Barclays Capital U.S. Aggregate Bond 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.
Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.
Lipper International Large-Cap Value Funds Average is an equally weighted average of 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 value funds typically have a below-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 equally weighted average of 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) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an 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 Large-Cap Growth Funds Average is an equally weighted average of 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) above Lipper’s U.S. Diversified Equity large-cap floor. 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 equally weighted average of 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) below Lipper’s U.S. Diversified Equity large-cap floor. Mid-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 MidCap 400 Index.
MSCI EAFE Index (Europe, Australasia, Far East) 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. The MSCI EAFE Index currently consists 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 that 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 that 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 2000® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2500™ Growth Index is an unmanaged index that 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 that is the most widely used index for mid-sized companies. The S&P MidCap 400 covers over 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.
Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge.
Securities indices assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Funds do not match those in the indices and performance of the Funds will differ. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 3 |
June 3, 2010
To Our Shareholders:
Some calm prevailed in the U.S. financial markets in the first half of our current fiscal year. Signs of economic recovery, which included tentative upticks in consumer spending, housing, and continued very low interest rates soothed investors. After the tumult of the past two-plus years, this tranquility was most welcome. Then, however, the specter of sovereign defaults in the Southern Eurozone countries sparked a significant global sell-off in risk assets and a decline in the Euro, the countries’ common currency.
It reminded us again both of how inter-connected the world economy and markets truly are and of the importance of a global view even if one’s focus is largely on the U.S. market. One of your board’s most important duties is to monitor and analyze fund performance. We are immeasurably aided in this effort by the global MultiManager team of the Funds’ investment adviser, HSBC Global Asset Management (USA), Inc. With staff deployed around the world, they are equipped to assay events like those in the Eurozone area, to find and monitor superior managers, and to translate that into advantage for our fund offerings. In the section labeled “Finding the World’s Most Talented Investment Managers” we describe this valuable resource, which we believe significantly distinguishes our Funds from our competitors’.
Total assets in our Funds have declined slightly—a not-unexpected consequence of record low yields and investors’ somewhat renewed appetite for risk. Total assets declined to $24.9