 | | | 7.05 | | | 8.63 | | | 1.24 | | | 1.20 | | |
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HSBC Investor Value Fund Class B2 | | | 5/7/045 | | -14.28 | | | -13.96 | | | 7.52 | | | 9.02 | | | 1.99 | | | 1.95 | | |
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HSBC Investor Value Fund Class C3 | | | 5/7/045 | | -11.88 | | | -11.54 | | | 8.06 | | | 9.20 | | | 1.99 | | | 1.95 | | |
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HSBC Investor Value Fund Class I | | | 5/7/045 | | -10.60 | | | -9.80 | | | 9.13 | | | 10.32 | | | 0.99 | | | 0.95 | | |
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Russell 1000® Value Index4 | | | — | | -9.83 | | | -8.97 | | | 8.36 | | | N/A | | | N/A | | | N/A | | |
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Lipper Multi-Cap Value Funds Average4 | | | — | | -11.08 | | | -10.13 | | | 7.22 | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
| |
1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the contingent deferred sales charge, maximum of 1.00%. |
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4 | For additional information, please refer to the Glossary of Terms. |
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5 | The HSBC Investor Value Fund was initially offered for purchase effective May 7, 2004, however, no shareholder activity occurred until May 10, 2004. |
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6 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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† | Aggregate total return. |
The Fund’s performance is measured against the Russell 1000® Value Index, an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.
| |
HSBC INVESTOR FAMILY OF FUNDS | 22 |
|
Portfolio Reviews |
|
Portfolio Composition* |
April 30, 2008 |
(Unaudited) |
| | | | |
HSBC Investor Core Plus Fixed Income Portfolio | | | | |
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|
|
Investment Allocation | | Percentage of Investments at Value | |
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|
Corporate Bonds | | 27.6 | % | |
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| |
Mortgage Backed Securities | | 23.5 | % | |
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U.S. Treasury Securities | | 13.9 | % | |
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Commercial Mortgage Backed Securities | | 10.3 | % | |
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Cash and Equivalents | | 9.4 | % | |
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Asset Backed Securities | | 7.8 | % | |
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Collateralized Mortgage Obligations | | 5.0 | % | |
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Foreign Bond | | 2.5 | % | |
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Total | | 100.0 | % | |
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|
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| | | | |
HSBC Investor High Yield Fixed Income Portfolio | | | | |
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|
Investment Allocation | | Percentage of Investments at Value | |
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Corporate Bonds | | 98.0 | % | |
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Cash and Equivalents | | 2.0 | % | |
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Common Stock | | 0.0 | % | |
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Total | | 100.0 | % | |
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| |
| | | | |
HSBC Investor Intermediate Duration Fixed Income Portfolio | | | | |
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|
|
Investment Allocation | | Percentage of Investments at Value | |
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Mortgage Backed Securities | | 27.0 | % | |
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Corporate Bond | | 26.5 | % | |
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U.S. Treasury Securities | | 11.4 | % | |
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Commercial Mortgage Backed Securities | | 10.0 | % | |
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Asset Backed Securities | | 7.5 | % | |
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Cash and Equivalents | | 7.5 | % | |
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Collateralized Mortgage Obligations | | 6.3 | % | |
|
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Foreign Bond | | 3.8 | % | |
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|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC Investor New York Tax-Free Bond Fund | | | | |
|
|
|
|
|
Investment Allocation | | Percentage of Investments at Value | |
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|
Municipal Bonds | | 95.4 | % | |
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|
Cash and Equivalents | | 4.6 | % | |
|
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|
|
Total | | 100.0 | % | |
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| | | | |
HSBC Investor Growth Portfolio | | | | |
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|
|
Investment Allocation | | Percentage of Investments at Value | |
|
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|
|
Information Technology | | 18.7 | % | |
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Health Care | | 18.0 | % | |
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Industrials | | 20.2 | % | |
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Consumer Staples | | 11.2 | % | |
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|
Consumer Discretionary | | 4.9 | % | |
|
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|
Financials | | 7.7 | % | |
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|
Energy | | 9.5 | % | |
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|
Materials | | 4.4 | % | |
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|
Cash and Equivalents | | 5.4 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC Investor Growth and Income Fund | | | | |
|
|
|
|
|
Investment Allocation | | Percentage of Investments at Value | |
|
|
|
|
|
Information Technology | | 24.4 | % | |
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Industrials | | 24.1 | % | |
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|
Consumer Discretionary | | 16.9 | % | |
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Financials | | 13.7 | % | |
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Materials | | 6.5 | % | |
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Energy | | 1.1 | % | |
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Consumer Staples | | 3.6 | % | |
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Telecommunications | | 3.3 | % | |
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|
Health Care | | 3.8 | % | |
|
|
|
|
|
Cash and Equivalents | | 2.6 | % | |
|
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|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC International Equity Portfolio | | | | |
|
|
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|
|
Investment Allocation | | Percentage of Investments at Value | |
|
|
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|
Europe | | 65.2 | % | |
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|
Japan | | 21.8 | % | |
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Australia & Far East | | 6.1 | % | |
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|
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|
Canada | | 4.8 | % | |
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|
Other | | 1.5 | % | |
|
|
|
|
|
Cash and Equivalents | | 0.6 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
* Portfolio composition is subject to change.
| |
23 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
Portfolio Composition*
April 30, 2008
(Unaudited) |
| | | |
HSBC Investor Mid-Cap Fund |
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
|
Industrials | | 16.3 | % |
|
|
|
|
Information Technology | | 9.8 | % |
|
|
|
|
Consumer Discretionary | | 12.6 | % |
|
|
|
|
Financials | | 15.7 | % |
|
|
|
|
Health Care | | 10.8 | % |
|
|
|
|
Materials | | 9.1 | % |
|
|
|
|
Energy | | 8.5 | % |
|
|
|
|
Utilities | | 7.6 | % |
|
|
|
|
Consumer Staples | | 3.3 | % |
|
|
|
|
Business Services | | 3.9 | % |
|
|
|
|
Cash & Equivalents | | 1.3 | % |
|
|
|
|
Telecommunications | | 1.1 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Opportunity Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
|
Health Care | | 23.4 | % |
|
|
|
|
Information Technology | | 17.2 | % |
|
|
|
|
Industrials | | 15.3 | % |
|
|
|
|
Energy | | 15.2 | % |
|
|
|
|
Consumer Discretionary | | 12.6 | % |
|
|
|
|
Business Services | | 7.4 | % |
|
|
|
|
Cash and Equivalents | | 4.6 | % |
|
|
|
|
Financials | | 2.2 | % |
|
|
|
|
Consumer Staples | | 2.1 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Value Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
|
Financials | | 19.6 | % |
|
|
|
|
Energy | | 14.1 | % |
|
|
|
|
Industrials | | 11.3 | % |
|
|
|
|
Information Technology | | 10.4 | % |
|
|
|
|
Consumer Discretionary | | 9.0 | % |
|
|
|
|
Consumer Staples | | 7.1 | % |
|
|
|
|
Materials | | 6.8 | % |
|
|
|
|
Health Care | | 5.4 | % |
|
|
|
|
Cash | | 5.3 | % |
|
|
|
|
Telecommunication Services | | 4.8 | % |
|
|
|
|
Miscellaneous | | 3.1 | % |
|
|
|
|
Transportation | | 3.1 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
* Portfolio composition is subject to change.
| |
HSBC INVESTOR FAMILY OF FUNDS | 24 |
|
HSBC INVESTOR NEW YORK TAX - FREE BOND FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
Variable Rate Demand Note – 1.7% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York – 1.7% | | | | | | | |
Long Island Power Authority Electrical Systems
Revenue, Sub Series 3B, 2.29%, 5/1/33,
(LOC Westdeutsche Landesbank) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | | |
TOTAL VARIABLE RATE DEMAND NOTES (COST $1,000,000) | | | | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | | |
Municipal Bonds – 92.7% | | | | | | | |
|
|
|
|
|
|
|
|
New York – 81.3% | | | | | | | |
Buffalo, New York Fiscal Stability Authority
Sales Tax & State Aid Revenue, 5.25%,
8/15/13, (MBIA Insured) | | | 500,000 | | | 551,430 | |
Long Island Power Authority Electrical
Systems Revenue, 5.00%, 12/1/22,
Callable 12/1/16 @ 100 | | | 500,000 | | | 515,465 | |
Metropolitan Transportation Authority Revenue | | | | | | | |
5.25%, 11/15/11 | | | 1,000,000 | | | 1,068,770 | |
5.75%, 7/1/13, Escrowed to Maturity | | | 285,000 | | | 305,617 | |
5.50%, 1/1/19, (MBIA Insured), Callable
7/1/12 @ 100 | | | 480,000 | | | 510,974 | |
5.50%, 11/15/19, (FGIC Insured) | | | 1,000,000 | | | 1,114,330 | |
5.00%, 11/15/32, (FSA Insured), Callable
11/15/12 @ 100 | | | 1,625,000 | | | 1,648,010 | |
Monroe County Airport Authority Revenue | | | | | | | |
5.63%, 1/1/10, AMT, (MBIA Insured) | | | 1,240,000 | | | 1,277,820 | |
5.75%, 1/1/14, AMT, (MBIA Insured) | | | 750,000 | | | 799,875 | |
New York City GO, 5.25%, 8/1/11 | | | | | | | |
5.25%, 8/1/11 | | | 1,000,000 | | | 1,068,610 | |
5.00%, 8/1/14 | | | 200,000 | | | 215,740 | |
5.00%, 8/1/15 | | | 325,000 | | | 350,636 | |
5.00%, 8/1/17 | | | 500,000 | | | 537,160 | |
Series C, 5.00%, 8/1/16, (MBIA-IBC Insured),
Callable 8/1/15 @ 100 | | | 500,000 | | | 543,145 | |
New York City Housing Development Corp. | | | | | | | |
Revenue, 5.60%, 11/1/19, AMT, Callable
11/1/09 @ 101 | | | 100,000 | | | 101,995 | |
New York City IDA Civic Facility Revenue,
USTA National Tennis Center, 5.00%,
11/15/19, (FSA Insured), Callable
5/1/13 @ 100 | | | 1,000,000 | | | 1,050,360 | |
New York City IDA Revenue, Queens
Baseball Stadium, 5.00%, 1/1/18, (AMBAC
Insured), Callable 1/1/17 @ 100 | | | 550,000 | | | 582,076 | |
New York City IDA Special Facility Revenue,
Terminal One Group Association, 5.00%,
1/1/09, AMT | | | 1,000,000 | | | 1,011,190 | |
New York City Municipal Water Finance
Authority | | | | | | | |
5.00%, 6/15/34, Callable 6/15/13 @ 100 | | | 1,250,000 | | | 1,265,700 | |
5.00%, 6/15/36, Callable 12/15/14 @ 100 | | | 1,000,000 | | | 1,014,580 | |
New York City Transitional Finance Authority
Building Aid Revenue | | | | | | | |
5.00%, 7/15/18, (FGIC Insured), Callable
1/15/17 @ 100 | | | 550,000 | | | 593,390 | |
5.00%, 7/15/36, (FGIC Insured), Callable
1/15/17 @ 100 | | | 1,000,000 | | | 1,015,450 | |
|
Municipal Bonds, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York City Transitional Finance Authority
Revenue | | | | | | | |
5.25%, 5/1/17, Callable 5/1/11 @ 100 | | | 400,000 | | | 423,348 | |
5.25%, 2/1/29, Callable 2/1/11 @ 100 | | | 1,540,000 | | | 1,611,333 | |
New York State Dormitory Authority Revenue,
Cooper Union, 6.00%, 7/1/19, (MBIA
Insured), Callable 7/1/09 @ 101 | | | 350,000 | | | 368,883 | |
New York State Dormitory Authority Revenue,
Department of Health, 5.25%, 7/1/16,
Callable 7/1/14 @ 100 | | | 500,000 | | | 542,950 | |
New York State Dormitory Authority Revenue,
Fashion Institute, 5.25%, 7/1/22,
(FGIC Insured) | | | 1,250,000 | | | 1,307,262 | |
New York State Dormitory Authority Revenue,
Master Boces PG, 5.25%, 8/15/19,
(FSA Insured), Callable 8/15/12 @ 100 | | | 1,000,000 | | | 1,059,710 | |
New York State Dormitory Authority Revenue,
Mental Health | | | | | | | |
6.50%, 8/15/11 | | | 225,000 | | | 250,205 | |
5.00%, 2/15/15, (FGIC Insured) | | | 1,245,000 | | | 1,332,399 | |
New York State Dormitory Authority Revenue,
New York Presbyterian Hospital, 5.50%,
8/1/10, (AMBAC Insured) | | | 750,000 | | | 793,507 | |
New York State Dormitory Authority Revenue,
New York University, 5.50%, 7/1/18,
(AMBAC Insured) | | | 500,000 | | | 569,305 | |
New York State Dormitory Authority Revenue,
NYSARC, Inc., 5.25%, 7/1/18, (FSA Insured),
Callable 7/1/12 @ 101 | | | 1,460,000 | | | 1,557,397 | |
New York State Dormitory Authority Revenue,
Rockefeller University, 5.25%, 7/1/13,
Callable 7/1/08 @ 101 | | | 500,000 | | | 507,210 | |
New York State Dormitory Authority Revenue,
Sloan Kettering Institute, 5.50%, 7/1/23,
(MBIA Insured) | | | 1,300,000 | | | 1,428,167 | |
New York State Dormitory Authority Revenue,
St. Johns University, 5.00%, 7/1/24,
(MBIA Insured), Callable 7/1/17 @ 100 | | | 1,000,000 | | | 1,031,850 | |
New York State Dormitory Authority Revenue,
State Personal Income Tax Revenue, 5.00%,
3/15/23, Callable 3/15/15 @ 100 | | | 1,000,000 | | | 1,044,260 | |
New York State Dormitory Authority Revenue,
University of Rochester, 5.00%,
7/1/22, Callable 1/1/17 @100 | | | 500,000 | | | 512,695 | |
New York State Environmental Facilities Corp. | | | | | | | |
5.70%, 1/15/14, Callable 7/15/09 @ 101 | | | 415,000 | | | 433,621 | |
5.70%, 1/15/14 | | | 15,000 | | | 15,778 | |
New York State Mortgage Agency Revenue,
5.60%, 10/1/14, AMT,
Callable 5/5/08 @ 102 | | | 1,000,000 | | | 1,014,080 | |
New York State Municipal Bond Bank Revenue,
5.50%, 12/1/12 | | | 850,000 | | | 932,178 | |
New York State Thruway Authority Revenue,
Personal Income Tax Revenue | | | | | | | |
5.00%, 3/15/19, (MBIA Insured),
Callable 3/15/13 @ 100 | | | 1,400,000 | | | 1,456,350 | |
5.00%, 3/15/21, (MBIA Insured),
Callable 3/15/13 @ 100 | | | 500,000 | | | 514,780 | |
| | |
25 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR NEW YORK TAX - FREE BOND FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Municipal Bonds, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York State Thruway Authority Revenue,
Second General Highway & Bridge, | | | | | | | |
5.00%, 4/1/22, (MBIA Insured),
Callable 4/1/14 @ 100 | | | 1,000,000 | | | 1,043,890 | |
New York State Thruway Authority Revenue,
Service Contract Revenue, 5.50%, 4/1/11 | | | 1,000,000 | | | 1,077,200 | |
New York State Urban Development Corp.
Revenue | | | | | | | |
6.50%, 1/1/09, (MBIA Insured) | | | 500,000 | | | 515,585 | |
5.75%, 4/1/12 | | | 500,000 | | | 548,050 | |
5.00%, 3/15/21, (FSA Insured),
Callable 3/15/15 @100 | | | 1,000,000 | | | 1,052,410 | |
5.13%, 1/1/22, Callable 7/1/14 @ 100 | | | 885,000 | | | 918,798 | |
5.13%, 1/1/25, Prerefunded 1/1/11 @ 100 | | | 175,000 | | | 186,505 | |
Onondaga County, Water Authority Revenue | | | | | | | |
5.00%, 9/15/14, (FSA Insured),
Callable 9/15/10 @ 101 | | | 300,000 | | | 317,157 | |
5.00%, 9/15/15, (FSA Insured),
Callable 9/15/10 @ 101 | | | 665,000 | | | 701,455 | |
Port Authority of New York & New Jersey
Revenue | | | | | | | |
5.00%, 9/1/27, Callable 9/1/13 @ 100 | | | 795,000 | | | 816,552 | |
5.38%, 3/1/28 | | | 1,100,000 | | | 1,185,965 | |
Port Authority of New York & New Jersey | | | | | | | |
Special Obligation Revenue, 5.75%, 12/1/22,
AMT, (MBIA Insured),
Callable 5/19/08 @ 102 | | | 500,000 | | | 501,470 | |
Suffolk County, New York GO | | | | | | | |
5.25%, 5/1/12, (FSA Insured) | | | 515,000 | | | 560,629 | |
5.25%, 5/1/15, (FSA Insured) | | | 100,000 | | | 111,905 | |
Syracuse Industrial Development Agency
Revenue, 5.00%, 1/1/36, AMT,
(XLCA Insured), Callable 1/1/17 @ 100 | | | 1,000,000 | | | 927,940 | |
Tobacco Settlement Financing Corp.,
5.50%, 6/1/21, Callable 6/1/13 @ 100 | | | 1,000,000 | | | 1,043,770 | |
Webster, Central School District GO,
5.00%, 6/15/14, (FSA Insured) | | | 500,000 | | | 548,605 | |
Yonkers, New York, 5.00%, 12/1/14,
(MBIA Insured) | | | 750,000 | | | 814,950 | |
| | | | |
|
| |
| | | | | | 48,722,427 | |
| | | | |
|
| |
Puerto Rico – 11.4% | | | | | | | |
Puerto Rico Commonwealth, Highway &
Transportation Authority Grant Antic
Revenue | | | | | | | |
5.00%, 9/15/17, (MBIA Insured),
Callable 3/15/14 @ 100 | | | 1,000,000 | | | 1,050,890 | |
5.00%, 7/1/35, Prerefunded 7/1/15 @ 100 | | | 1,340,000 | | | 1,480,727 | |
Puerto Rico Electric Power Authority Power
Revenue, 5.25%, 7/1/22, (MBIA Insured) | | | 1,000,000 | | | 1,061,690 | |
Puerto Rico Municipal Finance Agency
Revenue, 5.00%, 8/1/12 | | | 995,000 | | | 1,017,815 | |
Puerto Rico Public Buildings Authority
Revenue | | | | | | | |
5.25%, 7/1/33, (Commonwealth Guaranteed),
Prerefunded 7/1/14 @ 100 | | | 10,000 | | | 10,940 | |
5.25%, 7/1/33, (Commonwealth Guaranteed),
Callable 7/1/14 @ 100 | | | 690,000 | | | 667,499 | |
|
Municipal Bonds, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Puerto Rico, continued | | | | | | | |
Puerto Rico Public Finance Corp. Revenue | | | | | | | |
5.25%, 8/1/29, (MBIA Insured),
Callable 7/1/10 @ 101 | | | 1,000,000 | | | 1,024,900 | |
5.38%, 6/1/18, (AMBAC Insured) | | | 500,000 | | | 534,300 | |
| | | | |
|
| |
| | | | | | 6,848,761 | |
| | | | |
|
| |
TOTAL MUNICIPAL BONDS
(COST $54,441,861) | | | | | | 55,571,188 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies – 4.5% | | | | | | | |
|
|
|
|
|
|
|
|
BlackRock Liquidity New York Money Fund
Portfolio Institutional Shares, 2.27% (b) | | | 2,711,423 | | | 2,711,423 | |
Northern Institutional Diversified Assets
Portfolio, Shares class, 2.33% (b) | | | 15,210 | | | 15,210 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $2,726,633) | | | | | | 2,726,633 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $58,168,494) — 98.9% | | | | | | 59,297,821 | |
| | | | |
|
| |
Percentages indicated are based on net assets of $59,939,627.
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
AMBAC | — American Municipal Bond Assurance Corp. |
AMT | — Interest on security is subject to federal alternative minimum tax |
FGIC | — Financial Guaranty Insurance Co. |
FSA | — Financial Security Assurance |
GO | — General Obligation |
IDA | — Industrial Development Agency |
LOC | ��� Letter of Credit |
MBIA | — Municipal Bond Insurance Association |
XLCA | — XL Capital Assurance |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 26 |
|
HSBC INVESTOR GROWTH AND INCOME FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Advertising – 0.6% | | | | | | | |
Lamar Advertising Co. (a) | | | 6,400 | | | 253,056 | |
| | | | |
|
| |
| | | | | | | |
Aerospace & Defense – 4.8% | | | | | | | |
The Boeing Co. | | | 11,500 | | | 975,890 | |
United Technologies Corp. | | | 12,900 | | | 934,863 | |
| | | | |
|
| |
| | | | | | 1,910,753 | |
| | | | |
|
| |
| | | | | | | |
Automotive & Transport – 11.4% | | | | | | | |
BorgWarner, Inc. | | | 30,000 | | | 1,474,500 | |
DaimlerChrysler AG | | | 9,600 | | | 743,232 | |
Johnson Controls, Inc. | | | 32,000 | | | 1,128,320 | |
PACCAR, Inc. | | | 25,000 | | | 1,183,000 | |
| | | | |
|
| |
| | | | | | 4,529,052 | |
| | | | |
|
| |
| | | | | | | |
Chemicals – 6.5% | | | | | | | |
Ecolab, Inc. | | | 19,400 | | | 891,624 | |
Monsanto Co. | | | 7,800 | | | 889,356 | |
Sigma-Aldrich Corp. | | | 14,000 | | | 798,280 | |
| | | | |
|
| |
| | | | | | 2,579,260 | |
| | | | |
|
| |
| | | | | | | |
Computer Software – 7.4% | | | | | | | |
Adobe Systems, Inc. (a) | | | 15,500 | | | 577,995 | |
Electronic Arts, Inc. (a) | | | 19,400 | | | 998,518 | |
Intuit, Inc. (a) | | | 14,200 | | | 382,974 | |
Salesforce.com, Inc. (a) | | | 14,499 | | | 967,518 | |
| | | | |
|
| |
| | | | | | 2,927,005 | |
| | | | |
|
| |
| | | | | | | |
Computers – 8.9% | | | | | | | |
Apple, Inc. (a) | | | 13,000 | | | 2,261,350 | |
Hewlett-Packard Co. | | | 14,200 | | | 658,170 | |
Intel Corp. | | | 27,400 | | | 609,924 | |
| | | | |
|
| |
| | | | | | 3,529,444 | |
| | | | |
|
| |
| | | | | | | |
Consumer Products – 4.3% | | | | | | | |
Nike, Inc., Class B | | | 19,500 | | | 1,302,600 | |
PepsiCo, Inc. | | | 5,800 | | | 397,474 | |
| | | | |
|
| |
| | | | | | 1,700,074 | |
| | | | |
|
| |
| | | | | | | |
Diversified Manufacturing Operations – 17.5% | | | | | | | |
Caterpillar, Inc. | | | 12,000 | | | 982,560 | |
Donaldson Co., Inc. | | | 15,500 | | | 674,870 | |
Jacobs Engineering Group, Inc. (a) | | | 18,500 | | | 1,597,105 | |
Kennametal, Inc. | | | 27,800 | | | 966,606 | |
Plum Creek Timber Co., Inc. | | | 18,400 | | | 751,456 | |
Tyco Electronics Ltd. | | | 26,000 | | | 972,660 | |
W. W. Grainger, Inc. | | | 11,600 | | | 1,005,836 | |
| | | | |
|
| |
| | | | | | 6,951,093 | |
| | | | |
|
| |
| | | | | | | |
Electronic Components & Semiconductors – 1.1% | | | | | | | |
NVIDIA Corp. (a) | | | 22,500 | | | 462,375 | |
| | | | |
|
| |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Financial Services – 11.8% | | | | | | | |
American Express Co. | | | 7,800 | | | 374,556 | |
Ameriprise Financial, Inc. | | | 7,000 | | | 332,430 | |
BlackRock, Inc. | | | 3,600 | | | 726,444 | |
CME Group, Inc. | | | 2,300 | | | 1,052,135 | |
JP Morgan Chase & Co. | | | 8,900 | | | 424,085 | |
T. Rowe Price Group, Inc. | | | 18,500 | | | 1,083,360 | |
The Charles Schwab Corp. | | | 31,800 | | | 686,880 | |
| | | | |
|
| |
| | | | | | 4,679,890 | |
| | | | |
|
| |
| | | | | | | |
Health Care – 3.8% | | | | | | | |
Becton, Dickinson and Co. | | | 6,000 | | | 536,400 | |
Hologic, Inc. (a) | | | 18,000 | | | 525,420 | |
Zimmer Holdings, Inc. (a) | | | 6,000 | | | 444,960 | |
| | | | |
|
| |
| | | | | | 1,506,780 | |
| | | | |
|
| |
| | | | | | | |
Internet Related – 3.6% | | | | | | | |
Google, Inc., Class A (a) | | | 2,500 | | | 1,435,725 | |
| | | | |
|
| |
| | | | | | | |
Media – 2.4% | | | | | | | |
The Walt Disney Co. | | | 30,000 | | | 972,900 | |
| | | | |
|
| |
| | | | | | | |
Oil & Gas – 1.1% | | | | | | | |
Schlumberger Ltd. | | | 4,300 | | | 432,365 | |
| | | | |
|
| |
| | | | | | | |
Retail – 4.8% | | | | | | | |
Amazon.com, Inc. (a) | | | 5,000 | | | 393,150 | |
Costco Wholesale Corp. | | | 9,000 | | | 641,250 | |
Nordstrom, Inc. | | | 13,000 | | | 458,380 | |
Walgreen Co. | | | 11,500 | | | 400,775 | |
| | | | |
|
| |
| | | | | | 1,893,555 | |
| | | | |
|
| |
| | | | | | | |
Telecommunications – 4.3% | | | | | | | |
QUALCOMM, Inc. | | | 9,000 | | | 388,710 | |
Verizon Communications, Inc. | | | 34,000 | | | 1,308,320 | |
| | | | |
|
| |
| | | | | | 1,697,030 | |
| | | | |
|
| |
| | | | | | | |
Transportation – 3.1% | | | | | | | |
Burlington Northern Santa Fe Corp. | | | 6,500 | | | 666,575 | |
Expeditors International of Washington, Inc. | | | 12,500 | | | 582,375 | |
| | | | |
|
| |
| | | | | | 1,248,950 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $29,928,431) | | | | | | 38,709,307 | |
| | | | |
|
| |
| | | | | | | |
Investment Company – 2.6% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Diversified | | | | | | | |
Assets Portfolio, Shares class,
2.33% (b) | | | 1,013,743 | | | 1,013,743 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $1,013,743) | | | | | | 1,013,743 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $30,942,174) — 100.0% | | | | | | 39,723,050 | |
| | | | |
|
| |
| |
|
Percentages indicated are based on net assets of $39,735,962. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| | |
27 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR MID - CAP FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Common Stocks – 97.7% | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Advertising – 0.5% | | | | | | | |
Lamar Advertising Co. (a) | | | 3,625 | | | 143,333 | |
| | | | |
|
| |
Aerospace & Defense – 2.3% | | | | | | | |
L-3 Communications Holdings, Inc. | | | 5,500 | | | 612,975 | |
| | | | |
|
| |
Agricultural Chemicals – 2.9% | | | | | | | |
Compass Minerals International, Inc. | | | 6,150 | | | 387,450 | |
Syngenta AG ADR | | | 6,375 | | | 377,272 | |
| | | | |
|
| |
| | | | | | 764,722 | |
| | | | |
|
| |
Banking – 1.3% | | | | | | | |
HDFC Bank Ltd. ADR | | | 3,125 | | | 352,500 | |
| | | | |
|
| |
Biotechnology – 1.9% | | | | | | | |
BioMarin Pharmaceuticals, Inc. (a) | | | 13,800 | | | 503,148 | |
| | | | |
|
| |
Business Services – 1.1% | | | | | | | |
Fidelity National Information Services, Inc. | | | 6,300 | | | 227,178 | |
Morningstar, Inc. (a) | | | 1,050 | | | 60,879 | |
| | | | |
|
| |
| | | | | | 288,057 | |
| | | | |
|
| |
Chemicals – 5.3% | | | | | | | |
Airgas, Inc. | | | 9,400 | | | 452,422 | |
FMC Corp. | | | 9,450 | | | 593,271 | |
Praxair, Inc. | | | 4,125 | | | 376,654 | |
| | | | |
|
| |
| | | | | | 1,422,347 | |
| | | | |
|
| |
Commercial Services – 2.6% | | | | | | | |
IHS, Inc., Class A (a) | | | 5,850 | | | 386,393 | |
Ritchie Brothers Auctioneers, Inc. ADR | | | 12,675 | | | 316,241 | |
| | | | |
|
| |
| | | | | | 702,634 | |
| | | | |
|
| |
Communications – 1.7% | | | | | | | |
CommScope, Inc. (a) | | | 9,650 | | | 458,857 | |
| | | | |
|
| |
Computer Services – 2.9% | | | | | | | |
Cognizant Technology Solutions Corp. (a) | | | 9,025 | | | 291,056 | |
FactSet Research Systems, Inc. | | | 2,600 | | | 156,078 | |
Wright Express Corp. (a) | | | 9,825 | | | 324,225 | |
| | | | |
|
| |
| | | | | | 771,359 | |
| | | | |
|
| |
Computer Software – 3.1% | | | | | | | |
Akamai Technologies, Inc. (a) | | | 5,150 | | | 184,216 | |
Blackbaud, Inc. | | | 12,750 | | | 299,497 | |
MICROS Systems, Inc. (a) | | | 7,600 | | | 270,940 | |
VASCO Data Security International, Inc. (a) | | | 5,125 | | | 51,711 | |
VeriFone Holdings, Inc. (a) | | | 2,200 | | | 24,618 | |
| | | | |
|
| |
| | | | | | 830,982 | |
| | | | |
|
| |
Computers – 0.9% | | | | | | | |
Logitech International S.A. (a) | | | 8,400 | | | 253,428 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Construction & Engineering – 1.5% | | | | | |
McDermott International, Inc. (a) | | | 7,575 | | | 405,869 | |
| | | | |
|
| |
Consumer Products – 2.9% | | | | | | | |
Church & Dwight Co., Inc. | | | 3,800 | | | 215,916 | |
Gildan Activewear, Inc. (a) | | | 6,825 | | | 175,607 | |
Tempur-Pedic International, Inc. | | | 9,950 | | | 110,545 | |
Tupperware Brands Corp. | | | 6,800 | | | 267,920 | |
| | | | |
|
| |
| | | | | | 769,988 | |
| | | | |
|
| |
Correctional Institutions – 1.4% | | | | | | | |
Corrections Corp. of America (a) | | | 14,875 | | | 379,313 | |
| | | | |
|
| |
Distribution & Wholesale – 1.8% | | | | | | | |
LKQ Corp. (a) | | | 21,875 | | | 476,000 | |
| | | | |
|
| |
Education – 1.0% | | | | | | | |
New Oriental Education & Technology
Group, Inc. ADR (a) | | | 3,450 | | | 258,957 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 2.3% | | | | | | | |
Itron, Inc. (a) | | | 4,200 | | | 390,936 | |
Microchip Technology, Inc. | | | 6,400 | | | 235,200 | |
| | | | |
|
| |
| | | | | | 626,136 | |
| | | | |
|
| |
Energy – 2.0% | | | | | | | |
Core Laboratories N.V. (a) | | | 3,125 | | | 391,500 | |
Foundation Coal Holdings, Inc. | | | 2,400 | | | 143,952 | |
| | | | |
|
| |
| | | | | | 535,452 | |
| | | | |
|
| |
Environmental Services – 1.2% | | | | | | | |
Stericycle, Inc. (a) | | | 6,225 | | | 332,291 | |
| | | | |
|
| |
Financial Services – 6.6% | | | | | | | |
Affiliated Managers Group, Inc. (a) | | | 4,100 | | | 407,294 | |
Annaly Capital Management, Inc. | | | 24,850 | | | 416,486 | |
BlackRock, Inc. | | | 1,100 | | | 221,969 | |
CME Group, Inc. | | | 550 | | | 251,598 | |
Eaton Vance Corp. | | | 7,325 | | | 268,095 | |
Jones Lang LaSalle, Inc. | | | 2,425 | | | 188,204 | |
| | | | |
|
| |
| | | | | | 1,753,646 | |
| | | | |
|
| |
Food & Beverage – 3.3% | | | | | | | |
Central European Distribution Corp. (a) | | | 7,525 | | | 458,423 | |
Flowers Foods, Inc. | | | 15,925 | | | 412,298 | |
| | | | |
|
| |
| | | | | | 870,721 | |
| | | | |
|
| |
Health Care – 9.0% | | | | | | | |
DaVita, Inc. (a) | | | 3,800 | | | 199,158 | |
Express Scripts, Inc. (a) | | | 3,425 | | | 239,819 | |
Hologic, Inc. (a) | | | 12,026 | | | 351,039 | |
Laboratory Corp. of America Holdings (a) | | | 3,925 | | | 296,808 | |
Psychiatric Solutions, Inc. (a) | | | 6,725 | | | 233,425 | |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 28 |
|
HSBC INVESTOR MID - CAP FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Health Care, continued | | | | | | | |
ResMed, Inc. (a) | | | 6,150 | | | 265,188 | |
Techne Corp. (a) | | | 925 | | | 67,081 | |
VCA Antech, Inc. (a) | | | 12,925 | | | 418,382 | |
West Pharmaceutical Services, Inc. | | | 6,950 | | | 326,024 | |
| | | | |
|
| |
| | | | | | 2,396,924 | |
| | | | |
|
| |
Industrial Manufacturing – 2.2% | | | | | | | |
Interface, Inc., Class A | | | 8,025 | | | 103,041 | |
Oshkosh Corp. | | | 8,850 | | | 359,310 | |
Snap-on, Inc. | | | 2,100 | | | 124,551 | |
| | | | |
|
| |
| | | | | | 586,902 | |
| | | | |
|
| |
Insurance – 4.5% | | | | | | | |
Assurant, Inc. | | | 5,050 | | | 328,250 | |
Axis Capital Holdings Ltd. | | | 10,350 | | | 350,968 | |
Fidelity National Financial, Inc., Class A | | | 14,100 | | | 225,459 | |
Proassurance Corp. (a) | | | 5,700 | | | 301,131 | |
| | | | |
|
| |
| | | | | | 1,205,808 | |
| | | | |
|
| |
Leisure – 1.1% | | | | | | | |
Penn National Gaming, Inc. (a) | | | 7,200 | | | 307,584 | |
| | | | |
|
| |
Metal Processors & Fabrication – 1.0% | | | | | | | |
Carpenter Technology Corp. | | | 5,050 | | | 258,964 | |
| | | | |
|
| |
Oil & Gas – 8.7% | | | | | | | |
Atlas America, Inc. | | | 5,125 | | | 356,495 | |
Enbridge, Inc. | | | 3,300 | | | 135,894 | |
FMC Technologies, Inc. (a) | | | 8,775 | | | 589,680 | |
Oil States International, Inc. (a) | | | 4,575 | | | 229,025 | |
Southwestern Energy Co. (a) | | | 10,700 | | | 452,717 | |
XTO Energy, Inc. | | | 9,041 | | | 559,276 | |
| | | | |
|
| |
| | | | | | 2,323,087 | |
| | | | |
|
| |
Real Estate – 2.2% | | | | | | | |
Alexandria Real Estate Equities, Inc. | | | 2,800 | | | 294,084 | |
Essex Property Trust, Inc. | | | 2,500 | | | 297,500 | |
| | | | |
|
| |
| | | | | | 591,584 | |
| | | | |
|
| |
Retail – 1.1% | | | | | | | |
Hanesbrands, Inc (a) | | | 8,300 | | | 290,666 | |
| | | | |
|
| |
Specialty Retail – 4.2% | | | | | | | |
Dick’s Sporting Goods, Inc. (a) | | | 11,750 | | | 336,050 | |
GameStop Corp., Class A (a) | | | 6,475 | | | 356,384 | |
Penske Automotive Group, Inc. | | | 7,425 | | | 155,405 | |
Tiffany & Co. | | | 6,250 | | | 272,125 | |
| |
| |
| |
| | | | | | 1,119,964 | |
| | | | |
|
| |
Telecommunications – 1.6% | | | | | | | |
American Tower Corp., Class A (a) | | | 7,050 | | | 306,111 | |
NII Holdings, Inc. (a) | | | 2,850 | | | 130,359 | |
| | | | |
|
| |
| | | | | | 436,470 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Transportation – 0.9% | | | | | |
Expeditors International of Washington, Inc. | | | 5,000 | | | 232,950 | |
| | | | |
|
| |
Utilities – 7.6% | | | | | | | |
Equitable Resources, Inc. | | | 10,025 | | | 665,359 | |
ITC Holdings Corp. | | | 7,925 | | | 442,057 | |
Northeast Utilities | | | 17,925 | | | 471,786 | |
NorthWestern Corp. | | | 4,750 | | | 117,895 | |
Wisconsin Energy Corp. | | | 6,950 | | | 329,847 | |
| | | | |
|
| |
| | | | | | 2,026,944 | |
| | | | |
|
| |
Wire & Cable Products – 3.1% | | | | | | | |
Belden, Inc. | | | 6,575 | | | 221,840 | |
General Cable Corp. (a) | | | 9,000 | | | 603,000 | |
| | | | |
|
| |
| | | | | | 824,840 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $20,321,699) | | | | | | 26,115,402 | |
| | | | |
|
| |
Investment Companies – 2.5% | | | | | | | |
|
|
|
|
|
|
|
|
MidCap S&P Depositary Receipt
Trust Series 1 | | | 2,160 | | | 328,860 | |
Northern Institutional Diversified
Assets Portfolio, 2.33% (b) | | | 344,094 | | | 344,094 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $659,569) | | | | | | 672,954 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $20,981,268) — 100.2% | | | | | | 26,788,356 | |
| | | | |
|
| |
| |
|
Percentages indicated are based on net assets of $26,744,067. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
ADR—American Depositary Receipt |
| | |
29 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
[This Page Intentionally Left Blank]
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Core Plus
Fixed Income
Fund
(Advisor) | | Core Plus
Fixed Income
Fund | | High Yield
Fixed Income
Fund | | Intermediate
Duration
Fixed Income
Fund | | New York
Tax-Free
Bond Fund | |
|
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 69,849,813 | | $ | 15,487,284 | | $ | 9,029,258 | | $ | 13,051,798 | | $ | — | |
Investments in non-affiliates, at value | | | — | | | — | | | — | | | — | | | 59,297,821 | |
Interest and dividends receivable | | | — | | | — | | | — | | | — | | | 810,406 | |
Receivable for capital shares issued | | | 268,629 | | | 50,789 | | | 55,881 | | | 42,244 | | | 192,022 | |
Receivable from Investment Adviser | | | 15,258 | | | 9,441 | | | 14,434 | | | 12,219 | | | — | |
Prepaid expenses and other assets | | | 6,312 | | | 3,976 | | | 6,620 | | | 3,793 | | | 5,284 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 70,140,012 | | | 15,551,490 | | | 9,106,193 | | | 13,110,054 | | | 60,305,533 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | | | | |
Dividends payable | | | 269,748 | | | 53,382 | | | 59,542 | | | 46,322 | | | 173,525 | |
Payable for capital shares redeemed | | | 111,018 | | | 31,947 | | | 10,558 | | | 100 | | | 138,247 | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | — | | | — | | | — | | | 12,097 | |
Administration | | | 4,560 | | | 731 | | | 305 | | | 1,117 | | | 5,246 | |
Distribution | | | — | | | 3,057 | | | 1,653 | | | 2,936 | | | 4,530 | |
Shareholder Servicing | | | — | | | 3,171 | | | 1,246 | | | 755 | | | 7,827 | |
Compliance Service | | | 79 | | | 17 | | | 12 | | | 16 | | | 118 | |
Transfer Agent | | | 4,587 | | | 9,874 | | | 15,664 | | | 7,962 | | | 8,855 | |
Other | | | 27,193 | | | 55 | | | — | | | 1,520 | | | 15,461 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 417,185 | | | 102,234 | | | 88,980 | | | 60,728 | | | 365,906 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 69,722,827 | | $ | 15,449,256 | | $ | 9,017,213 | | $ | 13,049,326 | | $ | 59,939,627 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Composition of Net Assets: | | | | | | | | | | | | | | | | |
Capital | | $ | 72,249,942 | | $ | 16,583,075 | | $ | 9,624,073 | | $ | 13,635,777 | | $ | 58,670,849 | |
Accumulated net investment income (loss) | | | 78,601 | | | 3,798 | | | (2,958 | ) | | 15,346 | | | 2,892 | |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | (310,925 | ) | | (625,757 | ) | | (30,309 | ) | | (10,686 | ) | | 136,559 | |
Unrealized appreciation (depreciation) from investments and foreign currencies | | | (2,294,791 | ) | | (511,860 | ) | | (573,593 | ) | | (591,111 | ) | | 1,129,327 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 69,722,827 | | $ | 15,449,256 | | $ | 9,017,213 | | $ | 13,049,326 | | $ | 59,939,627 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 12,457,784 | | $ | 3,458,878 | | $ | 1,341,750 | | $ | 30,919,819 | |
Class B Shares | | | — | | | 2,887,821 | | | 2,327,944 | | | 2,049,631 | | | 6,491,537 | |
Class C Shares | | | — | | | 103,651 | | | 417,182 | | | 288,157 | | | 537,328 | |
Class I Shares | | | 69,722,827 | | | — | | | 2,813,209 | | | 9,369,788 | | | 21,990,943 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | $ | 69,722,827 | | $ | 15,449,256 | | $ | 9,017,213 | | $ | 13,049,326 | | $ | 59,939,627 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Shares Outstanding ($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | | | | | | | |
Class A Shares | | | — | | | 1,230,544 | | | 370,189 | | | 139,269 | | | 2,820,790 | |
Class B Shares | | | — | | | 284,944 | | | 249,039 | | | 212,327 | | | 592,803 | |
Class C Shares | | | — | | | 10,259 | | | 44,548 | | | 29,860 | | | 48,885 | |
Class I Shares | | | 7,048,456 | | | — | | | 301,049 | | | 971,043 | | | 2,006,070 | |
| | | | | | | | | | | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 10.12 | | $ | 9.34 | | $ | 9.63 | | $ | 10.96 | |
Class B Shares* | | $ | — | | $ | 10.13 | | $ | 9.35 | | $ | 9.65 | | $ | 10.95 | |
Class C Shares* | | $ | — | | $ | 10.10 | | $ | 9.36 | | $ | 9.65 | | $ | 10.99 | |
Class I Shares | | $ | 9.89 | | $ | — | | $ | 9.34 | | $ | 9.65 | | $ | 10.96 | |
Maximum Sales Charge—Class A Shares | | | — | % | | 4.75 | % | | 4.75 | % | | 4.75 | % | | 4.75 | % |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares | | $ | — | | $ | 10.62 | | $ | 9.81 | | $ | 10.11 | | $ | 11.51 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | | | | | | | | | | | | | $ | 58,168,494 | |
| | | | | | | | | | | | | |
|
| |
| | |
|
* Redemption Price per share varies by length of time shares are held. |
| | |
30 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | | | | | | | | | | |
| | Growth
Fund | | Growth and
Income Fund | | International
Equity Fund | | Mid-Cap
Fund | | Opportunity
Fund | |
|
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 52,689,294 | | $ | — | | $ | 318,224,539 | | $ | — | | $ | 17,018,708 | |
Investments in non-affiliates, at value | | | — | | | 39,723,050 | | | — | | | 26,788,356 | | | — | |
Interest and dividends receivable | | | — | | | 30,493 | | | — | | | 9,884 | | | — | |
Receivable for capital shares issued | | | 53,804 | | | 81 | | | 52,419 | | | 512 | | | 864 | |
Receivable for investments sold | | | — | | | — | | | — | | | 79,458 | | | — | |
Reclaims receivable | | | — | | | — | | | 412,118 | | | — | | | — | |
Receivable from Investment Adviser | | | — | | | — | | | — | | | 1,913 | | | 4,328 | |
Prepaid expenses and other assets | | | 12,316 | | | 23,370 | | | 9,849 | | | 8,955 | | | 4,522 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 52,755,414 | | | 39,776,994 | | | 318,698,925 | | | 26,889,078 | | | 17,028,422 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | | | | |
Payable for investments purchased | | | — | | | — | | | — | | | 105,123 | | | — | |
Payable for capital shares redeemed | | | 221,474 | | | 3,088 | | | 136,033 | | | 4,674 | | | 27,855 | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | 17,368 | | | — | | | 9,663 | | | — | |
Administration | | | 1,719 | | | 10,081 | | | 12,934 | | | 4,816 | | | 872 | |
Distribution | | | 899 | | | 2,438 | | | — | | | 2,858 | | | 1,712 | |
Shareholder Servicing | | | 5,316 | | | 1,210 | | | — | | | 1,964 | | | 3,368 | |
Compliance Service | | | 92 | | | 49 | | | 354 | | | 62 | | | 20 | |
Transfer Agent | | | 18,146 | | | 3,093 | | | 5,109 | | | 12,510 | | | 16,642 | |
Other | | | 17,171 | | | 3,705 | | | 133,264 | | | 3,341 | | | 710 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 264,817 | | | 41,032 | | | 287,694 | | | 145,011 | | | 51,179 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 52,490,597 | | $ | 39,735,962 | | $ | 318,411,231 | | $ | 26,744,067 | | $ | 16,977,243 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Composition of Net Assets: | | | | | | | | | | | | | | | | |
Capital | | $ | 42,389,292 | | $ | 32,538,138 | | $ | 259,800,255 | | $ | 19,712,386 | | $ | 13,358,584 | |
Accumulated net investment income (loss) | | | (27,628 | ) | | 37,709 | | | 2,525,389 | | | (71,486 | ) | | (113,681 | ) |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | 1,828,323 | | | (1,620,761 | ) | | 17,640,385 | | | 1,296,079 | | | 2,215,826 | |
Unrealized appreciation (depreciation) from investments and foreign currencies | | | 8,300,610 | | | 8,780,876 | | | 38,445,202 | | | 5,807,088 | | | 1,516,514 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 52,490,597 | | $ | 39,735,962 | | $ | 318,411,231 | | $ | 26,744,067 | | $ | 16,977,243 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | 24,248,248 | | $ | 2,097,895 | | $ | — | | $ | 5,121,769 | | $ | 12,863,013 | |
Class B Shares | | | 1,367,842 | | | 3,932,324 | | | — | | | 4,459,198 | | | 3,798,946 | |
Class C Shares | | | 79,891 | | | 29,828 | | | — | | | 69,233 | | | 315,284 | |
Class I Shares | | | 26,794,616 | | | 33,675,915 | | | 318,411,231 | | | 17,093,867 | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | $ | 52,490,597 | | $ | 39,735,962 | | $ | 318,411,231 | | $ | 26,744,067 | | $ | 16,977,243 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Shares Outstanding ($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | | | | | | | |
Class A Shares | | | 1,554,632 | | | 166,413 | | | — | | | 601,709 | | | 1,199,689 | |
Class B Shares | | | 93,678 | | | 321,948 | | | — | | | 570,322 | | | 410,303 | |
Class C Shares | | | 5,438 | | | 2,421 | | | — | | | 8,762 | | | 33,479 | |
Class I Shares | | | 1,708,322 | | | 2,659,784 | | | 16,000,058 | | | 1,960,580 | | | — | |
| | | | | | | | | | | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | 15.60 | | $ | 12.61 | | $ | — | | $ | 8.51 | | $ | 10.72 | |
Class B Shares* | | $ | 14.60 | | $ | 12.21 | | $ | — | | $ | 7.82 | | $ | 9.26 | |
Class C Shares* | | $ | 14.69 | | $ | 12.32 | | $ | — | | $ | 7.90 | | $ | 9.42 | |
Class I Shares | | $ | 15.68 | | $ | 12.66 | | $ | 19.90 | | $ | 8.72 | | $ | — | |
Maximum Sales Charge—Class A Shares | | | 5.00 | % | | 5.00 | % | | — | % | | 5.00 | % | | 5.00 | % |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares | | $ | 16.42 | | $ | 13.27 | | $ | — | | $ | 8.96 | | $ | 11.28 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | | | | $ | 30,942,174 | | | | | $ | 20,981,268 | | | | |
| | | | |
|
| | | | |
|
| | | | |
|
|
* Redemption Price per share varies by length of time shares are held. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 31 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | | | | |
| | Opportunity
Fund
(Advisor) | | Overseas
Equity Fund | | Value
Fund | |
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 152,208,035 | | $ | 14,296,082 | | $ | 47,946,748 | |
Receivable for capital shares issued | | | 116,174 | | | 639 | | | 187,585 | |
Reclaims receivable | | | — | | | 67,503 | | | — | |
Receivable from Investment Adviser | | | — | | | 1,184 | | | — | |
Prepaid expenses and other assets | | | 4,830 | | | 5,014 | | | 7,819 | |
| |
|
| |
|
| |
|
| |
Total Assets | | | 152,329,039 | | | 14,370,422 | | | 48,142,152 | |
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | |
Payable for capital shares redeemed | | | 31,207 | | | 43,531 | | | 188,658 | |
Accrued expenses and other liabilities: | | | | | | | | | | |
Administration | | | 7,981 | | | 715 | | | 1,645 | |
Distribution | | | — | | | 1,839 | | | 950 | |
Shareholder Servicing | | | — | | | 2,948 | | | 4,664 | |
Compliance Service | | | 225 | | | 19 | | | 76 | |
Transfer Agent | | | 6,328 | | | 11,872 | | | 11,282 | |
Other | | | 50,941 | | | 1,394 | | | 5,842 | |
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 96,682 | | | 62,318 | | | 213,117 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 152,232,357 | | $ | 14,308,104 | | $ | 47,929,035 | |
| |
|
| |
|
| |
|
| |
Composition of Net Assets: | | | | | | | | | | |
Capital | | $ | 123,917,932 | | $ | 8,074,279 | | $ | 44,853,278 | |
Accumulated net investment income (loss) | | | (417,404 | ) | | 45,460 | | | 123,798 | |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | 15,269,652 | | | 2,421,431 | | | 874,923 | |
Unrealized appreciation (depreciation) from investments and foreign currencies | | | 13,462,177 | | | 3,766,934 | | | 2,077,036 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 152,232,357 | | $ | 14,308,104 | | $ | 47,929,035 | |
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 11,320,043 | | $ | 21,117,177 | |
Class B Shares | | | — | | | 2,858,873 | | | 1,405,672 | |
Class C Shares | | | — | | | 129,188 | | | 100,162 | |
Class I Shares | | | 152,232,357 | | | — | | | 25,306,024 | |
| |
|
| |
|
| |
|
| |
| | $ | 152,232,357 | | $ | 14,308,104 | | $ | 47,929,035 | |
| |
|
| |
|
| |
|
| |
Shares Outstanding ($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | |
Class A Shares | | | — | | | 769,755 | | | 1,567,698 | |
Class B Shares | | | — | | | 206,626 | | | 109,466 | |
Class C Shares | | | — | | | 9,035 | | | 7,734 | |
Class I Shares | | | 11,343,702 | | | — | | | 1,880,969 | |
| | | | | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 14.71 | | $ | 13.47 | |
Class B Shares* | | $ | — | | $ | 13.84 | | $ | 12.84 | |
Class C Shares* | | $ | — | | $ | 14.30 | | $ | 12.95 | |
Class I Shares | | $ | 13.42 | | $ | — | | $ | 13.45 | |
Maximum Sales Charge—Class A Shares | | | — | % | | 5.00 | % | | 5.00 | % |
| |
|
| |
|
| |
|
| |
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares | | $ | — | | $ | 15.48 | | $ | 14.18 | |
| |
|
| |
|
| |
|
| |
|
|
* Redemption Price per share varies by length of time shares are held. |
| | |
32 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Operations—For the six months ended April 30, 2008 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Core Plus
Fixed Income
Fund
(Advisor) | | Core Plus
Fixed Income
Fund | | High Yield
Fixed Income
Fund | | Intermediate
Duration
Fixed Income
Fund | | New York
Tax-Free
Bond Fund | |
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | | | | |
Interest | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,282,089 | |
Dividends | | | — | | | — | | | — | | | — | | | 17,307 | |
Investment Income from Affiliated Portfolios (a) | | | 2,031,955 | | | 454,866 | | | 398,910 | | | 367,447 | | | — | |
Expenses from Affiliated Portfolios (a) | | | (212,661 | ) | | (47,573 | ) | | (53,763 | ) | | (61,544 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 1,819,294 | | | 407,293 | | | 345,147 | | | 305,903 | | | 1,299,396 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Expenses: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | — | | | — | | | — | | | 74,525 | |
Administration | | | 8,422 | | | 1,882 | | | 996 | | | 1,571 | | | 13,623 | |
Distribution: | | | | | | | | | | | | | | | | |
Class B Shares | | | — | | | 12,718 | | | 8,584 | | | 9,721 | | | 28,557 | |
Class C Shares | | | — | | | 344 | | | 1,096 | | | 1,104 | | | 2,304 | |
Shareholder Servicing: | | | | | | | | | | | | | | | | |
Class A Shares | | | — | | | 16,205 | | | 4,344 | | | 1,182 | | | 39,210 | |
Class B Shares | | | — | | | 4,239 | | | 2,861 | | | 3,241 | | | 9,519 | |
Class C Shares | | | — | | | 115 | | | 365 | | | 368 | | | 768 | |
Accounting | | | 4,475 | | | 9,450 | | | 11,935 | | | 11,935 | | | 37,227 | |
Compliance Service | | | 205 | | | 45 | | | 27 | | | 37 | | | 312 | |
Custodian | | | — | | | — | | | — | | | — | | | 1,964 | |
Printing | | | 11,558 | | | 3,680 | | | 2,110 | | | 3,124 | | | 11,094 | |
Professional | | | 1,295 | | | 285 | | | 333 | | | 224 | | | 1,579 | |
Transfer Agent | | | 13,914 | | | 26,529 | | | 29,803 | | | 21,891 | | | 27,002 | |
Trustee | | | 439 | | | 96 | | | 68 | | | 78 | | | 683 | |
Registration | | | — | | | 39 | | | 141 | | | — | | | 139 | |
Other | | | 6,805 | | | 3,579 | | | 5,760 | | | 1,378 | | | 5,478 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 47,113 | | | 79,206 | | | 68,423 | | | 55,854 | | | 253,984 | |
Fees reduced by Investment Adviser | | | (94,331 | ) | | (56,274 | ) | | (80,981 | ) | | (74,363 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Expenses (Recoveries) | | | (47,218 | ) | | 22,932 | | | (12,558 | ) | | (18,509 | ) | | 253,984 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | 1,866,512 | | | 384,361 | | | 357,705 | | | 324,412 | | | 1,045,412 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | | | | | | | |
Net realized gains (losses) from investment and foreign currency transactions | | | (225,447 | ) | | (47,559 | ) | | (30,309 | ) | | (6,684 | ) | | 136,561 | |
Change in unrealized appreciation (depreciation) from investment and foreign currencies | | | (2,213,350 | ) | | (495,180 | ) | | (475,496 | ) | | (511,952 | ) | | (525,303 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net realized/unrealized gains (losses) from investment and foreign currency transactions | | | (2,438,797 | ) | | (542,739 | ) | | (505,805 | ) | | (518,636 | ) | | (388,742 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (572,285 | ) | $ | (158,378 | ) | $ | (148,100 | ) | $ | (194,224 | ) | $ | 656,670 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
(a) With the exception of New York Tax-Free Bond Fund, represents amounts allocated from the respective Affiliated Portfolios. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 33 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Operations—For the year ended April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | | | | | | | |
| | Growth
Fund | | Growth and
Income Fund | | International
Equity Fund | | Mid-Cap
Fund | | Opportunity
Fund | |
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | | | | |
Dividends | | $ | — | | $ | 244,389 | | $ | — | | $ | 109,249 | | $ | — | |
Investment Income from Affiliated Portfolios (a) | | | 270,181 | | | — | | | 5,134,477 | | | — | | | 35,352 | |
Tax reclaims (a) | | | — | | | — | | | 78,198 | | | — | | | — | |
Foreign tax withholding from Affiliated Portfolios (a) | | | — | | | — | | | (523,931 | ) | | — | | | — | |
Expenses from Affiliated Portfolios (a) | | | (165,376 | ) | | — | | | (1,248,435 | ) | | — | | | (74,690 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 104,805 | | | 244,389 | | | 3,440,309 | | | 109,249 | | | (39,338 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | 121,424 | | | — | | | 101,625 | | | — | |
Administration | | | 6,325 | | | 9,257 | | | 36,692 | | | 6,195 | | | 1,954 | |
Distribution: | | | | | | | | | | | | | | | | |
Class B Shares | | | 5,378 | | | 15,942 | | | — | | | 19,214 | | | 15,777 | |
Class C Shares | | | 325 | | | 143 | | | — | | | 261 | | | 1,135 | |
Shareholder Servicing: | | | | | | | | | | | | | | | | |
Class A Shares | | | 32,747 | | | 2,278 | | | — | | | 6,146 | | | 15,725 | |
Class B Shares | | | 1,793 | | | 5,314 | | | — | | | 6,405 | | | 5,259 | |
Class C Shares | | | 108 | | | 48 | | | — | | | 87 | | | 378 | |
Accounting | | | 14,848 | | | 23,643 | | | 4,475 | | | 32,194 | | | 9,450 | |
Compliance Service | | | 196 | | | 188 | | | 910 | | | 148 | | | 48 | |
Custodian | | | — | | | 1,466 | | | — | | | 4,911 | | | — | |
Printing | | | 15,810 | | | 2,857 | | | 55,042 | | | 6,422 | | | 3,716 | |
Professional | | | 2,010 | | | 679 | | | 5,348 | | | 706 | | | 307 | |
Transfer Agent | | | 45,787 | | | 21,377 | | | 16,225 | | | 38,780 | | | 42,912 | |
Trustee | | | 451 | | | 509 | | | 1,955 | | | 330 | | | 103 | |
Registration | | | 175 | | | — | | | — | | | — | | | — | |
Other | | | 6,480 | | | 11,675 | | | 17,186 | | | 4,926 | | | 4,317 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 132,433 | | | 216,800 | | | 137,833 | | | 228,350 | | | 101,081 | |
Fees reduced by Investment Adviser | | | — | | | (10,119 | ) | | — | | | (47,615 | ) | | (26,738 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Expenses | | | 132,433 | | | 206,681 | | | 137,833 | | | 180,735 | | | 74,343 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Investment Income (Loss) | | | (27,628 | ) | | 37,708 | | | 3,302,476 | | | (71,486 | ) | | (113,681 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | | | | | | | |
Net realized gains (losses) from investment and foreign currency transactions | | | 1,848,491 | | | 4,130,541 | | | 17,845,317 | | | 1,388,759 | | | 2,271,366 | |
Change in unrealized appreciation (depreciation) from investment and foreign currencies | | | (7,229,514 | ) | | (8,893,645 | ) | | (62,897,453 | ) | | (4,679,551 | ) | | (2,867,229 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains (losses) from investment and foreign currency transactions | | | (5,381,023 | ) | | (4,763,104 | ) | | (45,052,136 | ) | | (3,290,792 | ) | | (595,863 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (5,408,651 | ) | $ | (4,725,396 | ) | $ | (41,749,660 | ) | $ | (3,362,278 | ) | $ | (709,544 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
(a) With the exception of Growth & Income Fund and the Mid-Cap Fund, represents amounts allocated from the respective Affiliated Portfolios. |
| | |
34 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | |
| | Opportunity
Fund
(Advisor) | | Overseas
Equity Fund | | Value
Fund | |
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | |
Investment Income from Affiliated Portfolios (a) | | $ | 309,900 | | $ | 240,248 | | $ | 527,151 | |
Tax reclaims (a) | | | — | | | 3,307 | | | — | |
Foreign tax withholding from Affiliated Portfolios (a) | | | — | | | (24,334 | ) | | — | |
Expenses from Affiliated Portfolios (a) | | | (653,014 | ) | | (60,212 | ) | | (160,749 | ) |
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | (343,114 | ) | | 159,009 | | | 366,402 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Expenses: | | | | | | | | | | |
Administration | | | 17,105 | | | 1,772 | | | 5,744 | |
Distribution: | | | | | | | | | | |
Class B Shares | | | — | | | 11,298 | | | 5,739 | |
Class C Shares | | | — | | | 478 | | | 411 | |
Shareholder Servicing: | | | | | | | | | | |
Class A Shares | | | — | | | 15,431 | | | 28,581 | |
Class B Shares | | | — | | | 3,766 | | | 1,913 | |
Class C Shares | | | — | | | 159 | | | 137 | |
Accounting | | | 4,475 | | | 9,450 | | | 11,935 | |
Compliance Service | | | 390 | | | 44 | | | 155 | |
Printing | | | 22,122 | | | 3,269 | | | 10,009 | |
Professional | | | 2,446 | | | 277 | | | 840 | |
Transfer Agent | | | 17,106 | | | 33,158 | | | 39,156 | |
Trustee | | | 822 | | | 96 | | | 298 | |
Registration | | | — | | | — | | | 136 | |
Other | | | 9,824 | | | 5,937 | | | 6,340 | |
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 74,290 | | | 85,135 | | | 111,394 | |
Fees reduced by Investment Adviser | | | — | | | (2,380 | ) | | — | |
| |
|
| |
|
| |
|
| |
Net Expenses | | | 74,290 | | | 82,755 | | | 111,394 | |
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | (417,404 | ) | | 76,254 | | | 255,008 | |
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | |
Net realized gains (losses) from investment and foreign currency transactions | | | 15,667,251 | | | 2,434,573 | | | 702,973 | |
Change in unrealized appreciation (depreciation) from investment and foreign currencies | | | (20,258,246 | ) | | (4,768,662 | ) | | (7,081,129 | ) |
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains (losses) from investment and foreign currency transactions | | | (4,590,995 | ) | | (2,334,089 | ) | | (6,378,156 | ) |
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (5,008,399 | ) | $ | (2,257,835 | ) | $ | (6,123,148 | ) |
| |
|
| |
|
| |
|
| |
|
(a) Represents amounts allocated from the respective Affiliated Portfolios. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 35 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets
| | | | | | | | | | | | | |
| | Core Plus
Fixed Income Fund (Advisor) | | Core Plus Fixed
Income Fund | |
| |
| |
| |
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 1,866,512 | | $ | 4,349,066 | | $ | 384,361 | | $ | 875,944 | |
Net realized gains (losses) from investment and foreign currency transactions | | | (225,447 | ) | | 2,097,739 | | | (47,559 | ) | | 433,571 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (2,213,350 | ) | | (740,498 | ) | | (495,180 | ) | | (152,977 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (572,285 | ) | | 5,706,307 | | | (158,378 | ) | | 1,156,538 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | (320,512 | ) | | (704,651 | ) |
Class B Shares | | | — | | | — | | | (71,168 | ) | | (172,434 | ) |
Class C Shares | | | — | | | — | | | (1,891 | ) | | (5,092 | ) |
Class I Shares | | | (1,908,129 | ) | | (4,321,491 | ) | | — | | | — | |
Net realized gains: | | | | | | | | | | | | | |
Class I Shares | | | (562,425 | ) | | — | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (2,470,554 | ) | | (4,321,491 | ) | | (393,571 | ) | | (882,177 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (8,626,805 | ) | | (968,500 | ) | | (1,413,096 | ) | | 388,105 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (11,669,644 | ) | | 416,316 | | | (1,965,045 | ) | | 662,466 | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 81,392,471 | | | 80,976,155 | | | 17,414,301 | | | 16,751,835 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 69,722,827 | | $ | 81,392,471 | | $ | 15,449,256 | | $ | 17,414,301 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 78,601 | | $ | 120,218 | | $ | 3,798 | | $ | 13,008 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
36 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Core Plus
Fixed Income Fund (Advisor) | | Core Plus Fixed
Income Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | — | | $ | — | | $ | 887,736 | | $ | 4,557,268 | |
Dividends reinvested | | | — | | | — | | | 304,156 | | | 673,120 | |
Value of shares redeemed | | | — | | | — | | | (1,896,040 | ) | | (4,086,990 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | — | | | — | | | (704,148 | ) | | 1,143,398 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 75,743 | | | 133,221 | |
Dividends reinvested | | | — | | | — | | | 65,261 | | | 152,515 | |
Value of shares redeemed | | | — | | | — | | | (926,527 | ) | | (832,273 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | — | | | — | | | (785,523 | ) | | (546,537 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 79,000 | | | 16,800 | |
Dividends reinvested | | | — | | | — | | | 1,787 | | | 4,727 | |
Value of shares redeemed | | | — | | | — | | | (4,212 | ) | | (230,283 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | — | | | — | | | 76,575 | | | (208,756 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 8,330,714 | | | 16,414,081 | | | — | | | — | |
Dividends reinvested | | | 1,908,463 | | | 2,820,496 | | | — | | | — | |
Value of shares redeemed | | | (18,865,982 | ) | | (20,203,077 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | (8,626,805 | ) | | (968,500 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (8,626,805 | ) | $ | (968,500 | ) | $ | (1,413,096 | ) | $ | 388,105 | |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 86,643 | | | 435,107 | |
Reinvested | | | — | | | — | | | 29,465 | | | 64,455 | |
Redeemed | | | — | | | — | | | (182,949 | ) | | (391,171 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | — | | | — | | | (66,841 | ) | | 108,391 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 7,365 | | | 12,712 | |
Reinvested | | | — | | | — | | | 6,310 | | | 14,586 | |
Redeemed | | | — | | | — | | | (90,239 | ) | | (79,589 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | — | | | — | | | (76,564 | ) | | (52,291 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 7,588 | | | 1,628 | |
Reinvested | | | — | | | — | | | 174 | | | 453 | |
Redeemed | | | — | | | — | | | (403 | ) | | (22,120 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | — | | | — | | | 7,359 | | | (20,039 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | 831,383 | | | 1,596,631 | | | — | | | — | |
Reinvested | | | 188,587 | | | 274,454 | | | — | | | — | |
Redeemed | | | (1,864,188 | ) | | (1,968,988 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | (844,218 | ) | | (97,903 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 37 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | High Yield
Fixed Income Fund | | Intermediate Duration
Fixed Income Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 357,705 | | $ | 664,670 | | $ | 324,412 | | $ | 875,888 | |
Net realized gains (losses) from investment and foreign currency transactions | | | (30,309 | ) | | 94,442 | | | (6,684 | ) | | 792,234 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (475,496 | ) | | (167,829 | ) | | (511,952 | ) | | (170,042 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (148,100 | ) | | 591,283 | | | (194,224 | ) | | 1,498,080 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (146,430 | ) | | (307,911 | ) | | (22,452 | ) | | (41,612 | ) |
Class B Shares | | | (87,814 | ) | | (163,518 | ) | | (53,171 | ) | | (145,985 | ) |
Class C Shares | | | (11,097 | ) | | (18,030 | ) | | (5,977 | ) | | (19,081 | ) |
Class I Shares | | | (115,650 | ) | | (181,367 | ) | | (250,578 | ) | | (666,493 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (38,586 | ) | | (15,636 | ) | | (3,193 | ) | | — | |
Class B Shares | | | (24,882 | ) | | (6,846 | ) | | (10,717 | ) | | — | |
Class C Shares | | | (2,297 | ) | | (757 | ) | | (1,145 | ) | | — | |
Class I Shares | | | (28,677 | ) | | (8,215 | ) | | (38,243 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (455,433 | ) | | (702,280 | ) | | (385,476 | ) | | (873,171 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 608,256 | | | (533,751 | ) | | (416,510 | ) | | (4,796,641 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 4,723 | | | (644,748 | ) | | (996,210 | ) | | (4,171,732 | ) |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 9,012,490 | | | 9,657,238 | | | 14,045,536 | | | 18,217,268 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 9,017,213 | | $ | 9,012,490 | | $ | 13,049,326 | | $ | 14,045,536 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (2,958 | ) | $ | 328 | | $ | 15,346 | | $ | 23,112 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
38 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | High Yield
Fixed Income Fund | | Intermediate Duration
Fixed Income Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 267,574 | | $ | 1,101,456 | | $ | 618,706 | | $ | 91,672 | |
Dividends reinvested | | | 135,852 | | | 261,982 | | | 22,654 | | | 37,106 | |
Value of shares redeemed | | | (400,388 | ) | | (2,360,652 | ) | | (65,825 | ) | | (335,287 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 3,038 | | | (997,214 | ) | | 575,535 | | | (206,509 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 123,235 | | | 542,167 | | | 19,722 | | | 53,039 | |
Dividends reinvested | | | 80,107 | | | 113,890 | | | 56,966 | | | 129,255 | |
Value of shares redeemed | | | (160,472 | ) | | (279,180 | ) | | (896,749 | ) | | (1,060,828 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 42,870 | | | 376,877 | | | (820,061 | ) | | (878,534 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 224,205 | | | 83,515 | | | 1,650 | | | 16,250 | |
Dividends reinvested | | | 5,792 | | | 15,343 | | | 7,015 | | | 18,729 | |
Value of shares redeemed | | | (17,912 | ) | | (112,155 | ) | | (13,313 | ) | | (248,148 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 212,085 | | | (13,297 | ) | | (4,648 | ) | | (213,169 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 495,855 | | | 1,158,432 | | | 1,309,541 | | | 2,137,921 | |
Dividends reinvested | | | 143,424 | | | 188,601 | | | 256,529 | | | 500,994 | |
Value of shares redeemed | | | (289,016 | ) | | (1,247,150 | ) | | (1,733,406 | ) | | (6,137,344 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | 350,263 | | | 99,883 | | | (167,336 | ) | | (3,498,429 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 608,256 | | $ | (533,751 | ) | $ | (416,510 | ) | $ | (4,796,641 | ) |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 28,737 | | | 107,567 | | | 63,794 | | | 9,160 | |
Reinvested | | | 14,450 | | | 25,689 | | | 2,302 | | | 3,707 | |
Redeemed | | | (43,319 | ) | | (230,848 | ) | | (6,758 | ) | | (33,428 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | (132 | ) | | (97,592 | ) | | 59,338 | | | (20,561 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 13,260 | | | 52,978 | | | 1,992 | | | 5,264 | |
Reinvested | | | 8,517 | | | 11,185 | | | 5,756 | | | 12,882 | |
Redeemed | | | (17,137 | ) | | (27,507 | ) | | (91,649 | ) | | (105,990 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 4,640 | | | 36,656 | | | (83,901 | ) | | (87,844 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 24,185 | | | 7,961 | | | 166 | | | 1,608 | |
Reinvested | | | 614 | | | 1,498 | | | 710 | | | 1,868 | |
Redeemed | | | (1,916 | ) | | (11,490 | ) | | (1,347 | ) | | (24,816 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 22,883 | | | (2,031 | ) | | (471 | ) | | (21,340 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | 52,804 | | | 113,787 | | | 132,872 | | | 215,480 | |
Reinvested | | | 15,270 | | | 18,529 | | | 25,986 | | | 49,957 | |
Redeemed | | | (30,915 | ) | | (121,825 | ) | | (177,097 | ) | | (612,503 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | 37,159 | | | 10,491 | | | (18,239 | ) | | (347,066 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 39 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | |
| | New York Tax-Free
Bond Fund | |
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | |
Operations: | | | | | | | |
Net investment income (loss) | | $ | 1,045,412 | | $ | 2,140,227 | |
Net realized gains (losses) from investment transactions | | | 136,561 | | | 79,494 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (525,303 | ) | | (832,199 | ) |
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 656,670 | | | 1,387,522 | |
| |
|
| |
|
| |
Dividends: | | | | | | | |
Net investment income: | | | | | | | |
Class A Shares | | | (563,589 | ) | | (1,173,859 | ) |
Class B Shares | | | (108,170 | ) | | (304,650 | ) |
Class C Shares | | | (8,727 | ) | | (26,272 | ) |
Class I Shares | | | (383,575 | ) | | (608,516 | ) |
Net realized gains: | | | | | | | |
Class A Shares | | | (41,981 | ) | | (11,494 | ) |
Class B Shares | | | (10,694 | ) | | (4,734 | ) |
Class C Shares | | | (809 | ) | | (438 | ) |
Class I Shares | | | (26,013 | ) | | (5,055 | ) |
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (1,143,558 | ) | | (2,135,018 | ) |
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (603,039 | ) | | 323,731 | |
| |
|
| |
|
| |
Change in net assets | | | (1,089,927 | ) | | (423,765 | ) |
Net Assets: | | | | | | | |
Beginning of period | | | 61,029,554 | | | 61,453,319 | |
| |
|
| |
|
| |
End of period | | $ | 59,939,627 | | $ | 61,029,554 | |
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 2,892 | | $ | 21,541 | |
| |
|
| |
|
| |
| | |
40 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | |
| | New York Tax-Free
Bond Fund | |
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | |
Class A Shares: | | | | | | | |
Proceeds from shares issued | | $ | 1,920,436 | | $ | 7,409,045 | |
Dividends reinvested | | | 553,559 | | | 1,075,105 | |
Value of shares redeemed | | | (3,606,675 | ) | | (8,495,178 | ) |
| |
|
| |
|
| |
Class A Shares capital transactions | | | (1,132,680 | ) | | (11,028 | ) |
| |
|
| |
|
| |
Class B Shares: | | | | | | | |
Proceeds from shares issued | | | 54,413 | | | 141,720 | |
Dividends reinvested | | | 87,491 | | | 227,620 | |
Value of shares redeemed | | | (2,234,490 | ) | | (5,321,458 | ) |
| |
|
| |
|
| |
Class B Shares capital transactions | | | (2,092,586 | ) | | (4,952,118 | ) |
| |
|
| |
|
| |
Class C Shares: | | | | | | | |
Proceeds from shares issued | | | 32,415 | | | 17,375 | |
Dividends reinvested | | | 6,551 | | | 14,700 | |
Value of shares redeemed | | | (304,882 | ) | | (456,298 | ) |
| |
|
| |
|
| |
Class C Shares capital transactions | | | (265,916 | ) | | (424,223 | ) |
| |
|
| |
|
| |
Class I Shares: | | | | | | | |
Proceeds from shares issued | | | 3,672,485 | | | 7,546,678 | |
Dividends reinvested | | | 150,653 | | | 144,401 | |
Value of shares redeemed | | | (934,995 | ) | | (1,979,979 | ) |
| |
|
| |
|
| |
Class I Shares capital transactions | | | 2,888,143 | | | 5,711,100 | |
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (603,039 | ) | $ | 323,731 | |
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | |
Class A Shares: | | | | | | | |
Issued | | | 173,479 | | | 667,129 | |
Reinvested | | | 50,356 | | | 97,101 | |
Redeemed | | | (326,338 | ) | | (768,451 | ) |
| |
|
| |
|
| |
Change in Class A Shares | | | (102,503 | ) | | (4,221 | ) |
| |
|
| |
|
| |
Class B Shares: | | | | | | | |
Issued | | | 4,882 | | | 12,842 | |
Reinvested | | | 7,968 | | | 20,557 | |
Redeemed | | | (202,238 | ) | | (481,133 | ) |
| |
|
| |
|
| |
Change in Class B Shares | | | (189,388 | ) | | (447,734 | ) |
| |
|
| |
|
| |
Class C Shares: | | | | | | | |
Issued | | | 2,916 | | | 1,555 | |
Reinvested | | | 594 | | | 1,336 | |
Redeemed | | | (27,445 | ) | | (41,171 | ) |
| |
|
| |
|
| |
Change in Class C Shares | | | (23,935 | ) | | (38,280 | ) |
| |
|
| |
|
| |
Class I Shares: | | | | | | | |
Issued | | | 332,435 | | | 681,820 | |
Reinvested | | | 13,716 | | | 13,084 | |
Redeemed | | | (84,782 | ) | | (179,624 | ) |
| |
|
| |
|
| |
Change in Class I Shares | | | 261,369 | | | 515,280 | |
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 41 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Growth Fund | | Growth and Income Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (27,628 | ) | $ | 25,419 | | $ | 37,708 | | $ | 132,052 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 1,848,491 | | | 2,943,213 | | | 4,130,541 | | | 4,390,113 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (7,229,514 | ) | | 11,547,046 | | | (8,893,645 | ) | | 7,796,554 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (5,408,651 | ) | | 14,515,678 | | | (4,725,396 | ) | | 12,318,719 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | — | | | (9,938 | ) | | — | | | (2,732 | ) |
Class I Shares | | | — | | | (37,788 | ) | | (5,573 | ) | | (123,746 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (1,383,410 | ) | | (1,670,738 | ) | | — | | | — | |
Class B Shares | | | (79,801 | ) | | (114,608 | ) | | — | | | — | |
Class C Shares | | | (4,866 | ) | | (8,469 | ) | | — | | | — | |
Class I Shares | | | (1,424,277 | ) | | (1,202,878 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (2,892,354 | ) | | (3,044,419 | ) | | (5,573 | ) | | (126,478 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (2,090,352 | ) | | 12,667,797 | | | (8,089,213 | ) | | (6,527,061 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (10,391,357 | ) | | 24,139,056 | | | (12,820,182 | ) | | 5,665,180 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 62,881,954 | | | 38,742,898 | | | 52,556,144 | | | 46,890,964 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 52,490,597 | | $ | 62,881,954 | | $ | 39,735,962 | | $ | 52,556,144 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (27,628 | ) | $ | — | | $ | 37,709 | | $ | 5,574 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
42 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Growth Fund | | Growth and Income Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 681,581 | | $ | 8,418,213 | | $ | 490,494 | | $ | 395,680 | |
Dividends reinvested | | | 1,365,451 | | | 1,668,294 | | | — | | | 2,678 | |
Value of shares redeemed | | | (4,645,258 | ) | | (7,016,198 | ) | | (252,034 | ) | | (160,534 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (2,598,226 | ) | | 3,070,309 | | | 238,460 | | | 237,824 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 52,298 | | | 61,125 | | | 107,674 | | | 255,981 | |
Dividends reinvested | | | 79,295 | | | 112,067 | | | — | | | — | |
Value of shares redeemed | | | (167,010 | ) | | (260,768 | ) | | (673,471 | ) | | (894,133 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | (35,417 | ) | | (87,576 | ) | | (565,797 | ) | | (638,152 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 50 | | | 54 | | | 2,700 | | | 32,070 | |
Dividends reinvested | | | 4,866 | | | 8,413 | | | — | | | — | |
Value of shares redeemed | | | (9,203 | ) | | (197,005 | ) | | (24,900 | ) | | (17,991 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (4,287 | ) | | (188,538 | ) | | (22,200 | ) | | 14,079 | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 2,793,693 | | | 13,457,915 | | | 2,937,781 | | | 4,767,318 | |
Dividends reinvested | | | 1,334,114 | | | 1,190,246 | | | 1,695 | | | 8,085 | |
Value of shares redeemed | | | (3,580,229 | ) | | (4,774,559 | ) | | (10,679,152 | ) | | (10,916,215 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | 547,578 | | | 9,873,602 | | | (7,739,676 | ) | | (6,140,812 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (2,090,352 | ) | $ | 12,667,797 | | $ | (8,089,213 | ) | $ | (6,527,061 | ) |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 41,822 | | | 581,862 | | | 40,032 | | | 32,198 | |
Reinvested | | | 82,554 | | | 117,196 | | | — | | | 217 | |
Redeemed | | | (289,031 | ) | | (458,934 | ) | | (19,453 | ) | | (13,518 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | (164,655 | ) | | 240,124 | | | 20,579 | | | 18,897 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 3,578 | | | 4,219 | | | 8,920 | | | 22,376 | |
Reinvested | | | 5,109 | | | 8,307 | | | — | | | — | |
Redeemed | | | (11,338 | ) | | (18,265 | ) | | (56,813 | ) | | (74,961 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | (2,651 | ) | | (5,739 | ) | | (47,893 | ) | | (52,585 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 3 | | | 4 | | | 230 | | | 2,459 | |
Reinvested | | | 312 | | | 620 | | | — | | | — | |
Redeemed | | | (651 | ) | | (13,792 | ) | | (2,000 | ) | | (1,489 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | (336 | ) | | (13,168 | ) | | (1,770 | ) | | 970 | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | 174,231 | | | 901,736 | | | 246,940 | | | 403,086 | |
Reinvested | | | 80,320 | | | 83,266 | | | 125 | | | 654 | |
Redeemed | | | (227,222 | ) | | (313,430 | ) | | (809,468 | ) | | (901,425 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | 27,329 | | | 671,572 | | | (562,403 | ) | | (497,685 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 43 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | International Equity Fund | | Mid-Cap Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 3,302,476 | | $ | 7,281,046 | | $ | (71,486 | ) | $ | (136,947 | ) |
Net realized gains (losses) from investment and foreign currency transactions | | | 17,845,317 | | | 29,592,826 | | | 1,388,759 | | | 3,529,981 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (62,897,453 | ) | | 37,623,613 | | | (4,679,551 | ) | | 4,694,868 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (41,749,660 | ) | | 74,497,485 | | | (3,362,278 | ) | | 8,087,902 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class I Shares | | | (5,964,290 | ) | | (7,179,951 | ) | | — | | | — | |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | (598,216 | ) | | (258,695 | ) |
Class B Shares | | | — | | | — | | | (737,487 | ) | | (522,684 | ) |
Class C Shares | | | — | | | — | | | (9,380 | ) | | (6,914 | ) |
Class I Shares | | | (28,980,345 | ) | | (24,089,605 | ) | | (2,185,201 | ) | | (1,159,580 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (34,944,635 | ) | | (31,269,556 | ) | | (3,530,284 | ) | | (1,947,873 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 9,388,419 | | | 58,740,573 | | | 704,930 | | | (942,082 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (67,305,876 | ) | | 101,968,502 | | | (6,187,632 | ) | | 5,197,947 | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 385,717,107 | | | 283,748,605 | | | 32,931,699 | | | 27,733,752 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 318,411,231 | | $ | 385,717,107 | | $ | 26,744,067 | | $ | 32,931,699 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 2,525,389 | | $ | 5,187,203 | | $ | (71,486 | ) | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
44 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
| | | | | | | | | | | | | |
| | International Equity Fund | | Mid-Cap Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | — | | $ | — | | $ | 1,174,077 | | $ | 3,918,143 | |
Dividends reinvested | | | — | | | — | | | 592,760 | | | 256,489 | |
Value of shares redeemed | | | — | | | — | | | (1,360,161 | ) | | (2,634,591 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | — | | | — | | | 406,676 | | | 1,540,041 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 97,740 | | | 235,774 | |
Dividends reinvested | | | — | | | — | | | 721,029 | | | 514,297 | |
Value of shares redeemed | | | — | | | — | | | (1,216,446 | ) | | (3,072,777 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | — | | | — | | | (397,677 | ) | | (2,322,706 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | — | | | 11,496 | |
Dividends reinvested | | | — | | | — | | | 9,380 | | | 6,914 | |
Value of shares redeemed | | | — | | | — | | | (944 | ) | | (49,388 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | — | | | — | | | 8,436 | | | (30,978 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 23,554,365 | | | 84,946,485 | | | 1,492,450 | | | 5,100,905 | |
Dividends reinvested | | | 26,918,243 | | | 22,576,471 | | | 1,405,125 | | | 581,066 | |
Value of shares redeemed | | | (41,084,189 | ) | | (48,782,383 | ) | | (2,210,080 | ) | | (5,810,410 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | 9,388,419 | | | 58,740,573 | | | 687,495 | | | (128,439 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 9,388,419 | | $ | 58,740,573 | | $ | 704,930 | | $ | (942,082 | ) |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 132,741 | | | 421,403 | |
Reinvested | | | — | | | — | | | 65,426 | | | 29,999 | |
Redeemed | | | — | | | — | | | (141,931 | ) | | (264,389 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | — | | | — | | | 56,236 | | | 187,013 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 12,387 | | | 27,574 | |
Reinvested | | | — | | | — | | | 86,351 | | | 64,127 | |
Redeemed | | | — | | | — | | | (152,577 | ) | | (354,120 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | — | | | — | | | (53,839 | ) | | (262,419 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | — | | | 1,231 | |
Reinvested | | | — | | | — | | | 1,113 | | | 855 | |
Redeemed | | | — | | | — | | | (99 | ) | | (5,550 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | — | | | — | | | 1,014 | | | (3,464 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | 1,203,752 | | | 3,750,486 | | | 168,928 | | | 522,495 | |
Reinvested | | | 1,358,821 | | | 1,070,482 | | | 151,578 | | | 66,712 | |
Redeemed | | | (2,055,706 | ) | | (2,166,669 | ) | | (234,026 | ) | | (600,816 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | 506,867 | | | 2,654,299 | | | 86,480 | | | (11,609 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 45 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
| | | | | | | | | | | | | |
| | Opportunity Fund | | Opportunity Fund (Advisor) | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (113,681 | ) | $ | (302,009 | ) | $ | (417,404 | ) | $ | (1,033,815 | ) |
Net realized gains (losses) from investment and foreign currency transactions | | | 2,271,366 | | | 6,380,550 | | | 15,667,251 | | | 46,538,426 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (2,867,229 | ) | | (180,853 | ) | | (20,258,246 | ) | | 1,172,860 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (709,544 | ) | | 5,897,688 | | | (5,008,399 | ) | | 46,677,471 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (4,275,970 | ) | | (2,977,887 | ) | | — | | | — | |
Class B Shares | | | (1,656,407 | ) | | (619,431 | ) | | — | | | — | |
Class C Shares | | | (112,933 | ) | | (38,717 | ) | | — | | | — | |
Class I Shares | | | — | | | — | | | (45,200,235 | ) | | (29,938,816 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (6,045,310 | ) | | (3,636,035 | ) | | (45,200,235 | ) | | (29,938,816 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 3,413,338 | | | (11,472,973 | ) | | 25,848,113 | | | (32,269,549 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (3,341,516 | ) | | (9,211,320 | ) | | (24,360,521 | ) | | (15,530,894 | ) |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 20,318,759 | | | 29,530,079 | | | 176,592,878 | | | 192,123,772 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 16,977,243 | | $ | 20,318,759 | | $ | 152,232,357 | | $ | 176,592,878 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (113,681 | ) | $ | — | | $ | (417,404 | ) | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
46 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
| | | | | | | | | | | | | |
| | Opportunity Fund | | Opportunity Fund (Advisor) | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,228,312 | | $ | 1,869,751 | | $ | — | | $ | — | |
Dividends reinvested | | | 4,182,326 | | | 2,944,516 | | | — | | | — | |
Value of shares redeemed | | | (2,846,515 | ) | | (15,806,644 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 2,564,123 | | | (10,992,377 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 95,655 | | | 187,082 | | | — | | | — | |
Dividends reinvested | | | 1,634,480 | | | 612,160 | | | — | | | — | |
Value of shares redeemed | | | (986,801 | ) | | (1,272,389 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 743,334 | | | (473,147 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Dividends reinvested | | | 111,644 | | | 38,284 | | | — | | | — | |
Value of shares redeemed | | | (5,763 | ) | | (45,733 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 105,881 | | | (7,449 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 8,607,545 | | | 43,767,538 | |
Dividends reinvested | | | — | | | — | | | 33,936,218 | | | 12,322,958 | |
Value of shares redeemed | | | — | | | — | | | (16,695,650 | ) | | (88,360,045 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | — | | | — | | | 25,848,113 | | | (32,269,549 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 3,413,338 | | $ | (11,472,973 | ) | $ | 25,848,113 | | $ | (32,269,549 | ) |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 113,626 | | | 131,660 | | | — | | | — | |
Reinvested | | | 393,076 | | | 228,434 | | | — | | | — | |
Redeemed | | | (224,675 | ) | | (1,154,412 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | 282,027 | | | (794,318 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 9,462 | | | 14,236 | | | — | | | — | |
Reinvested | | | 177,468 | | | 51,790 | | | — | | | — | |
Redeemed | | | (106,367 | ) | | (96,076 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 80,563 | | | (30,050 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Reinvested | | | 11,915 | | | 3,204 | | | — | | | — | |
Redeemed | | | (539 | ) | | (3,443 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 11,376 | | | (239 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 653,042 | | | 2,507,207 | |
Reinvested | | | — | | | — | | | 2,551,595 | | | 822,079 | |
Redeemed | | | — | | | — | | | (1,184,331 | ) | | (5,122,696 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | — | | | — | | | 2,020,306 | | | (1,793,410 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 47 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Overseas Equity Fund | | Value Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 76,254 | | $ | 218,504 | | $ | 255,008 | | $ | 507,210 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 2,434,573 | | | 3,031,889 | | | 702,973 | | | 4,408,682 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (4,768,662 | ) | | 1,272,896 | | | (7,081,129 | ) | | 12,266 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (2,257,835 | ) | | 4,523,289 | | | (6,123,148 | ) | | 4,928,158 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (105,065 | ) | | (474,482 | ) | | (106,407 | ) | | (213,752 | ) |
Class B Shares | | | (4,715 | ) | | (48,615 | ) | | (1,460 | ) | | (1,937 | ) |
Class C Shares | | | (123 | ) | | (2,106 | ) | | (42 | ) | | (113 | ) |
Class I Shares | | | — | | | — | | | (154,878 | ) | | (240,365 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (2,297,440 | ) | | (2,532,363 | ) | | (2,036,989 | ) | | (2,315,837 | ) |
Class B Shares | | | (617,609 | ) | | (377,205 | ) | | (144,385 | ) | | (187,844 | ) |
Class C Shares | | | (24,923 | ) | | (18,983 | ) | | (10,272 | ) | | (14,732 | ) |
Class I Shares | | | — | | | — | | | (2,265,906 | ) | | (1,767,244 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (3,049,875 | ) | | (3,453,754 | ) | | (4,720,339 | ) | | (4,741,824 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (306,949 | ) | | (7,305,261 | ) | | 957,207 | | | 12,809,994 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (5,614,659 | ) | | (6,235,726 | ) | | (9,886,280 | ) | | 12,996,328 | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 19,922,763 | | | 26,158,489 | | | 57,815,315 | | | 44,818,987 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 14,308,104 | | $ | 19,922,763 | | $ | 47,929,035 | | $ | 57,815,315 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 45,460 | | $ | 79,109 | | $ | 123,798 | | $ | 131,577 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
48 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMIY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Overseas Equity Fund | | Value Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 576,095 | | $ | 1,927,533 | | $ | 652,243 | | $ | 6,834,608 | |
Dividends reinvested | | | 2,383,150 | | | 2,979,338 | | | 2,132,056 | | | 2,504,967 | |
Value of shares redeemed | | | (3,516,558 | ) | | (12,347,048 | ) | | (3,879,083 | ) | | (6,945,162 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (557,313 | ) | | (7,440,177 | ) | | (1,094,784 | ) | | 2,394,413 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 109,672 | | | 299,816 | | | 66,633 | | | 81,743 | |
Dividends reinvested | | | 599,255 | | | 417,884 | | | 145,046 | | | 185,697 | |
Value of shares redeemed | | | (483,573 | ) | | (551,790 | ) | | (235,344 | ) | | (410,699 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 225,354 | | | 165,910 | | | (23,665 | ) | | (143,259 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 3,001 | | | 28,000 | | | 50 | | | — | |
Dividends reinvested | | | 25,046 | | | 20,910 | | | 10,314 | | | 14,746 | |
Value of shares redeemed | | | (3,037 | ) | | (79,904 | ) | | (11,826 | ) | | (42,494 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 25,010 | | | (30,994 | ) | | (1,462 | ) | | (27,748 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 2,727,901 | | | 13,481,595 | |
Dividends reinvested | | | — | | | — | | | 2,320,088 | | | 1,920,064 | |
Value of shares redeemed | | | — | | | — | | | (2,970,871 | ) | | (4,815,071 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | — | | | — | | | 2,077,118 | | | 10,586,588 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (306,949 | ) | $ | (7,305,261 | ) | $ | 957,207 | | $ | 12,809,994 | |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 37,947 | | | 102,880 | | | 46,585 | | | 433,376 | |
Reinvested | | | 162,229 | | | 170,248 | | | 150,357 | | | 160,308 | |
Redeemed | | | (215,305 | ) | | (695,566 | ) | | (275,606 | ) | | (424,086 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | (15,129 | ) | | (422,438 | ) | | (78,664 | ) | | 169,598 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 7,771 | | | 16,784 | | | 4,996 | | | 5,175 | |
Reinvested | | | 43,236 | | | 25,023 | | | 10,704 | | | 12,417 | |
Redeemed | | | (34,796 | ) | | (31,048 | ) | | (18,196 | ) | | (26,217 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 16,211 | | | 10,759 | | | (2,496 | ) | | (8,625 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 165 | | | 1,618 | | | 4 | | | — | |
Reinvested | | | 1,749 | | | 1,221 | | | 755 | | | 979 | |
Redeemed | | | (237 | ) | | (4,376 | ) | | (935 | ) | | (2,761 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 1,677 | | | (1,537 | ) | | (176 | ) | | (1,782 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 196,797 | | | 831,134 | |
Reinvested | | | — | | | — | | | 163,964 | | | 122,918 | |
Redeemed | | | — | | | — | | | (216,544 | ) | | (297,127 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | — | | | — | | | 144,217 | | | 656,925 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 49 |
|
HSBC INVESTOR ADVISOR FUNDS TRUST—CORE PLUS FIXED INCOME FUND (ADVISOR) |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
| | | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.63 | | | | | 0.41 | | | | | 0.19 | | | | | 0.60 | | | | | (0.50 | ) | | | | — | | | | | (0.50 | ) | |
Year Ended October 31, 2004 | | | | 10.73 | | | | | 0.45 | | | | | 0.12 | | | | | 0.57 | | | | | (0.45 | ) | | | | — | | | | | (0.45 | ) | |
Year Ended October 31, 2005 | | | | 10.85 | | | | | 0.44 | | | | | (0.27 | ) | | | | 0.17 | | | | | (0.47 | ) | | | | — | | | | | (0.47 | ) | |
Year Ended October 31, 2006 | | | | 10.55 | | | | | 0.53 | | | | | 0.02 | | | | | 0.55 | | | | | (0.51 | ) | | | | (0.46 | ) | | | | (0.97 | ) | |
Year Ended October 31, 2007 | | | | 10.13 | | | | | 0.54 | | | | | 0.17 | | | | | 0.71 | | | | | (0.53 | ) | | | | — | | | | | (0.53 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.31 | | | | | 0.25 | | | | | (0.33 | ) | | | | (0.08 | ) | | | | (0.26 | ) | | | | (0.08 | ) | | | | (0.34 | ) | |
|
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data | |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.73 | | | 5.71 | % | | | $ | 110,968 | | | 0.56 | % | | 4.30 | % | | 0.56 | % | | 70.91 | % | |
Year Ended October 31, 2004 | | | | 10.85 | | | 5.46 | % | | | | 109,518 | | | 0.64 | % | | 4.20 | % | | 0.64 | % | | 34.88 | % | |
Year Ended October 31, 2005 | | | | 10.55 | | | 1.55 | %(f) | | | | 89,743 | | | 0.52 | %(f) | | 4.15 | %(f) | | 0.52 | %(f) | | 176.60 | % | |
Year Ended October 31, 2006 | | | | 10.13 | | | 5.56 | % | | | | 80,976 | | | 0.56 | % | | 5.05 | % | | 0.80 | % | | 273.91 | % | |
Year Ended October 31, 2007 | | | | 10.31 | | | 7.20 | %(g)(h) | | | | 81,392 | | | 0.35 | %(g) | | 5.24 | %(g) | | 0.72 | % | | 252.26 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.89 | | | (0.81 | )%(i) | | | | 69,723 | | | 0.45 | % | | 5.08 | % | | 0.71 | % | | 61.96 | % | |
|
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Core Plus Fixed Income Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.11% for the Class I Shares. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total return were 0.10% for the Class I Shares. |
| |
(h) | During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to total return was 1.80%. |
| |
(i) | During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to total return was 0.38%. |
| | |
50 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FUNDS—CORE PLUS FIXED INCOME FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | |
| | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.38 | | | 0.40 | | | 0.13 | | | 0.53 | | | (0.43 | ) | | — | | | (0.43 | ) | |
Year Ended October 31, 2004 | | | | 10.48 | | | 0.40 | | | 0.12 | | | 0.52 | | | (0.40 | ) | | — | | | (0.40 | ) | |
Year Ended October 31, 2005 | | | | 10.60 | | | 0.39 | | | (0.27 | ) | | 0.12 | | | (0.42 | ) | | — | | | (0.42 | ) | |
Year Ended October 31, 2006 | | | | 10.30 | | | 0.49 | * | | 0.05 | | | 0.54 | | | (0.49 | ) | | (0.05 | ) | | (0.54 | ) | |
Year Ended October 31, 2007 | | | | 10.30 | | | 0.51 | * | | 0.19 | | | 0.70 | | | (0.52 | ) | | — | | | (0.52 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.48 | | | 0.25 | * | | (0.36 | ) | | (0.11 | ) | | (0.25 | ) | | — | | | (0.25 | ) | |
|
CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.39 | | | 0.32 | | | 0.13 | | | 0.45 | | | (0.35 | ) | | — | | | (0.35 | ) | |
Year Ended October 31, 2004 | | | | 10.49 | | | 0.32 | | | 0.11 | | | 0.43 | | | (0.32 | ) | | — | | | (0.32 | ) | |
Year Ended October 31, 2005 | | | | 10.60 | | | 0.32 | | | (0.27 | ) | | 0.05 | | | (0.34 | ) | | — | | | (0.34 | ) | |
Year Ended October 31, 2006 | | | | 10.31 | | | 0.41 | * | | 0.06 | | | 0.47 | | | (0.42 | ) | | (0.05 | ) | | (0.47 | ) | |
Year Ended October 31, 2007 | | | | 10.31 | | | 0.44 | * | | 0.18 | | | 0.62 | | | (0.44 | ) | | — | | | (0.44 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.49 | | | 0.21 | * | | (0.36 | ) | | (0.15 | ) | | (0.21 | ) | | — | | | (0.21 | ) | |
|
CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.38 | | | 0.32 | | | 0.13 | | | 0.45 | | | (0.35 | ) | | — | | | (0.35 | ) | |
Year Ended October 31, 2004 | | | | 10.48 | | | 0.32 | | | 0.11 | | | 0.43 | | | (0.32 | ) | | — | | | (0.32 | ) | |
Year Ended October 31, 2005 | | | | 10.59 | | | 0.32 | | | (0.27 | ) | | 0.05 | | | (0.34 | ) | | — | | | (0.34 | ) | |
Year Ended October 31, 2006 | | | | 10.30 | | | 0.41 | * | | 0.06 | | | 0.47 | | | (0.42 | ) | | (0.05 | ) | | (0.47 | ) | |
Year Ended October 31, 2007 | | | | 10.30 | | | 0.44 | * | | 0.16 | | | 0.60 | | | (0.44 | ) | | — | | | (0.44 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.46 | | | 0.20 | * | | (0.35 | ) | | (0.15 | ) | | (0.21 | ) | | — | | | (0.21 | ) | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.48 | | | 5.17 | % | | | $ | 14,143 | | | 1.10 | % | | 3.76 | % | | 1.21 | % | | 70.91 | % |
Year Ended October 31, 2004 | | | | 10.60 | | | 5.07 | % | | | | 17,248 | | | 1.04 | % | | 3.78 | % | | 1.26 | % | | 34.88 | % |
Year Ended October 31, 2005 | | | | 10.30 | | | 1.16 | %(f) | | | | 17,646 | | | 0.84 | %(f) | | 3.82 | %(f) | | 1.15 | %(f) | | 176.60 | % |
Year Ended October 31, 2006 | | | | 10.30 | | | 5.45 | % | | | | 12,248 | | | 0.79 | % | | 4.82 | % | | 1.43 | % | | 273.91 | % |
Year Ended October 31, 2007 | | | | 10.48 | | | 6.90 | %(g)(h) | | | | 13,592 | | | 0.67 | %(g) | | 4.93 | %(g) | | 1.41 | % | | 252.26 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 10.12 | | | (1.04 | )%(i) | | | | 12,458 | | | 0.70 | % | | 4.84 | % | | 1.39 | % | | 61.96 | % |
|
CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.49 | | | 4.38 | % | | | $ | 7,430 | | | 1.85 | % | | 3.01 | % | | 1.96 | % | | 70.91 | % |
Year Ended October 31, 2004 | | | | 10.60 | | | 4.19 | % | | | | 7,017 | | | 1.79 | % | | 3.05 | % | | 2.01 | % | | 34.88 | % |
Year Ended October 31, 2005 | | | | 10.31 | | | 0.50 | %(f) | | | | 6,168 | | | 1.59 | %(f) | | 3.08 | %(f) | | 1.90 | %(f) | | 176.90 | % |
Year Ended October 31, 2006 | | | | 10.31 | | | 4.67 | % | | | | 4,267 | | | 1.54 | % | | 4.06 | % | | 2.19 | % | | 273.91 | % |
Year Ended October 31, 2007 | | | | 10.49 | | | 6.10 | %(g)(h) | | | | 3,792 | | | 1.42 | %(g) | | 4.18 | %(g) | | 2.12 | % | | 252.26 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 10.13 | | | (1.41 | )%(i) | | | | 2,888 | | | 1.45 | % | | 4.09 | % | | 2.13 | % | | 61.96 | % |
|
CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.48 | | | 4.39 | % | | | $ | 606 | | | 1.85 | % | | 3.06 | % | | 1.97 | % | | 70.91 | % |
Year Ended October 31, 2004 | | | | 10.59 | | | 4.20 | % | | | | 377 | | | 1.80 | % | | 3.07 | % | | 2.02 | % | | 34.88 | % |
Year Ended October 31, 2005 | | | | 10.30 | | | 0.51 | %(f) | | | | 285 | | | 1.58 | %(f) | | 3.14 | %(f) | | 1.89 | %(f) | | 176.90 | % |
Year Ended October 31, 2006 | | | | 10.30 | | | 4.67 | % | | | | 236 | | | 1.54 | % | | 4.07 | % | | 2.19 | % | | 273.91 | % |
Year Ended October 31, 2007 | | | | 10.46 | | | 5.92 | %(g)(h) | | | | 30 | | | 1.43 | %(g) | | 4.24 | %(g) | | 2.19 | % | | 252.26 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 10.10 | | | (1.41 | )%(i) | | | | 104 | | | 1.45 | % | | 3.99 | % | | 2.13 | % | | 61.96 | % |
|
| |
* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Core Plus Fixed Income Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.11%, 0.11% and 0.12% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.03%, 0.03%, and 0.02% for Class A Shares, Class B Shares, and Class C Shares, respectively. |
| |
(h) | During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 1.77%, 1.76% and 1.77% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.38%, 0.38% and 0.38% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 51 |
|
HSBC INVESTOR FUNDS—HIGH YIELD FIXED INCOME FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
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| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(f) | | | $ | 10.00 | | | 0.69 | | | 0.12 | | | 0.81 | | | (0.68 | ) | | — | | | (0.68 | ) | |
Year Ended October 31, 2007 | | | | 10.13 | | | 0.79 | * | | (0.09 | ) | | 0.70 | | | (0.79 | ) | | (0.03 | ) | | (0.82 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.01 | | | 0.39 | * | | (0.57 | ) | | (0.18 | ) | | (0.39 | ) | | (0.10 | ) | | (0.49 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(g) | | | $ | 10.00 | | | 0.62 | | | 0.13 | | | 0.75 | | | (0.61 | ) | | — | | | (0.61 | ) | |
Year Ended October 31, 2007 | | | | 10.14 | | | 0.71 | * | | (0.09 | ) | | 0.62 | | | (0.72 | ) | | (0.03 | ) | | (0.75 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.01 | | | 0.35 | * | | (0.55 | ) | | (0.20 | ) | | (0.36 | ) | | (0.10 | ) | | (0.46 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(h) | �� | | $ | 10.01 | | | 0.58 | | | 0.15 | | | 0.73 | | | (0.58 | ) | | — | | | (0.58 | ) | |
Year Ended October 31, 2007 | | | | 10.16 | | | 0.71 | * | | (0.09 | ) | | 0.62 | | | (0.72 | ) | | (0.03 | ) | | (0.75 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.03 | | | 0.35 | * | | (0.56 | ) | | (0.21 | ) | | (0.36 | ) | | (0.10 | ) | | (0.46 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(i) | | | $ | 10.00 | | | 0.71 | | | 0.14 | | | 0.85 | | | (0.71 | ) | | — | | | (0.71 | ) | |
Year Ended October 31, 2007 | | | | 10.14 | | | 0.81 | * | | (0.09 | ) | | 0.72 | | | (0.82 | ) | | (0.03 | ) | | (0.85 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.01 | | | 0.40 | * | | (0.57 | ) | | (0.17 | ) | | (0.40 | ) | | (0.10 | ) | | (0.50 | ) | |
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| | | | | | | | Ratios/Supplementary Data | |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(f) | | | $ | 10.13 | | | 8.38 | % | | | $ | 4,742 | | | 0.80 | % | | 7.27 | % | | 3.53 | % | | 13.61 | % | |
Year Ended October 31, 2007 | | | | 10.01 | | | 7.13 | % | | | | 3,706 | | | 0.80 | % | | 7.71 | % | | 2.97 | % | | 30.77 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.34 | | | (1.65 | )% | | | | 3,459 | | | 0.80 | % | | 8.36 | % | | 2.66 | % | | 14.28 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(g) | | | $ | 10.14 | | | 7.68 | % | | | $ | 2,106 | | | 1.55 | % | | 6.65 | % | | 4.26 | % | | 13.61 | % | |
Year Ended October 31, 2007 | | | | 10.01 | | | 6.22 | % | | | | 2,447 | | | 1.55 | % | | 6.95 | % | | 3.69 | % | | 30.77 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.35 | | | (1.92 | )% | | | | 2,328 | | | 1.55 | % | | 7.61 | % | | 3.41 | % | | 14.28 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(h) | | | $ | 10.16 | | | 7.42 | % | | | $ | 241 | | | 1.55 | % | | 6.65 | % | | 4.29 | % | | 13.61 | % | |
Year Ended October 31, 2007 | | | | 10.03 | | | 6.20 | % | | | | 217 | | | 1.55 | % | | 6.90 | % | | 3.69 | % | | 30.77 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.36 | | | (2.03 | )% | | | | 417 | | | 1.55 | % | | 7.49 | % | | 3.41 | % | | 14.28 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006(i) | | | $ | 10.14 | | | 8.73 | % | | | $ | 2,568 | | | 0.55 | % | | 7.53 | % | | 3.29 | % | | 13.61 | % | |
Year Ended October 31, 2007 | | | | 10.01 | | | 7.29 | % | | | | 2,642 | | | 0.55 | % | | 7.95 | % | | 2.68 | % | | 30.77 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.34 | | | (1.53 | )% | | | | 2,813 | | | 0.55 | % | | 8.60 | % | | 2.41 | % | | 14.28 | % | |
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* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor High Yield Fixed Income Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets. |
| |
(f) | Class A Shares commenced operations on November 18, 2005. |
| |
(g) | Class B Shares commenced operations on November 21, 2005. |
| |
(h) | Class C Shares commenced operations on December 14, 2005. |
| |
(i) | Class I Shares commenced operations on November 18, 2005. |
| | |
52 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FUNDS—INTERMEDIATE DURATION FIXED INCOME FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
| | | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.43 | | | 0.33 | | | 0.08 | | | 0.41 | | | (0.37 | ) | | — | | | (0.37 | ) | |
Year Ended October 31, 2004 | | | | 10.47 | | | 0.32 | * | | 0.06 | | | 0.38 | | | (0.33 | ) | | (0.46 | ) | | (0.79 | ) | |
Year Ended October 31, 2005 | | | | 10.06 | | | 0.33 | | | (0.29 | ) | | 0.04 | | | (0.37 | ) | | (0.06 | ) | | (0.43 | ) | |
Year Ended October 31, 2006 | | | | 9.67 | | | 0.45 | | | 0.05 | | | 0.50 | | | (0.45 | ) | | — | | | (0.45 | ) | |
Year Ended October 31, 2007 | | | | 9.72 | | | 0.50 | * | | 0.33 | | | 0.83 | | | (0.50 | ) | | — | | | (0.50 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.05 | | | 0.23 | * | | (0.37 | ) | | (0.14 | ) | | (0.24 | ) | | (0.04 | ) | | (0.28 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.45 | | | 0.25 | | | 0.08 | | | 0.33 | | | (0.29 | ) | | — | | | (0.29 | ) | |
Year Ended October 31, 2004 | | | | 10.49 | | | 0.23 | | | 0.08 | | | 0.31 | | | (0.26 | ) | | (0.46 | ) | | (0.72 | ) | |
Year Ended October 31, 2005 | | | | 10.08 | | | 0.25 | | | (0.29 | ) | | (0.04 | ) | | (0.29 | ) | | (0.06 | ) | | (0.35 | ) | |
Year Ended October 31, 2006 | | | | 9.69 | | | 0.38 | | | 0.04 | | | 0.42 | | | (0.38 | ) | | — | | | (0.38 | ) | |
Year Ended October 31, 2007 | | | | 9.73 | | | 0.43 | * | | 0.33 | | | 0.76 | | | (0.42 | ) | | — | | | (0.42 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.07 | | | 0.20 | * | | (0.38 | ) | | (0.18 | ) | | (0.20 | ) | | (0.04 | ) | | (0.24 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.44 | | | 0.25 | | | 0.09 | | | 0.34 | | | (0.29 | ) | | — | | | (0.29 | ) | |
Year Ended October 31, 2004 | | | | 10.49 | | | 0.22 | * | | 0.08 | | | 0.30 | | | (0.26 | ) | | (0.46 | ) | | (0.72 | ) | |
Year Ended October 31, 2005 | | | | 10.07 | | | 0.25 | | | (0.29 | ) | | (0.04 | ) | | (0.29 | ) | | (0.06 | ) | | (0.35 | ) | |
Year Ended October 31, 2006 | | | | 9.68 | | | 0.38 | | | 0.05 | | | 0.43 | | | (0.38 | ) | | — | | | (0.38 | ) | |
Year Ended October 31, 2007 | | | | 9.73 | | | 0.43 | * | | 0.33 | | | 0.76 | | | (0.43 | ) | | — | | | (0.43 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.06 | | | 0.19 | * | | (0.36 | ) | | (0.17 | ) | | (0.20 | ) | | (0.04 | ) | | (0.24 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.45 | | | 0.33 | | | 0.10 | | | 0.43 | | | (0.40 | ) | | — | | | (0.40 | ) | |
Year Ended October 31, 2004 | | | | 10.48 | | | 0.33 | | | 0.09 | | | 0.42 | | | (0.36 | ) | | (0.46 | ) | | (0.82 | ) | |
Year Ended October 31, 2005 | | | | 10.08 | | | 0.35 | | | (0.30 | ) | | 0.05 | | | (0.39 | ) | | (0.06 | ) | | (0.45 | ) | |
Year Ended October 31, 2006 | | | | 9.68 | | | 0.47 | | | 0.05 | | | 0.52 | | | (0.47 | ) | | — | | | (0.47 | ) | |
Year Ended October 31, 2007 | | | | 9.73 | | | 0.53 | * | | 0.32 | | | 0.85 | | | (0.52 | ) | | — | | | (0.52 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.06 | | | 0.24 | * | | (0.36 | ) | | (0.12 | ) | | (0.25 | ) | | (0.04 | ) | | (0.29 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data | |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.47 | | | 3.97 | % | | | $ | 3,309 | | | 1.01 | % | | 2.99 | % | | 1.01 | % | | 98.42 | % | |
Year Ended October 31, 2004 | | | | 10.06 | | | 3.90 | % | | | | 1,558 | | | 1.10 | % | | 3.01 | % | | 1.21 | % | | 50.06 | % | |
Year Ended October 31, 2005 | | | | 9.67 | | | 0.31 | %(f) | | | | 1,055 | | | 1.01 | %(f) | | 3.37 | %(f) | | 1.10 | %(f) | | 107.26 | % | |
Year Ended October 31, 2006 | | | | 9.72 | | | 5.30 | % | | | | 976 | | | 0.80 | % | | 4.61 | % | | 1.65 | % | | 236.51 | % | |
Year Ended October 31, 2007 | | | | 10.05 | | | 8.67 | %(g)(h) | | | | 803 | | | 0.53 | %(g) | | 5.02 | %(g) | | 1.67 | % | | 219.76 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.63 | | | (1.49 | )%(i) | | | | 1,342 | | | 0.65 | % | | 4.63 | % | | 1.74 | % | | 52.13 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.49 | | | 3.19 | % | | | $ | 6,443 | | | 1.73 | % | | 2.30 | % | | 1.73 | % | | 98.42 | % | |
Year Ended October 31, 2004 | | | | 10.08 | | | 3.11 | % | | | | 6,321 | | | 1.85 | % | | 2.28 | % | | 1.96 | % | | 50.06 | % | |
Year Ended October 31, 2005 | | | | 9.69 | | | (0.44 | )%(f) | | | | 4,852 | | | 1.76 | %(f) | | 2.60 | %(f) | | 1.85 | %(f) | | 107.26 | % | |
Year Ended October 31, 2006 | | | | 9.73 | | | 4.40 | % | | | | 3,738 | | | 1.56 | % | | 3.84 | % | | 2.40 | % | | 236.51 | % | |
Year Ended October 31, 2007 | | | | 10.07 | | | 7.96 | %(g)(h) | | | | 2,982 | | | 1.28 | %(g) | | 4.26 | %(g) | | 2.41 | % | | 219.76 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.65 | | | (1.85 | )%(i) | | | | 2,050 | | | 1.40 | % | | 4.00 | % | | 2.49 | % | | 52.13 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.49 | | | 3.29 | % | | | $ | 2,544 | | | 1.73 | % | | 2.31 | % | | 1.73 | % | | 98.42 | % | |
Year Ended October 31, 2004 | | | | 10.07 | | | 3.03 | % | | | | 679 | | | 1.85 | % | | 2.25 | % | | 1.96 | % | | 50.06 | % | |
Year Ended October 31, 2005 | | | | 9.68 | | | (0.44 | )%(f) | | | | 527 | | | 1.77 | %(f) | | 2.60 | %(f) | | 1.86 | %(f) | | 107.26 | % | |
Year Ended October 31, 2006 | | | | 9.73 | | | 4.51 | % | | | | 503 | | | 1.55 | % | | 3.86 | % | | 2.40 | % | | 236.51 | % | |
Year Ended October 31, 2007 | | | | 10.06 | | | 7.86 | %(g)(h) | | | | 305 | | | 1.27 | %(g) | | 4.27 | %(g) | | 2.43 | % | | 219.76 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.65 | | | (1.75 | )%(i) | | | | 288 | | | 1.40 | % | | 3.95 | % | | 2.48 | % | | 52.13 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.48 | | | 4.12 | % | | | $ | 31,368 | | | 0.69 | % | | 3.62 | % | | 0.69 | % | | 98.42 | % | |
Year Ended October 31, 2004 | | | | 10.08 | | | 4.25 | % | | | | 31,217 | | | 0.85 | % | | 3.28 | % | | 0.96 | % | | 50.06 | % | |
Year Ended October 31, 2005 | | | | 9.68 | | | 0.45 | %(f) | | | | 24,744 | | | 0.76 | %(f) | | 3.60 | %(f) | | 0.85 | %(f) | | 107.26 | % | |
Year Ended October 31, 2006 | | | | 9.73 | | | 5.56 | % | | | | 13,000 | | | 0.58 | % | | 4.77 | % | | 1.38 | % | | 236.51 | % | |
Year Ended October 31, 2007 | | | | 10.06 | | | 8.93 | %(g)(h) | | | | 9,955 | | | 0.28 | %(g) | | 5.25 | %(g) | | 1.42 | % | | 219.76 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.65 | | | (1.26 | )%(i) | | | | 9,370 | | | 0.40 | % | | 4.95 | % | | 1.48 | % | | 52.13 | % | |
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* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Intermediate Duration Fixed Income Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.09%, 0.09%, 0.09% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.12%, 0.12%, 0.13%, and 0.12% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(h) | During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 3.75%, 3.74%, 3.74% and 3.75% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(i) | During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 1.05%, 1.05%, 1.05% and 1.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 53 |
|
HSBC INVESTOR FUNDS — NEW YORK TAX-FREE BOND FUND |
|
Financial Highlights |
|
Selected data for a share outstanding throughout the periods indicated. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Activities | | | Dividends | |
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| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.09 | | | | 0.38 | | | | 0.12 | | | | 0.50 | | | | (0.38 | ) | | | — | | | | (0.38 | ) | |
Year Ended October 31, 2004 | | | 11.21 | | | | 0.34 | | | | 0.17 | | | | 0.51 | | | | (0.34 | ) | | | (0.06 | ) | | | (0.40 | ) | |
Year Ended October 31, 2005 | | | 11.32 | | | | 0.34 | | | | (0.22 | ) | | | 0.12 | | | | (0.34 | ) | | | (0.02 | ) | | | (0.36 | ) | |
Year Ended October 31, 2006 | | | 11.08 | | | | 0.37 | | | | 0.12 | | | | 0.49 | | | | (0.37 | ) | | | (0.02 | ) | | | (0.39 | ) | |
Year Ended October 31, 2007 | | | 11.18 | | | | 0.39 | * | | | (0.14 | ) | | | 0.25 | | | | (0.38 | ) | | | — | | | | (0.38 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 11.05 | | | | 0.19 | * | | | (0.07 | ) | | | 0.12 | | | | (0.20 | ) | | | (0.01 | ) | | | (0.21 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.08 | | | | 0.30 | | | | 0.12 | | | | 0.42 | | | | (0.30 | ) | | | — | | | | (0.30 | ) | |
Year Ended October 31, 2004 | | | 11.20 | | | | 0.25 | | | | 0.17 | | | | 0.42 | | | | (0.25 | ) | | | (0.06 | ) | | | (0.31 | ) | |
Year Ended October 31, 2005 | | | 11.31 | | | | 0.25 | | | | (0.22 | ) | | | 0.03 | | | | (0.25 | ) | | | (0.02 | ) | | | (0.27 | ) | |
Year Ended October 31, 2006 | | | 11.07 | | | | 0.28 | | | | 0.12 | | | | 0.40 | | | | (0.28 | ) | | | (0.02 | ) | | | (0.30 | ) | |
Year Ended October 31, 2007 | | | 11.17 | | | | 0.30 | * | | | (0.13 | ) | | | 0.17 | | | | (0.30 | ) | | | — | | | | (0.30 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 11.04 | | | | 0.15 | * | | | (0.07 | ) | | | 0.08 | | | | (0.16 | ) | | | (0.01 | ) | | | (0.17 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.12 | | | | 0.30 | | | | 0.13 | | | | 0.43 | | | | (0.30 | ) | | | — | | | | (0.30 | ) | |
Year Ended October 31, 2004 | | | 11.25 | | | | 0.25 | | | | 0.16 | | | | 0.41 | | | | (0.25 | ) | | | (0.06 | ) | | | (0.31 | ) | |
Year Ended October 31, 2005 | | | 11.35 | | | | 0.25 | | | | (0.22 | ) | | | 0.03 | | | | (0.25 | ) | | | (0.02 | ) | | | (0.27 | ) | |
Year Ended October 31, 2006 | | | 11.11 | | | | 0.28 | | | | 0.12 | | | | 0.40 | | | | (0.28 | ) | | | (0.02 | ) | | | (0.30 | ) | |
Year Ended October 31, 2007 | | | 11.21 | | | | 0.31 | * | | | (0.14 | ) | | | 0.17 | | | | (0.30 | ) | | | — | | | | (0.30 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 11.08 | | | | 0.15 | * | | | (0.07 | ) | | | 0.08 | | | | (0.16 | ) | | | (0.01 | ) | | | (0.17 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.09 | | | | 0.41 | | | | 0.12 | | | | 0.53 | | | | (0.41 | ) | | | — | | | | (0.41 | ) | |
Year Ended October 31, 2004 | | | 11.21 | | | | 0.37 | | | | 0.17 | | | | 0.54 | | | | (0.37 | ) | | | (0.06 | ) | | | (0.43 | ) | |
Year Ended October 31, 2005 | | | 11.32 | | | | 0.37 | | | | (0.22 | ) | | | 0.15 | | | | (0.37 | ) | | | (0.02 | ) | | | (0.39 | ) | |
Year Ended October 31, 2006 | | | 11.08 | | | | 0.39 | | | | 0.12 | | | | 0.51 | | | | (0.39 | ) | | | (0.02 | ) | | | (0.41 | ) | |
Year Ended October 31, 2007 | | | 11.18 | | | | 0.41 | * | | | (0.13 | ) | | | 0.28 | | | | (0.41 | ) | | | — | | | | (0.41 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 11.05 | | | | 0.21 | * | | | (0.08 | ) | | | 0.13 | | | | (0.21 | ) | | | (0.01 | ) | | | (0.22 | ) | |
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| | | | | | | | | | Ratios/Supplementary Data | |
| | | | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | | Portfolio
Turnover
Rate(d) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.21 | | | | 4.57 | % | | $ | 22,326 | | | | 0.91 | % | | | 3.39 | % | | | 0.91 | % | | | 29.79 | % | |
Year Ended October 31, 2004 | | | 11.32 | | | | 4.57 | % | | | 32,889 | | | | 0.87 | % | | | 3.01 | % | | | 0.87 | % | | | 26.96 | % | |
Year Ended October 31, 2005 | | | 11.08 | | | | 1.03 | %(e) | | | 34,441 | | | | 0.88 | %(e) | | | 3.02 | %(e) | | | 0.89 | % | | | 13.87 | % | |
Year Ended October 31, 2006 | | | 11.18 | | | | 4.45 | % | | | 32,727 | | | | 0.93 | % | | | 3.30 | % | | | 0.93 | % | | | 12.69 | % | |
Year Ended October 31, 2007 | | | 11.05 | | | | 2.34 | %(f) | | | 32,305 | | | | 0.86 | %(f) | | | 3.50 | %(f) | | | 0.89 | % | | | 17.03 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 10.96 | | | | 1.11 | % | | | 30,920 | | | | 0.83 | % | | | 3.53 | % | | | 0.83 | % | | | — | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.20 | | | | 3.80 | % | | $ | 18,352 | | | | 1.66 | % | | | 2.64 | % | | | 1.66 | % | | | 29.79 | % | |
Year Ended October 31, 2004 | | | 11.31 | | | | 3.80 | % | | | 17,457 | | | | 1.62 | % | | | 2.27 | % | | | 1.62 | % | | | 26.96 | % | |
Year Ended October 31, 2005 | | | 11.07 | | | | 0.28 | %(e) | | | 16,258 | | | | 1.63 | %(e) | | | 2.27 | %(e) | | | 1.64 | % | | | 13.87 | % | |
Year Ended October 31, 2006 | | | 11.17 | | | | 3.67 | % | | | 13,735 | | | | 1.68 | % | | | 2.56 | % | | | 1.68 | % | | | 12.69 | % | |
Year Ended October 31, 2007 | | | 11.04 | | | | 1.58 | %(f) | | | 8,635 | | | | 1.61 | %(f) | | | 2.75 | %(f) | | | 1.64 | % | | | 17.03 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 10.95 | | | | 0.74 | % | | | 6,492 | | | | 1.59 | % | | | 2.79 | % | | | 1.59 | % | | | — | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.25 | | | | 3.87 | % | | $ | 3,252 | | | | 1.66 | % | | | 2.64 | % | | | 1.66 | % | | | 29.79 | % | |
Year Ended October 31, 2004 | | | 11.35 | | | | 3.69 | % | | | 2,340 | | | | 1.62 | % | | | 2.26 | % | | | 1.62 | % | | | 26.96 | % | |
Year Ended October 31, 2005 | | | 11.11 | | | | 0.28 | %(e) | | | 1,782 | | | | 1.63 | %(e) | | | 2.26 | %(e) | | | 1.64 | % | | | 13.87 | % | |
Year Ended October 31, 2006 | | | 11.21 | | | | 3.66 | % | | | 1,246 | | | | 1.68 | % | | | 2.55 | % | | | 1.68 | % | | | 12.69 | % | |
Year Ended October 31, 2007 | | | 11.08 | | | | 1.57 | %(f) | | | 807 | | | | 1.60 | %(f) | | | 2.75 | %(f) | | | 1.63 | % | | | 17.03 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 10.99 | | | | 0.73 | % | | | 537 | | | | 1.59 | % | | | 2.79 | % | | | 1.59 | % | | | — | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 11.21 | | | | 4.84 | % | | $ | 20,290 | | | | 0.67 | % | | | 3.67 | % | | | 0.67 | % | | | 29.79 | % | |
Year Ended October 31, 2004 | | | 11.32 | | | | 4.83 | % | | | 19,908 | | | | 0.62 | % | | | 3.27 | % | | | 0.62 | % | | | 26.96 | % | |
Year Ended October 31, 2005 | | | 11.08 | | | | 1.28 | %(e) | | | 16,981 | | | | 0.63 | %(e) | | | 3.27 | %(e) | | | 0.64 | % | | | 13.87 | % | |
Year Ended October 31, 2006 | | | 11.18 | | | | 4.71 | % | | | 13,746 | | | | 0.68 | % | | | 3.55 | % | | | 0.68 | % | | | 12.69 | % | |
Year Ended October 31, 2007 | | | 11.05 | | | | 2.59 | %(f) | | | 19,282 | | | | 0.60 | %(f) | | | 3.74 | %(f) | | | 0.63 | % | | | 17.03 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 10.96 | | | | 1.24 | % | | | 21,991 | | | | 0.58 | % | | | 3.77 | % | | | 0.58 | % | | | — | | |
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* | Calculated based on average shares outstanding. |
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(a) | Not Annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
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(b) | Annualized for periods less than one year. |
| |
(c) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(d) | Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued. |
| |
(e) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.01%, 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(f) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.03%, 0.04%, 0.03% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
54 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FUNDS — GROWTH FUND |
|
Financial Highlights |
|
Selected data for a share outstanding throughout the periods indicated. (a) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Activities | | Dividends | |
| | | | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.68 | | | | (0.02 | ) | | | (0.11 | ) | | | (0.13 | ) | | | — | | | | — | | | | — | | |
Year Ended October 31, 2005 | | | 12.55 | | | | 0.03 | | | | 1.59 | | | | 1.62 | | | | (0.05 | ) | | | — | | | | (0.05 | ) | |
Year Ended October 31, 2006 | | | 14.12 | | | | (0.02 | )* | | | 0.99 | | | | 0.97 | | | | — | | | | (0.23 | ) | | | (0.23 | ) | |
Year Ended October 31, 2007 | | | 14.86 | | | | — | *(i) | | | 4.23 | | | | 4.23 | | | | (0.01 | ) | | | (1.13 | ) | | | (1.14 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 17.95 | | | | (0.02 | )* | | | (1.49 | ) | | | (1.51 | ) | | | — | | | | (0.84 | ) | | | (0.84 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.28 | | | | (0.07 | ) | | | (0.10 | ) | | | (0.17 | ) | | | — | | | | — | | | | — | | |
Year Ended October 31, 2005 | | | 12.11 | | | | (0.07 | ) | | | 1.53 | | | | 1.46 | | | | — | | | | — | | | | — | | |
Year Ended October 31, 2006 | | | 13.57 | | | | (0.12 | )* | | | 0.95 | | | | 0.83 | | | | — | | | | (0.23 | ) | | | (0.23 | ) | |
Year Ended October 31, 2007 | | | 14.17 | | | | (0.11 | )* | | | 3.99 | | | | 3.88 | | | | — | | | | (1.13 | ) | | | (1.13 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 16.92 | | | | (0.07 | )* | | | (1.41 | ) | | | (1.48 | ) | | | — | | | | (0.84 | ) | | | (0.84 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2004(f) | | $ | 12.35 | | | | (0.06 | ) | | | (0.12 | ) | | | (0.18 | ) | | | — | | | | — | | | | — | | |
Year Ended October 31, 2005 | | | 12.17 | | | | (0.07 | ) | | | 1.54 | | | | 1.47 | | | | — | | | | — | | | | — | | |
Year Ended October 31, 2006 | | | 13.64 | | | | (0.13 | )* | | | 0.99 | | | | 0.83 | | | | — | | | | (0.23 | ) | | | (0.23 | ) | |
Year Ended October 31, 2007 | | | 14.24 | | | | (0.11 | )* | | | 4.02 | | | | 3.91 | | | | — | | | | (1.13 | ) | | | (1.13 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 17.02 | | | | (0.07 | )* | | | (1.42 | ) | | | (1.49 | ) | | | — | | | | (0.84 | ) | | | (0.84 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.67 | | | | (0.01 | ) | | | (0.11 | ) | | | (0.12 | ) | | | — | | | | — | | | | — | | |
Year Ended October 31, 2005 | | | 12.55 | | | | 0.06 | | | | 1.59 | | | | 1.65 | | | | (0.08 | ) | | | — | | | | (0.08 | ) | |
Year Ended October 31, 2006 | | | 14.12 | | | | 0.02 | * | | | 0.99 | | | | 1.01 | | | | — | | | | (0.23 | ) | | | (0.23 | ) | |
Year Ended October 31, 2007 | | | 14.90 | | | | 0.03 | * | | | 4.24 | | | | 4.27 | | | | (0.02 | ) | | | (1.13 | ) | | | (1.15 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 18.02 | | | | — | *(i) | | | (1.50 | ) | | | (1.50 | ) | | | — | | | | (0.84 | ) | | | (0.84 | ) | |
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| | | | | | | | | | Ratios/Supplementary Data | |
| | | | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.55 | | | | (1.03 | )% | | $ | 17,372 | | | | 1.20 | % | | | (0.42 | )% | | | 1.31 | % | | | 53.08 | % | |
Year Ended October 31, 2005 | | | 14.12 | | | | 12.91 | %(g) | | | 21,866 | | | | 1.15 | %(g) | | | 0.19 | %(g) | | | 1.35 | %(g) | | | 79.54 | % | |
Year Ended October 31, 2006 | | | 14.86 | | | | 6.92 | % | | | 21,985 | | | | 1.20 | % | | | (0.14 | )% | | | 1.44 | % | | | 75.06 | % | |
Year Ended October 31, 2007 | | | 17.95 | | | | 30.45 | %(h) | | | 30,858 | | | | 1.11 | %(h) | | | (0.03 | )%(h) | | | 1.22 | % | | | 57.04 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 15.60 | | | | (8.65 | )% | | | 24,248 | | | | 1.18 | % | | | (0.20 | ) % | | | 1.18 | % | | | 29.44 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.11 | | | | (1.38 | )% | | $ | 1,402 | | | | 1.95 | % | | | (1.17 | )% | | | 2.06 | % | | | 53.08 | % | |
Year Ended October 31, 2005 | | | 13.57 | | | | 12.06 | %(g) | | | 1,317 | | | | 1.90 | %(g) | | | (0.48 | )%(g) | | | 2.09 | %(g) | | | 79.54 | % | |
Year Ended October 31, 2006 | | | 14.17 | | | | 6.16 | % | | | 1,446 | | | | 1.95 | % | | | (0.88 | )% | | | 2.19 | % | | | 75.06 | % | |
Year Ended October 31, 2007 | | | 16.92 | | | | 29.43 | %(h) | | | 1,630 | | | | 1.86 | %(h) | | | (0.78 | )%(h) | | | 1.98 | % | | | 57.04 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 14.60 | | | | (9.02 | )% | | | 1,368 | | | | 1.94 | % | | | (0.97 | )% | | | 1.94 | % | | | 29.44 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2004(f) | | $ | 12.17 | | | | (1.46 | )% | | $ | 309 | | | | 1.95 | % | | | (1.18 | )% | | | 2.06 | % | | | 53.08 | % | |
Year Ended October 31, 2005 | | | 13.64 | | | | 12.08 | %(g) | | | 344 | | | | 1.90 | %(g) | | | (0.51 | )%(g) | | | 2.10 | %(g) | | | 79.54 | % | |
Year Ended October 31, 2006 | | | 14.24 | | | | 6.13 | % | | | 270 | | | | 1.95 | % | | | (0.89 | )% | | | 2.18 | % | | | 75.06 | % | |
Year Ended October 31, 2007 | | | 17.02 | | | | 29.49 | %(h) | | | 98 | | | | 1.86 | %(h) | | | (0.79 | )%(h) | | | 1.96 | % | | | 57.04 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 14.69 | | | | (9.02 | )% | | | 80 | | | | 1.93 | % | | | (0.95 | )% | | | 1.93 | % | | | 29.44 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | $ | 12.55 | | | | 0.95 | % | | $ | 19,115 | | | | 0.95 | % | | | (0.17 | )% | | | 1.06 | % | | | 53.08 | % | |
Year Ended October 31, 2005 | | | 14.12 | | | | 13.17 | %(g) | | | 13,107 | | | | 0.90 | %(g) | | | 0.56 | %(g) | | | 1.07 | %(g) | | | 79.54 | % | |
Year Ended October 31, 2006 | | | 14.90 | | | | 7.21 | % | | | 15,042 | | | | 0.95 | % | | | 0.12 | % | | | 1.19 | % | | | 75.06 | % | |
Year Ended October 31, 2007 | | | 18.02 | | | | 30.73 | %(h) | | | 30,295 | | | | 0.87 | %(h) | | | 0.20 | %(h) | | | 0.96 | % | | | 57.04 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 15.68 | | | | (8.56 | )% | | | 26,795 | | | | 0.93 | % | | | 0.05 | % | | | 0.93 | % | | | 29.44 | % | |
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* | Calculated based on average shares outstanding. |
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(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Growth Portfolio. |
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(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
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(c) | Annualized for periods less than one year. |
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(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets. |
| |
(f) | Class A Shares, Class B Shares, Class C Shares and Class I Shares commenced operations on May 10, 2004. |
| |
(g) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.05%, 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(h) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.09%, 0.09%, 0.09% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
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(i) | Represents less than $0.005. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 55 |
|
HSBC INVESTOR FUNDS—GROWTH AND INCOME FUND |
|
Financial Highlights |
|
Selected data for a share outstanding throughout the periods indicated. |
| | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends |
| | | |
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|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.21 | | | 0.06 | | | 1.18 | | | 1.24 | | | (0.06 | ) | | (0.06 | ) |
Year Ended October 31, 2004 | | | | 8.39 | | | 0.05 | | | 0.36 | | | 0.41 | | | (0.04 | ) | | (0.04 | ) |
Year Ended October 31, 2005 | | | | 8.76 | | | 0.07 | | | 1.01 | | | 1.08 | | | (0.09 | ) | | (0.09 | ) |
Year Ended October 31, 2006 | | | | 9.75 | | | (0.02 | )* | | 1.25 | | | 1.23 | | | — | | | — | |
Year Ended October 31, 2007 | | | | 10.98 | | | 0.01 | * | | 3.07 | | | 3.08 | | | (0.02 | ) | | (0.02 | ) |
Six Months Ended April 30, 2008 (Unaudited) | | | | 14.04 | | | — | *> | | (1.43 | ) | | (1.43 | ) | | — | | | — | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.14 | | | (0.01 | ) | | 1.18 | | | 1.17 | | | (0.01 | ) | | (0.01 | ) |
Year Ended October 31, 2004 | | | | 8.30 | | | (0.02 | )* | | 0.36 | | | 0.34 | | | (0.00 | )> | | (0.00 | ) > |
Year Ended October 31, 2005 | | | | 8.64 | | | (0.01 | ) | | 1.01 | | | 1.00 | | | (0.03 | ) | | (0.03 | ) |
Year Ended October 31, 2006 | | | | 9.61 | | | (0.10 | )* | | 1.23 | | | 1.13 | | | — | | | — | |
Year Ended October 31, 2007 | | | | 10.74 | | | (0.07 | )* | | 2.99 | | | 2.92 | | | — | | | — | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.66 | | | (0.04 | )* | | (1.41 | ) | | (1.45 | ) | | — | | | — | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 | | | $ | 8.40 | | | (0.02 | )* | | 0.38 | | | 0.36 | | | (0.03 | ) | | (0.03 | ) |
Year Ended October 31, 2005 | | | | 8.73 | | | (0.01 | ) | | 1.02 | | | 1.01 | | | (0.04 | ) | | (0.04 | ) |
Year Ended October 31, 2006 | | | | 9.70 | | | (0.09 | ) | | 1.22 | | | 1.13 | | | — | | | — | |
Year Ended October 31, 2007 | | | | 10.83 | | | (0.08 | )* | | 3.02 | | | 2.94 | | | — | | | — | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.77 | | | (0.04 | )* | | (1.41 | ) | | (1.45 | ) | | — | | | — | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.22 | | | 0.07 | | | 1.19 | | | 1.26 | | | (0.08 | ) | | (0.08 | ) |
Year Ended October 31, 2004 | | | | 8.40 | | | 0.07 | | | 0.36 | | | 0.43 | | | (0.06 | ) | | (0.06 | ) |
Year Ended October 31, 2005 | | | | 8.77 | | | 0.10 | | | 0.99 | | | 1.10 | | | (0.12 | ) | | (0.12 | ) |
Year Ended October 31, 2006 | | | | 9.75 | | | 0.01 | * | | 1.25 | | | 1.26 | | | (0.01 | ) | | (0.01 | ) |
Year Ended October 31, 2007 | | | | 11.00 | | | 0.05 | * | | 3.08 | | | 3.13 | | | (0.04 | ) | | (0.04 | ) |
Six Months Ended April 30, 2008 (Unaudited) | | | | 14.09 | | | 0.02 | * | | (1.45 | ) | | (1.43 | ) | | — | | | — | |
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| | | | | | Ratios/Supplementary Data |
| | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | | Portfolio
Turnover
Rate(d) |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 8.39 | | | 17.26 | % | | | $ | 1,827 | | | 1.04 | % | | 0.70 | % | | 1.04 | % | | 64.52 | % |
Year Ended October 31, 2004 | | | | 8.76 | | | 4.94 | % | | | | 1,500 | | | 1.02 | % | | 0.50 | % | | 1.02 | % | | 73.68 | % |
Year Ended October 31, 2005 | | | | 9.75 | | | 12.36 | %(e) | | | | 1,260 | | | 1.11 | %(e) | | 0.73 | %(e) | | 1.16 | % | | 106.49 | % |
Year Ended October 31, 2006 | | | | 10.98 | | | 12.62 | % | | | | 1,394 | | | 1.26 | % | | (0.22 | )% | | 1.47 | % | | 34.85 | % |
Year Ended October 31, 2007 | | | | 14.04 | | | 28.09 | %(g) | | | | 2,048 | | | 1.08 | %(g) | | 0.10 | %(g) | | 1.32 | % | | 26.76 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.61 | | | (10.19 | )% | | | | 2,098 | | | 1.15 | % | | 0.02 | % | | 1.20 | % | | 16.06 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 8.30 | | | 16.40 | % | | | $ | 2,235 | | | 1.79 | % | | (0.07 | )% | | 1.79 | % | | 64.52 | % |
Year Ended October 31, 2004 | | | | 8.64 | | | 4.13 | % | | | | 3,820 | | | 1.77 | % | | (0.25 | )% | | 1.77 | % | | 73.68 | % |
Year Ended October 31, 2005 | | | | 9.61 | | | 11.61 | %(e) | | | | 4,194 | | | 1.87 | %(e) | | (0.10 | %(e) | | 1.93 | % | | 106.49 | % |
Year Ended October 31, 2006 | | | | 10.74 | | | 11.76 | % | | | | 4,537 | | | 2.01 | % | | (0.97 | )% | | 2.22 | % | | 34.85 | % |
Year Ended October 31, 2007 | | | | 13.66 | | | 27.19 | %(g) | | | | 5,051 | | | 1.83 | %(g) | | (0.62 | %(g) | | 2.07 | % | | 26.76 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.21 | | | (10.61 | )% | | | | 3,932 | | | 1.91 | % | | (0.69 | )% | | 1.96 | % | | 16.06 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 | | | $ | 8.73 | | | 3.57 | % | | | $ | 41 | | | 1.77 | % | | (0.28 | )% | | 1.77 | % | | 73.68 | % |
Year Ended October 31, 2005 | | | | 9.70 | | | 11.59 | %(e) | | | | 49 | | | 1.88 | %(e) | | (0.13 | %(e) | | 1.93 | % | | 106.49 | % |
Year Ended October 31, 2006 | | | | 10.83 | | | 11.65 | % | | | | 35 | | | 2.01 | % | | (0.90 | )% | | 2.21 | % | | 34.85 | % |
Year Ended October 31, 2007 | | | | 13.77 | | | 27.15 | %(g) | | | | 58 | | | 1.82 | %(g) | | (0.64 | %(g) | | 2.07 | % | | 26.76 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.32 | | | (10.53 | )% | | | | 30 | | | 1.92 | % | | (0.62 | )% | | 1.97 | % | | 16.06 | % |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 8.40 | | | 17.63 | % | | | $ | 203,458 | | | 0.79 | % | | 0.96 | % | | 0.79 | % | | 64.52 | % |
Year Ended October 31, 2004 | | | | 8.77 | | | 5.18 | % | | | | 196,219 | | | 0.77 | % | | 0.77 | % | | 0.77 | % | | 73.68 | % |
Year Ended October 31, 2005 | | | | 9.75 | | | 12.61 | %(e) | | | | 46,888 | | | 0.80 | %(e) | | 1.20 | %(e) | | 0.86 | % | | 106.49 | % |
Year Ended October 31, 2006 | | | | 11.00 | | | 12.88 | % | | | | 40,925 | | | 1.01 | % | | 0.04 | % | | 1.22 | % | | 34.85 | % |
Year Ended October 31, 2007 | | | | 14.09 | | | 28.46 | %(g) | | | | 45,399 | | | 0.83 | %(g) | | 0.38 | %(g) | | 1.07 | % | | 26.76 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.66 | | | (10.14 | )% | | | | 33,676 | | | 0.91 | % | | 0.31 | % | | 0.96 | % | | 16.06 | % |
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> | Less than $0.005 per share. |
| |
* | Calculated based on average shares outstanding. |
| |
(a) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been indicated. |
| |
(d) | Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued. |
| |
(e) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.02%, 0.02%, 0.02% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(f) | Class C shares commenced operations on November 3, 2003. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.12%, 0.12%, 0.13% and 0.12% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
56 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR ADVISOR FUNDS TRUST—INTERNATIONAL EQUITY FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends |
| | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends |
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|
CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.73 | | | 0.20 | | | 2.02 | | | 2.22 | | | (0.19 | ) | | — | | | (0.19 | ) |
Year Ended October 31, 2004 | | | | 12.76 | | | 0.18 | | | 2.32 | | | 2.50 | | | (0.39 | ) | | — | | | (0.39 | ) |
Year Ended October 31, 2005 | | | | 14.87 | | | 0.31 | | | 2.59 | | | 2.90 | | | (0.23 | ) | | — | | | (0.23 | ) |
Year Ended October 31, 2006 | | | | 17.54 | | | 0.38 | | | 5.14 | | | 5.52 | | | (0.36 | ) | | (0.60 | ) | | (0.96 | ) |
Year Ended October 31, 2007 | | | | 22.10 | | | 0.50 | | | 4.69 | | | 5.19 | | | (0.55 | ) | | (1.84 | ) | | (2.39 | ) |
Six Months Ended April 30, 2008 (Unaudited) | | | | 24.90 | | | 0.22 | | | (2.93 | ) | | (2.71 | ) | | (0.39 | ) | | (1.90 | ) | | (2.29 | ) |
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| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ratios/Supplementary Data |
| | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 12.76 | | | 21.03 | % | | | $ | 123,658 | | | 1.07 | % | | 1.16 | % | | 1.07 | % | | 68.51 | % |
Year Ended October 31, 2004 | | | | 14.87 | | | 20.06 | % | | | | 148,317 | | | 1.05 | % | | 1.39 | % | | 1.05 | % | | 106.11 | % |
Year Ended October 31, 2005 | | | | 17.54 | | | 19.69 | % | | | | 193,144 | | | 0.92 | % | | 2.01 | % | | 0.92 | % | | 31.32 | % |
Year Ended October 31, 2006 | | | | 22.10 | | | 32.70 | % | | | | 283,749 | | | 0.97 | % | | 2.02 | % | | 0.97 | % | | 33.39 | % |
Year Ended October 31, 2007 | | | | 24.90 | | | 25.41 | %(e)(f) | | | | 385,717 | | | 0.87 | %(e) | | 2.15 | %(e) | | 0.89 | % | | 26.08 | % |
Six Months Ended April 30, 2008 (Unaudited) | | | | 19.90 | | | (10.82 | ) % | | | | 318,411 | | | 0.87 | % | | 2.06 | % | | 0.87 | % | | 13.91 | % |
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(a) | The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor International Portfolio. |
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(b) | Total return calculations do not include any sales or redemption charges. |
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(c) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(d) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
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(e) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.02% for the Class I Shares. |
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(f) | During the year ended October 31, 2007, the Fund received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.18%. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 57 |
|
HSBC INVESTOR FUNDS—MID-CAP FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | |
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| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 6.30 | | | (0.03 | )* | | 1.68 | | | 1.65 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 7.95 | | | (0.04 | )* | | 0.53 | | | 0.49 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 8.44 | | | (0.06 | )* | | 1.49 | | | 1.43 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 9.87 | | | (0.00 | )> | | 1.19 | | | 1.19 | | | (2.18 | ) | | (2.18 | ) | |
Year Ended October 31, 2007 | | | | 8.88 | | | (0.04 | )* | | 2.59 | | | 2.55 | | | (0.62 | ) | | (0.62 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.81 | | | (0.02 | )* | | (1.05 | ) | | (1.07 | ) | | (1.23 | ) | | (1.23 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 6.19 | | | (0.08 | ) | | 1.64 | | | 1.56 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 7.75 | | | (0.10 | )* | | 0.51 | | | 0.41 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 8.16 | | | (0.13 | )* | | 1.45 | | | 1.32 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 9.48 | | | (0.06 | )* | | 1.13 | | | 1.07 | | | (2.18 | ) | | (2.18 | ) | |
Year Ended October 31, 2007 | | | | 8.37 | | | (0.10 | )* | | 2.42 | | | 2.32 | | | (0.62 | ) | | (0.62 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.07 | | | (0.05 | )* | | (0.97 | ) | | (1.02 | ) | | (1.23 | ) | | (1.23 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 6.20 | | | (0.08 | ) | | 1.68 | | | 1.60 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 7.80 | | | (0.10 | )* | | 0.52 | | | 0.42 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 8.22 | | | (0.13 | )* | | 1.45 | | | 1.32 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 9.54 | | | (0.06 | )* | | 1.15 | | | 1.09 | | | (2.18 | ) | | (2.18 | ) | |
Year Ended October 31, 2007 | | | | 8.45 | | | (0.10 | )* | | 2.43 | | | 2.33 | | | (0.62 | ) | | (0.62 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.16 | | | (0.05 | )* | | (0.98 | ) | | (1.03 | ) | | (1.23 | ) | | (1.23 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 6.33 | | | (0.01 | ) | | 1.69 | | | 1.68 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 8.01 | | | (0.02 | )* | | 0.53 | | | 0.51 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 8.52 | | | (0.02 | )* | | 1.48 | | | 1.46 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 9.98 | | | 0.03 | * | | 1.20 | | | 1.23 | | | (2.18 | ) | | (2.18 | ) | |
Year Ended October 31, 2007 | | | | 9.03 | | | (0.02 | )* | | 2.64 | | | 2.62 | | | (0.62 | ) | | (0.62 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 11.03 | | | (0.01 | )* | | (1.07 | ) | | (1.08 | ) | | (1.23 | ) | | (1.23 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ratios/Supplementary Data | |
| | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | | Portfolio
Turnover
Rate(d) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.95 | | | 26.19 | % | | | $ | 1,539 | | | 1.10 | % | | (0.43 | )% | | 1.10 | % | | 100.86 | % | |
Year Ended October 31, 2004 | | | | 8.44 | | | 6.16 | % | | | | 1,878 | | | 1.09 | % | | (0.54 | )% | | 1.09 | % | | 106.72 | % | |
Year Ended October 31, 2005 | | | | 9.87 | | | 16.94 | %(e) | | | | 2,151 | | | 1.38 | %(e) | | (0.65 | )%(e) | | 1.53 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | | | 8.88 | | | 13.66 | % | | | | 3,185 | | | 1.48 | % | | (0.01 | )% | | 1.85 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | | | 10.81 | | | 30.51 | %(f) | | | | 5,897 | | | 1.19 | %(f) | | (0.45 | )%(f) | | 1.70 | % | | 66.16 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 8.51 | | | (10.62 | )% | | | | 5,122 | | | 1.35 | % | | (0.54 | )% | | 1.70 | % | | 27.41 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.75 | | | 25.20 | % | | | $ | 6,009 | | | 1.85 | % | | (1.16 | )% | | 1.85 | % | | 100.86 | % | |
Year Ended October 31, 2004 | | | | 8.16 | | | 5.29 | % | | | | 7,037 | | | 1.84 | % | | (1.29 | )% | | 1.84 | % | | 106.72 | % | |
Year Ended October 31, 2005 | | | | 9.48 | | | 16.18 | %(e) | | | | 7,415 | | | 2.11 | %(e) | | (1.38 | )%(e) | | 2.27 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | | | 8.37 | | | 12.78 | % | | | | 7,425 | | | 2.25 | % | | (0.72 | )% | | 2.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | | | 10.07 | | | 29.56 | %(f) | | | | 6,285 | | | 1.92 | %(f) | | (1.15 | )%(f) | | 2.48 | % | | 66.16 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 7.82 | | | (10.94 | )% | | | | 4,459 | | | 2.10 | % | | (1.30 | )% | | 2.45 | % | | 27.41 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.80 | | | 25.81 | % | | | $ | 54 | | | 1.85 | % | | (1.23 | )% | | 1.85 | % | | 100.86 | % | |
Year Ended October 31, 2004 | | | | 8.22 | | | 5.38 | % | | | | 94 | | | 1.84 | % | | (1.29 | )% | | 1.84 | % | | 106.72 | % | |
Year Ended October 31, 2005 | | | | 9.54 | | | 16.06 | %(e) | | | | 111 | | | 2.13 | %(e) | | (1.40 | )%(e) | | 2.28 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | | | 8.45 | | | 12.93 | % | | | | 95 | | | 2.25 | % | | (0.72 | )% | | 2.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | | | 10.16 | | | 29.40 | %(f) | | | | 79 | | | 1.93 | %(f) | | (1.16 | )%(f) | | 2.46 | % | | 66.16 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 7.90 | | | (10.93 | )% | | | | 69 | | | 2.10 | % | | (1.29 | )% | | 2.46 | % | | 27.41 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 8.01 | | | 26.54 | % | | | $ | 160,621 | | | 0.85 | % | | (0.17 | )% | | 0.85 | % | | 100.86 | % | |
Year Ended October 31, 2004 | | | | 8.52 | | | 6.37 | % | | | | 117,354 | | | 0.84 | % | | (0.28 | )% | | 0.84 | % | | 106.72 | % | |
Year Ended October 31, 2005 | | | | 9.98 | | | 17.14 | %(e) | | | | 19,618 | | | 0.89 | %(e) | | (0.19 | )%(e) | | 1.02 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | | | 9.03 | | | 13.97 | % | | | | 17,029 | | | 1.26 | % | | 0.29 | % | | 1.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | | | 11.03 | | | 30.80 | %(f) | | | | 20,671 | | | 0.93 | %(f) | | (0.19 | )%(f) | | 1.47 | % | | 66.16 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 8.72 | | | (10.48 | )% | | | | 17,094 | | | 1.10 | % | | (0.29 | )% | | 1.45 | % | | 27.41 | % | |
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* | Calculated based on average shares outstanding. |
| |
> | Less than $0.005 per share. |
| |
(a) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been indicated. |
| |
(d) | Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued. |
| |
(e) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio and net income ratio were 0.10%, 0.10%, 0.10% and 0.09% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. The corresponding impact to the total return was 0.57%, 0.57%, 0.57% and 0.56% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
58 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FUNDS—OPPORTUNITY FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | |
| | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.83 | | | (0.10 | ) | | 2.63 | | | 2.53 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 10.36 | | | (0.13 | ) | | 0.68 | | | 0.55 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 10.91 | | | (0.14 | ) | | 1.62 | | | 1.48 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 12.39 | | | (0.14 | )* | | 2.43 | | | 2.29 | | | (0.39 | ) | | (0.39 | ) | |
Year Ended October 31, 2007 | | | | 14.29 | | | (0.16 | )* | | 4.01 | | | 3.85 | | | (1.73 | ) | | (1.73 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 16.41 | | | (0.06 | )* | | (0.47 | ) | | (0.53 | ) | | (5.16 | ) | | (5.16 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.51 | | | (0.18 | )* | | 2.52 | | | 2.34 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 9.85 | | | (0.20 | ) | | 0.64 | | | 0.44 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 10.29 | | | (0.22 | ) | | 1.53 | | | 1.31 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 11.60 | | | (0.23 | )* | | 2.27 | | | 2.04 | | | (0.39 | ) | | (0.39 | ) | |
Year Ended October 31, 2007 | | | | 13.25 | | | (0.25 | )* | | 3.67 | | | 3.42 | | | (1.73 | ) | | (1.73 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 14.94 | | | (0.09 | )* | | (0.43 | ) | | (0.52 | ) | | (5.16 | ) | | (5.16 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 7.57 | | | (0.18 | ) | | 2.55 | | | 2.37 | | | — | | | — | | |
Year Ended October 31, 2004 | | | | 9.94 | | | (0.22 | ) | | 0.67 | | | 0.45 | | | — | | | — | | |
Year Ended October 31, 2005 | | | | 10.39 | | | (0.21 | ) | | 1.53 | | | 1.32 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 11.71 | | | (0.23 | )* | | 2.29 | | | 2.06 | | | (0.39 | ) | | (0.39 | ) | |
Year Ended October 31, 2007 | | | | 13.38 | | | (0.26 | )* | | 3.72 | | | 3.46 | | | (1.73 | ) | | (1.73 | ) | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 15.11 | | | (0.09 | )* | | (0.44 | ) | | (0.53 | ) | | (5.16 | ) | | (5.16 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ratios/Supplementary Data | |
| | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10.36 | | | 32.31 | % | | | $ | 16,695 | | | 1.65 | % | | (1.36 | )% | | 2.09 | % | | 152.05 | % | |
Year Ended October 31, 2004 | | | | 10.91 | | | 5.31 | % | | | | 20,902 | | | 1.61 | % | | (1.24 | )% | | 1.72 | % | | 81.75 | % | |
Year Ended October 31, 2005 | | | | 12.39 | | | 13.57 | %(f) | | | | 22,875 | | | 1.51 | %(f) | | (1.11 | )%(f) | | 1.69 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | | | 14.29 | | | 18.81 | % | | | | 24,463 | | | 1.55 | % | | (1.04 | )% | | 1.70 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | | | 16.41 | | | 30.28 | %(g) | | | | 15,057 | | | 1.52 | %(g) | | (1.13 | )%(g) | | 1.77 | % | | 69.41 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 10.72 | | | (3.00 | )% | | | | 12,863 | | | 1.55 | % | | (1.14 | )% | | 1.86 | % | | 39.97 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.85 | | | 31.16 | % | | | $ | 3,952 | | | 2.40 | % | | (2.11 | )% | | 2.83 | % | | 152.05 | % | |
Year Ended October 31, 2004 | | | | 10.29 | | | 4.47 | % | | | | 4,611 | | | 2.36 | % | | (2.00 | )% | | 2.47 | % | | 81.75 | % | |
Year Ended October 31, 2005 | | | | 11.60 | | | 12.73 | %(f) | | | | 4,539 | | | 2.26 | %(f) | | (1.86 | )%(f) | | 2.44 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | | | 13.25 | | | 17.91 | % | | | | 4,768 | | | 2.30 | % | | (1.79 | )% | | 2.45 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | | | 14.94 | | | 29.30 | %(g) | | | | 4,928 | | | 2.26 | %(g) | | (1.91 | )%(g) | | 2.52 | % | | 69.41 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.26 | | | (3.30 | )% | | | | 3,799 | | | 2.30 | % | | (1.88 | )% | | 2.62 | % | | 39.97 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.94 | | | 31.31 | % | | | $ | 395 | | | 2.40 | % | | (2.11 | )% | | 2.84 | % | | 152.05 | % | |
Year Ended October 31, 2004 | | | | 10.39 | | | 4.53 | % | | | | 344 | | | 2.37 | % | | (2.00 | )% | | 2.48 | % | | 81.75 | % | |
Year Ended October 31, 2005 | | | | 11.71 | | | 12.70 | %(f) | | | | 306 | | | 2.26 | %(f) | | (1.86 | )%(f) | | 2.44 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | | | 13.38 | | | 17.92 | % | | | | 299 | | | 2.30 | % | | (1.78 | )% | | 2.45 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | | | 15.11 | | | 29.32 | %(g) | | | | 334 | | | 2.27 | %(g) | | (1.91 | )%(g) | | 2.50 | % | | 69.41 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 9.42 | | | (3.33 | )% | | | | 315 | | | 2.30 | % | | (1.88 | )% | | 2.62 | % | | 39.97 | % | |
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| |
* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Opportunity Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.04%, 0.04% and 0.04% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.03%, 0.04% and 0.03% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 59 |
|
HSBC INVESTOR ADVISOR FUNDS TRUST—OPPORTUNITY FUND (ADVISOR) |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | | | | |
| | | | |
| |
| | | | |
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | |
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|
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|
|
CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.27 | | | (0.06 | ) | | 3.15 | | | 3.09 | | | — | | | — | | | | $ | 12.36 | | |
Year Ended October 31, 2004 | | | | 12.36 | | | (0.08 | ) | | 0.79 | | | 0.71 | | | — | | | — | | | | | 13.07 | | |
Year Ended October 31, 2005 | | | | 13.07 | | | (0.10 | ) | | 1.97 | | | 1.87 | | | — | | | — | | | | | 14.94 | | |
Year Ended October 31, 2006 | | | | 14.94 | | | (0.09 | ) | | 2.93 | | | 2.84 | | | (0.50 | ) | | (0.50 | ) | | | | 17.28 | | |
Year Ended October 31, 2007 | | | | 17.28 | | | (0.11 | ) | | 4.48 | | | 4.37 | | | (2.71 | ) | | (2.71 | ) | | | | 18.94 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 18.94 | | | (0.04 | ) | | (0.51 | ) | | (0.55 | ) | | (4.97 | ) | | (4.97 | ) | | | | 13.42 | | |
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| | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplementary Data | |
| | | | |
|
| | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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|
|
CLASS I SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 33.33 | % | | $326,072 | | | 1.01 | % | | (0.72 | )% | | 1.01 | % | | 152.05 | % | |
Year Ended October 31, 2004 | | 5.74 | % | | 279,669 | | | 0.98 | % | | (0.62 | )% | | 0.98 | % | | 81.75 | % | |
Year Ended October 31, 2005 | | 14.31 | %(f) | | 177,519 | | | 0.94 | %(f) | | (0.54 | )%(f) | | 0.94 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | 19.40 | % | | 192,124 | | | 1.03 | % | | (0.51 | )% | | 1.03 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | 29.42 | %(g) | | 176,593 | | | 0.96 | %(g) | | (0.60 | %(g) | | 1.03 | % | | 69.41 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | (2.69 | )% | | 152,232 | | | 0.97 | % | | (0.56 | )% | | 0.97 | % | | 39.97 | % | |
|
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|
| |
(a) | The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Opportunity Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return was 0.04% for the Class I Shares. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.07% for the Class I Shares. |
| | |
60 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FUNDS—OVERSEAS EQUITY FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | |
| | | | | Investment Activities | |
| | | | |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
and Foreign
Currency
Transactions | | Total from
Investment
Activities | |
|
|
|
|
|
|
|
|
|
|
CLASS A SHARES | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.87 | | | 0.01 | | | 1.95 | | | 1.96 | | |
Year Ended October 31, 2004 | | | | 11.73 | | | 0.08 | | | 2.19 | | | 2.27 | | |
Year Ended October 31, 2005 | | | | 13.93 | | | 0.18 | | | 2.33 | | | 2.51 | | |
Year Ended October 31, 2006 | | | | 15.59 | | | 0.22 | | | 4.45 | | | 4.67 | | |
Year Ended October 31, 2007 | | | | 18.85 | | | 0.22 | * | | 3.92 | | | 4.14 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 20.48 | | | 0.09 | * | | (2.40 | ) | | (2.31 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.56 | | | (0.06 | ) | | 1.89 | | | 1.83 | | |
Year Ended October 31, 2004 | | | | 11.34 | | | 0.01 | * | | 2.08 | | | 2.09 | | |
Year Ended October 31, 2005 | | | | 13.43 | | | 0.07 | | | 2.24 | | | 2.31 | | |
Year Ended October 31, 2006 | | | | 14.95 | | | 0.09 | | | 4.26 | | | 4.35 | | |
Year Ended October 31, 2007 | | | | 18.00 | | | 0.10 | * | | 3.70 | | | 3.80 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 19.42 | | | 0.03 | * | | (2.27 | ) | | (2.24 | ) | |
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|
CLASS C SHARES | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 9.68 | | | (0.06 | ) | | 1.93 | | | 1.87 | | |
Year Ended October 31, 2004 | | | | 11.54 | | | (0.01 | ) | | 2.14 | | | 2.13 | | |
Year Ended October 31, 2005 | | | | 13.67 | | | 0.06 | | | 2.29 | | | 2.35 | | |
Year Ended October 31, 2006 | | | | 15.23 | | | 0.11 | | | 4.33 | | | 4.44 | | |
Year Ended October 31, 2007 | | | | 18.37 | | | 0.11 | * | | 3.80 | | | 3.91 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 19.94 | | | 0.04 | * | | (2.35 | ) | | (2.31 | ) | |
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|
| | | | | | | | | | | | | | | | | | |
| | Dividends | | | | | | | |
| |
| | | | | | | |
| | Net
Investment
Income | | Net
Realized
Gains from
Investment
and Foreign
Currency
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | | Total
Return(b) | |
|
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|
|
CLASS A SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | (0.10 | ) | | — | | | (0.10 | ) | | | $ | 11.73 | | | 20.09 | % | |
Year Ended October 31, 2004 | | (0.07 | ) | | — | | | (0.07 | ) | | | | 13.93 | | | 19.40 | % | |
Year Ended October 31, 2005 | | (0.06 | ) | | (0.79 | ) | | (0.85 | ) | | | | 15.59 | | | 18.64 | % | |
Year Ended October 31, 2006 | | (0.25 | ) | | (1.16 | ) | | (1.41 | ) | | | | 18.85 | | | 31.85 | % | |
Year Ended October 31, 2007 | | (0.40 | ) | | (2.11 | ) | | (2.51 | ) | | | | 20.48 | | | 24.19 | %(f) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.15 | ) | | (3.31 | ) | | (3.46 | ) | | | | 14.71 | | | (11.23 | )% | |
|
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|
CLASS B SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | (0.05 | ) | | — | | | (0.05 | ) | | | $ | 11.34 | | | 19.26 | % | |
Year Ended October 31, 2004 | | — | | | — | | | — | | | | | 13.43 | | | 18.43 | % | |
Year Ended October 31, 2005 | | — | | | (0.79 | ) | | (0.79 | ) | | | | 14.95 | | | 17.72 | % | |
Year Ended October 31, 2006 | | (0.14 | ) | | (1.16 | ) | | (1.30 | ) | | | | 18.00 | | | 30.87 | % | |
Year Ended October 31, 2007 | | (0.27 | ) | | (2.11 | ) | | (2.38 | ) | | | | 19.42 | | | 23.26 | %(f) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.03 | ) | | (3.31 | ) | | (3.34 | ) | | | | 13.84 | | | (11.57 | )% | |
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|
|
CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | (0.01 | ) | | — | | | (0.01 | ) | | | $ | 11.54 | | | 19.28 | % | |
Year Ended October 31, 2004 | | — | | | — | | | — | | | | | 13.67 | | | 18.46 | % | |
Year Ended October 31, 2005 | | — | | | (0.79 | ) | | (0.79 | ) | | | | 15.23 | | | 17.70 | % | |
Year Ended October 31, 2006 | | (0.14 | ) | | (1.16 | ) | | (1.30 | ) | | | | 18.37 | | | 30.92 | % | |
Year Ended October 31, 2007 | | (0.23 | ) | | (2.11 | ) | | (2.34 | ) | | | | 19.94 | | | 23.39 | %(f) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.02 | ) | | (3.31 | ) | | (3.33 | ) | | | | 14.30 | | | (11.61 | )% | |
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|
|
| | | | | | | | | | | | | | | | | | |
| | Ratios/Supplementary Data | |
| |
|
| | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
|
|
|
|
|
|
|
|
|
|
|
|
CLASS A SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 10,096 | | | 1.85 | % | | 0.07 | % | | 2.34 | % | | 68.51 | % | |
Year Ended October 31, 2004 | | | | 17,721 | | | 1.78 | % | | 0.79 | % | | 1.88 | % | | 106.11 | % | |
Year Ended October 31, 2005 | | | | 20,680 | | | 1.66 | % | | 1.21 | % | | 1.66 | % | | 31.32 | % | |
Year Ended October 31, 2006 | | | | 22,761 | | | 1.67 | % | | 1.24 | % | | 1.67 | % | | 33.39 | % | |
Year Ended October 31, 2007 | | | | 16,078 | | | 1.62 | %(f) | | 1.15 | %(f) | | 1.64 | % | | 26.08 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 11,320 | | | 1.70 | % | | 1.13 | % | | 1.73 | % | | 13.91 | % | |
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|
CLASS B SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1,076 | | | 2.60 | % | | (0.62 | )% | | 3.16 | % | | 68.51 | % | |
Year Ended October 31, 2004 | | | | 2,061 | | | 2.53 | % | | 0.05 | % | | 2.63 | % | | 106.11 | % | |
Year Ended October 31, 2005 | | | | 2,403 | | | 2.41 | % | | 0.47 | % | | 2.41 | % | | 31.32 | % | |
Year Ended October 31, 2006 | | | | 3,234 | | | 2.42 | % | | 0.58 | % | | 2.42 | % | | 33.39 | % | |
Year Ended October 31, 2007 | | | | 3,698 | | | 2.37 | %(f) | | 0.59 | %(f) | | 2.40 | % | | 26.08 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 2,859 | | | 2.45 | % | | 0.41 | % | | 2.48 | % | | 13.91 | % | |
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|
CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 121 | | | 2.60 | % | | (0.64 | )% | | 3.17 | % | | 68.51 | % | |
Year Ended October 31, 2004 | | | | 137 | | | 2.54 | % | | (0.10 | )% | | 2.66 | % | | 106.11 | % | |
Year Ended October 31, 2005 | | | | 164 | | | 2.41 | % | | 0.48 | % | | 2.41 | % | | 31.32 | % | |
Year Ended October 31, 2006 | | | | 163 | | | 2.41 | % | | 0.58 | % | | 2.41 | % | | 33.39 | % | |
Year Ended October 31, 2007 | | | | 147 | | | 2.30 | %(f) | | 0.59 | %(f) | | 2.32 | % | | 26.08 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 129 | | | 2.45 | % | | 0.49 | % | | 2.49 | % | | 13.91 | % | |
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|
| |
* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor International Portfolio. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. |
| |
(f) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.02%, 0.03% and 0.02% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 61 |
|
HSBC INVESTOR FUNDS—VALUE FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | |
| | | | | | | Investment Activities | |
| | | | | | |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | |
|
|
|
|
|
|
|
|
|
|
CLASS A SHARES | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 12.68 | | | 0.05 | | | 0.69 | | | 0.74 | | |
Year Ended October 31, 2005 | | | | 13.38 | | | 0.10 | | | 1.86 | | | 1.96 | | |
Year Ended October 31, 2006 | | | | 15.13 | | | 0.12 | * | | 2.95 | | | 3.07 | | |
Year Ended October 31, 2007 | | | | 16.72 | | | 0.14 | * | | 1.38 | | | 1.52 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 16.54 | | | 0.06 | * | | (1.76 | ) | | (1.70 | ) | |
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|
CLASS B SHARES | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 12.28 | | | — | | | 0.68 | | | 0.68 | | |
Year Ended October 31, 2005 | | | | 12.95 | | | (0.02 | ) | | 1.80 | | | 1.78 | | |
Year Ended October 31, 2006 | | | | 14.60 | | | — | * | | 2.84 | | | 2.84 | | |
Year Ended October 31, 2007 | | | | 16.08 | | | 0.02 | * | | 1.32 | | | 1.34 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 15.83 | | | 0.01 | * | | (1.69 | ) | | (1.68 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 12.35 | | | 0.01 | | | 0.67 | | | 0.68 | | |
Year Ended October 31, 2005 | | | | 13.01 | | | (0.02 | ) | | 1.82 | | | 1.80 | | |
Year Ended October 31, 2006 | | | | 14.67 | | | — | * | | 2.85 | | | 2.85 | | |
Year Ended October 31, 2007 | | | | 16.18 | | | 0.02 | * | | 1.32 | | | 1.34 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 15.94 | | | 0.02 | * | | (1.70 | ) | | (1.68 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 12.67 | | | 0.07 | | | 0.70 | | | 0.77 | | |
Year Ended October 31, 2005 | | | | 13.38 | | | 0.13 | | | 1.86 | | | 1.99 | | |
Year Ended October 31, 2006 | | | | 15.13 | | | 0.15 | * | | 2.94 | | | 3.09 | | |
Year Ended October 31, 2007 | | | | 16.70 | | | 0.18 | * | | 1.38 | | | 1.56 | | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 16.52 | | | 0.08 | * | | (1.76 | ) | | (1.68 | ) | |
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| | | | | | | | | | | | | | | | | | |
| | Dividends | | | | | | | |
| |
| | | | | | | |
| | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | | Total
Return(b) | |
|
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|
CLASS A SHARES | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | (0.04 | ) | | — | | | (0.04 | ) | | | $ | 13.38 | | | 7.79 | % | |
Year Ended October 31, 2005 | | (0.08 | ) | | (0.13 | ) | | (0.21 | ) | | | | 15.13 | | | 14.69 | %(g) | |
Year Ended October 31, 2006 | | (0.19 | ) | | (1.29 | ) | | (1.48 | ) | | | | 16.72 | | | 21.70 | % | |
Year Ended October 31, 2007 | | (0.13 | ) | | (1.57 | ) | | (1.70 | ) | | | | 16.54 | | | 9.77 | %(h) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.07 | ) | | (1.30 | ) | | (1.37 | ) | | | | 13.47 | | | (10.71 | )% | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | (0.01 | ) | | — | | | (0.01 | ) | | | $ | 12.95 | | | 9.06 | % | |
Year Ended October 31, 2005 | | — | | | (0.13 | ) | | (0.13 | ) | | | | 14.60 | | | 13.78 | %(g) | |
Year Ended October 31, 2006 | | (0.07 | ) | | (1.29 | ) | | (1.36 | ) | | | | 16.08 | | | 20.78 | % | |
Year Ended October 31, 2007 | | (0.02 | ) | | (1.57 | ) | | (1.59 | ) | | | | 15.83 | | | 8.92 | %(h) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.01 | ) | | (1.30 | ) | | (1.31 | ) | | | | 12.84 | | | (11.04 | )% | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | (0.02 | ) | | — | | | (0.02 | ) | | | $ | 13.01 | | | 8.47 | % | |
Year Ended October 31, 2005 | | (0.01 | ) | | (0.13 | ) | | (0.14 | ) | | | | 14.67 | | | 13.86 | %(g) | |
Year Ended October 31, 2006 | | (0.05 | ) | | (1.29 | ) | | (1.34 | ) | | | | 16.18 | | | 20.72 | % | |
Year Ended October 31, 2007 | | (0.01 | ) | | (1.57 | ) | | (1.58 | ) | | | | 15.94 | | | 8.95 | %(h) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.01 | ) | | (1.30 | ) | | (1.31 | ) | | | | 12.95 | | | (11.06 | )% | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | (0.06 | ) | | — | | | (0.06 | ) | | | $ | 13.38 | | | 6.05 | % | |
Year Ended October 31, 2005 | | (0.11 | ) | | (0.13 | ) | | (0.24 | ) | | | | 15.13 | | | 14.96 | %(g) | |
Year Ended October 31, 2006 | | (0.23 | ) | | (1.29 | ) | | (1.52 | ) | | | | 16.70 | | | 21.90 | % | |
Year Ended October 31, 2007 | | (0.17 | ) | | (1.57 | ) | | (1.74 | ) | | | | 16.52 | | | 10.04 | %(h) | |
Six Months Ended April 30, 2008
(Unaudited) | | (0.09 | ) | | (1.30 | ) | | (1.39 | ) | | | | 13.45 | | | (10.60 | )% | |
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| | Ratios/Supplementary Data | |
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| | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(c) | | Ratio of Net
Investment
Income
(Loss) to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 20,933 | | | 1.20 | % | | 0.81 | % | | 1.25 | % | | 10.33 | % | |
Year Ended October 31, 2005 | | | | 23,315 | | | 1.15 | %(g) | | 0.64 | %(g) | | 1.30 | %(g) | | 16.45 | % | |
Year Ended October 31, 2006 | | | | 24,688 | | | 1.20 | % | | 0.74 | % | | 1.43 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | | | 27,225 | | | 1.11 | %(h) | | 0.84 | %(h) | | 1.25 | % | | 18.67 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 21,117 | | | 1.19 | % | | 0.92 | % | | 1.19 | % | | 14.42 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 1,938 | | | 1.95 | % | | 0.05 | % | | 2.00 | % | | 10.33 | % | |
Year Ended October 31, 2005 | | | | 1,767 | | | 1.90 | %(g) | | (0.10 | )%(g) | | 2.04 | %(g) | | 16.45 | % | |
Year Ended October 31, 2006 | | | | 1,939 | | | 1.95 | % | | (0.01 | )% | | 2.18 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | | | 1,772 | | | 1.87 | %(h) | | 0.10 | %(h) | | 2.00 | % | | 18.67 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 1,406 | | | 1.94 | % | | 0.16 | % | | 1.94 | % | | 14.42 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 399 | | | 1.95 | % | | 0.04 | % | | 2.00 | % | | 10.33 | % | |
Year Ended October 31, 2005 | | | | 388 | | | 1.90 | %(g) | | (0.12 | )%(g) | | 2.05 | %(g) | | 16.45 | % | |
Year Ended October 31, 2006 | | | | 157 | | | 1.95 | % | | 0.01 | % | | 2.17 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | | | 126 | | | 1.87 | %(h) | | 0.11 | %(h) | | 1.99 | % | | 18.67 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 100 | | | 1.94 | % | | 0.17 | % | | 1.94 | % | | 14.42 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(f) | | | $ | 25,600 | | | 0.95 | % | | 1.05 | % | | 1.00 | % | | 10.33 | % | |
Year Ended October 31, 2005 | | | | 15,044 | | | 0.90 | %(g) | | 0.91 | %(g) | | 1.02 | %(g) | | 16.45 | % | |
Year Ended October 31, 2006 | | | | 18,036 | | | 0.95 | % | | 0.99 | % | | 1.18 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | | | 28,692 | | | 0.87 | %(h) | | 1.07 | %(h) | | 0.99 | % | | 18.67 | % | |
Six Months Ended April 30, 2008
(Unaudited) | | | | 25,306 | | | 0.94 | % | | 1.16 | % | | 0.94 | % | | 14.42 | % | |
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* | Calculated based on average shares outstanding. |
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(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Value Portfolio. |
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(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
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(c) | Annualized for periods less than one year. |
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(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(e) | Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets. |
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(f) | Class A Shares, Class B Shares, Class C Shares and Class I Shares commenced operations on May 10, 2004. |
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(g) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.05%, 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
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(h) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.09%, 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
62 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
| |
1. | Organization: |
| |
| The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, and the HSBC Advisor Funds Trust (the “Advisor Trust”), a Massachusetts business trust organized on April 5, 1996, are registered under the Investment Company Act of 1940, as amended (the “Act”), as open-end management investment companies. As of April 30, 2008, the Trust is comprised of 20 separate operational funds and the Advisor Trust is comprised of 3 separate operational funds. The accompanying financial statements are presented for the following 13 funds (individually a “Fund”, collectively the “Funds”) of the Trust and Advisor Trust (collectively the “Trusts”): |
| | | | | |
| Fund | | Short Name | | Trust |
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| |
| |
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| HSBC Investor Core Plus Fixed Income Fund | | Core Plus Fixed Income | | Advisor Trust |
| (Advisor) | | Fund (Advisor) | | |
| HSBC Investor Core Plus Fixed Income Fund | | Core Plus Fixed Income Fund | | Trust |
| HSBC Investor High Yield Fixed Income Fund | | High Yield Fixed | | Trust |
| | | Income Fund | | |
| HSBC Investor Intermediate Duration Fixed | | Intermediate Duration | | |
| Income Fund | | Fixed Income Fund | | Trust |
| HSBC Investor New York Tax-Free Bond Fund | | New York Tax-Free | | Trust |
| | | Bond Fund | | |
| HSBC Investor Growth Fund | | Growth Fund | | Trust |
| HSBC Investor Growth and Income Fund | | Growth and Income Fund | | Trust |
| HSBC Investor International Equity Fund | | International Equity Fund | | Advisor Trust |
| HSBC Investor Mid-Cap Fund | | Mid-Cap Fund | | Trust |
| HSBC Investor Opportunity Fund | | Opportunity Fund | | Trust |
| HSBC Investor Opportunity Fund (Advisor) | | Opportunity Fund (Advisor) | | Advisor Trust |
| HSBC Investor Overseas Equity Fund | | Overseas Fund | | Trust |
| HSBC Investor Value Fund | | Value Fund | | Trust |
| |
| All the funds in the Trusts’, except the New York Tax-Free Bond Fund are diversified funds. The New York Tax-Free Bond Fund is a non-diversified fund which means they may concentrate their investments in the securities of a limited number of issuers. Each Fund is a part of the HSBC Family of Funds. |
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| Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. The Core Plus Fixed Income Fund (Advisor), Core Plus Fixed Income Fund, High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, Growth Fund, International Equity Fund, Opportunity Fund, Opportunity Fund (Advisor), Overseas Equity Fund, and the Value Fund (individually a “Feeder Fund”, collectively the “Feeder Funds”) utilize the master-feeder fund structure and seek to achieve their investment objectives by investing all of their investable assets in their respective Portfolios (as defined below). |
| | | | | |
Fund | | Respective Portfolio | | Proportionate
Interest on
April 30, 2008 |
| |
| |
|
Core Plus Fixed Income Fund | | HSBC Investor Core Plus Fixed Income Portfolio | | 65.1 | % |
Fund (Advisor) | | | | | |
Core Plus Fixed Income Fund | | HSBC Investor Core Plus Fixed Income Portfolio | | 14.4 | % |
High Yield Fixed Income Fund | | HSBC Investor High Yield Fixed Income Portfolio | | 64.3 | % |
Intermediate Duration | | HSBC Investor Intermediate Duration | | 93.5 | % |
Fixed Income Fund | | Fixed Income Portfolio | | | |
Growth Fund | | HSBC Investor Growth Portfolio | | 64.0 | % |
International Equity Fund | | HSBC Investor International Equity Portfolio | | 83.4 | % |
Opportunity Fund | | HSBC Investor Opportunity Portfolio | | 77.7 | % |
Opportunity Fund (Advisor) | | HSBC Investor Opportunity Portfolio | | 8.7 | % |
Overseas Equity Fund | | HSBC Investor International Equity Portfolio | | 3.7 | % |
Value Fund | | HSBC Investor Value Portfolio | | 66.5 | % |
| |
HSBC INVESTOR FAMILY OF FUNDS | 63 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. The HSBC Investor Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio”, collectively the “Portfolios”) are diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements. |
| |
| The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the Feeder Funds. |
| |
| The Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. The High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, New York Tax-Free Bond Fund, Growth Fund, Growth and Income Fund, Mid-Cap Fund, and the Value Fund each offer four classes of shares: Class A Shares, Class B Shares, Class C Shares, and Class I Shares. The Core Plus Fixed Income Fund (Advisor), International Equity Fund, and the Opportunity Fund (Advisor) each offer one class of shares: Class I Shares. The Core Plus Fixed Income Fund, Opportunity Fund, and the Overseas Equity Fund each offer three classes of shares: Class A Shares, Class B Shares, and Class C Shares. Class A Shares of the Growth Fund, Growth and Income Fund, Mid-Cap Fund, Opportunity Fund, Overseas Fund, and Value Fund have a maximum sales charge of 5.00% as a percentage of the original purchase price while Class A Shares of the Core Plus Fixed Income Fund, High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, and New York Tax-Free Bond Fund have a maximum sales charge of 4.75% as a percentage of the original purchase price. The Class B Shares of the Funds are offered without any front-end sales charge but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. No sales charges are assessed with respect to Class I Shares of the Funds. Each class of shares in the Funds has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privilege of each class of shares. |
| |
| Under the Trusts’ organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with service providers, which also provide for indemnifications by the Funds. The Funds’ maximum exposure under these arrangements is unknown, as this would involve any future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. |
| |
2. | Significant Accounting Policies: |
| |
| The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
| |
| Securities Valuation: |
| |
| A. New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund |
| |
| Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Funds’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as the institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security. |
| |
64 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Funds’ Board of Trustees. In addition, specific securities may need to be valued by or at the direction of the Funds’ Board of Trustees due to potentially significant events. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters and litigation. Examples of potentially significant events that could affect multiple securities held by a Fund include governmental actions, natural disasters and armed conflicts. |
| |
| B. Feeder Funds |
| |
| The Feeder Funds record their investments in their respective Portfolios at fair value. Securities of the Portfolios are recorded at fair value as more fully discussed in the notes to those financial statements. |
| |
| Investment Transactions and Related Income: |
| |
| A. New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund |
| |
| Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date. |
| |
| B. Feeder Funds |
| |
| The Feeder Funds record daily their pro-rata share of income, expenses, changes in unrealized appreciation and depreciation and realized gains and losses derived from their respective portfolios. In addition, the Feeder Funds accrue their own expenses daily as incurred. |
| |
| Futures Contracts: |
| |
| The New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund may invest in futures contracts for the purpose of hedging existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made each day, depending on the daily fluctuations in the fair value of the underlying security. A gain or loss equal to the daily variation margin is recognized on a daily basis. |
| |
| Should market conditions move unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. As of April 30, 2008, the Funds did not hold any investments in futures contracts. |
| |
| Options: |
| |
| The Growth and Income Fund and the Mid-Cap Fund may write covered call options against some of the securities in their portfolios provided the securities are listed on a national securities exchange. A call option is “covered” if the Fund owns the underlying securities covered by the call. The premium received is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or loss. If the call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining a realized gain or loss. For the period ended April 30, 2008, the Funds did not write any covered call options. |
| |
| Allocations: |
| |
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the HSBC Investor Family of Funds in relation to the net assets of each Fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the |
| |
HSBC INVESTOR FAMILY OF FUNDS | 65 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| expense. In addition, income, expenses (other than class specific expenses), and realized and unrealized gains and losses in investments are allocated to each class of shares based on its relative net assets on a daily basis. |
| |
| Dividends to Shareholders: |
| |
| The Core Plus Fixed Income Fund (Advisor), Core Plus Fixed Income Fund, High Yield Fixed Income, Intermediate Duration Fixed Income Fund, and the New York Tax-Free Bond Fund declare all net investment income daily as dividends to their shareholders and distribute such dividends monthly. Dividends from net investment income, if any, are declared and distributed semi-annually in the case of the Growth Fund, Growth and Income Fund, Opportunity Fund, Opportunity (Advisor) and the Value Fund, and annually in the case of the International Equity Fund, Mid-Cap Fund, and Overseas Fund. |
| |
| The Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net capital gains of regulated investment companies. |
| |
| The amount and character of net investment income and net realized gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and certain distributions), such amounts are reclassified within the composition of net assets; temporary differences (e.g., wash losses and post-october loss deferrals) do not require reclassification. The Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. To the extent distributions from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. |
| |
| Redemption Fee: |
| |
| A redemption fee of 2.00% is charged and recorded as paid-in-capital for any shares redeemed or exchanged after holding them for less than 30 days. This fee does not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that cannot implement the fee. For the fiscal year and period ended October 31, 2007 and April 30, 2008, the following Funds collected redemption fees as follows: |
| | | | | | | | | | | | |
| Fund | | Fees Collected
October 31, 2007 | | Fees Collected
April 30, 2008 | |
|
| |
| |
|
| |
| Core Plus Fixed Income Fund (Advisor) | | | $ | 12 | | | | $ | 1,055 | | |
| Core Plus Fixed Income Fund | | | | 356 | | | | | 1 | | |
| High Yield Fixed Income Fund | | | | 66 | | | | | 69 | | |
| Intermediate Duration Fixed Income Fund | | | | 46 | | | | | 1 | | |
| New York Tax-Free Bond Fund | | | | 2,570 | | | | | 2 | | |
| Growth Fund | | | | 1,191 | | | | | 875 | | |
| Growth and Income Fund | | | | 14 | | | | | 45 | | |
| International Equity Fund | | | | 9,912 | | | | | 2,530 | | |
| Mid-Cap Fund | | | | 110 | | | | | 14 | | |
| Opportunity Fund (Advisor) | | | | — | | | | | 943 | | |
| Opportunity Fund | | | | 158 | | | | | 100 | | |
| Overseas Equity Fund | | | | 396 | | | | | 87 | | |
| Value Fund | | | | 550 | | | | | 764 | | |
| | |
| Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required. |
| | |
| In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition |
| | |
66 | | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations. |
| |
| New Accounting Pronouncements: |
| |
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
| |
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Funds derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
| |
3. | Related Party Transactions |
| |
| Investment Management: |
| |
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the New York Tax-Free Bond Fund, Growth and Income Fund, and the Mid-Cap Fund. As Investment Adviser, HSBC manages the investments of the Funds and continuously reviews, supervises, and administers the Funds’ investments. Sub-Investment Adviser services are provided by Transamerica Investment Management, LLC (“Transamerica”) and Munder Capital Management (“Munder”) for the Growth and Income Fund and Mid-Cap Fund, respectively. |
| |
| For its services as Investment Adviser, HSBC is entitled to receive a fee, accrued daily and paid monthly, at an annual rate of 0.25% of the average daily net assets of the New York Tax-Free Bond Fund. |
| |
| For its services as Investment Adviser and Sub-Investment Adviser, respectively, HSBC and Transamerica receive, in the aggregate, a fee, accrued daily and paid monthly at an annual rate of 0.60% of the Growth and Income Fund’s average daily net assets. |
| |
| For its services as Investment Adviser and Sub-Investment Adviser, respectively, HSBC and Munder receive, in the aggregate, a fee, accrued daily and paid monthly at an annual rate of 0.75% of the Mid-Cap Fund’s average daily net assets. |
| |
| Feeder Funds are not directly charged any investment management fees. |
| |
| Administration: |
| |
| HSBC serves the Funds as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Funds a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | | |
| Based on Average Daily Net Assets of | | | Fee Rate | |
|
| | |
| |
| Up to $12 billion | | | | 0.0525 | % |
| In excess of $12 billion | | | | 0.0350 | % |
| |
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share |
| |
HSBC INVESTOR FAMILY OF FUNDS | 67 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| of net assets for each class. For assets invested in the underlying Portfolios by the Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half, for a combination of the total fee rate above. |
| |
| The administration fees accrued for each class by fund, of which 50% of such fees are deemed to be class specific, are as follows: |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | Core Plus
Fixed
Income
Fund
(Advisor) | | Core Plus
Fixed
Income
Fund | | High Yield
Fixed
Income
Fund | | Intermediate
Duration
Fixed
Income
Fund | | New York
Tax-Free
Bond Fund | | Growth
Fund | | Growth
and
Income
Fund | |
| | |
| |
| |
| |
| |
| |
| |
| |
| Class A | | $ | — | | $ | 1,486 | | $ | 422 | | $ | 129 | | $ | 7,175 | | $ | 2,996 | | $ | 416 | |
| Class B | | | — | | | 386 | | | 251 | | | 293 | | | 1,747 | | | 164 | | | 974 | |
| Class C | | | — | | | 10 | | | 31 | | | 33 | | | 141 | | | 10 | | | 9 | |
| Class I | | | 8,422 | | | — | | | 292 | | | 1,116 | | | 4,560 | | | 3,155 | | | 7,858 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Total | | $ | 8,422 | | $ | 1,882 | | $ | 996 | | $ | 1,571 | | $ | 13,623 | | $ | 6,325 | | $ | 9,257 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | | | |
| | | International
Equity Fund | | Mid-Cap
Fund | | Opportunity
Fund | | Opportunity
Fund
(Advisor) | | Overseas
Equity
Fund | | Value
Fund | |
| | |
| |
| |
| |
| |
| |
| |
| Class A | | $ | — | | $ | 1,122 | | $ | 1,438 | | $ | — | | $ | 1,413 | | $ | 2,615 | |
| Class B | | | — | | | 1,174 | | | 482 | | | — | | | 345 | | | 175 | |
| Class C | | | — | | | 16 | | | 34 | | | — | | | 14 | | | 13 | |
| Class I | | | 36,692 | | | 3,883 | | | — | | | 17,105 | | | — | | | 2,941 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Total | | $ | 36,692 | | $ | 6,195 | | $ | 1,954 | | $ | 17,105 | | $ | 1,772 | | $ | 5,744 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trust’s sub-administrator, subject to the general supervision of the Funds’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
| |
| Under a Compliance Services Agreement between the Funds and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Funds’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain expenses. Expenses incurred by each fund are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
| |
| Distribution Plan: |
| |
| Prior to August 1, 2007, BISYS Fund Services Limited Partnership (“BISYS”), a wholly-owned subsidiary of BISYS Fund Services, Inc., served the Trust as Distributor. Since August 1, 2007, Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trusts have adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the Funds, respectively. Foreside, as Distributor, also received $405,635, $247,179 and $12,433 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $396,664, $246,553 and $12,419 were reallowed to HSBC affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively. |
| |
| Shareholder Servicing: |
| |
| The Trusts have adopted a Shareholder Services Plan which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee up to 0.25%, 0.25%, and 0.25% that is computed daily and paid monthly |
| |
68 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| equal to a percentage of average daily net assets of Class A Shares, Class B Shares, and Class C Shares of the Funds, respectively. The aggregate fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Administrative Services Plans currently are not intended to exceed 0.25% of the average daily net assets of Class A Shares, and 1.00% of the average daily net assets of Class B Shares and Class C Shares. |
| |
| Fund Accounting, Transfer Agency, Custodian and Trustee: |
| |
| Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent for the Funds, Citi Ohio receives a fee based on the number of Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant for the Funds, Citi Ohio receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses. |
| |
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 69 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Fee Reductions: |
| |
| The Investment Adviser has agreed to contractually waive 0.05% of its management fee, computed daily and paid monthly, and based on the average daily net assets of the Growth and Income Fund and the Mid-Cap Fund. |
| |
| The Investment Adviser has also agreed to contractually limit, through March 1, 2009, the total expenses, exclusive of interest, taxes, brokerage commissions and extraordinary expenses, of certain Funds. Each affected Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: |
| | | |
| Fund | Class | Current Contractual
Expense
Limitation |
|
|
|
|
| Core Plus Fixed Income Fund (Advisor) | I | 0.45% |
| Core Plus Fixed Income Fund | A | 0.70% |
| Core Plus Fixed Income Fund | B | 1.45% |
| Core Plus Fixed Income Fund | C | 1.45% |
| High Yield Fixed Income Fund | A | 0.80% |
| High Yield Fixed Income Fund | B | 1.55% |
| High Yield Fixed Income Fund | C | 1.55% |
| High Yield Fixed Income Fund | I | 0.55% |
| Intermediate Duration Fixed Income Fund | A | 0.65% |
| Intermediate Duration Fixed Income Fund | B | 1.40% |
| Intermediate Duration Fixed Income Fund | C | 1.40% |
| Intermediate Duration Fixed Income Fund | I | 0.40% |
| Growth Fund | A | 1.20% |
| Growth Fund | B | 1.95% |
| Growth Fund | C | 1.95% |
| Growth Fund | I | 0.95% |
| Growth and Income Fund | A | 1.20% |
| Growth and Income Fund | B | 1.95% |
| Growth and Income Fund | C | 1.95% |
| Growth and Income Fund | I | 0.95% |
| Mid-Cap Fund | A | 1.35% |
| Mid-Cap Fund | B | 2.10% |
| Mid-Cap Fund | C | 2.10% |
| Mid-Cap Fund | I | 1.10% |
| Overseas Equity Fund | A | 1.85% |
| Overseas Equity Fund | B | 2.60% |
| Overseas Equity Fund | C | 2.60% |
| Opportunity Fund | A | 1.65% |
| Opportunity Fund | B | 2.40% |
| Opportunity Fund | C | 2.40% |
| Value Fund | A | 1.20% |
| Value Fund | B | 1.95% |
| Value Fund | C | 1.95% |
| Value Fund | I | 0.95% |
| |
| The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of the Funds. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. |
| |
70 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
4. | Investment Transactions |
| |
| Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2008 were as follows: |
| | | | | | | | |
| Fund | | Purchases | | Sales | |
|
| |
| |
| |
| New York Tax-Free Bond Fund | | $ | — | | $ | 3,346,426 | |
| Growth and Income Fund | | | 6,674,231 | | | 15,700,795 | |
| Mid-Cap Fund | | | 7,579,766 | | | 10,352,377 | |
| |
| There were no long-term U.S. Government securities held during the period ended April 30, 2008. |
| |
| Contributions and withdrawals of the respective Portfolios for the year ended April 30, 2008 totaled: |
| | | | | | | | |
| Fund | | | Contributions | | | Withdrawals | |
|
| |
| |
| |
| Core Plus Fixed Income Fund (Advisor) | | $ | 6,950,400 | | $ | 18,018,143 | |
| Core Plus Fixed Income Fund | | | 278,523 | | | 2,118,054 | |
| High Yield Fixed Income Fund | | | 889,031 | | | 701,696 | |
| Intermediate Duration Fixed Income Fund | | | 1,304,962 | | | 2,148,158 | |
| Growth Fund | | | 1,494,914 | | | 6,509,435 | |
| International Equity Fund | | | 15,075,675 | | | 41,184,448 | |
| Opportunity Fund | | | 555,838 | | | 3,556,621 | |
| Opportunity Fund (Advisor) | | | 5,119,887 | | | 24,652,274 | |
| Overseas Equity Fund | | | 189,328 | | | 3,594,616 | |
| Value Fund | | | 1,710,164 | | | 5,601,376 | |
| |
5. | Concentration of Credit Risk |
| |
| The New York Tax-Free Bond Fund invests primarily in debt obligations issued by the State of New York and its respective political subdivisions, agencies, and public authorities. The Fund is more susceptible to economic and political factors adversely affecting issuers of New York specific municipal securities than are municipal bond funds that are not concentrated in these issuers to the same extent. |
| |
6. | Federal Income Tax Information: |
| |
| At April 30, 2008, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows: |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Fund | | Tax Cost | | Tax
Unrealized
Appreciation | | Tax
Unrealized
Depreciation | | Net
Unrealized
Appreciation
(Depreciation) | |
|
| |
| |
| |
| |
| |
| New York Tax-Free Bond Fund | | $ | 58,168,494 | | $ | 1,514,445 | | $ | (385,118 | ) | $ | 1,129,327 | |
| Growth and Income Fund | | | 30,945,757 | | | 9,652,907 | | | (875,614 | ) | | 8,777,293 | |
| Mid-Cap Fund | | | 21,071,342 | | | 6,916,975 | | | (1,199,961 | ) | | 5,717,014 | |
| |
HSBC INVESTOR FAMILY OF FUNDS | 71 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| The tax character of dividends paid by the Funds as of the latest tax year ended year ended October 31, 2007 were as follows: |
| | | | | | | | | | | | | | | | |
| | Dividends paid from | |
| |
| |
| | Ordinary
Income | | Net
Long
Term
Capital
Gains | | Total
Taxable
Dividends | | Tax
Exempt
Distributions | | Total
Dividends
Paid(1) | |
| |
| |
| |
| |
| |
| |
Core Plus Fixed Income Fund (Advisor) | | $ | 4,297,819 | | $ | — | | $ | 4,297,819 | | $ | — | | $ | 4,297,819 | |
Core Plus Fixed Income Fund | | | 873,677 | | | — | | | 873,677 | | | — | | | 873,677 | |
High Yield Fixed Income Fund | | | 704,138 | | | — | | | 704,138 | | | — | | | 704,138 | |
Intermediate Duration Fixed Income Fund | | | 866,868 | | | — | | | 886,868 | | | — | | | 886,868 | |
New York Tax-Free Bond Fund | | | 19,599 | | | 9,094 | | | 28,693 | | | 2,085,602 | | | 2,114,295 | |
Growth Fund | | | 25,419 | | | 3,019,000 | | | 3,044,419 | | | — | | | 3,044,419 | |
Growth and Income Fund | | | 126,478 | | | — | | | 126,478 | | | — | | | 126,478 | |
International Equity Fund | | | 8,337,987 | | | 22,931,569 | | | 31,267,556 | | | — | | | 31,269,556 | |
Mid-Cap Fund | | | 647,121 | | | 1,300,752 | | | 1947,873 | | | — | | | 1,947,873 | |
Opportunity Fund | | | 75,818 | | | 3,560,217 | | | 3,636,035 | | | — | | | 3,636,035 | |
Opportunity Fund (Advisor) | | | 3,149,480 | | | 26,789,336 | | | 29,938,816 | | | — | | | 29,938,816 | |
Overseas Equity Fund | | | 667,589 | | | 2,786,165 | | | 3,453,754 | | | — | | | 3,453,754 | |
Value Fund | | | 677,034 | | | 4,064,790 | | | 4,741,824 | | | — | | | 4,741,824 | |
| |
| As of the latest tax year ended October 31, 2007, the components of accumulated earnings/(deficit) on a tax basis for the Funds were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | Undistributed
Ordinary
Income | | Undistributed
Tax
Exempt
Income | | Undistributed
Long
Term
Capital
Gains | | Accumulated
Earnings | | Dividends
Payable | | Accumulated
Capital
and
Other
Losses | | Unrealized
Appreciation/
(Depreciation)(2) | | Total
Accumulated
Earnings/
(Deficit) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Core Plus Fixed Income Fund (Advisor) | | $ | 502,414 | | $ | — | | $ | 562,425 | | $ | 1,064,839 | | $ | (382,197 | ) | $ | — | | $ | (166,918 | ) | $ | 515,724 | |
Core Plus Fixed Income Fund | | | 89,455 | | | — | | | — | | | 89,455 | | | (76,447 | ) | | (577,978 | ) | | (36,900 | ) | | (581,870 | ) |
High Yield Fixed Income Fund | | | 84,276 | | | — | | | 69,024 | | | 153,300 | | | (58,530 | ) | | — | | | (98,097 | ) | | (3,327 | ) |
Intermediate
Duration Fixed Income Fund | | | 87,279 | | | — | | | 53,298 | | | 140,577 | | | (64,168 | ) | | — | | | (83,160 | ) | | (6,751 | ) |
New York Tax-Free Bond Fund | | | 23,394 | | | 205,608 | | | 56,101 | | | 285,103 | | | (184,067 | ) | | — | | | 1,654,630 | | | 1,755,666 | |
Growth Fund | | | — | | | — | | | 2,892,354 | | | 2,892,354 | | | — | | | — | | | 15,509,956 | | | 18,402,310 | |
Growth and Income Fund | | | 5,574 | | | — | | | — | | | 5,574 | | | — | | | (5,725,929 | ) | | 17,649,148 | | | 11,928,793 | |
International Equity Fund | | | 10,638,534 | | | — | | | 24,126,978 | | | 34,765,512 | | | — | | | — | | | 100,539,759 | | | 135,305,271 | |
Mid-Cap Fund | | | — | | | — | | | 3,530,284 | | | 3,530,284 | | | — | | | — | | | 10,393,959 | | | 13,924,243 | |
Opportunity Fund | | | 1,084,596 | | | — | | | 4,953,733 | | | 6,038,329 | | | — | | | — | | | 4,335,184 | | | 10,373,513 | |
Opportunity Fund (Advisor) | | | 9,223,734 | | | — | | | 35,976,501 | | | 45,200,235 | | | — | | | — | | | 33,322,824 | | | 78,523,059 | |
Overseas Equity
Fund | | | 562,242 | | | — | | | 2,487,633 | | | 3,049,875 | | | — | | | — | | | 8,491,660 | | | 11,541,535 | |
Value Fund | | | 503,590 | | | — | | | 4,085,539 | | | 4,589,129 | | | — | | | — | | | 9,330,115 | | | 13,919,244 | |
| |
| The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings and any capital loss carryforwards will be determined at the end of the current tax year ending October 31, 2008. |
| |
72 | HSBC INVESTOR FAMILY OF FUNDS |
| |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| As of the latest tax year ended October 31, 2007, the following Funds have net capital carryforwards, which are available to offset future realized gains. |
| | | | | | | |
Fund | | Amount | | Expires | |
| |
| |
| |
Core Plus Fixed Income Fund | | $ | 185,453 | | | 2012 | |
| | | 372,525 | | | 2014 | |
Growth and Income Fund | | | 5,725,929 | | | 2011 | |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
| |
8. | Subsequent Event: |
| |
| At a board meeting in June 2008, the Board of Trustees approved a reorganization whereby, subject shareholder approval, the Growth Fund will acquire the assets and liabilities of the Growth and Income Fund. The reorganization is scheduled to be completed in the third quarter of 2008. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 73 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval—April 30, 2008 (Unaudited) |
The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”).
In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others:
| |
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale. |
| |
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size. |
| |
| Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
| |
| Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements.
| |
74 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 |
|
As a shareholder of the HSBC Investor Funds (“Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and /or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these cost with the ongoing costs of investing in other mutual funds. |
|
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008. |
|
Actual Example |
|
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account
Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Core Plus Fixed Income Fund (Advisor) | | Class I Shares | | | $ | 1,000.00 | | | | $ | 991.90 | | | | $ | 2.23 | | | | 0.45 | % | |
Core Plus Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 989.60 | | | | | 3.46 | | | | 0.70 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 985.90 | | | | | 7.16 | | | | 1.45 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 985.90 | | | | | 7.16 | | | | 1.45 | % | |
High Yield Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 983.50 | | | | | 3.95 | | | | 0.80 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 980.80 | | | | | 7.63 | | | | 1.55 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 979.70 | | | | | 7.63 | | | | 1.55 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 984.70 | | | | | 2.71 | | | | 0.55 | % | |
Intermediate Duration Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 985.10 | | | | | 3.21 | | | | 0.65 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 981.50 | | | | | 6.90 | | | | 1.40 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 982.50 | | | | | 6.90 | | | | 1.40 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 987.40 | | | | | 1.98 | | | | 0.40 | % | |
New York Tax-Free Bond Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,011.10 | | | | | 4.15 | | | | 0.83 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,007.40 | | | | | 7.94 | | | | 1.59 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,007.30 | | | | | 7.94 | | | | 1.59 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,012.40 | | | | | 2.90 | | | | 0.58 | % | |
Growth Fund | | Class A Shares | | | | 1,000.00 | | | | | 913.50 | | | | | 5.61 | | | | 1.18 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 909.80 | | | | | 9.21 | | | | 1.94 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 909.80 | | | | | 9.16 | | | | 1.93 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 914.40 | | | | | 4.43 | | | | 0.93 | % | |
Growth & Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 898.10 | | | | | 5.43 | | | | 1.15 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 893.90 | | | | | 8.99 | | | | 1.91 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 894.70 | | | | | 9.04 | | | | 1.92 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 898.60 | | | | | 4.30 | | | | 0.91 | % | |
International Equity Fund | | Class I Shares | | | | 1,000.00 | | | | | 891.80 | | | | | 4.09 | | | | 0.87 | % | |
| |
HSBC INVESTOR FAMILY OF FUNDS | 75 |
|
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account
Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Mid-Cap Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 893.80 | | | | $ | 6.36 | | | | 1.35 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 890.60 | | | | | 9.87 | | | | 2.10 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 890.70 | | | | | 9.87 | | | | 2.10 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 895.20 | | | | | 5.18 | | | | 1.10 | % | |
Overseas Equity Fund | | Class A Shares | | | | 1,000.00 | | | | | 887.70 | | | | | 7.98 | | | | 1.70 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 884.30 | | | | | 11.48 | | | | 2.45 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 883.90 | | | | | 11.48 | | | | 2.45 | % | |
Opportunity Fund | | Class A Shares | | | | 1,000.00 | | | | | 970.00 | | | | | 7.59 | | | | 1.55 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 967.00 | | | | | 11.25 | | | | 2.30 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 966.70 | | | | | 11.25 | | | | 2.30 | % | |
Opportunity Fund (Advisor) | | Class I Shares | | | | 1,000.00 | | | | | 973.10 | | | | | 4.76 | | | | 0.97 | % | |
Value Fund | | Class A Shares | | | | 1,000.00 | | | | | 892.90 | | | | | 5.60 | | | | 1.19 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 889.60 | | | | | 9.11 | | | | 1.94 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 889.40 | | | | | 9.11 | | | | 1.94 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 894.00 | | | | | 4.43 | | | | 0.94 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the on half year period). |
| |
76 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account
Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Core Plus Fixed Income Fund (Advisor) | | Class I Shares | | | $ | 1,000.00 | | | | $ | 1,022.63 | | | | $ | 2.26 | | | | 0.45 | % | |
Core Plus Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.38 | | | | | 3.52 | | | | 0.70 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,017.65 | | | | | 7.27 | | | | 1.45 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,017.65 | | | | | 7.27 | | | | 1.45 | % | |
High Yield Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,020.89 | | | | | 4.02 | | | | 0.80 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,017.16 | | | | | 7.77 | | | | 1.55 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,017.16 | | | | | 7.77 | | | | 1.55 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,022.13 | | | | | 2.77 | | | | 0.55 | % | |
Intermediate Duration Fixed Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.63 | | | | | 3.27 | | | | 0.65 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,017.90 | | | | | 7.02 | | | | 1.40 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,017.90 | | | | | 7.02 | | | | 1.40 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,022.87 | | | | | 2.01 | | | | 0.40 | % | |
New York Tax-Free Bond Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,020.74 | | | | | 4.17 | | | | 0.83 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,016.96 | | | | | 7.97 | | | | 1.59 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,016.96 | | | | | 7.97 | | | | 1.59 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,021.98 | | | | | 2.92 | | | | 0.58 | % | |
Growth Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,019.00 | | | | | 5.92 | | | | 1.18 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.22 | | | | | 9.72 | | | | 1.94 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.27 | | | | | 9.67 | | | | 1.93 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,020.24 | | | | | 4.67 | | | | 0.93 | % | |
Growth & Income Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,019.14 | | | | | 5.77 | | | | 1.15 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.37 | | | | | 9.57 | | | | 1.91 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.32 | | | | | 9.62 | | | | 1.92 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,020.34 | | | | | 4.57 | | | | 0.91 | % | |
International Equity Fund | | Class I Shares | | | | 1,000.00 | | | | | 1,020.54 | | | | | 4.37 | | | | 0.87 | % | |
Mid-Cap Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.15 | | | | | 6.77 | | | | 1.35 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,014.42 | | | | | 10.52 | | | | 2.10 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,014.42 | | | | | 10.52 | | | | 2.10 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,019.39 | | | | | 5.52 | | | | 1.10 | % | |
| |
HSBC INVESTOR FAMILY OF FUNDS | 77 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account
Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Overseas Equity Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,016.41 | | | | $ | 8.52 | | | | 1.70 | % | | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,012.68 | | | | | 12.26 | | | | 2.45 | % | | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,012.68 | | | | | 12.26 | | | | 2.45 | % | | |
Opportunity Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,017.16 | | | | | 7.77 | | | | 1.55 | % | | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.43 | | | | | 11.51 | | | | 2.30 | % | | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.43 | | | | | 11.51 | | | | 2.30 | % | | |
Opportunity Fund (Advisor) | | Class I Shares | | | | 1,000.00 | | | | | 1,020.04 | | | | | 4.87 | | | | 0.97 | % | | |
Value Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.95 | | | | | 5.97 | | | | 1.19 | % | | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.22 | | | | | 9.72 | | | | 1.94 | % | | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.22 | | | | | 9.72 | | | | 1.94 | % | | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,020.19 | | | | | 4.72 | | | | 0.94 | % | | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
78 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)
|
U.S. Government and Government Agency Obligations—44.7% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Federal Home Loan Mortgage Corp. – 5.4% | | | | | | | |
Pool #G12317, 5.50%, 8/1/21 | | | 1,010,527 | | | 1,029,768 | |
Pool #C00368, 8.50%, 10/1/24 | | | 25,145 | | | 27,806 | |
Pool #D62926, 6.50%, 8/1/25 | | | 19,382 | | | 20,300 | |
Pool #C80387, 6.50%, 4/1/26 | | | 25,425 | | | 26,630 | |
Pool #C00922, 8.00%, 2/1/30 | | | 158,266 | | | 171,412 | |
Pool #C54447, 7.00%, 7/1/31 | | | 32,528 | | | 34,553 | |
Pool #G01317, 7.00%, 10/1/31 | | | 126,963 | | | 134,868 | |
Pool #C60712, 6.50%, 11/1/31 | | | 523,373 | | | 546,203 | |
Pool #847557, 6.27%, 7/1/34 (a) | | | 725,693 | | | 731,227 | |
Pool #1B2655, 6.19%, 12/1/34 (a) | | | 573,830 | | | 578,809 | |
Pool #1J1313, 6.40%, 6/1/36 (a) | | | 1,325,088 | | | 1,359,223 | |
Pool #G02981, 6.00%, 6/1/37 | | | 1,094,552 | | | 1,120,748 | |
| | | | |
|
| |
| | | | | | 5,781,547 | |
| | | | |
|
| |
Federal National Mortgage Association – 21.4% | | | | | | | |
Pool #398958, 6.50%, 10/1/12 | | | 45,141 | | | 46,928 | |
Pool #781922, 5.00%, 2/1/21 | | | 2,113,781 | | | 2,127,364 | |
Pool #329655, 7.00%, 11/1/25 | | | 37,964 | | | 40,430 | |
Pool #329530, 7.00%, 12/1/25 | | | 80,18 | | | 85,395 | |
Pool #535332, 8.50%, 4/1/30 | | | 36,972 | | | 40,683 | |
Pool #548965, 8.50%, 7/1/30 | | | 43,392 | | | 47,759 | |
Pool #535440, 8.50%, 8/1/30 | | | 40,948 | | | 45,068 | |
Pool #253438, 8.50%, 9/1/30 | | | 34,776 | | | 38,275 | |
Pool #568486, 7.00%, 1/1/31 | | | 38,557 | | | 41,072 | |
Pool #573752, 8.50%, 2/1/31 | | | 29,606 | | | 32,586 | |
Pool #575328, 6.50%, 4/1/31 | | | 48,871 | | | 50,950 | |
Pool #356905, 7.14%, 10/1/36 (a) | | | 158,127 | | | 160,622 | |
Pool #922090, 5.89%, 3/1/37 (a) | | | 1,687,062 | | | 1,726,031 | |
Pool #256723, 6.50%, 5/1/37 | | | 1,082,672 | | | 1,121,397 | |
TBA May | | | | | | | |
5.50%, 5/15/37 | | | 11,360,000 | | | 11,420,344 | |
6.00%, 5/15/37 | | | 4,800,000 | | | 4,906,502 | |
5.00%, 5/13/38 | | | 1,000,000 | | | 982,188 | |
| | | | |
|
| |
| | | | | | 22,913,594 | |
| | | | |
|
| |
Government National Mortgage Association – 1.3% | | | | | | | |
Pool #346406, 7.50%, 2/15/23 | | | 43,619 | | | 46,941 | |
Pool #412530, 7.50%, 12/15/25 | | | 70,471 | | | 75,919 | |
Pool #781300, 7.00%, 6/15/31 | | | 121,223 | | | 129,833 | |
May, 6.00%, 5/15/37, TBA | | | 1,080,000 | | | 1,109,363 | |
| | | | |
|
| |
| | | | | | 1,362,056 | |
| | | | |
|
| |
U.S. Treasury Bonds – 3.2% | | | | | | | |
6.25%, 8/15/23 | | | 1,290,000 | | | 1,552,536 | |
5.00%, 5/15/37 | | | 1,775,000 | | | 1,923,656 | |
| | | | |
|
| |
| | | | | | 3,476,192 | |
| | | | |
|
| |
U.S. Treasury Notes – 13.4% | | | | | | | |
3.13%, 11/30/09 | | | 1,100,000 | | | 1,116,157 | |
2.00%, 2/28/10 | | | 2,573,000 | | | 2,561,543 | |
4.75%, 1/31/12 | | | 1,475,000 | | | 1,579,057 | |
3.63%, 12/31/12 | | | 2,000,000 | | | 2,053,750 | |
2.50%, 3/31/13 | | | 1,014,000 | | | 989,442 | |
4.75%, 8/15/17 | | | 1,445,000 | | | 1,556,762 | |
4.25%, 11/15/17 | | | 765,000 | | | 794,644 | |
3.50%, 2/15/18 | | | 3,785,000 | | | 3,704,569 | |
| | | | |
|
| |
| | | | | | 14,355,924 | |
| | | | |
|
| |
|
U.S. Government and Government Agency Obligations, cont’d |
|
| | | | | | | |
| | Principal
Amount ($) | | Value ($) | |
| |
| |
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS
(COST $47,954,905) | | | | | | 47,889,313 | |
| | | | |
|
| |
Corporate Obligations—32.9% | | | | | | | |
|
|
|
|
|
|
|
|
Agricultural Chemicals – 0.6% | | | | | | | |
Cargill, Inc., 5.60%, 9/15/12 (b) | | | 600,000 | | | 604,795 | |
| | | | |
|
| |
Banking – 2.0% | | | | | | | |
American Express Centurion Bank,
5.95%, 6/12/17 | | | 700,000 | | | 702,045 | |
Washington Mutual Bank NV | | | | | | | |
2.95%, 6/16/10 (a) | | | 750,000 | | | 674,774 | |
3.31%, 2/4/11 (a) | | | 400,000 | | | 353,453 | |
Washington Mutual, Inc., 3.20%, 9/17/12 (a) | | | 500,000 | | | 424,767 | |
| | | | |
|
| |
| | | | �� | | 2,155,039 | |
| | | | |
|
| |
Building & Construction Products – 1.0% | | | | | | | |
Martin Marietta Materials, Inc.,
3.40%, 4/30/10 (a) | | | 600,000 | | | 582,220 | |
Masco Corp., 3.20%, 3/12/10 (a) | | | 550,000 | | | 510,211 | |
| | | | |
|
| |
| | | | | | 1,092,431 | |
| | | | |
|
| |
Consumer Products – 0.9% | | | | | | | |
Clorox Co. (The), 5.45%, 10/15/12 | | | 900,000 | | | 909,151 | |
| | | | |
|
| |
Electric – 5.3% | | | | | | | |
Commonwealth Edison Co., 6.45%,
1/15/38 | | | 700,000 | | | 689,812 | |
Duke Energy Carolinas LLC,
5.10%, 4/15/18 | | | 450,000 | | | 447,181 | |
MidAmerican Energy Co., 5.95%, 7/15/17 | | | 2,900,000 | | | 3,022,452 | |
Progress Energy, Inc., 3.47%, 11/14/08,
Callable 8/14/08 @ 100 (a) | | | 1,000,000 | | | 996,246 | |
Puget Sound Energy, Inc., 6.97%, 6/1/67,
Callable 6/1/17 @ 100 | | | 600,000 | | | 538,842 | |
| | | | |
|
| |
| | | | | | 5,694,533 | |
| | | | |
|
| |
Finance – 5.7% | | | | | | | |
American Honda Finance Corp.,
4.63%, 4/2/13, MTN (b) | | | 250,000 | | | 245,634 | |
Caterpillar Financial Services Corp.,
5.45%, 4/15/18, MTN | | | 350,000 | | | 355,011 | |
Citigroup, Inc., 6.88%, 3/5/38 | | | 450,000 | | | 465,393 | |
Ford Motor Credit Co., LLC | | | | | | | |
9.75%, 9/15/10 | | | 1,550,000 | | | 1,505,828 | |
7.25%, 10/25/11 | | | 150,000 | | | 135,085 | |
MetLife Global Funding I,
5.13%, 4/10/13 (b) | | | 350,000 | | | 349,978 | |
Morgan Stanley, Series F,
6.00%, 4/28/15, MTN | | | 365,000 | | | 364,444 | |
Pacific Life Global Funding,
5.15%, 4/15/13 (b) | | | 250,000 | | | 250,239 | |
Preferred Term Securities Ltd.,
8.79%, 9/15/30, Callable 9/15/10
@ 104.395 (b) | | | 778,066 | | | 815,647 | |
Wells Fargo Financial, 5.50%, 8/1/12 | | | 850,000 | | | 876,325 | |
XTRA Finance Corp., 5.15%, 4/1/17 | | | 750,000 | | | 760,705 | |
| | | | |
|
| |
| | | | | | 6,124,289 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 79 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Hospitals – 1.1% | | | | | | | |
Covidien International Finance SA,
5.45%, 10/15/12 (b) | | | 550,000 | | | 554,508 | |
HCA, Inc., 5.75%, 3/15/14 | | | 750,000 | | | 648,750 | |
| | | | |
|
| |
| | | | | | 1,203,258 | |
| | | | |
|
| |
Media – 0.8% | | | | | | | |
News America Holdings, 7.90%, 12/1/95 | | | 500,000 | | | 540,975 | |
Vivendi, 5.75%, 4/4/13 (b) | | | 350,000 | | | 342,094 | |
| | | | |
|
| |
| | | | | | 883,069 | |
| | | | |
|
| |
Medical – 1.0% | | | | | | | |
AstraZeneca plc, 5.90%, 9/15/17 | | | 1,000,000 | | | 1,058,813 | |
| | | | |
|
| |
Office Equipment & Services – 0.5% | | | | | | | |
Xerox Corp., 3.51%, 12/18/09 (a) | | | 550,000 | | | 540,478 | |
| | | | |
|
| |
Retail – 3.2% | | | | | | | |
Home Depot, Inc., 5.88%, 12/16/36 | | | 1,300,000 | | | 1,086,812 | |
Kohl’s Corp., 6.25%, 12/15/17 | | | 550,000 | | | 534,078 | |
Kroger Co. (The), 5.00%, 4/15/13 | | | 250,000 | | | 251,174 | |
Wal-Mart Stores, Inc., 6.50%, 8/15/37 | | | 1,500,000 | | | 1,591,907 | |
| | | | |
|
| |
| | | | | | 3,463,971 | |
| | | | |
|
| |
Telecommunications – 5.2% | | | | | | | |
AOL Time Warner, Inc. | | | | | | | |
6.88%, 5/1/12 | | | 600,000 | | | 625,051 | |
7.70%, 5/1/32 | | | 550,000 | | | 595,717 | |
AT&T, Inc., 5.50%, 2/1/18 | | | 750,000 | | | 749,874 | |
BellSouth Telecommunications,
7.00%, 12/1/95 | | | 700,000 | | | 696,868 | |
Sprint Nextel Corp., 6.00%, 12/1/16 | | | 535,000 | | | 436,025 | |
Time Warner Entertainment Co.,
8.38%, 3/15/23 | | | 800,000 | | | 902,014 | |
Verizon Communications, Inc.,
6.10%, 4/15/18 | | | 1,500,000 | | | 1,572,743 | |
| | | | |
|
| |
| | | | | | 5,578,292 | |
| | | | |
|
| |
Transportation – 5.6% | | | | | | | |
American Airlines, Inc., Series 2001-2, | | | | | | | |
Class A1, 6.98%, 4/1/11 | | | 525,512 | | | 517,629 | |
American Airlines, Inc., Series 2001-2, | | | | | | | |
Class A2, 7.86%, 10/1/11 | | | 1,250,000 | | | 1,250,000 | |
Burlington North Santa Fe | | | | | | | |
5.65%, 5/1/17 | | | 600,000 | | | 603,775 | |
7.57%, 1/2/21 | | | 280,926 | | | 305,653 | |
Continental Airlines, Inc., 5.98%, 4/19/22 | | | 750,000 | | | 653,437 | |
Norfolk Southern Corp., 5.75%, 4/1/18 (b) | | | 250,000 | | | 253,538 | |
Union Pacific Corp. | | | | | | | |
5.75%, 11/15/17 | | | 1,200,000 | | | 1,214,893 | |
6.85%, 1/2/19 | | | 1,104,592 | | | 1,189,391 | |
| | | | |
|
| |
| | | | | | 5,988,316 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $35,414,826) | | | | | | 35,296,435 | |
| | | | |
|
| |
|
Asset Backed Securities—9.3% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Americredit Automobile Receivables | | | | | |
Trust, Series 2005-CF, Class A3,
4.47%, 5/6/10 (g) | | | 123,064 | | | 123,101 | |
Asset Backed Funding Certificates,
Series 2003-AHL1, Class A1,
3.68%, 3/25/33 | | | 738,743 | | | 615,694 | |
Cairn Mezzanine plc, Series 2007-3A,
Class B1, 3.97%, 8/13/47 (a)(b) | | | 905,000 | | | 45,250 | |
Capital Auto Receivables Asset Trust | | | | | | | |
Series 2006-SN1A, Class A3,
5.31%, 10/20/09 (b)(g) | | | 304,182 | | | 304,890 | |
Series 2007-SN1, Class A3B,
2.78%, 7/15/10 (a)(g) | | | 860,000 | | | 850,689 | |
Countrywide Asset-Backed Certificates,
Series 2006-S4, Class A3,
5.80%, 7/25/34 | | | 1,060,000 | | | 812,166 | |
Dominos Pizza Master Issuer LLC,
Series 2007-1, Class A2,
5.26%, 4/25/37 (b) | | | 1,200,000 | | | 1,026,305 | |
Duane Street CLO, Series 2007-4A,
Class C, 4.07%, 11/14/21 (a)(b) | | | 850,000 | | | 667,250 | |
GE Business Loan Trust, Series 2006-2A,
Class A, 2.90%, 11/15/34 (a)(b)(g) | | | 1,422,685 | | | 1,349,761 | |
GE Equipment Small Ticket LLC,
Series 2005-2A, Class A3,
4.88%, 10/22/09 (b)(g) | | | 725,482 | | | 724,575 | |
GMAC Mortgage Corp., Loan Trust,
Series 2006-HE3, Class A3,
5.81%, 10/25/36 | | | 900,000 | | | 419,137 | |
MBNA Credit Card Master Note Trust,
Series 2005-A7, Class A7,
4.30%, 2/15/11 (g) | | | 930,000 | | | 931,759 | |
Nissan Auto Receivables Owner Trust,
Series 2006-B, Class A3, 5.16%, 2/15/10 (g) | | | 1,110,750 | | | 1,117,946 | |
Preferred Term Securities XXII Ltd.,
3.14%, 9/22/36, Callable
6/22/11 @ 100 (a)(b)(g) | | | 1,088,695 | | | 937,693 | |
| | | | |
|
| |
TOTAL ASSET BACKED SECURITIES
(COST $12,064,272) | | | | | | 9,926,216 | |
| | | | |
|
| |
| | | | | | | |
Collateralized Mortgage Obligations—5.9% | | | | | | | |
|
|
|
|
|
|
|
|
Banc of America Mortgage Securities,
Series 2005-D, Class 2A4,
4.78%, 5/25/35 (a) | | | 1,100,000 | | | 1,095,077 | |
Deutsche Mortgage Securities, Inc.,
Series 2005-WF1, Class 1A1,
5.08%, 6/26/35 (a)(b) | | | 987,156 | | | 976,037 | |
Fannie Mae IO | | | | | | | |
Series 270, Class 2, 8.50%, 9/1/23 (c) | | | 41,654 | | | 11,454 | |
Series 296, Class 2, 8.00%, 4/1/24 (c) | | | 49,508 | | | 12,603 | |
Series 2000-16, Class PS,
5.71%, 10/25/29 (a) | | | 28,146 | | | 1,018 | |
Series 2000-32, Class SV,
5.87%, 3/18/30 (a) | | | 3,616 | | | 18 | |
Series 306, Class IO, 8.00%, 5/1/30 (c) | | | 56,658 | | | 13,082 | |
Series 2001-4, Class SA,
4.83%, 2/17/31 (a) | | | 198,831 | | | 16,829 | |
FHA Weyerhauser, 7.43%, 1/1/24 (d)(e) | | | 26,696 | | | 26,696 | |
| | |
80 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)
|
Collateralized Mortgage Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Freddie Mac | | | | | | | |
Series 2988, Class AF,
3.02%, 6/15/35 (a)(g) | | | 1,051,271 | | | 1,012,900 | |
Series 3212, Class BK, 5.40%, 9/15/36 | | | 900,000 | | | 894,715 | |
Freddie Mac IO | | | | | | | |
Series 1534, Class K, 4.65%, 6/15/23 (a) | | | 132,203 | | | 14,066 | |
Series 2141, Class SD, 5.43%, 4/15/29 (a) | | | 108,040 | | | 15,084 | |
Series 2247, Class SC, 4.78%, 8/15/30 (a) | | | 54,312 | | | 4,992 | |
Government National Mortgage | | | | | | | |
Association IO | | | | | | | |
Series 1999-30, Class SA,
5.29%, 4/16/29 (a) | | | 68,157 | | | 4,174 | |
Series 1999-30, Class S,
5.89%, 8/16/29 (a) | | | 50,811 | | | 4,645 | |
Morgan Stanley Mortgage Loan Trust,
Series 2006-3AR, Class 2A3,
5.82%, 3/25/36 (a) | | | 1,192,445 | | | 992,204 | |
Residential Asset Securitization Trust,
Series 2003-A15, Class 1A2,
3.35%, 2/25/34 (a)(g) | | | 1,492,962 | | | 1,285,496 | |
| | | | |
|
| |
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (COST $6,771,206) | | | | | | 6,381,090 | |
| | | | |
|
| |
| | | | | | | |
Commercial Mortgage Backed Securities—12.3% | | | | | | | |
|
|
|
|
|
|
|
|
Banc of America Commercial | | | | | | | |
Mortgage, Inc., Series 2006-4,
Class A4, 5.63%, 7/10/46 | | | 1,540,000 | | | 1,531,906 | |
Bear Stearns Commercial Mortgage | | | | | | | |
Securities, Inc., Series 2006-T24,
Class A4, 5.43%, 10/12/41 | | | 1,100,000 | | | 1,087,476 | |
Citigroup Commercial Mortgage Trust,
Series 2006-C5, Class A2,
5.38%, 10/15/49 | | | 1,100,000 | | | 1,096,487 | |
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD4,
Class A2B, 5.21%, 12/11/49 | | | 1,300,000 | | | 1,282,318 | |
Commercial Mortgage Pass-Through Certificate
Series 2006-FL12, Class A2,
2.82%, 12/15/20 (a)(b)(g) | | | 1,508,392 | | | 1,437,272 | |
Series 2005-LP5, Class AJ,
5.05%, 5/10/43 | | | 1,550,000 | | | 1,414,690 | |
CWCapital Cobalt,
Series 2006-C1, Class A2,
5.17%, 8/15/48 | | | 1,232,000 | | | 1,219,597 | |
DLJ Mortgage Acceptance Corp., IO,
Series 1997-CF1, Class S,
1.18%, 5/15/30 (a)(b)(e) | | | 19,068 | | | 1 | |
GS Mortgage Securities Corp., IO,
Series 1997-GL, Class X2,
0.29%, 7/13/30 (a)(e) | | | 36,108 | | | 493 | |
Morgan Stanley Capital I | | | | | | | |
Series 2006-HQ10, Class A4,
5.33%, 11/12/41 | | | 1,000,000 | | | 973,657 | |
Series 2007-IQ14, Class A2,
5.61%, 4/15/49 | | | 1,380,000 | | | 1,374,627 | |
Series 2007-IQ14, Class AM,
5.88%, 4/15/49 (a) | | | 990,000 | | | 913,236 | |
|
Commercial Mortgage Backed Securities, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Washington Mutual Commercial | | | | | | | |
Mortgage Securities Trust,
Series 2006-SL1, Class A,
5.42%, 11/23/43 (a)(b) | | | 973,418 | | | 873,545 | |
| | | | |
|
| |
TOTAL COMMERCIAL MORTGAGE
BACKED SECURITIES
(COST $13,589,909) | | | | | | 13,205,305 | |
| | | | |
|
| |
| | | | | | | |
Foreign Bonds—3.0% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
Iceland – 1.0% | | | | | | | |
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) | | | 1,250,000 | | | 1,046,872 | |
| | | | |
|
| |
South Korea – 1.3% | | | | | | | |
Citibank Korea, Inc., 4.68%, 6/18/13,
Callable 6/18/08 @ 100 (a) | | | 1,400,000 | | | 1,402,292 | |
| | | | |
|
| |
United Kingdom – 0.7% | | | | | | | |
Barclays Bank plc, 5.93%, 12/31/49 (b) | | | 850,000 | | | 717,691 | |
| | | | |
|
| |
| | | | | | | |
TOTAL FOREIGN BONDS
(COST $3,502,358) | | | | | | 3,166,855 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 81 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Northern Institutional Diversified | | | | | | | |
Assets Portfolio, Shares class,
2.33% (f) | | | 11,993,552 | | | 11,993,552 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $11,993,551) | | | | | | 11,993,552 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $131,291,027) — 119.3% | | | | | | 127,858,766 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $107,150,902. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | Interest-Only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an Interest-Only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate adjusts periodically based on the pay off of the underlying mortgage.The interest rate presented represents the rates in effect on April 30, 2008. The principal amount shown is the notional amount of the underlying mortgages. |
| |
(d) | Security was fair valued as of April 30, 2008. Represents 0.02% of net assets. |
| |
(e) | Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 0.02% of total net assets. |
| |
(f) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(g) | Security held as collateral for to be announced securities. |
| |
FHA | — Federal Housing Administration |
IO | — Interest-Only security. Represents 0.09% of net assets. |
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.2% of net assets. |
| | |
82 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stock—0.0% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares or
Principal
Amount($) | | Value($) | |
| |
| |
| |
Consumer Discretionary – 0.0% | | | | | | | |
Tembec, Inc. (a) | | | 937 | | | 3,629 | |
| | | | |
|
| |
Total Common Stock (Cost $18,548) | | | | | | 3,629 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations—95.5% | | | | | | | |
|
|
|
|
|
|
|
|
Advertising – 1.9% | | | | | | | |
Iron Mountain, Inc., 8.63%, 4/1/13,
Callable 4/1/09 @ 100 | | | 100,000 | | | 101,750 | |
Lamar Media Corp., 6.63%, 8/15/15,
Callable 8/15/10 @ 103.31 | | | 50,000 | | | 47,125 | |
R.H. Donnelley Corp., 6.88%, 1/15/13,
Callable 1/15/09 @ 103.44 | | | 100,000 | | | 64,000 | |
R.H. Donnelley Corp., 6.88%, 1/15/13,
Callable 1/15/09 @ 103.44 | | | 90,000 | | | 57,600 | |
| | | | |
|
| |
| | | | | | 270,475 | |
| | | | |
|
| |
Aerospace & Defense – 2.1% | | | | | | | |
DAE Aviation Holdings, Inc., 11.25%,
8/1/15, Callable 8/1/11 @ 105.62 (b) | | | 50,000 | | | 50,813 | |
DRS Technologies, Inc., 7.63%, 2/1/18,
Callable 2/1/11 @ 103.81 | | | 100,000 | | | 102,000 | |
L-3 Communications Holdings, Inc., 5.88%,
1/15/15, Callable 1/15/10 @ 102.94 | | | 100,000 | | | 97,000 | |
TransDigm Group, Inc., 7.75%, 7/15/14,
Callable 7/15/09 @ 105.81 | | | 50,000 | | | 51,125 | |
| | | | |
|
| |
| | | | | | 300,938 | |
| | | | |
|
| |
Apparel Manufacturers – 1.6% | | | | | | | |
Hanesbrands, Inc., 8.20%, 12/15/14,
Callable 12/15/08 @ 102.00 (c) | | | 50,000 | | | 47,125 | |
Levi Strauss & Co., 8.88%, 4/1/16,
Callable 4/1/11 @ 104.44 | | | 50,000 | | | 50,875 | |
Quiksilver, Inc., 6.88%, 4/15/15,
Callable 4/15/10 @ 103.44 | | | 150,000 | | | 124,500 | |
| | | | |
|
| |
| | | | | | 222,500 | |
| | | | |
|
| |
Auto Manufacturers – 2.4% | | | | | | | |
Cooper Tire & Rubber Co.,
8.00%, 12/15/19 | | | 50,000 | | | 47,625 | |
Cooper-Standard Automotive, Inc., 8.38%,
12/15/14, Callable 12/15/09 @ 104.19 | | | 50,000 | | | 41,250 | |
General Motors Corp., 7.13%, 7/15/13 | | | 175,000 | | | 142,625 | |
General Motors Corp., 7.70%, 4/15/16 | | | 50,000 | | | 39,000 | |
The Goodyear Tire & Rubber Co., 8.63%,
12/1/11, Callable 12/1/09 @ 104.31 | | | 17,000 | | | 18,275 | |
TRW Automotive, Inc., 7.25%, 3/15/17 (b) | | | 50,000 | | | 48,687 | |
| | | | |
|
| |
| | | | | | 337,462 | |
| | | | |
|
| |
Automotive & Transport – 0.7% | | | | | | | |
AutoNation, Inc., 7.00%, 4/15/14,
Callable 4/15/09 @ 105.25 | | | 50,000 | | | 46,875 | |
Penske Automotive Group, Inc., 7.75%,
12/15/16, Callable 12/15/11 @ 103.88 | | | 50,000 | | | 45,500 | |
| | | | |
|
| |
| | | | | | 92,375 | |
| | | | |
|
| |
Building & Construction Products – 1.5% | | | | | | | |
Interline Brands, Inc., 8.13%, 6/15/14,
Callable 6/15/10 @ 104.06 | | | 50,000 | | | 48,625 | |
Ply Gem Industries, Inc., 9.00%, 2/15/12,
Callable 2/15/08 @ 102.25 | | | 150,000 | | | 114,750 | |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Building & Construction Products, continued | | | | | | | |
U.S. Concrete, Inc., 8.38%, 4/1/14,
Callable 4/1/09 @ 104.19 | | | 50,000 | | | 40,500 | |
| | | | |
|
| |
| | | | | | 203,875 | |
| | | | |
|
| |
Cable Television – 3.4% | | | | | | | |
Barrington Broadcasting Group LLC,
10.50%, 8/15/14, Callable 8/15/10
@ 105.25 | | | 50,000 | | | 44,000 | |
Bonten Media Acquisition, 9.00%,
6/1/15, Callable 6/1/11 @ 104.50 (b) | | | 75,000 | | | 60,937 | |
Cablevision Systems Corp., 8.00%, 4/15/12 | | | 100,000 | | | 99,500 | |
Charter Communications Operating LLC,
10.88%, 9/15/14, Callable
3/15/12 @ 105.44 (b) | | | 50,000 | | | 52,875 | |
General Cable Technologies Corp.,
7.13%, 4/1/17, Callable 4/1/12 @ 103.56 | | | 50,000 | | | 48,750 | |
Mediacom LLC, 7.88%, 2/15/11 | | | 100,000 | | | 94,500 | |
Quebecor Media, Inc., 7.75%, 3/15/16,
Callable 3/15/11 @ 103.88 | | | 25,000 | | | 24,063 | |
Videotron Ltd., 9.13%, 4/15/18,
Callable 4/15/13 @ 104.56 (b) | | | 50,000 | | | 53,250 | |
| | | | |
|
| |
| | | | | | 477,875 | |
| | | | |
|
| |
Casinos & Gambling – 8.5% | | | | | | | |
Choctaw Resort Development
Entertainment, 7.25%, 11/15/19,
Callable 11/15/11 @ 103.63 (b) | | | 46,000 | | | 40,480 | |
Fontainebleau Las Vegas, 10.25%,
6/15/15, Callable 6/15/11 @ 105.13 (b) | | | 100,000 | | | 71,750 | |
Great Canadian Gaming Co., 7.25%,
2/15/15, Callable 2/15/11 @ 103.63 (b) | | | 50,000 | | | 48,000 | |
Greektown Holdings, Inc., 10.75%,
12/1/13, Callable 12/1/10 @ 105.38 (b) | | | 125,000 | | | 115,000 | |
Herbst Gaming, Inc., 7.00%, 11/15/14,
Callable 11/15/09 @ 103.50 | | | 50,000 | | | 11,000 | |
Indianapolis Downs LLC, 11.00%, 11/1/12,
Callable 11/1/10 @ 105.50 (b) | | | 25,000 | | | 22,500 | |
Inn of the Mountain Gods, 12.00%, 11/15/10,
Callable 11/15/08 @ 103.00 | | | 50,000 | | | 43,250 | |
Isle of Capri Casinos, Inc., 7.00%, 3/1/14,
Callable 3/1/09 @ 103.50 | | | 150,000 | | | 115,500 | |
Mashantucket Pequot Tribal Nation,
Series A, 8.50%, 11/15/15,
Callable 11/15/11 @ 104.25 (b) | | | 50,000 | | | 45,438 | |
MGM MIRAGE, Inc., 6.75%, 4/1/13 | | | 100,000 | | | 92,000 | |
Mohegan Tribal Gaming, 7.13%, 8/15/14,
Callable 8/15/09 @ 103.56 | | | 50,000 | | | 42,875 | |
MTR Gaming Group, Inc., 9.00%, 6/1/12,
Callable 6/1/09 @ 104.50 | | | 100,000 | | | 79,500 | |
Pinnacle Entertainment, 7.50%, 6/15/15,
Callable 6/15/11 @ 103.75 (b) | | | 50,000 | | | 41,375 | |
Pokagon Gaming Authority, 10.38%,
6/15/14, Callable 6/15/10 @ 105.19 (b) | | | 69,000 | | | 73,657 | |
San Pasqual Casino, 8.00%, 9/15/13,
Callable 9/15/09 @ 104.00 (b) | | | 25,000 | | | 23,313 | |
Scientific Games Corp., 6.25%, 12/15/12,
Callable 12/15/08 @ 103.13 | | | 50,000 | | | 46,250 | |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 83 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Casinos & Gambling, continued | | | | | | | |
Seminole Hard Rock Entertainment,
5.30%, 3/15/14, Callable 3/15/09
@ 102.00 (b)(c) | | | 50,000 | | | 41,875 | |
Seneca Gaming Corp., 7.25%, 5/1/12,
Callable 5/1/08 @ 103.63 | | | 50,000 | | | 48,312 | |
Shingle Springs, 9.38%, 6/15/15,
Callable 6/15/11 @ 104.69 (b) | | | 50,000 | | | 44,250 | |
Turning Stone Resort Casino, 9.13%,
9/15/14, Callable 9/15/10 @ 104.56 (b) | | | 75,000 | | | 73,875 | |
Waterford Gaming LLC, 8.63%, 9/15/14 (b) | | | 23,000 | | | 22,195 | |
Wynn Las Vegas LLC, 6.63%, 12/1/14,
Callable 12/1/09 @ 103.31 (b) | | | 50,000 | | | 48,750 | |
| | | | |
|
| |
| | | | | | 1,191,145 | |
| | | | |
|
| |
Chemicals – 3.2% | | | | | | | |
Georgia Gulf Corp., 9.50%, 10/15/14,
Callable 10/15/10 @ 104.75 | | | 100,000 | | | 84,500 | |
Huntsman International LLC, 7.88%,
11/15/14, Callable 11/15/10 @ 103.94 | | | 35,000 | | | 36,925 | |
Innophos, Inc., 8.88%, 8/15/14,
Callable 8/16/09 @ 104.44 | | | 50,000 | | | 49,750 | |
JohnsonDiversey, Inc., 9.63%, 5/15/12,
Callable 5/15/08 @ 103.21 | | | 100,000 | | | 101,000 | |
Momentive Performance Materials, Inc.,
9.75%, 12/1/14, Callable 12/1/10
@ 104.88 | | | 50,000 | | | 48,500 | |
Mosaic Co., 7.88%, 12/1/16, Callable
12/1/11 @ 103.81 (b) | | | 25,000 | | | 27,375 | |
Nova Chemicals Corp., 6.50%, 1/15/12 | | | 50,000 | | | 47,000 | |
Terra Capital, Inc., 7.00%, 2/1/17,
Callable 2/1/12 @ 103.50 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
| | | | | | 444,800 | |
| | | | |
|
| |
Computer Services – 0.6% | | | | | | | |
Activant Solutions, Inc., 9.50%, 5/1/16,
Callable 5/1/11 @ 104.75 | | | 50,000 | | | 42,000 | |
Unisys Corp., 12.50%, 1/15/16,
Callable 1/15/12 @ 106.25 | | | 35,000 | | | 36,400 | |
| | | | |
|
| |
| | | | | | 78,400 | |
| | | | |
|
| |
Consumer Products – 1.7% | | | | | | | |
Constellation Brands, Inc., 8.38%, 12/15/14 | | | 50,000 | | | 53,000 | |
Sealy Mattress Co., 8.25%, 6/15/14,
Callable 6/15/09 @ 104.13 | | | 50,000 | | | 44,125 | |
Smithfield Foods, Inc., 7.75%, 7/1/17 | | | 50,000 | | | 49,625 | |
Spectrum Brands, Inc., 7.38%, 2/1/15,
Callable 2/1/10 @ 103.69 | | | 75,000 | | | 49,875 | |
Yankee Acquisition Corp., 9.75%,
2/15/17, Callable 2/15/12 @ 104.88 | | | 50,000 | | | 40,125 | |
| | | | |
|
| |
| | | | | | 236,750 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Containers - Paper and Plastic – 2.5% | | | | | | | |
Owens-Brockway Glass Containers, 6.75%,
12/1/14, Callable 12/1/09 @ 103.38 | | | 50,000 | | | 50,750 | |
Solo Cup Co., 8.50%, 2/15/14, Callable
2/15/09 @ 104.25 | | | 200,000 | | | 174,000 | |
Stone Container Finance Co. of Canada,
7.38%, 7/15/14, Callable 7/15/09
@ 103.69 | | | 150,000 | | | 126,000 | |
| | | | |
|
| |
| | | | | | 350,750 | |
| | | | |
|
| |
Cosmetics – 0.4% | | | | | | | |
Chattem, Inc., 7.00%, 3/1/14,
Callable 3/1/09 @ 103.50 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
| | | | | | 49,750 | |
| | | | |
|
| |
Distribution & Wholesale – 1.9% | | | | | | | |
Baker & Taylor, Inc., 11.50%, 7/1/13,
Callable 7/1/10 @ 105.75 (b) | | | 100,000 | | | 90,000 | |
Beverages & More, Inc., 9.25%, 3/1/12,
Callable 9/1/09 @ 104.63 (b) | | | 50,000 | | | 48,500 | |
Central Garden & Pet Co., 9.13%, 2/1/13,
Callable 2/1/09 @ 103.04 | | | 50,000 | | | 42,250 | |
Jarden Corp., 7.50%, 5/1/17, Callable
5/1/12 @ 103.75 | | | 25,000 | | | 23,000 | |
Pegasus Solutions, Inc., 10.50%, 4/15/15,
Callable 4/15/11 @ 105.25 (b) | | | 50,000 | | | 40,000 | |
Pilgrim’s Pride Corp., 8.38%, 5/1/17,
Callable 5/1/12 @ 104.19 | | | 25,000 | | | 22,250 | |
| | | | |
|
| |
| | | | | | 266,000 | |
| | | | |
|
| |
Diversified Operations – 1.7% | | | | | | | |
Bombardier, Inc., 8.00%, 11/15/14,
Callable 11/15/10 @ 104.00 (b) | | | 25,000 | | | 26,625 | |
Koppers Holdings, Inc., 9.88%, 11/15/14,
Callable 11/15/09 @ 104.94 | | | 25,000 | | | 21,875 | |
Snoqualmie Entertainment Authority,
6.94%, 2/1/14, Callable 2/1/09 @
103.00 (b)(c) | | | 25,000 | | | 19,625 | |
Susser Holdings LLC, 10.63%, 12/15/13,
Callable 12/15/09 @ 105.31 | | | 72,000 | | | 73,800 | |
Susser Holdings LLC, 10.63%, 12/15/13,
Callable 12/15/09 @ 105.31 (b) | | | 50,000 | | | 51,250 | |
Trinity Industries, Inc., 6.50%, 3/15/14,
Callable 3/15/09 @ 103.25 | | | 50,000 | | | 49,625 | |
| | | | |
|
| |
| | | | | | 242,800 | |
| | | | |
|
| |
Education – 0.3% | | | | | | | |
Education Management LLC, 10.25%,
6/1/16, Callable 6/1/11 @ 105.13 | | | 25,000 | | | 21,000 | |
Education Management LLC, 8.75%,
6/1/14, Callable 6/1/10 @ 104.38 | | | 25,000 | | | 22,250 | |
| | | | |
|
| |
| | | | | | 43,250 | |
| | | | |
|
| |
Electric – 3.9% | | | | | | | |
AES Corp., 7.75%, 3/1/14 | | | 60,000 | | | 61,500 | |
AES Corp., 7.75%, 10/15/15 | | | 50,000 | | | 51,625 | |
Baldor Electic Co., 8.63%, 2/15/17,
Callable 2/15/12 @ 104.31 | | | 50,000 | | | 51,000 | |
CMS Energy Corp., 6.88%, 12/15/15 | | | 100,000 | | | 100,660 | |
Edison Mission Energy, 7.00%, 5/15/17 | | | 25,000 | | | 25,250 | |
| | |
84 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Electric, continued | | | | | | | |
Edison Mission Energy, 7.20%, 5/15/19 | | | 50,000 | | | 50,375 | |
Energy Future Holdings, 10.88%, 11/1/17,
Callable 11/1/12 @ 105.44 (b) | | | 200,000 | | | 213,000 | |
| | | | |
|
| |
| | | | | | 553,410 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 0.3% | | | | | | | |
Freescale Semiconductor, Inc., 10.13%,
12/15/16, Callable 12/15/11 @ 105.06 | | | 50,000 | | | 39,375 | |
| | | | |
|
| |
| | | | | | | |
Energy – 3.7% | | | | | | | |
Aventine Renewable Energy, Inc.,
10.00%, 4/1/17, Callable 4/1/12
@ 105.00 | | | 50,000 | | | 31,250 | |
Copano Energy LLC, 8.13%, 3/1/16,
Callable 3/1/11 @ 104.06 | | | 80,000 | | | 83,200 | |
Massey Energy Co., 6.88%, 12/15/13,
Callable 12/15/09 @ 103.44 | | | 100,000 | | | 100,000 | |
Mirant North America LLC, 7.38%,
12/31/13, Callable 12/31/09 @ 103.69 | | | 50,000 | | | 51,875 | |
NRG Energy, Inc., 7.38%, 2/1/16,
Callable 2/1/11 @ 103.69 | | | 50,000 | | | 51,500 | |
Reliant Energy, Inc., 7.63%, 6/15/14 | | | 50,000 | | | 52,000 | |
Verasun Energy Corp., 9.88%, 12/15/12,
Callable 12/15/09 @ 104.94 | | | 50,000 | | | 45,875 | |
Williams Cos., Inc., 6.38%, 10/1/10 (b) | | | 100,000 | | | 103,500 | |
| | | | |
|
| |
| | | | | | 519,200 | |
| | | | |
|
| |
Finance – 5.7% | | | | | | | |
Basell AF SCA, 8.38%, 8/15/15, Callable
8/15/10 @ 104.19 (b) | | | 75,000 | | | 54,375 | |
CCM Merger, Inc., 8.00%, 8/1/13, Callable
8/1/09 @ 104.00 (b) | | | 100,000 | | | 86,000 | |
Ford Motor Credit Co., 7.38%, 10/28/09 | | | 250,000 | | | 240,657 | |
Ford Motor Credit Co., 7.38%, 2/1/11 | | | 50,000 | | | 45,973 | |
General Motors Acceptance Corp., 6.88%,
8/28/12 | | | 300,000 | | | 238,002 | |
MSX International, 12.50%, 4/1/12,
Callable 4/1/09 @ 110.00 (b) | | | 25,000 | | | 20,000 | |
Nalco Finance Holdings, Inc., 11.52%,
2/1/14, Callable 2/1/09 @ 104.50* | | | 75,000 | | | 71,625 | |
Nuveen Investments, Inc., 10.50%,
11/15/15, Callable 11/15/11 @ 105.25 (b) | | | 50,000 | | | 48,125 | |
| | | | |
|
| |
| | | | | | 804,757 | |
| | | | |
|
| |
Funeral Services – 0.4% | | | | | | | |
Carriage Services, Inc., 7.88%, 1/15/15,
Callable 1/15/10 @ 103.94 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
Hotels & Lodging – 0.3% | | | | | | | |
Gaylord Entertainment Co., 8.00%,
11/15/13, Callable 11/15/08 @ 104.00 | | | 50,000 | | | 47,375 | |
| | | | |
|
| |
Internet Related – 0.3% | | | | | | | |
Atlantic Broadband Finance LLC, 9.38%,
1/15/14, Callable 1/15/09 @104.69 | | | 50,000 | | | 46,000 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Leisure – 1.0% | | | | | | | |
AMC Entertainment, Inc., 11.00%, 2/1/16,
Callable 2/1/11@ 105.50 | | | 100,000 | | | 99,500 | |
True Temper Sports, Inc., 8.38%, 9/15/11,
Callable 3/15/09 @ 102.09 | | | 50,000 | | | 34,000 | |
| | | | |
|
| |
| | | | | | 133,500 | |
| | | | |
|
| |
Machinery – 0.9% | | | | | | | |
Case New Holland, Inc., 7.13%, 3/1/14,
Callable 3/1/10 @ 103.56 | | | 50,000 | | | 50,250 | |
Sensata Technologies, 8.00%, 5/1/14,
Callable 5/1/10 @ 104.00 | | | 50,000 | | | 46,625 | |
Terex Corp., 8.00%, 11/15/17,
Callable 11/15/12 @ 104.00 | | | 25,000 | | | 25,563 | |
| | | | |
|
| |
| | | | | | 122,438 | |
| | | | |
|
| |
Manufacturing – 1.0% | | | | | | | |
AGY Holding Corp., 11.00%, 11/15/14,
Callable 11/15/10 @ 105.50 (b) | | | 50,000 | | | 45,250 | |
American Railcar Industries, 7.50%, 3/1/14,
Callable 3/1/11 @ 103.75 | | | 25,000 | | | 22,500 | |
Coleman Cable, Inc., 9.88%, 10/1/12,
Callable 10/1/08 @ 104.94 | | | 50,000 | | | 45,750 | |
Libbey Glass, Inc., 11.91%, 6/1/11,
Callable 6/1/08 @ 107.50 (c) | | | 25,000 | | | 25,063 | |
Maax Corp., 9.75%, 6/15/12,
Callable 6/15/08 @ 104.88 | | | 50,000 | | | 7,500 | |
| | | | |
|
| |
| | | | | | 146,063 | |
| | | | |
|
| |
Medical – 2.4% | | | | | | | |
Advanced Medical Optics, 7.50%,
5/1/17, Callable 5/1/12 @ 103.75 | | | 50,000 | | | 45,250 | |
Community Health Systems, Inc., 8.88%,
7/15/15, Callable 7/15/11 @ 104.44 | | | 50,000 | | | 52,000 | |
HCA, Inc., 9.25%, 11/15/16, Callable
11/15/11 @ 104.63 | | | 25,000 | | | 26,875 | |
MultiPlan, Inc., 10.38%, 4/15/16,
Callable 4/15/11 @ 105.19 (b) | | | 100,000 | | | 97,000 | |
Omnicare, Inc., 6.75%, 12/15/13,
Callable 12/15/09 @ 103.38 | | | 100,000 | | | 93,000 | |
ReAble Therapeutics Finance LLC, 10.88%,
11/15/14, Callable 11/15/11 @ 105.44 (b) | | | 25,000 | | | 25,125 | |
| | | | |
|
| |
| | | | | | 339,250 | |
| | | | |
|
| |
Metal Processors & Fabrication – 0.5% | | | | | | | |
TriMas Corp., 9.88%, 6/15/12, Callable
6/15/08 @ 103.292 | | | 77,000 | | | 67,183 | |
| | | | |
|
| |
Metals & Mining – 3.1% | | | | | | | |
AK Steel Corp., 7.75%, 6/15/12, Callable
6/15/08 @ 102.58 | | | 100,000 | | | 102,125 | |
Aleris International, Inc., 10.00%, 12/15/16,
Callable 12/15/11 @ 105.00 | | | 25,000 | | | 15,500 | |
Freeport-McMoran Copper & Gold, Inc.,
8.25%, 4/1/15, Callable 4/1/11 @ 104.13 | | | 50,000 | | | 54,312 | |
Gibraltar Industries, Inc., 8.00%, 12/1/15,
Callable 12/1/10 @ 104.00 | | | 150,000 | | | 122,250 | |
International Coal Group, Inc., 10.25%,
7/15/14, Callable 7/15/10 @ 105.13 | | | 50,000 | | | 50,500 | |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 85 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
Metals & Mining, continued | | | | | | | |
Noranda Aluminium Acquisition, 8.74%,
5/15/15, Callable 5/15/08 @ 102.00 (b)(c) | | | 50,000 | | | 42,250 | |
Tube City IMS Corp., 9.75%, 2/1/15,
Callable 2/1/11 @ 104.88 | | | 50,000 | | | 47,750 | |
| | | | |
|
| |
| | | | | | 434,687 | |
| | | | |
|
| |
| | | | | | | |
Oil & Gas – 8.7% | | | | | | | |
Chaparral Energy, Inc., 8.50%, 12/1/15,
Callable 12/1/10 @ 104.25 | | | 100,000 | | | 91,000 | |
Chesapeake Energy Corp., 6.88%, 1/15/16,
Callable 1/15/09 @ 103.44 | | | 100,000 | | | 101,000 | |
Cimarex Energy Co., 7.13%, 5/1/17,
Callable 5/1/12 @ 103.56 | | | 100,000 | | | 101,500 | |
Clayton Williams Energy, Inc., 7.75%,8/1/13,
Callable 8/1/09 @ 103.88 | | | 100,000 | | | 93,500 | |
Colorado Interstate Gas Co., 6.80%,
11/15/15 | | | 150,000 | | | 157,541 | |
Compton Petroleum Finance Corp.,
7.63%, 12/1/13, Callable 12/1/09
@ 103.81 | | | 100,000 | | | 98,750 | |
Energy Partners Ltd., 9.75%, 4/15/14,
Callable 4/15/11 @ 104.88 | | | 50,000 | | | 46,250 | |
Forest Oil Corp., 7.25%, 6/15/19,
Callable 6/15/12 @ 103.63 | | | 50,000 | | | 51,625 | |
Inergy LP/Inergy Finance, 8.25%, 3/1/16,
Callable 3/1/11 @ 104.13 | | | 100,000 | | | 102,500 | |
National Oilwell Varco, Inc., Series B,
6.13%, 8/15/15, Callable 8/15/10
@ 103.06 | | | 25,000 | | | 25,600 | |
Newfield Exploration Co., 6.63%, 9/1/14,
Callable 9/1/09 @ 103.31 | | | 100,000 | | | 99,250 | |
Opti Canada, Inc., 7.88%, 12/15/14,
Callable 12/15/10 @ 104.13 | | | 50,000 | | | 50,875 | |
Plains Exploration & Production Co.,
7.75%, 6/15/15, Callable 6/15/11
@ 103.88 | | | 50,000 | | | 51,250 | |
Swift Energy Co., 7.63%, 7/15/11,
Callable 7/15/08 @ 103.81 | | | 50,000 | | | 50,625 | |
Tesoro Corp., 6.50%, 6/1/17,
Callable 6/1/12 @ 103.25 | | | 50,000 | | | 45,875 | |
Tesoro Corp., 6.63%, 11/1/15,
Callable 11/1/10 @ 103.31 | | | 50,000 | | | 47,000 | |
| | | | |
|
| |
| | | | | | 1,214,141 | |
| | | | |
|
| |
| | | | | | | |
Paper & Related Products – 2.5% | | | | | | | |
Catalyst Paper Corp., Series D, 8.63%,
6/15/11, Callable 6/15/08 @ 101.44 | | | 50,000 | | | 42,875 | |
Exopack Holding Corp., 11.25%, 2/1/14,
Callable 2/1/10 @ 105.62 | | | 50,000 | | | 47,750 | |
Georgia-Pacific Corp., 7.70%, 6/15/15 | | | 100,000 | | | 100,000 | |
NewPage Corp., 10.00%, 5/1/12,
Callable 5/1/09 @ 106.00 (b) | | | 25,000 | | | 26,687 | |
Norampac, Inc., 6.75%, 6/1/13,
Callable 6/1/08 @ 103.38 | | | 100,000 | | | 86,750 | |
Verso Paper Holdings LLC, Series B,
9.13%, 8/1/14, Callable 8/1/10 @ 104.56 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | 355,687 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
Pipelines – 3.2% | | | | | | | |
Atlas Pipeline Partners LP, 8.13%,
12/15/15, Callable 12/15/10 @ 104.06 | | | 50,000 | | | 51,875 | |
Dynegy Holdings, Inc., 8.38%, 5/1/16 | | | 150,000 | | | 156,375 | |
El Paso Corp., 7.00%, 6/15/17 | | | 100,000 | | | 104,358 | |
Mueller Water Products, Inc., 7.38%,
6/1/17, Callable 6/1/12 @ 103.69 | | | 50,000 | | | 43,500 | |
Semgroup LP, 8.75%, 11/15/15,
Callable 11/15/10 @ 104.38 (b) | | | 50,000 | | | 47,375 | |
Williams Partners LP, 7.25%, 2/1/17 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | 455,108 | |
| | | | |
|
| |
| | | | | | | |
Printing & Publishing – 2.6% | | | | | | | |
Block Communications, Inc., 8.25%,
12/15/15, Callable 12/15/10 @ 104.13 (b) | | | 50,000 | | | 47,875 | |
Canwest Mediaworks LP, 9.25%, 8/1/15,
Callable 8/1/11 @ 104.63 (b) | | | 50,000 | | | 45,625 | |
Idearc, Inc., 8.00%, 11/15/16,
Callable 11/15/11 @ 104.00 | | | 50,000 | | | 32,500 | |
Medimedia USA, Inc., 11.38%,
11/15/14, Callable 11/15/09 @ 105.69 (b) | | | 50,000 | | | 51,000 | |
Morris Publishing, 7.00%, 8/1/13,
Callable 8/1/08 @ 103.50 | | | 100,000 | | | 61,500 | |
Sheridan Group, Inc., 10.25%, 8/15/11,
Callable 8/15/08 @ 102.56 | | | 100,000 | | | 92,250 | |
Valassis Communications, Inc., 8.25%,
3/1/15, Callable 3/1/11 @ 104.13 | | | 35,000 | | | 31,150 | |
| | | | |
|
| |
| | | | | | 361,900 | |
| | | | |
|
| |
| | | | | | | |
Rental - Auto and Equipment – 2.2% | | | | | | | |
Avis Budget Car Rental, Inc., 7.63%,
5/15/14, Callable 5/15/10 @ 103.81 | | | 100,000 | | | 91,375 | |
H&E Equipment Services, Inc., 8.38%,
7/15/16, Callable 7/15/11 @ 104.19 | | | 50,000 | | | 43,500 | |
Hertz Corp., 8.88%, 1/1/14, Callable
1/1/10 @104.44 | | | 100,000 | | | 100,750 | |
RSC Equipment Rental, Inc., 9.50%,
12/1/14, Callable 12/1/10 @ 104.75 | | | 50,000 | | | 44,750 | |
United Rentals, Inc., 6.50%, 2/15/12,
Callable 5/22/08 @ 103.25 | | | 25,000 | | | 23,437 | |
| | | | |
|
| |
| | | | | | 303,812 | |
| | | | |
|
| |
| | | | | | | |
Restaurants – 2.1% | | | | | | | |
Buffets, Inc., 12.50%, 11/1/14, Callable
11/1/10 @ 106.25 (d) | | | 50,000 | | | 1,250 | |
Dave & Buster’s, Inc., 11.25%, 3/15/14,
Callable 3/15/10 @ 105.62 | | | 50,000 | | | 49,750 | |
Landry’s Restaurants, Inc., 9.50%,
12/15/14, Callable 2/28/09 @ 101.00 (c) | | | 100,000 | | | 97,125 | |
NPC International, Inc., 9.50%, 5/1/14,
Callable 5/1/10 @ 104.75 | | | 50,000 | | | 46,000 | |
Outback Steakhouse, Inc., 10.00%,
6/15/15, Callable 6/15/11 @ 105.00 (b) | | | 75,000 | | | 56,625 | |
Sbarro, Inc., 10.38%, 2/1/15,
Callable 2/1/10 @ 107.78 | | | 50,000 | | | 45,000 | |
| | | | |
|
| |
| | | | | | 295,750 | |
| | | | |
|
| |
| | |
86 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
Retail – 1.2% | | | | | | | |
Claire’s Stores, Inc., 9.63%, 6/1/15,
Callable 6/1/11 @ 104.81 | | | 50,000 | | | 30,000 | |
Pep Boys, 7.50%, 12/15/14, Callable
12/15/09 @ 103.75 | | | 50,000 | | | 43,500 | |
Stater Bros. Holdings, Inc., 7.75%,
4/15/15, Callable 4/15/11 @ 103.88 | | | 50,000 | | | 50,125 | |
Suburban Propane Partners LP, 6.88%,
12/15/13, Callable 12/15/08 @ 103.44 | | | 50,000 | | | 49,250 | |
| | | | |
|
| |
| | | | | | 172,875 | |
| | | | |
|
| |
| | | | | | | |
Seismic Data Collection – 0.4% | | | | | | | |
CIE Gener de Geophysique, 7.50%,
5/15/15, Callable 5/15/10 @ 103.75 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | | |
Special Purpose Entity – 4.1% | | | | | | | |
Altra Industrial Motion, Inc., 9.00%,
12/1/11, Callable 12/1/08 @ 104.50 | | | 50,000 | | | 49,500 | |
Buffalo Thunder Development Authority,
9.38%, 12/15/14, Callable 12/15/10
@ 104.69 (b) | | | 50,000 | | | 34,000 | |
Cellu Tissue Holdings, Inc., 9.75%,
3/15/10, Callable 5/27/08 @ 103.66 | | | 50,000 | | | 47,750 | |
Chukchansi Economic Development
Authority, 8.00%, 11/15/13,
Callable 11/15/09 @ 104.00 (b) | | | 25,000 | | | 22,250 | |
Hawker Beechcraft Acquisition Co.,
8.50%, 4/1/15, Callable 4/1/11 @ 104.25 | | | 50,000 | | | 52,750 | |
Hawker Beechcraft Acquisition Co.,
9.75%, 4/1/17, Callable 4/1/12 @ 104.88 | | | 25,000 | | | 26,375 | |
KAR Holdings, Inc., 8.75%, 5/1/14,
Callable 5/1/10 @ 104.38 | | | 50,000 | | | 48,000 | |
Local TV Finance LLC, 9.25%, 6/15/15,
Callable 6/15/11 @ 104.63 (b) | | | 50,000 | | | 40,000 | |
MCBC Holdings, Inc., 9.09%, 10/15/14,
Callable 10/15/09 @ 103.00 (b)(c) | | | 25,000 | | | 21,250 | |
Petroplus Finance Ltd., 7.00%, 5/1/17,
Callable 5/1/12 @ 103.50 (b) | | | 75,000 | | | 69,750 | |
Rare Restaurant Group LLC, 9.25%,
5/15/14, Callable 5/15/11 @ 104.63 (b) | | | 50,000 | | | 43,000 | |
Regency Energy Partners LP, 8.38%,
12/15/13, Callable 12/15/10 @ 104.19 | | | 17,000 | | | 17,722 | |
Southern Star Central Corp., Inc.,
6.75%, 3/1/16, Callable 3/1/11
@ 103.38 | | | 50,000 | | | 48,125 | |
UCI Holdco, Inc., 10.30%, 12/15/13,
Callable 12/15/08 @ 103 (c) | | | 58,183 | | | 52,947 | |
| | | | |
|
| |
| | | | | | 573,419 | |
| | | | |
|
| |
| | | | | | | |
Steel – 0.4% | | | | | | | |
Ryerson, Inc., 12.00%, 11/1/15,
Callable 11/1/11 @ 106.00 (b) | | | 50,000 | | | 49,500 | |
| | | | |
|
| |
| | | | | | | |
Telecommunications – 7.6% | | | | | | | |
Broadview Networks Holdings, Inc.,
11.38%, 9/1/12, Callable 9/1/09 @ 105.69 | | | 25,000 | | | 23,875 | |
Centennial Communications Corp.,
10.00%, 1/1/13, Callable 1/1/09
@ 107.50 | | | 100,000 | | | 101,000 | |
| | | | | | | |
Corporate Obligations, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
Telecommunications, continued | | | | | | | |
Cincinnati Bell, Inc., 8.38%, 1/15/14,
Callable 1/15/09 @ 104.19 | | | 85,000 | | | 84,575 | |
Citizens Communications Co., 7.13%,
3/15/19 | | | 25,000 | | | 23,125 | |
Cricket Communications, 9.38%,
11/1/14, Callable 11/1/10 @ 104.69 | | | 50,000 | | | 49,062 | |
iPCS, Inc., 6.49%, 5/1/14, Callable
5/1/08 @ 102.00 (c) | | | 100,000 | | | 81,000 | |
Level 3 Financing, Inc., 9.25%, 11/1/14,
Callable 11/1/10 @ 104.63 | | | 50,000 | | | 45,500 | |
MetroPCS Wireless, Inc., 9.25%, 11/1/14,
Callable 11/1/10 @ 104.63 | | | 100,000 | | | 98,250 | |
Nordic Telephone Co., Holdings, 8.88%,
5/1/16, Callable 5/1/11 @ 104.44 (b) | | | 50,000 | | | 51,125 | |
NTL Cable PLC, 9.13%, 8/15/16, Callable
8/15/11 @ 104.56 | | | 125,000 | | | 120,625 | |
PAETEC Holding Corp., 9.50%, 7/15/15,
Callable 7/15/11 @ 104.75 | | | 50,000 | | | 47,000 | |
Panamsat Corp., 9.00%, 6/15/16, Callable
6/15/11 @ 104.50 | | | 50,000 | | | 50,437 | |
Qwest Corp., 7.63%, 6/15/15 | | | 100,000 | | | 100,250 | |
Radio One, Inc., 6.38%, 2/15/13, Callable
2/15/09 @ 103.19 | | | 50,000 | | | 37,875 | |
West Corp., 11.00%, 10/15/16, Callable
10/15/11 @ 105.50 | | | 25,000 | | | 22,219 | |
Wind Acquisition Financial SA, 10.75%,
12/1/15, Callable 12/1/10 @ 105.38 (b) | | | 100,000 | | | 107,750 | |
Windstream Corp., 8.63%, 8/1/16,
Callable 8/1/11 @ 104.31 | | | 25,000 | | | 26,188 | |
| | | | |
|
| |
| | | | | | 1,069,856 | |
| | | | |
|
| |
| | | | | | | |
Tobacco – 0.2% | | | | | | | |
Alliance One International, Inc., 8.50%,
5/15/12 | | | 25,000 | | | 23,750 | |
| | | | |
|
| |
| | | | | | | |
Transportation – 1.0% | | | | | | | |
Bristow Group, Inc., 7.50%, 9/15/17,
Callable 9/15/12 @ 103.75 | | | 50,000 | | | 51,625 | |
Greenbrier Cos., Inc., 8.38%, 5/15/15,
Callable 5/15/10 @ 104.19 | | | 50,000 | | | 47,750 | |
Navios Maritime Holdings, Inc., 9.50%,
12/15/14, Callable 12/15/10 @ 104.75 | | | 30,000 | | | 30,900 | |
Saint Acquisition Corp., 10.82%, 5/15/15,
Callable 5/15/09 @ 102.00 (b)(c) | | | 50,000 | | | 16,500 | |
| | | | |
|
| |
| | | | | | 146,775 | |
| | | | |
|
| |
| | | | | | | |
Waste Disposal – 1.4% | | | | | | | |
Allied Waste North America, Inc., 7.38%,
4/15/14, Callable 4/15/09 @ 103.69 | | | 100,000 | | | 100,750 | |
Waste Services, Inc., 9.50%, 4/15/14,
Callable 4/15/09 @ 104.75 | | | 50,000 | | | 49,000 | |
WCA Waste Corp., 9.25%, 6/15/14,
Callable 6/15/10 @ 104.63 | | | 50,000 | | | 50,500 | |
| | | | |
|
| |
| | | | | | 200,250 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $14,318,541) | | | | | | 13,386,581 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 87 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Investment Company—2.0% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
Northern Institutional Diversified
Assets Portfolio, Shares class, 2.33% (c) | | | 278,127 | | | 278,127 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $278,128) | | | | | | 278,127 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $14,615,217) — 97.5% | | | | | | 13,668,337 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $14,021,668. |
| |
* | Represents yield at time of purchase. |
| |
(a) | Represents non-income producing security. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(d) | Non-Income Producing; Defaulted Bond. |
LLC — Limited Liability Co.
LP — Limited Partnership
PLC — Public Limited Co.
| | |
88 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Government and Government Agency Obligations—46.3% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Federal Home Loan Mortgage Corp. – 5.9% | | | | | | | |
Pool #1B2655, 6.19%, 12/1/34 (a)(d) | | | 106,265 | | | 107,187 | |
Pool #1J1313, 6.40%, 6/1/36 (a) | | | 246,528 | | | 252,879 | |
Pool #847557, 6.27%, 7/1/34 (a)(d) | | | 115,465 | | | 116,346 | |
Pool #G02981, 6.00%, 6/1/37 | | | 176,541 | | | 180,766 | |
Pool #G12317, 5.50%, 8/1/21 | | | 164,679 | | | 167,814 | |
| | | | |
|
| |
| | | | | | 824,992 | |
| | | | |
|
| |
Federal National Mortgage Association – 25.6% | | | | | | | |
6.50%, 5/1/35 | | | 550,000 | | | 569,078 | |
Pool #781922, 5.00%, 2/1/21 | | | 342,578 | | | 344,780 | |
Pool #922090, 5.89%, 3/1/37 (a) | | | 270,217 | | | 276,459 | |
TBA May | | | | | | | |
5.50%, 5/15/37 | | | 1,600,000 | | | 1,608,499 | |
6.00%, 5/15/37 | | | 750,000 | | | 766,641 | |
| | | | |
|
| |
| | | | | | 3,565,457 | |
| | | | |
|
| |
Government National Mortgage Association – 1.1% | | | | | | | |
6.00%, 5/15/37 | | | 150,000 | | | 154,078 | |
U.S. Treasury Bonds – 1.5% | | | | | | | |
6.25%, 8/15/23 | | | 170,000 | | | 204,598 | |
U.S. Treasury Notes – 12.2% | | | | | | | |
4.75%, 2/15/10 | | | 340,000 | | | 355,220 | |
4.75%, 1/31/12 | | | 190,000 | | | 203,404 | |
2.88%, 1/31/13 | | | 582,000 | | | 578,226 | |
2.75%, 2/28/13 | | | 250,000 | | | 246,797 | |
4.00%, 2/15/15 | | | 150,000 | | | 156,070 | |
3.50%, 2/15/18 | | | 175,000 | | | 171,281 | |
| | | | |
|
| |
| | | | | | 1,710,998 | |
| | | | |
|
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS (COST $6,491,826) | | | | | | 6,460,123 | |
| | | | |
|
| |
Corporate Obligations—32.1% | | | | | | | |
|
|
|
|
|
|
| |
Banking – 1.5% | | | | | | | |
American Express Centurion Bank,
5.95%, 6/12/17 | | | 100,000 | | | 100,292 | |
Washington Mutual, Inc., 3.20%, 9/17/12 (a) | | | 75,000 | | | 63,715 | |
Washington Mutual Bank NV, 3.31%,
2/4/11 (a) | | | 50,000 | | | 44,182 | |
| | | | |
|
| |
| | | | | | 208,189 | |
| | | | |
|
| |
Building & Construction Products – 1.4% | | | | | | | |
Martin Marietta Materials, Inc., 3.40%,
4/30/10 (a) | | | 100,000 | | | 97,037 | |
Masco Corp., 3.20%, 3/12/10 (a) | | | 100,000 | | | 92,765 | |
| | | | |
|
| |
| | | | | | 189,802 | |
| | | | |
|
| |
Electric – 6.5% | | | | | | | |
Duke Energy Carolinas LLC,
5.10%, 4/15/18 | | | 100,000 | | | 99,374 | |
MidAmerican Energy Co., 5.95%, 7/15/17 | | | 450,000 | | | 469,001 | |
Puget Sound Energy, Inc., 6.97%, 6/1/67,
Callable 6/1/17 @ 100 | | | 100,000 | | | 89,807 | |
| | | | | | | |
Progress Energy, Inc., 3.47%, 11/14/08,
Callable 8/14/08 @ 100 (a) | | | 250,000 | | | 249,061 | |
| | | | |
|
| |
| | | | | | 907,243 | |
| | | | |
|
| |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Finance – 5.0% | | | | | | | |
Caterpillar Financial Services
Corp., 5.45%, 4/15/18, MTN | | | 50,000 | | | 50,716 | |
Ford Motor Credit Co., LLC
9.75%, 9/15/10 | | | 300,000 | | | 291,450 | |
7.25%, 10/25/11 | | | 25,000 | | | 22,514 | |
Morgan Stanley, Series F, 6.00%,
4/28/15, MTN | | | 50,000 | | | 49,924 | |
Pacific Life Global Funding, 5.15%,
4/15/13 (b) | | | 125,000 | | | 125,120 | |
XTRA Finance Corp., 5.15%, 4/1/17 | | | 150,000 | | | 152,141 | |
| | | | |
|
| |
| | | | | | 691,865 | |
| | | | |
|
| |
Hospitals – 0.6% | | | | | | | |
HCA, Inc., 5.75%, 3/15/14 | | | 100,000 | | | 86,500 | |
| | | | |
|
| |
Media – 4.2% | | | | | | | |
Time Warner Cable, Inc., 5.40%, 7/2/12 | | | 150,000 | | | 150,875 | |
Time Warner Entertainment, 8.88%, 10/1/12 | | | 350,000 | | | 387,849 | |
Vivendi, 5.75%, 4/4/13 (b) | | | 50,000 | | | 48,871 | |
| | | | |
|
| |
| | | | | | 587,595 | |
| | | | |
|
| |
Medical – 1.1% | | | | | | | |
AstraZeneca plc, 5.90%, 9/15/17 | | | 150,000 | | | 158,822 | |
| | | | |
|
| |
Office Equipment & Services – 0.7% | | | | | | | |
Xerox Corp., 3.51%, 12/18/09 (a) | | | 100,000 | | | 98,269 | |
| | | | |
|
| |
Retail – 1.1% | | | | | | | |
Kroger Co. (The), 5.00%, 4/15/13 | | | 25,000 | | | 25,118 | |
Federated Retail Holdings, Inc.,
5.90%, 12/1/16 | | | 150,000 | | | 131,475 | |
| | | | |
|
| |
| | | | | | 156,593 | |
| | | | |
|
| |
Telecommunications – 2.4% | | | | | | | |
Verizon Pennsylvania, Inc., 5.65%, 11/15/11 | | | 275,000 | | | 279,468 | |
Sprint Nextel Corp., 6.00%, 12/1/16 | | | 60,000 | | | 48,900 | |
| | | | |
|
| |
| | | | | | 328,368 | |
| | | | |
|
| |
Transportation – 7.6% | | | | | | | |
American Airlines, Inc., Series 2001-2 | | | | | | | |
Class A1, 6.98%, 4/1/11 | | | 77,281 | | | 76,122 | |
Class A2, 7.86%, 10/1/11 | | | 200,000 | | | 200,000 | |
Burlington Northern Santa Fe Railway
Co., 4.83%, 1/15/23 | | | 230,919 | | | 215,182 | |
Continental Airlines, Inc., 5.98%, 4/19/22 | | | 100,000 | | | 87,125 | |
Norfolk Southern Corp., 5.75%, 4/1/18 (b) | | | 50,000 | | | 50,707 | |
Union Pacific Corp., 5.75%, 11/15/17 | | | 150,000 | | | 151,862 | |
Union Pacific Railroad, 5.08%, 1/2/29 | | | 298,680 | | | 281,804 | |
| | | | |
|
| |
| | | | | | 1,062,802 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $4,541,973) | | | | | | 4,476,048 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 89 |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Asset Backed Securities—9.1% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Americredit Automobile Receivables
Trust, Series 2005-CF, Class A3,
4.47%, 5/6/10 (d) | | | 22,375 | | | 22,382 | |
Asset Backed Funding Certificates,
Series 2003-AHL1, Class A1,
3.68%, 3/25/33 | | | 210,318 | | | 175,286 | |
Cairn Mezzanine plc, Series 2007-3A,
Class B1, 3.97%, 8/13/47 (a)(b) | | | 145,000 | | | 7,250 | |
Capital Auto Receivables Asset Trust
Series 2006-SN1A, Class A3, 5.31%,
10/20/09 (b)(d) | | | 44,733 | | | 44,837 | |
Series 2007-SN1, Class A3B, 2.78%,
7/15/10 (a)(d) | | | 110,000 | | | 108,809 | |
Countrywide Asset-Backed Certificates,
Series 2006-S4, Class A3, 5.80%,
7/25/34 | | | 210,000 | | | 160,901 | |
GE Business Loan Trust, Series 2006-2A,
Class A, 2.90%, 11/15/34 (a)(b)(d) | | | 243,354 | | | 230,880 | |
GMAC Mortgage Corp., Loan Trust,
Series 2006-HE3, Class A3, 5.81%,
10/25/36 | | | 170,000 | | | 79,170 | |
MBNA Credit Card Master Note Trust,
Series 2005-A7, Class A7, 4.30%, 2/15/11 (d) | | | 120,000 | | | 120,227 | |
Nissan Auto Receivables Owner Trust,
Series 2006-B, Class A3, 5.16%, 2/15/10 (d) | | | 144,880 | | | 145,819 | |
Preferred Term Securities XXII Ltd.,
3.14%, 9/22/36, Callable 6/22/11
@ 100 (a)(b)(d) | | | 197,945 | | | 170,490 | |
| | | | |
|
| |
TOTAL ASSET BACKED SECURITIES
(COST $1,609,865) | | | | | | 1,266,051 | |
| | | | |
|
| |
Collateralized Mortgage Obligations—7.6% | | | | | | | |
|
|
|
|
|
|
| |
Banc of America Mortgage Securities,
Series 2005-D, Class 2A4, 4.78%,
5/25/35 (a) | | | 200,000 | | | 199,105 | |
Deutsche Mortgage Securities, Inc.,
Series 2006-WF1, Class 1A1, 5.08%,
6/26/35 (a)(b) | | | 150,219 | | | 148,527 | |
Freddie Mac
Series 2988, Class AF, 3.02%, 6/15/35 (a) | | | 157,691 | | | 151,935 | |
Series 3212, Class BK, 5.40%, 9/15/36 | | | 150,000 | | | 149,119 | |
Morgan Stanley Mortgage Loan Trust,
Series 2006-3AR, Class 2A3, 5.82%,
3/25/36 (a) | | | 255,524 | | | 212,615 | |
Residential Asset Securitization Trust,
Series 2003-A15, Class 1A2, 3.35%,
2/25/34 (a)(d) | | | 242,102 | | | 208,459 | |
| | | | |
|
| |
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,149,543) | | | | | | 1,069,760 | |
| | | | |
|
| |
Commercial Mortgage Backed Securities—12.1% | | | | | | | |
|
|
|
|
|
|
| |
Banc of America Commercial Mortgage,
Inc., Series 2006-4, Class A4,
5.54%, 7/10/46 | | | 230,000 | | | 228,791 | |
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2006-T24,
Class A4, 5.43%, 10/12/41 | | | 200,000 | | | 197,723 | |
|
Commercial Mortgage Backed Securities, (continued) |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD4,
Class A2B, 5.21%, 12/11/49 | | | 200,000 | | | 197,280 | |
Commercial Mortgage Pass-Through
Certificate
Series 2006-FL12, Class A2, 2.82%,
12/15/20 (a)(b)(d) | | | 250,256 | | | 238,456 | |
Series 2005-LP5, Class AJ, 5.05%,
5/10/43 | | | 200,000 | | | 182,541 | |
Morgan Stanley Capital I
Series 2006-HQ10, Class A4, 5.33%,
11/12/41 | | | 180,000 | | | 175,258 | |
Series 2007-IQ14, Class A2, 5.61%,
4/15/49 | | | 220,000 | | | 219,143 | |
Series 2007-IQ14, Class AM, 5.88%,
4/15/49 (a) | | | 130,000 | | | 119,920 | |
Washington Mutual Commercial Mortgage
Securities Trust, Series 2006-SL1,
Class A, 5.42%, 11/23/43 (a)(b) | | | 146,013 | | | 131,032 | |
| | | | |
|
| |
TOTAL COMMERCIAL MORTGAGE
BACKED SECURITIES
(COST $1,743,743) | | | | | | 1,690,144 | |
| | | | |
|
| |
Foreign Bonds—4.6% | | | | | | | |
|
|
|
|
|
|
| |
Iceland – 1.3% | | | | | | | |
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) | | | 225,000 | | | 188,437 | |
| | | | |
|
| |
Netherlands – 0.6% | | | | | | | |
Shell International Finance BV, 5.20%,
3/22/17 | | | 75,000 | | | 78,186 | |
| | | | |
|
| |
South Korea – 1.8% | | | | | | | |
Citibank Korea, Inc., 4.68%, 6/18/13,
Callable 6/18/08 @ 100 (a) | | | 250,000 | | | 250,409 | |
| | | | |
|
| |
United Kingdom – 0.9% | | | | | | | |
Barclays Bank plc, 5.93%, 12/31/49 (b) | | | 150,000 | | | 126,651 | |
| | | | |
|
| |
TOTAL FOREIGN BONDS
(COST $698,553) | | | | | | 643,683 | |
| | | | |
|
| |
| | |
90 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Northern Institutional Diversified
Assets Portfolio, Shares class,
2.33% (c) | | | 1,265,567 | | | 1,265,567 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $1,265,567) | | | | | | 1,265,567 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $17,501,070) — 120.9% | | | | | | 16,871,376 | |
| | | | |
|
| |
| |
| Percentages indicated are based on net assets of $13,954,791. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(d) | Security held as collateral for to be announced securities. |
| |
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.0% of net assets. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 91 |
|
HSBC INVESTOR GROWTH PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—94.3% | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Aerospace & Defense – 8.1% | | | | | | | |
General Dynamics Corp. | | | 32,600 | | | 2,947,692 | |
Raytheon Co. | | | 23,850 | | | 1,525,685 | |
The Boeing Co. | | | 5,500 | | | 466,730 | |
United Technologies Corp. | | | 23,350 | | | 1,692,174 | |
| | | | |
|
| |
| | | | | | 6,632,281 | |
| | | | |
|
| |
| | | | | | | |
Biotechnology – 4.4% | | | | | | | |
Gilead Sciences, Inc. (a) | | | 70,300 | | | 3,638,728 | |
| | | | |
|
| |
Business Services – 1.3% | | | | | | | |
Fluor Corp. | | | 7,100 | | | 1,085,377 | |
| | | | |
|
| |
Casinos & Gambling – 1.1% | | | | | | | |
International Game Technology | | | 25,150 | | | 873,711 | |
| | | | |
|
| |
Chemicals – 4.4% | | | | | | | |
Monsanto Co. | | | 31,300 | | | 3,568,826 | |
| | | | |
|
| |
Computer Software – 2.7% | | | | | | | |
Adobe Systems, Inc. (a) | | | 22,400 | | | 835,296 | |
Electronic Arts, Inc. (a) | | | 26,350 | | | 1,356,235 | |
| | | | |
|
| |
| | | | | | 2,191,531 | |
| | | | |
|
| |
Computers – 10.0% | | | | | | | |
Apple, Inc. (a) | | | 18,950 | | | 3,296,352 | |
Hewlett-Packard Co. | | | 61,200 | | | 2,836,620 | |
Research In Motion Ltd. (a) | | | 17,250 | | | 2,098,118 | |
| | | | |
|
| |
| | | | | | 8,231,090 | |
| | | | |
|
| |
Consumer Products – 4.0% | | | | | | | |
Colgate-Palmolive Co. | | | 46,300 | | | 3,273,410 | |
| | | | |
|
| |
Diversified Manufacturing Operations – 3.2% | | | | | | | |
Joy Global, Inc. | | | 15,400 | | | 1,143,450 | |
Thermo Fisher Scientific, Inc. (a) | | | 25,000 | | | 1,446,750 | |
| | | | |
|
| |
| | | | | | 2,590,200 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 4.4% | | | | | | | |
Emerson Electric Co. | | | 44,950 | | | 2,349,087 | |
Microchip Technology, Inc. | | | 34,000 | | | 1,249,500 | |
| | | | |
|
| |
| | | | | | 3,598,587 | |
| | | | |
|
| |
Farm Machinery & Equipment – 3.6% | | | | | | | |
Deere & Co. | | | 35,550 | | | 2,988,689 | |
| | | | |
|
| |
Financial Services – 5.7% | | | | | | | |
CME Group, Inc. | | | 5,425 | | | 2,481,666 | |
Goldman Sachs Group, Inc. | | | 5,050 | | | 966,419 | |
Visa, Inc., Class A (a) | | | 14,650 | | | 1,222,542 | |
| | | | |
|
| |
| | | | | | 4,670,627 | |
| | | | |
|
| |
Food & Beverage – 8.8% | | | | | | | |
McDonald’s Corp. | | | 21,500 | | | 1,280,970 | |
PepsiCo, Inc. | | | 10,950 | | | 750,403 | |
The Coca-Cola Co. | | | 56,300 | | | 3,314,381 | |
Wm. Wrigley Jr. Co. | | | 7,350 | | | 559,776 | |
Yum! Brands, Inc. | | | 31,650 | | | 1,287,522 | |
| | | | |
|
| |
| | | | | | 7,193,052 | |
| | | | |
|
| |
Health Care – 5.0% | | | | | | | |
Baxter International, Inc. | | | 27,600 | | | 1,720,032 | |
DENTSPLY International, Inc. | | | 20,800 | | | 808,496 | |
Zimmer Holdings, Inc. (a) | | | 21,100 | | | 1,564,776 | |
| | | | |
|
| |
| | | | | | 4,093,304 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Hotels & Lodging – 1.0% | | | | | | | |
Las Vegas Sands Corp. (a) | | | 11,250 | | | 857,475 | |
| | | | |
|
| |
Industrial Manufacturing – 1.0% | | | | | | | |
The Manitowoc Co., Inc. | | | 22,750 | | | 860,405 | |
| | | | |
|
| |
Insurance – 1.9% | | | | | | | |
AFLAC, Inc. | | | 23,900 | | | 1,593,413 | |
| | | | |
|
| |
Internet Related – 0.7% | | | | | | | |
Google, Inc., Class A (a) | | | 950 | | | 545,576 | |
| | | | |
|
| |
Oil & Gas – 9.5% | | | | | | | |
National-Oilwell Varco, Inc. (a) | | | 6,700 | | | 458,615 | |
Schlumberger Ltd. | | | 26,500 | | | 2,664,575 | |
Smith International, Inc. | | | 40,750 | | | 3,117,782 | |
Weatherford International Ltd. (a) | | | 19,200 | | | 1,548,864 | |
| | | | |
|
| |
| | | | | | 7,789,836 | |
| | | | |
|
| |
Pharmaceuticals – 8.5% | | | | | | | |
Abbott Laboratories | | | 59,300 | | | 3,128,075 | |
Alcon, Inc. ADR | | | 10,350 | | | 1,635,300 | |
Allergan, Inc. | | | 13,350 | | | 752,539 | |
Genentech, Inc. (a) | | | 21,629 | | | 1,475,098 | |
| | | | |
|
| |
| | | | | | 6,991,012 | |
| | | | |
|
| |
Retail – 1.2% | | | | | | | |
Kohl’s Corp. (a) | | | 19,400 | | | 947,690 | |
| | | | |
|
| |
Telecommunications – 3.8% | | | | | | | |
Cisco Systems, Inc. (a) | | | 68,550 | | | 1,757,622 | |
Nokia Corp. ADR | | | 16,150 | | | 485,631 | |
QUALCOMM, Inc. | | | 20,650 | | | 891,873 | |
| | | | |
|
| |
| | | | | | 3,135,126 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $65,310,279) | | | | | | 77,349,946 | |
| | | | |
|
| |
Investment Company—5.4% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Diversified Assets
Portfolio, Shares class, 2.33% (b) | | | 4,390,948 | | | 4,390,948 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $4,390,948) | | | | | | 4,390,948 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $69,701,227) — 99.7% | | | | | | 81,740,894 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $82,025,313. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
ADR — American Depositary Receipt
| | |
92 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—98.6% | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Australia – 1.0% | | | | | | | |
National Australia Bank Ltd. | | | 59,965 | | | 1,708,825 | |
Zinifex Ltd. | | | 235,900 | | | 2,247,493 | |
| | | | |
|
| |
| | | | | | 3,956,318 | |
| | | | |
|
| |
Austria – 1.0% | | | | | | | |
Voestalpine AG | | | 51,400 | | | 3,952,365 | |
| | | | |
|
| |
Belgium – 1.7% | | | | | | | |
Fortis | | | 176,832 | | | 4,831,551 | |
Solvay SA, Class A | | | 11,700 | | | 1,724,795 | |
| | | | |
|
| |
| | | | | | 6,556,346 | |
| | | | |
|
| |
Brazil – 0.6% | | | | | | | |
Banco Do Brasil SA | | | 60,000 | | | 1,039,899 | |
Usinas Siderurgicas de Minas Gerais SA | | | 27,900 | | | 1,341,524 | |
| | | | |
|
| |
| | | | | | 2,381,423 | |
| | | | |
|
| |
Canada – 4.8% | | | | | | | |
Barrick Gold Corp. | | | 37,500 | | | 1,441,821 | |
Canadian Imperial Bank of Commerce | | | 21,000 | | | 1,547,050 | |
Fairfax Financial Holdings Ltd. | | | 5,200 | | | 1,570,123 | |
Gerdau Ameristeel Corp. | | | 161,000 | | | 2,510,628 | |
HudBay Minerals, Inc. | | | 40,600 | | | 766,190 | |
Industrial Alliance Insurance and Financial
Services, Inc. | | | 26,100 | | | 1,026,838 | |
Inmet Mining Corp. | | | 11,300 | | | 927,637 | |
Petro-Canada | | | 68,200 | | | 3,418,129 | |
Royal Bank of Canada | | | 45,400 | | | 2,165,383 | |
Teck Cominco Ltd., B Shares | | | 64,600 | | | 2,811,653 | |
| | | | |
|
| |
| | | | | | 18,185,452 | |
| | | | |
|
| |
China – 0.2% | | | | | | | |
China Petroleum & Chemical Corp. | | | 592,000 | | | 628,244 | |
| | | | |
|
| |
Finland – 1.8% | | | | | | | |
Nokia Oyj | | | 129,400 | | | 3,984,087 | |
Stora Enso Oyj, R Shares | | | 236,600 | | | 2,940,461 | |
| | | | |
|
| |
| | | | | | 6,924,548 | |
| | | | |
|
| |
France – 11.8% | | | | | | | |
Air France-KLM | | | 28,700 | | | 894,845 | |
BNP Paribas SA | | | 64,580 | | | 6,982,412 | |
Compagnie Generale des Establissements
Michelin, B Shares | | | 39,700 | | | 3,642,787 | |
Credit Agricole SA | | | 142,779 | | | 4,826,251 | |
France Telecom SA | | | 107,200 | | | 3,374,217 | |
Lagardere S.C.A. | | | 46,400 | | | 3,346,213 | |
Renault SA | | | 51,500 | | | 5,310,895 | |
Sanofi-Aventis | | | 68,900 | | | 5,394,830 | |
Societe Generale | | | 35,385 | | | 4,152,347 | |
Societe Generale NV (a) | | | 8,846 | | | 1,024,798 | |
Total SA | | | 72,900 | | | 6,139,403 | |
| | | | |
|
| |
| | | | | | 45,088,998 | |
| | | | |
|
| |
Germany – 13.8% | | | | | | | |
Allianz SE | | | 39,800 | | | 8,116,717 | |
BASF AG | | | 63,600 | | | 9,070,961 | |
Deutsche Bank AG | | | 52,800 | | | 6,355,884 | |
Deutsche Lufthansa AG | | | 162,600 | | | 4,313,220 | |
Deutsche Telekom AG | | | 220,300 | | | 3,969,245 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Germany, continued | | | | | | | |
E.ON AG | | | 38,500 | | | 7,874,440 | |
Infineon Technologies AG (a) | | | 304,300 | | | 2,831,626 | |
Muenchener Rueckversicherungs-
Gesellschaft AG | | | 27,700 | | | 5,362,769 | |
RWE AG | | | 41,300 | | | 4,781,331 | |
| | | | |
|
| |
| | | | | | 52,676,193 | |
| | | | |
|
| |
Hong Kong – 0.4% | | | | | | | |
China Netcom Group Corp., Ltd. | | | 462,000 | | | 1,393,191 | |
| | | | |
|
| |
India – 0.4% | | | | | | | |
State Bank of India GDR | | | 17,600 | | | 1,650,880 | |
| | | | |
|
| |
Italy – 3.0% | | | | | | | |
Buzzi Unicem SpA | | | 42,900 | | | 1,100,481 | |
ENI SpA | | | 189,900 | | | 7,335,206 | |
Fondiaria-SAI SpA | | | 57,900 | | | 2,339,540 | |
Fondiaria-SAI SpA-RNC | | | 18,700 | | | 496,338 | |
| | | | |
|
| |
| | | | | | 11,271,565 | |
| | | | |
|
| |
Japan – 21.6% | | | | | | | |
Alps Electric Co., Ltd. | | | 55,000 | | | 511,542 | |
Canon, Inc. | | | 32,250 | | | 1,612,965 | |
FUJITSU Ltd. | | | 573,000 | | | 3,653,929 | |
Hitachi Ltd. | | | 170,000 | | | 1,146,196 | |
Honda Motor Co., Ltd. | | | 99,000 | | | 3,142,253 | |
JFE Holdings, Inc. | | | 101,600 | | | 5,570,068 | |
Kyushu Electric Power Co., Inc. | | | 101,300 | | | 2,299,394 | |
Mitsubishi Chemical Holdings Corp. | | | 303,000 | | | 2,010,869 | |
Mitsubishi Corp. | | | 129,000 | | | 4,144,080 | |
Mitsubishi UFJ Financial Group, Inc. | | | 645,000 | | | 7,097,047 | |
Mitsui & Co., Ltd. | | | 86,000 | | | 2,018,274 | |
Mitsui Chemicals, Inc. | | | 417,000 | | | 2,542,830 | |
Mitsui O.S.K. Lines Ltd. | | | 327,000 | | | 4,500,693 | |
NAMCO BANDAI Holdings, Inc. | | | 123,800 | | | 1,550,328 | |
Nippon Mining Holdings, Inc. | | | 360,000 | | | 2,226,411 | |
Nippon Steel Corp. | | | 329,000 | | | 1,847,995 | |
Nippon Telegraph & Telephone Corp. | | | 881 | | | 3,796,172 | |
Nippon Yusen Kabushiki Kaisha | | | 152,000 | | | 1,476,580 | |
Nissan Motor Co., Ltd. | | | 534,700 | | | 4,741,689 | |
ORIX Corp. | | | 21,300 | | | 3,843,301 | |
Sharp Corp. | | | 261,000 | | | 4,385,563 | |
Sony Corp. | | | 12,510 | | | 575,145 | |
Sumitomo Mitsui Financial Group, Inc. | | | 731 | | | 6,292,632 | |
The Tokyo Electric Power Co., Inc. | | | 165,200 | | | 4,202,693 | |
Toshiba Corp. | | | 543,000 | | | 4,501,933 | |
Toyota Motor Corp. | | | 56,700 | | | 2,873,992 | |
| | | | |
|
| |
| | | | | | 82,564,574 | |
| | | | |
|
| |
Luxembourg – 1.5% | | | | | | | |
ArcelorMittal | | | 64,352 | | | 5,705,866 | |
| | | | |
|
| |
Netherlands – 4.5% | | | | | | | |
Corporate Express NV | | | 107,400 | | | 1,239,185 | |
ING Groep NV | | | 216,068 | | | 8,268,399 | |
Koninklijke Ahold NV (a) | | | 266,720 | | | 3,964,425 | |
Koninklijke DSM NV | | | 34,900 | | | 1,886,972 | |
Wolters Kluwer NV | | | 70,200 | | | 1,891,758 | |
| | | | |
|
| |
| | | | | | 17,250,739 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 93 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
Norway – 1.5% | | | | | | | |
StatoilHydro ASA | | | 153,100 | | | 5,552,772 | |
| | | | |
|
| |
Russian Federation – 0.6% | | | | | | | |
JSC MMC Norilsk Nickel ADR | | | 32,750 | | | 884,250 | |
LUKOIL ADR | | | 16,550 | | | 1,494,465 | |
| | | | |
|
| |
| | | | | | 2,378,715 | |
| | | | |
|
| |
Singapore – 0.6% | | | | | | | |
Flextronics International Ltd. (a) | | | 104,800 | | | 1,088,872 | |
Neptune Orient Lines Ltd. | | | 427,000 | | | 1,014,192 | |
| | | | |
|
| |
| | | | | | 2,103,064 | |
| | | | |
|
| |
South Africa – 0.5% | | | | | | | |
Sanlam Ltd. | | | 554,040 | | | 1,467,325 | |
Standard Bank Group Ltd. | | | 31,023 | | | 369,728 | |
| | | | |
|
| |
| | | | | | 1,837,053 | |
| | | | |
|
| |
South Korea – 2.1% | | | | | | | |
Honam Petrochemical Corp. | | | 8,100 | | | 719,982 | |
Hynix Semiconductor, Inc. (a) | | | 24,700 | | | 660,375 | |
Hyundai Motor Co., Ltd. | | | 9,500 | | | 801,776 | |
Hyundai Motors Co., Ltd., Second Preferred | | | 15,950 | | | 573,621 | |
Industrial Bank of Korea GDR | | | 88,300 | | | 1,479,025 | |
Kookmin Bank ADR | | | 14,600 | | | 1,018,350 | |
POSCO ADR | | | 11,400 | | | 1,406,760 | |
Samsung Electronics Co., Ltd., Preferred | | | 2,900 | | | 1,492,817 | |
| | | | |
|
| |
| | | | | | 8,152,706 | |
| | | | |
|
| |
Spain – 1.3% | | | | | | | |
Repsol YPF SA | | | 118,600 | | | 4,821,846 | |
| | | | |
|
| |
Sweden – 2.1% | | | | | | | |
Electrolux AB, B Shares | | | 118,500 | | | 1,821,584 | |
Svenska Cellusoa AB (SCA), B Shares | | | 189,700 | | | 3,201,340 | |
Tele2 AB, B Shares | | | 73,400 | | | 1,637,271 | |
Volvo AB, B Shares | | | 86,500 | | | 1,322,453 | |
| | | | |
|
| |
| | | | | | 7,982,648 | |
| | | | |
|
| |
Switzerland – 1.7% | | | | | | | |
Credit Suisse Group | | | 81,100 | | | 4,517,299 | |
Novartis AG | | | 42,460 | | | 2,160,095 | |
| | | | |
|
| |
| | | | | | 6,677,394 | |
| | | | |
|
| |
Taiwan – 1.5% | | | | | | | |
Asustek Computer, Inc. | | | 430,000 | | | 1,395,434 | |
China Steel Corp. GDR | | | 38,878 | | | 1,269,367 | |
Siliconware Precision Industries Co. | | | 707,691 | | | 1,225,006 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | 508,398 | | | 1,113,817 | |
United Microelectronics Corp. | | | 1,094,551 | | | 668,702 | |
| | | | |
|
| |
| | | | | | 5,672,326 | |
| | | | |
|
| |
Thailand – 0.3% | | | | | | | |
PTT Public Co., Ltd. | | | 121,400 | | | 1,279,306 | |
| | | | |
|
| |
United Kingdom – 18.3% | | | | | | | |
Associated British Foods plc | | | 199,300 | | | 3,492,772 | |
Aviva plc | | | 352,191 | | | 4,407,727 | |
BAE Systems plc | | | 251,400 | | | 2,332,868 | |
Barclays plc | | | 457,700 | | | 4,153,960 | |
BP plc | | | 125,000 | | | 1,518,420 | |
British Energy Group plc | | | 277,000 | | | 4,185,372 | |
GlaxoSmithKline plc | | | 259,600 | | | 5,785,634 | |
HBOS plc | | | 373,041 | | | 3,489,449 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Shares | | Value($) | |
| |
| |
| |
United Kingdom, continued | | | | | | | |
Home Retail Group plc | | | 358,100 | | | 1,879,528 | |
ITV plc | | | 879,270 | | | 1,153,737 | |
Kazakhmys plc | | | 84,600 | | | 2,660,832 | |
Punch Taverns plc | | | 91,000 | | | 938,060 | |
Royal & Sun Alliance Insurance Group plc | | | 776,127 | | | 2,073,828 | |
Royal Bank of Scotland Group plc | | | 1,039,124 | | | 7,127,334 | |
Royal Dutch Shell plc, A Shares | | | 232,387 | | | 9,368,191 | |
Royal Dutch Shell plc, B Shares | | | 45,973 | | | 1,841,699 | |
Taylor Wimpey plc | | | 468,220 | | | 1,198,499 | |
Vodafone Group plc | | | 2,624,658 | | | 8,364,633 | |
Xstrata plc | | | 51,700 | | | 4,055,910 | |
| | | | |
|
| |
| | | | | | 70,028,453 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $329,498,217) | | | | | | 376,672,985 | |
| | | | |
|
| |
Investment Company—0.6% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Diversified Assets
Portfolio, Shares class, 2.33% (b) | | | 2,269,283 | | | 2,269,283 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $2,269,283) | | | | | | 2,269,283 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $331,767,500) — 99.2% | | | | | | 378,942,268 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $382,006,984. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
ADR — American Depositary Receipt
GDR — Global Depositary Receipt
PLC — Public Limited Co.
SPA — Standby Purchase Agreement
| | | | |
Schedule Portfolio Investments—April 30, 2008 | | | |
|
|
|
|
|
Industry | | Percent of Net Assets | |
| |
| |
Aerospace & Defense | | | | 0.6 | % |
Automotive | | | | 7.7 | % |
Banking & Financial Services | | | | 20.6 | % |
Broadcasting | | | | 0.3 | % |
Building & Construction | | | | 1.4 | % |
Cash & Cash Equivalents | | | | 0.6 | % |
Chemicals | | | | 4.7 | % |
Distribution/Wholesale | | | | 0.3 | % |
Drugs - Medical | | | | 3.5 | % |
Electrical | | | | 7.9 | % |
Electronic Components & Semiconductors | | | | 4.8 | % |
Food & Beverage | | | | 0.9 | % |
Import/Export | | | | 0.5 | % |
Insurance | | | | 6.6 | % |
Manufacturing | | | | 3.9 | % |
Metals & Mining | | | | 8.8 | % |
Oil & Gas | | | | 12.0 | % |
Paper & Related Products | | | | 0.8 | % |
Publishing | | | | 1.4 | % |
Retail | | | | 1.8 | % |
Telecommunications | | | | 6.9 | % |
Transportation Services | | | | 3.2 | % |
| |
|
|
| |
Total Investments | | | | 99.2 | % |
| |
|
|
| |
| | |
94 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—96.5% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Aerospace & Defense – 4.4% | | | | | | | |
BE Aerospace, Inc. (a) | | | 76,600 | | | 3,091,576 | |
Empresa Brasileira de Aeronautica S.A. ADR | | | 68,400 | | | 2,850,912 | |
Esterline Technologies Corp. (a) | | | 46,950 | | | 2,613,237 | |
| | | | |
|
| |
| | | | | | 8,555,725 | |
| | | | |
|
| |
Biotechnology – 3.2% | | | | | | | |
Illumina, Inc. (a) | | | 33,400 | | | 2,601,526 | |
Invitrogen Corp. (a) | | | 38,900 | | | 3,639,873 | |
| | | | |
|
| |
| | | | | | 6,241,399 | |
| | | | |
|
| |
Business Services – 1.9% | | | | | | | |
Navigant Consulting, Inc. (a) | | | 186,250 | | | 3,747,350 | |
| | | | |
|
| |
Computer Software – 14.2% | | | | | | | |
ACI Worldwide, Inc. (a) | | | 157,500 | | | 3,480,750 | |
BMC Software, Inc. (a) | | | 130,700 | | | 4,543,132 | |
Brocade Communications Systems, Inc. (a) | | | 388,700 | | | 2,783,092 | |
Check Point Software Technologies Ltd. (a) | | | 112,750 | | | 2,663,155 | |
F5 Networks, Inc. (a) | | | 94,750 | | | 2,144,192 | |
Nuance Communications, Inc. (a) | | | 270,750 | | | 5,490,810 | |
Red Hat, Inc. (a) | | | 186,400 | | | 3,834,248 | |
Satyam Computer Services Ltd. ADR | | | 115,100 | | | 2,955,768 | |
| | | | |
|
| |
| | | | | | 27,895,147 | |
| | | | |
|
| |
Consumer Products – 5.0% | | | | | | | |
Church & Dwight Co., Inc. | | | 74,400 | | | 4,227,408 | |
Crown Holdings, Inc. (a) | | | 117,100 | | | 3,142,964 | |
Jarden Corp. (a) | | | 112,350 | | | 2,395,302 | |
| | | | |
|
| |
| | | | | | 9,765,674 | |
| | | | |
|
| |
Diversified Manufacturing Operations – 4.5% | | | | | | | |
Actuant Corp., Class A | | | 132,400 | | | 4,484,388 | |
AMETEK, Inc. | | | 88,500 | | | 4,294,020 | |
| | | | |
|
| |
| | | | | | 8,778,408 | |
| | | | |
|
| |
Education – 2.1% | | | | | | | |
Corinthian Colleges, Inc. (a) | | | 117,329 | | | 1,331,684 | |
DeVry, Inc. | | | 49,500 | | | 2,821,500 | |
| | | | |
|
| |
| | | | | | 4,153,184 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 1.8% | | | | | | | |
ATMI, Inc. (a) | | | 60,750 | | | 1,788,480 | |
Thomas & Betts Corp. (a) | | | 49,500 | | | 1,854,270 | |
| | | | |
|
| |
| | | | | | 3,642,750 | |
| | | | |
|
| |
Financial Services – 2.3% | | | | | | | |
Affiliated Managers Group, Inc. (a) | | | 20,150 | | | 2,001,701 | |
MF Global Ltd. (a) | | | 185,450 | | | 2,442,377 | |
| | | | |
|
| |
| | | | | | 4,444,078 | |
| | | | |
|
| |
Health Care – 8.4% | | | | | | | |
DaVita, Inc. (a) | | | 80,900 | | | 4,239,969 | |
DENTSPLY International, Inc. | | | 98,500 | | | 3,828,695 | |
Gen-Probe, Inc. (a) | | | 67,500 | | | 3,804,300 | |
Pediatrix Medical Group, Inc. (a) | | | 50,900 | | | 3,462,218 | |
Volcano Corp. (a) | | | 97,050 | | | 1,148,102 | |
| | | | |
|
| |
| | | | | | 16,483,284 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Hotels & Lodging – 1.1% | | | | | | | |
LaSalle Hotel Properties | | | 64,900 | | | 2,081,343 | |
| | | | |
|
| |
Industrial Manufacturing – 8.2% | | | | | | | |
IDEX Corp. | | | 119,300 | | | 4,377,117 | |
Oshkosh Corp. | | | 77,100 | | | 3,130,260 | |
The Manitowoc Co., Inc. | | | 127,200 | | | 4,810,704 | |
WESCO International, Inc. (a) | | | 102,600 | | | 3,817,746 | |
| | | | |
|
| |
| | | | | | 16,135,827 | |
| | | | |
|
| |
Media – 1.3% | | | | | | | |
DreamWorks Animation SKG, Inc. (a) | | | 89,600 | | | 2,505,216 | |
| | | | |
|
| |
Oil & Gas – 15.4% | | | | | | | |
BJ Services Co. | | | 50,300 | | | 1,421,981 | |
Consol Energy, Inc. | | | 52,700 | | | 4,266,592 | |
Denbury Resources, Inc. (a) | | | 168,500 | | | 5,149,360 | |
Exterran Holdings, Inc. (a) | | | 64,900 | | | 4,334,671 | |
Massey Energy Co. | | | 111,550 | | | 5,837,411 | |
National-Oilwell Varco, Inc. (a) | | | 1 | | | 62 | |
Range Resources Corp. | | | 57,400 | | | 3,810,212 | |
Smith International, Inc. | | | 70,400 | | | 5,386,304 | |
| | | | |
|
| |
| | | | | | 30,206,593 | |
| | | | |
|
| |
Pharmaceuticals – 12.1% | | | | | | | |
Alexion Pharmaceuticals, Inc. (a) | | | 68,400 | | | 4,813,992 | |
Elan Corp. plc ADR (a) | | | 338,700 | | | 8,904,423 | |
OSI Pharmaceuticals, Inc. (a) | | | 129,050 | | | 4,471,582 | |
Santarus, Inc. (a) | | | 243,700 | | | 653,116 | |
Shire plc ADR | | | 88,500 | | | 4,862,190 | |
| | | | |
|
| |
| | | | | | 23,705,303 | |
| | | | |
|
| |
Retail – 5.5% | | | | | | | |
Dick’s Sporting Goods, Inc. (a) | | | 67,500 | | | 1,930,500 | |
O’Reilly Automotive, Inc. (a) | | | 83,400 | | | 2,407,758 | |
PetSmart, Inc. | | | 141,200 | | | 3,160,056 | |
Urban Outfitters, Inc. (a) | | | 92,700 | | | 3,174,975 | |
| | | | |
|
| |
| | | | | | 10,673,289 | |
| | | | |
|
| |
Telecommunications – 2.2% | | | | | | | |
Comverse Technology, Inc. (a) | | | 99,400 | | | 1,734,530 | |
Polycom, Inc. (a) | | | 119,950 | | | 2,686,880 | |
| | | | |
|
| |
| | | | | | 4,421,410 | |
| | | | |
|
| |
Transportation – 2.9% | | | | | | | |
Aircastle Ltd. | | | 110,050 | | | 1,538,499 | |
Kansas City Southern (a) | | | 91,800 | | | 4,138,344 | |
| | | | |
|
| |
| | | | | | 5,676,843 | |
| | | | |
|
| |
|
TOTAL COMMON STOCKS
(COST $171,738,981) | | | | | | 189,112,823 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 95 |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Investment Company—4.7% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
| | | | | | | |
Northern Institutional Government Select Portfolio, Shares class, 1.96% (b) | | | 9,130,193 | | | 9,130,193 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $9,130,193) | | | | | | 9,130,193 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $180,869,174) — 101.2% | | | | | | 198,243,016 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $195,929,545. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate presented represents the annualized one day yield that was in effect on April 30, 2008. |
ADR — American Depositary Receipt
PLC — Public Limited Co.
| | |
96 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR VALUE PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—94.3% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Aerospace & Defense – 4.3% | | | | | | | |
Lockheed Martin Corp. | | | 12,500 | | | 1,325,500 | |
Raytheon Co. | | | 28,300 | | | 1,810,351 | |
| | | | |
|
| |
| | | | | | 3,135,851 | |
| | | | |
|
| |
Banking – 3.6% | | | | | | | |
Bank of America Corp. | | | 29,100 | | | 1,092,414 | |
Wells Fargo & Co. | | | 50,700 | | | 1,508,325 | |
| | | | |
|
| |
| | | | | | 2,600,739 | |
| | | | |
|
| |
Business Services – 3.6% | | | | | | | |
Pitney Bowes, Inc. | | | 71,600 | | | 2,585,476 | |
| | | | |
|
| |
Computer Software – 6.8% | | | | | | | |
CA, Inc. | | | 135,600 | | | 3,002,184 | |
Microsoft Corp. | | | 66,700 | | | 1,902,284 | |
| | | | |
|
| |
| | | | | | 4,904,468 | |
| | | | |
|
| |
Conglomerates – 3.1% | | | | | | | |
Loews Corp. | | | 52,600 | | | 2,214,986 | |
| | | | |
|
| |
Consumer Products – 4.9% | | | | | | | |
Altria Group, Inc. | | | 30,800 | | | 616,000 | |
Kimberly-Clark Corp. | | | 27,500 | | | 1,759,725 | |
Kraft Foods, Inc. | | | 25,069 | | | 792,932 | |
Tyson Foods, Inc., Class A | | | 19,900 | | | 354,220 | |
| | | | |
|
| |
| | | | | | 3,522,877 | |
| | | | |
|
| |
Diversified Manufacturing Operations – 3.3% | | | | | | | |
Illinois Tool Works, Inc. | | | 18,400 | | | 962,136 | |
Ingersoll-Rand Co., Class A | | | 32,400 | | | 1,437,912 | |
| | | | |
|
| |
| | | | | | 2,400,048 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 0.7% | | | | | | | |
Agilent Technologies, Inc. (a) | | | 17,464 | | | 527,587 | |
| | | | |
|
| |
Energy – 1.5% | | | | | | | |
NRG Energy, Inc. (a) | | | 24,400 | | | 1,072,380 | |
| | | | |
|
| |
Financial Services – 6.4% | | | | | | | |
Citigroup, Inc. | | | 44,707 | | | 1,129,746 | |
Fannie Mae | | | 56,000 | | | 1,584,800 | |
JP Morgan Chase & Co. | | | 39,950 | | | 1,903,617 | |
| | | | |
|
| |
| | | | | | 4,618,163 | |
| | | | |
|
| |
Insurance – 10.6% | | | | | | | |
Aetna, Inc. | | | 16,700 | | | 728,120 | |
Aon Corp. | | | 36,800 | | | 1,670,352 | |
Genworth Financial, Inc., Class A | | | 93,500 | | | 2,156,110 | |
MGIC Investment Corp. | | | 18,400 | | | 239,752 | |
Radian Group, Inc. | | | 32,100 | | | 173,340 | |
The Hartford Financial Services Group, Inc. | | | 37,300 | | | 2,658,371 | |
| | | | |
|
| |
| | | | | | 7,626,045 | |
| | | | |
|
| |
Media – 8.9% | | | | | | | |
CBS Corp., Class B | | | 34,350 | | | 792,455 | |
Comcast Corp., Class A | | | 85,850 | | | 1,737,604 | |
Liberty Media Corp. Interactive, Class A (a) | | | 37,087 | | | 561,126 | |
| | | | | | | |
Common Stocks, (continued) | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Media, continued | | | | | | | |
Viacom, Inc., Class B (a) | | | 87,000 | | | 3,344,280 | |
| | | | |
|
| |
| | | | | | 6,435,465 | |
| | | | |
|
| |
Metals & Mining – 5.9% | | | | | | | |
AngloGold Ashanti Ltd. ADR | | | 27,300 | | | 931,476 | |
Barrick Gold Corp. | | | 57,600 | | | 2,224,512 | |
United States Steel Corp. | | | 7,300 | | | 1,123,835 | |
| | | | |
|
| |
| | | | | | 4,279,823 | |
| | | | |
|
| |
Oil & Gas – 12.6% | | | | | | | |
Apache Corp. | | | 24,400 | | | 3,286,192 | |
ConocoPhillips | | | 9,571 | | | 824,542 | |
Hess Corp. | | | 13,600 | | | 1,444,320 | |
Noble Energy, Inc. | | | 32,600 | | | 2,836,200 | |
Talisman Energy, Inc. | | | 34,600 | | | 705,148 | |
| | | | |
|
| |
| | | | | | 9,096,402 | |
| | | | |
|
| |
Paper & Related Products – 0.8% | | | | | | | |
International Paper Co. | | | 22,300 | | | 583,591 | |
| | | | |
|
| |
Pharmaceuticals – 4.4% | | | | | | | |
Amgen, Inc. (a) | | | 36,100 | | | 1,511,507 | |
Sanofi-Aventis ADR | | | 42,700 | | | 1,647,366 | |
| | | | |
|
| |
| | | | | | 3,158,873 | |
| | | | |
|
| |
Telecommunications – 7.6% | | | | | | | |
AT&T, Inc. | | | 51,791 | | | 2,004,830 | |
Motorola, Inc. | | | 202,400 | | | 2,015,904 | |
Sprint Nextel Corp. | | | 45,600 | | | 364,344 | |
Verizon Communications, Inc. | | | 27,800 | | | 1,069,744 | |
| | | | |
|
| |
| | | | | | 5,454,822 | |
| | | | |
|
| |
Tobacco – 2.2% | | | | | | | |
Philip Morris International, Inc. (a) | | | 30,800 | | | 1,571,724 | |
| | | | |
|
| |
Transportation – 3.1% | | | | | | | |
Union Pacific Corp. | | | 15,300 | | | 2,221,407 | |
| | | | |
|
| |
| | | | | | | |
TOTAL COMMON STOCKS
(COST $65,012,345) | | | | | | 68,010,727 | |
| | | | |
|
| |
Investment Company—5.3% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Government Select Portfolio, Shares class, 1.96%, (b) | | | 3,793,994 | | | 3,793,994 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $3,793,994) | | | | | | 3,793,994 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $68,806,339) — 99.6% | | | | | | 71,804,721 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $72,120,671. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate presented represents the annualized one day yield that was in effect on April 30, 2008. |
ADR — American Depositary Receipt
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 97 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Core Plus
Fixed Income
Portfolio | | High Yield
Fixed Income
Portfolio | | Intermediate
Duration
Fixed Income
Portfolio | | Growth
Portfolio | | International
Equity
Portfolio | |
|
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | | | | |
Investments in non-affiliates, at value | | $ | 127,858,766 | | $ | 13,668,337 | | $ | 16,871,376 | | $ | 81,740,894 | | $ | 378,942,268 | |
Foreign currency, at value | | | — | | | — | | | — | | | — | | | 1,572,984 | |
Interest and dividends receivable | | | 920,962 | | | 358,088 | | | 110,924 | | | 74,474 | | | 2,286,427 | |
Receivable for investments sold | | | 125,569 | | | — | | | 510,189 | | | 681,878 | | | 39,343 | |
Prepaid expenses and other assets | | | 1,403 | | | 3,130 | | | 207 | | | 1,142 | | | 5,951 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 128,906,700 | | | 14,029,555 | | | 17,492,696 | | | 82,498,388 | | | 382,846,973 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | | | | |
Payable for investments purchased | | | 21,700,866 | | | — | | | 3,528,743 | | | 429,198 | | | 532,050 | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | | | | |
Investment Management | | | 42,252 | | | 6,744 | | | 4,721 | | | 31,588 | | | 257,201 | |
Administration | | | 6,832 | | | 441 | | | 1,707 | | | 2,559 | | | 15,685 | |
Compliance Service | | | 141 | | | 13 | | | 17 | | | 74 | | | 497 | |
Other | | | 5,707 | | | 689 | | | 2,717 | | | 9,656 | | | 34,556 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 21,755,798 | | | 7,887 | | | 3,537,905 | | | 473,075 | | | 839,989 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | | | | | | | |
Applicable to investors’ beneficial interest | | $ | 107,150,902 | | $ | 14,021,668 | | $ | 13,954,791 | | $ | 82,025,313 | | $ | 382,006,984 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | $ | 131,291,027 | | $ | 14,615,217 | | $ | 17,501,070 | | $ | 69,701,227 | | $ | 331,767,500 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Foreign currency, at cost | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 1,560,548 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | |
98 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
| | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
Assets: | | | | | | | |
Investments in non-affiliates, at value | | $ | 198,243,016 | | $ | 71,804,721 | |
Interest and dividends receivable | | | 49,933 | | | 67,253 | |
Receivable for investments sold | | | 8,205,063 | | | 283,094 | |
Prepaid expenses and other assets | | | 2,968 | | | 1,291 | |
| |
|
| |
|
| |
Total Assets | | | 206,500,980 | | | 72,156,359 | |
| |
|
| |
|
| |
Liabilities: | | | | | | | |
Payable for investments purchased | | | 10,429,869 | | | — | |
Accrued expenses and other liabilities: | | | | | | | |
Investment Management | | | 123,879 | | | 30,613 | |
Administration | | | 10,562 | | | 2,380 | |
Compliance Service | | | 282 | | | 81 | |
Other | | | 6,843 | | | 2,614 | |
| |
|
| |
|
| |
Total Liabilities | | | 10,571,435 | | | 35,688 | |
| |
|
| |
|
| |
Net Assets: | | | | | | | |
Applicable to investors’ beneficial interest | | $ | 195,929,545 | | $ | 72,120,671 | |
| |
|
| |
|
| |
Total Investments, at cost | | $ | 180,869,174 | | $ | 68,806,339 | |
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 99 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2008 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Core Plus
Fixed Income
Portfolio | | High Yield
Fixed Income
Portfolio | | Intermediate
Duration
Fixed Income
Portfolio | | Growth
Portfolio | | International
Equity
Portfolio | |
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | | | | |
Interest | | $ | 2,945,066 | | $ | 612,506 | | $ | 370,761 | | $ | — | | $ | 38,615 | |
Dividends | | | 107,344 | | | 4,918 | | | 20,569 | | | 400,300 | | | 6,100,654 | |
Foreign tax withholding | | | — | | | — | | | — | | | — | | | (627,218 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income | | | 3,052,410 | | | 617,424 | | | 391,330 | | | 400,300 | | | 5,512,051 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Expenses: | | | | | | | | | | | | | | | | |
Investment Management | | | 260,224 | | | 40,631 | | | 29,353 | | | 192,718 | | | 1,253,632 | |
Administration | | | 12,687 | | | 1,548 | | | 1,679 | | | 9,363 | | | 43,687 | |
Accounting | | | 34,631 | | | 39,235 | | | 32,094 | | | 33,615 | | | 48,370 | |
Compliance Service | | | 333 | | | 36 | | | 39 | | | 228 | | | 1,176 | |
Custodian | | | 5,205 | | | 888 | | | 1,613 | | | 3,797 | | | 116,364 | |
Printing | | | 444 | | | 49 | | | 77 | | | 358 | | | 1,893 | |
Professional | | | 1,947 | | | 295 | | | 162 | | | 1,493 | | | 6,783 | |
Trustee | | | 651 | | | 77 | | | 83 | | | 484 | | | 2,317 | |
Other | | | 3,382 | | | 454 | | | 442 | | | 2,572 | | | 11,823 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Expenses | | | 319,504 | | | 83,213 | | | 65,542 | | | 244,628 | | | 1,486,045 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | 2,732,906 | | | 534,211 | | | 325,788 | | | 155,672 | | | 4,026,006 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies: | | | | | | | | | | | | | | | | |
Net realized gains (losses) from investment and foreign currency transactions | | | (323,666 | ) | | (53,540 | ) | | (8,207 | ) | | 2,536,512 | | | 21,492,000 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (3,313,157 | ) | | (733,817 | ) | | (543,869 | ) | | (10,179,207 | ) | | (74,548,272 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains (losses) from investment and foreign currency transactions | | | (3,636,823 | ) | | (787,357 | ) | | (552,076 | ) | | (7,642,695 | ) | | (53,056,272 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (903,917 | ) | $ | (253,146 | ) | $ | (226,288 | ) | $ | (7,487,023 | ) | $ | (49,030,266 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | |
100 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Operations — For the six months ended April 30, 2008 (Unaudited) (continued)
| | | | | | | |
| | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
| |
Investment Income: | | | | | | | |
Dividends | | $ | 398,103 | | $ | 767,817 | |
| |
|
| |
|
| |
Total Investment Income | | | 398,103 | | | 767,817 | |
| |
|
| |
|
| |
| | | | | | | |
Expenses: | | | | | | | |
Investment Management | | | 770,287 | | | 192,741 | |
Administration | | | 22,020 | | | 8,396 | |
Accounting | | | 27,062 | | | 26,501 | |
Compliance Service | | | 501 | | | 201 | |
Custodian | | | 7,474 | | | 2,559 | |
Printing | | | 929 | | | 390 | |
Professional | | | 3,129 | | | 1,149 | |
Trustee | | | 1,055 | | | 431 | |
Other | | | 5,922 | | | 2,287 | |
| |
|
| |
|
| |
Total Expenses | | | 838,379 | | | 234,655 | |
| |
|
| |
|
| |
| | | | | | | |
Net Investment Income (Loss) | | | (440,276 | ) | | 533,162 | |
| |
|
| |
|
| |
| | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies: | | | | | | | |
Net realized gains (losses) from investments and foreign currency transactions | | | 19,546,781 | | | 638,240 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (25,370,794 | ) | | (9,799,293 | ) |
| |
|
| |
|
| |
| | | | | | | |
Net realized/unrealized gains (losses) from investment and foreign currency transactions | | | (5,824,013 | ) | | (9,161,053 | ) |
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (6,264,289 | ) | $ | (8,627,891 | ) |
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 101 |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets
| | | | | | | | | | | | | |
| | Core Plus
Fixed Income
Portfolio | | High Yield
Fixed Income
Portfolio | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 2,732,906 | | $ | 5,909,376 | | $ | 534,211 | | $ | 931,443 | |
Net realized gains (losses) from investment and foreign currency transactions | | | (323,666 | ) | | 2,910,717 | | | (53,540 | ) | | 119,132 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (3,313,157 | ) | | (1,031,793 | ) | | (733,817 | ) | | (279,652 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (903,917 | ) | | 7,788,300 | | | (253,146 | ) | | 770,923 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 11,076,269 | | | 24,166,324 | | | 1,982,026 | | | 5,258,548 | |
Value of withdrawals | | | (22,833,358 | ) | | (23,334,647 | ) | | (2,194,475 | ) | | (4,260,973 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (11,757,089 | ) | | 831,677 | | | (212,449 | ) | | 997,575 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (12,661,006 | ) | | 8,619,977 | | | (465,595 | ) | | 1,768,498 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 119,811,908 | | | 111,191,931 | | | 14,487,263 | | | 12,718,765 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 107,150,902 | | $ | 119,811,908 | | $ | 14,021,668 | | $ | 14,487,263 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
102 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
| | | | | | | |
| | Intermediate Duration
Fixed Income
Portfolio | |
|
|
|
|
| | | For the six
months ended
April 30, 2008
(Unaudited) | | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | |
Operations: | | | | | | | |
Net investment income (loss) | | $ | 325,788 | | $ | 882,974 | |
Net realized gains (losses) from investment and foreign currency transactions | | | (8,207 | ) | | 848,391 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (543,869 | ) | | (182,994 | ) |
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (226,288 | ) | | 1,548,371 | |
| |
|
| |
|
| |
Proceeds from contributions | | | 1,413,784 | | | 2,605,895 | |
Value of withdrawals | | | (2,291,274 | ) | | (8,612,265 | ) |
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (877,490 | ) | | (6,006,370 | ) |
| |
|
| |
|
| |
Change in net assets | | | (1,103,778 | ) | | (4,457,999 | ) |
| | | | | | | |
Net Assets: | | | | | | | |
Beginning of period | | | 15,058,569 | | | 19,516,568 | |
| |
|
| |
|
| |
End of period | | $ | 13,954,791 | | $ | 15,058,569 | |
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 103 |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International Equity
Portfolio | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 155,672 | | $ | 334,013 | | $ | 4,026,006 | | $ | 8,527,724 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 2,536,512 | | | 4,271,356 | | | 21,492,000 | | | 36,079,080 | |
Change in unrealized appreciation (depreciation) from investments and foreign currencies | | | (10,179,207 | ) | | 16,611,654 | | | (74,548,272 | ) | | 42,586,569 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (7,487,023 | ) | | 21,217,023 | | | (49,030,266 | ) | | 87,193,373 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 8,140,434 | | | 25,944,124 | | | 23,350,477 | | | 90,634,524 | |
Value of withdrawals | | | (8,313,975 | ) | | (17,303,034 | ) | | (47,374,836 | ) | | (56,520,981 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (173,541 | ) | | 8,641,090 | | | (24,024,359 | ) | | 34,113,543 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (7,660,564 | ) | | 29,858,113 | | | (73,054,625 | ) | | 121,306,916 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 89,685,877 | | | 59,827,764 | | | 455,061,609 | | | 333,754,693 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 82,025,313 | | $ | 89,685,877 | | $ | 382,006,984 | | $ | 455,061,609 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
104 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (440,276 | ) | $ | (1,201,508 | ) | $ | 533,162 | | $ | 992,431 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 19,546,781 | | | 58,390,322 | | | 638,240 | | | 6,083,399 | |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | (25,370,794 | ) | | 1,890,389 | | | (9,799,293 | ) | | 71,241 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (6,264,289 | ) | | 59,079,203 | | | (8,627,891 | ) | | 7,147,071 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 8,629,465 | | | 77,393,032 | | | 5,665,260 | | | 23,927,675 | |
Value of withdrawals | | | (30,704,097 | ) | | (153,698,612 | ) | | (7,574,938 | ) | | (15,848,601 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (22,074,632 | ) | | (76,305,580 | ) | | (1,909,678 | ) | | 8,079,074 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (28,338,921 | ) | | (17,226,377 | ) | | (10,537,569 | ) | | 15,226,145 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 224,268,466 | | | 241,494,843 | | | 82,658,240 | | | 67,432,095 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 195,929,545 | | $ | 224,268,466 | | $ | 72,120,671 | | $ | 82,658,240 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 105 |
| | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplementary Data | |
| | | | |
|
| | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses
to Average
Net Assets(b) | | Ratio of Net
Investment
Income (Loss)
to Average
Net Assets(b) | | Ratio of
Expenses
to Average
Net Assets(b)(c) | | Portfolio
Turnover
Rate(a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE PLUS FIXED INCOME PORTFOLIO | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 5.80 | % | | | $ | 203,551 | | | 0.48 | % | | 4.38 | % | | 0.48 | % | | 70.91 | % |
Year Ended October 31, 2004 | | 5.56 | % | | | | 169,459 | | | 0.52 | % | | 4.31 | % | | 0.52 | % | | 34.88 | % |
Year Ended October 31, 2005 | | 1.64 | %(d) | | | | 122,530 | | | 0.40 | %(d) | | 4.25 | %(d) | | 0.53 | % | | 176.60 | % |
Year Ended October 31, 2006 | | 5.55 | % | | | | 111,192 | | | 0.63 | % | | 4.96 | % | | 0.63 | % | | 273.91 | % |
Year Ended October 31, 2007 | | 6.94 | % | | | | 119,812 | | | 0.59 | % | | 4.99 | % | | 0.59 | % | | 252.56 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (0.87 | ) % | | | | 107,151 | | | 0.58 | % | | 4.93 | % | | 0.58 | % | | 61.96 | % |
|
HIGH YIELD FIXED INCOME PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2006 (e) | | 7.41 | % | | | $ | 12,719 | | | 1.86 | % | | 6.33 | % | | 1.86 | % | | 13.61 | % |
Year Ended October 31, 2007 | | 6.41 | % | | | | 14,487 | | | 1.37 | % | | 7.12 | % | | 1.37 | % | | 30.77 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (1.81 | )% | | | | 14,022 | | | 1.23 | % | | 7.90 | % | | 1.23 | % | | 14.28 | % |
|
INTERMEDIATE DURATION FIXED INCOME PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 4.42 | % | | | $ | 84,488 | | | 0.53 | % | | 3.70 | % | | 0.53 | % | | 98.42 | % |
Year Ended October 31, 2004 | | 4.48 | % | | | | 63,697 | | | 0.57 | % | | 3.54 | % | | 0.57 | % | | 50.06 | % |
Year Ended October 31, 2005 | | 0.76 | %(d) | | | | 32,810 | | | 0.49 | %(d) | | 3.85 | %(d) | | 0.58 | % | | 107.26 | % |
Year Ended October 31, 2006 | | 5.29 | % | | | | 19,517 | | | 0.78 | % | | 4.58 | % | | 0.78 | % | | 236.51 | % |
Year Ended October 31, 2007 | | 8.38 | % | | | | 15,059 | | | 0.84 | % | | 4.68 | % | | 0.84 | % | | 219.76 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (1.53 | ) % | | | | 13,955 | | | 0.89 | % | | 4.44 | % | | 0.89 | % | | 52.13 | % |
|
GROWTH PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (e) | | (0.86 | ) % | | | $ | 49,680 | | | 0.72 | % | | 0.06 | % | | 0.72 | % | | 53.08 | % |
Year Ended October 31, 2005 | | 13.59 | %(d) | | | | 49,415 | | | 0.63 | %(d) | | 0.77 | %(d) | | 0.68 | % | | 79.54 | % |
Year Ended October 31, 2006 | | 7.53 | % | | | | 59,828 | | | 0.69 | % | | 0.38 | % | | 0.69 | % | | 75.06 | % |
Year Ended October 31, 2007 | | 31.11 | % | | | | 89,686 | | | 0.62 | % | | 0.45 | % | | 0.62 | % | | 57.04 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (8.33 | ) % | | | | 82,025 | | | 0.60 | % | | 0.38 | % | | 0.60 | % | | 29.44 | % |
|
INTERNATIONAL EQUITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 23.70 | % | | | $ | 201,805 | | | 0.96 | % | | 1.00 | % | | 0.96 | % | | 68.51 | % |
Year Ended October 31, 2004 | | 20.29 | % | | | | 220,025 | | | 0.94 | % | | 1.53 | % | | 0.94 | % | | 106.11 | % |
Year Ended October 31, 2005 | | 19.54 | % | | | | 230,230 | | | 0.84 | % | | 1.92 | % | | 0.84 | % | | 31.32 | % |
Year Ended October 31, 2006 | | 32.79 | % | | | | 333,755 | | | 0.86 | % | | 2.03 | % | | 0.86 | % | | 33.39 | % |
Year Ended October 31, 2007 | | 25.17 | % | | | | 455,062 | | | 0.79 | % | | 2.16 | % | | 0.79 | % | | 26.08 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (10.79 | ) % | | | | 382,007 | | | 0.78 | % | | 2.11 | % | | 0.78 | % | | 13.91 | % |
|
OPPORTUNITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 33.30 | % | | | $ | 426,181 | | | 0.91 | % | | (0.62 | ) % | | 0.91 | % | | 152.05 | % |
Year Ended October 31, 2004 | | 5.93 | % | | | | 359,333 | | | 0.88 | % | | (0.52 | ) % | | 0.88 | % | | 81.75 | % |
Year Ended October 31, 2005 | | 14.35 | %(d) | | | | 218,778 | | | 0.85 | %(d) | | (0.45 | )%(d) | | 0.90 | % | | 63.95 | % |
Year Ended October 31, 2006 | | 19.54 | % | | | | 241,495 | | | 0.91 | % | | (0.40 | ) % | | 0.91 | % | | 60.83 | % |
Year Ended October 31, 2007 | | 30.54 | % | | | | 224,268 | | | 0.91 | % | | (0.55 | ) % | | 0.91 | % | | 69.41 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (2.63 | ) % | | | | 195,930 | | | 0.87 | % | | (0.46 | ) % | | 0.87 | % | | 39.97 | % |
|
VALUE PORTFOLIO | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (e) | | 6.12 | % | | | $ | 61,414 | | | 0.71 | % | | 1.28 | % | | 0.71 | % | | 10.33 | % |
Year Ended October 31, 2005 | | 15.23 | %(d) | | | | 54,150 | | | 0.64 | %(d) | | 1.15 | %(d) | | 0.69 | % | | 16.45 | % |
Year Ended October 31, 2006 | | 22.21 | % | | | | 67,432 | | | 0.71 | % | | 1.23 | % | | 0.71 | % | | 20.63 | % |
Year Ended October 31, 2007 | | 10.28 | % | | | | 82,658 | | | 0.66 | % | | 1.29 | % | | 0.66 | % | | 18.67 | % |
Six Months Ended April 30, 2008 (Unaudited) | | (10.38 | ) % | | | | 72,121 | | | 0.64 | % | | 1.45 | % | | 0.64 | % | | 14.42 | % |
|
| |
(a) | Not annualized for periods less than one year. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(d) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.12%, 0.09%, 0.05%, 0.04% and 0.05% for the Core Plus Fixed Income Portfolio, Intermediate Duration Fixed Income Portfolio, Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively. |
| |
(e) | High Yield Fixed Income Portfolio commenced operations on November 18, 2005. |
| |
| Growth Portfolio commenced operations on May 7, 2004. |
| |
| Value Portfolio commenced operations on May 7, 2004. |
See notes to financial statements.
| |
106 | HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited)
| | | |
1. | Organization: |
| |
| The HSBC Investor Portfolios (the “Portfolio Trust’’), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,’’ collectively the “Portfolios’’): |
| |
| | Portfolio | Short Name |
| |
|
|
| | | |
| | HSBC Investor Core Plus Fixed Income Portfolio | Core Plus Fixed Income Portfolio |
| | | |
| | HSBC Investor High Yield Fixed Income Portfolio | High Yield Fixed Income Portfolio |
| | | |
| | HSBC Investor Intermediate Duration Fixed Income Portfolio | Intermediate Duration Fixed Income Portfolio |
| | | |
| | HSBC Investor Growth Portfolio | Growth Portfolio |
| | | |
| | HSBC Investor International Equity Portfolio | International Equity Portfolio |
| | | |
| | HSBC Investor Opportunity Portfolio | Opportunity Portfolio |
| | | |
| | HSBC Investor Value Portfolio | Value Portfolio |
| | | |
| The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest their investable assets in the Portfolios. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios. |
| |
| The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
| |
| Under the Portfolio Trust’s organizational documents, the Portfolios’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolios may enter into contracts with their service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolios expect that risk of loss to be remote. |
| |
2. | Significant Accounting Policies: |
| |
| The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP’’). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
| |
| Securities Valuation: |
| |
| Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Portfolios’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security. |
| |
| The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Portfolios’ Board of Trustees. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural |
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HSBC INVESTOR PORTFOLIOS | 107 |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)
| |
| disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. |
| |
| Investment Transactions and Related Income: |
| |
| Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date. |
| |
| Foreign Currency Translation: |
| |
| The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. |
| |
| Forward Foreign Currency Exchange Contracts: |
| |
| The Portfolios may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. |
| |
| Futures Contracts: |
| |
| Each Portfolio may invest in futures contracts for the purpose of hedging their existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,’’ are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets. |
| |
| Mortgage Dollar Roll Transactions: |
| |
| The Core Plus Fixed Income Portfolio, the High Yield Fixed Income Portfolio and the Intermediate Duration Fixed Income Portfolio may engage in dollar roll transactions with respect to mortgage securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. In a dollar roll transaction, the Portfolio sells a mortgage-backed security and simultaneously agrees to repurchase a similar security on a specified future date at an agreed upon price. During the roll period, the Portfolio will not be entitled to receive any interest or principal paid on the securities sold. The Portfolio is compensated for the lost interest on the securities sold by the difference between the sales price and the lower price for the future repurchase as well as by the interest earned on the reinvestment of the sales proceeds. The Portfolio may also be compensated by receipt of a commitment fee. |
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108 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Restricted and Illiquid Securities: |
| |
| A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act’’) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the investment adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At April 30, 2008 the HSBC Core Plus Fixed Income Portfolio held restricted securities that were illiquid, representing 0.02% of net assets, as follows: |
| | | | | | | | | | | | | | |
| Security Name | | Acquisition
Date | | Acquisition
Cost($) | | Principal
Amount($) | | Value($) | |
|
| |
| |
| |
| |
| |
| FHA Weyerhauser, 7.43%, 1/1/24 | | | 3/28/2002 | | 25,228 | | | 26,696 | �� | | 26,696 | | |
| |
| Repurchase Agreements: |
| |
| The Portfolios may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer’’ (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Portfolio plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a fair value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Portfolios’ custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Portfolio has the right to use the collateral to offset losses incurred. There is a potential for loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Portfolio seeks to assert its rights. |
| |
| Expense Allocations: |
| |
| Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis. |
| |
| Federal Income Taxes: |
| |
| Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies. |
| |
| In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Portfolio Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Portfolios’ net assets or results of operations. |
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HSBC INVESTOR PORTFOLIOS | 109 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| New Accounting Pronouncements: |
| |
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements”(“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
| |
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Portfolios financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
| |
3. | Related Party Transactions: |
| |
| Investment Management: |
| |
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC’’ or the “Investment Adviser’’), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Waddell & Reed Investment Management Company, AllianceBernstein Investment Research and Management, Westfield Capital Management, LLC and NWQ Investment Management Co., LLC serve as Sub-Investment Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios. |
| |
| For its services, the Investment Adviser receives a fee, accrued daily and paid monthly, at an annual rate of 0.60% of the High Yield Fixed Income Portfolio’s average daily net assets and 0.40% of the Intermediate Duration Fixed Income Portfolio’s average daily net assets. |
| |
| For its services as Investment Adviser, HSBC receives, from the Core Plus Fixed Income Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | Fee Rate | |
|
| |
| |
| Up to $50 million | | 0.575 | % | |
| In excess of $50 million but not exceeding $95 million | | 0.450 | % | |
| In excess of $95 million but not exceeding $150 million | | 0.200 | % | |
| In excess of $150 million but not exceeding $250 million | | 0.400 | % | |
| In excess of $250 million | | 0.350 | % | |
| |
| For their services, the Investment Adviser and Waddell & Reed Investment Management Company receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | Fee Rate | |
|
| |
| |
| Up to $50 million | | 0.500 | % | |
| In excess of $50 million but not exceeding $100 million | | 0.425 | % | |
| In excess of $100 million but not exceeding $200 million | | 0.375 | % | |
| In excess of $200 million | | 0.325 | % | |
| |
110 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| For their services, the Investment Adviser and AllianceBernstein Investment Research and Management receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of: | | Fee Rate | |
|
| |
| |
| Up to $10 million | | 1.015 | % | |
| In excess of $10 million but not exceeding $25 million | | 0.925 | % | |
| In excess of $25 million but not exceeding $50 million | | 0.79 | % | |
| In excess of $50 million but not exceeding $100 million | | 0.70 | % | |
| In excess of $100 million | | 0.61 | % | |
| |
| For their services, the Investment Adviser and Westfield Capital Management, LLC receive in aggregate, a fee, accrued daily and paid monthly, at an annual rate of 0.80% of the Opportunity Portfolio’s average daily net assets. |
| |
| For their services, the Investment Adviser and NWQ Investment Management Co., LLC receive in aggregate, from the Value Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | Fee Rate | |
|
| |
| |
| Up to $500 million | | 0.525 | % | |
| In excess of $500 million but not exceeding $1 billion | | 0.475 | % | |
| In excess of $1 billion | | 0.425 | % | |
| |
| Administration: |
| |
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | Fee Rate | |
|
| |
| |
| Up to $12 billion | | 0.0525 | % | |
| In excess of $12 billion | | 0.0350 | % | |
| |
| The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and Feeder Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half of the administration fee, for a combination of the total fee rate set forth above. |
| |
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio’’), a wholly-owned subsidiary of The Citigroup, Inc., serves as the Portfolio Trust’s sub-administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
| |
| Under a Compliance Services Agreement between the Portfolios and Citi Ohio (the “CCO Agreement’’), Citi Ohio makes an employee available to serve as the Portfolios’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.’’ Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
| |
| Fund Accounting, Custodian and Trustee: |
| |
| Citi Ohio provides fund accounting services for the Portfolios. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly. |
| |
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee |
| |
HSBC INVESTOR PORTFOLIOS | 111 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
4. | Investment Transactions: |
| |
| Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2008 were as follows: |
| | | | | | | | | | | | | | |
| Portfolio Name | | Purchases
(excluding U.S.
Government) | | Sales
(excluding U.S.
Government) | | Purchases
of U.S.
Government | | Sales
of U.S.
Government | |
|
| |
| |
| |
| |
| |
| Core Plus Fixed Income Portfolio | | $ | 25,839,917 | | $ | 44,373,528 | | $ | 38,241,573 | | $ | 29,287,671 | |
| High Yield Fixed Income Portfolio | | | 1,909,068 | | | 1,874,639 | | | — | | | — | |
| Intermediate Duration Fixed Income Portfolio | | | 1,981,553 | | | 5,467,875 | | | 4,902,753 | | | 2,961,503 | |
| Growth Portfolio | | | 23,757,509 | | | 26,341,429 | | | — | | | — | |
| International Equity Portfolio | | | 53,593,082 | | | 64,674,325 | | | — | | | — | |
| Opportunity Portfolio | | | 76,590,560 | | | 101,410,149 | | | — | | | — | |
| Value Portfolio | | | 10,064,290 | | | 10,311,265 | | | — | | | — | |
| |
5. | Federal Income Tax Information: |
| |
| At April 30, 2008, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows: |
| | | | | | | | | | | | | | |
| Portfolio Name | | Tax Cost | | Tax
Unrealized
Appreciation | | Tax
Unrealized
Depreciation | | Net
Unrealized
Appreciation
(Depreciation) | |
|
| |
| |
| |
| |
| |
| Core Plus Fixed Income Portfolio | | $ | 131,318,596 | | $ | 909,519 | | $ | (4,369,349 | ) | $ | (3,459,830 | ) |
| High Yield Fixed Income Portfolio | | | 14,615,217 | | | 172,528 | | | (1,119,408 | ) | | (946,880 | ) |
| Intermediate Duration Fixed Income Portfolio | | | 17,506,162 | | | 82,336 | | | (717,122 | ) | | (634,786 | ) |
| Growth Portfolio | | | 69,983,120 | | | 14,085,129 | | | (2,327,355 | ) | | 11,757,774 | |
| International Equity Portfolio | | | 332,759,907 | | | 72,693,893 | | | (26,511,532 | ) | | 46,182,361 | |
| Opportunity Portfolio | | | 181,435,446 | | | 30,998,404 | | | (14,190,834 | ) | | 16,807,570 | |
| Value Portfolio | | | 68,683,585 | | | 13,285,531 | | | (10,164,395 | ) | | 3,121,136 | |
| |
6. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC’’) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
| |
112 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
7. | Subsequent Event for Sub-Adviser Change: |
| |
| Effective May 12, 2008, Winslow Capital Management Inc. (“Winslow”) serves as the Sub-Adviser to the Growth Portfolio. |
| |
| Effective May 12, 2008, the Investment Adviser and Winslow receives in aggregate, from the HSBC Investor Family of Funds, a fee, accrued daily and paid monthly, at an annual rate of: |
| | | |
| Based on Sub-Advised HSBC Investor Family of Funds Average Daily Net Assets of: | | Fee Rate |
|
| |
|
| Up to $250 million | | 0.40% |
| In excess of $250 million but not exceeding $500 million | | 0.35% |
| In excess of $500 million but not exceeding $750 million | | 0.30% |
| In excess of $750 million but not exceeding $1 billion | | 0.25% |
| In excess $1 billion | | 0.20% |
| |
HSBC INVESTOR PORTFOLIOS | 113 |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval—as of April 30, 2008 (Unaudited) |
| | |
| The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”). |
| | |
| In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others: |
| | |
| | Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
| | |
| | Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services |
| |
114 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval—as of April 30, 2008 (Unaudited) (continued) |
| | |
| | provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements. |
| |
HSBC INVESTOR PORTFOLIOS | 115 |
|
HSBC INVESTOR PORTFOLIOS |
|
Table of Shareholder Expenses (unaudited)—as of April 30, 2008 |
| | |
| As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds. |
| | |
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008. |
| | |
| Actual Example |
| | |
| The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
| | | | | | | | | | | | | | |
| | | Beginning
Account Value
11/1/07 | | Ending
Account Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 – 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 – 4/30/08 | |
| | |
| |
| |
| |
| |
| | | | | | | | | | | | | | |
| Core Plus Fixed Income Portfolio | | $ | 1,000.00 | | $ | 991.30 | | $ | 2.87 | | 0.58 | % | |
| High Yield Fixed Income Portfolio | | | 1,000.00 | | | 981.90 | | | 6.06 | | 1.23 | % | |
| Intermediate Duration Fixed Income Portfolio | | | 1,000.00 | | | 984.70 | | | 4.39 | | 0.89 | % | |
| Growth Portfolio | | | 1,000.00 | | | 916.70 | | | 2.86 | | 0.60 | % | |
| International Equity Portfolio | | | 1,000.00 | | | 892.10 | | | 3.67 | | 0.78 | % | |
| Opportunity Portfolio | | | 1,000.00 | | | 973.70 | | | 4.27 | | 0.87 | % | |
| Value Portfolio | | | 1,000.00 | | | 896.20 | | | 3.02 | | 0.64 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
116 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Table of Shareholder Expenses (unaudited)—as of April 30, 2008 (continued) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | | |
| | Beginning
Account Value
11/1/07 | | Ending
Account Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 – 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 – 4/30/08 | |
| |
| |
| |
| |
| |
Core Plus Fixed Income Portfolio | | $ | 1,000.00 | | | $ | 1,021.98 | | | $ | 2.92 | | | | 0.58 | % | |
High Yield Fixed Income Portfolio | | | 1,000.00 | | | | 1,018.75 | | | | 6.17 | | | | 1.23 | % | |
Intermediate Duration Fixed Income Portfolio | | | 1,000.00 | | | | 1,020.44 | | | | 4.47 | | | | 0.89 | % | |
Growth Portfolio | | | 1,000.00 | | | | 1,021.88 | | | | 3.02 | | | | 0.60 | % | |
International Equity Portfolio | | | 1,000.00 | | | | 1,020.98 | | | | 3.92 | | | | 0.78 | % | |
Opportunity Portfolio | | | 1,000.00 | | | | 1,020.54 | | | | 4.37 | | | | 0.87 | % | |
Value Portfolio | | | 1,000.00 | | | | 1,021.68 | | | | 3.22 | | | | 0.64 | % | |
| |
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
HSBC INVESTOR PORTFOLIOS | 117 |
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities is available without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders or on the Fund’s website at www.investorfunds.us.hsbc.com and the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. A copy of the Fund’s voting record for the most recent 12 month period ending June 30 is available at the Commission’s website at http://www.sec.gov.
Schedules of Portfolio Investments for fiscal quarters ending January 31 and July 31 will be available no later than 60 days after each period end, without charge, on the Fund’s website at www.investorfunds.us.hsbc.com and on the Commission’s website at http://www.sec.gov.
An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
| |
118 | HSBC INVESTOR PORTFOLIOS |
[This Page Intentionally Left Blank]
[This Page Intentionally Left Blank]
| | |
HSBC INVESTOR FAMILY OF FUNDS:
INVESTMENT ADVISER AND ADMINISTRATOR
HSBC Investments (USA) Inc.
452 Fifth Avenue
New York, NY 10018
Effective June 2, 2008, changed name to HSBC Global Asset
Management (USA) Inc. SUB-ADVISERS
HSBC Investor Growth Portfolio
Waddell & Reed Investment Management Company
6300 Lamar Avenue
Overland Park, KS 66202
Through May 12, 2008
HSBC Investor Growth Portfolio
Winslow Capital Management, Inc.
4720 IDS Tower
80th South Eighth Street
Minneapolis, MN 55402
Effective May 13, 2008
HSBC Growth and Income Fund
TransAmerica Investment Management, LLC
1150 S. Olive Street, Suite 2700
Los Angeles, CA 90015
HSBC Investor International Equity Portfolio
AllianceBernstein Investment Research and Management
1345 Avenue of the Americas, 39th Floor
New York, NY 10105
HSBC Investor Mid-Cap Fund
Munder Capital Management
Munder Capital Center
480 Pierce Street
Birmingham, MI 48009-6063
HSBC Investor Opportunity Portfolio
Westfield Capital Management, LLC
One Financial Center
Boston, MA 02111
HSBC Investor Value Portfolio
NWQ Investment Management Co., LLC
2049 Century Park East, 16th Floor
Los Angeles, CA 90067 | | SHAREHOLDER SERVICING AGENTS
For HSBC Bank USA, N.A. and
HSBC Securities (USA) Inc. Clients
HSBC Bank USA, N.A.
452 Fifth Avenue
New York, NY 10018
1-888-525-5757
For All Other Shareholders
HSBC Investor Funds
P.O. Box 182845
Columbus, OH 43218-2845
1-800-782-8183 TRANSFER AGENT AND SPONSOR
Citi Fund Services
3435 Stelzer Road
Columbus, OH 43219
DISTRIBUTOR
Foreside Distribution Services, L.P.
3435 Stelzer Road
Columbus, OH 43219 CUSTODIAN
HSBC Investor Core Plus Fixed Income Portfolio
HSBC Investor New York Tax-Free Bond Fund
HSBC Investor High Yield Fixed Income Portfolio
HSBC Investor Intermediate Duration Fixed Income
Portfolio
HSBC Investor Growth Portfolio
HSBC Investor Growth and Income Fund
HSBC Investor International Equity Portfolio
HSBC Investor Mid-Cap Fund
HSBC Investor Opportunity Portfolio
HSBC Investor Value Portfolio
The Northern Trust Company
50 South LaSalle Street
Chicago, IL 60603 INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
KPMG LLP
191 West Nationwide Blvd., Suite 500
Columbus, OH 43215
LEGAL COUNSEL
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006 |
The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.
— NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE
HSBC Investments (USA) Inc.
HSBC Investor Family of Funds
Semi-Annual Report
April 30, 2008
MONEY MARKET FUNDS:
HSBC Investor California Tax-Free Money Market Fund
HSBC Investor Money Market Fund
HSBC Investor New York Tax-Free Money Market Fund
HSBC Investor Tax-Free Money Market Fund
HSBC Investor U.S. Government Money Market Fund
HSBC Investor U.S. Treasury Money Market Fund
[This Page Intentionally Left Blank.]
Gross Domestic Product (“GDP”) is the measure of the market value of the goods and services produced by labor and property in the United States.
Lipper California Tax-Exempt Money Market Funds Average is an average of managed mutual funds that invests in high quality municipal obligations with dollar-weighted average maturities of less than 90 days. The mutual funds intend to keep constant net asset value which is exempt from taxation in California, with dollar-weighted average maturities of five- to ten-years.
Lipper Money Market Funds Average is an average of managed mutual funds that invest in high-quality financial instruments rated in the top two grades, with dollar-weighted average maturities of less than 90 days.
Lipper New York Tax-Exempt Money Market Funds Average is an average of managed mutual funds that invest in municipal obligations of New York with dollar-weighted average maturities of less than 90 days.
Lipper Tax-Exempt Money Market Funds Average is an average of managed mutual funds that invest in high quality municipal obligations with dollar-weighted average maturities of less than 90 days. Intended to keep constant net asset value.
Lipper U.S. Government Money Market Funds Average is an average of managed mutual funds that invest principally in financial instruments issued or guaranteed by the U.S. government, its agencies, or its instrumentalities with dollar-weighted average maturities of less than 90 days.
Lipper U.S. Treasury Money Market Funds Average is an average of managed mutual funds that invest principally in U.S. Treasury obligations with dollar-weighted average maturities of less than 90 days.
Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge.
Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Fund do not match those in the indexes and performance of the Fund will differ. Investors cannot invest directly in an index.
Dear Shareholder:
In a period of market volatility, mutual funds offer a “hedge” against extremes. Since the purpose of mutual funds is to provide a balance of investments and since fund advisers monitor performance of individual holdings in a portfolio, investors are generally protected against extremes. Over the long run, mutual funds have continued to be a wise investment.
The HSBC Investor Funds have performed in accordance with the swings of the equities and fixed income markets. Many of the HSBC Investor Funds have outperformed their industry benchmarks, most have equaled the benchmark and a few underperformed. Management and the board monitor performance continuously. While any Fund can underperform for a limited period of time, Funds that continue to underperform are put on a watch list, and if a downtrend continues, the board and management will re-evaluate the subadviser relationship.
With over 12 trillion dollars invested, mutual funds remain one of the best ways to sustain both value and growth of a portfolio. The diversity of the HSBC Fund Family provides a useful way to ride the wave of volatility. Please consult your financial adviser to determine the best mix of funds for your individual needs. We encourage you to be active in overseeing your own investments and welcome your comments about how we can provide the best service to you.
Thanks,
Larry M. Robbins, Chairman, HSBC Investor Funds
| |
1 | HSBC INVESTOR FAMILY OF FUNDS |
|
Commentary From the Investment Manager |
|
HSBC Investments (USA) Inc. |
Effective June 2, 2008, changed name to HSBC Global Asset Management (USA) Inc. |
Economic review
Several factors weighed on the U.S. economy during the six-month period between November 1, 2007 and April 30, 2008. The ongoing decline in the housing market depressed activity in industries related both directly and indirectly to the housing market, including homebuilders, home improvement retailers and furniture makers. The housing slump also made it more difficult for consumers to borrow against their home equity. That development weakened consumer spending, even as rising prices on food and energy and a flagging employment picture caused Americans to cut back. Consumer spending accounts for more than two-thirds of U.S. economic activity. Therefore, the consumer slowdown posed a significant threat to economic growth.
The housing slump also contributed to rising defaults on subprime mortgages. Higher subprime mortgage defaults led to losses for securities backed by these low-quality home loans, which had become widely dispersed throughout the global financial system in recent years. Losses in subprime mortgage-backed securities forced a number of financial firms to write-down the value of their holdings by billions of dollars. Moreover, market participants became concerned about the possible extent of problems related to weak mortgages. Lenders, concerned that they could not accurately gauge prospective borrowers’ financial health, became extremely cautious about extending credit, resulting in a severe credit crunch that depressed economic growth.
The Federal Reserve Board (the “Fed”) acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed reduced the federal funds rate, its target short-term interest rate, from 4.50% to 2.00% during the six month period ended April 30, 2008 in order to inject liquidity into the financial markets. It also orchestrated a buyout of troubled securities firm Bear Stearns, to prevent problems at the company from undermining the broad financial system. The Fed also sought to improve financial institutions’ access to credit by accepting a wider variety of assets as collateral.
Exports helped the U.S. economy continue to expand despite the difficult environment during the early months of 2008. A weakening dollar made U.S. companies’ products and services more competitive overseas, while increasing the value of revenues earned in foreign currencies. The U.S. Gross Domestic Product1 grew at annualized rates of 0.6% during the fourth quarter of 2007 and 0.9% during the first quarter of 2008.
The U.S. economy’s struggles led to signs of a global slowdown. Growth in Europe appeared to weaken, and evidence emerged that developing economies, which have generated powerful growth in recent years, were beginning to feel the effects of America’s problems as well. For example, China’s year-over-year exports grew 22.5% in December 2007, but just 6.5% in February 2008. Nevertheless, the global economy remained healthy and continued to expand more quickly than the U.S. economy during this period.
Market review
Investors during most of this six-month period responded to the uncertain economic environment by fleeing from the perceived risk of stocks and into the perceived safety of high-quality bonds. U.S. stock returns were exceptionally volatile during this time, as the lack of clarity about the direction of the economy; the subprime crisis and the credit crunch caused traders to react aggressively in response to emerging data. The U.S. market recovered somewhat between mid-March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. For the six month period ended April 30, 2008, the S&P 500 returned -9.63%, while the small-cap sector as represented by the Russell 2000® Index returned -12.92%.
Financial stocks suffered some of the U.S. market’s greatest declines, as shareholders sold financial stocks due to concerns about large write-downs and the potential for further damage from the subprime mortgage crisis. Stocks in the financial sector rebounded modestly toward the end of the period, as bargain-hunting investors began to believe that the market had priced in the worst of the subprime crisis.
Consumer discretionary stocks also performed poorly during this period, as investors worried that high food and energy prices and a weaker employment picture would reduce the money individuals had available to spend on non-essential items. Conversely, energy and materials stocks benefited from rising commodity prices, and posted some of the market’s strongest returns during this period.
Foreign stocks generally posted losses, with the MSCI EAFE Index of developed foreign stock markets returning -8.99% during the period under review. Investors sold foreign stocks due to a general aversion to risk and because of concerns about the repercussions from the turmoil in the credit markets. Emerging markets in Asia, which had performed exceptionally well in recent years, particularly struggled as investors sold assets they perceived to be risky. Developing markets in other parts of the world meanwhile held up relatively well, as they benefited from rising commodity prices.
Investors concerned about risk piled into bonds issued by the U.S. Treasury and foreign governments. Yields declined and prices rose on government bonds, causing the spread between the yield on government securities and corporate bonds to widen substantially. High-yield bonds—debt issued by companies with relatively weak finances—trailed other sectors of the fixed-income market, as investors favored the greater stability of higher-quality bonds. The Lehman Brothers U.S. Aggregate Index, which tracks the broad fixed-income market, returned 4.08% for the six months through April 30, 2008.
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1 | For additional information, please refer to the Glossary of Terms. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 2 |
|
Portfolio Reviews |
|
HSBC Investor California Tax-Free Money Market Fund |
(Class A Shares, C Shares, D Shares and Y Shares) |
by Jason Moshos
Portfolio Manager
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The Fund’s income may be subject to the federal alternative minimum tax and to certain state and local taxes. Regional funds may be subject to additional risk, since companies they invest in are located in one geographical location.
This six-month period was turbulent for municipal money market investors. Rising subprime mortgage defaults led to a credit and liquidity crisis. The financial system’s problems called into question the health of monoline bond insurers, which provide insurance to certain municipal securities. Yields in that sub-sector rose as a result.
The Federal Reserve Board (the “Fed”) attempted to address the problems in the financial markets and the economy by lowering its target short-term interest rate from 4.50% to 2.00%. The combination of the Fed’s easing policy and high demand for high-quality, liquid securities caused yields on Treasury bills to decline precipitously. Municipal securities typically pay significantly lower yields than Treasury issues. However, as yields on municipal securities rose and taxable government securities fell, tax-free securities’ yields exceeded the levels paid by Treasury issues with comparable maturities.
We positioned our portfolio with a weighted average maturity shorter than that of its benchmark. That conservative stance reduced the Fund’s yield only slightly relative to the index, due to the dislocation in the municipal money markets. We adopted other defensive strategies as well, maintaining extremely high credit quality and using a variety of techniques to provide credit support and enhance liquidity.*
Supply of tax-free money market securities varied considerably during this period, and at times very few municipal securities were available. We therefore invested a small amount of the Fund’s assets in taxable government issues during certain parts of the period. We kept the Fund’s taxable holdings well within the parameters set by the SEC and the Fund’s prospectus at all times.*
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* | Portfolio composition is subject to change. |
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Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)2 | | Expense
Ratio (%)3 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month‡ | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
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Class A Shares | | | | 3/2/07 | | | | | — | | | | | — | | | | | — | | | | | 0.74 | | | | | 1.60 | | | | | 0.80 | | | | | 0.80 | | |
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Class C Shares** | | | | 5/7/07 | | | | -0.35 | | | | | — | | | | | — | | | | | 1.74 | | | | | — | | | | | 1.40 | | | | | 1.40 | | |
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Class D Shares | | | | 6/17/02 | | | | | 1.08 | | | | | 2.70 | | | | | 1.87 | | | | | 1.71 | | | | | 1.75 | | | | | 0.65 | | | | | 0.65 | | |
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Class Y Shares | | | | 7/18/02 | | | | | 1.21 | | | | | 2.96 | | | | | 2.12 | | | | | 1.98 | | | | | 2.00 | | | | | 0.40 | | | | | 0.40 | | |
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Lipper California Tax-Exempt
Money Market Funds Average1 | | | | — | | | | | 1.12 | | | | | 2.71 | | | | | 1.87 | | | | | N/A | | | | | N/A | | | | | N/A | | | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
| |
** | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
† | Class A Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 3 days during the year ended October 31, 2007 and 148 days during the period ended April 30, 2008. Class C shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 165 days during the year ended October 31, 2007 and 180 days during the period ended April 30, 2008. |
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‡ | Aggregate total return. |
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1 | For additional information, please refer to the Glossary of Terms. |
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2 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
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3 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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3 | HSBC INVESTOR FAMILY OF FUNDS |
| |
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|
HSBC Investor Money Market Fund
(Class A Shares, B Shares, C Shares, D Shares, I Shares and Y Shares)
by John Chiodi
Senior Portfolio Manager | Moody’s and Standard & Poor’s
has assigned an “Aaa” and
“AAAm” rating to the HSBC
Investor Money Market Fund. 1 |
|
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The money markets experienced a turbulent environment during the six-month period under review, as rising defaults on subprime mortgages brought on a credit and liquidity crisis. The Federal Reserve Board (the “Fed”) attempted to address the financial system’s problems by lowering its target short-term interest rate from 4.50% to 2.00% between November 2007 and April 2008, causing yields on money market securities to decline.
We sought to protect shareholders’ principal in this uncertain environment. In particular, we held securities with relatively short maturities throughout the period—sacrificing a bit of yield in exchange for greater liquidity. In typical Fed easing cycles, we often extend the Fund’s maturity to lock in higher yields; but we felt that the turbulence in the money markets during this time called for a more cautious approach. We did seek strategic opportunities to capture higher yields on longer-term securities as the markets settled somewhat late in the period.*
We also looked to safeguard shareholder assets by holding relatively small positions in asset-backed commercial paper. Again, this strategy reduced the Fund’s yield, but provided greater security as the credit and liquidity crisis roiled the money markets.*
* Portfolio composition is subject to change.
| | | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)3 | | Expense
Ratio (%)4 | |
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|
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|
|
|
|
As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
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Class A Shares | | 11/13/98 | | 1.72 | | | 4.13 | | | 2.73 | | | 3.16 | | | 2.18 | | | 0.70 | | | 0.70 | | |
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Class B Shares** | | 4/4/01 | | -2.58 | | | -0.49 | | | 2.21 | | | 2.00 | | | 1.59 | | | 1.30 | | | 1.30 | | |
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Class C Shares*** | | 3/23/01 | | 0.42 | | | 2.51 | | | 2.21 | | | 1.93 | | | 1.59 | | | 1.30 | | | 1.30 | | |
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Class D Shares | | 4/1/99 | | 1.79 | | | 4.29 | | | 2.89 | | | 3.25 | | | 2.33 | | | 0.55 | | | 0.55 | | |
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Class I Shares | | 1/9/02 | | 1.98 | | | 4.68 | | | 3.27 | | | 2.95 | | | 2.69 | | | 0.20 | | | 0.20 | | |
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Class Y Shares | | 11/12/98 | | 1.92 | | | 4.55 | | | 3.14 | | | 3.57 | | | 2.58 | | | 0.30 | | | 0.30 | | |
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Lipper Money Market Funds Average2 | | — | | 1.63 | | | 3.94 | | | 2.56 | | | N/A | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, for Class I contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
| |
** | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
*** | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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† | Aggregate total return. |
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1 | The “Aaa” and “AAAm” money market fund rating is historical and reflects the superior quality of the Fund’s investments, sound liquidity management, and strong operations and trading support. Periodic reviews are conducted to ensure a secure operations environment. Moody’s and Standard & Poor’s ratings represent an opinion only, not a recommendation to buy or sell. |
| |
2 | For additional information, please refer to the Glossary of Terms. |
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3 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
| |
4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 4 |
HSBC Investor New York Tax-Free Money Market Fund
(Class A Shares, B Shares, C Shares, D Shares and Y Shares)
by Jason Moshos
Portfolio Manager
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The Fund’s income may be subject to the federal alternative minimum tax and to certain state and local taxes. Regional funds may be subject to additional risk, since companies they invest in are located in one geographical location.
This six-month period was turbulent for investors in the municipal money markets. Rising subprime mortgage defaults led to a credit and liquidity crisis. Meanwhile the financial system’s problems called into question the health of monoline bond insurers, which provide insurance to certain municipal securities. These developments drove up yields on New York tax-free money market securities during parts of this six-month period.
The Federal Reserve Board (the “Fed”) attempted to improve conditions in the financial markets by lowering its target short-term interest rate from 4.50% to 2.00%. The combination of the Fed’s easing policy and high demand for high-quality, liquid securities caused yields on Treasury bills to decline dramatically.
Municipal securities typically pay significantly lower yields than Treasury issues. However, tax-free securities’ yields exceeded the levels paid by Treasury issues with comparable maturities as municipal yields rose and taxable government yields fell.
We positioned the Fund’s portfolio with a weighted average maturity shorter than that of its benchmark. That conservative stance reduced the Fund’s yield only slightly relative to the index, due to the dislocation in the municipal money markets. We adopted other defensive strategies as well; such as maintaining extremely high credit, quality and using a variety of techniques to provide credit support and enhance liquidity.*
Supply of New York tax-free money market securities varied considerably during this period, and at times very few municipal securities were available. We therefore invested a small amount of the Fund’s assets in taxable government issues during certain parts of the period. We kept the Fund’s taxable holdings well within the parameters set by the SEC and the Fund’s prospectus at all times.
* Portfolio composition is subject to change.
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)2 | | Expense
Ratio (%)3 | |
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 5
Year | | 10
Year | | Since
Inception | | 7-Day
Average | | Gross | | | Net | |
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Class A Shares | | 11/17/94 | | 1.06 | | | 2.61 | | | 1.74 | | | 1.93 | | | 2.24 | | | 1.70 | | | 0.67 | | | 0.67 | | |
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Class B Shares** | | 4/29/98 | | -3.24 | | | -2.01 | | | 1.28 | | | — | | | 0.97 | | | 1.09 | | | 1.27 | | | 1.27 | | |
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Class C Shares*** | | 3/19/01 | | — | | | — | | | — | | | — | | | 0.77 | | | — | | | 1.27 | | | 1.27 | | |
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Class D Shares | | 4/1/99 | | 1.13 | | | 2.76 | | | 1.89 | | | — | | | 2.02 | | | 1.85 | | | 0.52 | | | 0.52 | | |
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Class Y Shares | | 7/1/96 | | 1.26 | | | 3.02 | | | 2.15 | | | 2.32 | | | 2.46 | | | 2.10 | | | 0.27 | | | 0.27 | | |
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Lipper New York Tax-Exempt Money Market Funds Average1 | | — | | 1.13 | | | 2.73 | | | 1.86 | | | 2.04 | | | N/A | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
| |
** | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
*** | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. Class C Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 81 days, 81 days, 145 days and 227 days during the year ended October 31, 2004, 2003, 2002, and 2001, respectively. |
| |
1 | For additional information, please refer to the Glossary of Terms. |
| |
2 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
| |
3 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
| |
5 | HSBC INVESTOR FAMILY OF FUNDS |
HSBC Investor Tax-Free Money Market Fund
(Class A Shares, D Shares, I Shares and Y Shares)
by Jason Moshos
Portfolio Manager
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The Fund’s income may be subject to the federal alternative minimum tax and to certain state and local taxes.
The rising subprime mortgage defaults led to a credit and liquidity crisis during the period under review. The credit and liquidity crisis in turn resulted in a turbulent environment for municipal money market investors. The financial system’s problems called into question the health of monoline bond insurers, which provide insurance to certain municipal issuers, and yields on insured securities rose as a result.
The Federal Reserve Board (the “Fed”) attempted to address the problems in the financial markets and the economy by lowering the federal funds rate from 4.50% to 2.00%. The Fed’s easing policy, combined with high demand for high-quality, liquid securities, caused yields on Treasury bills to decline precipitously.
Higher yields on municipal money market issues and lower yields on Treasury securities led to an environment in which tax-free securities offered yields that exceeded the levels paid by Treasury issues with comparable maturities.
We positioned our portfolio with a weighted average maturity shorter than that of its benchmark. That conservative stance did not reduce yield substantially, due to the dislocation in the municipal money markets. We maintained extremely high credit quality as a defensive measure, and used a variety of strategies to provide credit support and enhance liquidity.*
Supply of tax-free money market securities varied considerably during this period, and at times very little volume of municipal securities was available. As a result, at certain times we invested a small amount of the Fund’s assets in taxable government issues. We kept the Fund’s taxable holdings well within the parameters set by the SEC and the Fund’s prospectus at all times.*
* Portfolio composition is subject to change.
| | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | Average Annual
Total Return (%) | | Yield (%) 3 | | Expense
Ratio (%) 4 |
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|
As of April 30, 2008 | | Inception
Date | | Six
Month † | | 1
Year | | 3
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net |
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Class A Shares** | | 8/27/04 | | — | | | — | | | — | | | 0.69 | | | — | | | 0.94 | | | 0.94 | |
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Class D Shares | | 8/24/04 | | 1.16 | | | 2.74 | | | 2.63 | | | 2.39 | | | 2.03 | | | 0.79 | | | 0.79 | |
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Class I Shares*** | | 6/25/04 | | — | | | — | | | — | | | 0.26 | | | — | | | 0.44 | | | 0.44 | |
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Class Y Shares | | 6/8/04 | | 1.29 | | | 3.00 | | | 2.88 | | | 2.56 | | | 2.28 | | | 0.54 | | | 0.54 | |
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Lipper Tax-Exempt Money Market Funds Average 2 | | — | | 1.12 | | | 2.68 | | | 2.60 | | | N/A | | | N/A | | | N/A | | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
| |
** | Class A Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 24 days, 78 days and 5 days during the years ended October 31, 2007, 2006 and 2004, respectively. |
| |
*** | Class I Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 27 and 40 days during the years ended October 31, 2005 and 2004, respectively. |
| |
1 | Moody’s or Standard & Poor’s Ratings represent an opinion only, not a recommendation to buy or sell. |
| |
2 | For additional information, please refer to the Glossary of Terms. |
| |
3 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
| |
4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 6 |
| |
|
|
HSBC Investor U.S. Government Money Market Fund
(Class A Shares, B Shares, C Shares, D Shares, I Shares and Y Shares) | Moody’s and Standard & Poor’s
has assigned an “Aaa” and
“AAAm” rating to the HSBC
Investor U.S. Government
Money Market Fund. 1 |
by John Chiodi
Senior Portfolio Manager |
|
|
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Rising defaults on subprime mortgages brought on a credit and liquidity crisis during the six-month period under review, leading to a turbulent environment in the money markets. The Federal Reserve Board (the “Fed”) attempted to improve conditions in the financial markets and the economy by lowering its target short-term interest rate from 4.50% to 2.00% between November 2007 and April 2008. The Fed’s easing policy caused yields on money market securities to decline.
Problems in the financial system led to a widespread flight to quality. Investors shifted money out of assets they considered at greater risk from the credit and liquidity crisis, and into the markets’ most stable and liquid assets. That trend led to large inflows into this Fund, and pushed down yields on the types of securities in which the Fund invests.*
We felt it was vital to invest these new assets conservatively, in securities with relatively short maturities, in order to ensure liquidity in case of sudden outflows. The convergence of large inflows, low available yields and the need to invest conservatively caused us to invest a great deal of the Fund’s assets in securities paying low yields, which in turn reduced the yield the Fund was able to pay to shareholders.*
* Portfolio composition is subject to change.
| | | | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)3 | | Expense
Ratio (%)4 |
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2008 | | Inception
Date | | Six
Month † | | 1
Year | 5
Year | | 10
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net |
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Class A Shares | | 5/3/90 | | 1.46 | | | 3.77 | | 2.61 | | | 3.07 | | | 3.80 | | | 1.59 | | | 0.67 | | | 0.67 | |
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Class B Shares** | | 9/11/98 | | -2.75 | | | -0.39 | | 2.47 | | | — | | | 2.69 | | | 0.99 | | | 1.27 | | | 1.27 | |
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Class C Shares*** | | 11/20/06 | | 0.16 | | | 2.14 | | — | | | — | | | 3.44 | | | 0.99 | | | 1.27 | | | 1.27 | |
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Class D Shares | | 4/1/99 | | 1.54 | | | 3.92 | | 2.76 | | | — | | | 3.07 | | | 1.74 | | | 0.52 | | | 0.52 | |
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Class I Shares**** | | 12/24/03 | | 1.72 | | | 4.31 | | — | | | — | | | 4.30 | | | 2.09 | | | 0.17 | | | 0.17 | |
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Class Y Shares | | 7/1/96 | | 1.66 | | | 4.18 | | 3.02 | | | 3.47 | | | 3.73 | | | 1.99 | | | 0.27 | | | 0.27 | |
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Lipper U.S. Government Money Market Funds Average 2 | | — | | 1.48 | | | 3.75 | | 2.55 | | | 3.12 | | | N/A | | | N/A | | | N/A | | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, for Class I Shares contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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** | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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*** | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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**** | Class I Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 357 days, 136 days, 89 days and 10 days during the years ended October 31, 2007, 2006, 2005 and 2004, respectively. |
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1 | The “Aaa” and “AAAm” money market fund rating is historical and reflects the superior quality of the Fund’s investments, sound liquidity management, and strong operations and trading support. Periodic reviews are conducted to ensure a secure operations environment. Moody’s and Standard & Poor’s ratings represent an opinion only, not a recommendation to buy or sell. |
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2 | For additional information, please refer to the Glossary of Terms. |
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3 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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7 | HSBC INVESTOR FAMILY OF FUNDS |
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HSBC Investor U.S. Treasury Money Market Fund | Standard & Poor’s has assigned an
“AAA” rating to the HSBC Investor
U.S. Treasury Money Market Fund.1
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(Class A Shares, B Shares, D Shares, I Shares and Y Shares) |
by John Chiodi
Senior Portfolio Manager |
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The Fund’s income may be subject to the federal alternative minimum tax and to certain state and local taxes.
Rising subprime mortgage defaults led to a credit and liquidity crisis during the period under review. The credit and liquidity crisis led to a turbulent environment for money market investors. The Federal Reserve Board (the “Fed”) attempted to address the problems in the financial markets and the economy by lowering the federal funds rate from 4.50% to 2.00%, causing yields on money market securities to decline.
Investors worried about the financial system’s troubles fled to the market’s highest-quality and liquid securities. That development caused this Fund to experience very large inflows, while simultaneously depressing yields on the types of securities in which the Fund invests. *
We were concerned that the new flood of assets could quickly flow out of the Fund if conditions in the financial markets improved. We therefore invested these new assets in securities with relatively short maturities, so that the Fund would be able to support such outflows. The convergence of large amounts of new assets, extremely low available yields and the need to invest conservatively caused us to invest a great deal of the Fund’s assets in securities that paid low yields, which in turn reduced the yield the Fund was able to pay to shareholders.*
* Portfolio composition is subject to change.
| | | | | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | | | Average Annual
Total Return (%) | | Yield (%)3 | | Expense
Ratio (%)4 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
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Class A Shares | | 5/24/01 | | | 1.00 | | | 3.00 | | | 2.26 | | | 1.96 | | | 0.41 | | | 0.72 | | | 0.72 | | |
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Class B Shares** | | 8/13/04 | | | -3.28 | | | -1.60 | | | — | | | 2.09 | | | 0.26 | | | 1.32 | | | 1.32 | | |
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Class D Shares | | 5/14/01 | | | 1.08 | | | 3.16 | | | 2.41 | | | 2.12 | | | 0.56 | | | 0.57 | | | 0.57 | | |
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Class I Shares*** | | 12/30/03 | | | 1.27 | | | 3.55 | | | — | | | 2.85 | | | 0.92 | | | 0.22 | | | 0.20 | | |
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Class Y Shares | | 5/11/01 | | | 1.21 | | | 3.41 | | | 2.66 | | | 2.38 | | | 0.81 | | | 0.32 | | | 0.32 | | |
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Lipper U.S. Treasury Money Market Funds Average2 | | — | | | 1.15 | | | 3.22 | | | 2.38 | | | N/A | | | N/A | | | N/A | | | N/A | | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, for Class I contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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** | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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*** | Class I Shares were operational during a portion of the periods presented. Amounts reflect performance for the period of the time the class had operations, which was 280 and 13 days during the year ended October 31, 2005 and 2004, respectively. |
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1 | The “AAA” money market fund rating is historical and reflects the superior quality of the Fund’s investments, sound liquidity management, and strong operations and trading support. Periodic reviews are conducted to ensure a secure operations environment. Standard & Poor’s rating represent an opinion only, not a recommendation to buy or sell. |
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2 | For additional information, please refer to the Glossary of Terms. |
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3 | The 7-day yield quotation more closely reflects the current earnings of the Fund than the total return quotation. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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HSBC INVESTOR FAMILY OF FUNDS | 8 |
|
Portfolio Reviews |
|
Portfolio Composition* |
April 30, 2008
(Unaudited) |
| | | | |
HSBC Investor California Tax-Free Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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Variable Rate Notes | | 56.8 | % | |
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Commercial Paper | | 35.6 | % | |
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Municipal Bonds | | 2.8 | % | |
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Cash Equivalents | | 4.8 | % | |
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Total | | 100.0 | % | |
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HSBC Investor Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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Commercial Paper | | 45.0 | % | |
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Corporate Bonds | | 28.1 | % | |
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Certificates of Deposit | | 21.7 | % | |
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Time Deposits | | 5.2 | % | |
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Total | | 100.0 | % | |
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HSBC Investor N.Y. Tax-Free Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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Variable Rate Note | | 68.6 | % | |
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Tax Free Commercial Paper | | 30.1 | % | |
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Cash and Equivalents | | 1.3 | % | |
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Total | | 100.0 | % | |
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| | | | |
HSBC Investor Tax-Free Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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Variable Rate Notes | | 58.3 | % | |
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Commercial Paper | | 36.2 | % | |
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Municipal Bonds | | 5.1 | % | |
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Cash Equivalents | | 0.4 | % | |
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Total | | 100.0 | % | |
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| | | | |
HSBC Investor U.S. Government Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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U.S. Government Agencies | | 72.8 | % | |
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Repurchase Agreements | | 27.2 | % | |
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Total | | 100.0 | % | |
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HSBC Investor U.S. Treasury Money Market Fund | | | |
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Investment Allocation | | Percentage of Investments at Value | |
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U.S. Treasury Bills | | 100.0 | % | |
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Total | | 100.0 | % | |
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* Portfolio composition is subject to change.
| |
9 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Variable Rate Demand Notes—55.3% | | | | | | | |
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| | Principal
Amount($) | | Value($) | |
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California – 55.3% | | | | | | | |
ABAG Finance Authority for
Nonprofit Corps. Multi-family
Revenue, Series A, 2.50%, 12/15/32,
(Credit Support FNMA) (a) | | | 1,975,000 | | | 1,975,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.30%,
9/1/23, (LOC Bank of America
N.A.) (a) | | | 615,000 | | | 615,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
8/1/31, (LOC Allied Irish Bank
plc) (a) | | | 345,000 | | | 345,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
8/1/34, (LOC Allied Irish Bank
plc) (a) | | | 1,050,000 | | | 1,050,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, Series A,
2.35%, 4/1/35, (LOC Allied Irish
Bank plc) (a) | | | 1,570,000 | | | 1,570,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
7/1/35, (LOC Wells Fargo Bank N.A.,
U.S. Bank N.A.) (a) | | | 1,050,000 | | | 1,050,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
9/1/35, (LOC Bank of New York) (a) | | | 500,000 | | | 500,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
9/1/36, (LOC Allied Irish Bank
plc) (a) | | | 1,525,000 | | | 1,525,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 2.35%,
3/1/37, (LOC Bank of America
N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
Affordable Housing Agency Multi-
family Revenue, 2.24%, 9/15/33,
(Credit Support FNMA) (a) | | | 3,900,000 | | | 3,900,000 | |
Alameda Public Financing Authority
Multi-family Revenue, Series A,
2.35%, 5/15/35, (Credit Support
FNMA) (a) | | | 2,165,000 | | | 2,165,000 | |
Alameda-Contra Costa Schools
Financing Authority Certificates of
Participation, Series A, 2.18%, 7/1/16,
(LOC Bank of Nova Scotia) (a) | | | 1,395,000 | | | 1,395,000 | |
Alameda-Contra Costa Schools
Financing Authority Certificates of
Participation, Series G, 3.70%, 8/1/24,
(Credit Support AMBAC, SPA Credit
Local de France) (a) | | | 3,300,000 | | | 3,300,000 | |
Alameda-Contra Costa Schools
Financing Authority Certificates of
Participation, Series I, 3.70%, 8/1/29,
(Credit Support AMBAC, SPA KBC
Bank NV) (a) | | | 1,045,000 | | | 1,045,000 | |
Alvord Unified School District
Certificates of Participation, 2.60%,
6/1/37, (Credit Support FSA, SPA
Dexia Credit Local) (a) | | | 1,600,000 | | | 1,600,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
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| | Principal
Amount($) | | Value($) | |
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California, continued | | | | | | | |
California Health Facilities Financing
Authority Revenue, 2.60%, 9/1/15,
(Credit Support MBIA, SPA
California State Teacher’s
Retirement) (a) | | | 2,500,000 | | | 2,500,000 | |
California Health Facilities Financing
Authority Revenue, Series A, 6.00%,
10/1/19, (Credit Support AMBAC,
SPA JP Morgan Chase Bank) (a) | | | 1,500,000 | | | 1,500,000 | |
California Housing Finance Agency
Revenue, 4.15%, 8/1/23, AMT,
(Credit Support AMBAC, SPA Lloyds
TSB Bank plc) (a) | | | 1,000,000 | | | 1,000,000 | |
California Housing Finance Agency
Revenue, Series B, 2.85%, 8/1/33,
AMT, (Credit Support FSA, SPA
Lloyds TSB Bank plc) (a) | | | 3,000,000 | | | 3,000,000 | |
California Infrastructure & Economic
Development Bank Revenue,
2.35%, 9/1/37, (LOC Bank of New
York) (a) | | | 1,000,000 | | | 1,000,000 | |
California Infrastructure & Economic
Development Bank Revenue,
2.40%, 11/15/37, (LOC Bank of New
York, California State Teacher’s
Retirement) (a) | | | 1,000,000 | | | 1,000,000 | |
California Municipal Finance Authority
Revenue, 2.35%, 9/1/36, (LOC Allied
Irish Bank plc) (a) | | | 2,500,000 | | | 2,500,000 | |
California School Facilities Financing
Corp. Certificates of Participation,
Series C, 2.30%, 7/1/22, (LOC KBC
Bank NV) (a) | | | 570,000 | | | 570,000 | |
California School Facilities Financing
Corp. Certificates of Participation,
2.30%, 7/1/22, (LOC Allied Irish
Bank plc) (a) | | | 3,500,000 | | | 3,500,000 | |
California State Department of Water
Resources Power Supply Revenue,
2.23%, 5/1/11, (LOC Lloyds TSB
Bank plc) (a) | | | 900,000 | | | 900,000 | |
California State Department of Water
Resources Power Supply Revenue,
Subseries G-7, 2.45%, 5/1/17,
(Credit Support FSA, SPA Societe
Generale) (a) | | | 3,700,000 | | | 3,700,000 | |
California State Department of Water
Resources Power Supply Revenue,
Series C-10, 2.40%, 5/1/22, (LOC
Landesbank Hessen - Thuringen) (a) | | | 1,470,000 | | | 1,470,000 | |
California State Department of Water
Resources Power Supply Revenue,
Series B-2, 2.55%, 5/1/22, (LOC
BNP Paribas) (a) | | | 3,150,000 | | | 3,150,000 | |
California State Economic Recovery
GO, Series C-15, 2.35%, 7/1/23,
(Credit Support FSA State
Guaranteed, SPA Dexia Credit
Local) (a) | | | 1,875,000 | | | 1,875,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 10 |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
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| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
California, continued | | | | | | | |
California State GO, Series C-1, 2.25%,
5/1/33, (LOC Landesbank Hessen -
Thuringen, Bank of America N.A.,
Bank of Nova Scotia) (a) | | | 915,000 | | | 915,000 | |
California State GO, Series B-3, 2.58%,
5/1/33, (LOC BNP Paribas, Bank of
New York, California State Teacher’s
Retirement) (a) | | | 1,400,000 | | | 1,400,000 | |
California Statewide Communities
Development Authority Multi-family
Revenue, Series J, 2.24%, 9/1/29,
(LOC Wells Fargo Bank N.A.) (a) | | | 1,375,000 | | | 1,375,000 | |
California Statewide Communities
Development Authority Revenue,
2.35%, 5/1/35, (LOC Allied Irish
Bank plc) (a) | | | 900,000 | | | 900,000 | |
California Statewide Communities
Development Authority Revenue,
2.35%, 7/1/36, (LOC Allied Irish
Bank plc) (a) | | | 250,000 | | | 250,000 | |
California Statewide Communities
Development Authority Revenue,
2.30%, 2/1/37, (LOC U.S. Bank
N.A.) (a) | | | 1,700,000 | | | 1,700,000 | |
Concord California Multi-family
Mortgage Revenue, 2.70%, 7/15/18,
(Credit Support FNMA) (a) | | | 1,450,000 | | | 1,450,000 | |
Eastern Municipal Water District Water
& Sewer Certificates of Participation,
Series A, 4.10%, 7/1/23, (Credit
Support MBIA, SPA Lloyds TSB
Bank plc) (a) | | | 2,380,000 | | | 2,380,000 | |
Fremont California Certificates of
Participation, 3.70%, 8/1/32, (Credit
Support AMBAC, SPA Dexia Credit
Local) (a) | | | 6,600,000 | | | 6,600,000 | |
Grant Joint Union High School District
Certificates of Participation, 2.50%,
12/1/30, (Credit Support FSA, SPA
Dexia Credit Local) (a) | | | 1,900,000 | | | 1,900,000 | |
Irvine Public Facilities & Infrastructure
Authority Lease Revenue, 2.50%,
11/1/10, (LOC State Street B&T
Co.) (a) | | | 1,085,000 | | | 1,085,000 | |
Long Beach California Harbor Revenue,
Series A, 3.00%, 5/15/27, AMT,
(Credit Support MBIA, SPA Dexia
Credit Local) (a) | | | 600,000 | | | 600,000 | |
Los Angeles California Certificates of
Participation, Series A, 2.35%, 7/1/37,
(LOC Allied Irish Bank plc) (a) | | | 250,000 | | | 250,000 | |
Los Angeles Community Redevelopment
Agency Certificates of Participation,
2.40%, 12/1/14, (LOC Wells Fargo
Bank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Los Angeles Community Redevelopment
Agency Multi-family Housing
Revenue, 2.30%, 4/1/30, (Credit
Support FHLMC) (a) | | | 1,520,000 | | | 1,520,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
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| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
California, continued | | | | | | | |
Los Angeles County California Multi-
family Mortgage Revenue, 2.30%,
7/1/14, (Credit Support FHLMC) (a) | | | 1,000,000 | | | 1,000,000 | |
Los Angeles County Housing Authority
Multi-family Housing Revenue,
2.30%, 5/1/33, (Credit Support
FHLMC) (a) | | | 1,625,000 | | | 1,625,000 | |
Los Angeles Unified School District
Certificates of Participation, Series A,
2.33%, 12/1/17, (LOC Bank of New
York) (a) | | | 1,000,000 | | | 1,000,000 | |
M-S-R Public Power Agency San Juan
Project Revenue, 2.77%, 7/1/22,
(Credit Support MBIA, SPA Bank
One N.A.) (a) | | | 1,100,000 | | | 1,100,000 | |
Modesto California Multi-family
Housing Revenue, 2.33%, 5/15/31,
(Credit Support FNMA) (a) | | | 1,470,000 | | | 1,470,000 | |
Monterey Peninsula Water Management
District Certificates of Participation,
2.35%, 7/1/22, (LOC Bank of
America N.A.) (a) | | | 2,500,000 | | | 2,500,000 | |
Moorpark Unified School District
Certificates of Participation, Series A,
2.60%, 11/1/28, (Credit Support FSA,
SPA Wachovia Bank N.A.) (a) | | | 2,700,000 | | | 2,700,000 | |
Morgan Hill Redevelopment Agency
Tax Allocation, 2.30%, 9/1/33, (LOC
Scotiabank) (a) | | | 2,600,000 | | | 2,600,000 | |
Oceanside California Multi-family
Revenue, 2.39%, 8/1/17, (Credit
Support FHLMC) (a) | | | 1,680,000 | | | 1,680,000 | |
Palmdale School District Certificates
of Participation, 2.60%, 9/1/13,
(Credit Support FSA, SPA Wachovia
Bank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Perris California Unified High School
District Certificates of Participation,
2.60%, 9/1/18, (Credit Support FSA,
SPA Dexia Credit Local) (a) | | | 1,520,000 | | | 1,520,000 | |
Redondo Beach Public Financing
Authority Revenue, 2.28%, 9/1/22,
(LOC Allied Irish Bank plc) (a) | | | 485,000 | | | 485,000 | |
Redwood City California Certificates
of Participation, 2.35%, 7/1/21, (LOC
KBC Bank NV) (a) | | | 1,680,000 | | | 1,680,000 | |
Riverside County California Certificates
of Participation, 2.48%, 12/1/15,
(LOC State Street B&T Co.) (a) | | | 1,000,000 | | | 1,000,000 | |
Sacramento County California
Certificates of Participation,
2.15%, 6/1/20, (LOC Bayerische
Landesbank) (a) | | | 3,400,000 | | | 3,400,000 | |
San Bernardino County California
Certificates of Participation, 2.15%,
11/1/25, (LOC BNP Paribas) (a) | | | 3,250,000 | | | 3,250,000 | |
San Diego County California
Certificates of Participation, 2.30%,
11/1/30, (LOC Bank of America
N.A.) (a) | | | 515,000 | | | 515,000 | |
| | |
11 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
California, continued | | | | | | | |
San Jacinto Unified School District
Certificates of Participation, 2.60%,
10/1/10, (Credit Support FSA, SPA
First Union National Bank) (a) | | | 800,000 | | | 800,000 | |
San Jose-Santa Clara Clean Water
Financing Authority Sewer Revenue,
2.32%, 11/15/20, (Credit Support
FSA, SPA Depfa Bank plc) (a) | | | 1,300,000 | | | 1,300,000 | |
San Mateo County Joint Powers
Financing Authority Lease Revenue,
2.30%, 4/1/39, (LOC Depfa
Bank) (a) | | | 1,600,000 | | | 1,600,000 | |
Santa Ana Housing Authority Multi-
family Housing Revenue, 2.25%,
12/1/15, (Credit Support FNMA) (a) | | | 555,000 | | | 555,000 | |
Santa Ana Unified School District
Certificates of Participation, 2.45%,
7/1/15, (LOC BNP Paribas) (a) | | | 1,900,000 | | | 1,900,000 | |
Santa Clara County Financing Authority
Lease Revenue, 2.26%, 9/1/29, (LOC
U.S. Bank N.A.) (a) | | | 1,100,000 | | | 1,100,000 | |
Santa Clara Valley Transportation
Authority Sales Tax Revenue, Series
B, 3.25%, 6/1/26, (Credit Support
AMBAC, SPA Depfa Bank plc) (a) | | | 5,990,000 | | | 5,990,000 | |
Simi Valley Community Development
Agency Multi-family Revenue,
2.30%, 5/1/10 (a) | | | 1,000,000 | | | 1,000,000 | |
Triunfo County Sanitation District
Revenue, 2.58%, 6/1/19, (LOC BNP
Paribas) (a) | | | 1,500,000 | | | 1,500,000 | |
Vallejo Housing Authority Multi-family
Revenue, 2.70%, 5/15/22, (Credit
Support FNMA) (a) | | | 2,300,000 | | | 2,300,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $121,095,000) | | | | | | 121,095,000 | |
| | | | |
|
| |
| | | | | | | |
Tax-Free Notes And Commercial Paper—37.5% | | | | | | | |
|
|
|
|
|
|
|
|
California – 37.5% | | | | | | | |
California State University Institute,
Series A, 1.85%, 5/5/08, (LOC State
Street Bank, JP Morgan Chase) | | | 5,000,000 | | | 5,000,000 | |
Chino Basin Regional Financing
Authority, 2.62%, 5/5/08, (LOC
State Street B&T) | | | 3,860,000 | | | 3,860,000 | |
Imperial Irrigation District Water
System Project Revenue, Series A,
0.65%, 6/12/08, (LOC Citigroup) | | | 8,600,000 | | | 8,600,000 | |
Los Angeles County California GO,
4.50%, 6/30/08 | | | 3,000,000 | | | 3,004,174 | |
Los Angeles County Capital Asset
Leasing Corp., 1.95%, 6/4/08, (LOC
Westdeutsche Landesbank,
Bayerische Landesbank, Morgan
Guaranty Trust Co.) | | | 1,250,000 | | | 1,250,000 | |
Los Angeles Department of Airports,
Series A, 1.75%, 6/10/08, (LOC
Citibank, State Street) | | | 6,000,000 | | | 6,000,000 | |
| | | | | | | |
Tax-Free Notes And Commercial Paper, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
California, continued | | | | | | | |
Los Angeles Department of Airports,
Series A, 1.85%, 6/10/08, (LOC
Citibank, State Street) | | | 4,000,000 | | | 4,000,000 | |
Los Angeles Municipal Improvement
Corp., Series A-2, 1.75%, 6/10/08,
(LOC Bank of America) | | | 1,000,000 | | | 1,000,000 | |
Los Angeles Municipal Improvement
Corp., Series A-2, 0.85%, 8/5/08,
(LOC Bank of America) | | | 2,200,000 | | | 2,200,000 | |
Orange County Local Transportation
Authority, Series A, 1.00%, 8/5/08,
(LOC Dexia Credit Local, Bank of
America, BNP Paribas, JP Morgan) | | | 3,275,000 | | | 3,275,000 | |
Riverside County of California Teeter
Finance, Series B, 2.05%, 6/5/08,
(LOC Bank of Nova Scotia) | | | 7,022,000 | | | 7,022,000 | |
Riverside County Transportation
Commission, Series B, 1.75%, 5/7/08,
(LOC Bank of America) | | | 5,000,000 | | | 5,000,000 | |
San Diego Regional Airport Authority,
Series A, 1.80%, 6/3/08, (LOC
Lloyds Bank) | | | 10,000,000 | | | 10,000,000 | |
San Gabriel Valley Council of
Governments Alameda Corridor-East
Construction Project, 0.85%, 8/6/08,
(LOC Bayerische Landesbank) | | | 10,000,000 | | | 10,000,000 | |
San Joaquin County Transportation
Authority Sales Tax Revenue, 1.80%,
7/10/08, (LOC Citibank N.A.) | | | 3,000,000 | | | 3,000,000 | |
Turlock Irrigation District, Series A,
1.20%, 8/7/08, (LOC Citibank N.A.) | | | 1,000,000 | | | 1,000,000 | |
Ventura County California GO, 4.50%,
7/1/08 | | | 3,000,000 | | | 3,004,292 | |
Ventura County California Public
Financing Authority Lease Revenue
Notes, 2.10%, 6/9/08, (LOC Bank of
Nova Scotia) | | | 1,200,000 | | | 1,200,000 | |
Ventura County California Public
Financing Authority Lease Revenue
Notes, 2.50%, 6/11/08, (LOC Bank of
Nova Scotia) | | | 3,550,000 | | | 3,550,000 | |
| | | | |
|
| |
TOTAL TAX-FREE NOTES AND
COMMERCIAL PAPER
(COST $81,965,466) | | | | | | 81,965,466 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—4.8% | | | | | | | |
|
|
|
|
|
|
|
|
BlackRock Provident California
Institutional Shares, 2.27%, (b) | | | 10,300,000 | | | 10,300,000 | |
Northern Institutional Tax Exempt
Portfolio, 2.38%, (b) | | | 172,256 | | | 172,256 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $10,472,256) | | | | | | 10,472,256 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $213,532,722) — 97.6% | | | | | | 213,532,722 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 12 |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| |
| Percentages indicated are based on net assets of $218,741,673. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
AMBAC | — American Municipal Bond Assurance Corp. |
AMT | — Interest on security is subject to federal alternative minimum tax |
FHLMC | — Federal Home Loan Mortgage Corporation |
FNMA | — Federal National Mortgage Association |
FSA | — Financial Security Assurance |
GO | — General Obligation |
LOC | — Letter of Credit |
MBIA | — Municipal Bond Insurance Association |
PLC | — Public Limited Co. |
SPA | — Standby Purchase Agreement |
| | |
13 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
Corporate Obligations—28.0% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($)* | |
| |
| |
| |
Asset Backed – 5.6% | | | | | | | |
K2 (USA) LLC | | | | | | | |
2.52%, 6/20/08 (a)(b)(c)(d) | | | 50,000,000 | | | 49,850,500 | |
2.78%, 6/13/08 (a)(b)(c)(d) | | | 80,000,000 | | | 79,812,800 | |
Links Finance LLC, 2.50%, 6/20/08
(a)(b)(c)(d) | | | 100,000,000 | | | 99,699,000 | |
Stanfield Victoria Funding LLC | | | | | | | |
0.00%, 1/25/08 (a)(b)(c)(d)(e) | | | 21,000,000 | | | 17,658,900 | |
0.00%, 3/3/08 (a)(b)(c)(d)(e) | | | 40,000,000 | | | 33,636,000 | |
0.00%, 7/15/08 (a)(b)(c)(d)(e) | | | 42,000,000 | | | 35,317,800 | |
Whistlejacket Capital LLC | | | | | | | |
0.00%, 5/15/08 (a)(b)(c)(d)(f) | | | 50,000,000 | | | 47,230,000 | |
0.00%, 6/23/08 (a)(b)(c)(d)(f) | | | 75,000,000 | | | 70,845,000 | |
| | | | |
|
| |
| | | | | | 434,050,000 | |
| | | | |
|
| |
Banking – 15.5% | | | | | | | |
ANZ Banking Group, 3.35%, 5/1/09,
Callable 3/2/09 @ 100 (a)(b) | | | 75,000,000 | | | 75,000,000 | |
Bank of America Corp., 3.21%,
4/3/09 (b) | | | 80,000,000 | | | 80,000,000 | |
BNP Paribas, 4.03%, 2/13/09 (b) | | | 65,000,000 | | | 65,000,000 | |
Credit Agricole, 2.83%, 4/22/09 (a)(b) | | | 75,000,000 | | | 75,000,000 | |
Lloyds TSB Group plc, 2.97%, 9/5/08
(a)(b) | | | 200,000,000 | | | 199,980,288 | |
National Australia Bank, 3.22%, 4/6/09
(a)(b) | | | 60,000,000 | | | 60,000,000 | |
Rabobank Nederland NV, 3.05%,
11/14/08 (a)(b) | | | 190,000,000 | | | 190,000,000 | |
Royal Bank of Canada, 3.23%, 5/15/09
(a)(b) | | | 50,000,000 | | | 50,000,000 | |
Santander U.S. Debt S.A., 2.66%,
9/19/08 (a)(b) | | | 100,000,000 | | | 100,076,430 | |
Svenska Handelsbanken, 2.71%,
9/12/08 (a)(b) | | | 75,000,000 | | | 75,000,000 | |
Wells Fargo & Co., 2.80%, 5/15/09 (b) | | | 50,000,000 | | | 50,017,981 | |
Westpac Banking Corp. | | | | | | | |
4.64%, 2/6/09 (a)(b) | | | 100,000,000 | | | 99,969,835 | |
2.71%, 9/15/08 (a)(b) | | | 75,000,000 | | | 75,000,000 | |
| | | | |
|
| |
| | | | | | 1,195,044,534 | |
| | | | |
|
| |
Brokerage Services – 2.0% | | | | | | | |
Merrill Lynch & Co., 2.79%,
10/3/08 (b) | | | 150,000,000 | | | 150,000,000 | |
| | | | |
|
| |
| | | | | | 150,000,000 | |
| | | | |
|
| |
Finance – 4.9% | | | | | | | |
Citigroup Funding, Inc., Series D, 2.36%,
10/3/08 (b) | | | 50,000,000 | | | 49,821,154 | |
Citigroup, Inc., 2.94%, 1/30/09 (b) | | | 77,990,000 | | | 77,813,252 | |
JP Morgan Chase & Co., Series C, 2.72%,
4/3/09 (b) | | | 75,000,000 | | | 75,002,054 | |
JP Morgan Chase & Co., 2.73%, 9/11/08,
Callable 7/11/08 @ 100 (b) | | | 150,000,000 | | | 150,000,000 | |
Morgan Stanley, 2.98%, 9/26/08 (b) | | | 25,000,000 | | | 24,950,891 | |
| | | | |
|
| |
| | | | | | 377,587,351 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $2,180,622,180) | | | | | | 2,156,681,885 | |
| | | | |
|
| |
|
Commercial Paper And Notes—44.8% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($)* | |
| |
| |
| |
Asset Backed – 1.3% | | | | | | | |
Morrigan TRR Funding LLC, 3.25%,
5/15/08 (a)(g) | | | 100,000,000 | | | 99,875,555 | |
| | | | |
|
| |
Banking – 32.2% | | | | | | | |
Abbey National N.A. LLC, 2.51%,
6/20/08, (LOC Abbey National
plc) (g) | | | 125,000,000 | | | 124,572,917 | |
Allied Irish Banks N.A. | | | | | | | |
2.93%, 7/7/08, (LOC Allied Irish
Banks) (a)(g) | | | 50,000,000 | | | 49,733,861 | |
3.05%, 5/12/08, (LOC Allied Irish
Banks) (a)(g) | | | 100,000,000 | | | 99,908,944 | |
3.20%, 5/30/08, (LOC Allied Irish
Banks) (a)(g) | | | 100,000,000 | | | 99,748,667 | |
ANZ Banking Group, 2.81%,
8/4/08 (a) (g) | | | 75,000,000 | | | 74,455,730 | |
ANZ National (Int’l) Ltd. | | | | | | | |
2.73%, 6/12/08, (LOC ANZ National
Bank Ltd.) (a)(g) | | | 31,490,000 | | | 31,391,541 | |
2.99%, 6/3/08, (LOC ANZ National
Bank Ltd.) (a)(g) | | | 75,000,000 | | | 74,798,562 | |
Bank of America Corp. | | | | | | | |
2.56%, 5/19/08 (g) | | | 100,000,000 | | | 99,874,000 | |
2.91%, 7/18/08 (g) | | | 75,000,000 | | | 74,538,500 | |
Bank of Nova Scotia | | | | | | | |
2.56%, 6/26/08 (g) | | | 150,000,000 | | | 149,414,333 | |
2.73%, 5/1/08 (g) | | | 75,000,000 | | | 75,000,000 | |
Bank of Scotland plc | | | | | | | |
2.71%, 9/2/08 (g) | | | 50,000,000 | | | 49,545,333 | |
2.84%, 6/6/08 (g) | | | 50,000,000 | | | 49,860,500 | |
3.09%, 5/8/08 (g) | | | 50,000,000 | | | 49,970,639 | |
Depfa Bank plc, 2.86%, 6/18/08 (a)(g) | | | 78,500,000 | | | 78,205,887 | |
Dexia Delaware LLC | | | | | | | |
2.75%, 7/8/08, (LOC Dexia Credit
Local) (g) | | | 175,000,000 | | | 174,109,154 | |
2.91%, 5/27/08, (LOC Dexia Credit
Local) (g) | | | 175,000,000 | | | 174,639,611 | |
Lloyds TSB Bank plc, 2.73%,
5/28/08 (g) | | | 50,000,000 | | | 49,899,125 | |
National Australia Funding, 2.74%,
7/14/08, (LOC National Australia
Bank Ltd.) (a)(g) | | | 150,000,000 | | | 149,173,667 | |
Royal Bank of Scotland plc, 3.07%,
5/28/08 (g) | | | 50,000,000 | | | 49,887,313 | |
Scotiabank, Inc., 2.68%, 6/11/08, (LOC
Scotia Bank) (a)(g) | | | 50,000,000 | | | 49,850,237 | |
State Street Corp. | | | | | | | |
2.66%, 5/2/08 (g) | | | 100,000,000 | | | 99,992,722 | |
2.66%, 5/12/08 (g) | | | 100,000,000 | | | 99,919,944 | |
Swedbank Mortgage AB | | | | | | | |
3.00%, 5/23/08 (g) | | | 75,000,000 | | | 74,864,791 | |
3.17%, 6/23/08 (g) | | | 100,000,000 | | | 99,545,083 | |
UBS Finance Delaware LLC | | | | | | | |
2.93%, 8/5/08, (LOC UBS AG) (g) | | | 100,000,000 | | | 99,238,667 | |
3.18%, 6/30/08, (LOC UBS AG) (g) | | | 100,000,000 | | | 99,484,167 | |
Westpac Banking Corp., 3.05%,
5/7/08 (a)(g) | | | 75,000,000 | | | 74,962,625 | |
| | | | |
|
| |
| | | | | | 2,476,586,520 | |
| | | | |
|
| |
Diversified – 1.9% | | | | | | | |
General Electric Co., 2.59%,
8/7/08 (g) | | | 150,000,000 | | | 148,966,917 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 14 |
|
HSBC INVESTOR MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Commercial Paper And Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($)* | |
| |
| |
| |
Finance – 9.4% | | | | | | | |
American Express Credit Corp., 2.85%,
9/2/08 (g) | | | 75,000,000 | | | 74,274,083 | |
ASB Finance Ltd., 3.06%, 5/2/08
(a)(g) | | | 120,000,000 | | | 119,989,867 | |
BNP Paribas Finance, Inc., 2.67%,
5/30/08, (LOC BNP Paribas) (g) | | | 100,000,000 | | | 99,788,945 | |
CBA Delaware Finance | | | | | | | |
3.05%, 5/21/08, (LOC Commonwealth
Bank Australia) (g) | | | 100,000,000 | | | 99,833,889 | |
3.06%, 5/28/08 (g) | | | 100,000,000 | | | 99,775,000 | |
Morgan Stanley, 2.87%, 6/13/08 (g) | | | 56,000,000 | | | 55,811,373 | |
Santander Central Hispano Finance,
3.00%, 6/27/08 (g) | | | 75,000,000 | | | 74,652,062 | |
Sheffield Receivables Corp., 2.94%,
5/21/08 (a)(g) | | | 100,000,000 | | | 99,839,445 | |
| | | | |
|
| |
| | | | | | 723,964,664 | |
| | | | |
|
| |
TOTAL COMMERCIAL PAPER AND
NOTES (COST $3,449,393,656) | | | | | | 3,449,393,656 | |
| | | | |
|
| |
|
Certificates of Deposit—21.7% | | | | | | | |
|
Banking – 21.7% | | | | | | | |
ABN AMRO Bank NV | | | | | | | |
2.79%, 5/14/08 | | | 100,000,000 | | | 100,000,000 | |
2.83%, 9/5/08 | | | 75,000,000 | | | 75,000,000 | |
3.10%, 5/28/08 | | | 100,000,000 | | | 100,000,000 | |
American Express Centurion, 2.85%,
7/31/08 | | | 100,000,000 | | | 100,000,000 | |
Bank of Scotland plc, N.Y. | | | | | | | |
2.77%, 9/15/08 | | | 50,000,000 | | | 50,000,000 | |
4.61%, 5/6/09, Callable 5/6/08
@ 100 (b) | | | 125,000,000 | | | 125,000,000 | |
Barclays Bank plc, N.Y., 2.86%,
1/16/09 (b) | | | 100,000,000 | | | 100,000,000 | |
BNP Paribas, N.Y. | | | | | | | |
2.69%, 9/15/08 | | | 50,000,000 | | | 50,000,000 | |
3.09%, 5/28/08 | | | 100,000,000 | | | 100,000,000 | |
Calyon, N.Y., 2.35%, 5/19/08 (b) | | | 93,000,000 | | | 93,002,185 | |
Canadian Imperial Bank of Commerce,
N.Y., 3.14%, 5/27/08 (b) | | | 100,000,000 | | | 100,003,041 | |
Deutsche Bank, N.Y., 2.81%,
4/21/09 (b) | | | 100,000,000 | | | 100,000,000 | |
KBC Bank NV, N.Y., 2.85%, 6/2/08 | | | 100,000,000 | | | 100,000,000 | |
Norinchukin Bank, N.Y., 3.00%, 5/5/08 | | | 100,000,000 | | | 100,000,000 | |
Royal Bank of Canada, N.Y., 2.50%,
8/4/08 (b) | | | 100,000,000 | | | 100,000,000 | |
Royal Bank of Scotland plc, N.Y.,
2.70%, 9/8/08 | | | 100,000,000 | | | 100,000,000 | |
Toronto Dominion Bank, N.Y. | | | | | | | |
2.65%, 9/2/08 | | | 100,000,000 | | | 100,003,410 | |
2.84%, 8/6/08 | | | 75,000,000 | | | 75,000,000 | |
| | | | |
|
| |
TOTAL CERTIFICATES OF DEPOSIT
(COST $1,668,008,636) | | | | | | 1,668,008,636 | |
| | | | |
|
| |
|
Time Deposits—5.2% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($)* | |
| |
| |
| |
KBC Bank Nevada Brussels, 2.44%,
5/1/08 | | | 100,000,000 | | | 100,000,000 | |
Societe Generale Cayman, 2.50%,
5/1/08 | | | 295,136,000 | | | 295,136,000 | |
| | | | |
|
| |
TOTAL TIME DEPOSITS
(COST $395,136,000) | | | | | | 395,136,000 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $7,693,160,472) — 99.7% | | | | | | 7,669,220,177 | |
| | | | |
|
| |
|
|
Capital Support Agreement — |
|
See note 6 to the notes to financial statements |
| | | | | |
Issuer | | Expiration
Date | | Value($) |
| |
| |
|
HSBC Group Investment | | December 31, 2008 | | $ | 12,596,944 |
Businesses Limited | | | | | |
| |
* | Value represents amortized cost except for securities noted with footnote (d). |
| |
| Percentages indicated are based on net assets of $7,691,551,533. |
| |
(a) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(b) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(c) | Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 5.6% of total net assets. |
| |
(d) | Security is covered by a Capital Support Agreement with HSBC Group Investment Businesses Limited as discussed more fully in the notes to financial statements. The value presented reflects fair value, and in total, these securities are 5.6% of net assets at April 30, 2008. |
| |
(e) | The Fund did not receive any interest payments related to the Stanfield Victoria Funding LLC holdings scheduled to mature on 1/25/08 and 7/15/08. The Stanfield Victoria Funding LLC holdings scheduled to mature on 1/25/08 and 3/3/08 defaulted on the principal and interest payments on such dates. Consequently, the Fund stopped accruing prospective interest amounts effective January 28, 2008. |
| |
(f) | The Fund did not receive any interest payments related to the Whistlejacket Capital LLC holdings scheduled to mature on 5/15/08 and 6/23/08. Consequently the Fund stopped accruing prospective interest amounts effective March 27, 2008. |
| |
(g) | Discount note. Rate presented represents the effective yield at time of purchase. |
LLC — Limited Liability Co.
LOC — Letter of Credit
PLC — Public Limited Co.
| | |
15 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
Variable Rate Demand Notes—67.4% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York – 67.4% | | | | | | | |
Albany IDA Civic Facility Revenue,
2.45%, 5/1/27, (LOC KeyBank
N.A.) (a) | | | 1,660,000 | | | 1,660,000 | |
Babylon IDA Resource Recovery
Revenue, 2.50%, 1/1/19, (Credit
Support FSA, SPA J.P. Morgan Chase
Bank) (a) | | | 5,500,000 | | | 5,500,000 | |
Columbia County IDA Civic Facility
Revenue, Series A, 2.45%, 7/1/33,
(LOC KeyBank N.A.) (a) | | | 5,865,000 | | | 5,865,000 | |
Dutchess County IDA Civic Facility
Revenue, Series A, 2.30%, 7/1/38,
(LOC KeyBank N.A.) (a) | | | 7,000,000 | | | 7,000,000 | |
Erie County Water Authority Revenue,
Series B, 2.50%, 12/1/16, (Credit
Support AMBAC, SPA Depfa
Bank plc) (a) | | | 7,000,000 | | | 7,000,000 | |
Franklin County IDA Civic Facility
Revenue, 2.65%, 5/1/19, (LOC Fleet
National Bank) (a) | | | 1,090,000 | | | 1,090,000 | |
Guilderland IDA Revenue, Series A,
2.65%, 12/1/08, (LOC Fleet Bank of
New York) (a)(b) | | | 1,500,000 | | | 1,500,000 | |
Long Island Power Authority Electrical
Systems Revenue, Sub-series 7,
Sub-series 7B, 4.20%, 4/1/25,
(Credit Support MBIA, SPA Fortis
Bank) (a) | | | 1,200,000 | | | 1,200,000 | |
Long Island Power Authority Electrical
Systems Revenue, Series H, 2.60%,
12/1/29, (Credit Support FSA, SPA
Dexia Credit Local) (a) | | | 9,595,000 | | | 9,595,000 | |
Long Island Power Authority Electrical
Systems Revenue, 2.62%, 12/1/29,
(Credit Support FSA, SPA Dexia
Credit Local) (a) | | | 8,930,000 | | | 8,930,000 | |
Long Island Power Authority Electrical
Systems Revenue, 2.70%, 5/1/33,
(LOC Westdeutsche Landesbank) (a) | | | 3,050,000 | | | 3,050,000 | |
Metropolitan Transportation Authority
Revenue, Series D2, 2.30%, 11/1/32,
(Credit Support FSA, SPA Dexia
Credit Local) (a) | | | 8,710,000 | | | 8,710,000 | |
Metropolitan Transportation Authority
Revenue, Sub-series E1, 2.20%,
11/1/35, (LOC Fortis Bank) (a) | | | 21,090,000 | | | 21,090,000 | |
Metropolitan Transportation Authority
Revenue, Sub-series E2, 2.35%,
11/1/35, (LOC Fortis Bank
S.A./N.V.) (a) | | | 7,800,000 | | | 7,800,000 | |
Monroe County IDA Civic Facility
Revenue, 2.43%, 1/15/32, (LOC
J.P. Morgan Chase Bank) (a) | | | 4,000,000 | | | 4,000,000 | |
Monroe County IDA Civic Facility
Revenue, 2.50%, 4/1/35, (LOC
J.P. Morgan Chase Bank) (a) | | | 4,050,000 | | | 4,050,000 | |
Monroe County IDA Civic Facility
Revenue, 2.43%, 6/1/36, (LOC
J.P. Morgan Chase Bank) (a) | | | 4,000,000 | | | 4,000,000 | |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
Monroe County IDA Civic Facility
Revenue, 2.65%, 2/1/38, (LOC
J.P. Morgan Chase Bank) (a) | | | 2,000,000 | | | 2,000,000 | |
Monroe County IDA Civic Facility
Revenue, 2.50%, 4/1/38, (LOC
J.P. Morgan Chase Bank) (a) | | | 2,200,000 | | | 2,200,000 | |
Nassau County GO, Series A, 2.45%,
12/1/23, (LOC Bank of America
N.A.) (a) | | | 15,000,000 | | | 15,000,000 | |
Nassau County Interim Finance
Authority Revenue, Series A, 2.45%,
11/15/22, (Credit Support FSA,
SPA Dexia Credit Local) (a) | | | 1,480,000 | | | 1,480,000 | |
Nassau County Interim Finance
Authority Revenue, 2.60%,
11/15/22, (Credit Support FSA,
SPA BNP Paribas) (a) | | | 13,090,000 | | | 13,090,000 | |
Nassau Health Care Corp. Revenue,
Sub-series 2004-C2, 2.35%, 8/1/29,
(Credit Support FSA County
Guaranteed, SPA Dexia Credit
Local) (a) | | | 2,800,000 | | | 2,800,000 | |
New York City Capital Resources Corp.
Revenue, Series B1, 2.39%, 7/1/37,
(LOC Bank of America N.A.) (a) | | | 5,920,000 | | | 5,920,000 | |
New York City GO, Series F2, 2.35%,
2/15/12, (LOC Depfa Bank plc) (a) | | | 10,000,000 | | | 10,000,000 | |
New York City GO, Series H, Sub-series
H6, 3.50%, 8/1/12, (Credit Support
MBIA, SPA Dexia Credit Local
France) (a) | | | 300,000 | | | 300,000 | |
New York City GO, 2.60%, 2/15/16,
(LOC Bayerische Landesbank) (a) | | | 4,580,000 | | | 4,580,000 | |
New York City GO, Series J, Sub-series
J2, 2.90%, 2/15/16, (LOC
Westdeutsche Landesbank) (a) | | | 4,800,000 | | | 4,800,000 | |
New York City GO, Sub-series A7,
2.35%, 8/1/20, (LOC Morgan
Guaranty Trust) (a) | | | 1,000,000 | | | 1,000,000 | |
New York City GO, Sub-series A7,
2.35%, 8/1/21, (LOC Morgan
Guaranty Trust) (a) | | | 1,050,000 | | | 1,050,000 | |
New York City GO, Series B, Sub-series
B5, 2.50%, 8/15/22, (Credit Support
MBIA) (a) | | | 4,500,000 | | | 4,500,000 | |
New York City GO, Series B2,
Sub-series B9, 3.00%, 8/15/23,
(LOC J.P. Morgan Chase Bank) (a) | | | 6,700,000 | | | 6,700,000 | |
New York City GO, Series B, Sub-series
B8, 2.60%, 8/15/24, (LOC Bayerische
Landesbank) (a) | | | 7,370,000 | | | 7,370,000 | |
New York City GO, 2.20%, 9/1/35,
(LOC Royal Bank of Scotland) (a) | | | 11,475,000 | | | 11,475,000 | |
New York City Housing Development
Corp. Multi-family Housing Revenue,
Series A, 2.35%, 4/1/31, (Credit
Support FHLMC) (a) | | | 1,135,000 | | | 1,135,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 16 |
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 2.40%, 6/15/32, (Credit
Support FNMA) (a) | | | 5,680,000 | | | 5,680,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 2.50%, 12/1/36, (LOC
Landesbank Hessen) (a) | | | 22,935,000 | | | 22,935,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 2.40%, 6/1/39, (LOC
Landesbank Hessen) (a) | | | 18,195,000 | | | 18,195,000 | |
New York City IDA Civic Facility
Revenue, 3.10%, 5/1/21, (LOC
J.P. Morgan Chase Bank) (a) | | | 2,700,000 | | | 2,700,000 | |
New York City IDA Civic Facility
Revenue, 2.46%, 12/30/21, (LOC
Allied Irish Bank plc) (a) | | | 1,400,000 | | | 1,400,000 | |
New York City IDA Civic Facility
Revenue, 2.45%, 7/1/30, (LOC
KeyBank N.A.) (a) | | | 1,385,000 | | | 1,385,000 | |
New York City IDA Civic Facility
Revenue, 2.46%, 9/30/31, (LOC
Allied Irish Bank plc) (a) | | | 1,450,000 | | | 1,450,000 | |
New York City IDA Civic Facility
Revenue, 2.42%, 4/1/32, (LOC
Allied Irish Bank plc) (a) | | | 3,000,000 | | | 3,000,000 | |
New York City IDA Civic Facility
Revenue, 2.37%, 11/1/32, (LOC
Wachovia Bank) (a) | | | 7,300,000 | | | 7,300,000 | |
New York City IDA Civic Facility
Revenue, 2.46%, 12/1/34, (LOC
Allied Irish Bank plc) (a) | | | 6,200,000 | | | 6,200,000 | |
New York City IDA Civic Facility
Revenue, 2.46%, 12/1/34, (LOC
Allied Irish Bank plc) (a) | | | 4,610,000 | | | 4,610,000 | |
New York City IDA Civic Facility
Revenue, 2.37%, 6/1/36, (LOC
Wachovia Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City IDA Civic Facility
Revenue, 2.43%, 12/1/36, (LOC
J.P. Morgan Chase Bank) (a) | | | 4,515,000 | | | 4,515,000 | |
New York City IDA Civic Facility
Revenue, 2.50%, 11/1/39, (LOC
Bank of America, Citibank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City IDA Special Facility
Revenue, Series B, 2.39%, 5/1/33,
(LOC Bank of America N.A.) (a) | | | 2,960,000 | | | 2,960,000 | |
New York City Municipal Water Finance
Authority Revenue, 2.30%, 6/15/33,
(SPA J.P. Morgan Chase Bank) (a) | | | 14,375,000 | | | 14,375,000 | |
New York City Municipal Water Finance
Authority Water & Sewer System
Revenue, Sub-series B4, 2.31%,
6/15/23, (SPA BNP Paribas) (a) | | | 2,000,000 | | | 2,000,000 | |
New York City Municipal Water Finance
Authority Water & Sewer System
Revenue, Sub-series B2, 2.50%,
6/15/24, (SPA Lloyds TSB Bank
plc) (a) | | | 1,000,000 | | | 1,000,000 | |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York City Transitional Finance
Authority Revenue, Series 3,
Sub-series 3G, 2.40%, 11/1/22,
(SPA Bank of New York) (a) | | | 2,185,000 | | | 2,185,000 | |
New York City Transitional Finance
Authority Revenue, Series 3,
Sub-series 3D, 2.43%, 11/1/22,
(SPA Dexia Credit Local) (a) | | | 11,375,000 | | | 11,375,000 | |
New York City Transitional Finance
Authority Revenue, Series 3,
Sub-series 3C, 2.43%, 11/1/22,
(SPA Dexia Credit Local) (a) | | | 6,145,000 | | | 6,145,000 | |
New York City Transitional Finance
Authority Revenue, Series 1,
Sub-series 1A, 2.60%, 11/1/22,
(Liquidity Facility Landesbank
Hessen - Thuringen) (a) | | | 1,800,000 | | | 1,800,000 | |
New York City Transitional Finance
Authority Revenue, Series A2, 2.60%,
11/15/22, (SPA J.P. Morgan Chase
Bank) (a) | | | 4,300,000 | | | 4,300,000 | |
New York City Transitional Finance
Authority Revenue, Series A2,
2.60%, 11/15/27, (SPA Bank of
Nova Scotia) (a) | | | 6,100,000 | | | 6,100,000 | |
New York City Transitional Finance
Authority Revenue, Series A1, 2.65%,
11/15/28, (SPA Westlandesbank
AG) (a) | | | 2,000,000 | | | 2,000,000 | |
New York City Transitional Finance
Authority Revenue, Series A,
2.65%, 2/15/30, (SPA J.P. Morgan
Chase Bank) (a) | | | 6,000,000 | | | 6,000,000 | |
New York City Trust for Cultural
Resources Revenue, Series A, 3.50%,
4/1/21, (Credit Support MBIA,
SPA Landesbank Hessen -
Thuringen) (a) | | | 8,120,000 | | | 8,120,000 | |
New York City Trust for Cultural
Resources Revenue, 2.45%, 7/1/36,
(LOC Wachovia Bank N.A.) (a) | | | 2,695,000 | | | 2,695,000 | |
New York Local Government Assistance
Corp., 2.40%, 4/1/18, (Credit Support
FSA, SPA KBC Bank) (a) | | | 2,000,000 | | | 2,000,000 | |
New York Local Government Assistance
Corp., 2.35%, 4/1/25, (LOC Societe
Generale) (a) | | | 11,850,000 | | | 11,850,000 | |
New York Local Government Assistance
Corp., 2.40%, 4/1/25, (LOC Bank of
Nova Scotia) (a) | | | 20,200,000 | | | 20,200,000 | |
New York State Dormitory Authority
Revenue, 2.70%, 2/15/21, (Credit
Support FSA, SPA Dexia Credit
Local) (a) | | | 7,900,000 | | | 7,900,000 | |
New York State Dormitory Authority
Revenue, 2.45%, 7/1/25, (LOC Fleet
National Bank) (a) | | | 3,000,000 | | | 3,000,000 | |
New York State Dormitory Authority
Revenue, 2.20%, 7/1/30, (SPA
J.P. Morgan Chase Bank) (a) | | | 7,900,000 | | | 7,900,000 | |
| | |
17 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
| | | | | | | |
New York, continued | | | | | | | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series B1, 3.37%, 7/1/24, (Credit
Support MBIA, SPA Wachovia
Bank N.A.) (a) | | | 1,700,000 | | | 1,700,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series A1, 3.50%, 7/1/27, (Credit
Support MBIA, SPA Wachovia
Bank N.A.) (a) | | | 1,250,000 | | | 1,250,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series C, 2.50%, 7/1/37, (SPA Bank
of America N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series B, 2.45%, 5/15/39, (LOC
Bayerische Landesbank) (a) | | | 3,000,000 | | | 3,000,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, Sub-series A1, 2.47%,
5/1/39, (LOC Wachovia Bank
N.A.) (a) | | | 2,500,000 | | | 2,500,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, 2.75%, 11/1/39, AMT,
(LOC Citibank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
New York State GO, Series G, 3.20%,
11/30/18, (LOC Westdeutsche
Landesbank) (a) | | | 16,380,000 | | | 16,380,000 | |
New York State GO, 2.70%, 8/1/19,
(LOC Bayerische Helaba) (a) | | | 2,740,000 | | | 2,740,000 | |
New York State GO, 3.20%, 3/13/20,
(LOC Dexia Credit Local) (a) | | | 13,000,000 | | | 13,000,000 | |
New York State GO, 2.80%, 3/15/30,
(LOC Dexia Credit Local) (a) | | | 7,800,000 | | | 7,800,000 | |
New York State Housing Finance
Agency Revenue, 3.60%, 5/15/31,
AMT, (Credit Support FNMA) (a) | | | 1,700,000 | | | 1,700,000 | |
New York State Housing Finance
Agency Revenue, Series A, 2.60%,
5/15/32, AMT, (Credit Support
FNMA) (a) | | | 1,600,000 | | | 1,600,000 | |
New York State Housing Finance
Agency Revenue, 2.45%, 5/15/33,
AMT, (Credit Support FNMA) (a) | | | 1,100,000 | | | 1,100,000 | |
New York State Housing Finance
Agency Revenue, 2.50%, 5/15/34,
(Credit Support FNMA) (a) | | | 19,700,000 | | | 19,700,000 | |
New York State Housing Finance
Agency Revenue, Series A, 3.35%,
5/15/34, (Credit Support FNMA) (a) | | | 1,400,000 | | | 1,400,000 | |
New York State Housing Finance
Agency Revenue, Series A, 2.50%,
5/1/35, (Credit Support FHLMC) (a) | | | 9,365,000 | | | 9,365,000 | |
New York State Housing Finance
Agency Revenue, Series A, 2.50%,
11/1/36, (LOC Bank of New
York) (a) | | | 7,700,000 | | | 7,700,000 | |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York State Housing Finance
Agency Revenue, Series A, 2.60%,
11/1/36, (LOC Landesbank Hessen -
Thuringen) (a) | | | 16,255,000 | | | 16,255,000 | |
New York State Housing Finance
Agency Revenue, 2.50%, 11/15/36,
(Credit Support FNMA) (a) | | | 16,850,000 | | | 16,850,000 | |
New York State Housing Finance
Agency Revenue, Series A, 2.43%,
11/1/37, (LOC Landesbank Hessen -
Thuringen) (a) | | | 3,200,000 | | | 3,200,000 | |
New York State Housing Finance
Agency Revenue, 2.62%, 11/15/37,
(Credit Support FNMA) (a) | | | 15,000,000 | | | 15,000,000 | |
New York State Housing Finance
Agency Revenue, Series A, 2.45%,
11/1/39, AMT, (LOC Citibank
N.A.) (a) | | | 9,700,000 | | | 9,700,000 | |
New York State Housing Finance
Agency Revenue, 2.55%, 11/1/41,
AMT, (LOC Bank of New York) (a) | | | 10,000,000 | | | 10,000,000 | |
New York State Local Government
Assistance Corp. Revenue, Series A,
2.65%, 4/1/22, (Credit Support GO of
Corp., LOC Bayerische Landesbank,
Westdeutsche Landesbank) (a) | | | 2,500,000 | | | 2,500,000 | |
New York State Local Government
Assistance Corp. Revenue, Series 4V,
2.70%, 4/1/22, (Credit Support FSA,
SPA Westlandesbank AG) (a) | | | 8,300,000 | | | 8,300,000 | |
New York State Local Government
Assistance Corp. Revenue, Series C,
2.40%, 4/1/25, (LOC Landesbank
Hessen - Thuringen) (a) | | | 1,239,000 | | | 1,239,000 | |
New York State Power Authority,
Finance & Administration, 2.10%,
3/1/20, (Liquidity Facility Bank of
Novia Scotia) (a) | | | 11,000,000 | | | 11,000,000 | |
Newburgh IDA Civic Facility Revenue,
2.45%, 10/1/30, (LOC KeyBank
N.A.) (a) | | | 3,500,000 | | | 3,500,000 | |
Oneida County IDA Civic Facility
Revenue, 2.42%, 11/1/37, (LOC
KeyBank N.A.) (a) | | | 7,420,000 | | | 7,420,000 | |
Oneida County IDA Civic Facility
Revenue, 2.42%, 11/1/37, (LOC
KeyBank N.A.) (a) | | | 3,000,000 | | | 3,000,000 | |
Oneida County IDA Revenue, 2.72%,
9/15/32, (Credit Support MBIA, SPA
Bank of New York) (a) | | | 2,875,000 | | | 2,875,000 | |
Onondaga County IDA Civic Facility
Revenue, Series A, 2.58%, 1/1/23,
(LOC KeyBank N.A.) (a) | | | 7,510,000 | | | 7,510,000 | |
Onondaga County IDA Civic Facility
Revenue, Series A, 2.58%, 7/1/33,
(LOC KeyBank N.A.) (a) | | | 4,000,000 | | | 4,000,000 | |
Orange County IDA Civic Facility
Revenue, 2.45%, 7/1/32, (LOC
KeyBank N.A.) (a) | | | 4,000,000 | | | 4,000,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 18 |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
Otsego County IDA Civic Facility
Revenue, Series A, 2.44%, 5/1/27,
(LOC KeyBank N.A.) (a) | | | 4,375,000 | | | 4,375,000 | |
Saratoga County IDA Civic Facility
Revenue, Series A, 2.45%, 12/1/32,
(LOC KeyBank N.A.) (a) | | | 3,945,000 | | | 3,945,000 | |
Schenectady County IDA Civic Facility
Revenue, Series B, 2.45%, 8/1/33,
(LOC KeyBank N.A.) (a) | | | 2,205,000 | | | 2,205,000 | |
Schenectady County IDA Revenue,
Series A, 2.65%, 6/1/09, (LOC Fleet
Bank of New York) (a) | | | 1,000,000 | | | 1,000,000 | |
St. Lawrence County IDA, 2.45%,
12/1/31, (LOC KeyBank N.A.) (a) | | | 3,800,000 | | | 3,800,000 | |
Suffolk County Water Authority,
2.40%, 12/1/09, (SPA Bank of Nova
Scotia) (a) | | | 1,200,000 | | | 1,200,000 | |
Syracuse IDA Civic Facility Revenue,
Series A, 2.53%, 1/1/23, (LOC Fleet
National Bank) (a) | | | 10,950,000 | | | 10,950,000 | |
Syracuse IDA Civic Facility Revenue,
Series A, 2.58%, 1/1/23, (LOC
KeyBank N.A.) (a) | | | 9,000,000 | | | 9,000,000 | |
Syracuse IDA Civic Facility Revenue,
Series B, 2.58%, 1/1/23, (LOC
KeyBank N.A.) (a) | | | 3,925,000 | | | 3,925,000 | |
Syracuse IDA Civic Facility Revenue,
Series A, 2.58%, 1/1/33, (LOC
KeyBank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
Triborough Bridge & Tunnel Authority
Revenue, Sub-series CD, 2.43%,
1/1/19, (Credit Support FSA, SPA
Lloyds TSB Bank plc) (a) | | | 15,000,000 | | | 15,000,000 | |
Triborough Bridge & Tunnel Authority
Revenue, Series C, 6.00%, 1/1/32,
(Credit Support AMBAC, SPA
Bayerische Landesbank) (a) | | | 27,945,000 | | | 27,945,000 | |
Westchester County IDA Civic Facility
Revenue, 2.45%, 7/1/30, (LOC
KeyBank N.A.) (a) | | | 2,745,000 | | | 2,745,000 | |
Westchester County IDA Civic Facility
Revenue, 2.46%, 12/1/32, (LOC
Allied Irish Bank plc) (a) | | | 5,980,000 | | | 5,980,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $727,069,000) | | | | | | 727,069,000 | |
| | | | |
|
| |
|
Tax-Free Notes And Commercial Paper—29.6% |
|
| | | | | | | |
New York – 29.6% | | | | | | | |
Long Island Power Authority, Series
CP1, 1.55%, 9/4/08, (LOC
J.P. Morgan Chase Bank) | | | 16,800,000 | | | 16,800,000 | |
Long Island Power Authority Electrical
Systems Revenue, 5.13%, 12/1/16,
(Credit Support FSA), Pre-refunded
6/1/08 @ 101 | | | 20,000,000 | | | 20,231,517 | |
Long Island Power Authority Electrical
Systems Revenue, 5.13%, 12/1/22,
(Credit Support FSA), Pre-refunded
6/1/08 @ 101 | | | 2,420,000 | | | 2,451,599 | |
|
Tax-Free Notes And Commercial Paper, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York, continued | | | | | | | |
Long Island Power Authority Electrical
Systems Revenue, Series A, 5.75%,
12/1/24, Pre-refunded 6/1/08 @ 101 | | | 6,000,000 | | | 6,071,964 | |
Long Island Power Authority Electrical
Systems Revenue, Series A, 5.25%,
12/1/26, Pre-refunded 6/1/08 @ 101 | | | 13,580,000 | | | 13,764,601 | |
Metropolitan Transportation Authority,
Series 1B, Sub-series B, 2.35%,
6/9/08, (LOC ABN Amro
Bank N.V.) | | | 16,500,000 | | | 16,500,000 | |
Metropolitan Transportation Authority,
Series 1C, Sub-series C, 2.10%,
6/10/08, (LOC ABN Amro
Bank N.V.) | | | 20,000,000 | | | 20,000,000 | |
Metropolitan Transportation Authority,
Series 1B, Sub-series B, 1.95%,
7/10/08, (LOC ABN Amro
Bank N.V.) | | | 25,000,000 | | | 25,000,000 | |
Metropolitan Transportation Authority,
Series 1C, Sub-series C, 0.95%,
8/6/08, (LOC ABN Amro
Bank N.V.) | | | 25,000,000 | | | 25,000,000 | |
Metropolitan Transportation Authority,
Series 1B, Sub-series B, 1.25%,
8/8/08, (LOC ABN Amro
Bank N.V.) | | | 13,000,000 | | | 13,000,000 | |
Nassau County Sewer & Storm Water
Finance Authority, 1.50%, 5/14/08,
(LOC Bank of America) | | | 12,320,000 | | | 12,320,000 | |
Nassau County Sewer & Storm Water
Finance Authority, 2.00%, 5/20/08,
(LOC Bank of America) | | | 40,675,000 | | | 40,675,000 | |
New York City Municipal Water
Regional Authority, Series 5A,
1.95%, 5/1/08, (LOC Landesbank
Hessen-Thuringen, Bayerische
Landesbank, Westdeutsche
Landesbank) | | | 21,700,000 | | | 21,700,000 | |
New York State GO, Series 98A, 1.55%,
5/2/08, (LOC Morgan Guaranty) | | | 14,600,000 | | | 14,600,000 | |
New York State GO, Series 97A,
1.38%, 8/7/08, (LOC Bayerische
Landesbank, Helaba) | | | 21,350,000 | | | 21,350,000 | |
Suffolk County, GO, 3.50%, 8/14/08 | | | 50,000,000 | | | 50,098,906 | |
| | | | |
|
| |
TOTAL TAX-FREE NOTES AND
COMMERCIAL PAPER
(COST $319,563,587) | | | | | | 319,563,587 | |
| | | | |
|
| |
|
Investment Company – 1.3% |
|
| | | | | | | |
BlackRock Liquidity New York Money
Fund Portfolio Institutional Shares,
2.27% (c) | | | 14,228,105 | | | 14,228,105 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $14,228,105) | | | | | | 14,228,105 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $1,060,860,692) — 98.3% | | | | | | 1,060,860,692 | |
| | | | |
|
| |
| | |
19 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| |
| Percentages indicated are based on net assets of $1,079,705,529. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
AMBAC | — American Municipal Bond Assurance Corp. |
AMT | — Interest on security is subject to federal alternative minimum tax |
FHLMC | — Federal Home Loan Mortgage Corporation |
FNMA | — Federal National Mortgage Association |
FSA | — Financial Security Assurance |
GO | — General Obligation |
IDA | — Industrial Development Agency |
LOC | — Letter of Credit |
MBIA | — Municipal Bond Insurance Association |
PLC | — Public Limited Co. |
SPA | — Standby Purchase Agreement |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 20 |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Variable Rate Demand Notes—61.9% | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Alabama – 1.4% | | | | | | | |
Birmingham Alabama Medical Clinic
Board Revenue, 2.70%, 12/1/26,
(LOC Suntrust Bank) (a) | | | 2,000,000 | | | 2,000,000 | |
Arizona – 1.4% | | | | | | | |
Yavapai County Arizona Highway
Construction Advancement Revenue,
2.40%, 7/1/18, (LOC Landesbank
Hessen - Thuringen) (a) | | | 1,000,000 | | | 1,000,000 | |
Yuma Arizona Industrial Development
Authority Multi-family Revenue,
2.44%, 4/15/33, (Credit Support
FNMA) (a) | | | 1,050,000 | | | 1,050,000 | |
| | | | |
|
| |
| | | | | | 2,050,000 | |
| | | | |
|
| |
Colorado – 2.0% | | | | | | | |
Colorado Housing & Finance Authority
Revenue, Class III-A3, 3.55%,
10/1/36, (Credit Support MBIA,
SPA Depfa Bank plc) (a) | | | 2,800,000 | | | 2,800,000 | |
District of Columbia – 2.7% | | | | | | | |
District of Columbia GO, Series A,
2.80%, 6/1/15, (Credit Support FSA,
SPA Dexia Credit Local) (a) | | | 1,815,000 | | | 1,815,000 | |
District of Columbia Revenue, Series A,
4.50%, 12/1/15, (Credit Support
AMBAC, SPA Suntrust Bank) (a) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
| | | | | | 3,815,000 | |
| | | | |
|
| |
Florida – 4.6% | | | | | | | |
Broward County Florida Housing
Finance Authority Multi-family
Housing Revenue, 2.60%, 12/1/29,
(Credit Support Freddie Mac) (a) | | | 2,000,000 | | | 1,999,981 | |
Capital Trust Agency Florida Multi-
family Revenue, 2.45%, 11/15/34,
(Credit Support FNMA) (a) | | | 1,235,000 | | | 1,235,000 | |
Florida Housing Finance Agency
Revenue, 2.70%, 9/15/26,
(Credit Support FNMA) (a) | | | 1,600,000 | | | 1,600,000 | |
Orange County Florida Housing Finance
Authority Multi-family Revenue,
2.61%, 7/1/32, (Credit Support
Freddie Mac) (a) | | | 1,000,000 | | | 999,981 | |
Volusia County Florida Housing Finance
Authority Multi-family Revenue,
2.60%, 10/15/32, (Credit Support
FNMA) (a) | | | 700,000 | | | 699,998 | |
| | | | |
|
| |
| | | | | | 6,534,960 | |
| | | | |
|
| |
Georgia – 8.1% | | | | | | | |
Conyers-Rockdale-Big Haynes Georgia
Impoundment Authority Revenue,
2.58%, 7/1/22, (Credit Support FSA
County Guaranteed, SPA Wachovia
Bank N.A.) (a) | | | 2,790,000 | | | 2,790,000 | |
De Kalb County Georgia Housing
Authority Multi-family Housing
Revenue, 2.45%, 12/1/25, (Credit
Support Freddie Mac) (a) | | | 1,000,000 | | | 1,000,000 | |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Georgia, continued | | | | | | | |
De Kalb Private Hospital Authority
Georgia Revenue, Series A, 2.58%,
12/1/17, (LOC Suntrust Bank,
Atlanta) (a) | | | 1,700,000 | | | 1,700,000 | |
Fulton County Georgia Development
Authority Educational Facilities
Revenue, 2.40%, 4/1/24, (LOC
Wachovia Bank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Georgia State Ports Authority Revenue,
2.70%, 8/1/11, (LOC Suntrust
Bank) (a) | | | 1,300,000 | | | 1,300,000 | |
Gwinnett County Georgia Development
Authority Revenue, 2.44%, 3/1/21,
(LOC Suntrust Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Roswell Georgia Housing Authority
Multi-family Revenue, 2.44%,
11/15/32, (Credit Support
FNMA) (a) | | | 1,300,000 | | | 1,300,000 | |
Roswell Georgia Housing Authority
Multi-family Revenue, 2.59%,
6/15/25, (Credit Support FNMA) (a) | | | 1,400,000 | | | 1,400,000 | |
| | | | |
|
| |
| | | | | | 11,490,000 | |
| | | | |
|
| |
Illinois – 3.5% | | | | | | | |
Illinois Development Finance Authority
Revenue, 2.85%, 6/1/37, (LOC Bank
One N.A.) (a) | | | 2,000,000 | | | 2,000,000 | |
Illinois Finance Authority Revenue,
2.65%, 12/1/37, (LOC J.P. Morgan
Chase Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Illinois Finance Authority Revenue,
2.65%, 4/1/37, (LOC J.P. Morgan
Chase Bank) (a) | | | 600,000 | | | 600,000 | |
Illinois Finance Authority Revenue,
2.75%, 3/1/36, (LOC J.P. Morgan
Chase Bank) (a) | | | 1,300,000 | | | 1,300,000 | |
| | | | |
|
| |
| | | | | | 4,900,000 | |
| | | | |
|
| |
Indiana – 2.6% | | | | | | | |
Health Facilities Financing Authority
Hospital Revenue, 2.92%, 11/1/20,
(LOC National City Bank) (a) | | | 335,000 | | | 335,000 | |
Indianapolis Indiana Local Public
Improvement Bond Bank Revenue,
Series F-2, 3.70%, 2/1/20, (Credit
Support MBIA, SPA Bank One
N.A.) (a) | | | 3,300,000 | | | 3,300,000 | |
| | | | |
|
| |
| | | | | | 3,635,000 | |
| | | | |
|
| |
Iowa – 4.0% | | | | | | | |
Hills Iowa Health Facilities Revenue,
2.63%, 8/1/35, (LOC Allied Irish
Bank plc) (a) | | | 2,035,000 | | | 2,035,000 | |
Iowa Finance Authority Private College
Revenue, 2.60%, 4/1/31, (LOC Wells
Fargo Bank N.A.) (a) | | | 3,700,000 | | | 3,700,000 | |
| | | | |
|
| |
| | | | | | 5,735,000 | |
| | | | |
|
| |
| | |
21 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Louisiana – 2.8% | | | | | | | |
Louisiana Housing Finance Agency
Revenue, 2.65%, 12/1/25, (LOC
Societe Generale) (a) | | | 4,000,000 | | | 4,000,000 | |
Maryland – 0.7% | | | | | | | |
Community Development Administration
Maryland Multi-family Development
Revenue, 2.60%, 6/15/26, (Credit
Support FNMA) (a) | | | 1,000,000 | | | 1,000,000 | |
Michigan – 1.7% | | | | | | | |
Michigan State Hospital Finance
Authority Revenue, Series B, 2.55%,
11/15/40, (LOC Landesbank Hessen -
Thuringen) (a) | | | 2,440,000 | | | 2,440,000 | |
New Mexico – 0.4% | | | | | | | |
Farmington New Mexico Hospital
Revenue, 2.46%, 6/1/28, (LOC Bank
of Nova Scotia) (a) | | | 500,000 | | | 500,000 | |
North Carolina – 2.9% | | | | | | | |
North Carolina Capital Facilities
Finance Agency Solid Waste Disposal
Revenue, Series B, 2.59%, 11/1/40,
AMT, (LOC Wells Fargo Bank
N.A.) (a) | | | 2,000,000 | | | 2,000,000 | |
North Carolina Educational Facilities Finance Agency
Revenue, 2.43%,3/1/19, (LOC Wachovia Bank
N.A.) (a) | | | 1,375,000 | | | 1,375,000 | |
North Carolina Housing Finance Agency
Revenue, Series A, 2.60%, 7/1/31,
(LOC Wachovia Bank N.A.) (a) | | | 735,000 | | | 735,000 | |
| | | | |
|
| |
| | | | | | 4,110,000 | |
| | | | |
|
| |
Ohio – 0.7% | | | | | | | |
Ohio State Air Quality Development
Authority Revenue, Series A, 2.65%,
12/1/23, (LOC Keybank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Oregon – 0.7% | | | | | | | |
Oregon State Health Housing
Educational & Cultural Facilities
Authority Revenue, 2.44%, 3/1/33,
(LOC Keybank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | | | | |
Pennsylvania – 6.4% | | | | | | | |
Beaver County Pennsylvania Industrial
Development Authority Pollution
Control Revenue, Series A, 2.85%,
1/1/35, (LOC Barclays Bank plc) (a) | | | 1,500,000 | | | 1,500,000 | |
Dauphin County Pennsylvania General
Authority Revenue, Subseries S,
2.65%, 6/1/26, (Credit Support FSA,
SPA Bank of Nova Scotia, KBC
Bank NV) (a) | | | 1,165,000 | | | 1,165,000 | |
Emmaus Pennsylvania General Authority
Revenue, Subseries B-27, 2.53%,
3/1/24, (LOC Depfa Bank plc) (a) | | | 1,300,000 | | | 1,300,000 | |
Emmaus Pennsylvania General Authority
Revenue, Subseries E-20, 2.53%,
3/1/24, (LOC Depfa Bank plc) (a) | | | 500,000 | | | 500,000 | |
|
Variable Rate Demand Notes, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Pennsylvania, continued | | | | | | | |
Emmaus Pennsylvania General Authority
Revenue, Subseries G-19, 2.53%,
3/1/24, (LOC Depfa Bank plc) (a) | | | 460,000 | | | 460,000 | |
Emmaus Pennsylvania General Authority
Revenue, 2.53%, 3/1/24, (LOC Depfa
Bank plc) (a) | | | 2,000,000 | | | 2,000,000 | |
Philadelphia Pennsylvania Gas Works
Revenue, Series A-2, 2.60%, 9/1/34,
(LOC J.P. Morgan Chase Bank,
Bank of Nova Scotia) (a) | | | 2,150,000 | | | 2,150,000 | |
| | | | |
|
| |
| | | | | | 9,075,000 | |
| | | | |
|
| |
Tennessee – 5.3% | | | | | | | |
Jackson Tennessee Health Educational &
Housing Facility Board Multi-
family Revenue, 2.60%, 5/15/31,
(Credit Support FNMA) (a) | | | 1,375,000 | | | 1,375,000 | |
Metropolitan Government Nashville &
Davidson County Industrial
Development Revenue, 2.60%,
2/15/34, (Credit Support FNMA) (a) | | | 800,000 | | | 800,000 | |
Metropolitan Government Nashville &
Davidson County Tennessee Health &
Educational Facilities Board Revenue,
2.44%, 7/1/21, (LOC Suntrust Bank
Nashville) (a) | | | 1,300,000 | | | 1,300,000 | |
Sevier County Tennessee Public
Building Authority Revenue, 3.50%,
6/1/20, (Credit Support AMBAC
Municipal Government Guaranteed,
Landesbank Hessen - Thuringen) (a) | | | 4,000,000 | | | 4,000,000 | |
| | | | |
|
| |
| | | | | | 7,475,000 | |
| | | | |
|
| |
Texas – 5.0% | | | | | | | |
Garland Texas Industrial Development
Authority Revenue, 2.65%, 12/1/14,
(LOC Wells Fargo Bank N.A.) (a) | | | 1,625,000 | | | 1,625,000 | |
Tarrant County Texas Housing Finance
Corp. Revenue, 2.44%, 2/15/36,
(Credit Support FNMA) (a) | | | 1,400,000 | | | 1,400,000 | |
Texas Small Business Industrial
Development Corp. Revenue, 2.73%,
7/1/26, (LOC Bank of America N.A.) (a) | | | 4,050,000 | | | 4,050,000 | |
| | | | |
|
| |
| | | | | | 7,075,000 | |
| | | | |
|
| |
Virginia – 0.8% | | | | | | | |
Prince Williams County Certificates of
Participation, Series B, 2.55%, 9/1/26,
(LOC Wachovia Bank N.A.) (a) | | | 1,150,000 | | | 1,150,000 | |
Washington – 2.8% | | | | | | | |
Washington State Health Care Facilities
Authority Lease Revenue, 2.70%,
1/1/32, (LOC BNP Paribas) (a) | | | 1,000,000 | | | 1,000,000 | |
Washington State Health Care Facilities
Authority Revenue, 2.68%, 11/15/26,
(LOC Citibank N.A.) (a)(b) | | | 1,500,000 | | | 1,500,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 22 |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
|
|
|
|
|
|
|
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Washington, continued | | | | | | | |
Washington State Housing Finance
Commission Nonprofit Revenue,
2.48%, 4/1/43, (LOC Keybank
N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
| | | | | | 4,000,000 | |
| | | | |
|
| |
Wyoming – 1.4% | | | | | | | |
Sweetwater County Wyoming Hospital
Revenue, Series B, 2.56%, 9/1/37,
(LOC Keybank N.A.) (a) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $87,784,960) | | | | | | 87,784,960 | |
| | | | |
|
| |
Tax-Free Notes And Commercial Paper—35.4% | | | | | | | |
|
|
|
|
|
|
|
|
California – 1.4% | | | | | | | |
Los Angeles County California GO,
4.50%, 6/30/08 | | | 2,000,000 | | | 2,002,782 | |
Connecticut – 2.6% | | | | | | | |
City of New Haven Connecticut,
Series 02-A, 1.40%, 6/5/08, (LOC
Landesbank Hessen) | | | 3,680,000 | | | 3,680,000 | |
Florida – 6.0% | | | | | | | |
City of Cape Coral Florida, 1.55%,
9/25/08, (LOC Bank of America) | | | 3,000,000 | | | 3,000,000 | |
Florida Local Government Finance
Commission, Series A, 2.00%, 7/9/08,
(LOC First Union National Bank) | | | 435,000 | | | 435,000 | |
Florida State Board of Education GO,
Series A, 5.20%, 6/1/23, (Credit
Support FSA), Prerefunded
6/1/08 @ 101 | | | 1,000,000 | | | 1,012,869 | |
Greater Orlando Aviation Airport
Facilities, Series B, 1.15%, 6/5/08,
AMT, (LOC Bayerische Landesbank
Girozen, State Street B&T Co.) | | | 2,000,000 | | | 2,000,000 | |
Hillsborough County Capital
Improvement Program, Series A,
1.40%, 8/28/08, (LOC State Street
B&T Co.) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
| | | | | | 8,447,869 | |
| | | | |
|
| |
Georgia – 3.1% | | | | | | | |
Municipal Electric Authority Georgia,
Series TE-A, 1.45%, 5/27/08, (LOC
Bayerische Landesbank Girozen,
Wachovia Bank, Westlandesbank
Girozen) | | | 4,320,000 | | | 4,320,000 | |
Nevada – 2.1% | | | | | | | |
Las Vegas Convention & Visitors
Authority Revenue, Series 06-A,
1.35%, 6/5/08, (LOC Fortis Bank
SV/NA, Bank of Nova Scotia, State
Street B&T Co.) | | | 3,000,000 | | | 3,000,000 | |
| | | | | | | |
Tax-Free Notes And Commercial Paper, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
New York – 2.8% | | | | | | | |
Suffolk County GO, 3.50%, 8/14/08 | | | 4,000,000 | | | 4,007,913 | |
Pennsylvania – 3.5% | | | | | | | |
Montgomery County Pennsylvania
Industrial Pollution Control,
Series 94-A, 2.70%, 5/9/08, (LOC
BNP Paribas) | | | 5,000,000 | | | 5,000,000 | |
Texas – 8.4% | | | | | | | |
County of Bexar, Texas Metropolitan
Water District, 1.85%, 5/2/08, (LOC
Bank of America) | | | 2,000,000 | | | 2,000,000 | |
County of Bexar, Texas Metropolitan
Water District, Series 97, 1.75%,
5/22/08, (LOC Bank of America) | | | 2,000,000 | | | 2,000,000 | |
Harris County Texas Flood Control
District, Series F, 2.00%, 7/9/08,
(LOC Helaba) | | | 1,300,000 | | | 1,300,000 | |
Harris County Texas Flood Control
District, Series F, 3.00%, 7/10/08,
(LOC Helaba) | | | 1,090,000 | | | 1,090,000 | |
Houston Texas, Series A, 1.45%,
7/16/08, (LOC Bank of New York) | | | 1,500,000 | | | 1,500,000 | |
Houston Texas, Series A, 2.70%, 5/8/08,
(LOC Bank of New York) | | | 4,000,000 | | | 4,000,000 | |
| | | | |
|
| |
| | | | | | 11,890,000 | |
| | | | |
|
| |
Washington – 3.7% | | | | | | | |
Port of Seattle Washington, Series A-2,
2.65%, 6/11/08, (LOC Bayerische
Landesbank NY) | | | 5,300,000 | | | 5,300,000 | |
| | | | | | | |
Wisconsin – 0.7% | | | | | | | |
City of Milwaukee, Series 8-C2, 0.95%,
8/8/08, (LOC State Street B&T Co.) | | | 1,000,000 | | | 1,000,000 | |
| | | | | | | |
Wyoming – 1.1% | | | | | | | |
Sweetwater County Wyoming, Series
88-A, 1.35%, 8/7/08, (LOC Barclays
Bank plc) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
TOTAL TAX-FREE NOTES AND
COMMERCIAL PAPER
(COST $50,148,564) | | | | | | 50,148,564 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—0.4% | | | | | | | |
|
|
|
|
|
|
|
|
BlackRock Liquidity Funds MuniFund
Portfolio, Institutional Shares,
2.46% (c) | | | 535,000 | | | 535,000 | |
Northern Institutional Tax Exempt
Portfolio, Shares class, 2.38% (c) | | | 8,923 | | | 8,923 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $543,923) | | | | | | 543,923 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $138,477,447) — 97.7% | | | | | | 138,477,447 | |
| | | | |
|
| |
| | |
23 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| |
| Percentages indicated are based on net assets of $141,741,980. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
AMBAC | — American Municipal Bond Assurance Corp. |
AMT | — Interest on security is subject to federal alternative minimum tax |
FNMA | — Federal National Mortgage Association |
FSA | — Financial Security Assurance |
GO | — General Obligation |
LOC | — Letter of Credit |
MBIA | — Municipal Bond Insurance Association |
PLC | — Public Limited Co. |
SPA | — Standby Purchase Agreement |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 24 |
|
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
U.S. Government and Government Agency Obligations—72.8% |
|
|
|
|
|
|
| | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Federal Farm Credit Bank – 20.6% | | | | | | | |
1.90%, 5/2/08 (a) | | | 75,000,000 | | | 74,996,104 | |
2.05%, 5/6/08 (a) | | | 175,000,000 | | | 174,950,972 | |
1.97%, 5/7/08 (a) | | | 400,000,000 | | | 399,870,667 | |
2.16%, 5/8/08 (a) | | | 100,000,000 | | | 99,958,778 | |
1.97%, 5/23/08 (a) | | | 93,000,000 | | | 92,889,743 | |
2.23%, 5/27/08 (b) | | | 50,000,000 | | | 49,999,453 | |
1.98%, 5/29/08 (a) | | | 215,000,000 | | | 214,673,917 | |
2.04%, 6/6/08 (a) | | | 50,000,000 | | | 49,899,500 | |
2.04%, 6/9/08 (a) | | | 50,000,000 | | | 49,891,125 | |
2.04%, 6/10/08 (a) | | | 50,000,000 | | | 49,888,333 | |
1.98%, 6/25/08 (a) | | | 50,000,000 | | | 49,851,042 | |
1.98%, 6/26/08 (a) | | | 50,000,000 | | | 49,848,333 | |
2.31%, 7/9/08 (b) | | | 400,000,000 | | | 399,984,835 | |
5.15%, 9/8/08 | | | 25,000,000 | | | 25,246,669 | |
2.11%, 11/12/08 (a) | | | 50,000,000 | | | 49,442,083 | |
2.32%, 1/7/09 (b) | | | 300,000,000 | | | 300,000,000 | |
2.32%, 1/14/09 (b) | | | 26,000,000 | | | 25,994,446 | |
2.21%, 1/23/09 (b) | | | 21,000,000 | | | 20,978,448 | |
2.22%, 1/23/09 (b) | | | 50,000,000 | | | 49,995,803 | |
2.85%, 3/5/09 | | | 60,177,000 | | | 60,177,000 | |
2.20%, 3/25/09 | | | 200,000,000 | | | 200,000,000 | |
2.21%, 5/11/09 (b) | | | 150,000,000 | | | 149,985,264 | |
2.35%, 5/15/09 (b) | | | 300,000,000 | | | 300,000,000 | |
2.21%, 6/8/09 (b) | | | 100,000,000 | | | 99,989,443 | |
2.32%, 7/22/09 (b) | | | 25,000,000 | | | 24,987,679 | |
2.63%, 10/14/09 (b) | | | 68,000,000 | | | 68,000,000 | |
2.70%, 10/21/09 (b) | | | 150,000,000 | | | 149,978,073 | |
2.31%, 11/16/09 (b) | | | 200,000,000 | | | 200,000,000 | |
| | | | |
|
| |
| | | | | | 3,481,477,710 | |
| | | | |
|
| |
| | | | | | | |
Federal Home Loan Bank – 52.2% | | | | | | | |
2.27%, 5/1/08 (a) | | | 1,680,000,000 | | | 1,680,000,000 | |
2.17%, 5/2/08 (a) | | | 750,000,000 | | | 749,954,792 | |
1.98%, 5/23/08 (a) | | | 639,450,000 | | | 638,677,043 | |
2.91%, 5/28/08 (b) | | | 100,000,000 | | | 99,996,062 | |
2.52%, 6/4/08 (a) | | | 286,000,000 | | | 285,333,997 | |
2.42%, 6/6/08 (a) | | | 200,000,000 | | | 199,526,000 | |
2.18%, 6/13/08 (a) | | | 200,000,000 | | | 199,481,611 | |
1.92%, 6/18/08 (a) | | | 300,000,000 | | | 299,248,000 | |
2.12%, 7/1/08 (a) | | | 345,000,000 | | | 343,784,067 | |
2.16%, 7/7/08 (a) | | | 300,000,000 | | | 298,819,125 | |
2.86%, 7/30/08 (a) | | | 100,000,000 | | | 99,305,000 | |
5.13%, 8/8/08 | | | 146,925,000 | | | 147,963,573 | |
2.09%, 9/12/08 (a) | | | 100,000,000 | | | 99,229,500 | |
2.65%, 9/17/08 (b) | | | 150,000,000 | | | 149,974,724 | |
2.55%, 10/10/08 (b) | | | 50,000,000 | | | 49,992,841 | |
2.76%, 10/24/08 (b) | | | 100,000,000 | | | 99,984,974 | |
2.91%, 11/14/08 (b) | | | 100,000,000 | | | 99,984,218 | |
2.36%, 12/3/08 (b) | | | 200,000,000 | | | 200,000,000 | |
5.25%, 1/16/09 | | | 209,000,000 | | | 213,856,637 | |
2.95%, 2/18/09 (b) | | | 200,000,000 | | | 200,000,000 | |
2.85%, 2/27/09 | | | 39,000,000 | | | 39,000,000 | |
3.00%, 2/27/09 | | | 100,000,000 | | | 100,000,000 | |
3.00%, 3/10/09 | | | 250,000,000 | | | 250,100,492 | |
2.63%, 3/12/09 | | | 200,000,000 | | | 200,000,000 | |
2.85%, 3/17/09 | | | 200,000,000 | | | 200,000,000 | |
2.65%, 5/6/09 | | | 50,000,000 | | | 50,000,000 | |
2.89%, 5/20/09 (b) | | | 45,000,000 | | | 44,988,018 | |
| | | | | | | |
U.S. Government and Government Agency Obligations, continued |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
2.96%, 8/5/09 (b) | | | 100,000,000 | | | 99,962,614 | |
3.10%, 8/5/09 (b) | | | 300,000,000 | | | 300,076,323 | |
2.97%, 8/7/09 (b) | | | 300,000,000 | | | 300,058,545 | |
2.69%, 9/4/09 (b) | | | 470,000,000 | | | 470,000,000 | |
2.63%, 10/16/09 (b) | | | 300,000,000 | | | 299,912,463 | |
2.68%, 4/16/10 (b) | | | 300,000,000 | | | 300,000,000 | |
| | | | |
|
| |
| | | | | | 8,809,210,619 | |
| | | | |
|
| |
| | | | | | | |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(COST $12,290,688,329) | | | | | | 12,290,688,329 | |
| | | | |
|
| |
| | | | | | | |
Repurchase Agreements—27.2% | | | | | | | |
|
|
|
|
|
|
|
|
Goldman Sachs, purchased on
4/30/08, 1.80%, due 5/1/08 with a
maturity value of $500,025,000
(Collateralized fully by various
U.S. Government and
Government Agency Obligations) | | | 500,000,000 | | | 500,000,000 | |
Goldman Sachs, purchased on
4/30/08, 1.97%, due 5/1/08 with a
maturity value of $1,000,054,722
(Collateralized fully by various
U.S. Government and Government
Agency Obligations) | | | 1,000,000,000 | | | 1,000,000,000 | |
Lehman Brothers, purchased on
4/30/08, 1.60%, due 5/1/08 with a
maturity value of $2,000,088,889
(Collateralized fully by various
U.S. Government and Government
Agency Obligations) | | | 2,000,000,000 | | | 2,000,000,000 | |
Lehman Brothers, purchased on
4/30/08, 1.60%, due 5/7/08 with a
maturity value of $500,184,722
(Collateralized fully by various
U.S. Government and Government
Agency Obligations) | | | 500,000,000 | | | 500,000,000 | |
Morgan Stanley Dean Witter,
purchased on 4/30/08, 1.00%,
due 5/1/08 with a maturity value
of $100,002,778 (Collateralized
fully by various U.S. Government
and Government Agency Obligations) | | | 100,000,000 | | | 100,000,000 | |
Morgan Stanley Dean Witter,
purchased on 4/30/08, 1.98%, due
5/1/08 with a maturity value of
$500,027,500 (Collateralized fully
by various U.S. Government and
Government Agency Obligations) | | | 500,000,000 | | | 500,000,000 | |
| | | | |
|
| |
TOTAL REPURCHASE AGREEMENTS
(COST $4,600,000,000) | | | | | | 4,600,000,000 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $16,890,688,329) — 100.0% | | | | | | 16,890,688,329 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $16,898,324,724. |
| |
(a) | Discount note. Rate presented represents the effective yield at time of purchase. |
| |
(b) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| | |
25 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR U.S. TREASURY MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Treasury Obligations—106.3%(a) |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
U.S. Treasury Bills – 106.3% | | | | | | | |
0.61%, 5/1/08 | | | 324,200,000 | | | 324,200,000 | |
1.19%, 5/8/08 | | | 250,000,000 | | | 249,942,346 | |
0.91%, 5/15/08 | | | 400,000,000 | | | 399,859,452 | |
1.17%, 5/22/08 | | | 275,000,000 | | | 274,813,406 | |
1.28%, 5/29/08 | | | 175,000,000 | | | 174,826,050 | |
1.31%, 6/5/08 | | | 175,000,000 | | | 174,777,444 | |
1.07%, 6/12/08 | | | 174,200,000 | | | 173,983,584 | |
0.71%, 6/19/08 | | | 125,000,000 | | | 124,879,065 | |
1.01%, 6/26/08 | | | 125,000,000 | | | 124,802,834 | |
1.06%, 7/10/08 | | | 75,000,000 | | | 74,845,271 | |
1.48%, 7/17/08 | | | 50,000,000 | | | 49,842,792 | |
1.11%, 7/24/08 | | | 50,000,000 | | | 49,871,083 | |
1.32%, 8/7/08 | | | 50,000,000 | | | 49,822,375 | |
1.26%, 8/14/08 | | | 25,000,000 | | | 24,908,854 | |
1.26%, 8/21/08 | | | 31,550,000 | | | 31,427,197 | |
1.30%, 8/28/08 | | | 28,050,000 | | | 27,930,850 | |
1.59%, 9/4/08 | | | 40,000,000 | | | 39,779,106 | |
1.24%, 9/11/08 | | | 142,500,000 | | | 141,853,472 | |
1.39%, 10/2/08 | | | 25,000,000 | | | 24,852,043 | |
1.42%, 10/9/08 | | | 25,000,000 | | | 24,841,907 | |
1.66%, 10/16/08 | | | 25,000,000 | | | 24,807,850 | |
1.63%, 10/23/08 | | | 25,000,000 | | | 24,803,733 | |
1.68%, 10/30/08 | | | 25,000,000 | | | 24,789,563 | |
| | | | |
|
| |
| | | | | | 2,636,460,277 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $2,636,460,277) — 106.3% | | | | | | 2,636,460,277 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $2,479,090,298. |
| |
(a) | Discount note. Rate presented represents the effective yield at time of purchase. |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 26 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited)
| | | | | | | | | | |
| | California
Tax-Free
Money Market
Fund | | Money Market
Fund | | New York
Tax-Free
Money Market
Fund | |
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | |
Investments, at amortized cost | | $ | 213,532,722 | | $ | 7,235,170,177 | | $ | 1,060,860,692 | |
Investments, at value | | | — | | | 434,050,000 | | | — | |
| |
|
| |
|
| |
|
| |
Total Investments | | | 213,532,722 | | | 7,669,220,177 | | | 1,060,860,892 | |
Cash | | | — | | | 252 | | | — | |
Interest and dividends receivable | | | 757,774 | | | 17,977,758 | | | 4,464,184 | |
Receivable for capital shares issued | | | 161,873 | | | 10,936,407 | | | 1,273,630 | |
Receivable for investments sold | | | 4,600,000 | | | — | | | 15,070,000 | |
Capital Support Agreement, at value (See Note 6) | | | — | | | 12,596,944 | | | — | |
Prepaid expenses and other assets | | | 31,572 | | | 187,719 | | | 41,504 | |
| |
|
| |
|
| |
|
| |
Total Assets | | | 219,083,941 | | | 7,710,919,257 | | | 1,081,710,010 | |
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | |
Cash overdraft | | | — | | | — | | | 4,030 | |
Dividends payable | | | 273,262 | | | 16,076,655 | | | 1,542,129 | |
Accrued expenses and other liabilities: | | | | | | | | | | |
Investment Management | | | 8,885 | | | 1,126,521 | | | 147,161 | |
Administration | | | 13,130 | | | 347,155 | | | 73,734 | |
Distribution | | | — | | | 237,724 | | | 49 | |
Shareholder Servicing | | | 25,127 | | | 962,436 | | | 170,849 | |
Compliance Service | | | 358 | | | 8,819 | | | 1,680 | |
Transfer Agent | | | 8,262 | | | 50,997 | | | 12,848 | |
Other | | | 13,244 | | | 557,417 | | | 52,001 | |
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 342,268 | | | 19,367,724 | | | 2,004,481 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 218,741,673 | | $ | 7,691,551,533 | | $ | 1,079,705,529 | |
| |
|
| |
|
| |
|
| |
Composition of Net Assets: | | | | | | | | | | |
Capital | | $ | 218,744,597 | | $ | 7,706,532,232 | | $ | 1,079,697,416 | |
Accumulated net investment income (loss) | | | — | | | (539 | ) | | (279 | ) |
Accumulated net realized gains (losses) from investment transactions | | | (2,924 | ) | | (3,636,809 | ) | | 8,392 | |
Unrealized appreciation/(depreciation) from investments | | | — | | | (11,343,351 | ) | | — | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 218,741,673 | | $ | 7,691,551,533 | | $ | 1,079,705,529 | |
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | |
Class A Shares | | $ | 21,789 | | $ | 371,783,017 | | $ | 48,467,236 | |
Class B Shares | | | — | | | 242,759 | | | 34,501 | |
Class C Shares | | | — | | | 404,897,811 | | | 1 | |
Class D Shares | | | 128,201,706 | | | 3,406,221,416 | | | 715,781,537 | |
Class I Shares | | | — | | | 2,324,814,905 | | | — | |
Class Y Shares | | | 90,518,178 | | | 1,183,591,625 | | | 315,422,254 | |
| |
|
| |
|
| |
|
| |
| | $ | 218,741,673 | | $ | 7,691,551,533 | | $ | 1,079,705,529 | |
| |
|
| |
|
| |
|
| |
Shares Outstanding | | | | | | | | | | |
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | |
Class A Shares | | | 21,791 | | | 372,551,569 | | | 48,465,449 | |
Class B Shares | | | — | | | 243,224 | | | 34,461 | |
Class C Shares | | | — | | | 405,621,378 | | | 1 | |
Class D Shares | | | 128,197,920 | | | 3,413,242,739 | | | 715,782,094 | |
Class I Shares | | | — | | | 2,329,076,456 | | | — | |
Class Y Shares | | | 90,526,506 | | | 1,185,811,519 | | | 315,415,490 | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | |
Class A Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
Class B Shares* | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class C Shares* | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class D Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
Class I Shares | | $ | — | | $ | 1.00 | | $ | — | |
Class Y Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | $ | 213,532,722 | | $ | 7,693,160,472 | | $ | 1,060,860,692 | |
| |
|
| |
|
| |
|
| |
|
|
* Redemption price per share varies by length of time shares are held. |
| | |
27 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Assets and Liabilities — as of April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | |
| | Tax-Free
Money Market
Fund | | U.S.
Government
Money Market
Fund | | U.S. Treasury
Money Market
Fund | |
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | |
Investments, at amortized cost | | $ | 138,477,447 | | $ | 12,290,688,329 | | $ | 2,636,460,277 | |
Repurchase agreements, at cost | | | — | | | 4,600,000,000 | | | — | |
| |
|
| |
|
| |
|
| |
Total Investments | | $ | 138,477,447 | | $ | 16,890,688,329 | | $ | 2,636,460,277 | |
Cash | | | — | | | 49,439,979 | | | — | |
Interest and dividends receivable | | | 496,047 | | | 24,510,003 | | | — | |
Receivable for capital shares issued | | | 83,005 | | | 19,957,533 | | | 1,735,895 | |
Receivable for investments sold | | | 2,910,000 | | | — | | | — | |
Prepaid expenses and other assets | | | 37,288 | | | 160,022 | | | 85,971 | |
| |
|
| |
|
| |
|
| |
Total Assets | | | 142,003,787 | | | 16,984,755,866 | | | 2,638,282,143 | |
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | |
Cash overdraft | | | — | | | — | | | 5,011 | |
Payable for investments purchased | | | — | | | 50,000,000 | | | 156,458,195 | |
Dividends payable | | | 222,654 | | | 30,550,365 | | | 1,940,929 | |
Accrued expenses and other liabilities: | | | | | | | | | | |
Investment Management | | | — | | | 3,005,022 | | | 325,276 | |
Administration | | | 7,880 | | | 787,234 | | | 89,547 | |
Distribution | | | 9 | | | 1,499 | | | 29 | |
Shareholder Servicing | | | 17,504 | | | 1,806,172 | | | 250,469 | |
Compliance Service | | | 120 | | | 5,370 | | | 1,697 | |
Transfer Agent | | | 8,365 | | | 42,287 | | | 12,278 | |
Other | | | 5,275 | | | 233,193 | | | 108,414 | |
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 261,807 | | | 86,431,142 | | | 159,191,845 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 141,741,980 | | $ | 16,898,324,724 | | $ | 2,479,090,298 | |
| |
|
| |
|
| |
|
| |
Composition of Net Assets: | | | | | | | | | | |
Capital | | $ | 141,740,982 | | $ | 16,898,326,894 | | $ | 2,479,033,026 | |
Accumulated net investment income (loss) | | | 282 | | | — | | | (602 | ) |
Accumulated net realized gains (losses) from investment transactions | | | 716 | | | (2,170 | ) | | 57,874 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 141,741,980 | | $ | 16,898,324,724 | | $ | 2,479,090,298 | |
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 835,519,034 | | $ | 217,256,591 | |
Class B Shares | | | — | | | 16,898 | | | 12,061 | |
Class C Shares | | | — | | | 2,372,006 | | | 10 | |
Class D Shares | | | 78,842,073 | | | 7,471,124,886 | | | 892,472,357 | |
Class I Shares | | | — | | | 1,930,940,234 | | | 845,810,240 | |
Class Y Shares | | | 62,899,907 | | | 6,658,351,666 | | | 523,539,039 | |
| |
|
| |
|
| |
|
| |
| | $ | 141,741,980 | | $ | 16,898,324,724 | | $ | 2,479,090,298 | |
| |
|
| |
|
| |
|
| |
Shares Outstanding | | | | | | | | | | |
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | |
Class A Shares | | | — | | | 835,113,703 | | | 217,277,902 | |
Class B Shares | | | — | | | 16,899 | | | 12,063 | |
Class C Shares | | | — | | | 2,371,969 | | | 10 | |
Class D Shares | | | 78,840,105 | | | 7,471,111,746 | | | 892,442,641 | |
Class I Shares | | | — | | | 1,931,003,278 | | | 845,792,870 | |
Class Y Shares | | | 62,900,509 | | | 6,658,709,656 | | | 523,519,408 | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | |
Class A Shares | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class B Shares* | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class C Shares* | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class D Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
Class I Shares | | $ | — | | $ | 1.00 | | $ | 1.00 | |
Class Y Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | $ | 138,477,447 | | $ | 16,890,688,329 | | $ | 2,636,460,277 | |
| |
|
| |
|
| |
|
| |
|
|
* Redemption price per share varies by length of time shares are held |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 28 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | |
| | California
Tax-Free
Money Market
Fund | | Money Market
Fund | | New York
Tax-Free
Money Market
Fund | |
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | |
Interest | | $ | 2,476,138 | | $ | 163,418,020 | | $ | 14,108,069 | |
Dividends | | | 89,354 | | | — | | | 548,108 | |
| |
|
| |
|
| |
|
| |
Total Investment Income | | | 2,565,492 | | | 163,418,020 | | | 14,656,177 | |
| |
|
| |
|
| |
|
| |
Expenses: | | | | | | | | | | |
Investment Management: | | | 104,797 | | | 4,006,973 | | | 545,519 | |
Advisory Services | | | | | | | | | | |
Operational Support—Class A Shares | | | 15 | | | 202,198 | | | 22,030 | |
Operational Support—Class B Shares | | | — | | | 107 | | | 9 | |
Operational Support—Class C Shares | | | 402 | | | 180,292 | | | — | |
Operational Support—Class D Shares | | | 52,241 | | | 1,836,500 | | | 163,683 | |
Operational Support—Class Y Shares | | | 52,139 | | | 565,568 | | | 87,037 | |
Administration | | | 47,866 | | | 1,830,327 | | | 248,750 | |
Distribution: | | | | | | | | | | |
Class B Shares | | | — | | | 804 | | | 128 | |
Class C Shares | | | 3,018 | | | 1,352,206 | | | — | |
Shareholder Servicing: | | | | | | | | | | |
Class A Shares | | | 58 | | | 808,803 | | | 176,318 | |
Class B Shares | | | — | | | 268 | | | 43 | |
Class C Shares | | | 1,006 | | | 450,735 | | | — | |
Class D Shares | | | 130,608 | | | 4,591,305 | | | 818,370 | |
Accounting | | | 37,050 | | | 40,609 | | | 41,061 | |
Compliance Service | | | 1,080 | | | 40,879 | | | 5,507 | |
Custodian | | | 6,026 | | | 327,424 | | | 30,289 | |
Printing | | | 1,950 | | | 86,605 | | | 11,580 | |
Professional | | | 6,156 | | | 218,510 | | | 29,657 | |
Transfer Agent | | | 21,783 | | | 59,654 | | | 24,278 | |
Trustee | | | 2,369 | | | 89,093 | | | 12,060 | |
Registration | | | 1,686 | | | 27,745 | | | 4,024 | |
Other | | | 28,357 | | | 230,377 | | | 48,205 | |
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 498,607 | | | 16,946,982 | | | 2,268,548 | |
Fees reduced by Investment Adviser | | | (157,196 | ) | | (2,027 | ) | | — | |
Fees reduced by Administrator | | | — | | | (194,188 | ) | | — | |
| |
|
| |
|
| |
|
| |
Net Expenses | | | 341,411 | | | 16,750,767 | | | 2,268,548 | |
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | 2,224,081 | | | 146,667,253 | | | 12,387,629 | |
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments: | | | | | | | | | | |
Net realized gains (losses) from investment transactions | | | (2,900 | ) | | (3,362,786 | ) | | 20,130 | |
Change in unrealized appreciation/(depreciation) from investments | | | — | | | (23,940,295 | ) | | — | |
Change in unrealized appreciation/(depreciation) from Capital Support Agreement (See Note 6) | | | — | | | 12,596,944 | | | — | |
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains (losses) from investment transactions | | | (2,900 | ) | | (14,706,137 | ) | | 20,130 | |
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 2,221,181 | | $ | 131,961,116 | | $ | 12,407,759 | |
| |
|
| |
|
| |
|
| |
| | |
29 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited) (continued)
| | | | | | | | | | |
| | Tax-Free
Money Market
Fund | | U.S.
Government
Money Market
Fund | | U.S. Treasury
Money Market
Fund | |
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | |
Interest | | $ | 1,409,815 | | $ | 235,490,729 | | $ | 16,803,871 | |
Dividends | | | 48,011 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
Total Investment Income | | | 1,457,826 | | | 235,490,729 | | | 16,803,871 | |
| |
|
| |
|
| |
|
| |
Expenses: | | | | | | | | | | |
Investment Management: | | | 54,140 | | | 6,933,272 | | | 734,269 | |
Advisory Services | | | | | | | | | | |
Operational Support—Class A Shares | | | — | | | 487,974 | | | 74,279 | |
Operational Support—Class B Shares | | | — | | | 7 | | | 25 | |
Operational Support—Class C Shares | | | — | | | 194 | | | — | |
Operational Support—Class D Shares | | | 35,891 | | | 1,684,956 | | | 309,997 | |
Operational Support—Class Y Shares | | | 18,249 | | | 4,289,896 | | | 185,885 | |
Administration | | | 24,513 | | | 3,132,493 | | | 330,182 | |
Distribution: | | | | | | | | | | |
Class B Shares | | | — | | | 49 | | | 190 | |
Class C Shares | | | — | | | 1,458 | | | — | |
Shareholder Servicing: | | | | | | | | | | |
Class A Shares | | | — | | | 1,951,926 | | | 297,121 | |
Class B Shares | | | — | | | 16 | | | 57 | |
Class C Shares | | | — | | | 486 | | | — | |
Class D Shares | | | 89,729 | | | 4,212,443 | | | 775,002 | |
Accounting | | | 40,675 | | | 36,796 | | | 36,379 | |
Compliance Service | | | 474 | | | 66,259 | | | 5,209 | |
Custodian | | | 2,892 | | | 219,595 | | | 11,661 | |
Printing | | | 1,139 | | | 151,688 | | | 9,762 | |
Professional | | | 2,785 | | | 443,045 | | | 33,490 | |
Transfer Agent | | | 23,816 | | | 72,072 | | | 26,635 | |
Trustee | | | 1,021 | | | 137,538 | | | 10,867 | |
Registration | | | 744 | | | 108,668 | | | 16,685 | |
Other | | | 29,857 | | | 224,358 | | | 93,728 | |
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 325,925 | | | 24,155,189 | | | 2,951,423 | |
Fees reduced by Investment Adviser | | | (108,280 | ) | | — | | | (10,454 | ) |
Fees reduced by Administrator | | | — | | | (42,748 | ) | | (46,324 | ) |
| |
|
| |
|
| |
|
| |
Net Expenses | | | 217,645 | | | 24,112,441 | | | 2,894,645 | |
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | 1,240,181 | | | 211,378,288 | | | 13,909,226 | |
| |
|
| |
|
| |
|
| |
Net realized gains (losses) from investments transactions | | | 716 | | | — | | | 147,911 | |
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 1,240,897 | | $ | 211,378,288 | | $ | 14,057,137 | |
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 30 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets
All capital share transactions have been processed at a net asset value of $1.00 per share.
| | | | | | | | | | | | | |
| | California Tax-Free
Money Market Fund | | Money Market
Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 2,224,081 | | $ | 4,203,723 | | $ | 146,667,253 | | $ | 326,556,509 | |
Net realized gains (losses) from investment transactions | | | (2,900 | ) | | — | | | (3,362,786 | ) | | (197,657 | ) |
Change in unrealized appreciation/(depreciation) from investments | | | — | | | — | | | (11,343,351 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 2,221,181 | | | 4,203,723 | | | 131,961,116 | | | 326,358,852 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (292 | ) | | (210 | ) | | (7,044,875 | ) | | (18,350,728 | ) |
Class B Shares | | | — | | | — | | | (2,973 | ) | | (6,369 | ) |
Class C Shares | | | (6,483 | ) | | (17,686 | ) | | (5,019,476 | ) | | (11,381,430 | ) |
Class D Shares | | | (1,054,018 | ) | | (3,123,504 | ) | | (65,860,307 | ) | | (151,729,252 | ) |
Class I Shares | | | — | | | — | | | (47,858,429 | ) | | (97,641,625 | ) |
Class Y Shares | | | (1,184,492 | ) | | (1,041,119 | ) | | (21,595,717 | ) | | (46,569,350 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (2,245,285 | ) | | (4,182,519 | ) | | (147,381,777 | ) | | (325,678,754 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 94,699,327 | | | (5,754,555 | ) | | 300,122,156 | | | 1,982,137,166 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 94,675,223 | | | (5,733,351 | ) | | 284,701,495 | | | 1,982,817,264 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 124,066,450 | | | 129,799,801 | | | 7,406,850,038 | | | 5,424,032,774 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 218,741,673 | | $ | 124,066,450 | | $ | 7,691,551,533 | | $ | 7,406,850,038 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | — | | $ | 21,204 | | $ | (539 | ) | $ | 713,985 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
31 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
All capital share transactions have been processed at a net asset value of $1.00 per share.
| | | | | | | | | | | | | |
| | California Tax-Free
Money Market Fund | | Money Market
Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 123,493 | | $ | 937,407 | | $ | 392,331,190 | | $ | 1,113,134,505 | |
Dividends reinvested | | | 292 | | | 210 | | | 5,863,493 | | | 14,136,518 | |
Value of shares redeemed | | | (101,994 | ) | | (937,617 | ) | | (496,747,221 | ) | | (1,071,695,496 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 21,791 | | | — | | | (98,552,538 | ) | | 55,575,527 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 89,557 | | | 160,209 | |
Dividends reinvested | | | — | | | — | | | 659 | | | 1,890 | |
Value of shares redeemed | | | — | | | — | | | (50,783 | ) | | (67,124 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | — | | | — | | | 39,433 | | | 94,975 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 785 | | | 2,000,790 | | | 747,426,800 | | | 1,188,423,887 | |
Dividends reinvested | | | 6,483 | | | 17,686 | | | 5,019,476 | | | 11,378,953 | |
Value of shares redeemed | | | (1,025,744 | ) | | (1,000,000 | ) | | (664,013,683 | ) | | (1,150,696,268 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (1,018,476 | ) | | 1,018,476 | | | 88,432,593 | | | 49,106,572 | |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 241,436,119 | | | 251,892,899 | | | 8,749,508,857 | | | 15,074,712,309 | |
Dividends reinvested | | | 763,955 | | | 2,969,176 | | | 49,195,597 | | | 108,056,590 | |
Value of shares redeemed | | | (204,829,869 | ) | | (250,722,067 | ) | | (9,095,986,169 | ) | | (13,570,728,999 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | 37,370,205 | | | 4,140,008 | | | (297,281,715 | ) | | 1,612,039,900 | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 10,918,406,690 | | | 16,058,465,472 | |
Dividends reinvested | | | — | | | — | | | 21,780,073 | | | 45,106,479 | |
Value of shares redeemed | | | — | | | — | | | (10,481,570,693 | ) | | (16,344,390,225 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | — | | | — | | | 458,616,070 | | | (240,818,274 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 317,735,093 | | | 175,769,011 | | | 3,223,953,850 | | | 5,261,868,061 | |
Dividends reinvested | | | 867,195 | | | 825,829 | | | 19,912,188 | | | 42,696,076 | |
Value of shares redeemed | | | (260,276,481 | ) | | (187,507,879 | ) | | (3,094,997,725 | ) | | (4,798,425,671 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares capital transactions | | | 58,325,807 | | | (10,913,039 | ) | | 148,868,313 | | | 506,138,466 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 94,699,327 | | $ | (5,754,555 | ) | $ | 300,122,156 | | $ | 1,982,137,166 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 32 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
All capital share transactions have been processed at a net asset value of $1.00 per share.
|
| | | | | | | | | | | | | |
| | New York Tax-Free
Money Market Fund | | Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 12,387,629 | | $ | 27,880,125 | | $ | 1,240,181 | | $ | 2,112,555 | |
Net realized gains (losses) from investment transactions | | | 20,130 | | | 4,817 | | | 716 | | | 26 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 12,407,759 | | | 27,884,942 | | | 1,240,897 | | | 2,112,581 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (1,039,183 | ) | | (3,816,004 | ) | | — | | | (51 | ) |
Class B Shares | | | (259 | ) | | (816 | ) | | — | | | — | |
Class C Shares | | | — | | | — | | | — | | | (104 | ) |
Class D Shares | | | (7,229,571 | ) | | (13,462,790 | ) | | (792,718 | ) | | (1,356,885 | ) |
Class Y Shares | | | (4,285,102 | ) | | (10,434,308 | ) | | (447,207 | ) | | (727,629 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (12,554,115 | ) | | (27,713,918 | ) | | (1,239,925 | ) | | (2,084,669 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 87,447,725 | | | 222,837,670 | | | 82,621,225 | | | (1,834,600 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 87,301,369 | | | 223,008,694 | | | 82,622,197 | | | (1,806,688 | ) |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 992,404,160 | | | 769,395,466 | | | 59,119,783 | | | 60,926,471 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 1,079,705,529 | | $ | 992,404,160 | | $ | 141,741,980 | | $ | 59,119,783 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (279 | ) | $ | 166,207 | | $ | 282 | | $ | 26 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
33 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
All capital share transactions have been processed at a net asset value of $1.00 per share.
|
| | | | | | | | | | | | | |
| | New York Tax-Free
Money Market Fund | | Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 138,281,113 | | $ | 239,851,195 | | $ | — | | $ | 636,790 | |
Dividends reinvested | | | 1,004,102 | | | 3,475,379 | | | — | | | 51 | |
Value of shares redeemed | | | (211,644,838 | ) | | (276,037,704 | ) | | — | | | (637,474 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (72,359,623 | ) | | (32,711,130 | ) | | — | | | (633 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Dividends reinvested | | | 259 | | | 798 | | | — | | | — | |
Value of shares redeemed | | | — | | | (21,856 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 259 | | | (21,058 | ) | | — | | | — | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | — | | | 108,846 | |
Dividends reinvested | | | — | | | — | | | — | | | 14 | |
Value of shares redeemed | | | — | | | — | | | — | | | (108,860 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | — | | | — | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 952,432,975 | | | 2,182,879,545 | | | 111,111,827 | | | 110,671,452 | |
Dividends reinvested | | | 6,264,812 | | | 11,952,900 | | | 160,993 | | | 332,852 | |
Value of shares redeemed | | | (774,692,889 | ) | | (2,015,682,505 | ) | | (72,615,856 | ) | | (119,339,588 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | 184,004,898 | | | 179,149,940 | | | 38,656,964 | | | (8,335,284 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 549,250,166 | | | 1,086,228,581 | | | 133,679,670 | | | 188,182,168 | |
Dividends reinvested | | | 3,051,922 | | | 7,182,631 | | | 94,083 | | | 26,952 | |
Value of shares redeemed | | | (576,499,897 | ) | | (1,016,991,294 | ) | | (89,809,492 | ) | | (181,707,803 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares capital transactions | | | (24,197,809 | ) | | 76,419,918 | | | 43,964,261 | | | 6,501,317 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 87,447,725 | | $ | 222,837,670 | | $ | 82,621,225 | | $ | (1,834,600 | ) |
| |
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| |
|
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|
| |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 34 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
All capital share transactions have been processed at a net asset value of $1.00 per share.
|
| | | | | | | | | | | | | |
| | U.S. Government
Money Market Fund | | U.S. Treasury
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 211,378,288 | | $ | 189,841,861 | | $ | 13,909,226 | | $ | 20,576,019 | |
Net realized gains (losses) from investment transactions | | | — | | | (1,018 | ) | | 147,911 | | | 139,929 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 211,378,288 | | | 189,840,843 | | | 14,057,137 | | | 20,715,948 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (14,649,243 | ) | | (71,043,425 | ) | | (1,379,021 | ) | | (3,084,367 | ) |
Class B Shares | �� | | (128 | ) | | (29 | ) | | (342 | ) | | (1,423 | ) |
Class C Shares | | | (3,222 | ) | | (8,895 | ) | | — | | | — | |
Class D Shares | | | (44,664,910 | ) | | (43,853,778 | ) | | (5,797,966 | ) | | (13,800,295 | ) |
Class I Shares | | | (14,944,680 | ) | | (9,829,013 | ) | | (2,995,152 | ) | | (581,597 | ) |
Class Y Shares | | | (137,591,166 | ) | | (64,575,625 | ) | | (3,763,925 | ) | | (3,098,850 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (211,853,349 | ) | | (189,310,765 | ) | | (13,936,406 | ) | | (20,566,532 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 7,829,719,371 | | | 6,273,956,981 | | | 1,982,737,518 | | | 76,089,402 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 7,829,244,310 | | | 6,274,487,059 | | | 1,982,858,249 | | | 76,238,818 | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 9,069,080,414 | | | 2,794,593,355 | | | 496,232,049 | | | 419,993,231 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 16,898,324,724 | | $ | 9,069,080,414 | | $ | 2,479,090,298 | | $ | 496,232,049 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | — | | $ | 475,061 | | $ | (602 | ) | $ | 26,578 | |
| |
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| |
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|
| |
|
| |
| | |
35 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets (continued) |
All capital share transactions have been processed at a net asset value of $1.00 per share.
|
| | | | | | | | | | | | | |
| | U.S. Government
Money Market Fund | | U.S. Treasury
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the
six months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,127,455,239 | | $ | 13,157,924,757 | | $ | 436,129,038 | | $ | 323,975,779 | |
Dividends reinvested | | | 14,649,057 | | | 71,043,019 | | | 1,379,021 | | | 3,084,367 | |
Value of shares redeemed | | | (1,397,347,828 | ) | | (13,425,627,497 | ) | | (304,618,694 | ) | | (310,583,467 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (255,243,532 | ) | | (196,659,721 | ) | | 132,889,365 | | | 16,476,679 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 16,778 | | | — | | | 30,047 | | | — | |
Dividends reinvested | | | 128 | | | 29 | | | 342 | | | 1,423 | |
Value of shares redeemed | | | (635 | ) | | — | | | (59,639 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 16,271 | | | 29 | | | (29,250 | ) | | 1,423 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 4,743,206 | | | 7,196,454 | | | — | | | — | |
Dividends reinvested | | | 2,534 | | | 8,895 | | | — | | | — | |
Value of shares redeemed | | | (2,801,565 | ) | | (6,777,555 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 1,944,175 | | | 427,794 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 14,111,972,313 | | | 9,801,176,211 | | | 2,523,499,345 | | | 1,024,267,661 | |
Dividends reinvested | | | 7,988,252 | | | 38,651,057 | | | 3,949,192 | | | 3,782,702 | |
Value of shares redeemed | | | (7,409,911,368 | ) | | (10,046,292,131 | ) | | (1,932,152,088 | ) | | (1,033,661,626 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | 6,710,049,197 | | | (206,464,863 | ) | | 595,296,449 | | | (5,611,263 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 4,576,461,984 | | | 2,230,388,261 | | | 1,156,745,017 | | | 143,911,760 | |
Dividends reinvested | | | 11,644,172 | | | 7,937,887 | | | 2,943,637 | | | 581,597 | |
Value of shares redeemed | | | (3,606,233,889 | ) | | (1,312,199,247 | ) | | (387,364,529 | ) | | (77,558,211 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | 981,872,267 | | | 926,126,901 | | | 772,324,125 | | | 66,935,146 | |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 18,854,428,192 | | | 13,496,500,181 | | | 1,247,677,384 | | | 712,980,472 | |
Dividends reinvested | | | 137,301,449 | | | 63,886,403 | | | 3,683,471 | | | 2,827,030 | |
Value of shares redeemed | | | (18,600,648,648 | ) | | (7,809,859,743 | ) | | (769,104,026 | ) | | (717,520,085 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares capital transactions | | | 391,080,993 | | | 5,750,526,841 | | | 482,256,829 | | | (1,712,583 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 7,829,719,371 | | $ | 6,273,956,981 | | $ | 1,982,737,518 | | $ | 76,089,402 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 36 |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | | | |
| | Net Asset | |
| |
| | | |
| | Value,
Beginning
of Period | | Net
Investment
Income | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends | | Net Asset
Value, End
of Period | |
| | | | | | | |
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|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007(d) | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | | $ | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007(e) | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | $ | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.03 | | | | 0.03 | | | | (0.03 | ) | | | (0.03 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.03 | | | | 0.03 | | | | (0.03 | ) | | | (0.03 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.03 | | | | 0.03 | | | | (0.03 | ) | | | (0.03 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.03 | | | | 0.03 | | | | (0.03 | ) | | | (0.03 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | | | 1.00 | | |
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| | | | | | | | | | | | | | | | | | | | |
| | | | Ratios/Supplementary Data | |
| | | |
| |
| | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007(d) | | | 0.00 | % | | $ | — | | | | 0.72 | % | | | 2.71 | % | | 0.87 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 0.00 | % | | | 22 | | | | 0.60 | % | | | 2.01 | % | | 0.76 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007(e) | | | 1.08 | % | | $ | 1,018 | | | | 1.22 | % | | | 2.41 | % | | 1.37 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 0.65 | % | | | 0 | ** | | | 1.21 | % | | | 1.62 | % | | 1.36 | % | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | 0.59 | % | | $ | 83,650 | | | | 0.51 | % | | | 0.60 | % | | 0.71 | % | |
Year Ended October 31, 2004 | | | 0.58 | % | | | 122,260 | | | | 0.52 | % | | | 0.59 | % | | 0.71 | % | |
Year Ended October 31, 2005 | | | 1.64 | %(f) | | | 132,649 | | | | 0.50 | %(f) | | | 1.64 | %(f) | | 0.65 | % | |
Year Ended October 31, 2006 | | | 2.73 | % | | | 86,686 | | | | 0.57 | % | | | 2.66 | % | | 0.72 | % | |
Year Ended October 31, 2007 | | | 3.09 | %(g) | | | 90,843 | | | | 0.50 | %(g) | | | 3.08 | %(g) | | 0.66 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.08 | % | | | 128,202 | | | | 0.45 | % | | | 2.00 | % | | 0.60 | % | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | 0.84 | % | | $ | 4,747 | | | | 0.27 | % | | | 0.78 | % | | 0.47 | % | |
Year Ended October 31, 2004 | | | 0.83 | % | | | 2,013 | | | | 0.27 | % | | | 0.82 | % | | 0.46 | % | |
Year Ended October 31, 2005 | | | 1.89 | %(f) | | | 43,722 | | | | 0.25 | %(f) | | | 2.04 | %(f) | | 0.40 | % | |
Year Ended October 31, 2006 | | | 2.98 | % | | | 43,114 | | | | 0.31 | % | | | 2.95 | % | | 0.46 | % | |
Year Ended October 31, 2007 | | | 3.35 | %(g) | | | 32,205 | | | | 0.24 | %(g) | | | 3.32 | %(g) | | 0.40 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.21 | % | | | 90,518 | | | | 0.19 | % | | | 2.25 | % | | 0.34 | % | |
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* | Less than $0.005 per share. |
| |
** | Less than $500. |
| |
(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
|
(b) | Annualized for periods less than one year. |
| |
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(d) | Class A Shares commenced operations on March 2, 2007 and was operational during a portion of the period only. Amounts reflect performance for the period of time the class had operations, which was 3 days during the period. |
| |
(e) | Class C Shares commenced operations on May 7, 2007 and was operation during a portion of the period only. Amounts reflect performance for the period of time the class had operations, which was 151 days during the period. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. There was no rounded impact to the net expense ratio, net income ratio or total return for Class D Shares and Class Y Shares. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.02% and 0.01% for Class D Shares and Class Y Shares, respectively. |
| | |
37 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR MONEY MARKET FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | | | |
| | Net Asset | |
| |
| | | |
| | Value,
Beginning
of Period | | Net
Investment
Income | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | ) * | | (0.00 | ) * | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | ) * | | (0.00 | ) * | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | ) * | | (0.00 | ) * | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | ) * | | (0.00 | ) * | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.04 | | | 0.04 | | | (0.04 | ) | | (0.04 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | 1.00 | | |
Year Ended October 31, 2005 | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | 1.00 | | |
Year Ended October 31, 2006 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Year Ended October 31, 2007 | | | 1.00 | | | 0.05 | | | 0.05 | | | (0.05 | ) | | (0.05 | ) | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | 1.00 | | |
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| | | | | | | | | | | | | | | | |
| | | | Ratios/Supplementary Data | |
| | | |
| |
| | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.70 | % | | $ | 326,320 | | 0.71 | % | | 0.71 | % | | 0.71 | % | |
Year Ended October 31, 2004 | | 0.57 | % | | | 301,384 | | 0.72 | % | | 0.56 | % | | 0.72 | % | |
Year Ended October 31, 2005 | | 2.17 | % | | | 243,772 | | 0.73 | % | | 2.10 | % | | 0.73 | % | |
Year Ended October 31, 2006 | | 4.24 | % | | | 415,514 | | 0.72 | % | | 4.20 | % | | 0.73 | % | |
Year Ended October 31, 2007 | | 4.77 | %(d) | | | 471,148 | | 0.67 | %(d) | | 4.68 | %(d) | | 0.70 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.72 | %(e) | | | 371,783 | | 0.67 | % | | 3.47 | % | | 0.67 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.29 | % | | $ | 299 | | 1.12 | % | | 0.29 | % | | 1.31 | % | |
Year Ended October 31, 2004 | | 0.23 | % | | | 195 | | 1.04 | % | | 0.23 | % | | 1.32 | % | |
Year Ended October 31, 2005 | | 1.56 | % | | | 88 | | 1.33 | % | | 1.40 | % | | 1.33 | % | |
Year Ended October 31, 2006 | | 3.61 | % | | | 109 | | 1.32 | % | | 3.60 | % | | 1.33 | % | |
Year Ended October 31, 2007 | | 4.14 | %(d) | | | 204 | | 1.27 | %(d) | | 4.07 | %(d) | | 1.30 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.42 | %(e) | | | 243 | | 1.27 | % | | 2.76 | % | | 1.27 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.30 | % | | $ | 153,124 | | 1.10 | % | | 0.30 | % | | 1.31 | % | |
Year Ended October 31, 2004 | | 0.23 | % | | | 170,451 | | 1.05 | % | | 0.23 | % | | 1.32 | % | |
Year Ended October 31, 2005 | | 1.56 | % | | | 195,246 | | 1.33 | % | | 1.54 | % | | 1.33 | % | |
Year Ended October 31, 2006 | | 3.61 | % | | | 268,071 | | 1.32 | % | | 3.59 | % | | 1.33 | % | |
Year Ended October 31, 2007 | | 4.14 | %(d) | | | 317,217 | | 1.27 | %(d) | | 4.08 | %(d) | | 1.30 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.42 | %(e) | | | 404,898 | | 1.27 | % | | 2.77 | % | | 1.27 | % | |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.85 | % | | $ | 825,998 | | 0.56 | % | | 0.84 | % | | 0.56 | % | |
Year Ended October 31, 2004 | | 0.72 | % | | | 1,013,427 | | 0.57 | % | | 0.72 | % | | 0.57 | % | |
Year Ended October 31, 2005 | | 2.32 | % | | | 1,351,695 | | 0.58 | % | | 2.36 | % | | 0.58 | % | |
Year Ended October 31, 2006 | | 4.39 | % | | | 2,098,413 | | 0.57 | % | | 4.38 | % | | 0.58 | % | |
Year Ended October 31, 2007 | | 4.92 | %(d) | | | 3,710,803 | | 0.52 | %(d) | | 4.83 | %(d) | | 0.55 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.79 | %(e) | | | 3,406,221 | | 0.52 | % | | 3.57 | % | | 0.52 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 1.22 | % | | $ | 3,116,473 | | 0.20 | % | | 1.19 | % | | 0.21 | % | |
Year Ended October 31, 2004 | | 1.09 | % | | | 2,777,675 | | 0.20 | % | | 1.07 | % | | 0.22 | % | |
Year Ended October 31, 2005 | | 2.71 | % | | | 1,476,725 | | 0.20 | % | | 2.55 | % | | 0.23 | % | |
Year Ended October 31, 2006 | | 4.79 | % | | | 2,111,147 | | 0.19 | % | | 4.70 | % | | 0.22 | % | |
Year Ended October 31, 2007 | | 5.33 | %(d) | | | 1,870,485 | | 0.14 | %(d) | | 5.21 | %(d) | | 0.21 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.98 | %(e) | | | 2,324,815 | | 0.16 | % | | 3.90 | % | | 0.17 | % | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 1.10 | % | | $ | 688,510 | | 0.31 | % | | 1.10 | % | | 0.31 | % | |
Year Ended October 31, 2004 | | 0.97 | % | | | 512,287 | | 0.32 | % | | 0.95 | % | | 0.32 | % | |
Year Ended October 31, 2005 | | 2.58 | % | | | 420,576 | | 0.33 | % | | 2.49 | % | | 0.33 | % | |
Year Ended October 31, 2006 | | 4.65 | % | | | 530,780 | | 0.32 | % | | 4.59 | % | | 0.33 | % | |
Year Ended October 31, 2007 | | 5.19 | %(d) | | | 1,036,994 | | 0.27 | %(d) | | 5.08 | %(d) | | 0.30 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.92 | %(e) | | | 1,183,592 | | 0.27 | % | | 3.80 | % | | 0.27 | % | |
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* | Less than $0.005 per share. |
| |
(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
|
(b) | Annualized for periods less than one year. |
| |
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(d) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.02%, 0.02%, 0.02%, 0.02%, 0.02% and 0.02% for Class A Shares, Class B Shares, Class C Shares, Class D Shares, Class I Shares and Class Y Shares, respectively. |
| |
(e) | During the period ended April 30, 2008, an affiliate of the Fund’s investment adviser issued a Capital Support Agreement to the Fund in connection with certain structured investment vehicle holdings (See Note 6). The corresponding impact of the value of the Capital Support Agreement as of April 30, 2008 to the total returns were 0.16%, 0.16%, 0.16%, 0.16%, 0.16%, 0.16% for Class A Shares, Class B Shares, Class C Shares, Class D Shares, Class I Shares, and Class Y Shares, respectively. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 38 |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | | | |
| | Net Asset
Value,
Beginning
of Period | | Investment Activities | | Dividends | | Net Asset
Value, End
of Period | |
| |
|
|
| | | Net
Investment
Income | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends | | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2004 (f) | | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | | 1.00 | | |
Year Ended October 31, 2005 (g) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Year Ended October 31, 2006 (g) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Year Ended October 31, 2007 (g) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) (g) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | | $ | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | $ | 1.00 | | |
Year Ended October 31, 2004 | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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| | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplementary Data | |
| | | | |
| |
| | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.46 | % | | | $ | 150,169 | | | 0.70 | % | | 0.46 | % | | 0.70 | % | |
Year Ended October 31, 2004 | | 0.40 | % | | | | 217,659 | | | 0.70 | % | | 0.42 | % | | 0.70 | % | |
Year Ended October 31, 2005 | | 1.46 | %(d) | | | | 128,218 | | | 0.70 | %(d) | | 1.38 | %(d) | | 0.71 | % | |
Year Ended October 31, 2006 | | 2.63 | % | | | | 153,523 | | | 0.70 | % | | 2.61 | % | | 0.70 | % | |
Year Ended October 31, 2007 | | 3.00 | %(e) | | | | 120,841 | | | 0.65 | %(e) | | 2.98 | %(e) | | 0.67 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.06 | % | | | | 48,467 | | | 0.64 | % | | 2.33 | % | | 0.64 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.27 | % | | | $ | 17 | | | 0.89 | % | | 0.27 | % | | 1.28 | % | |
Year Ended October 31, 2004 | | 0.26 | % | | | | 683 | | | 0.96 | % | | 0.26 | % | | 1.31 | % | |
Year Ended October 31, 2005 | | 0.85 | %(d) | | | | 228 | | | 1.29 | %(d) | | 0.77 | %(d) | | 1.31 | % | |
Year Ended October 31, 2006 | | 2.01 | % | | | | 55 | | | 1.30 | % | | 1.88 | % | | 1.30 | % | |
Year Ended October 31, 2007 | | 2.39 | %(e) | | | | 34 | | | 1.25 | %(e) | | 2.38 | %(e) | | 1.27 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 0.76 | % | | | | 35 | | | 1.23 | % | | 1.49 | % | | 1.23 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.06 | % | | | $ | 24 | | | 0.71 | % | | 0.26 | % | | 1.30 | % | |
Year Ended October 31, 2004 (f) | | 0.06 | % | | | | 0 | ** | | 0.78 | % | | 0.26 | % | | 1.29 | % | |
Year Ended October 31, 2005 (g) | | — | | | | | 0 | ** | | — | | | — | | | — | | |
Year Ended October 31, 2006 (g) | | — | | | | | 0 | ** | | — | | | — | | | — | | |
Year Ended October 31, 2007 (g) | | — | | | | | 0 | ** | | — | | | — | | | — | | |
Six Months Ended April 30, 2008 (Unaudited) (g) | | — | | | | | 0 | ** | | — | | | — | | | — | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.61 | % | | | $ | 201,277 | | | 0.55 | % | | 0.61 | % | | 0.55 | % | |
Year Ended October 31, 2004 | | 0.56 | % | | | | 171,151 | | | 0.55 | % | | 0.54 | % | | 0.55 | % | |
Year Ended October 31, 2005 | | 1.61 | %(d) | | | | 189,538 | | | 0.55 | %(d) | | 1.61 | %(d) | | 0.56 | % | |
Year Ended October 31, 2006 | | 2.78 | % | | | | 352,630 | | | 0.55 | % | | 2.78 | % | | 0.55 | % | |
Year Ended October 31, 2007 | | 3.16 | %(e) | | | | 531,864 | | | 0.50 | %(e) | | 3.14 | %(e) | | 0.52 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.13 | % | | | | 715,782 | | | 0.48 | % | | 2.18 | % | | 0.48 | % | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | 0.86 | % | | | $ | 167,776 | | | 0.30 | % | | 0.86 | % | | 0.30 | % | |
Year Ended October 31, 2004 | | 0.81 | % | | | | 98,260 | | | 0.30 | % | | 0.79 | % | | 0.30 | % | |
Year Ended October 31, 2005 | | 1.86 | %(d) | | | | 280,683 | | | 0.30 | %(d) | | 1.89 | %(d) | | 0.31 | % | |
Year Ended October 31, 2006 | | 3.04 | % | | | | 263,187 | | | 0.30 | % | | 2.99 | % | | 0.30 | % | |
Year Ended October 31, 2007 | | 3.42 | %(e) | | | | 339,665 | | | 0.25 | %(e) | | 3.39 | %(e) | | 0.27 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.26 | % | | | | 315,422 | | | 0.23 | % | | 2.43 | % | | 0.23 | % | |
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* | Less than $0.005 per share. |
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** | Less than $500. |
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(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
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(b) | Annualized for periods less than one year. |
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(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(d) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.01%, 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares, Class D Shares and Class Y Shares, respectively. |
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(e) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.02%, 0.02%, 0.02%, and 0.02% for Class A Shares, Class B Shares, Class D Shares, and Class Y Shares, respectively. |
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(f) | Class C Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 81 days during the period. |
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(g) | During the year ended, Class C Shares had no operations. Net assets at the end of the period represent seed money. |
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39 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
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HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | | | |
| | Net Asset
Value,
Beginning
of Period | | Investment Activities | | Dividends | | Net Asset
Value, End
of Period | |
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| Net
Investment
Income | | Total from
Investment
Activities | Net
Investment
Income | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2004 (d) | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2005 (e) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Year Ended October 31, 2006 (f) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 (g) | | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) (e) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007(h) | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) (l) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (i) | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (d) | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2005 (j) | | | | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | | 1.00 | | |
Year Ended October 31, 2006 (k) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Year Ended October 31, 2007(k) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) (k) | | | | 1.00 | | | — | | | — | | | — | | | — | | | | | 1.00 | | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(i) | | | $ | 1.00 | | | 0.00 | * | | 0.00 | * | | (0.00 | )* | | (0.00 | )* | | | $ | 1.00 | | |
Year Ended October 31, 2005 | | | | 1.00 | | | 0.02 | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | | | 1.00 | | |
Year Ended October 31, 2006 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Year Ended October 31, 2007 | | | | 1.00 | | | 0.03 | | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | | | 1.00 | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 1.00 | | | 0.01 | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | | | 1.00 | | |
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| | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplementary Data | |
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| | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2004 (d) | | 0.00 | % | | | $ | 0 | ** | | 0.44 | % | | 0.51 | % | | 2.12 | % | |
Year Ended October 31, 2005 (e) | | — | | | | | 0 | ** | | — | | | — | | | — | | |
Year Ended October 31, 2006 (f) | | 0.56 | % | | | | 1 | | | 1.06 | % | | 3.35 | % | | 1.49 | % | |
Year Ended October 31, 2007 (g) | | 0.18 | % | | | | — | | | 0.72 | % | | 2.96 | % | | 0.92 | % | |
Six Months Ended April 30, 2008 (Unaudited) (e) | | — | | | | | — | | | — | | | — | | | — | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007(h) | | 0.09 | % | | | $ | — | | | 1.34 | % | | 2.24 | % | | 1.54 | % | |
Six Months Ended April 30, 2008 (Unaudited) (l) | | — | | | | | — | | | — | | | — | | | — | | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (i) | | 0.23 | % | | | $ | 3,248 | | | 0.27 | % | | 1.34 | % | | 1.50 | % | |
Year Ended October 31, 2005 | | 1.60 | % | | | | 11,892 | | | 0.57 | % | | 1.71 | % | | 1.11 | % | |
Year Ended October 31, 2006 | | 2.77 | % | | | | 48,502 | | | 0.66 | % | | 2.76 | % | | 0.99 | % | |
Year Ended October 31, 2007 | | 3.04 | % | | | | 40,184 | | | 0.63 | % | | 3.04 | % | | 0.83 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.16 | % | | | | 78,842 | | | 0.49 | % | | 2.21 | % | | 0.69 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (d) | | 0.12 | % | | | $ | 0 | ** | | 0.00 | % | | 1.07 | % | | 1.80 | % | |
Year Ended October 31, 2005 (j) | | 0.15 | % | | | | 0 | ** | | 0.33 | % | | 2.11 | % | | 0.74 | % | |
Year Ended October 31, 2006 (k) | | — | | | | | — | | | — | | | — | | | — | | |
Year Ended October 31, 2007(k) | | — | | | | | — | | | — | | | — | | | — | | |
Six Months Ended April 30, 2008 (Unaudited) (k) | | — | | | | | — | | | — | | | — | | | — | | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(i) | | 0.50 | % | | | $ | 15,544 | | | 0.03 | % | | 1.27 | % | | 1.48 | % | |
Year Ended October 31, 2005 | | 1.86 | % | | | | 26,569 | | | 0.31 | % | | 1.86 | % | | 0.87 | % | |
Year Ended October 31, 2006 | | 3.02 | % | | | | 12,424 | | | 0.39 | % | | 2.92 | % | | 0.77 | % | |
Year Ended October 31, 2007 | | 3.30 | % | | | | 18,936 | | | 0.34 | % | | 3.31 | % | | 0.54 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | 1.29 | % | | | | 62,900 | | | 0.23 | % | | 2.45 | % | | 0.43 | % | |
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* | Less than $0.005 per share. |
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** | Less than $500. |
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(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
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(b) | Annualized for periods less than one year. |
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(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
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(d) | Class A Shares commenced operations on August 27, 2004 and was operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 5 days during the period. Class I Shares commenced operations on June 25, 2004 and were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 40 days during the period. |
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(e) | During the period, Class A shares had no operations. Net Assets at the end of the year represent seed money. |
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(f) | Class A Shares was operational during a portion of the year only. Amounts reflect performance for the period of the time the class had operations, which was 78 days during the period. |
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(g) | Class A Shares was operational during a portion of the period only. Amounts reflect performance for the period of the time the class had operations, which was 24 days during the period. |
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(h) | Class C Shares commenced operations on July 30, 2007 and was operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 15 days during the period. |
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(i) | Class D Shares commenced operations on August 24, 2004. Class Y Shares commenced operations on June 8, 2004. |
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(j) | Class I Shares were operational during a portion of the year only. Amounts reflect performance for the period of the time the class had operations, which was 27 days during the period. |
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(k) | During the period, Class I Shares had no operations. |
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(l) | During the period, Class C Shares had no operations. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 40 |
|
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Activities | | Dividends | |
| | | | | |
| |
|
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007 (e) | | $ | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (f) | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2005 (g) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2006 (h) | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2007 (i) | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
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| | | | | | | | Ratios/Supplementary Data | |
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| | Net Asset
Value, End
of Period | | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.53 | % | | $ | 606,108 | | | | 0.72 | % | | | 0.54 | % | | | 0.72 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.53 | % | | | 640,096 | | | | 0.73 | % | | | 0.53 | % | | | 0.73 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 2.09 | % | | | 725,469 | | | | 0.73 | % | | | 2.08 | % | | | 0.74 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.16 | % | | | 1,287,045 | | | | 0.72 | % | | | 4.13 | % | | | 0.73 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.63 | %(d) | | | 1,090,807 | | | | 0.65 | %(d) | | | 4.56 | %(d) | | | 0.70 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.46 | % | | | 835,519 | | | | 0.67 | % | | | 3.00 | % | | | 0.67 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.26 | % | | $ | 17 | | | | 0.98 | % | | | 0.26 | % | | | 1.34 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.28 | % | | | 17 | | | | 0.98 | % | | | 0.28 | % | | | 1.34 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 1.72 | % | | | 1 | | | | 1.32 | % | | | 1.10 | % | | | 1.32 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.29 | % | | | 1 | | | | 1.31 | % | | | 3.95 | % | | | 1.32 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.76 | %(d) | | | 1 | | | | 1.25 | %(d) | | | 4.01 | %(d) | | | 1.28 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.25 | % | | | 17 | | | | 1.27 | % | | | 1.98 | % | | | 1.27 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007 (e) | | $ | 1.00 | | | | 3.79 | %(d) | | $ | 428 | | | | 1.20 | %(d) | | | 3.78 | %(d) | | | 1.25 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.16 | % | | | 2,372 | | | | 1.27 | % | | | 1.65 | % | | | 1.27 | % | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.68 | % | | $ | 577,991 | | | | 0.57 | % | | | 0.66 | % | | | 0.57 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.68 | % | | | 517,500 | | | | 0.58 | % | | | 0.67 | % | | | 0.58 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 2.24 | % | | | 525,937 | | | | 0.58 | % | | | 2.21 | % | | | 0.59 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.32 | % | | | 967,456 | | | | 0.57 | % | | | 4.27 | % | | | 0.58 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.79 | %(d) | | | 761,155 | | | | 0.50 | %(d) | | | 4.66 | %(d) | | | 0.54 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.54 | % | | | 7,471,125 | | | | 0.52 | % | | | 2.65 | % | | | 0.52 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (f) | | $ | 1.00 | | | | 0.01 | % | | $ | 0 | ** | | | 0.20 | % | | | 0.93 | % | | | 0.21 | % | |
Year Ended October 31, 2005 (g) | | | 1.00 | | | | 0.73 | % | | | 0 | ** | | | 0.20 | % | | | 3.08 | % | | | 0.24 | % | |
Year Ended October 31, 2006 (h) | | | 1.00 | | | | 1.80 | % | | | 23,002 | | | | 0.17 | % | | | 5.08 | % | | | 0.23 | % | |
Year Ended October 31, 2007 (i) | | | 1.00 | | | | 4.99 | %(d) | | | 949,095 | | | | 0.15 | %(d) | | | 4.73 | %(d) | | | 0.17 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.72 | % | | | 1,930,940 | | | | 0.16 | % | | | 3.17 | % | | | 0.17 | % | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.94 | % | | $ | 382,645 | | | | 0.32 | % | | | 0.93 | % | | | 0.32 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.93 | % | | | 337,343 | | | | 0.32 | % | | | 0.91 | % | | | 0.32 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 2.50 | % | | | 465,996 | | | | 0.34 | % | | | 2.49 | % | | | 0.34 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.58 | % | | | 517,089 | | | | 0.32 | % | | | 4.49 | % | | | 0.33 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 5.05 | %(d) | | | 6,267,594 | | | | 0.26 | %(d) | | | 4.78 | %(d) | | | 0.28 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.66 | % | | | 6,658,352 | | | | 0.27 | % | | | 3.20 | % | | | 0.27 | % | |
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* | Less than $0.005 per share. |
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** | Less than $500. |
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(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
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(b) | Annualized for periods less than one year. |
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(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(d) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.03%, 0.03%, 0.02%, 0.02%, 0.00% and 0.01% for Class A Shares, Class B Shares, Class C Shares, Class D Shares, Class I Shares and Class Y Shares, respectively. |
| |
(e) | Class C Shares commenced operations on November 20, 2006 and were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 346 days during the period. |
| |
(f) | Class I Shares commenced operations on December 24, 2003 and was operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 10 days during the period. |
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(g) | Class I Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 89 days during the period. |
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(h) | Class I Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 136 days during the period. |
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(i) | Class I Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 357 days during the period. |
| | |
41 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR U.S. TREASURY MONEY MARKET FUND |
|
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated.
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | Investment Activities | | Dividends | |
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| |
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|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Total from
Investment
Activities | | Net
Investment
Income | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(e) | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.03 | | | | 0.03 | | | | (0.03 | ) | | | (0.03 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (f) | | $ | 1.00 | | | | 0.00 | * | | | 0.00 | * | | | (0.00 | )* | | | (0.00 | )* | |
Year Ended October 31, 2005 (g) | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
Year Ended October 31, 2005 | | | 1.00 | | | | 0.02 | | | | 0.02 | | | | (0.02 | ) | | | (0.02 | ) | |
Year Ended October 31, 2006 | | | 1.00 | | | | 0.04 | | | | 0.04 | | | | (0.04 | ) | | | (0.04 | ) | |
Year Ended October 31, 2007 | | | 1.00 | | | | 0.05 | | | | 0.05 | | | | (0.05 | ) | | | (0.05 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.01 | | | | 0.01 | | | | (0.01 | ) | | | (0.01 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data | |
| | | | | | | |
|
|
| | Net Asset
Value, End
of Period | | Total
Return(a) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average Net
Assets(b) | | Ratio of Net
Investment
Income to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.35 | % | | $ | 73,217 | | | | 0.77 | % | | | 0.38 | % | | | 0.80 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.39 | % | | | 85,882 | | | | 0.71 | % | | | 0.39 | % | | | 0.76 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 1.89 | % | | | 56,307 | | | | 0.76 | % | | | 1.84 | % | | | 0.76 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 3.74 | % | | | 67,861 | | | | 0.74 | % | | | 3.75 | % | | | 0.77 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.19 | %(d) | | | 84,355 | | | | 0.68 | %(d) | | | 4.09 | %(d) | | | 0.74 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.00 | % | | | 217,257 | | | | 0.68 | % | | | 1.85 | % | | | 0.69 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004(e) | | $ | 1.00 | | | | 0.04 | % | | $ | 38 | | | | 1.31 | % | | | 0.18 | % | | | 1.35 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 1.29 | % | | | 39 | | | | 1.36 | % | | | 1.28 | % | | | 1.36 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 3.12 | % | | | 40 | | | | 1.35 | % | | | 3.09 | % | | | 1.38 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 3.57 | %(d) | | | 41 | | | | 1.28 | %(d) | | | 3.51 | %(d) | | | 1.35 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 0.72 | % | | | 12 | | | | 1.26 | % | | | 1.35 | % | | | 1.26 | % | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.50 | % | | $ | 147,547 | | | | 0.62 | % | | | 0.46 | % | | | 0.66 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.54 | % | | | 208,633 | | | | 0.56 | % | | | 0.54 | % | | | 0.60 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 2.04 | % | | | 293,480 | | | | 0.62 | % | | | 2.08 | % | | | 0.62 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 3.90 | % | | | 302,637 | | | | 0.60 | % | | | 3.85 | % | | | 0.62 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.34 | %(d) | | | 297,120 | | | | 0.53 | %(d) | | | 4.28 | %(d) | | | 0.59 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.08 | % | | | 892,472 | | | | 0.52 | % | | | 1.87 | % | | | 0.53 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2004 (f) | | $ | 1.00 | | | | 0.02 | % | | $ | 0 | ** | | | 0.17 | % | | | 0.77 | % | | | 0.23 | % | |
Year Ended October 31, 2005 (g) | | | 1.00 | | | | 2.02 | % | | | 30,518 | | | | 0.20 | % | | | 2.62 | % | | | 0.26 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.37 | % | | | 6,521 | | | | 0.19 | % | | | 4.12 | % | | | 0.27 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.74 | %(d) | | | 73,460 | | | | 0.15 | %(d) | | | 4.38 | %(d) | | | 0.22 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.27 | % | | | 845,810 | | | | 0.16 | % | | | 1.82 | % | | | 0.17 | % | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2003 | | $ | 1.00 | | | | 0.75 | % | | $ | 31,199 | | | | 0.36 | % | | | 0.78 | % | | | 0.39 | % | |
Year Ended October 31, 2004 | | | 1.00 | | | | 0.79 | % | | | 172,704 | | | | 0.31 | % | | | 0.82 | % | | | 0.35 | % | |
Year Ended October 31, 2005 | | | 1.00 | | | | 2.30 | % | | | 47,804 | | | | 0.36 | % | | | 2.13 | % | | | 0.36 | % | |
Year Ended October 31, 2006 | | | 1.00 | | | | 4.16 | % | | | 42,934 | | | | 0.35 | % | | | 4.07 | % | | | 0.37 | % | |
Year Ended October 31, 2007 | | | 1.00 | | | | 4.60 | %(d) | | | 41,256 | | | | 0.27 | %(d) | | | 4.34 | %(d) | | | 0.32 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | 1.00 | | | | 1.21 | % | | | 523,539 | | | | 0.27 | % | | | 2.02 | % | | | 0.28 | % | |
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* | Less than $0.005 per share. |
| |
** | Less than $500. |
| |
(a) | Not annualized for periods less than one year. Total returns do not include redemption charges. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(d) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.01%, 0.01%, 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares, Class D Shares, Class I Shares and Class Y Shares, respectively. |
| |
(e) | Class B Shares commenced operations on August 13, 2004. |
| |
(f) | Class I Shares commenced operations on December 30, 2003 and were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 13 days during the period. |
| |
(g) | Class I Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 280 days during the period. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 42 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) |
| |
1. | Organization: |
| |
| HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of April 30, 2008, the Trust is comprised of 20 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial notes are presented for the following 6 funds (individually a “Fund,” collectively the “Funds”): |
| | | |
| Fund | | Short Name |
|
| |
|
| HSBC Investor California Tax-Free Money Market Fund | | California Tax-Free Money Market Fund |
| HSBC Investor Money Market Fund (Effective June 18, 2008,changed name to HSBC Prime Money Market Fund) | | Money Market Fund |
| HSBC Investor New York Tax-Free Money Market Fund | | N.Y. Tax-Free Money Market Fund |
| HSBC Investor Tax-Free Money Market Fund | | Tax-Free Money Market Fund |
| HSBC Investor U.S. Government Money Market Fund | | U.S. Government Money Market Fund |
| HSBC Investor U.S. Treasury Money Market Fund | | U.S Treasury Money Market Fund |
| |
| Each Fund except the N.Y. Tax-Free Money Market Fund are diversified funds under the Act. The N.Y. Tax-Free Money Market Fund is a non-diversified fund, which means they may concentrate their investments in the investments of a limited number of issuers. |
| |
| Financial statements for all other Funds of HSBC Investor Family of Funds are published separately. |
| |
| The Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. The Funds are authorized to issue five classes of shares: Class A Shares, Class B Shares, Class C Shares, Class D Shares, and Class Y Shares. In addition, the Money Market Fund, Tax-Free Money Market Fund, U.S. Government Money Market Fund and U.S. Treasury Money Market Fund are authorized to issue Class I Shares. The Class B Shares of the Funds are offered without any front-end sales charge but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. No sales charges are assessed with respect to Class A, Class D, Class I or Class Y Shares of the Funds. Each class of shares in each Fund has identical rights and privileges, except with respect to arrangements pertaining to shareholder servicing and/or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and exchange privileges. |
| |
| Under the Trust’s organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds may enter into contracts with its service providers, which also provide for indemnifications by the Funds. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote. |
| |
2. | Significant Accounting Policies: |
| |
| The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
| |
| Securities Valuation: |
| |
| Investments of the Funds are valued at amortized cost, which approximates fair value, except for securities covered by the Capital Support Agreement as discussed in note 6, which are reflected at fair value, and investments in other money market funds, which are priced at net asset value as reported by such companies. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security. |
| |
| Investment Transactions and Related Income: |
| |
| Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date. |
| |
| |
43 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
�� | Restricted and Illiquid Securities: |
| |
| A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the Investment Adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. |
| |
| At April 30, 2008 the HSBC Money Market Fund held restricted securities that were illiquid, representing 5.6% of net assets, as follows: |
| | | | | | | | | | |
| Security | | Acquisition
Date | | Amortized
Cost($) | | Principal
Amount($) | | Value($) | |
|
| |
| |
| |
| |
| |
| Money Market Fund | | | | | | | | | |
| K2 (USA) LLC, 2.52%, 6/20/08* | | 5/22/2007 | | 50,000,650 | | 50,000,000 | | 49,850,500 | |
| K2 (USA) LLC, 2.78%, 6/13/08* | | 6/12/2007 | | 80,000,452 | | 80,000,000 | | 79,812,800 | |
| Links Finance LLC, 2.50%, 6/20/08* | | 6/7/2007 | | 99,998,610 | | 100,000,000 | | 99,699,000 | |
| Stanfield Victoria Funding LLC, 0.00%, 1/25/08* | | 7/11/2007 | | 21,000,000 | | 21,000,000 | | 17,658,900 | |
| Stanfield Victoria Funding LLC, 0.00%, 3/3/08* | | 1/25/2007 | | 39,999,427 | | 40,000,000 | | 33,636,000 | |
| Stanfield Victoria Funding LLC, 0.00%, 7/15/08* | | 2/26/2007 | | 41,996,066 | | 42,000,000 | | 35,317,800 | |
| Whistlejacket Capital LLC, 0.00%, 5/15/08* | | 4/11/2007 | | 49,998,699 | | 50,000,000 | | 47,230,000 | |
| Whistlejacket Capital LLC, 0.00%, 6/23/08* | | 6/20/2007 | | 74,996,391 | | 75,000,000 | | 70,845,000 | |
| | |
|
|
| (*) | These holdings represent investments in structured investment vehicles (SIVs). The value of SIVs may be affected by, among other things, changes in: interest rates, the quality of the underlying assets or the market’s assessment thereof, factors concerning interests in and structure of the issuer or the originator of the receivables, or the creditworthiness of the entities that provide credit enhancements. SIVs have experienced significantly decreased liquidity as well as declines in the market value of certain categories of collateral underlying the SIVs. The Money Market Fund’s holdings in SIVs were previously determined to be liquid at the time of acquisition of such investments and have since been deemed to be illiquid due to the changes in market conditions. Management has considered these conditions in connection with the Money Market Fund’s ongoing compliance with Rule 2a-7 of the Investment Company Act of 1940. |
| |
| Repurchase Agreements: |
| |
| The Funds (except U.S. Treasury Money Market Fund) may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying Portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a fair value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Fund has the right to use the collateral to offset losses incurred. There is potential for loss to the Fund in the event the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Fund seeks to assert its rights. |
| |
| Allocations: |
| |
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the HSBC Investor Family of Funds in relation to the net assets of each Fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and realized and unrealized gains and losses in investments are allocated to each class of shares based on its relative net assets on a daily basis. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 44 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Dividends to Shareholders: |
| |
| Dividends from net investment income are declared daily and paid monthly from each Fund. Dividends from net realized gains, if any, are declared and paid at least annually by the Funds. Additional distributions are also made to the Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net realized gains of regulated investment companies. |
| |
| The character of net investment income and net realized gains distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences (e.g., wash losses and post-october loss deferrals) do not require reclassification. To the extent distributions from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. |
| |
| Federal Income Taxes: |
| |
| Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required. |
| |
| In addition, effective April 30, 2008, the Trusts’ adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations. |
| |
| New Accounting Pronouncements: |
| |
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements”(“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
| |
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Funds derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
| |
45 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
3. | Related Party Transactions |
| |
| Investment Management: |
| |
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc., effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the Funds. As Investment Adviser, HSBC manages the investments of the Funds and continuously reviews, supervises and administers the Funds’ investments pursuant to an Investment Advisory Agreement. For its services, HSBC receives a fee, accrued daily and paid monthly, based on the average daily net assets, at an annual rate of: |
| | | |
| Fund | | Fee Rate |
|
| |
|
| California Tax-Free Money Market Fund | | 0.10% |
| Money Market Fund | | 0.10% |
| N.Y. Tax-Free Money Market Fund | | 0.10% |
| Tax-Free Money Market Fund | | 0.10% |
| U.S. Government Money Market Fund | | 0.10% |
| U.S. Treasury Money Market Fund | | 0.10% |
| |
| HSBC also provides operational support services to the Funds pursuant to an Operational Support Services Agreement. For its services, HSBC receives a fee, accrued daily and paid monthly, based on the average daily net assets of Class A Shares, Class B Shares, Class C Shares, Class D Shares and Class Y Shares, at an annual rate of: |
| | | |
| Fund | | Fee Rate |
|
| |
|
| California Tax-Free Money Market Fund | | 0.10% |
| Money Market Fund | | 0.10% |
| N.Y. Tax-Free Money Market Fund | | 0.05% |
| Tax-Free Money Market Fund | | 0.10% |
| U.S. Government Money Market Fund | | 0.10% |
| U.S. Treasury Money Market Fund | | 0.10% |
| |
| Administration: |
| |
| HSBC serves the Funds as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Funds a fee, accrued daily and paid monthly, at an annual rate of: |
| | | |
| Based on Average Daily Net Assets of | | Fee Rate |
|
| |
|
| Up to $12 billion | | 0.0525% |
| In excess of $12 billion | | 0.035% |
| |
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each of the HSBC Investor Family of Funds based upon its pro-rata share of net assets for each class. |
| |
| The administration fees accrued for each class by fund, of which 50% of such fees are deemed to be class specific, are as follows: |
| | | | | | | | | | | | | | | | | | | | |
| | | California
Tax-Free
Money
Market Fund | | Money
Market Fund | | New York
Tax-Free
Money
Market Fund | | Tax-Free
Money
Market Fund | | U.S.
Government
Money
Market Fund | | U.S.
Treasury
Money
Market Fund | |
| | |
| |
| |
| |
| |
| |
| |
| Class A | | $ | 7 | | $ | 92,575 | | $ | 20,372 | | $ | — | | $ | 223,452 | | $ | 33,502 | |
| Class B | | | — | | | 48 | | | 9 | | | — | | | 4 | | | 13 | |
| Class C | | | 189 | | | 82,217 | | | — | | | — | | | 83 | | | — | |
| Class D | | | 23,769 | | | 838,864 | | | 148,990 | | | 16,329 | | | 745,052 | | | 140,182 | |
| Class I | | | — | | | 558,595 | | | — | | | — | | | 210,840 | | | 72,337 | |
| Class Y | | | 23,901 | | | 258,028 | | | 79,379 | | | 8,184 | | | 1,953,062 | | | 84,148 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Total | | $ | 47,866 | | $ | 1,830,327 | | $ | 248,750 | | $ | 24,513 | | $ | 3,132,493 | | $ | 330,182 | |
| | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
HSBC INVESTOR FAMILY OF FUNDS | 46 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trust’s sub-administrator, subject to the general supervision of the Funds’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. During the period ended April 30, 2008, HSBC reduced its administrative fees by $283,260. |
| |
| Under a Compliance Services Agreement between the Funds and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Funds’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008 plus reimbursement of certain expenses. Expenses incurred by each fund are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
| |
| Distribution Plan: |
| |
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, 1.00% and 0.25% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), Class C Shares (currently charging 0.75%) and Class D Shares (currently not being charged) of the Funds, respectively. Foreside, as Distributor, also received $405,635, $247,179 and $12,433 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares and Class C Shares, respectively, of which $396,664, $246,553 and $12,419 were reallowed to affiliated brokers and dealers for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
| Shareholder Servicing: |
| |
| The Trust has adopted a Shareholder Services Plan, formerly known as administrative services plan, which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee that is computed daily and paid monthly up to 0.60%, 0.25%, 0.25% and 0.25% of the average daily net assets of Class A Shares (currently charging 0.40%), Class B Shares, Class C Shares and Class D Shares of the Funds, respectively. The fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Shareholder Services Plan may not exceed, in the aggregate, 0.60%, 1.00%, 1.00% and 0.25% annually of each Fund’s average daily net assets of Class A Shares, Class B Shares, Class C Shares and Class D Shares, respectively. |
| |
| Fund Accounting, Transfer Agent and Trustee: |
| |
| Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent for the Funds, Citi Ohio receives a fee based on the number of Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant for the Funds, Citi Ohio receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses. |
| |
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
47 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| Fee Reductions: |
| |
| The Investment Adviser has agreed to contractually limit through March 1, 2009 the annual total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses, of the California Tax-Free Money Market Fund, Money Market Fund, U.S. Government Money Market Fund and U.S. Treasury Money Market Fund. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: |
| | | | | | | |
Fund | | Class | | Contractual
Expense
Limitations | |
| |
| |
| |
California Tax-Free Money Market Fund | | A | | | 0.80 | % | |
California Tax-Free Money Market Fund | | B | | | 1.40 | %* | |
California Tax-Free Money Market Fund | | C | | | 1.40 | % | |
California Tax-Free Money Market Fund | | D | | | 0.65 | % | |
California Tax-Free Money Market Fund | | Y | | | 0.40 | % | |
Money Market Fund | | I | | | 0.20 | % | |
U.S. Government Money Market Fund | | I | | | 0.20 | % | |
U.S. Treasury Money Market Fund | | I | | | 0.20 | % | |
| |
|
|
| * The California Tax-Free Money Market Fund Class B Shares have not commenced operations as of April 30, 2008. |
| |
| The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of the Funds. In addition, the Administrator and Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. |
| |
| |
4. | Concentration of Credit Risk: |
| |
| The California Tax-Free Money Market Fund and N.Y. Tax-Free Money Market Fund invest primarily in debt obligations issued by the State of California and the State of New York, respectively, and their respective political subdivisions, agencies and public authorities. The Funds are more susceptible to economic and political factors adversely affecting issuers of California and New York municipal securities than are municipal money market funds that are not concentrated in these issuers to the same extent. |
| |
5. | Federal Income Tax Information: |
| |
| At April 30, 2008, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows: |
| | | | | | | | | | | | | | | |
Fund | | Tax Cost | | Tax
Unrealized
Appreciation | | Tax
Unrealized
Depreciation | | Net Unrealized
Appreciation
(Depreciation) | |
| |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | 213,532,722 | | | $ | — | | | $ | — | | $ | — | |
Money Market Fund | | | 7,693,160,472 | | | | — | | | | (23,940,295 | ) | | (23,940,295 | ) |
New York Tax-Free Money Market Fund | | | 1,060,860,692 | | | | — | | | | — | | | — | |
Tax-Free Money Market Fund | | | 138,477,447 | | | | — | | | | — | | | — | |
U.S. Government Money Market Fund | | | 16,890,688,329 | | | | — | | | | — | | | — | |
U.S Treasury Money Market Fund | | | 2,636,514,420 | | | | — | | | | (54,143 | ) | | (54,143 | ) |
| |
HSBC INVESTOR FAMILY OF FUNDS | 48 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| The tax character of dividends paid by the Funds as of latest tax year ended of October 31, 2007 were as follows: |
| | | | | | | | | | | | | | | | | | |
| | Dividends paid from | |
| |
| |
| | Ordinary
Income | | Net
Long Term
Capital
Gains | | Total
Taxable
Dividends | | Tax
Exempt
Distributions | | Total
Dividends
Paid(1) | |
| |
| |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | 16,259 | | | $ | — | | | $ | 16,259 | | $ | 4,157,109 | | $ | 4,173,368 | |
Money Market Fund | | | 318,454,790 | | | | — | | | | 318,454,790 | | | — | | | 318,454,790 | |
New York Tax-Free Money Market Fund | | | 77,595 | | | | — | | | | 77,595 | | | 26,821,094 | | | 26,898,689 | |
Tax-Free Money Market Fund | | | 8,885 | | | | — | | | | 8,885 | | | 2,048,024 | | | 2,056,909 | |
U.S. Government Money Market Fund | | | 165,188,430 | | | | — | | | | 165,188,430 | | | — | | | 165,188,430 | |
U.S Treasury Money Market Fund | | | 20,779,844 | | | | — | | | | 20,779,844 | | | — | | | 20,779,844 | |
| |
| As of latest tax year ended October 31, 2007, the components of accumulated earnings/(deficit) on a tax basis for the Funds were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Undistributed
Ordinary
Income | | Undistributed
Tax Exempt
Income | | Undistributed
Long Term
Capital Gains | | Accumulated
Earnings | | Dividends
Payable(2) | | Accumulated
Capital
and Other
Losses | | Unrealized
Appreciation/
(Depreciation) | | Total
Accumulated
Earnings/
(Deficit) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | — | | $ | 350,991 | | | $ | — | | | $ | 350,991 | | $ | (329,787 | ) | $ | (24 | ) | | $ | — | | | $ | 21,180 | |
Money Market Fund | | | 29,412,342 | | | — | | | | — | | | | 29,412,342 | | | (28,698,357 | ) | | (274,023 | ) | | | — | | | | 439,962 | |
New York Tax-Free | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money Market Fund | | | — | | | 2,807,387 | | | | — | | | | 2,807,387 | | | (2,641,180 | ) | | (11,738 | ) | | | — | | | | 154,469 | |
Tax-Free | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money Market Fund | | | — | | | 185,731 | | | | — | | | | 185,731 | | | (185,705 | ) | | — | | | | — | | | | 26 | |
U.S. Government Money Market Fund | | | 35,201,198 | | | — | | | | — | | | | 35,201,198 | | | (34,726,137 | ) | | (2,170 | ) | | | — | | | | 472,891 | |
U.S Treasury Money Market Fund | | | 1,446,271 | | | — | | | | — | | | | 1,446,271 | | | (1,419,693 | ) | | (90,037 | ) | | | — | | | | (63,459 | ) |
| |
| The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings and any net capital loss carryforwards will be determined at the end of the current tax year ending October 31, 2008. |
| |
| As of the latest tax year ended of October 31, 2007, the following Funds have net capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders. |
| | | | | | | |
Fund | | Amount | | Expires | |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | 24 | | 2014 | | |
Money Market Fund | | | 59,832 | | 2012 | | |
| | | 12,537 | | 2013 | | |
| | | 3,997 | | 2014 | | |
| | | 197,657 | | 2015 | | |
N.Y. Tax-Free Money Market Fund | | | 11,738 | | 2010 | | |
U.S. Government Money Market Fund | | | 1,152 | | 2013 | | |
| | | 1,018 | | 2015 | | |
U.S. Treasury Money Market Fund | | | 49,137 | | 2013 | | |
| | | 40,900 | | 2014 | | |
| |
6. | Capital Support Agreement: |
| |
| The HSBC Investor Money Market Fund (the “Fund”) holds notes (the “Notes”) issued by certain structured investment vehicles (“SIVs”). In order to mitigate the negative impact of holding these SIVs in light of the ongoing credit conditions in the market, including the downgrade in credit rating for one of the holdings, on January 9, 2008, the Trust, on behalf of the Fund, entered into a Letter of Indemnity (as subsequently amended, the “Agreement”) with HSBC Group Investment Businesses Limited (“HGIB”), an affiliate to the Fund’s investment adviser, HSBC Investments (USA) Inc., pursuant to which HGIB agreed to provide capital support to the Fund under certain circumstances. |
| |
| The Agreement requires HGIB to contribute capital to the Fund, subject to an aggregate limit of $69 million, if as a result of realized losses on the Notes the Fund’s mark-to-market net asset value would drop below $0.9975. In such event, HGIB would pay to the Fund the lesser of the following amounts: (i) the amount of the loss realized on the Notes; (ii) the |
| |
49 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
| |
| amount, if any, necessary to restore the mark-to-market net asset value per share of the Fund to $0.9975, or (iii) the remaining amount of the aggregate limit under the Agreement, taking into account all prior contributions by HGIB. |
| |
| The Board of Trustees has determined that HGIB’s commitment under the Agreement is of comparable quality to a First Tier Security as defined in Rule 2a-7. |
| |
| The termination date of the Agreement is the earlier of: (i) the full payment in cash of all amounts due by the issuers of the Notes; (ii) the payment in cash by HGIB of all amounts due under the provisions of the Agreement; (iii) the determination that HGIB’s commitment under the Agreement no longer qualifies as a First Tier Security; or (iv) December 31, 2008. If the Fund continues to hold Notes on the December 31, 2008 termination date of the Agreement, the Fund will sell such Notes on the termination date if a sale would trigger a required capital payment from HGIB to the Fund under the provisions of the Agreement. Additionally, in the event that the Agreement terminates based on a determination by the Board that HGIB’s commitment under the Agreement no longer qualifies as a First Tier Security, the Fund will sell the Notes and HGIB will pay any amounts owed under the provisions of the Agreement. |
| |
| The following table summarizes the Notes and their amortized cost value, fair value, and unrealized depreciation as of April 30, 2008: |
| | | | | | | | | | | | | |
Description | | Principal
Amount($) | | Amortized
Cost($) | | Fair Value($) | | Unrealized
Depreciation($) | |
| |
| |
| |
| |
| |
K2 (USA) LLC, 2.52%, 6/20/08 | | | 50,000,000 | | | 50,000,650 | | | 49,850,500 | | (150,150 | ) | |
K2 (USA) LLC, 2.78%, 6/13/08 | | | 80,000,000 | | | 80,000,452 | | | 79,812,800 | | (187,652 | ) | |
Links Finance LLC, 2.50%, 6/20/08 | | | 100,000,000 | | | 99,998,610 | | | 99,699,000 | | (299,610 | ) | |
Stanfield Victoria Funding LLC, 0.00%, 1/25/08 | | | 21,000,000 | | | 21,000,000 | | | 17,658,900 | | (3,341,100 | ) | |
Stanfield Victoria Funding LLC, 0.00%, 3/3/08 | | | 40,000,000 | | | 39,999,427 | | | 33,636,000 | | (6,363,427 | ) | |
Stanfield Victoria Funding LLC, 0.00%, 7/15/08 | | | 42,000,000 | | | 41,996,066 | | | 35,317,800 | | (6,678,266 | ) | |
Whistlejacket Capital LLC, 0.00%, 5/15/08 | | | 50,000,000 | | | 49,998,699 | | | 47,230,000 | | (2,768,699 | ) | |
Whistlejacket Capital LLC, 0.00%, 6/23/08 | | | 75,000,000 | | | 74,996,391 | | | 70,845,000 | | (4,151,391 | ) | |
| | | | | | | | | | | | | |
In addition, the fair value of the Agreement was $12,596,944 as of April 30, 2008. | | | |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 50 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval—April 30, 2008 (Unaudited) |
| | |
| The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”). |
| | |
| In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others: |
| | |
| | Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
| | |
| | Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements. |
| |
51 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 |
As a shareholder of the HSBC Investor Funds (“Funds”), you incur two types of costs: (1) transaction costs, shareholder servicing fees; and exchange fees: (2) ongoing costs, including management fees; distribution; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds (“Funds”) and to compare the cost with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008.
Actual Example
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 – 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 – 4/30/08 | |
| | | |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | Class A Shares** | | $ 1,000.00 | | | $ 1,007.40 | | | $ 2.44 | | | 0.60 | % | |
| | Class C Shares*** | | 1,000.00 | | | 1,006.50 | | | 5.97 | | | 1.21 | % | |
| | Class D Shares | | 1,000.00 | | | 1,010.80 | | | 2.25 | | | 0.45 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,012.10 | | | 0.95 | | | 0.19 | % | |
Money Market Fund | | Class A Shares | | 1,000.00 | | | 1,017.20 | | | 3.36 | | | 0.67 | % | |
| | Class B Shares | | 1,000.00 | | | 1,014.20 | | | 6.36 | | | 1.27 | % | |
| | Class C Shares | | 1,000.00 | | | 1,014.20 | | | 6.36 | | | 1.27 | % | |
| | Class D Shares | | 1,000.00 | | | 1,017.90 | | | 2.61 | | | 0.52 | % | |
| | Class I Shares | | 1,000.00 | | | 1,019.80 | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,019.20 | | | 1.36 | | | 0.27 | % | |
New York Tax-Free Money Market Fund | | Class A Shares | | 1,000.00 | | | 1,010.60 | | | 3.20 | | | 0.64 | % | |
| | Class B Shares | | 1,000.00 | | | 1,007.60 | | | 6.14 | | | 1.23 | % | |
| | Class D Shares | | 1,000.00 | | | 1,011.30 | | | 2.40 | | | 0.48 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,012.60 | | | 1.15 | | | 0.23 | % | |
Tax-Free Money Market Fund | | Class D Shares | | 1,000.00 | | | 1,011.60 | | | 2.45 | | | 0.49 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,012.90 | | | 1.15 | | | 0.23 | % | |
U.S. Government Money Market Fund | | Class A Shares | | 1,000.00 | | | 1,014.60 | | | 3.36 | | | 0.67 | % | |
| | Class B Shares | | 1,000.00 | | | 1,012.50 | | | 6.35 | | | 1.27 | % | |
| | Class C Shares | | 1,000.00 | | | 1,011.60 | | | 6.35 | | | 1.27 | % | |
| | Class D Shares | | 1,000.00 | | | 1,015.40 | | | 2.61 | | | 0.52 | % | |
| | Class I Shares | | 1,000.00 | | | 1,017.20 | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,016.60 | | | 1.35 | | | 0.27 | % | |
U.S. Treasury Money Market Fund | | Class A Shares | | 1,000.00 | | | 1,010.00 | | | 3.40 | | | 0.68 | % | |
| | Class B Shares | | 1,000.00 | | | 1,007.20 | | | 6.29 | | | 1.26 | % | |
| | Class D Shares | | 1,000.00 | | | 1,010.80 | | | 2.60 | | | 0.52 | % | |
| | Class I Shares | | 1,000.00 | | | 1,012.70 | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | 1,000.00 | | | 1,012.10 | | | 1.35 | | | 0.27 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
** | Information shown reflects values using the expense ratios and rates of return for the period of operations from December 5, 2007 to April 30, 2008. |
| |
*** | Information shown reflects values using the ratios and rates of returns from November 1, 2007 to March 23, 2008 and from March 27, 2008 to April 30, 2008. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 52 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 – 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 – 4/30/08 | |
| | | |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | Class A Shares** | | | $ | 1,000.00 | | | | $ | 1,021.88 | | | | $ | 3.02 | | | 0.60 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,018.80 | | | | | 6.12 | | | 1.22 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,022.63 | | | | | 2.26 | | | 0.45 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.92 | | | | | 0.96 | | | 0.19 | % | |
Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.53 | | | | | 3.37 | | | 0.67 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,018.55 | | | | | 6.37 | | | 1.27 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,018.55 | | | | | 6.37 | | | 1.27 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,022.28 | | | | | 2.61 | | | 0.52 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.07 | | | | | 0.81 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.52 | | | | | 1.36 | | | 0.27 | % | |
New York Tax-Free Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.68 | | | | | 3.22 | | | 0.64 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,018.75 | | | | | 6.17 | | | 1.23 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,022.48 | | | | | 2.41 | | | 0.48 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.72 | | | | | 1.16 | | | 0.23 | % | |
Tax-Free Money Market Fund | | Class D Shares | | | | 1,000.00 | | | | | 1,022.43 | | | | | 2.46 | | | 0.49 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.72 | | | | | 1.16 | | | 0.23 | % | |
U.S. Government Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.53 | | | | | 3.37 | | | 0.67 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,018.55 | | | | | 6.37 | | | 1.27 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,018.55 | | | | | 6.37 | | | 1.27 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,022.28 | | | | | 2.61 | | | 0.52 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.07 | | | | | 0.81 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.52 | | | | | 1.36 | | | 0.27 | % | |
U.S. Treasury Money
Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,021.48 | | | | | 3.42 | | | 0.68 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,018.60 | | | | | 6.32 | | | 1.26 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,022.28 | | | | | 2.61 | | | 0.52 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.07 | | | | | 0.81 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.52 | | | | | 1.36 | | | 0.27 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
** | Information shown reflects values using the expense ratios for the 148 days of operations during the period for California Tax-Free Money Market Fund Class A shares, and has been annualized to reflect values for the period November 1, 2007 to April 30, 2008. |
| |
53 | HSBC INVESTOR FAMILY OF FUNDS |
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities is available without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders or on the Fund’s website at www.investorfunds.us.hsbc.com and the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. A copy of the Fund’s voting record for the most recent 12 month period ending June 30 is available at the Commission’s website at http://www.sec.gov.
Schedules of Portfolio Investments for fiscal quarters ending January 31 and July 31 will be available no later than 60 days after each period end, without charge, on the Fund’s website at www.investorfunds.us.hsbc.com and on the Commission’s website at http://www.sec.gov.
An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
| |
HSBC INVESTOR FAMILY OF FUNDS | 54 |
| |
HSBC INVESTOR FAMILY OF FUNDS: | CUSTODIAN |
| The Northern Trust Company |
INVESTMENT ADVISER AND ADMINISTRATOR | 50 South LaSalle Street |
HSBC Investments (USA) Inc. | Chicago, IL 60603 |
452 Fifth Avenue | |
New York, NY 10018 | INDEPENDENT REGISTERED |
Effective June 2, 2008, changed name to | PUBLIC ACCOUNTING FIRM |
HSBC Global Asset Management (USA) Inc. | KPMG LLP |
| 191 West Nationwide Blvd. |
SHAREHOLDER SERVICING AGENTS | Suite 500 |
For HSBC Bank USA, N.A. and | Columbus, OH 43215 |
HSBC Securities (USA) Inc. Clients: | |
HSBC Bank USA, N.A. | LEGAL COUNSEL |
452 Fifth Avenue | Dechert LLP |
New York, NY 10018 | 1775 I Street, NW |
1-888-525-5757 | Washington, D.C. 20006 |
| |
For All Other Shareholders: | |
HSBC Investor Funds | |
P.O. Box 182845 | |
Columbus, OH 43218-2845 | |
1-800-782-8183 | |
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TRANSFER AGENT AND SPONSOR | |
Citi Fund Services | |
3435 Stelzer Road | |
Columbus, OH 43219 | |
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DISTRIBUTOR | |
Foreside Distribution Services, L.P. | |
3435 Stelzer Road | |
Columbus, OH 43219 | |
The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.
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—NOT FDIC INSURED | — NO BANK GUARANTEE | — MAY LOSE VALUE |
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HSB-0009 | | 04/08 |
Semi-Annual Report
HSBC Investor LifeLine FundsTM
LifeLine
It’s simple.
It’s easy.
It’s affordable
April 30, 2008
HSBC Investor Aggressive
Growth Strategy Fund
HSBC Investor Growth
Strategy Fund
HSBC Investor Moderate
Growth Strategy Fund
HSBC Investor Conservative
Growth Strategy Fund
HSBC Investor LifeLine Funds
[This Page Intentionally Left Blank.]
Citigroup U.S. Domestic Three Month Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.
Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States.
Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.
Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The Russell Universe - Russell is a recognized leader in consulting, multi-manager investing and institutional investment management. Our consultants advise clients on more than $2 trillion in assets. We deliver investment programs to over 2,000 clients in 44 countries. With more than $230 billion in assets in our funds, Russell researchers meet with over 4,000 investment managers around the world to evaluate their investment process.
Russell MidCap® Growth Index is an unmanaged index which measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.
Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Fund do not match those in the indexes and performance of the Fund will differ. Investors cannot invest directly in an index.
Dear Shareholder:
In a period of market volatility, mutual funds offer a “hedge” against extremes. Since the purpose of mutual funds is to provide a balance of investments and since fund advisers monitor performance of individual holdings in a portfolio, investors are generally protected against extremes. Over the long run, mutual funds have continued to be a wise investment.
The HSBC Investor Funds have performed in accordance with the swings of the equities and fixed income markets. Many of the HSBC Investor Funds have outperformed their industry benchmarks, most have equaled the benchmark and a few underperformed. Management and the board monitor performance continuously. While any Fund can underperform for a limited period of time, Funds that continue to underperform are put on a watch list, and if a downtrend continues, the board and management will re-evaluate the subadviser relationship.
With over 12 trillion dollars invested, mutual funds remain one of the best ways to sustain both value and growth of a portfolio. The diversity of the HSBC Fund Family provides a useful way to ride the wave of volatility. Please consult your financial adviser to determine the best mix of funds for your individual needs. We encourage you to be active in overseeing your own investments and welcome your comments about how we can provide the best service to you.
Thanks,
Larry M. Robbins, Chairman, HSBC Investor Funds
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1 | HSBC INVESTOR FAMILY OF FUNDS |
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Commentary From the Investment Manager |
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HSBC Investments (USA) Inc.
Effective June 2, 2008, changed name to HSBC Global Asset Management (USA) Inc.
Economic review
Several factors weighed on the U.S. economy during the six-month period between November 1, 2007 and April 30, 2008. The ongoing decline in the housing market depressed activity in industries related both directly and indirectly to the housing market, including homebuilders, home improvement retailers and furniture makers. The housing slump also made it more difficult for consumers to borrow against their home equity. That development weakened consumer spending, even as rising prices on food and energy and a flagging employment picture caused Americans to cut back. Consumer spending accounts for more than two-thirds of U.S. economic activity. Therefore, the consumer slowdown posed a significant threat to economic growth.
The housing slump also contributed to rising defaults on subprime mortgages. Higher subprime mortgage defaults led to losses for securities backed by these low-quality home loans, which had become widely dispersed throughout the global financial system in recent years. Losses in subprime mortgage-backed securities forced a number of financial firms to write-down the value of their holdings by billions of dollars. Moreover, market participants became concerned about the possible extent of problems related to weak mortgages. Lenders, concerned that they could not accurately gauge prospective borrowers’ financial health, became extremely cautious about extending credit, resulting in a severe credit crunch that depressed economic growth.
The Federal Reserve Board (the “Fed”) acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed reduced the federal funds rate, its target short-term interest rate, from 4.50% to 2.00% during the six month period ended April 30, 2008 in order to inject liquidity into the financial markets. It also orchestrated a buyout of troubled securities firm Bear Stearns, to prevent problems at the company from undermining the broad financial system. The Fed also sought to improve financial institutions’ access to credit by accepting a wider variety of assets as collateral.
Exports helped the U.S. economy continue to expand despite the difficult environment during the early months of 2008. A weakening dollar made U.S. companies’ products and services more competitive overseas, while increasing the value of revenues earned in foreign currencies. The U.S. Gross Domestic Product1 grew at annualized rates of 0.6% during the fourth quarter of 2007 and 0.9% during the first quarter of 2008.
The U.S. economy’s struggles led to signs of a global slowdown. Growth in Europe appeared to weaken, and evidence emerged that developing economies, which have generated powerful growth in recent years, were beginning to feel the effects of America’s problems as well. For example, China’s year-over-year exports grew 22.5% in December 2007, but just 6.5% in February 2008. Nevertheless, the global economy remained healthy and continued to expand more quickly than the U.S. economy during this period.
Market review
Investors during most of this six-month period responded to the uncertain economic environment by fleeing from the perceived risk of stocks and into the perceived safety of high-quality bonds. U.S. stock returns were exceptionally volatile during this time, as the lack of clarity about the direction of the economy; the subprime crisis and the credit crunch caused traders to react aggressively in response to emerging data. The U.S. market recovered somewhat between mid-March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. For the six month period ended April 30, 2008, the S&P 500 returned -9.63%, while the small-cap sector as represented by the Russell 2000® Index returned -12.92%.
Financial stocks suffered some of the U.S. market’s greatest declines, as shareholders sold financial stocks due to concerns about large write-downs and the potential for further damage from the subprime mortgage crisis. Stocks in the financial sector rebounded modestly toward the end of the period, as bargain-hunting investors began to believe that the market had priced in the worst of the subprime crisis.
Consumer discretionary stocks also performed poorly during this period, as investors worried that high food and energy prices and a weaker employment picture would reduce the money individuals had available to spend on non-essential items. Conversely, energy and materials stocks benefited from rising commodity prices, and posted some of the market’s strongest returns during this period.
Foreign stocks generally posted losses, with the MSCI EAFE Index of developed foreign stock markets returning -8.99% during the period under review. Investors sold foreign stocks due to a general aversion to risk and because of concerns about the repercussions from the turmoil in the credit markets. Emerging markets in Asia, which had performed exceptionally well in recent years, particularly struggled as investors sold assets they perceived to be risky. Developing markets in other parts of the world meanwhile held up relatively well, as they benefited from rising commodity prices.
Investors concerned about risk piled into bonds issued by the U.S. Treasury and foreign governments. Yields declined and prices rose on government bonds, causing the spread between the yield on government securities and corporate bonds to widen substantially. High-yield bonds—debt issued by companies with relatively weak finances—trailed other sectors of the fixed-income market, as investors favored the greater stability of higher-quality bonds. The Lehman Brothers U.S. Aggregate Index, which tracks the broad fixed-income market, returned 4.08% for the six months through April 30, 2008.
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1 | For additional information, please refer to the Glossary of Terms. | |
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| HSBC INVESTOR FAMILY OF FUNDS | 2 |
HSBC Investor Aggressive Growth Strategy Fund
HSBC Investor Growth Strategy Fund
HSBC Investor Moderate Growth Strategy Fund
HSBC Investor Conservative Growth Strategy Fund
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk, than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of the Fund will fluctuate as the value of the securities in the portfolio changes.
Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Small capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure and historically have experienced a greater degree of market volatility than average. There are risks associated with investing in a fund that invests in securities of foreign countries, such as erratic market conditions, economic and political instabilities and fluctuations in currency exchanges.
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00.
The HSBC Investor Funds feature a number of funds that are structured as ‘‘master/feeder’’ funds. Under this two-tier structure, one fund (the “feeder fund’’) invests all of its investable assets in a second fund (the ‘‘master fund’’). The LifeLine Funds, through this master/feeder structure, provide an asset allocation option to investors who seek to diversify their investment across a variety of asset classes. Each LifeLine Fund provides an asset allocation option corresponding to different investment objectives and risk tolerances. Each LifeLine Fund is a feeder fund. However, unlike most feeder funds, a LifeLine Fund will not direct all of its assets to a single master fund. Instead, the LifeLine Fund will allocate its assets to different master funds in accordance with its asset allocation model. HSBC Investments (USA) Inc. (the ‘‘Adviser’’), according to specific target allocations, invested each LifeLine Fund’s assets in some or all of the following master funds (‘‘underlying Portfolios’’):
HSBC Investor Growth Portfolio (‘‘Growth Portfolio’’); HSBC Investor Value Portfolio (‘‘Value Portfolio’’); HSBC Investor Opportunity Portfolio (‘‘Opportunity Portfolio’’); HSBC Investor International Equity Portfolio (‘‘International Equity Portfolio’’); HSBC Investor Core Plus Fixed Income Portfolio (‘‘Core Plus Fixed Income Portfolio’’); HSBC Investor High Yield Fixed Income Portfolio (High Yield Fixed Income Fund); HSBC Investor Intermediate Duration Fixed Income Portfolio (‘‘Intermediate Duration Fixed Income Portfolio’’); and the HSBC Investor Money Market Fund (‘‘Money Market Fund’’).
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3 | HSBC INVESTOR FAMILY OF FUNDS |
During the last period, each LifeLine Fund invested in a different combination of the underlying Portfolios according to the various target percentage weightings selected by the Adviser, approximately as set forth in the charts below.
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Underlying Portfolio | | HSBC Investor
Aggressive Growth
Strategy
Fund | | HSBC Investor
Growth
Strategy
Fund | | HSBC Investor
Moderate Growth
Strategy
Fund | | HSBC Investor
Conservative Growth
Strategy
Fund | |
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Money Market Fund | | 1 | % | | 1 | % | | 6 | % | | 21 | % | |
Core Plus Fixed Income Portfolio | | None | | | 15 | % | | 26 | % | | 25 | % | |
High Yield Fixed Income Portfolio | | None | | | 2 | % | | 5 | % | | 8 | % | |
Intermediate Duration Fixed Income Portfolio | | None | | | None | | | None | | | 3 | % | |
Growth Portfolio | | 21 | % | | 21 | % | | 19 | % | | 15 | % | |
International Equity Portfolio | | 23 | % | | 20 | % | | 15 | % | | 10 | % | |
Opportunity Portfolio | | 34 | % | | 20 | % | | 11 | % | | 4 | % | |
Value Portfolio | | 21 | % | | 21 | % | | 18 | % | | 14 | % | |
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Total: | | 100 | % | | 100 | % | | 100 | % | | 100 | % | |
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HSBC INVESTOR FAMILY OF FUNDS | 4 |
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Portfolio Reviews |
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HSBC Investor Aggressive Growth Strategy Fund |
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Fund Performance | | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Aggressive Growth Strategy Fund Class A1 | | 2/14/05 | | | -12.30 | | -1.80 | | 12.73 | | 10.32 | | | 2.27 | | 1.50 | |
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HSBC Investor Aggressive Growth Strategy Fund Class B2 | | 2/9/05 | | | -11.48 | | -1.26 | | 13.30 | | 11.05 | | | 3.02 | | 2.25 | |
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HSBC Investor Aggressive Growth Strategy Fund Class C3 | | 6/9/05 | | | -8.90 | | 1.63 | | — | | 12.63 | | | 3.02 | | 2.25 | |
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Standard & Poor’s 500 Index5 | | — | | | -9.63 | | -4.68 | | 8.22 | | N/A | | | N/A | | N/A | |
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Aggressive Growth Blended Portfolio Index5 | | — | | | -9.89 | | -3.36 | | 11.51 | | N/A | | | N/A | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Aggressive Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (34%) and the MSCI EAFE Index (23%). These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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5 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Growth Strategy Fund |
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Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Growth Strategy Fund Class A1 | | 2/8/05 | | | -11.74 | | -3.26 | | 10.21 | | 9.02 | | | 1.65 | | 1.50 | |
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HSBC Investor Growth Strategy Fund Class B2 | | 2/1/05 | | | -10.95 | | -2.73 | | 10.76 | | 10.00 | | | 2.40 | | 2.25 | |
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HSBC Investor Growth Strategy Fund Class C3 | | 4/27/05 | | | -8.30 | | 0.20 | | 11.33 | | 11.26 | | | 2.40 | | 2.25 | |
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Standard & Poor’s 500 Index5 | | — | | | -9.63 | | -4.68 | | 8.22 | | N/A | | | N/A | | N/A | |
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Growth Blended Portfolio Index5 | | — | | | -7.46 | | -1.75 | | 10.26 | | N/A | | | N/A | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Lehman Brothers U.S. Aggregate Index (15%); Citigroup U.S. High Yield Market Capped Index (2%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (20%) and the MSCI EAFE Index (20%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 2% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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HSBC INVESTOR FAMILY OF FUNDS | 6 |
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Portfolio Reviews |
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HSBC Investor Moderate Growth Strategy Fund |
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Fund Performance | | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Moderate Growth Strategy Fund
Class A1 | | 2/3/05 | | | -10.56 | | -3.86 | | 7.81 | | 6.76 | | | 1.60 | | 1.50 | |
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HSBC Investor Moderate Growth Strategy Fund
Class B2 | | 2/1/05 | | | -9.76 | | -3.31 | | 8.25 | | 7.58 | | | 2.35 | | 2.25 | |
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HSBC Investor Moderate Growth Strategy Fund
Class C3 | | 6/9/05 | | | -7.04 | | -0.45 | | — | | 8.05 | | | 2.35 | | 2.25 | |
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Standard & Poor’s 500 Index5 | | — | | | -9.63 | | -4.68 | | 8.22 | | N/A | | | N/A | | N/A | |
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Moderate Growth Blended Portfolio Index5 | | — | | | -5.02 | | -0.13 | | 8.84 | | N/A | | | N/A | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Moderate Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (6%); Citigroup U.S. High Yield Market Capped Index (5%); Lehman Brothers U.S. Aggregate Index (26%); Russell 1000® Growth Index (19%); Russell 1000® Value Index (18%); Russell 2500™ Growth Index (11%) and the MSCI EAFE Index (15%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 5% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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7 | HSBC INVESTOR FAMILY OF FUNDS |
HSBC Investor Conservative Growth Strategy Fund
| | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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As of April 30, 2008 | | Inception
Date | | Six
Month† | | 1
Year | | 3
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Conservative Growth Strategy Fund Class A1 | | 2/23/05 | | -8.93 | | -4.10 | | 5.62 | | 4.80 | | 2.06 | | 1.50 | |
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HSBC Investor Conservative Growth Strategy Fund Class B2 | | 2/17/05 | | -8.30 | | -3.50 | | 6.09 | | 5.28 | | 2.81 | | 2.25 | |
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HSBC Investor Conservative Growth Strategy Fund Class C3 | | 4/19/05 | | -5.43 | | -0.13 | | 7.05 | | 6.80 | | 2.81 | | 2.25 | |
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Standard & Poor’s 500 Index5 | | — | | -9.63 | | -4.68 | | 8.22 | | N/A | | N/A | | N/A | |
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Conservative Growth Blended Portfolio Index5 | | — | | -2.71 | | 1.26 | | 7.50 | | N/A | | N/A | | N/A | |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Conservative Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic 3-Month T-Bill Index (21%); Citigroup U.S. High Yield Market Capped Index (8%); Lehman Bros. U.S. Aggregate Index (25%); Lehman Bros. U.S. Interm. Aggregate Index (3%); Russell 1000® Growth Index (15%); Russell 1000® Value Index (14%); Russell 2500™ Growth Index (4%) and the MSCI EAFE Index (10%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects an 8% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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HSBC INVESTOR FAMILY OF FUNDS | 8 |
| | | |
Standardized Performance Benchmark Indices for the
period ended April 30, 2008 | | 1
Year (%) | |
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| |
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index | | 3.90 | |
Citigroup U.S. High Yield Market Capped Index | | 0.08 | |
Lehman Brothers U.S. Aggregate Index | | 6.87 | |
Lehman Brothers Intermediate U.S. Aggregate Index | | 7.07 | |
MSCI EAFE Index | | -1.31 | |
Russell 1000® Growth Index | | -0.23 | |
Russell 1000® Value Index | | -8.97 | |
Russell 2500™ Growth Index | | -3.56 | |
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.
Citigroup U.S. High Yield Market Capped Index uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of the investment-grade debt issues with at least one year to final maturity.
Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE) is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
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9 | HSBC INVESTOR FAMILY OF FUNDS |
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HSBC Investor Money Market Fund
| Moody’s and Standard & Poor’s has assigned an “Aaa” and “AAAm” rating to the HSBC Investor Money Market Fund.1 |
by John Chiodi
Senior Portfolio Manager |
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The HSBC Investor Money Market Fund seeks to provide, shareholders of the Fund, with liquidity and as high a level of current income as is consistent with the preservation of capitol.
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The money markets experienced a turbulent environment during the six-month period under review, as rising defaults on subprime mortgages brought on a credit and liquidity crisis. The Federal Reserve Board (the “Fed”) attempted to address the financial system’s problems by lowering its target short-term interest rate from 4.50% to 2.00% between November 2007 and April 2008, causing yields on money market securities to decline.
We sought to protect shareholders’ principal in this uncertain environment. In particular, we held securities with relatively short maturities throughout the period—sacrificing a bit of yield in exchange for greater liquidity. In typical Fed easing cycles, we often extend the Fund’s maturity to lock in higher yields; but we felt that the turbulence in the money markets during this time called for a more cautious approach. We did seek strategic opportunities to capture higher yields on longer-term securities as the markets settled somewhat late in the period.*
We also looked to safeguard shareholder assets by holding relatively small positions in asset-backed commercial paper. Again, this strategy reduced the Fund’s yield, but provided greater security as the credit and liquidity crisis roiled the money markets.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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HSBC INVESTOR FAMILY OF FUNDS | 10 |
|
Portfolio Reviews |
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HSBC Investor Core Plus Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team |
The HSBC Investor Core Plus Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Market Commentary
The Portfolio held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Portfolio’s emphasis on other sectors weighed on relative returns.
Security selection also reduced the Portfolio’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
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* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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11 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor High Yield Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., High Yield Team |
The HSBC Investor High Yield Fixed Income Portfolio (the “Portfolio”) seeks to provide a high level of current income and capital appreciation. HSBC Investments (USA) Inc. serves as investment adviser to the Fund. The HSBC High Yield Team provides the day to day management of the portfolio. The Team’s philosophy is focused on delivering sustainable value added performance in the high yield fixed income market. The investment approach is a combination of top-down sector/ industry selection and bottom-up security/quality selection. The team rotates sectors and themes within the high yield universe during different market environments seeking to add value, endeavoring to take advantage of market inefficiencies in order to outperform in both up and down markets. Halbis Capital Management (USA) Inc. is the subadviser to the Core Plus Fixed Income Portfolio.
Investment Concerns
Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. High yield bonds are subject to greater risks than investment grade bonds, such as the increased risk of default because of the lower credit quality of the issues.
Market Commentary
High-yield bond performance was volatile during the period under review, as investors tried to gauge the likely repercussions of the economic slowdown and the credit crunch. The Fund generated gains during three of the six months in this period ended April 30, 2008, and posted losses during the other three months.
The Fund held an overweight allocation to the energy sector. The relatively large position in energy lifted returns against the benchmark, as energy companies benefited from surging oil and gas prices. We also held underweight positions in the homebuilding and building products industries. Bonds issued by companies in those industries generally performed poorly due to the ongoing slump in the housing market, so the Fund’s smaller-than-benchmark stakes helped its performance against the index.*
A relatively large position in bonds of gaming companies hurt the Fund’s relative return. Consumers facing higher food and energy prices cut back on discretionary entertainment, thereby depressing revenues at these firms and causing their bonds to trade lower. The Fund held a smaller stake than the benchmark in bonds rated BBB, the lowest tier of the investment-grade bond universe, which also weighed on relative performance. BBB-rated bonds posted the benchmark’s strongest returns for the six month period as a whole, despite intermittent strength from lower-quality bonds.*
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* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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HSBC INVESTOR FAMILY OF FUNDS | 12 |
|
Portfolio Reviews |
|
HSBC Investor Intermediate Duration Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team |
The HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Market Commentary
The Fund held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Fund’s emphasis on other sectors weighed on relative returns.
Security selection also reduced the Fund’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
| |
* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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13 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor Growth Portfolio |
by Philip J. Sanders, Senior Vice President/Portfolio Manager, CFA and |
Daniel P. Becker, Senior Vice President/Portfolio Manager, CFA |
Waddell & Reed Investment Management Company |
The HSBC Investor Growth Portfolio (the “Portfolio”) seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the sub-adviser believes have the potential to generate superior levels of long-term profitability and growth. Effective May 12, 2008, Winslow Capital Management, Inc. replaced Waddell & Reed Investment Management Company (Waddell & Reed) as the sub-adviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
The subprime mortgage crisis evolved into a credit and liquidity crisis during this period. Those developments had a substantially adverse impact on stocks of all sizes, both the U.S. and foreign markets.
The Fund benefited from strong stock selection relative to its benchmark. Security selection added to relative returns in four of the eight economic sectors in which the Fund invested during the period. In particular, certain holdings in the materials and energy sectors boosted the Fund and helped to outperform its benchmark. Overweight positions in the health care and industrials sectors also helped relative performance.*
The Fund’s positions in the information technology, consumer discretionary and financial sectors detracted from relative performance over the period, largely due to stock selection. Growth-oriented technology stocks generally were weak during the period, likely due to a faltering economy and cutbacks in technology spending. Consumer discretionary holdings were hurt by investors’ concerns that high-energy costs, a plunging housing market and a weakening employment picture would undermine consumer spending. Financial stocks suffered due to investors’ worries about the possible extent of the subprime mortgage crisis.*
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* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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HSBC INVESTOR FAMILY OF FUNDS | 14 |
HSBC Investor International Equity Portfolio
by Kevin F. Simms
Co-CIO International Value Equities and Director of Research – Global and International Value Equities
AllianceBernstein Investment Research and Management
The HSBC Investor International Equity Portfolio (the “Portfolio”) seeks to provide their shareholders with long-term growth of capital and future income by investing at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. The Portfolio may invest up to 20% of its assets in equity securities of companies in emerging markets. The Portfolio employs AllianceBernstein L.P. (“AllianceBernstein”), a unit of AllianceBernstein Investment Research and Management as subadviser.
The Portfolio invests primarily in equity securities of companies organized and domiciled in developed nations outside the U.S., or for which the principal trading market is outside the U.S., including Europe, Canada, Australia and the Far East.
Investment Concerns
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
Investor worries about slowing global economic growth and further repercussions from the subprime mortgage crisis dominated financial markets during the period, contributing to the Fund’s negative performance. In addition, record oil prices weighed on investor sentiment. Central banks adopted more accommodative monetary policies, lowering interest rates and pumping money into the banking system. Global stocks fell sharply near the end of the period, as a major U.S. investment- banking firm neared bankruptcy.
The Fund’s sector selection enhanced relative returns, due primarily to overweight positions in shares of industrial commodities and energy firms. Security selection in the technology and utilities sectors also added to relative returns.*
Security selection hurt the Fund’s relative performance. Selection of stocks in the capital equipment and industrial commodities sectors particularly weighed on returns relative to the index. Key detractors from performance included shares of a large U.K. mortgage lender, which declined amid investor perceptions of deteriorating conditions in the country’s housing market. Meanwhile, stocks of French capital equipment companies in the Fund’s portfolio were hurt by weakening consumer confidence and rising raw materials costs.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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15 | HSBC INVESTOR FAMILY OF FUNDS |
HSBC Investor Opportunity Portfolio
by William A. Muggia
President–Chief Investment Officer
Westfield Capital Management, LLC
The HSBC Investor Opportunity Fund (“the Fund”) seeks to provide its shareholders with long-term growth of capital investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Funds employ a two-tier structure, commonly referred to as “master-feeder.” The Funds invest all of their investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management, LLC as subadviser.
The Portfolio invests primarily in common stocks of small and medium-sized companies that may have the potential to become major enterprises.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Market Commentary
Myriad macroeconomic ills plagued U.S. investors during the period. A downturn in the U.S. economy, increasing inflationary pressures and continuing tumult in the banking system weighed on the financial markets. Despite an unprecedented campaign of fiscal and monetary measures designed to alleviate the economy’s various troubles, U.S. equities posted double-digit losses across multiple economic sectors. Energy was the only economic sector to end of the six-month period in the positive territory in both the small- and mid-cap universes.
The Fund’s outperformance of its benchmark was driven in large part by healthcare, energy, and technology shares. In particular, the performance of the Fund’s health care allocation benefited from positive stock selection within pharmaceuticals, health care equipment and biotechnology. Rising crude oil prices boosted energy stocks, helping them advance to record-high levels during the first months of 2008. An overweight position in the energy sector enhanced relative results, as did selection of certain domestic natural gas and equipment and services stocks. Selection among information technology stocks boosted relative performance, in part because the Fund’s valuation discipline helped it to avoid holding some of the stocks that posted the sector’s weakest returns.*
The biggest drag on relative performance came from financials. While we believe the portfolios limited exposure to this troubled sector should have been a source of good performance, weakness in certain positions hampered the aggregate results of the Fund’s financial-sector allocation. Industrials also restrained the Fund’s results. Declines among shares of trading companies and distributors particularly weighed on returns.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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HSBC INVESTOR FAMILY OF FUNDS | 16 |
HSBC Investor Value Portfolio
by Jon D. Bosse, CFA
Chief Investment Officer
NWQ Investment Management Company, LLC
The HSBC Investor Value Portfolio (the “Portfolio”) seeks long-term growth of capital and income by investing primarily in U.S. and foreign companies with large and medium capitalizations that the sub-adviser believes possess opportunities underappreciated or misperceived by the market. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as the subadviser.
Investment Concerns
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
Equity markets declined, both in the United States and worldwide, due to concerns about the outlook for the global economy and the unprecedented deterioration in the credit markets. Value stocks generally outperformed growth stocks, while U.S. equity markets demonstrated tremendous volatility. Stock prices appreciated materially near the end of the period—particularly among financial stocks—following the Federal Reserve’s aggressive actions to lower key interest rates.
The Fund’s absolute return was enhanced by strong performance from energy shares. Energy stocks performed well due to appreciation in oil prices and increasing production profiles. Select stocks in the steel and transportation industries also contributed to the Fund’s absolute return. The Fund’s exposure to the financial sector negatively influenced performance, as uncertainty about the extent of the problems related to the subprime mortgage crisis adversely affected stock prices within the sector.*
Although the Fund’s underweight position in the lagging financial sector helped performance relative to the index, selection among financial stocks caused the Fund’s allocation to that sector to weigh on relative returns. All but one of the Fund’s financial holdings declined in value during the period. An overweight position in the technology sector also hurt performance against the index, as technology shares were weighed down by concerns that continued economic weakness could lead to reduced corporate and consumer technology spending.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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17 | HSBC INVESTOR FAMILY OF FUNDS |
Portfolio Reviews
Portfolio Composition*
April 30, 2008
(Unaudited)
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HSBC Investor Core Plus Fixed Income Portfolio | | | |
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Investment Allocation | | Percentage of Investments at Value |
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Corporate Bonds | | 27.6 | % |
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Mortgage Backed Securities | | 23.5 | % |
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U.S. Treasury Securities | | 13.9 | % |
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Commercial Mortgage Backed Securities | | 10.3 | % |
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Cash and Equivalents | | 9.4 | % |
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Asset Backed Securities | | 7.8 | % |
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Collateralized Mortgage Obligations | | 5.0 | % |
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Foreign Bond | | 2.5 | % |
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| | 100.0 | % |
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HSBC Investor High Yield Fixed Income Portfolio | | |
|
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Investment Allocation | | Percentage of Investments at Value |
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Corporate Bonds | | 98.0 | % |
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Cash and Equivalents | | 2.0 | % |
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| | 100.0 | % |
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HSBC Investor Intermediate Duration Fixed Income Portfolio | | | |
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Investment Allocation | | Percentage of Investments at Value |
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Mortgage Backed Securities | | 27.0 | % |
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Corporate Bond | | 26.5 | % |
|
|
|
|
U.S. Treasury Securities | | 11.4 | % |
|
|
|
|
Commercial Mortgage Backed Securities | | 10.0 | % |
|
|
|
|
Asset Backed Securities | | 7.5 | % |
|
|
|
|
Cash and Equivalents | | 7.5 | % |
|
|
|
|
Collateralized Mortgage Obligations | | 6.3 | % |
|
|
|
|
Foreign Bond | | 3.8 | % |
|
|
|
|
| | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Growth Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Information Technology | | 18.7 | % |
|
|
|
|
Health Care | | 18.0 | % |
|
|
|
|
Industrials | | 20.2 | % |
|
|
|
|
Consumer Staples | | 11.2 | % |
|
|
|
|
Consumer Discretionary | | 4.9 | % |
|
|
|
|
Financials | | 7.7 | % |
|
|
|
|
Energy | | 9.5 | % |
|
|
|
|
Materials | | 4.4 | % |
|
|
|
|
Cash and Equivalents | | 5.4 | % |
|
|
|
|
| | 100.0 | % |
|
|
|
|
| | | |
HSBC International Equity Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Europe | | 65.2 | % |
|
|
|
|
Japan | | 21.8 | % |
|
|
|
|
Australia & Far East | | 6.1 | % |
|
|
|
|
Canada | | 4.8 | % |
|
|
|
|
Other | | 1.5 | % |
|
|
|
|
Cash and Equivalents | | 0.6 | % |
|
|
|
|
| | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Opportunity Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Health Care | | 23.4 | % |
|
|
|
|
Information Technology | | 17.2 | % |
|
|
|
|
Industrials | | 15.3 | % |
|
|
|
|
Energy | | 15.2 | % |
|
|
|
|
Consumer Discretionary | | 12.6 | % |
|
|
|
|
Business Services | | 7.4 | % |
|
|
|
|
Cash and Equivalents | | 4.6 | % |
|
|
|
|
Financials | | 2.2 | % |
|
|
|
|
Consumer Staples | | 2.1 | % |
|
|
|
|
| | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Value Portfolio | | | |
|
|
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Financials | | 19.6 | % |
|
|
|
|
Energy | | 14.1 | % |
|
|
|
|
Industrials | | 11.3 | % |
|
|
|
|
Information Technology | | 10.4 | % |
|
|
|
|
Consumer Discretionary | | 9.0 | % |
|
|
|
|
Consumer Staples | | 7.1 | % |
|
|
|
|
Materials | | 6.8 | % |
|
|
|
|
Health Care | | 5.4 | % |
|
|
|
|
Cash | | 5.3 | % |
|
|
|
|
Telecommunication Services | | 4.8 | % |
|
|
|
|
Miscellaneous | | 3.1 | % |
|
|
|
|
Transportation | | 3.1 | % |
|
|
|
|
| | 100.0 | % |
|
|
|
|
| |
* | Portfolio composition is subject to change. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 18 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Assets and Liabilities—As of April 30, 2008 (Unaudited)
| | | | | | | | | | | | | |
| | Aggressive
Growth
Strategy Fund | | Growth
Strategy
Fund | | Moderate
Growth
Strategy Fund | | Conservative
Growth
Strategy Fund | |
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 12,998,297 | | $ | 35,731,904 | | $ | 37,004,533 | | $ | 9,933,873 | |
Investments in Affiliated Fund, at value (a) | | | 132,515 | | | 363,050 | | | 2,369,397 | | | 2,645,842 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investments | | | 13,130,812 | | | 36,094,954 | | | 39,373,930 | | | 12,579,715 | |
| |
|
| |
|
| |
|
| |
|
| |
Receivable for capital shares issued | | | 22,857 | | | 34,897 | | | 59,449 | | | 1,307 | |
Receivable from Investment Adviser | | | 3,769 | | | — | | | — | | | 2,071 | |
Prepaid expenses and other assets | | | 6,134 | | | 6,134 | | | 7,056 | | | 8,728 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 13,163,572 | | | 36,135,985 | | | 39,440,435 | | | 12,591,821 | |
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | |
Payable for capital shares redeemed | | | 531 | | | 66,875 | | | 24,004 | | | 11,760 | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | |
Investment Management | | | 520 | | | 1,440 | | | 1,578 | | | 502 | |
Administration | | | 382 | | | 1,091 | | | 1,188 | | | 396 | |
Distribution | | | 3,369 | | | 9,100 | | | 11,459 | | | 3,554 | |
Shareholder Servicing | | | 2,607 | | | 7,233 | | | 7,943 | | | 2,525 | |
Compliance Service | | | 11 | | | 31 | | | 32 | | | 9 | |
Transfer Agent | | | 6,624 | | | 7,895 | | | 9,016 | | | 5,432 | |
Other | | | 10,419 | | | 31,408 | | | 33,161 | | | 4,764 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 24,463 | | | 125,073 | | | 88,381 | | | 28,942 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 13,139,109 | | $ | 36,010,912 | | $ | 39,352,054 | | $ | 12,562,879 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Composition of Net Assets: | | | | | | | | | | | | | |
Capital | | $ | 12,146,866 | | $ | 33,772,682 | | $ | 37,846,953 | | $ | 12,389,609 | |
Accumulated net investment income (loss) | | | (23,390 | ) | | 74,634 | | | 41,787 | | | 17,428 | |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | 29,165 | | | 98,475 | | | 16,875 | | | (30,877 | ) |
Unrealized appreciation/(depreciation) from investments and foreign currencies | | | 986,468 | | | 2,065,121 | | | 1,446,439 | | | 186,719 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 13,139,109 | | $ | 36,010,912 | | $ | 39,352,054 | | $ | 12,562,879 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Class A Shares | | $ | 7,478,662 | | $ | 20,849,206 | | $ | 20,210,881 | | $ | 6,643,434 | |
Class B Shares | | | 5,151,842 | | | 13,763,390 | | | 17,190,086 | | | 5,416,432 | |
Class C Shares | | | 508,605 | | | 1,398,316 | | | 1,951,087 | | | 503,013 | |
| |
|
| |
|
| |
|
| |
|
| |
| | $ | 13,139,109 | | $ | 36,010,912 | | $ | 39,352,054 | | $ | 12,562,879 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Shares Outstanding | | | | | | | | | | | | | |
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | | | | |
Class A Shares | | | 555,390 | | | 1,618,819 | | | 1,696,658 | | | 595,815 | |
Class B Shares | | | 391,526 | | | 1,069,915 | | | 1,443,155 | | | 490,417 | |
Class C Shares | | | 38,674 | | | 108,228 | | | 167,751 | | | 44,331 | |
| | | | | | | | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | | | | |
Class A Shares | | $ | 13.47 | | $ | 12.88 | | $ | 11.91 | | $ | 11.15 | |
Class B Shares* | | $ | 13.16 | | $ | 12.86 | | $ | 11.91 | | $ | 11.04 | |
Class C Shares* | | $ | 13.15 | | $ | 12.92 | | $ | 11.63 | | $ | 11.35 | |
Maximum Sales Charge — Class A Shares | | | 5.00 | % | | 5.00 | % | | 5.00 | % | | 5.00 | % |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Maximum Offering Price per share (Net Asset Value/ (100% — maximum sales charge)) — Class A Shares | | $ | 14.18 | | $ | 13.56 | | $ | 12.54 | | $ | 11.74 | |
| |
|
| |
|
| |
|
| |
|
| |
Investments in Affiliated Fund, at cost (a) | | $ | 132,515 | | $ | 363,050 | | $ | 2,369,397 | | $ | 2,645,842 | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
* | Redemption Price per share varies by length of time shares are held. |
| |
(a) | The investment in the affiliated fund are holdings of the HSBC Investor Money Market Fund Class I Shares (see Note 1). The shares held in the Fund are identical to value since it is at $1.00 net asset value per share. In addition, value and cost for financial reporting and federal income tax purposes are the same. |
| | |
19 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited)
| | | | | | | | | | | | | |
| | Aggressive
Growth
Strategy Fund | | Growth
Strategy
Fund | | Moderate
Growth
Strategy Fund | | Conservative
Growth
Strategy Fund | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | |
Investment Income from Affiliated Portfolios (a) | | $ | 93,125 | | $ | 414,544 | | $ | 561,054 | | $ | 180,852 | |
Investment Income from Affiliated Fund | | | 2,401 | | | 6,888 | | | 44,410 | | | 48,940 | |
Foreign tax withholding from Affiliated Portfolios (a) | | | (4,784 | ) | | (11,696 | ) | | (9,592 | ) | | (2,031 | ) |
Expenses from Affiliated Portfolios (a) | | | (44,185 | ) | | (120,668 | ) | | (121,467 | ) | | (33,014 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 46,557 | | | 289,068 | | | 474,405 | | | 194,747 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | |
Investment Management | | | 3,004 | | | 8,605 | | | 9,318 | | | 2,957 | |
Administration | | | 1,371 | | | 3,929 | | | 4,253 | | | 1,350 | |
Distribution: | | | | | | | | | | | | | |
Class B Shares | | | 17,807 | | | 48,771 | | | 60,277 | | | 18,540 | |
Class C Shares | | | 1,807 | | | 4,567 | | | 6,805 | | | 1,725 | |
Shareholder Servicing: | | | | | | | | | | | | | |
Class A Shares | | | 8,483 | | | 25,244 | | | 24,227 | | | 8,030 | |
Class B Shares | | | 5,936 | | | 16,257 | | | 20,092 | | | 6,180 | |
Class C Shares | | | 603 | | | 1,522 | | | 2,268 | | | 575 | |
Accounting | | | 11,688 | | | 11,688 | | | 11,688 | | | 11,688 | |
Compliance Service | | | 32 | | | 93 | | | 100 | | | 32 | |
Printing | | | 8,997 | | | 25,467 | | | 27,565 | | | 9,955 | |
Professional | | | 214 | | | 609 | | | 664 | | | 1,473 | |
Transfer Agent | | | 24,790 | | | 35,475 | | | 37,785 | | | 20,002 | |
Trustee | | | 69 | | | 198 | | | 212 | | | 67 | |
Registration | | | 45 | | | 132 | | | 140 | | | 38 | |
Other | | | 4,249 | | | 4,011 | | | 6,819 | | | 2,056 | |
| |
|
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 89,095 | | | 186,568 | | | 212,213 | | | 84,668 | |
Fees reduced by Investment Adviser | | | (23,607 | ) | | — | | | — | | | (8,773 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Net Expenses | | | 65,488 | | | 186,568 | | | 212,213 | | | 75,895 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | (18,931 | ) | | 102,500 | | | 262,192 | | | 118,852 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | | | | |
Net realized gains (losses) from investment and foreign currency transactions | | | 29,266 | | | 93,688 | | | 16,159 | | | (30,181 | ) |
Change in unrealized appreciation/(depreciation) from investments and foreign currencies | | | (970,751 | ) | | (2,831,034 | ) | | (2,581,701 | ) | | (616,679 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains (losses) from investment transactions and foreign currencies | | | (941,485 | ) | | (2,737,346 | ) | | (2,565,542 | ) | | (646,860 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | (960,416 | ) | $ | (2,634,846 | ) | $ | (2,303,350 | ) | $ | (528,008 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
| | |
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 20 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets
| | | | | | | | | | | | | |
| | Aggressive Growth Strategy Fund | | Growth Strategy Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (18,931 | ) | $ | (35,215 | ) | $ | 102,500 | | $ | 155,873 | |
Net realized gains (losses) from investment transactions | | | 29,266 | | | 810,981 | | | 93,688 | | | 1,888,561 | |
Change in unrealized appreciation/ (depreciation) from investments | | | (970,751 | ) | | 1,335,250 | | | (2,831,034 | ) | | 3,251,636 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (960,416 | ) | | 2,111,016 | | | (2,634,846 | ) | | 5,296,070 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | (137,881 | ) | | (91,507 | ) |
Class B Shares | | | — | | | — | | | (1,258 | ) | | (11,110 | ) |
Class C Shares | | | — | | | — | | | (816 | ) | | (784 | ) |
| | | | | | | | | | | | | |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (422,050 | ) | | — | | | (1,103,525 | ) | | (94,565 | ) |
Class B Shares | | | (304,154 | ) | | — | | | (702,526 | ) | | (64,734 | ) |
Class C Shares | | | (31,418 | ) | | — | | | (63,975 | ) | | (5,227 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (757,622 | ) | | — | | | (2,009,981 | ) | | (267,927 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 2,341,587 | | | 3,061,815 | | | 4,125,902 | | | 9,652,802 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 623,549 | | | 5,172,831 | | | (518,925 | ) | | 14,680,945 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 12,515,560 | | | 7,342,729 | | | 36,529,837 | | | 21,848,892 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 13,139,109 | | $ | 12,515,560 | | $ | 36,010,912 | | $ | 36,529,837 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (23,390 | ) | $ | (4,459 | ) | $ | 74,634 | | $ | 112,089 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
21 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Aggressive Growth Strategy Fund | | Growth Strategy Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,306,132 | | $ | 2,836,042 | | $ | 2,882,849 | | $ | 7,969,359 | |
Dividends reinvested | | | 421,632 | | | — | | | 1,235,211 | | | 185,652 | |
Value of shares redeemed | | | (346,221 | ) | | (1,111,410 | ) | | (1,849,801 | ) | | (2,339,143 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 1,381,543 | | | 1,724,632 | | | 2,268,259 | | | 5,815,868 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 754,601 | | | 1,516,999 | | | 1,654,478 | | | 4,252,061 | |
Dividends reinvested | | | 303,827 | | | — | | | 701,613 | | | 75,546 | |
Value of shares redeemed | | | (152,550 | ) | | (405,168 | ) | | (775,105 | ) | | (1,033,237 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 905,878 | | | 1,111,831 | | | 1,580,986 | | | 3,294,370 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 68,788 | | | 328,562 | | | 316,245 | | | 768,456 | |
Dividends reinvested | | | 31,418 | | | — | | | 64,791 | | | 6,011 | |
Value of shares redeemed | | | (46,040 | ) | | (103,210 | ) | | (104,379 | ) | | (231,903 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 54,166 | | | 225,352 | | | 276,657 | | | 542,564 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 2,341,587 | | $ | 3,061,815 | | $ | 4,125,902 | | $ | 9,652,802 | |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 97,686 | | | 206,802 | | | 221,710 | | | 599,873 | |
Reinvested | | | 30,686 | | | — | | | 93,719 | | | 14,632 | |
Redeemed | | | (26,239 | ) | | (81,057 | ) | | (146,342 | ) | | (173,704 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | 102,133 | | | 125,745 | | | 169,087 | | | 440,801 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 57,157 | | | 112,606 | | | 129,274 | | | 318,815 | |
Reinvested | | | 22,556 | | | — | | | 53,152 | | | 5,949 | |
Redeemed | | | (11,858 | ) | | (29,929 | ) | | (60,450 | ) | | (77,193 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 67,855 | | | 82,677 | | | 121,976 | | | 247,571 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 5,402 | | | 24,063 | | | 25,229 | | | 56,478 | |
Reinvested | | | 2,334 | | | — | | | 4,890 | | | 471 | |
Redeemed | | | (3,632 | ) | | (7,943 | ) | | (8,273 | ) | | (17,406 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 4,104 | | | 16,120 | | | 21,846 | | | 39,543 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 22 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Moderate Growth Strategy Fund | | Conservative Growth Strategy Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 262,192 | | $ | 409,400 | | $ | 118,852 | | $ | 168,893 | |
Net realized gains (losses) from investments transactions | | | 16,159 | | | 1,499,302 | | | (30,181 | ) | | 267,881 | |
Change in unrealized appreciation/depreciation from investments | | | (2,581,701 | ) | | 2,609,124 | | | (616,679 | ) | | 433,433 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | (2,303,350 | ) | | 4,517,826 | | | (528,008 | ) | | 870,207 | |
| |
|
| |
|
| |
|
| |
|
| |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (153,961 | ) | | (262,090 | ) | | (74,328 | ) | | (94,234 | ) |
Class B Shares | | | (71,898 | ) | | (132,843 | ) | | (41,535 | ) | | (56,207 | ) |
Class C Shares | | | (8,684 | ) | | (11,916 | ) | | (3,644 | ) | | (6,383 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (772,146 | ) | | (107,302 | ) | | (146,067 | ) | | (34,028 | ) |
Class B Shares | | | (634,501 | ) | | (94,696 | ) | | (110,864 | ) | | (29,598 | ) |
Class C Shares | | | (74,952 | ) | | (6,378 | ) | | (9,305 | ) | | (3,582 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (1,716,142 | ) | | (615,225 | ) | | (385,743 | ) | | (224,032 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 4,951,701 | | | 11,050,090 | | | 1,442,327 | | | 5,431,997 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 932,209 | | | 14,952,691 | | | 528,576 | | | 6,078,172 | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 38,419,845 | | | 23,467,154 | | | 12,034,303 | | | 5,956,131 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 39,352,054 | | $ | 38,419,845 | | $ | 12,562,879 | | $ | 12,034,303 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 41,787 | | $ | 14,138 | | $ | 17,428 | | $ | 18,083 | |
| |
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|
| |
|
| |
| | |
23 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Moderate Growth Strategy Fund | | Conservative Growth Strategy Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | | For the six
months ended
April 30, 2008
(Unaudited) | | For the
year ended
October 31, 2007 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 3,118,080 | | $ | 7,912,763 | | $ | 1,103,796 | | $ | 1,988,365 | |
Proceeds from shares issued in conversion | | | — | | | — | | | — | | | 1,774,237 | |
Dividends reinvested | | | 923,504 | | | 366,055 | | | 211,906 | | | 127,648 | |
Value of shares redeemed | | | (1,867,977 | ) | | (2,131,003 | ) | | (833,329 | ) | | (631,447 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 2,173,607 | | | 6,147,815 | | | 482,373 | | | 3,258,803 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 2,658,846 | | | 4,788,564 | | | 895,356 | | | 1,387,844 | |
Proceeds from shares issued in conversion | | | — | | | — | | | — | | | 981,527 | |
Dividends reinvested | | | 704,767 | | | 226,308 | | | 146,598 | | | 84,374 | |
Value of shares redeemed | | | (970,150 | ) | | (966,698 | ) | | (181,193 | ) | | (366,939 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 2,393,463 | | | 4,048,174 | | | 860,761 | | | 2,086,806 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 479,081 | | | 1,158,749 | | | 91,510 | | | 109,629 | |
Proceeds from shares issued in conversion | | | — | | | — | | | — | | | 23,289 | |
Dividends reinvested | | | 83,636 | | | 18,281 | | | 12,949 | | | 9,965 | |
Value of shares redeemed | | | (178,086 | ) | | (322,929 | ) | | (5,266 | ) | | (56,495 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 384,631 | | | 854,101 | | | 99,193 | | | 86,388 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | 4,951,701 | | $ | 11,050,090 | | $ | 1,442,327 | | $ | 5,431,997 | |
| |
|
| |
|
| |
|
| |
|
| |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 260,689 | | | 638,805 | | | 98,693 | | | 172,826 | |
Issued in conversion | | | — | | | — | | | — | | | 148,136 | |
Reinvested | | | 75,771 | | | 29,777 | | | 18,738 | | | 11,167 | |
Redeemed | | | (157,866 | ) | | (173,246 | ) | | (75,356 | ) | | (54,690 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | 178,594 | | | 495,336 | | | 42,075 | | | 277,439 | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 222,749 | | | 387,531 | | | 80,936 | | | 121,528 | |
Issued in conversion | | | — | | | — | | | — | | | 82,738 | |
Reinvested | | | 57,807 | | | 18,521 | | | 13,051 | | | 7,465 | |
Redeemed | | | (81,691 | ) | | (77,311 | ) | | (16,401 | ) | | (31,991 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 198,865 | | | 328,741 | | | 77,586 | | | 179,740 | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 40,283 | | | 95,099 | | | 8,016 | | | 9,224 | |
Issued in conversion | | | — | | | — | | | — | | | 1,922 | |
Reinvested | | | 7,025 | | | 1,520 | | | 1,123 | | | 864 | |
Redeemed | | | (15,683 | ) | | (27,016 | ) | | (460 | ) | | (4,861 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 31,625 | | | 69,603 | | | 8,679 | | | 7,149 | |
| |
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| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 24 |
|
HSBC INVESTOR AGGRESSIVE GROWTH STRATEGY FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
| | | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
|
|
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|
|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (g) | | | $ | 10.00 | | | (0.01 | ) | | 0.61 | | | 0.60 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.60 | | | 0.01 | | | 2.01 | | | 2.02 | | | (0.05 | ) | | (0.05 | ) | |
Year Ended October 31, 2007 | | | | 12.57 | | | — | *(f) | | 2.98 | | | 2.98 | | | — | | | — | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 15.55 | | | — | *(f) | | (1.18 | ) | | (1.18 | ) | | (0.90 | ) | | (0.90 | ) | |
|
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|
CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (h) | | | $ | 10.00 | | | (0.04 | ) | | 0.61 | | | 0.57 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.57 | | | (0.05 | ) | | 1.97 | | | 1.92 | | | (0.05 | ) | | (0.05 | ) | |
Year Ended October 31, 2007 | | | | 12.44 | | | (0.11 | )* | | 2.94 | | | 2.83 | | | — | | | — | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 15.27 | | | (0.05 | )* | | (1.16 | ) | | (1.21 | ) | | (0.90 | ) | | (0.90 | ) | |
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|
CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.00 | | | (0.05 | ) | | 0.60 | | | 0.55 | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.55 | | | (0.04 | ) | | 1.95 | | | 1.91 | | | (0.05 | ) | | (0.05 | ) | |
Year Ended October 31, 2007 | | | | 12.41 | | | (0.11 | )* | | 2.96 | | | 2.85 | | | — | | | — | | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 15.26 | | | (0.05 | )* | | (1.16 | ) | | (1.21 | ) | | (0.90 | ) | | (0.90 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average
Net Assets(c) | | Ratio of Net
Investment
Income (Loss)
to Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
|
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|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (g) | | | $ | 10.60 | | | 6.00 | % | | | $ | 726 | | | 1.50 | % | | (0.20 | )% | | 11.72 | % | | 49.10 | % | |
Year Ended October 31, 2006 | | | | 12.57 | | | 19.15 | % | | | | 4,116 | | | 1.50 | % | | 0.05 | % | | 3.52 | % | | 48.46 | % | |
Year Ended October 31, 2007 | | | | 15.55 | | | 23.71 | % | | | | 7,046 | | | 1.50 | % | | (0.03 | )% | | 2.27 | % | | 45.50 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.47 | | | (7.67 | )% | | | | 7,479 | | | 1.50 | % | | 0.01 | % | | 1.89 | % | | 26.00 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (h) | | | $ | 10.57 | | | 5.70 | % | | | $ | 700 | | | 2.25 | % | | (1.01 | )% | | 11.63 | % | | 49.10 | % | |
Year Ended October 31, 2006 | | | | 12.44 | | | 18.25 | % | | | | 2,998 | | | 2.25 | % | | (0.70 | )% | | 4.33 | % | | 48.46 | % | |
Year Ended October 31, 2007 | | | | 15.27 | | | 22.75 | % | | | | 4,942 | | | 2.25 | % | | (0.77 | )% | | 3.02 | % | | 45.50 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.16 | | | (8.03 | )% | | | | 5,152 | | | 2.25 | % | | (0.74 | )% | | 2.64 | % | | 26.00 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.55 | | | 5.50 | % | | | $ | 21 | | | 2.25 | % | | (1.15 | )% | | 9.79 | % | | 49.10 | % | |
Year Ended October 31, 2006 | | | | 12.41 | | | 18.19 | % | | | | 229 | | | 2.25 | % | | (0.69 | )% | | 4.20 | % | | 48.46 | % | |
Year Ended October 31, 2007 | | | | 15.26 | | | 22.97 | % | | | | 528 | | | 2.25 | % | | (0.79 | )% | | 2.99 | % | | 45.50 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.15 | | | (8.03 | )% | | | | 509 | | | 2.25 | % | | (0.74 | )% | | 2.64 | % | | 26.00 | % | |
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* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
| |
(f) | Rounds to less than $0.01. |
| |
(g) | Class A Shares commenced operations on February 14, 2005. |
| |
(h) | Class B Shares commenced operations on February 9, 2005. |
| |
(i) | Class C Shares commenced operations on June 9, 2005. |
| | |
25 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
|
HSBC INVESTOR GROWTH STRATEGY FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
| | | | |
| |
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (f) | | | $ | 10.00 | | | 0.02 | | | 0.70 | | | 0.72 | | | — | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.72 | | | 0.07 | | | 1.69 | | | 1.76 | | | — | | | (0.03 | ) | | (0.03 | ) | |
Year Ended October 31, 2007 | | | | 12.45 | | | 0.11 | * | | 2.34 | | | 2.45 | | | (0.08 | ) | | (0.09 | ) | | (0.17 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 14.73 | | | 0.06 | * | | (1.08 | ) | | (1.02 | ) | | (0.09 | ) | | (0.74 | ) | | (0.83 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.00 | | | (0.01 | ) | | 0.79 | | | 0.78 | | | — | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.78 | | | 0.02 | | | 1.66 | | | 1.68 | | | — | | | (0.03 | ) | | (0.03 | ) | |
Year Ended October 31, 2007 | | | | 12.43 | | | 0.01 | * | | 2.34 | | | 2.35 | | | (0.02 | ) | | (0.09 | ) | | (0.11 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 14.67 | | | 0.01 | * | | (1.08 | ) | | (1.07 | ) | | — | (k) | | (0.74 | ) | | (0.74 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.00 | | | (0.02 | ) | | 0.84 | | | 0.82 | | | — | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.82 | | | 0.02 | | | 1.67 | | | 1.69 | | | — | | | (0.03 | ) | | (0.03 | ) | |
Year Ended October 31, 2007 | | | | 12.48 | | | 0.01 | * | | 2.35 | | | 2.36 | | | (0.01 | ) | | (0.09 | ) | | (0.10 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 14.74 | | | 0.01 | * | | (1.08 | ) | | (1.07 | ) | | (0.01 | ) | | (0.74 | ) | | (0.75 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data |
| | | | | | | |
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average
Net Assets(c) | | Ratio of Net
Investment
Income (Loss)
to Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (f) | | | $ | 10.72 | | | 7.20 | % | | | $ | 2,814 | | | 1.50 | % | | 0.42 | % | | 5.19 | % | | 69.23 | % | |
Year Ended October 31, 2006 | | | | 12.45 | | | 16.41 | % | | | | 12,562 | | | 1.50 | % | | 0.87 | % | | 2.19 | % | | 80.30 | % | |
Year Ended October 31, 2007 | | | | 14.73 | | | 19.92 | %(g) | | | | 21,352 | | | 1.50 | % | | 0.84 | % | | 1.65 | % | | 73.45 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.88 | | | (7.07 | )%(h) | | | | 20,849 | | | 1.48 | % | | 0.90 | % | | 1.48 | % | | 29.57 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.78 | | | 7.80 | % | | | $ | 2,670 | | | 2.25 | % | | (0.38 | )% | | 5.74 | % | | 69.23 | % | |
Year Ended October 31, 2006 | | | | 12.43 | | | 15.57 | % | | | | 8,702 | | | 2.25 | % | | 0.11 | % | | 2.94 | % | | 80.30 | % | |
Year Ended October 31, 2007 | | | | 14.67 | | | 18.98 | %(g) | | | | 13,905 | | | 2.25 | % | | 0.09 | % | | 2.40 | % | | 73.45 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.86 | | | (7.44 | )%(h) | | | | 13,763 | | | 2.23 | % | | 0.16 | % | | 2.23 | % | | 29.57 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.82 | | | 8.20 | % | | | $ | 106 | | | 2.25 | % | | (0.55 | )% | | 5.24 | % | | 69.23 | % | |
Year Ended October 31, 2006 | | | | 12.48 | | | 15.61 | % | | | | 585 | | | 2.25 | % | | 0.14 | % | | 2.90 | % | | 80.30 | % | |
Year Ended October 31, 2007 | | | | 14.74 | | | 19.04 | %(g) | | | | 1,273 | | | 2.25 | % | | 0.07 | % | | 2.39 | % | | 73.45 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.92 | | | (7.42 | )%(h) | | | | 1,398 | | | 2.23 | % | | 0.18 | % | | 2.23 | % | | 29.57 | % | |
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* | Calculated based on average shares outstanding. |
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(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
| |
(f) | Class A Shares commenced operations on February 8, 2005. |
| |
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.23%, 0.24% and 0.23% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(h) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | Class B Shares commenced operations on February 1, 2005. |
| |
(j) | Class C Shares commenced operations on April 27, 2005. |
| |
(k) | Rounds to less than $0.01. |
| | |
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 26 |
|
HSBC INVESTOR MODERATE GROWTH STRATEGY FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Investment Activities | | Dividends | |
| | | |
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| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (f) | | | $ | 10.00 | | | 0.04 | | | 0.45 | | | 0.49 | | | — | (g) | | — | | | — | (g) | |
Year Ended October 31, 2006 | | | | 10.49 | | | 0.17 | | | 1.23 | | | 1.40 | | | (0.17 | ) | | (0.01 | ) | | (0.18 | ) | |
Year Ended October 31, 2007 | | | | 11.71 | | | 0.21 | * | | 1.65 | | | 1.86 | | | (0.20 | ) | | (0.10 | ) | | (0.30 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.27 | | | 0.11 | * | | (0.87 | ) | | (0.76 | ) | | (0.10 | ) | | (0.50 | ) | | (0.60 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.00 | | | 0.01 | | | 0.49 | | | 0.50 | | | — | (g) | | — | | | — | (g) | |
Year Ended October 31, 2006 | | | | 10.50 | | | 0.09 | | | 1.22 | | | 1.31 | | | (0.08 | ) | | (0.01 | ) | | (0.09 | ) | |
Year Ended October 31, 2007 | | | | 11.72 | | | 0.12 | * | | 1.65 | | | 1.77 | | | (0.12 | ) | | (0.10 | ) | | (0.22 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 13.27 | | | 0.06 | * | | (0.87 | ) | | (0.81 | ) | | (0.05 | ) | | (0.50 | ) | | (0.55 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (k) | | | $ | 10.00 | | | — | (g) | | 0.28 | | | 0.28 | | | — | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.28 | | | 0.09 | | | 1.19 | | | 1.28 | | | (0.08 | ) | | (0.01 | ) | | (0.09 | ) | |
Year Ended October 31, 2007 | | | | 11.47 | | | 0.12 | * | | 1.60 | | | 1.72 | | | (0.12 | ) | | (0.10 | ) | | (0.22 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.97 | | | 0.06 | * | | (0.84 | ) | | (0.78 | ) | | (0.06 | ) | | (0.50 | ) | | (0.56 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Ratios/Supplementary Data | |
| | | | | | | |
|
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average
Net Assets(c) | | Ratio of Net
Investment
Income (Loss)
to Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (f) | | | $ | 10.49 | | | 4.94 | % | | | $ | 3,241 | | | 1.50 | % | | 0.95 | % | | 4.30 | % | | 84.55 | % | |
Year Ended October 31, 2006 | | | | 11.71 | | | 13.40 | % | | | | 11,973 | | | 1.50 | % | | 1.65 | % | | 2.12 | % | | 101.57 | % | |
Year Ended October 31, 2007 | | | | 13.27 | | | 16.12 | %(h) | | | | 20,140 | | | 1.50 | % | | 1.70 | % | | 1.60 | % | | 92.87 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.91 | | | (5.84 | )%(i) | | | | 20,211 | | | 1.43 | % | | 1.77 | % | | 1.43 | % | | 31.50 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.50 | | | 5.03 | % | | | $ | 3,604 | | | 2.25 | % | | 0.18 | % | | 5.01 | % | | 84.55 | % | |
Year Ended October 31, 2006 | | | | 11.72 | | | 12.45 | % | | | | 10,731 | | | 2.25 | % | | 0.91 | % | | 2.87 | % | | 101.57 | % | |
Year Ended October 31, 2007 | | | | 13.27 | | | 15.25 | %(h) | | | | 16,513 | | | 2.25 | % | | 0.95 | % | | 2.35 | % | | 92.87 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.91 | | | (6.17 | )%(i) | | | | 17,190 | | | 2.18 | % | | 1.02 | % | | 2.18 | % | | 31.50 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (k) | | | $ | 10.28 | | | 2.80 | % | | | $ | 278 | | | 2.25 | % | | 0.05 | % | | 4.69 | % | | 84.55 | % | |
Year Ended October 31, 2006 | | | | 11.47 | | | 12.53 | % | | | | 763 | | | 2.25 | % | | 0.87 | % | | 2.83 | % | | 101.57 | % | |
Year Ended October 31, 2007 | | | | 12.97 | | | 15.20 | %(h) | | | | 1,766 | | | 2.25 | % | | 0.95 | % | | 2.33 | % | | 92.87 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.63 | | | (6.14 | )%(i) | | | | 1,951 | | | 2.18 | % | | 1.02 | % | | 2.18 | % | | 31.50 | % | |
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* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
| |
(f) | Class A Shares commenced operations on February 3, 2005. |
| |
(g) | Rounds to less than $0.01. |
| |
(h) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.41%, 0.41% and 0.33% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.10%, 0.10% and 0.10% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(j) | Class B Shares commenced operations on February 1, 2005. |
| |
(k) | Class C Shares commenced operations on June 9, 2005. |
| | |
27 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
|
HSBC INVESTOR CONSERVATIVE GROWTH STRATEGY FUND |
|
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Investment Activities | | Dividends | |
| | | | |
| |
|
|
| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.00 | | | 0.04 | | | 0.26 | | | 0.30 | | | (0.01 | ) | | — | | | (0.01 | ) | |
Year Ended October 31, 2006 | | | | 10.29 | | | 0.22 | | | 0.85 | | | 1.07 | | | (0.25 | ) | | — | | | (0.25 | ) | |
Year Ended October 31, 2007 | | | | 11.11 | | | 0.29 | * | | 1.03 | | | 1.32 | | | (0.27 | ) | | (0.12 | ) | | (0.39 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.04 | | | 0.13 | * | | (0.63 | ) | | (0.50 | ) | | (0.13 | ) | | (0.26 | ) | | (0.39 | ) | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.00 | | | 0.03 | | | 0.16 | | | 0.19 | | | — | (f) | | — | | | — | (f) | |
Year Ended October 31, 2006 | | | | 10.19 | | | 0.15 | | | 0.83 | | | 0.98 | | | (0.16 | ) | | — | | | (0.16 | ) | |
Year Ended October 31, 2007 | | | | 11.01 | | | 0.20 | * | | 1.05 | | | 1.25 | | | (0.20 | ) | | (0.12 | ) | | (0.32 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.94 | | | 0.09 | * | | (0.64 | ) | | (0.55 | ) | | (0.09 | ) | | (0.26 | ) | | (0.35 | ) | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (k) | | | $ | 10.00 | | | 0.03 | | | 0.38 | | | 0.41 | | | — | | | — | | | — | | |
Year Ended October 31, 2006 | | | | 10.41 | | | 0.15 | | | 0.85 | | | 1.00 | | | (0.17 | ) | | — | | | (0.17 | ) | |
Year Ended October 31, 2007 | | | | 11.24 | | | 0.21 | * | | 1.11 | | | 1.32 | | | (0.19 | ) | | (0.12 | ) | | (0.31 | ) | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 12.25 | | | 0.09 | * | | (0.64 | ) | | (0.55 | ) | | (0.09 | ) | | (0.26 | ) | | (0.35 | ) | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Ratios/Supplementary Data | |
| | | | | |
|
|
| | Net Asset
Value, End
of Period | | Total
Return(b) | | Net Assets
at End of
Period
(000’s) | | Ratio of Net
Expenses to
Average
Net Assets(c) | | Ratio of Net
Investment
Income (Loss)
to Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (i) | | | $ | 10.29 | | | 2.96 | % | | | $ | 1,054 | | | 1.50 | % | | 1.28 | % | | 8.01 | % | | 72.14 | % | |
Year Ended October 31, 2006 | | | | 11.11 | | | 10.48 | % | | | | 3,069 | | | 1.50 | % | | 2.33 | % | | 3.22 | % | | 96.58 | % | |
Year Ended October 31, 2007 | | | | 12.04 | | | 12.13 | %(g) | | | | 6,669 | | | 1.50 | % | | 2.52 | % | | 2.06 | % | | 88.67 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.15 | | | (4.16 | )%(h) | | | | 6,643 | | | 1.50 | % | | 2.35 | % | | 1.65 | % | | 27.62 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (j) | | | $ | 10.19 | | | 1.92 | % | | | $ | 1,306 | | | 2.25 | % | | 0.53 | % | | 9.21 | % | | 72.14 | % | |
Year Ended October 31, 2006 | | | | 11.01 | | | 9.65 | % | | | | 2,567 | | | 2.25 | % | | 1.54 | % | | 3.98 | % | | 96.58 | % | |
Year Ended October 31, 2007 | | | | 11.94 | | | 11.51 | %(g) | | | | 4,928 | | | 2.25 | % | | 1.77 | % | | 2.82 | % | | 88.67 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.04 | | | (4.60 | )%(h) | | | | 5,416 | | | 2.25 | % | | 1.60 | % | | 2.40 | % | | 27.62 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005 (k) | | | $ | 10.41 | | | 4.10 | % | | | $ | 82 | | | 2.25 | % | | 0.66 | % | | 7.94 | % | | 72.14 | % | |
Year Ended October 31, 2006 | | | | 11.24 | | | 9.66 | % | | | | 320 | | | 2.25 | % | | 1.56 | % | | 3.92 | % | | 96.58 | % | |
Year Ended October 31, 2007 | | | | 12.25 | | | 11.97 | %(g) | | | | 437 | | | 2.25 | % | | 1.78 | % | | 2.85 | % | | 88.67 | % | |
Six Months Ended April 30, 2008 (Unaudited) | | | | 11.35 | | | (4.50 | )%(h) | | | | 503 | | | 2.25 | % | | 1.60 | % | | 2.40 | % | | 27.62 | % | |
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* | Calculated based on average shares outstanding. |
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
| |
(c) | Annualized for periods less than one year. |
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
| |
(f) | Rounds to less than $0.01. |
| |
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.44%, 0.47% and 0.48% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(h) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.12%, 0.12% and 0.12% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | Class A Shares commenced operations on February 23, 2005. |
| |
(j) | Class B Shares commenced operations on February 17, 2005. |
| |
(k) | Class C Shares commenced operations on April 19, 2005. |
| | |
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 28 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2008 (Unaudited) |
| |
1. | Organization: |
| |
| The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of April 30, 2008, the Trust is comprised of 20 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial statements are presented for the following 4 funds (individually a “Fund”, collectively the “LifeLine Funds”): |
| | |
| Fund | Short Name |
|
|
|
| HSBC Investor Aggressive Growth Strategy Fund | Aggressive Growth Fund |
| HSBC Investor Growth Strategy Fund | Growth Strategy Fund |
| HSBC Investor Moderate Growth Strategy Fund | Moderate Growth Fund |
| HSBC Investor Conservative Growth Strategy Fund | Conservative Growth Fund |
| |
| The LifeLine Funds are a diversified series of the Trust and part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
| |
| The LifeLine Funds utilize a master-feeder fund structure and seek to achieve their investment objectives by investing all of their investable assets in the Portfolios and the Money Market Fund (collectively the “Underlying Portfolios”) per the following schedule from November 1, 2007 to April 30, 2008: |
| |
| LifeLine Funds Portfolio Weightings |
| | | | | | | | | | | | | | |
| Underlying Portfolios | | Aggressive
Growth
Fund | | Growth
Strategy
Fund | | Moderate
Growth
Fund | | Conservative
Growth
Fund | |
|
| |
| |
| |
| |
| |
| Core Plus Fixed Income Portfolio | | | None | | | 15 | % | | 26 | % | | 25 | % |
| High Yield Fixed Income Portfolio | | | None | | | 2 | % | | 5 | % | | 8 | % |
| Intermediate Duration Fixed Income Portfolio | | | None | | | None | | | None | | | 3 | % |
| Growth Portfolio | | | 21 | % | | 21 | % | | 19 | % | | 15 | % |
| International Equity Portfolio | | | 23 | % | | 20 | % | | 15 | % | | 10 | % |
| Opportunity Portfolio | | | 34 | % | | 20 | % | | 11 | % | | 4 | % |
| Value Portfolio | | | 21 | % | | 21 | % | | 18 | % | | 14 | % |
| Money Market Fund | | | 1 | % | | 1 | % | | 6 | % | | 21 | % |
| | |
|
| �� |
|
| |
|
| |
|
| |
| Total | | | 100 | % | | 100 | % | | 100 | % | | 100 | % |
| | |
|
| |
|
| |
|
| |
|
| |
| |
| LifeLine Funds Portfolio Investments |
| | | | | | | | | | | | | | |
| Underlying Portfolios | | Aggressive
Growth
Fund | | Growth
Strategy
Fund | | Moderate
Growth
Fund | | Conservative
Growth
Fund | |
|
| |
| |
| |
| |
| |
| Core Plus Fixed Income Portfolio | | $ | — | | $ | 5,472,134 | | $ | 10,329,433 | | $ | 3,168,828 | |
| High Yield Fixed Income Portfolio | | | — | | | 726,600 | | | 1,978,226 | | | 1,009,850 | |
| Intermediate Duration Fixed Income Portfolio | | | — | | | — | | | — | | | 380,095 | |
| Growth Portfolio | | | 2,736,686 | | | 7,511,820 | | | 7,401,693 | | | 1,864,460 | |
| International Equity Portfolio | | | 3,021,856 | | | 7,212,652 | | | 5,891,310 | | | 1,253,180 | |
| Opportunity Portfolio | | | 4,480,007 | | | 7,233,555 | | | 4,332,706 | | | 502,686 | |
| Value Portfolio | | | 2,759,748 | | | 7,575,143 | | | 7,071,165 | | | 1,754,774 | |
| Money Market Fund | | | 132,515 | | | 363,050 | | | 2,369,397 | | | 2,645,842 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total | | $ | 13,130,812 | | $ | 36,094,954 | | $ | 39,373,930 | | $ | 12,579,715 | |
| | |
|
| |
|
| |
|
| |
|
| |
| |
29 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
| |
| The HSBC Investor Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio,” collectively the “Portfolios”) are each a diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements. |
| |
| The HSBC Investor Money Market Fund (the “Money Market Fund”) is an open-end management investment company and, like each LifeLine Fund, is a diversified series of the Trust. |
| |
| The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the LifeLine Funds. |
| |
| The LifeLine Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. Each Fund offers four classes of shares: Class A Shares, Class B Shares, Class C Shares, and Class R Shares (currently not operational with assets). Class A Shares of the Aggressive Growth Fund, Growth Strategy Fund, Moderate Growth Fund, and the Conservative Growth Fund have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the LifeLine Funds are offered without any front-end sales charge but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the LifeLine Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. No sales charges are assessed with respect to Class R Shares of the Funds. Each class of shares in the LifeLine Funds has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. |
| |
| Under the Trust’s organizational documents, the LifeLine Funds’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the LifeLine Funds. In addition, in the normal course of business, the LifeLine Funds enter into contracts with its service providers, which also provide for indemnifications by the LifeLine Funds. The LifeLine Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the LifeLine Funds. However, based on experience, the LifeLine Funds expect that risk of loss to be remote. |
| |
2. | Significant Accounting Policies: |
| |
| The following is a summary of the significant accounting policies followed by the LifeLine Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
| |
| Securities Valuation: |
| |
| The LifeLine Funds record their investments in the Underlying Portfolios at fair value. The LifeLine Funds record their investments in the Money Market Fund at the respective net asset value reported by the fund. The underlying securities of the Portfolios and the Money Market Fund are recorded at fair value and at amortized cost, respectively, as more fully discussed in the notes to those financial statements. |
| |
| Investment Transactions and Related Income: |
| |
| The LifeLine Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolio. Dividend income is recorded on the ex-dividend date for the Money Market Fund. Changes in holdings of the Money Market Fund for each LifeLine Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Money Market Fund are reflected as of trade date. In addition, the LifeLine Funds accrue their own expenses daily as incurred. |
| |
HSBC INVESTOR LIFELINE FUNDS | 30 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
| |
| Allocations: |
| |
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all LifeLine Funds within the HSBC Investor Family of Funds in relation to the net assets of each Fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
| |
| Dividends to Shareholders: |
| |
| Dividends from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Growth Fund and Conservative Growth Fund, and annually in the case of the Aggressive Growth Fund and Growth Strategy Fund. |
| |
| The LifeLine Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the LifeLine Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net capital gains of regulated investment companies. |
| |
| The amount and character of net investment income and net realized gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and certain distributions), such amounts are reclassified within the composition of net assets; temporary differences (e.g., wash losses and post-october loss deferrals) do not require reclassification. The LifeLine Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. |
| |
| Redemption Fee: |
| |
| A redemption fee of 2.00% will be charged and recorded as paid-in-capital for any shares redeemed or exchanged after holding them for less than 30 days. This fee does not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that cannot implement the fee. For the fiscal year and period ended October 31, 2007 and April 30, 2008, respectively, the following LifeLine Funds collected redemption fees as follows: |
| | | | | | | | | | | | |
| Fund | | October 31, 2007
Fees Collected | | April 30, 2008
Fees Collected | |
|
| |
| |
| |
| Aggressive Growth Fund | | | $ | 1,573 | | | | $ | 6 | | |
| Growth Strategy Fund | | | | 729 | | | | | 48 | | |
| Moderate Growth Fund | | | | 515 | | | | | 1,844 | | |
| Conservative Growth Fund | | | | 1,305 | | | | | 5 | | |
| |
| Federal Income Taxes: |
| |
| Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required. |
| |
| In addition, effective April 30, 2008, the Trusts’ adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations. |
| |
31 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
| |
| New Accounting Pronouncements: |
| |
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
| |
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Lifeline Funds financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
| |
3. | Related Party Transactions: Investment Management: |
|
Investment Management:
|
| |
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the LifeLine Funds. As Investment Adviser, HSBC manages the investments of the LifeLine Funds and continuously reviews, supervises and administers the LifeLine Funds’ investments. For its services as Investment Adviser, HSBC is entitled to receive a fee, computed daily and paid monthly, based on average daily net assets, at an annual rate of 0.05% for each Fund. |
| |
| Administration: |
| |
| HSBC serves the Lifeline Funds as Administrator. Under the terms of the Administration Agreement effective, HSBC receives from the Lifeline Funds a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | Fee Rate | |
|
| |
| |
| Up to $12 billion | | 0.0525 | % | |
| In excess of $12 billion | | 0.0350 | % | |
| |
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in Underlying Portfolios by LifeLine Funds, the Portfolios pay half of the administration fee and the LifeLine Funds pay half, for a combination of the total fee rate above. |
| |
| The administration fees accrued for each class by Fund, of which 50% of such fees are deemed to be class specific, are as follows: |
| | | | | | | | | | | | | | |
| | | Aggressive
Growth
Strategy Fund | | Growth
Strategy Fund | | Moderate
Growth
Fund | | Conservative
Growth
Fund | |
| | |
| |
| |
| |
| |
| Class A | | $ | 780 | | $ | 2,273 | | $ | 2,184 | | $ | 714 | |
| Class B | | | 538 | | | 1,504 | | | 1,858 | | | 582 | |
| Class C | | | 53 | | | 152 | | | 211 | | | 54 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total | | $ | 1,371 | | $ | 3,929 | | $ | 4,253 | | $ | 1,350 | |
| | |
|
| |
|
| |
|
| |
|
| |
| |
HSBC INVESTOR LIFELINE FUNDS | 32 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
| |
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trust’s sub-administrator, subject to the general supervision of the Trusts’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
| |
| Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain out of pocket expenses. Expenses incurred are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
| |
| Distribution Plan: |
| |
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the LifeLine Funds, respectively. Foreside, as Distributor, also received $405,635, $247,179 and $12,433 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $396,664, $246,553 and $12,419 were reallowed to affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively. |
| |
| Shareholder Servicing: |
| |
| The Trust has adopted an Shareholder Services Plan, formerly known as Administrative Service Plan, which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee up to 0.25%, 0.25%, 0.25%, and 0.75% that is computed daily and paid monthly equal to a percentage of average daily net assets of Class A Shares, Class B Shares, Class C Shares, and Class R Shares of the Lifeline Funds, respectively. The fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Shareholder Services Plan currently are not intended to exceed, in the aggregate, 0.25% of the average daily net assets of Class A Shares, 1.00% of the average daily net assets of Class B Shares and Class C Shares. |
| |
| Fund Accounting, Transfer Agency and Trustee: |
| |
| Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent for the LifeLine Funds, Citi Ohio receives a fee based on the number of LifeLine Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant for the LifeLine Funds, Citi Ohio receives an annual fee per Fund and share class, subject to minimums and reimbursement of certain expenses. |
| |
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
33 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements— As of April 30, 2008 (Unaudited) (continued) |
| |
| Fee Reductions: |
| |
| The Investment Adviser has agreed to contractually limit through March 1, 2009 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the LifeLine Funds. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: Class A Shares 1.50%, Class B Shares 2.25%, Class C Shares 2.25%. |
| |
| The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of each Fund. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. |
| |
4. | Investment Transactions: |
| |
| Aggregate contributions and withdrawals of the Underlying Portfolios for the period ended April 30, 2008 totaled: |
| | | | | | | | | | | |
| | Contributions | | Withdrawals | |
| |
| |
| |
Aggressive Growth Fund | | | $ | 2,090,938 | | | | $ | 593,341 | | |
Growth Strategy Fund | | | | 4,655,508 | | | | | 2,759,464 | | |
Moderate Growth Fund | | | | 5,888,166 | | | | | 2,743,780 | | |
Conservative Growth Fund | | | | 1,952,369 | | | | | 1,022,192 | | |
| |
5. | Federal Tax Information: |
| |
| The tax characteristics of dividends paid by the LifeLine Funds during the latest tax year ended as of October 31, 2007 were as follows: |
| | | | | | | | | | | | | | | | | | | | |
| | Dividends paid from | | | | | | | |
| |
| | | | | | | |
| | Ordinary
Income | | Net Long Term
Capital Gains | | Total
Taxable
Dividends | | Tax
Exempt
Distributions | | Total
Dividends
Paid(1) | |
| |
| |
| |
| |
| |
| |
Growth Strategy Fund | | $ | 103,401 | | | $ | 164,526 | | | $ | 267,927 | | | $ | — | | | $ | 267,927 | |
Moderate Growth Fund | | | 406,849 | | | | 208,376 | | | | 615,225 | | | | — | | | | 615,225 | |
Conservative Growth Fund | | | 156,824 | | | | 67,208 | | | | 224,032 | | | | — | | | | 224,032 | |
| |
| As of the latest tax year end October 31, 2007, the components of accumulated earnings/(deficit) on a tax basis for the LifeLine Funds were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Undistributed
Ordinary
Income | | Undistributed
Tax Exempt
Income | | Undistributed
Long
Term
Capital
Gains | | Accumulated
Earnings | | Dividends
Payable | | Accumulated
Capital
and
Other
Losses | | Unrealized
Appreciation/
(Depreciation)(2) | | Total
Accumulated
Earnings/
(Deficit) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Aggressive Growth Fund | | | $ | 87,226 | | | | $ | — | | | | $ | 667,264 | | | | $ | 754,490 | | | | $ | — | | | | $ | — | | | | $ | 1,955,791 | | | | $ | 2,710,281 | | |
Growth Strategy Fund | | | | 417,995 | | | | | — | | | | | 1,575,493 | | | | | 1,993,488 | | | | | — | | | | | — | | | | | 4,889,569 | | | | | 6,883,057 | | |
Moderate Growth Fund | | | | 246,714 | | | | | — | | | | | 1,257,947 | | | | | 1,504,661 | | | | | — | | | | | — | | | | | 4,019,932 | | | | | 5,524,593 | | |
Conservative Growth Fund | | | | 57,735 | | | | | — | | | | | 228,458 | | | | | 286,193 | | | | | — | | | | | — | | | | | 800,828 | | | | | 1,087,021 | | |
| | |
| (1) | Total dividends paid may differ from the amount reported in the Statement of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
| | |
| (2) | The differences between book-basis and tax-basis unrealized appreciation/deprecation are attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain derivative instruments, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts. |
| | |
| The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings and any net capital loss carry-forwards will be determined at the end of the current tax year ending October 31, 2008. |
| |
HSBC INVESTOR LIFELINE FUNDS | 34 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements— As of April 30, 2008 (Unaudited) (continued) |
| |
6. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
| |
35 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Investment Adviser Contract Approval—April 30, 2008 (Unaudited) |
| | |
| The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”). |
| | |
| In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others: |
| | |
| | Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
| | |
| | Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements. |
| |
HSBC INVESTOR LIFELINE FUNDS | 36 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Table of Shareholders Expenses (Unaudited)—As of April 30, 2008 |
| |
| As a shareholder of the HSBC Investor LifeLine Funds (“Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and/or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. |
| |
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008. |
| |
| Actual Example |
| |
| The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
| | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending Account
Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Aggressive Growth Strategy Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 923.30 | | | | $ | 7.17 | | | 1.50 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 919.70 | | | | | 10.74 | | | 2.25 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 919.70 | | | | | 10.74 | | | 2.25 | % | |
Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 929.30 | | | | | 7.10 | | | 1.48 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 925.60 | | | | | 10.68 | | | 2.23 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 925.80 | | | | | 10.68 | | | 2.23 | % | |
Moderate Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 941.60 | | | | | 6.90 | | | 1.43 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 938.30 | | | | | 10.51 | | | 2.18 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 938.60 | | | | | 10.51 | | | 2.18 | % | |
Conservative Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 958.40 | | | | | 7.30 | | | 1.50 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 954.00 | | | | | 10.93 | | | 2.25 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 955.00 | | | | | 10.94 | | | 2.25 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
37 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Table of Shareholders Expenses (Unaudited)—As of April 30, 2008 (continued) |
| |
| Hypothetical Example for Comparison Purposes |
| |
| The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
| |
| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
| | | | | | | | | | | | | | | | | | | | | |
| | | | Beginning
Account Value
11/1/07 | | Ending
Account Value
4/30/08 | | Expenses Paid
During Period*
11/1/07 - 4/30/08 | | Annualized
Expense Ratio
During Period
11/1/07 - 4/30/08 | |
| | | |
| |
| |
| |
| |
Aggressive Growth Strategy Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,017.40 | | | | $ | 7.52 | | | 1.50 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.67 | | | | | 11.27 | | | 2.25 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.67 | | | | | 11.27 | | | 2.25 | % | |
Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,017.50 | | | | | 7.42 | | | 1.48 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.77 | | | | | 11.17 | | | 2.23 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.77 | | | | | 11.17 | | | 2.23 | % | |
Moderate Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,017.75 | | | | | 7.17 | | | 1.43 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,014.02 | | | | | 10.92 | | | 2.18 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,014.02 | | | | | 10.92 | | | 2.18 | % | |
Conservative Growth Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,017.40 | | | | | 7.52 | | | 1.50 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.67 | | | | | 11.27 | | | 2.25 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.67 | | | | | 11.27 | | | 2.25 | % | |
| |
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
| |
HSBC INVESTOR LIFELINE FUNDS | 38 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Government and Government Agency Obligations—44.7% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Federal Home Loan Mortgage Corp. – 5.4% | | | | | | | |
Pool #G12317, 5.50%, 8/1/21 | | | 1,010,527 | | | 1,029,768 | |
Pool #C00368, 8.50%, 10/1/24 | | | 25,145 | | | 27,806 | |
Pool #D62926, 6.50%, 8/1/25 | | | 19,382 | | | 20,300 | |
Pool #C80387, 6.50%, 4/1/26 | | | 25,425 | | | 26,630 | |
Pool #C00922, 8.00%, 2/1/30 | | | 158,266 | | | 171,412 | |
Pool #C54447, 7.00%, 7/1/31 | | | 32,528 | | | 34,553 | |
Pool #G01317, 7.00%, 10/1/31 | | | 126,963 | | | 134,868 | |
Pool #C60712, 6.50%, 11/1/31 | | | 523,373 | | | 546,203 | |
Pool #847557, 6.27%, 7/1/34 (a) | | | 725,693 | | | 731,227 | |
Pool #1B2655, 6.19%, 12/1/34 (a) | | | 573,830 | | | 578,809 | |
Pool #1J1313, 6.40%, 6/1/36 (a) | | | 1,325,088 | | | 1,359,223 | |
Pool #G02981, 6.00%, 6/1/37 | | | 1,094,552 | | | 1,120,748 | |
| | | | |
|
| |
| | | | | | 5,781,547 | |
| | | | |
|
| |
Federal National Mortgage Association – 21.4% | | | | | | | |
Pool #398958, 6.50%, 10/1/12 | | | 45,141 | | | 46,928 | |
Pool #781922, 5.00%, 2/1/21 | | | 2,113,781 | | | 2,127,364 | |
Pool #329655, 7.00%, 11/1/25 | | | 37,964 | | | 40,430 | |
Pool #329530, 7.00%, 12/1/25 | | | 80,18 | | | 85,395 | |
Pool #535332, 8.50%, 4/1/30 | | | 36,972 | | | 40,683 | |
Pool #548965, 8.50%, 7/1/30 | | | 43,392 | | | 47,759 | |
Pool #535440, 8.50%, 8/1/30 | | | 40,948 | | | 45,068 | |
Pool #253438, 8.50%, 9/1/30 | | | 34,776 | | | 38,275 | |
Pool #568486, 7.00%, 1/1/31 | | | 38,557 | | | 41,072 | |
Pool #573752, 8.50%, 2/1/31 | | | 29,606 | | | 32,586 | |
Pool #575328, 6.50%, 4/1/31 | | | 48,871 | | | 50,950 | |
Pool #356905, 7.14%, 10/1/36 (a) | | | 158,127 | | | 160,622 | |
Pool #922090, 5.89%, 3/1/37 (a) | | | 1,687,062 | | | 1,726,031 | |
Pool #256723, 6.50%, 5/1/37 | | | 1,082,672 | | | 1,121,397 | |
TBA May | | | | | | | |
5.50%, 5/15/37 | | | 11,360,000 | | | 11,420,344 | |
6.00%, 5/15/37 | | | 4,800,000 | | | 4,906,502 | |
5.00%, 5/13/38 | | | 1,000,000 | | | 982,188 | |
| | | | |
|
| |
| | | | | | 22,913,594 | |
| | | | |
|
| |
Government National Mortgage Association – 1.3% | | | | | | | |
Pool #346406, 7.50%, 2/15/23 | | | 43,619 | | | 46,941 | |
Pool #412530, 7.50%, 12/15/25 | | | 70,471 | | | 75,919 | |
Pool #781300, 7.00%, 6/15/31 | | | 121,223 | | | 129,833 | |
May, 6.00%, 5/15/37, TBA | | | 1,080,000 | | | 1,109,363 | |
| | | | |
|
| |
| | | | | | 1,362,056 | |
| | | | |
|
| |
U.S. Treasury Bonds – 3.2% | | | | | | | |
6.25%, 8/15/23 | | | 1,290,000 | | | 1,552,536 | |
5.00%, 5/15/37 | | | 1,775,000 | | | 1,923,656 | |
| | | | |
|
| |
| | | | | | 3,476,192 | |
| | | | |
|
| |
U.S. Treasury Notes – 13.4% | | | | | | | |
3.13%, 11/30/09 | | | 1,100,000 | | | 1,116,157 | |
2.00%, 2/28/10 | | | 2,573,000 | | | 2,561,543 | |
4.75%, 1/31/12 | | | 1,475,000 | | | 1,579,057 | |
3.63%, 12/31/12 | | | 2,000,000 | | | 2,053,750 | |
2.50%, 3/31/13 | | | 1,014,000 | | | 989,442 | |
4.75%, 8/15/17 | | | 1,445,000 | | | 1,556,762 | |
4.25%, 11/15/17 | | | 765,000 | | | 794,644 | |
3.50%, 2/15/18 | | | 3,785,000 | | | 3,704,569 | |
| | | | |
|
| |
| | | | | | 14,355,924 | |
| | | | |
|
| |
|
U.S. Government and Government Agency Obligations, cont’d |
|
| | | | | | | |
| | Principal
Amount ($) | | Value ($) | |
| |
| |
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS
(COST $47,954,905) | | | | | | 47,889,313 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations—32.9% | | | | | | | |
|
|
|
|
|
|
|
|
Agricultural Chemicals – 0.6% | | | | | | | |
Cargill, Inc., 5.60%, 9/15/12 (b) | | | 600,000 | | | 604,795 | |
| | | | |
|
| |
Banking – 2.0% | | | | | | | |
American Express Centurion Bank,
5.95%, 6/12/17 | | | 700,000 | | | 702,045 | |
Washington Mutual Bank NV | | | | | | | |
2.95%, 6/16/10 (a) | | | 750,000 | | | 674,774 | |
3.31%, 2/4/11 (a) | | | 400,000 | | | 353,453 | |
Washington Mutual, Inc., 3.20%, 9/17/12 (a) | | | 500,000 | | | 424,767 | |
| | | | |
|
| |
| | | | | | 2,155,039 | |
| | | | |
|
| |
Building & Construction Products – 1.0% | | | | | | | |
Martin Marietta Materials, Inc.,
3.40%, 4/30/10 (a) | | | 600,000 | | | 582,220 | |
Masco Corp., 3.20%, 3/12/10 (a) | | | 550,000 | | | 510,211 | |
| | | | |
|
| |
| | | | | | 1,092,431 | |
| | | | |
|
| |
Consumer Products – 0.9% | | | | | | | |
Clorox Co. (The), 5.45%, 10/15/12 | | | 900,000 | | | 909,151 | |
| | | | |
|
| |
Electric – 5.3% | | | | | | | |
Commonwealth Edison Co., 6.45%,
1/15/38 | | | 700,000 | | | 689,812 | |
Duke Energy Carolinas LLC,
5.10%, 4/15/18 | | | 450,000 | | | 447,181 | |
MidAmerican Energy Co., 5.95%, 7/15/17 | | | 2,900,000 | | | 3,022,452 | |
Progress Energy, Inc., 3.47%, 11/14/08,
Callable 8/14/08 @ 100 (a) | | | 1,000,000 | | | 996,246 | |
Puget Sound Energy, Inc., 6.97%, 6/1/67,
Callable 6/1/17 @ 100 | | | 600,000 | | | 538,842 | |
| | | | |
|
| |
| | | | | | 5,694,533 | |
| | | | |
|
| |
Finance – 5.7% | | | | | | | |
American Honda Finance Corp.,
4.63%, 4/2/13, MTN (b) | | | 250,000 | | | 245,634 | |
Caterpillar Financial Services Corp.,
5.45%, 4/15/18, MTN | | | 350,000 | | | 355,011 | |
Citigroup, Inc., 6.88%, 3/5/38 | | | 450,000 | | | 465,393 | |
Ford Motor Credit Co., LLC | | | | | | | |
9.75%, 9/15/10 | | | 1,550,000 | | | 1,505,828 | |
7.25%, 10/25/11 | | | 150,000 | | | 135,085 | |
MetLife Global Funding I,
5.13%, 4/10/13 (b) | | | 350,000 | | | 349,978 | |
Morgan Stanley, Series F,
6.00%, 4/28/15, MTN | | | 365,000 | | | 364,444 | |
Pacific Life Global Funding,
5.15%, 4/15/13 (b) | | | 250,000 | | | 250,239 | |
Preferred Term Securities Ltd.,
8.79%, 9/15/30, Callable 9/15/10
@ 104.395 (b) | | | 778,066 | | | 815,647 | |
Wells Fargo Financial, 5.50%, 8/1/12 | | | 850,000 | | | 876,325 | |
XTRA Finance Corp., 5.15%, 4/1/17 | | | 750,000 | | | 760,705 | |
| | | | |
|
| |
| | | | | | 6,124,289 | |
| | | | |
|
| |
| | |
39 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Hospitals – 1.1% | | | | | | | |
Covidien International Finance SA,
5.45%, 10/15/12 (b) | | | 550,000 | | | 554,508 | |
HCA, Inc., 5.75%, 3/15/14 | | | 750,000 | | | 648,750 | |
| | | | |
|
| |
| | | | | | 1,203,258 | |
| | | | |
|
| |
Media – 0.8% | | | | | | | |
News America Holdings, 7.90%, 12/1/95 | | | 500,000 | | | 540,975 | |
Vivendi, 5.75%, 4/4/13 (b) | | | 350,000 | | | 342,094 | |
| | | | |
|
| |
| | | | | | 883,069 | |
| | | | |
|
| |
Medical – 1.0% | | | | | | | |
AstraZeneca plc, 5.90%, 9/15/17 | | | 1,000,000 | | | 1,058,813 | |
| | | | |
|
| |
Office Equipment & Services – 0.5% | | | | | | | |
Xerox Corp., 3.51%, 12/18/09 (a) | | | 550,000 | | | 540,478 | |
| | | | |
|
| |
Retail – 3.2% | | | | | | | |
Home Depot, Inc., 5.88%, 12/16/36 | | | 1,300,000 | | | 1,086,812 | |
Kohl’s Corp., 6.25%, 12/15/17 | | | 550,000 | | | 534,078 | |
Kroger Co. (The), 5.00%, 4/15/13 | | | 250,000 | | | 251,174 | |
Wal-Mart Stores, Inc., 6.50%, 8/15/37 | | | 1,500,000 | | | 1,591,907 | |
| | | | |
|
| |
| | | | | | 3,463,971 | |
| | | | |
|
| |
Telecommunications – 5.2% | | | | | | | |
AOL Time Warner, Inc. | | | | | | | |
6.88%, 5/1/12 | | | 600,000 | | | 625,051 | |
7.70%, 5/1/32 | | | 550,000 | | | 595,717 | |
AT&T, Inc., 5.50%, 2/1/18 | | | 750,000 | | | 749,874 | |
BellSouth Telecommunications,
7.00%, 12/1/95 | | | 700,000 | | | 696,868 | |
Sprint Nextel Corp., 6.00%, 12/1/16 | | | 535,000 | | | 436,025 | |
Time Warner Entertainment Co.,
8.38%, 3/15/23 | | | 800,000 | | | 902,014 | |
Verizon Communications, Inc.,
6.10%, 4/15/18 | | | 1,500,000 | | | 1,572,743 | |
| | | | |
|
| |
| | | | | | 5,578,292 | |
| | | | |
|
| |
Transportation – 5.6% | | | | | | | |
American Airlines, Inc., Series 2001-2,
Class A1, 6.98%, 4/1/11 | | | 525,512 | | | 517,629 | |
American Airlines, Inc., Series 2001-2,
Class A2, 7.86%, 10/1/11 | | | 1,250,000 | | | 1,250,000 | |
Burlington North Santa Fe | | | | | | | |
5.65%, 5/1/17 | | | 600,000 | | | 603,775 | |
7.57%, 1/2/21 | | | 280,926 | | | 305,653 | |
Continental Airlines, Inc., 5.98%, 4/19/22 | | | 750,000 | | | 653,437 | |
Norfolk Southern Corp., 5.75%, 4/1/18 (b) | | | 250,000 | | | 253,538 | |
Union Pacific Corp. | | | | | | | |
5.75%, 11/15/17 | | | 1,200,000 | | | 1,214,893 | |
6.85%, 1/2/19 | | | 1,104,592 | | | 1,189,391 | |
| | | | |
|
| |
| | | | | | 5,988,316 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $35,414,826) | | | | | | 35,296,435 | |
| | | | |
|
| |
|
Asset Backed Securities—9.3% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Americredit Automobile Receivables
Trust, Series 2005-CF, Class A3,
4.47%, 5/6/10 (g) | | | 123,064 | | | 123,101 | |
Asset Backed Funding Certificates,
Series 2003-AHL1, Class A1,
3.68%, 3/25/33 | | | 738,743 | | | 615,694 | |
Cairn Mezzanine plc, Series 2007-3A,
Class B1, 3.97%, 8/13/47 (a)(b) | | | 905,000 | | | 45,250 | |
Capital Auto Receivables Asset Trust
Series 2006-SN1A, Class A3,
5.31%, 10/20/09 (b)(g) | | | 304,182 | | | 304,890 | |
Series 2007-SN1, Class A3B,
2.78%, 7/15/10 (a)(g) | | | 860,000 | | | 850,689 | |
Countrywide Asset-Backed Certificates,
Series 2006-S4, Class A3,
5.80%, 7/25/34 | | | 1,060,000 | | | 812,166 | |
Dominos Pizza Master Issuer LLC,
Series 2007-1, Class A2,
5.26%, 4/25/37 (b) | | | 1,200,000 | | | 1,026,305 | |
Duane Street CLO, Series 2007-4A,
Class C, 4.07%, 11/14/21 (a)(b) | | | 850,000 | | | 667,250 | |
GE Business Loan Trust, Series 2006-2A,
Class A, 2.90%, 11/15/34 (a)(b)(g) | | | 1,422,685 | | | 1,349,761 | |
GE Equipment Small Ticket LLC,
Series 2005-2A, Class A3,
4.88%, 10/22/09 (b)(g) | | | 725,482 | | | 724,575 | |
GMAC Mortgage Corp., Loan Trust,
Series 2006-HE3, Class A3,
5.81%, 10/25/36 | | | 900,000 | | | 419,137 | |
MBNA Credit Card Master Note Trust,
Series 2005-A7, Class A7,
4.30%, 2/15/11 (g) | | | 930,000 | | | 931,759 | |
Nissan Auto Receivables Owner Trust,
Series 2006-B, Class A3, 5.16%, 2/15/10 (g) | | | 1,110,750 | | | 1,117,946 | |
Preferred Term Securities XXII Ltd.,
3.14%, 9/22/36, Callable
6/22/11 @ 100 (a)(b)(g) | | | 1,088,695 | | | 937,693 | |
| | | | |
|
| |
TOTAL ASSET BACKED SECURITIES
(COST $12,064,272) | | | | | | 9,926,216 | |
| | | | |
|
| |
| | | | | | | |
Collateralized Mortgage Obligations—5.9% | | | | | | | |
|
|
|
|
|
|
|
|
Banc of America Mortgage Securities,
Series 2005-D, Class 2A4,
4.78%, 5/25/35 (a) | | | 1,100,000 | | | 1,095,077 | |
Deutsche Mortgage Securities, Inc.,
Series 2005-WF1, Class 1A1,
5.08%, 6/26/35 (a)(b) | | | 987,156 | | | 976,037 | |
Fannie Mae IO | | | | | | | |
Series 270, Class 2, 8.50%, 9/1/23 (c) | | | 41,654 | | | 11,454 | |
Series 296, Class 2, 8.00%, 4/1/24 (c) | | | 49,508 | | | 12,603 | |
Series 2000-16, Class PS,
5.71%, 10/25/29 (a) | | | 28,146 | | | 1,018 | |
Series 2000-32, Class SV,
5.87%, 3/18/30 (a) | | | 3,616 | | | 18 | |
Series 306, Class IO, 8.00%, 5/1/30 (c) | | | 56,658 | | | 13,082 | |
Series 2001-4, Class SA,
4.83%, 2/17/31 (a) | | | 198,831 | | | 16,829 | |
FHA Weyerhauser, 7.43%, 1/1/24 (d)(e) | | | 26,696 | | | 26,696 | |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 40 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Collateralized Mortgage Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Freddie Mac | | | | | | | |
Series 2988, Class AF,
3.02%, 6/15/35 (a)(g) | | | 1,051,271 | | | 1,012,900 | |
Series 3212, Class BK, 5.40%, 9/15/36 | | | 900,000 | | | 894,715 | |
Freddie Mac IO | | | | | | | |
Series 1534, Class K, 4.65%, 6/15/23 (a) | | | 132,203 | | | 14,066 | |
Series 2141, Class SD, 5.43%, 4/15/29 (a) | | | 108,040 | | | 15,084 | |
Series 2247, Class SC, 4.78%, 8/15/30 (a) | | | 54,312 | | | 4,992 | |
Government National Mortgage
Association IO | | | | | | | |
Series 1999-30, Class SA,
5.29%, 4/16/29 (a) | | | 68,157 | | | 4,174 | |
Series 1999-30, Class S,
5.89%, 8/16/29 (a) | | | 50,811 | | | 4,645 | |
Morgan Stanley Mortgage Loan Trust,
Series 2006-3AR, Class 2A3,
5.82%, 3/25/36 (a) | | | 1,192,445 | | | 992,204 | |
Residential Asset Securitization Trust,
Series 2003-A15, Class 1A2,
3.35%, 2/25/34 (a)(g) | | | 1,492,962 | | | 1,285,496 | |
| | | | |
|
| |
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (COST $6,771,206) | | | | | | 6,381,090 | |
| | | | |
|
| |
| | | | | | | |
Commercial Mortgage Backed Securities—12.3% | | | | | | | |
|
|
|
|
|
|
|
|
Banc of America Commercial
Mortgage, Inc., Series 2006-4,
Class A4, 5.63%, 7/10/46 | | | 1,540,000 | | | 1,531,906 | |
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2006-T24,
Class A4, 5.43%, 10/12/41 | | | 1,100,000 | | | 1,087,476 | |
Citigroup Commercial Mortgage Trust,
Series 2006-C5, Class A2,
5.38%, 10/15/49 | | | 1,100,000 | | | 1,096,487 | |
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD4,
Class A2B, 5.21%, 12/11/49 | | | 1,300,000 | | | 1,282,318 | |
Commercial Mortgage Pass-Through Certificate | | | | | | | |
Series 2006-FL12, Class A2,
2.82%, 12/15/20 (a)(b)(g) | | | 1,508,392 | | | 1,437,272 | |
Series 2005-LP5, Class AJ,
5.05%, 5/10/43 | | | 1,550,000 | | | 1,414,690 | |
CWCapital Cobalt,
Series 2006-C1, Class A2,
5.17%, 8/15/48 | | | 1,232,000 | | | 1,219,597 | |
DLJ Mortgage Acceptance Corp., IO,
Series 1997-CF1, Class S,
1.18%, 5/15/30 (a)(b)(e) | | | 19,068 | | | 1 | |
GS Mortgage Securities Corp., IO,
Series 1997-GL, Class X2,
0.29%, 7/13/30 (a)(e) | | | 36,108 | | | 493 | |
Morgan Stanley Capital I | | | | | | | |
Series 2006-HQ10, Class A4,
5.33%, 11/12/41 | | | 1,000,000 | | | 973,657 | |
Series 2007-IQ14, Class A2,
5.61%, 4/15/49 | | | 1,380,000 | | | 1,374,627 | |
Series 2007-IQ14, Class AM,
5.88%, 4/15/49 (a) | | | 990,000 | | | 913,236 | |
|
Commercial Mortgage Backed Securities, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Washington Mutual Commercial
Mortgage Securities Trust,
Series 2006-SL1, Class A,
5.42%, 11/23/43 (a)(b) | | | 973,418 | | | 873,545 | |
| | | | |
|
| |
TOTAL COMMERCIAL MORTGAGE
BACKED SECURITIES
(COST $13,589,909) | | | | | | 13,205,305 | |
| | | | |
|
| |
| | | | | | | |
Foreign Bonds—3.0% | | | | | | | |
|
|
|
|
|
|
|
|
Iceland – 1.0% | | | | | | | |
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) | | | 1,250,000 | | | 1,046,872 | |
| | | | |
|
| |
South Korea – 1.3% | | | | | | | |
Citibank Korea, Inc., 4.68%, 6/18/13,
Callable 6/18/08 @ 100 (a) | | | 1,400,000 | | | 1,402,292 | |
| | | | |
|
| |
United Kingdom – 0.7% | | | | | | | |
Barclays Bank plc, 5.93%, 12/31/49 (b) | | | 850,000 | | | 717,691 | |
| | | | |
|
| |
TOTAL FOREIGN BONDS
(COST $3,502,358) | | | | | | 3,166,855 | |
| | | | |
|
| |
| | |
41 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Northern Institutional Diversified
Assets Portfolio, Shares class,
2.33% (f) | | | 11,993,552 | | | 11,993,552 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $11,993,551) | | | | | | 11,993,552 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $131,291,027) — 119.3% | | | | | | 127,858,766 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $107,150,902. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | Interest-Only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an Interest-Only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate adjusts periodically based on the pay off of the underlying mortgage. The interest rate presented represents the rates in effect on April 30, 2008. The principal amount shown is the notional amount of the underlying mortgages. |
| |
(d) | Security was fair valued as of April 30, 2008. Represents 0.02% of net assets. |
| |
(e) | Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 0.02% of total net assets. |
| |
(f) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(g) | Security held as collateral for to be announced securities. |
| |
FHA | — Federal Housing Administration |
IO | — Interest-Only security. Represents 0.09% of net assets. |
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.2% of net assets. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 42 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stock—0.0% |
|
| | | | | | | |
| | Shares or
Principal
Amount($) | | Value($) | |
| |
| |
| |
Consumer Discretionary – 0.0% | | | | | | | |
Tembec, Inc. (a) | | | 937 | | | 3,629 | |
| | | | |
|
| |
Total Common Stock (Cost $18,548) | | | | | | 3,629 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations—95.5% | | | | | | | |
|
|
|
|
|
|
|
|
Advertising – 1.9% | | | | | | | |
Iron Mountain, Inc., 8.63%, 4/1/13,
Callable 4/1/09 @ 100 | | | 100,000 | | | 101,750 | |
Lamar Media Corp., 6.63%, 8/15/15,
Callable 8/15/10 @ 103.31 | | | 50,000 | | | 47,125 | |
R.H. Donnelley Corp., 6.88%, 1/15/13,
Callable 1/15/09 @ 103.44 | | | 100,000 | | | 64,000 | |
R.H. Donnelley Corp., 6.88%, 1/15/13,
Callable 1/15/09 @ 103.44 | | | 90,000 | | | 57,600 | |
| | | | |
|
| |
| | | | | | 270,475 | |
| | | | |
|
| |
Aerospace & Defense – 2.1% | | | | | | | |
DAE Aviation Holdings, Inc., 11.25%,
8/1/15, Callable 8/1/11 @ 105.62 (b) | | | 50,000 | | | 50,813 | |
DRS Technologies, Inc., 7.63%, 2/1/18,
Callable 2/1/11 @ 103.81 | | | 100,000 | | | 102,000 | |
L-3 Communications Holdings, Inc., 5.88%,
1/15/15, Callable 1/15/10 @ 102.94 | | | 100,000 | | | 97,000 | |
TransDigm Group, Inc., 7.75%, 7/15/14,
Callable 7/15/09 @ 105.81 | | | 50,000 | | | 51,125 | |
| | | | |
|
| |
| | | | | | 300,938 | |
| | | | |
|
| |
Apparel Manufacturers – 1.6% | | | | | | | |
Hanesbrands, Inc., 8.20%, 12/15/14,
Callable 12/15/08 @ 102.00 (c) | | | 50,000 | | | 47,125 | |
Levi Strauss & Co., 8.88%, 4/1/16,
Callable 4/1/11 @ 104.44 | | | 50,000 | | | 50,875 | |
Quiksilver, Inc., 6.88%, 4/15/15,
Callable 4/15/10 @ 103.44 | | | 150,000 | | | 124,500 | |
| | | | |
|
| |
| | | | | | 222,500 | |
| | | | |
|
| |
Auto Manufacturers – 2.4% | | | | | | | |
Cooper Tire & Rubber Co.,
8.00%, 12/15/19 | | | 50,000 | | | 47,625 | |
Cooper-Standard Automotive, Inc., 8.38%,
12/15/14, Callable 12/15/09 @ 104.19 | | | 50,000 | | | 41,250 | |
General Motors Corp., 7.13%, 7/15/13 | | | 175,000 | | | 142,625 | |
General Motors Corp., 7.70%, 4/15/16 | | | 50,000 | | | 39,000 | |
The Goodyear Tire & Rubber Co., 8.63%,
12/1/11, Callable 12/1/09 @ 104.31 | | | 17,000 | | | 18,275 | |
TRW Automotive, Inc., 7.25%, 3/15/17 (b) | | | 50,000 | | | 48,687 | |
| | | | |
|
| |
| | | | | | 337,462 | |
| | | | |
|
| |
Automotive & Transport – 0.7% | | | | | | | |
AutoNation, Inc., 7.00%, 4/15/14,
Callable 4/15/09 @ 105.25 | | | 50,000 | | | 46,875 | |
Penske Automotive Group, Inc., 7.75%,
12/15/16, Callable 12/15/11 @ 103.88 | | | 50,000 | | | 45,500 | |
| | | | |
|
| |
| | | | | | 92,375 | |
| | | | |
|
| |
Building & Construction Products – 1.5% | | | | | | | |
Interline Brands, Inc., 8.13%, 6/15/14,
Callable 6/15/10 @ 104.06 | | | 50,000 | | | 48,625 | |
Ply Gem Industries, Inc., 9.00%, 2/15/12,
Callable 2/15/08 @ 102.25 | | | 150,000 | | | 114,750 | |
| | | | | | | |
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Building & Construction Products, continued | | | | | | | |
U.S. Concrete, Inc., 8.38%, 4/1/14,
Callable 4/1/09 @ 104.19 | | | 50,000 | | | 40,500 | |
| | | | |
|
| |
| | | | | | 203,875 | |
| | | | |
|
| |
Cable Television – 3.4% | | | | | | | |
Barrington Broadcasting Group LLC,
10.50%, 8/15/14, Callable 8/15/10
@ 105.25 | | | 50,000 | | | 44,000 | |
Bonten Media Acquisition, 9.00%,
6/1/15, Callable 6/1/11@ 104.50 (b) | | | 75,000 | | | 60,937 | |
Cablevision Systems Corp., 8.00%, 4/15/12 | | | 100,000 | | | 99,500 | |
Charter Communications Operating LLC,
10.88%, 9/15/14, Callable
3/15/12 @ 105.44 (b) | | | 50,000 | | | 52,875 | |
General Cable Technologies Corp.,
7.13%, 4/1/17, Callable 4/1/12 @ 103.56 | | | 50,000 | | | 48,750 | |
Mediacom LLC, 7.88%, 2/15/11 | | | 100,000 | | | 94,500 | |
Quebecor Media, Inc., 7.75%, 3/15/16,
Callable 3/15/11 @ 103.88 | | | 25,000 | | | 24,063 | |
Videotron Ltd., 9.13%, 4/15/18,
Callable 4/15/13 @ 104.56 (b) | | | 50,000 | | | 53,250 | |
| | | | |
|
| |
| | | | | | 477,875 | |
| | | | |
|
| |
Casinos & Gambling – 8.5% | | | | | | | |
Choctaw Resort Development
Entertainment, 7.25%, 11/15/19,
Callable 11/15/11 @ 103.63 (b) | | | 46,000 | | | 40,480 | |
Fontainebleau Las Vegas, 10.25%,
6/15/15, Callable 6/15/11 @ 105.13 (b) | | | 100,000 | | | 71,750 | |
Great Canadian Gaming Co., 7.25%,
2/15/15, Callable 2/15/11 @ 103.63 (b) | | | 50,000 | | | 48,000 | |
Greektown Holdings, Inc., 10.75%,
12/1/13, Callable 12/1/10 @ 105.38 (b) | | | 125,000 | | | 115,000 | |
Herbst Gaming, Inc., 7.00%, 11/15/14,
Callable 11/15/09 @ 103.50 | | | 50,000 | | | 11,000 | |
Indianapolis Downs LLC, 11.00%, 11/1/12,
Callable 11/1/10 @ 105.50 (b) | | | 25,000 | | | 22,500 | |
Inn of the Mountain Gods, 12.00%,
11/15/10, Callable 11/15/08 @ 103.00 | | | 50,000 | | | 43,250 | |
Isle of Capri Casinos, Inc., 7.00%, 3/1/14,
Callable 3/1/09 @ 103.50 | | | 150,000 | | | 115,500 | |
Mashantucket Pequot Tribal Nation,
Series A, 8.50%, 11/15/15,
Callable 11/15/11 @ 104.25 (b) | | | 50,000 | | | 45,438 | |
MGM MIRAGE, Inc., 6.75%, 4/1/13 | | | 100,000 | | | 92,000 | |
Mohegan Tribal Gaming, 7.13%, 8/15/14,
Callable 8/15/09 @ 103.56 | | | 50,000 | | | 42,875 | |
MTR Gaming Group, Inc., 9.00%, 6/1/12,
Callable 6/1/09 @ 104.50 | | | 100,000 | | | 79,500 | |
Pinnacle Entertainment, 7.50%, 6/15/15,
Callable 6/15/11 @ 103.75 (b) | | | 50,000 | | | 41,375 | |
Pokagon Gaming Authority, 10.38%,
6/15/14, Callable 6/15/10 @ 105.19 (b) | | | 69,000 | | | 73,657 | |
San Pasqual Casino, 8.00%, 9/15/13,
Callable 9/15/09 @ 104.00 (b) | | | 25,000 | | | 23,313 | |
Scientific Games Corp., 6.25%, 12/15/12,
Callable 12/15/08 @ 103.13 | | | 50,000 | | | 46,250 | |
| | |
43 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Casinos & Gambling, continued | | | | | | | |
Seminole Hard Rock Entertainment,
5.30%, 3/15/14, Callable 3/15/09
@ 102.00 (b)(c) | | | 50,000 | | | 41,875 | |
Seneca Gaming Corp., 7.25%, 5/1/12,
Callable 5/1/08 @ 103.63 | | | 50,000 | | | 48,312 | |
Shingle Springs, 9.38%, 6/15/15,
Callable 6/15/11@ 104.69 (b) | | | 50,000 | | | 44,250 | |
Turning Stone Resort Casino, 9.13%,
9/15/14, Callable 9/15/10 @ 104.56 (b) | | | 75,000 | | | 73,875 | |
Waterford Gaming LLC, 8.63%, 9/15/14 (b) | | | 23,000 | | | 22,195 | |
Wynn Las Vegas LLC, 6.63%, 12/1/14,
Callable 12/1/09 @ 103.31 (b) | | | 50,000 | | | 48,750 | |
| | | | |
|
| |
| | | | | | 1,191,145 | |
| | | | |
|
| |
Chemicals – 3.2% | | | | | | | |
Georgia Gulf Corp., 9.50%, 10/15/14,
Callable 10/15/10 @ 104.75 | | | 100,000 | | | 84,500 | |
Huntsman International LLC, 7.88%,
11/15/14, Callable 11/15/10 @ 103.94 | | | 35,000 | | | 36,925 | |
Innophos, Inc., 8.88%, 8/15/14,
Callable 8/16/09 @ 104.44 | | | 50,000 | | | 49,750 | |
JohnsonDiversey, Inc., 9.63%, 5/15/12,
Callable 5/15/08 @ 103.21 | | | 100,000 | | | 101,000 | |
Momentive Performance Materials, Inc.,
9.75%, 12/1/14, Callable 12/1/10
@ 104.88 | | | 50,000 | | | 48,500 | |
Mosaic Co., 7.88%, 12/1/16, Callable
12/1/11 @ 103.81 (b) | | | 25,000 | | | 27,375 | |
Nova Chemicals Corp., 6.50%, 1/15/12 | | | 50,000 | | | 47,000 | |
Terra Capital, Inc., 7.00%, 2/1/17,
Callable 2/1/12 @ 103.50 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
| | | | | | 444,800 | |
| | | | |
|
| |
Computer Services – 0.6% | | | | | | | |
Activant Solutions, Inc., 9.50%, 5/1/16,
Callable 5/1/11 @ 104.75 | | | 50,000 | | | 42,000 | |
Unisys Corp., 12.50%, 1/15/16,
Callable 1/15/12 @ 106.25 | | | 35,000 | | | 36,400 | |
| | | | |
|
| |
| | | | | | 78,400 | |
| | | | |
|
| |
Consumer Products – 1.7% | | | | | | | |
Constellation Brands, Inc., 8.38%, 12/15/14 | | | 50,000 | | | 53,000 | |
Sealy Mattress Co., 8.25%, 6/15/14,
Callable 6/15/09 @ 104.13 | | | 50,000 | | | 44,125 | |
Smithfield Foods, Inc., 7.75%, 7/1/17 | | | 50,000 | | | 49,625 | |
Spectrum Brands, Inc., 7.38%, 2/1/15,
Callable 2/1/10 @ 103.69 | | | 75,000 | | | 49,875 | |
Yankee Acquisition Corp., 9.75%,
2/15/17, Callable 2/15/12 @ 104.88 | | | 50,000 | | | 40,125 | |
| | | | |
|
| |
| | | | | | 236,750 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Containers - Paper and Plastic – 2.5% | | | | | | | |
Owens-Brockway Glass Containers, 6.75%,
12/1/14, Callable 12/1/09 @ 103.38 | | | 50,000 | | | 50,750 | |
Solo Cup Co., 8.50%, 2/15/14, Callable
2/15/09 @ 104.25 | | | 200,000 | | | 174,000 | |
Stone Container Finance Co. of Canada,
7.38%, 7/15/14, Callable 7/15/09
@ 103.69 | | | 150,000 | | | 126,000 | |
| | | | |
|
| |
| | | | | | 350,750 | |
| | | | |
|
| |
Cosmetics – 0.4% | | | | | | | |
Chattem, Inc., 7.00%, 3/1/14,
Callable 3/1/09 @ 103.50 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
| | | | | | 49,750 | |
| | | | |
|
| |
Distribution & Wholesale – 1.9% | | | | | | | |
Baker & Taylor, Inc., 11.50%, 7/1/13,
Callable 7/1/10 @ 105.75 (b) | | | 100,000 | | | 90,000 | |
Beverages & More, Inc., 9.25%, 3/1/12,
Callable 9/1/09 @ 104.63 (b) | | | 50,000 | | | 48,500 | |
Central Garden & Pet Co., 9.13%, 2/1/13,
Callable 2/1/09 @ 103.04 | | | 50,000 | | | 42,250 | |
Jarden Corp., 7.50%, 5/1/17, Callable
5/1/12 @ 103.75 | | | 25,000 | | | 23,000 | |
Pegasus Solutions, Inc., 10.50%, 4/15/15,
Callable 4/15/11 @ 105.25 (b) | | | 50,000 | | | 40,000 | |
Pilgrim’s Pride Corp., 8.38%, 5/1/17,
Callable 5/1/12 @ 104.19 | | | 25,000 | | | 22,250 | |
| | | | |
|
| |
| | | | | | 266,000 | |
| | | | |
|
| |
Diversified Operations – 1.7% | | | | | | | |
Bombardier, Inc., 8.00%, 11/15/14,
Callable 11/15/10 @ 104.00 (b) | | | 25,000 | | | 26,625 | |
Koppers Holdings, Inc., 9.88%, 11/15/14,
Callable 11/15/09 @ 104.94 | | | 25,000 | | | 21,875 | |
Snoqualmie Entertainment Authority,
6.94%, 2/1/14, Callable 2/1/09 @
103.00 (b)(c) | | | 25,000 | | | 19,625 | |
Susser Holdings LLC, 10.63%, 12/15/13,
Callable 12/15/09 @ 105.31 | | | 72,000 | | | 73,800 | |
Susser Holdings LLC, 10.63%, 12/15/13,
Callable 12/15/09 @ 105.31 (b) | | | 50,000 | | | 51,250 | |
Trinity Industries, Inc., 6.50%, 3/15/14,
Callable 3/15/09 @ 103.25 | | | 50,000 | | | 49,625 | |
| | | | |
|
| |
| | | | | | 242,800 | |
| | | | |
|
| |
Education – 0.3% | | | | | | | |
Education Management LLC, 10.25%,
6/1/16, Callable 6/1/11 @ 105.13 | | | 25,000 | | | 21,000 | |
Education Management LLC, 8.75%,
6/1/14, Callable 6/1/10 @ 104.38 | | | 25,000 | | | 22,250 | |
| | | | |
|
| |
| | | | | | 43,250 | |
| | | | |
|
| |
Electric – 3.9% | | | | | | | |
AES Corp., 7.75%, 3/1/14 | | | 60,000 | | | 61,500 | |
AES Corp., 7.75%, 10/15/15 | | | 50,000 | | | 51,625 | |
Baldor Electic Co., 8.63%, 2/15/17,
Callable 2/15/12 @ 104.31 | | | 50,000 | | | 51,000 | |
CMS Energy Corp., 6.88%, 12/15/15 | | | 100,000 | | | 100,660 | |
Edison Mission Energy, 7.00%, 5/15/17 | | | 25,000 | | | 25,250 | |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 44 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Electric, continued | | | | | | | |
Edison Mission Energy, 7.20%, 5/15/19 | | | 50,000 | | | 50,375 | |
Energy Future Holdings, 10.88%, 11/1/17,
Callable 11/1/12 @ 105.44 (b) | | | 200,000 | | | 213,000 | |
| | | | |
|
| |
| | | | | | 553,410 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 0.3% | | | | | | | |
Freescale Semiconductor, Inc., 10.13%,
12/15/16, Callable 12/15/11 @ 105.06 | | | 50,000 | | | 39,375 | |
| | | | |
|
| |
Energy – 3.7% | | | | | | | |
Aventine Renewable Energy, Inc.,
10.00%, 4/1/17, Callable 4/1/12
@ 105.00 | | | 50,000 | | | 31,250 | |
Copano Energy LLC, 8.13%, 3/1/16,
Callable 3/1/11 @ 104.06 | | | 80,000 | | | 83,200 | |
Massey Energy Co., 6.88%, 12/15/13,
Callable 12/15/09 @ 103.44 | | | 100,000 | | | 100,000 | |
Mirant North America LLC, 7.38%,
12/31/13, Callable 12/31/09 @ 103.69 | | | 50,000 | | | 51,875 | |
NRG Energy, Inc., 7.38%, 2/1/16,
Callable 2/1/11 @ 103.69 | | | 50,000 | | | 51,500 | |
Reliant Energy, Inc., 7.63%, 6/15/14 | | | 50,000 | | | 52,000 | |
Verasun Energy Corp., 9.88%, 12/15/12,
Callable 12/15/09 @ 104.94 | | | 50,000 | | | 45,875 | |
Williams Cos., Inc., 6.38%, 10/1/10 (b) | | | 100,000 | | | 103,500 | |
| | | | |
|
| |
| | | | | | 519,200 | |
| | | | |
|
| |
Finance – 5.7% | | | | | | | |
Basell AF SCA, 8.38%, 8/15/15, Callable
8/15/10 @ 104.19 (b) | | | 75,000 | | | 54,375 | |
CCM Merger, Inc., 8.00%, 8/1/13, Callable
8/1/09 @ 104.00 (b) | | | 100,000 | | | 86,000 | |
Ford Motor Credit Co., 7.38%, 10/28/09 | | | 250,000 | | | 240,657 | |
Ford Motor Credit Co., 7.38%, 2/1/11 | | | 50,000 | | | 45,973 | |
General Motors Acceptance Corp., 6.88%,
8/28/12 | | | 300,000 | | | 238,002 | |
MSX International, 12.50%, 4/1/12,
Callable 4/1/09 @ 110.00 (b) | | | 25,000 | | | 20,000 | |
Nalco Finance Holdings, Inc., 11.52%,
2/1/14, Callable 2/1/09 @ 104.50* | | | 75,000 | | | 71,625 | |
Nuveen Investments, Inc., 10.50%,
11/15/15, Callable 11/15/11 @ 105.25 (b) | | | 50,000 | | | 48,125 | |
| | | | |
|
| |
| | | | | | 804,757 | |
| | | | |
|
| |
Funeral Services – 0.4% | | | | | | | |
Carriage Services, Inc., 7.88%, 1/15/15,
Callable 1/15/10 @ 103.94 | | | 50,000 | | | 49,750 | |
| | | | |
|
| |
Hotels & Lodging – 0.3% | | | | | | | |
Gaylord Entertainment Co., 8.00%,
11/15/13, Callable 11/15/08 @ 104.00 | | | 50,000 | | | 47,375 | |
| | | | |
|
| |
Internet Related – 0.3% | | | | | | | |
Atlantic Broadband Finance LLC, 9.38%,
1/15/14, Callable 1/15/09 @104.69 | | | 50,000 | | | 46,000 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations, continued | |
| |
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Leisure – 1.0% | | | | | | | |
AMC Entertainment, Inc., 11.00%, 2/1/16,
Callable 2/1/11@ 105.50 | | | 100,000 | | | 99,500 | |
True Temper Sports, Inc., 8.38%, 9/15/11,
Callable 3/15/09 @ 102.09 | | | 50,000 | | | 34,000 | |
| | | | |
|
| |
| | | | | | 133,500 | |
| | | | |
|
| |
Machinery – 0.9% | | | | | | | |
Case New Holland, Inc., 7.13%, 3/1/14,
Callable 3/1/10 @ 103.56 | | | 50,000 | | | 50,250 | |
Sensata Technologies, 8.00%, 5/1/14,
Callable 5/1/10 @ 104.00 | | | 50,000 | | | 46,625 | |
Terex Corp., 8.00%, 11/15/17,
Callable 11/15/12 @ 104.00 | | | 25,000 | | | 25,563 | |
| | | | |
|
| |
| | | | | | 122,438 | |
| | | | |
|
| |
Manufacturing – 1.0% | | | | | | | |
AGY Holding Corp., 11.00%, 11/15/14,
Callable 11/15/10 @ 105.50 (b) | | | 50,000 | | | 45,250 | |
American Railcar Industries, 7.50%, 3/1/14,
Callable 3/1/11 @ 103.75 | | | 25,000 | | | 22,500 | |
Coleman Cable, Inc., 9.88%, 10/1/12,
Callable 10/1/08 @ 104.94 | | | 50,000 | | | 45,750 | |
Libbey Glass, Inc., 11.91%, 6/1/11,
Callable 6/1/08 @ 107.50 (c) | | | 25,000 | | | 25,063 | |
Maax Corp., 9.75%, 6/15/12,
Callable 6/15/08 @ 104.88 | | | 50,000 | | | 7,500 | |
| | | | |
|
| |
| | | | | | 146,063 | |
| | | | |
|
| |
Medical – 2.4% | | | | | | | |
Advanced Medical Optics, 7.50%,
5/1/17, Callable 5/1/12 @ 103.75 | | | 50,000 | | | 45,250 | |
Community Health Systems, Inc., 8.88%,
7/15/15, Callable 7/15/11 @ 104.44 | | | 50,000 | | | 52,000 | |
HCA, Inc., 9.25%, 11/15/16, Callable
11/15/11 @ 104.63 | | | 25,000 | | | 26,875 | |
MultiPlan, Inc., 10.38%, 4/15/16,
Callable 4/15/11 @ 105.19 (b) | | | 100,000 | | | 97,000 | |
Omnicare, Inc., 6.75%, 12/15/13,
Callable 12/15/09 @ 103.38 | | | 100,000 | | | 93,000 | |
ReAble Therapeutics Finance LLC, 10.88%,
11/15/14, Callable 11/15/11 @ 105.44 (b) | | | 25,000 | | | 25,125 | |
| | | | |
|
| |
| | | | | | 339,250 | |
| | | | |
|
| |
Metal Processors & Fabrication – 0.5% | | | | | | | |
TriMas Corp., 9.88%, 6/15/12, Callable
6/15/08 @ 103.292 | | | 77,000 | | | 67,183 | |
| | | | |
|
| |
Metals & Mining – 3.1% | | | | | | | |
AK Steel Corp., 7.75%, 6/15/12, Callable
6/15/08 @ 102.58 | | | 100,000 | | | 102,125 | |
Aleris International, Inc., 10.00%, 12/15/16,
Callable 12/15/11 @ 105.00 | | | 25,000 | | | 15,500 | |
Freeport-McMoran Copper & Gold, Inc.,
8.25%, 4/1/15, Callable 4/1/11 @ 104.13 | | | 50,000 | | | 54,312 | |
Gibraltar Industries, Inc., 8.00%, 12/1/15,
Callable 12/1/10 @ 104.00 | | | 150,000 | | | 122,250 | |
International Coal Group, Inc., 10.25%,
7/15/14, Callable 7/15/10 @ 105.13 | | | 50,000 | | | 50,500 | |
| | |
45 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Metals & Mining, continued | | | | | | | |
Noranda Aluminium Acquisition, 8.74%,
5/15/15, Callable 5/15/08 @ 102.00 (b)(c) | | | 50,000 | | | 42,250 | |
Tube City IMS Corp., 9.75%, 2/1/15,
Callable 2/1/11 @ 104.88 | | | 50,000 | | | 47,750 | |
| | | | |
|
| |
| | | | | | 434,687 | |
| | | | |
|
| |
|
Oil & Gas – 8.7% | | | | | | | |
Chaparral Energy, Inc., 8.50%, 12/1/15,
Callable 12/1/10 @ 104.25 | | | 100,000 | | | 91,000 | |
Chesapeake Energy Corp., 6.88%, 1/15/16,
Callable 1/15/09 @ 103.44 | | | 100,000 | | | 101,000 | |
Cimarex Energy Co., 7.13%, 5/1/17,
Callable 5/1/12 @ 103.56 | | | 100,000 | | | 101,500 | |
Clayton Williams Energy, Inc., 7.75%,
8/1/13, Callable 8/1/09 @ 103.88 | | | 100,000 | | | 93,500 | |
Colorado Interstate Gas Co., 6.80%,
11/15/15 | | | 150,000 | | | 157,541 | |
Compton Petroleum Finance Corp.,
7.63%, 12/1/13, Callable 12/1/09
@ 103.81 | | | 100,000 | | | 98,750 | |
Energy Partners Ltd., 9.75%, 4/15/14,
Callable 4/15/11 @ 104.88 | | | 50,000 | | | 46,250 | |
Forest Oil Corp., 7.25%, 6/15/19,
Callable 6/15/12 @ 103.63 | | | 50,000 | | | 51,625 | |
Inergy LP/Inergy Finance, 8.25%, 3/1/16,
Callable 3/1/11 @ 104.13 | | | 100,000 | | | 102,500 | |
National Oilwell Varco, Inc., Series B,
6.13%, 8/15/15, Callable 8/15/10
@ 103.06 | | | 25,000 | | | 25,600 | |
Newfield Exploration Co., 6.63%, 9/1/14,
Callable 9/1/09 @ 103.31 | | | 100,000 | | | 99,250 | |
Opti Canada, Inc., 7.88%, 12/15/14,
Callable 12/15/10 @ 104.13 | | | 50,000 | | | 50,875 | |
Plains Exploration & Production Co.,
7.75%, 6/15/15, Callable 6/15/11
@ 103.88 | | | 50,000 | | | 51,250 | |
Swift Energy Co., 7.63%, 7/15/11,
Callable 7/15/08 @ 103.81 | | | 50,000 | | | 50,625 | |
Tesoro Corp., 6.50%, 6/1/17,
Callable 6/1/12 @ 103.25 | | | 50,000 | | | 45,875 | |
Tesoro Corp., 6.63%, 11/1/15,
Callable 11/1/10 @ 103.31 | | | 50,000 | | | 47,000 | |
| | | | |
|
| |
| | | | | | 1,214,141 | |
| | | | |
|
| |
|
Paper & Related Products – 2.5% | | | | | | | |
Catalyst Paper Corp., Series D, 8.63%,
6/15/11, Callable 6/15/08 @ 101.44 | | | 50,000 | | | 42,875 | |
Exopack Holding Corp., 11.25%, 2/1/14,
Callable 2/1/10 @ 105.62 | | | 50,000 | | | 47,750 | |
Georgia-Pacific Corp., 7.70%, 6/15/15 | | | 100,000 | | | 100,000 | |
NewPage Corp., 10.00%, 5/1/12,
Callable 5/1/09 @ 106.00 (b) | | | 25,000 | | | 26,687 | |
Norampac, Inc., 6.75%, 6/1/13,
Callable 6/1/08 @ 103.38 | | | 100,000 | | | 86,750 | |
Verso Paper Holdings LLC, Series B,
9.13%, 8/1/14, Callable 8/1/10 @ 104.56 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | 355,687 | |
| | | | |
|
| |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Pipelines – 3.2% | | | | | | | |
Atlas Pipeline Partners LP, 8.13%,
12/15/15, Callable 12/15/10 @ 104.06 | | | 50,000 | | | 51,875 | |
Dynegy Holdings, Inc., 8.38%, 5/1/16 | | | 150,000 | | | 156,375 | |
El Paso Corp., 7.00%, 6/15/17 | | | 100,000 | | | 104,358 | |
Mueller Water Products, Inc., 7.38%,
6/1/17, Callable 6/1/12 @ 103.69 | | | 50,000 | | | 43,500 | |
Semgroup LP, 8.75%, 11/15/15,
Callable 11/15/10 @ 104.38 (b) | | | 50,000 | | | 47,375 | |
Williams Partners LP, 7.25%, 2/1/17 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | 455,108 | |
| | | | |
|
| |
|
Printing & Publishing – 2.6% | | | | | | | |
Block Communications, Inc., 8.25%,
12/15/15, Callable 12/15/10 @ 104.13 (b) | | | 50,000 | | | 47,875 | |
Canwest Mediaworks LP, 9.25%, 8/1/15,
Callable 8/1/11 @ 104.63 (b) | | | 50,000 | | | 45,625 | |
Idearc, Inc., 8.00%, 11/15/16,
Callable 11/15/11 @ 104.00 | | | 50,000 | | | 32,500 | |
Medimedia USA, Inc., 11.38%,
11/15/14, Callable 11/15/09 @ 105.69 (b) | | | 50,000 | | | 51,000 | |
Morris Publishing, 7.00%, 8/1/13,
Callable 8/1/08 @ 103.50 | | | 100,000 | | | 61,500 | |
Sheridan Group, Inc., 10.25%, 8/15/11,
Callable 8/15/08 @ 102.56 | | | 100,000 | | | 92,250 | |
Valassis Communications, Inc., 8.25%,
3/1/15, Callable 3/1/11 @ 104.13 | | | 35,000 | | | 31,150 | |
| | | | |
|
| |
| | | | | | 361,900 | |
| | | | |
|
| |
| | | | | | | |
Rental - Auto and Equipment – 2.2% | | | | | | | |
Avis Budget Car Rental, Inc., 7.63%,
5/15/14, Callable 5/15/10 @ 103.81 | | | 100,000 | | | 91,375 | |
H&E Equipment Services, Inc., 8.38%,
7/15/16, Callable 7/15/11 @ 104.19 | | | 50,000 | | | 43,500 | |
Hertz Corp., 8.88%, 1/1/14, Callable
1/1/10 @104.44 | | | 100,000 | | | 100,750 | |
RSC Equipment Rental, Inc., 9.50%,
12/1/14, Callable 12/1/10 @ 104.75 | | | 50,000 | | | 44,750 | |
United Rentals, Inc., 6.50%, 2/15/12,
Callable 5/22/08 @ 103.25 | | | 25,000 | | | 23,437 | |
| | | | |
|
| |
| | | | | | 303,812 | |
| | | | |
|
| |
|
Restaurants – 2.1% | | | | | | | |
Buffets, Inc., 12.50%, 11/1/14, Callable
11/1/10 @ 106.25 (d) | | | 50,000 | | | 1,250 | |
Dave & Buster’s, Inc., 11.25%, 3/15/14,
Callable 3/15/10 @ 105.62 | | | 50,000 | | | 49,750 | |
Landry’s Restaurants, Inc., 9.50%,
12/15/14, Callable 2/28/09 @ 101.00 (c) | | | 100,000 | | | 97,125 | |
NPC International, Inc., 9.50%, 5/1/14,
Callable 5/1/10 @ 104.75 | | | 50,000 | | | 46,000 | |
Outback Steakhouse, Inc., 10.00%,
6/15/15, Callable 6/15/11 @ 105.00 (b) | | | 75,000 | | | 56,625 | |
Sbarro, Inc., 10.38%, 2/1/15,
Callable 2/1/10 @ 107.78 | | | 50,000 | | | 45,000 | |
| | | | |
|
| |
| | | | | | 295,750 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 46 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Retail – 1.2% | | | | | | | |
Claire’s Stores, Inc., 9.63%, 6/1/15,
Callable 6/1/11 @ 104.81 | | | 50,000 | | | 30,000 | |
Pep Boys, 7.50%, 12/15/14, Callable
12/15/09 @ 103.75 | | | 50,000 | | | 43,500 | |
Stater Bros. Holdings, Inc., 7.75%,
4/15/15, Callable 4/15/11 @ 103.88 | | | 50,000 | | | 50,125 | |
Suburban Propane Partners LP, 6.88%,
12/15/13, Callable 12/15/08 @ 103.44 | | | 50,000 | | | 49,250 | |
| | | | |
|
| |
| | | | | | 172,875 | |
| | | | |
|
| |
|
Seismic Data Collection – 0.4% | | | | | | | |
CIE Gener de Geophysique, 7.50%,
5/15/15, Callable 5/15/10 @ 103.75 | | | 50,000 | | | 51,625 | |
| | | | |
|
| |
| | | | | | | |
Special Purpose Entity – 4.1% | | | | | | | |
Altra Industrial Motion, Inc., 9.00%,
12/1/11, Callable 12/1/08 @ 104.50 | | | 50,000 | | | 49,500 | |
Buffalo Thunder Development Authority,
9.38%, 12/15/14, Callable 12/15/10
@ 104.69 (b) | | | 50,000 | | | 34,000 | |
Cellu Tissue Holdings, Inc., 9.75%,
3/15/10, Callable 5/27/08 @ 103.66 | | | 50,000 | | | 47,750 | |
Chukchansi Economic Development
Authority, 8.00%, 11/15/13, | | | | | | | |
Callable 11/15/09 @ 104.00 (b) | | | 25,000 | | | 22,250 | |
Hawker Beechcraft Acquisition Co.,
8.50%, 4/1/15, Callable 4/1/11 @ 104.25 | | | 50,000 | | | 52,750 | |
Hawker Beechcraft Acquisition Co.,
9.75%, 4/1/17, Callable 4/1/12 @ 104.88 | | | 25,000 | | | 26,375 | |
KAR Holdings, Inc., 8.75%, 5/1/14,
Callable 5/1/10 @ 104.38 | | | 50,000 | | | 48,000 | |
Local TV Finance LLC, 9.25%, 6/15/15,
Callable 6/15/11 @ 104.63 (b) | | | 50,000 | | | 40,000 | |
MCBC Holdings, Inc., 9.09%, 10/15/14,
Callable 10/15/09 @ 103.00 (b)(c) | | | 25,000 | | | 21,250 | |
Petroplus Finance Ltd., 7.00%, 5/1/17,
Callable 5/1/12 @ 103.50 (b) | | | 75,000 | | | 69,750 | |
Rare Restaurant Group LLC, 9.25%,
5/15/14, Callable 5/15/11 @ 104.63 (b) | | | 50,000 | | | 43,000 | |
Regency Energy Partners LP, 8.38%,
12/15/13, Callable 12/15/10 @ 104.19 | | | 17,000 | | | 17,722 | |
Southern Star Central Corp., Inc.,
6.75%, 3/1/16, Callable 3/1/11
@ 103.38 | | | 50,000 | | | 48,125 | |
UCI Holdco, Inc., 10.30%, 12/15/13,
Callable 12/15/08 @ 103 (c) | | | 58,183 | | | 52,947 | |
| | | | |
|
| |
| | | | | | 573,419 | |
| | | | |
|
| |
|
Steel – 0.4% | | | | | | | |
Ryerson, Inc., 12.00%, 11/1/15,
Callable 11/1/11 @ 106.00 (b) | | | 50,000 | | | 49,500 | |
| | | | |
|
| |
|
Telecommunications – 7.6% | | | | | | | |
Broadview Networks Holdings, Inc.,
11.38%, 9/1/12, Callable 9/1/09 @ 105.69 | | | 25,000 | | | 23,875 | |
Centennial Communications Corp.,
10.00%, 1/1/13, Callable 1/1/09
@ 107.50 | | | 100,000 | | | 101,000 | |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Telecommunications, continued | | | | | | | |
Cincinnati Bell, Inc., 8.38%, 1/15/14,
Callable 1/15/09 @ 104.19 | | | 85,000 | | | 84,575 | |
Citizens Communications Co., 7.13%,
3/15/19 | | | 25,000 | | | 23,125 | |
Cricket Communications, 9.38%,
11/1/14, Callable 11/1/10 @ 104.69 | | | 50,000 | | | 49,062 | |
iPCS, Inc., 6.49%, 5/1/14, Callable
5/1/08 @ 102.00 (c) | | | 100,000 | | | 81,000 | |
Level 3 Financing, Inc., 9.25%, 11/1/14,
Callable 11/1/10 @ 104.63 | | | 50,000 | | | 45,500 | |
MetroPCS Wireless, Inc., 9.25%, 11/1/14,
Callable 11/1/10 @ 104.63 | | | 100,000 | | | 98,250 | |
Nordic Telephone Co., Holdings, 8.88%,
5/1/16, Callable 5/1/11 @ 104.44 (b) | | | 50,000 | | | 51,125 | |
NTL Cable PLC, 9.13%, 8/15/16, Callable
8/15/11 @ 104.56 | | | 125,000 | | | 120,625 | |
PAETEC Holding Corp., 9.50%, 7/15/15,
Callable 7/15/11 @ 104.75 | | | 50,000 | | | 47,000 | |
Panamsat Corp., 9.00%, 6/15/16, Callable
6/15/11 @ 104.50 | | | 50,000 | | | 50,437 | |
Qwest Corp., 7.63%, 6/15/15 | | | 100,000 | | | 100,250 | |
Radio One, Inc., 6.38%, 2/15/13, Callable
2/15/09 @ 103.19 | | | 50,000 | | | 37,875 | |
West Corp., 11.00%, 10/15/16, Callable
10/15/11 @ 105.50 | | | 25,000 | | | 22,219 | |
Wind Acquisition Financial SA, 10.75%,
12/1/15, Callable 12/1/10 @ 105.38 (b) | | | 100,000 | | | 107,750 | |
Windstream Corp., 8.63%, 8/1/16,
Callable 8/1/11 @ 104.31 | | | 25,000 | | | 26,188 | |
| | | | |
|
| |
| | | | | | 1,069,856 | |
| | | | |
|
| |
|
Tobacco – 0.2% | | | | | | | |
Alliance One International, Inc., 8.50%,
5/15/12 | | | 25,000 | | | 23,750 | |
| | | | |
|
| |
|
Transportation – 1.0% | | | | | | | |
Bristow Group, Inc., 7.50%, 9/15/17,
Callable 9/15/12 @ 103.75 | | | 50,000 | | | 51,625 | |
Greenbrier Cos., Inc., 8.38%, 5/15/15,
Callable 5/15/10 @ 104.19 | | | 50,000 | | | 47,750 | |
Navios Maritime Holdings, Inc., 9.50%,
12/15/14, Callable 12/15/10 @ 104.75 | | | 30,000 | | | 30,900 | |
Saint Acquisition Corp., 10.82%, 5/15/15,
Callable 5/15/09 @ 102.00 (b)(c) | | | 50,000 | | | 16,500 | |
| | | | |
|
| |
| | | | | | 146,775 | |
| | | | |
|
| |
|
Waste Disposal – 1.4% | | | | | | | |
Allied Waste North America, Inc., 7.38%,
4/15/14, Callable 4/15/09 @ 103.69 | | | 100,000 | | | 100,750 | |
Waste Services, Inc., 9.50%, 4/15/14,
Callable 4/15/09 @ 104.75 | | | 50,000 | | | 49,000 | |
WCA Waste Corp., 9.25%, 6/15/14,
Callable 6/15/10 @ 104.63 | | | 50,000 | | | 50,500 | |
| | | | |
|
| |
| | | | | | 200,250 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $14,318,541) | | | | | | 13,386,581 | |
| | | | |
|
| |
| | |
47 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Northern Institutional Diversified
Assets Portfolio, Shares class, 2.33% (c) | | | 278,127 | | | 278,127 | |
| | | |
| |
TOTAL INVESTMENT COMPANY
(COST $278,128) | | | | | | 278,127 | |
| | | |
| |
TOTAL INVESTMENTS
(COST $14,615,217) — 97.5% | | | . | | | 13,668,337 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $14,021,668. |
| |
* | Represents yield at time of purchase. |
| |
(a) | Represents non-income producing security. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(d) | Non-Income Producing; Defaulted Bond. |
| |
LLC | — Limited Liability Co. |
LP | — Limited Partnership |
PLC | — Public Limited Co. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 48 |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Government and Government Agency Obligations—46.3% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Federal Home Loan Mortgage Corp. – 5.9% | | | | | | | |
Pool #1B2655, 6.19%, 12/1/34 (a)(d) | | | 106,265 | | | 107,187 | |
Pool #1J1313, 6.40%, 6/1/36 (a) | | | 246,528 | | | 252,879 | |
Pool #847557, 6.27%, 7/1/34 (a)(d) | | | 115,465 | | | 116,346 | |
Pool #G02981, 6.00%, 6/1/37 | | | 176,541 | | | 180,766 | |
Pool #G12317, 5.50%, 8/1/21 | | | 164,679 | | | 167,814 | |
| | | | |
|
| |
| | | | | | 824,992 | |
| | | | |
|
| |
Federal National Mortgage Association – 25.6% | | | | | | | |
6.50%, 5/1/35 | | | 550,000 | | | 569,078 | |
Pool #781922, 5.00%, 2/1/21 | | | 342,578 | | | 344,780 | |
Pool #922090, 5.89%, 3/1/37 (a) | | | 270,217 | | | 276,459 | |
TBA May | | | | | | | |
5.50%, 5/15/37 | | | 1,600,000 | | | 1,608,499 | |
6.00%, 5/15/37 | | | 750,000 | | | 766,641 | |
| | | | |
|
| |
| | | | | | 3,565,457 | |
| | | | |
|
| |
Government National Mortgage Association – 1.1% | | | | | | | |
6.00%, 5/15/37 | | | 150,000 | | | 154,078 | |
U.S. Treasury Bonds – 1.5% | | | | | | | |
6.25%, 8/15/23 | | | 170,000 | | | 204,598 | |
U.S. Treasury Notes – 12.2% | | | | | | | |
4.75%, 2/15/10 | | | 340,000 | | | 355,220 | |
4.75%, 1/31/12 | | | 190,000 | | | 203,404 | |
2.88%, 1/31/13 | | | 582,000 | | | 578,226 | |
2.75%, 2/28/13 | | | 250,000 | | | 246,797 | |
4.00%, 2/15/15 | | | 150,000 | | | 156,070 | |
3.50%, 2/15/18 | | | 175,000 | | | 171,281 | |
| | | | |
|
| |
| | | | | | 1,710,998 | |
| | | | |
|
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS (COST $6,491,826) | | | | | | 6,460,123 | |
| | | | |
|
| |
| | | | | | | |
Corporate Obligations—32.1% | | | | | | | |
|
|
|
|
|
|
| |
Banking – 1.5% | | | | | | | |
American Express Centurion Bank,
5.95%, 6/12/17 | | | 100,000 | | | 100,292 | |
Washington Mutual, Inc., 3.20%, 9/17/12 (a) | | | 75,000 | | | 63,715 | |
Washington Mutual Bank NV, 3.31%,
2/4/11 (a) | | | 50,000 | | | 44,182 | |
| | | | |
|
| |
| | | | | | 208,189 | |
| | | | |
|
| |
Building & Construction Products – 1.4% | | | | | | | |
Martin Marietta Materials, Inc., 3.40%,
4/30/10 (a) | | | 100,000 | | | 97,037 | |
Masco Corp., 3.20%, 3/12/10 (a) | | | 100,000 | | | 92,765 | |
| | | | |
|
| |
| | | | | | 189,802 | |
| | | | |
|
| |
Electric – 6.5% | | | | | | | |
Duke Energy Carolinas LLC,
5.10%, 4/15/18 | | | 100,000 | | | 99,374 | |
MidAmerican Energy Co., 5.95%, 7/15/17 | | | 450,000 | | | 469,001 | |
Puget Sound Energy, Inc., 6.97%, 6/1/67,
Callable 6/1/17 @ 100 | | | 100,000 | | | 89,807 | |
Progress Energy, Inc., 3.47%, 11/14/08,
Callable 8/14/08 @ 100 (a) | | | 250,000 | | | 249,061 | |
| | | | |
|
| |
| | | | | | 907,243 | |
| | | | |
|
| |
|
Corporate Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Finance – 5.0% | | | | | | | |
Caterpillar Financial Services
Corp., 5.45%, 4/15/18, MTN | | | 50,000 | | | 50,716 | |
Ford Motor Credit Co., LLC | | | | | | | |
9.75%, 9/15/10 | | | 300,000 | | | 291,450 | |
7.25%, 10/25/11 | | | 25,000 | | | 22,514 | |
Morgan Stanley, Series F, 6.00%,
4/28/15, MTN | | | 50,000 | | | 49,924 | |
Pacific Life Global Funding, 5.15%,
4/15/13 (b) | | | 125,000 | | | 125,120 | |
XTRA Finance Corp., 5.15%, 4/1/17 | | | 150,000 | | | 152,141 | |
| | | | |
|
| |
| | | | | | 691,865 | |
| | | | |
|
| |
Hospitals – 0.6% | | | | | | | |
HCA, Inc., 5.75%, 3/15/14 | | | 100,000 | | | 86,500 | |
| | | | |
|
| |
Media – 4.2% | | | | | | | |
Time Warner Cable, Inc., 5.40%, 7/2/12 | | | 150,000 | | | 150,875 | |
Time Warner Entertainment, 8.88%, 10/1/12 | | | 350,000 | | | 387,849 | |
Vivendi, 5.75%, 4/4/13 (b) | | | 50,000 | | | 48,871 | |
| | | | |
|
| |
| | | | | | 587,595 | |
| | | | |
|
| |
Medical – 1.1% | | | | | | | |
AstraZeneca plc, 5.90%, 9/15/17 | | | 150,000 | | | 158,822 | |
| | | | |
|
| |
Office Equipment & Services – 0.7% | | | | | | | |
Xerox Corp., 3.51%, 12/18/09 (a) | | | 100,000 | | | 98,269 | |
| | | | |
|
| |
Retail – 1.1% | | | | | | | |
Kroger Co. (The), 5.00%, 4/15/13 | | | 25,000 | | | 25,118 | |
Federated Retail Holdings, Inc.,
5.90%, 12/1/16 | | | 150,000 | | | 131,475 | |
| | | | |
|
| |
| | | | | | 156,593 | |
| | | | |
|
| |
Telecommunications – 2.4% | | | | | | | |
Verizon Pennsylvania, Inc., 5.65%, 11/15/11 | . | | 275,000 | | | 279,468 | |
Sprint Nextel Corp., 6.00%, 12/1/16 | | | 60,000 | | | 48,900 | |
| | | | |
|
| |
| | | | | | 328,368 | |
| | | | |
|
| |
Transportation – 7.6% | | | | | | | |
American Airlines, Inc., Series 2001-2 | | | | | | | |
Class A1, 6.98%, 4/1/11 | | | 77,281 | | | 76,122 | |
Class A2, 7.86%, 10/1/11 | | | 200,000 | | | 200,000 | |
Burlington Northern Santa Fe Railway
Co., 4.83%, 1/15/23 | | | 230,919 | | | 215,182 | |
Continental Airlines, Inc., 5.98%, 4/19/22 | . | | 100,000 | | | 87,125 | |
Norfolk Southern Corp., 5.75%, 4/1/18 (b) | . | | 50,000 | | | 50,707 | |
Union Pacific Corp., 5.75%, 11/15/17 | | | 150,000 | | | 151,862 | |
Union Pacific Railroad, 5.08%, 1/2/29 | | | 298,680 | | | 281,804 | |
| | | | |
|
| |
| | | | | | 1,062,802 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $4,541,973) | | | | | | 4,476,048 | |
| | | | |
|
| |
| | |
49 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Asset Backed Securities—9.1% |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Americredit Automobile Receivables
Trust, Series 2005-CF, Class A3,
4.47%, 5/6/10 (d) | | | 22,375 | | | 22,382 | |
Asset Backed Funding Certificates,
Series 2003-AHL1, Class A1,
3.68%, 3/25/33 | | | 210,318 | | | 175,286 | |
Cairn Mezzanine plc, Series 2007-3A,
Class B1, 3.97%, 8/13/47 (a)(b) | | | 145,000 | | | 7,250 | |
Capital Auto Receivables Asset Trust
Series 2006-SN1A, Class A3, 5.31%,
10/20/09 (b)(d) | | | 44,733 | | | 44,837 | |
Series 2007-SN1, Class A3B, 2.78%,
7/15/10 (a)(d) | | | 110,000 | | | 108,809 | |
Countrywide Asset-Backed Certificates,
Series 2006-S4, Class A3, 5.80%,
7/25/34 | | | 210,000 | | | 160,901 | |
GE Business Loan Trust, Series 2006-2A,
Class A, 2.90%, 11/15/34 (a)(b)(d) | | | 243,354 | | | 230,880 | |
GMAC Mortgage Corp., Loan Trust,
Series 2006-HE3, Class A3, 5.81%,
10/25/36 | | | 170,000 | | | 79,170 | |
MBNA Credit Card Master Note Trust,
Series 2005-A7, Class A7, 4.30%, 2/15/11 (d) | | | 120,000 | | | 120,227 | |
Nissan Auto Receivables Owner Trust,
Series 2006-B, Class A3, 5.16%, 2/15/10 (d) | | | 144,880 | | | 145,819 | |
Preferred Term Securities XXII Ltd.,
3.14%, 9/22/36, Callable 6/22/11
@ 100 (a)(b)(d) | | | 197,945 | | | 170,490 | |
| | | | |
|
| |
TOTAL ASSET BACKED SECURITIES
(COST $1,609,865) | | | | | | 1,266,051 | |
| | | | |
|
| |
| | | | | | | |
Collateralized Mortgage Obligations—7.6% | | | | | | | |
|
|
|
|
|
|
| |
Banc of America Mortgage Securities,
Series 2005-D, Class 2A4, 4.78%,
5/25/35 (a) | | | 200,000 | | | 199,105 | |
Deutsche Mortgage Securities, Inc.,
Series 2006-WF1, Class 1A1, 5.08%,
6/26/35 (a)(b) | | | 150,219 | | | 148,527 | |
Freddie Mac | | | | | | | |
Series 2988, Class AF, 3.02%, 6/15/35 (a) | | | 157,691 | | | 151,935 | |
Series 3212, Class BK, 5.40%, 9/15/36 | | | 150,000 | | | 149,119 | |
Morgan Stanley Mortgage Loan Trust,
Series 2006-3AR, Class 2A3, 5.82%,
3/25/36 (a) | | | 255,524 | | | 212,615 | |
Residential Asset Securitization Trust,
Series 2003-A15, Class 1A2, 3.35%,
2/25/34 (a)(d) | | | 242,102 | | | 208,459 | |
| | | | |
|
| |
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(COST $1,149,543) | | | | | | 1,069,760 | |
| | | | |
|
| |
| | | | | | | |
Commercial Mortgage Backed Securities—12.1% | | | | | | | |
|
|
|
|
|
|
| |
Banc of America Commercial Mortgage,
Inc., Series 2006-4, Class A4,
5.54%, 7/10/46 | | | 230,000 | | | 228,791 | |
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2006-T24,
Class A4, 5.43%, 10/12/41 | | | 200,000 | | | 197,723 | |
|
Commercial Mortgage Backed Securities, (continued) |
|
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2007-CD4,
Class A2B, 5.21%, 12/11/49 | | | 200,000 | | | 197,280 | |
Commercial Mortgage Pass-Through
Certificate | | | | | | | |
Series 2006-FL12, Class A2, 2.82%,
12/15/20 (a)(b)(d) | | | 250,256 | | | 238,456 | |
Series 2005-LP5, Class AJ, 5.05%,
5/10/43 | | | 200,000 | | | 182,541 | |
Morgan Stanley Capital I | | | | | | | |
Series 2006-HQ10, Class A4, 5.33%,
11/12/41 | | | 180,000 | | | 175,258 | |
Series 2007-IQ14, Class A2, 5.61%,
4/15/49 | | | 220,000 | | | 219,143 | |
Series 2007-IQ14, Class AM, 5.88%,
4/15/49 (a) | | | 130,000 | | | 119,920 | |
Washington Mutual Commercial Mortgage
Securities Trust, Series 2006-SL1,
Class A, 5.42%, 11/23/43 (a)(b) | | | 146,013 | | | 131,032 | |
| | | | |
|
| |
TOTAL COMMERCIAL MORTGAGE
BACKED SECURITIES
(COST $1,743,743) | | | | | | 1,690,144 | |
| | | | |
|
| |
| | | | | | | |
Foreign Bonds—4.6% | | | | | | | |
|
|
|
|
|
|
| |
Iceland – 1.3% | | | | | | | |
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) | | | 225,000 | | | 188,437 | |
| | | | |
|
| |
Netherlands – 0.6% | | | | | | | |
Shell International Finance BV, 5.20%,
3/22/17 | | | 75,000 | | | 78,186 | |
| | | | |
|
| |
South Korea – 1.8% | | | | | | | |
Citibank Korea, Inc., 4.68%, 6/18/13,
Callable 6/18/08 @ 100 (a) | | | 250,000 | | | 250,409 | |
| | | | |
|
| |
United Kingdom – 0.9% | | | | | | | |
Barclays Bank plc, 5.93%, 12/31/49 (b) | | | 150,000 | | | 126,651 | |
| | | | |
|
| |
TOTAL FOREIGN BONDS
(COST $698,553) | | | | | | 643,683 | |
| | | | |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 50 |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
| | Principal
Amount($) | | Value($) | |
| |
| |
| |
Northern Institutional Diversified
Assets Portfolio, Shares class,
2.33% (c) | | | 1,265,567 | | | 1,265,567 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $1,265,567) | | | | | | 1,265,567 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $17,501,070) — 120.9% | | | | | | 16,871,376 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $13,954,791. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
(d) | Security held as collateral for to be announced securities. |
| |
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.0% of net assets. |
| | |
51 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR GROWTH PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—94.3% |
|
|
| | Shares | | Value($) | |
| |
| |
| |
Aerospace & Defense – 8.1% | | | | | | | |
General Dynamics Corp. | | | 32,600 | | | 2,947,692 | |
Raytheon Co. | | | 23,850 | | | 1,525,685 | |
The Boeing Co. | | | 5,500 | | | 466,730 | |
United Technologies Corp. | | | 23,350 | | | 1,692,174 | |
| | | | |
|
| |
| | | | | | 6,632,281 | |
| | | | |
|
| |
Biotechnology – 4.4% | | | | | | | |
Gilead Sciences, Inc. (a) | | | 70,300 | | | 3,638,728 | |
| | | | |
|
| |
Business Services – 1.3% | | | | | | | |
Fluor Corp. | | | 7,100 | | | 1,085,377 | |
| | | | |
|
| |
Casinos & Gambling – 1.1% | | | | | | | |
International Game Technology | | | 25,150 | | | 873,711 | |
| | | | |
|
| |
Chemicals – 4.4% | | | | | | | |
Monsanto Co. | | | 31,300 | | | 3,568,826 | |
| | | | |
|
| |
Computer Software – 2.7% | | | | | | | |
Adobe Systems, Inc. (a) | | | 22,400 | | | 835,296 | |
Electronic Arts, Inc. (a) | | | 26,350 | | | 1,356,235 | |
| | | | |
|
| |
| | | | | | 2,191,531 | |
| | | | |
|
| |
Computers – 10.0% | | | | | | | |
Apple, Inc. (a) | | | 18,950 | | | 3,296,352 | |
Hewlett-Packard Co. | | | 61,200 | | | 2,836,620 | |
Research In Motion Ltd. (a) | | | 17,250 | | | 2,098,118 | |
| | | | |
|
| |
| | | | | | 8,231,090 | |
| | | | |
|
| |
Consumer Products – 4.0% | | | | | | | |
Colgate-Palmolive Co. | | | 46,300 | | | 3,273,410 | |
| | | | |
|
| |
Diversified Manufacturing Operations – 3.2% | | | | | | | |
Joy Global, Inc. | | | 15,400 | | | 1,143,450 | |
Thermo Fisher Scientific, Inc. (a) | | | 25,000 | | | 1,446,750 | |
| | | | |
|
| |
| | | | | | 2,590,200 | |
| | | | |
|
| |
Electronic Components & Semiconductors – 4.4% | | | | | | | |
Emerson Electric Co. | | | 44,950 | | | 2,349,087 | |
Microchip Technology, Inc. | | | 34,000 | | | 1,249,500 | |
| | | | |
|
| |
| | | | | | 3,598,587 | |
| | | | |
|
| |
Farm Machinery & Equipment – 3.6% | | | | | | | |
Deere & Co. | | | 35,550 | | | 2,988,689 | |
| | | | |
|
| |
Financial Services – 5.7% | | | | | | | |
CME Group, Inc. | | | 5,425 | | | 2,481,666 | |
Goldman Sachs Group, Inc. | | | 5,050 | | | 966,419 | |
Visa, Inc., Class A (a) | | | 14,650 | | | 1,222,542 | |
| | | | |
|
| |
| | | | | | 4,670,627 | |
| | | | |
|
| |
Food & Beverage – 8.8% | | | | | | | |
McDonald’s Corp. | | | 21,500 | | | 1,280,970 | |
PepsiCo, Inc. | | | 10,950 | | | 750,403 | |
The Coca-Cola Co. | | | 56,300 | | | 3,314,381 | |
Wm. Wrigley Jr. Co. | | | 7,350 | | | 559,776 | |
Yum! Brands, Inc. | | | 31,650 | | | 1,287,522 | |
| | | | |
|
| |
| | | | | | 7,193,052 | |
| | | | |
|
| |
Health Care – 5.0% | | | | | | | |
Baxter International, Inc. | | | 27,600 | | | 1,720,032 | |
DENTSPLY International, Inc. | | | 20,800 | | | 808,496 | |
Zimmer Holdings, Inc. (a) | | | 21,100 | | | 1,564,776 | |
| | | | |
|
| |
| | | | | | 4,093,304 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued |
|
|
| | Shares | | Value($) | |
| |
| |
| |
Hotels & Lodging – 1.0% | | | | | | | |
Las Vegas Sands Corp. (a) | | | 11,250 | | | 857,475 | |
| | | | |
|
| |
Industrial Manufacturing – 1.0% | | | | | | | |
The Manitowoc Co., Inc. | | | 22,750 | | | 860,405 | |
| | | | |
|
| |
Insurance – 1.9% | | | | | | | |
AFLAC, Inc. | | | 23,900 | | | 1,593,413 | |
| | | | |
|
| |
Internet Related – 0.7% | | | | | | | |
Google, Inc., Class A (a) | | | 950 | | | 545,576 | |
| | | | |
|
| |
Oil & Gas – 9.5% | | | | | | | |
National-Oilwell Varco, Inc. (a) | | | 6,700 | | | 458,615 | |
Schlumberger Ltd. | | | 26,500 | | | 2,664,575 | |
Smith International, Inc. | | | 40,750 | | | 3,117,782 | |
Weatherford International Ltd. (a) | | | 19,200 | | | 1,548,864 | |
| | | | |
|
| |
| | | | | | 7,789,836 | |
| | | | |
|
| |
Pharmaceuticals – 8.5% | | | | | | | |
Abbott Laboratories | | | 59,300 | | | 3,128,075 | |
Alcon, Inc. ADR | | | 10,350 | | | 1,635,300 | |
Allergan, Inc. | | | 13,350 | | | 752,539 | |
Genentech, Inc. (a) | | | 21,629 | | | 1,475,098 | |
| | | | |
|
| |
| | | | | | 6,991,012 | |
| | | | |
|
| |
Retail – 1.2% | | | | | | | |
Kohl’s Corp. (a) | | | 19,400 | | | 947,690 | |
| | | | |
|
| |
Telecommunications – 3.8% | | | | | | | |
Cisco Systems, Inc. (a) | | | 68,550 | | | 1,757,622 | |
Nokia Corp. ADR | | | 16,150 | | | 485,631 | |
QUALCOMM, Inc. | | | 20,650 | | | 891,873 | |
| | | | |
|
| |
| | | | | | 3,135,126 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $65,310,279) | | | | | | 77,349,946 | |
| | | | |
|
| |
| | | | | | | |
Investment Company—5.4% | | | | | | | |
|
Northern Institutional Diversified Assets
Portfolio, Shares class, 2.33% (b) | | | 4,390,948 | | | 4,390,948 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $4,390,948) | | | | | | 4,390,948 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $69,701,227) — 99.7% | | | | | | 81,740,894 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $82,025,313. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
ADR — American Depositary Receipt |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 52 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
| | | | | | | |
Common Stocks—98.6% | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Australia – 1.0% | | | | | | | |
National Australia Bank Ltd. | | | 59,965 | | | 1,708,825 | |
Zinifex Ltd. | | | 235,900 | | | 2,247,493 | |
| | | | |
|
| |
| | | | | | 3,956,318 | |
| | | | |
|
| |
Austria – 1.0% | | | | | | | |
Voestalpine AG | | | 51,400 | | | 3,952,365 | |
| | | | |
|
| |
Belgium – 1.7% | | | | | | | |
Fortis | | | 176,832 | | | 4,831,551 | |
Solvay SA, Class A | | | 11,700 | | | 1,724,795 | |
| | | | |
|
| |
| | | | | | 6,556,346 | |
| | | | |
|
| |
Brazil – 0.6% | | | | | | | |
Banco Do Brasil SA | | | 60,000 | | | 1,039,899 | |
Usinas Siderurgicas de Minas Gerais SA | | | 27,900 | | | 1,341,524 | |
| | | | |
|
| |
| | | | | | 2,381,423 | |
| | | | |
|
| |
Canada – 4.8% | | | | | | | |
Barrick Gold Corp. | | | 37,500 | | | 1,441,821 | |
Canadian Imperial Bank of Commerce | | | 21,000 | | | 1,547,050 | |
Fairfax Financial Holdings Ltd. | | | 5,200 | | | 1,570,123 | |
Gerdau Ameristeel Corp. | | | 161,000 | | | 2,510,628 | |
HudBay Minerals, Inc. | | | 40,600 | | | 766,190 | |
Industrial Alliance Insurance and Financial
Services, Inc. | | | 26,100 | | | 1,026,838 | |
Inmet Mining Corp. | | | 11,300 | | | 927,637 | |
Petro-Canada | | | 68,200 | | | 3,418,129 | |
Royal Bank of Canada | | | 45,400 | | | 2,165,383 | |
Teck Cominco Ltd., B Shares | | | 64,600 | | | 2,811,653 | |
| | | | |
|
| |
| | | | | | 18,185,452 | |
| | | | |
|
| |
China – 0.2% | | | | | | | |
China Petroleum & Chemical Corp. | | | 592,000 | | | 628,244 | |
| | | | |
|
| |
Finland – 1.8% | | | | | | | |
Nokia Oyj | | | 129,400 | | | 3,984,087 | |
Stora Enso Oyj, R Shares | | | 236,600 | | | 2,940,461 | |
| | | | |
|
| |
| | | | | | 6,924,548 | |
| | | | |
|
| |
France – 11.8% | | | | | | | |
Air France-KLM | | | 28,700 | | | 894,845 | |
BNP Paribas SA | | | 64,580 | | | 6,982,412 | |
Compagnie Generale des Establissements
Michelin, B Shares | | | 39,700 | | | 3,642,787 | |
Credit Agricole SA | | | 142,779 | | | 4,826,251 | |
France Telecom SA | | | 107,200 | | | 3,374,217 | |
Lagardere S.C.A. | | | 46,400 | | | 3,346,213 | |
Renault SA | | | 51,500 | | | 5,310,895 | |
Sanofi-Aventis | | | 68,900 | | | 5,394,830 | |
Societe Generale | | | 35,385 | | | 4,152,347 | |
Societe Generale NV (a) | | | 8,846 | | | 1,024,798 | |
Total SA | | | 72,900 | | | 6,139,403 | |
| | | | |
|
| |
| | | | | | 45,088,998 | |
| | | | |
|
| |
Germany – 13.8% | | | | | | | |
Allianz SE | | | 39,800 | | | 8,116,717 | |
BASF AG | | | 63,600 | | | 9,070,961 | |
Deutsche Bank AG | | | 52,800 | | | 6,355,884 | |
Deutsche Lufthansa AG | | | 162,600 | | | 4,313,220 | |
Deutsche Telekom AG | | | 220,300 | | | 3,969,245 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Germany, continued | | | | | | | |
E.ON AG | | | 38,500 | | | 7,874,440 | |
Infineon Technologies AG (a) | | | 304,300 | | | 2,831,626 | |
Muenchener Rueckversicherungs-
Gesellschaft AG | | | 27,700 | | | 5,362,769 | |
RWE AG | | | 41,300 | | | 4,781,331 | |
| | | | |
|
| |
| | | | | | 52,676,193 | |
| | | | |
|
| |
Hong Kong – 0.4% | | | | | | | |
China Netcom Group Corp., Ltd. | | | 462,000 | | | 1,393,191 | |
| | | | |
|
| |
India – 0.4% | | | | | | | |
State Bank of India GDR | | | 17,600 | | | 1,650,880 | |
| | | | |
|
| |
Italy – 3.0% | | | | | | | |
Buzzi Unicem SpA | | | 42,900 | | | 1,100,481 | |
ENI SpA | | | 189,900 | | | 7,335,206 | |
Fondiaria-SAI SpA | | | 57,900 | | | 2,339,540 | |
Fondiaria-SAI SpA-RNC | | | 18,700 | | | 496,338 | |
| | | | |
|
| |
| | | | | | 11,271,565 | |
| | | | |
|
| |
Japan – 21.6% | | | | | | | |
Alps Electric Co., Ltd. | | | 55,000 | | | 511,542 | |
Canon, Inc. | | | 32,250 | | | 1,612,965 | |
FUJITSU Ltd. | | | 573,000 | | | 3,653,929 | |
Hitachi Ltd. | | | 170,000 | | | 1,146,196 | |
Honda Motor Co., Ltd. | | | 99,000 | | | 3,142,253 | |
JFE Holdings, Inc. | | | 101,600 | | | 5,570,068 | |
Kyushu Electric Power Co., Inc. | | | 101,300 | | | 2,299,394 | |
Mitsubishi Chemical Holdings Corp. | | | 303,000 | | | 2,010,869 | |
Mitsubishi Corp. | | | 129,000 | | | 4,144,080 | |
Mitsubishi UFJ Financial Group, Inc. | | | 645,000 | | | 7,097,047 | |
Mitsui & Co., Ltd. | | | 86,000 | | | 2,018,274 | |
Mitsui Chemicals, Inc. | | | 417,000 | | | 2,542,830 | |
Mitsui O.S.K. Lines Ltd. | | | 327,000 | | | 4,500,693 | |
NAMCO BANDAI Holdings, Inc. | | | 123,800 | | | 1,550,328 | |
Nippon Mining Holdings, Inc. | | | 360,000 | | | 2,226,411 | |
Nippon Steel Corp. | | | 329,000 | | | 1,847,995 | |
Nippon Telegraph & Telephone Corp. | | | 881 | | | 3,796,172 | |
Nippon Yusen Kabushiki Kaisha | | | 152,000 | | | 1,476,580 | |
Nissan Motor Co., Ltd. | | | 534,700 | | | 4,741,689 | |
ORIX Corp. | | | 21,300 | | | 3,843,301 | |
Sharp Corp. | | | 261,000 | | | 4,385,563 | |
Sony Corp. | | | 12,510 | | | 575,145 | |
Sumitomo Mitsui Financial Group, Inc. | | | 731 | | | 6,292,632 | |
The Tokyo Electric Power Co., Inc. | | | 165,200 | | | 4,202,693 | |
Toshiba Corp. | | | 543,000 | | | 4,501,933 | |
Toyota Motor Corp. | | | 56,700 | | | 2,873,992 | |
| | | | |
|
| |
| | | | | | 82,564,574 | |
| | | | |
|
| |
Luxembourg – 1.5% | | | | | | | |
ArcelorMittal | | | 64,352 | | | 5,705,866 | |
| | | | |
|
| |
Netherlands – 4.5% | | | | | | | |
Corporate Express NV | | | 107,400 | | | 1,239,185 | |
ING Groep NV | | | 216,068 | | | 8,268,399 | |
Koninklijke Ahold NV (a) | | | 266,720 | | | 3,964,425 | |
Koninklijke DSM NV | | | 34,900 | | | 1,886,972 | |
Wolters Kluwer NV | | | 70,200 | | | 1,891,758 | |
| | | | |
|
| |
| | | | | | 17,250,739 | |
| | | | |
|
| |
| | |
53 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Norway – 1.5% | | | | | | | |
StatoilHydro ASA | | | 153,100 | | | 5,552,772 | |
| | | | |
|
| |
Russian Federation – 0.6% | | | | | | | |
JSC MMC Norilsk Nickel ADR | | | 32,750 | | | 884,250 | |
LUKOIL ADR | | | 16,550 | | | 1,494,465 | |
| | | | |
|
| |
| | | | | | 2,378,715 | |
| | | | |
|
| |
Singapore – 0.6% | | | | | | | |
Flextronics International Ltd. (a) | | | 104,800 | | | 1,088,872 | |
Neptune Orient Lines Ltd. | | | 427,000 | | | 1,014,192 | |
| | | | |
|
| |
| | | | | | 2,103,064 | |
| | | | |
|
| |
South Africa – 0.5% | | | | | | | |
Sanlam Ltd. | | | 554,040 | | | 1,467,325 | |
Standard Bank Group Ltd. | | | 31,023 | | | 369,728 | |
| | | | |
|
| |
| | | | | | 1,837,053 | |
| | | | |
|
| |
South Korea – 2.1% | | | | | | | |
Honam Petrochemical Corp. | | | 8,100 | | | 719,982 | |
Hynix Semiconductor, Inc. (a) | | | 24,700 | | | 660,375 | |
Hyundai Motor Co., Ltd. | | | 9,500 | | | 801,776 | |
Hyundai Motors Co., Ltd., Second Preferred | | | 15,950 | | | 573,621 | |
Industrial Bank of Korea GDR | | | 88,300 | | | 1,479,025 | |
Kookmin Bank ADR | | | 14,600 | | | 1,018,350 | |
POSCO ADR | | | 11,400 | | | 1,406,760 | |
Samsung Electronics Co., Ltd., Preferred | | | 2,900 | | | 1,492,817 | |
| | | | |
|
| |
| | | | | | 8,152,706 | |
| | | | |
|
| |
Spain – 1.3% | | | | | | | |
Repsol YPF SA | | | 118,600 | | | 4,821,846 | |
| | | | |
|
| |
Sweden – 2.1% | | | | | | | |
Electrolux AB, B Shares | | | 118,500 | | | 1,821,584 | |
Svenska Cellusoa AB (SCA), B Shares | | | 189,700 | | | 3,201,340 | |
Tele2 AB, B Shares | | | 73,400 | | | 1,637,271 | |
Volvo AB, B Shares | | | 86,500 | | | 1,322,453 | |
| | | | |
|
| |
| | | | | | 7,982,648 | |
| | | | |
|
| |
Switzerland – 1.7% | | | | | | | |
Credit Suisse Group | | | 81,100 | | | 4,517,299 | |
Novartis AG | | | 42,460 | | | 2,160,095 | |
| | | | |
|
| |
| | | | | | 6,677,394 | |
| | | | |
|
| |
Taiwan – 1.5% | | | | | | | |
Asustek Computer, Inc. | | | 430,000 | | | 1,395,434 | |
China Steel Corp. GDR | | | 38,878 | | | 1,269,367 | |
Siliconware Precision Industries Co. | | | 707,691 | | | 1,225,006 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | 508,398 | | | 1,113,817 | |
United Microelectronics Corp. | | | 1,094,551 | | | 668,702 | |
| | | | |
|
| |
| | | | | | 5,672,326 | |
| | | | |
|
| |
Thailand – 0.3% | | | | | | | |
PTT Public Co., Ltd. | | | 121,400 | | | 1,279,306 | |
| | | | |
|
| |
United Kingdom – 18.3% | | | | | | | |
Associated British Foods plc | | | 199,300 | | | 3,492,772 | |
Aviva plc | | | 352,191 | | | 4,407,727 | |
BAE Systems plc | | | 251,400 | | | 2,332,868 | |
Barclays plc | | | 457,700 | | | 4,153,960 | |
BP plc | | | 125,000 | | | 1,518,420 | |
British Energy Group plc | | | 277,000 | | | 4,185,372 | |
GlaxoSmithKline plc | | | 259,600 | | | 5,785,634 | |
HBOS plc | | | 373,041 | | | 3,489,449 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
United Kingdom, continued | | | | | | | |
Home Retail Group plc | | | 358,100 | | | 1,879,528 | |
ITV plc | | | 879,270 | | | 1,153,737 | |
Kazakhmys plc | | | 84,600 | | | 2,660,832 | |
Punch Taverns plc | | | 91,000 | | | 938,060 | |
Royal & Sun Alliance Insurance Group plc | | | 776,127 | | | 2,073,828 | |
Royal Bank of Scotland Group plc | | | 1,039,124 | | | 7,127,334 | |
Royal Dutch Shell plc, A Shares | | | 232,387 | | | 9,368,191 | |
Royal Dutch Shell plc, B Shares | | | 45,973 | | | 1,841,699 | |
Taylor Wimpey plc | | | 468,220 | | | 1,198,499 | |
Vodafone Group plc | | | 2,624,658 | | | 8,364,633 | |
Xstrata plc | | | 51,700 | | | 4,055,910 | |
| | | | |
|
| |
| | | | | | 70,028,453 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $329,498,217) | | | | | | 376,672,985 | |
| | | | |
|
| |
| | | | | | | |
Investment Company—0.6% | | | | | | | |
|
Northern Institutional Diversified Assets
Portfolio, Shares class, 2.33% (b) | | | 2,269,283 | | | 2,269,283 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANY
(COST $2,269,283) | | | | | | 2,269,283 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $331,767,500) — 99.2% | | | | | | 378,942,268 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $382,006,984. |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
| |
ADR — American Depositary Receipt |
GDR — Global Depositary Receipt |
PLC — Public Limited Co. |
SPA — Standby Purchase Agreement |
|
Schedule Portfolio Investments—April 30, 2008 |
|
| | | |
Industry | | Percent of Net Assets | |
| |
| |
Aerospace & Defense | | 0.6 | % |
Automotive | | 7.7 | % |
Banking & Financial Services | | 20.6 | % |
Broadcasting | | 0.3 | % |
Building & Construction | | 1.4 | % |
Cash & Cash Equivalents | | 0.6 | % |
Chemicals | | 4.7 | % |
Distribution/Wholesale | | 0.3 | % |
Drugs - Medical | | 3.5 | % |
Electrical | | 7.9 | % |
Electronic Components & Semiconductors | | 4.8 | % |
Food & Beverage | | 0.9 | % |
Import/Export | | 0.5 | % |
Insurance | | 6.6 | % |
Manufacturing | | 3.9 | % |
Metals & Mining | | 8.8 | % |
Oil & Gas | | 12.0 | % |
Paper & Related Products | | 0.8 | % |
Publishing | | 1.4 | % |
Retail | | 1.8 | % |
Telecommunications | | 6.9 | % |
Transportation Services | | 3.2 | % |
| |
| |
Total Investments | | 99.2 | % |
| |
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 54 |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
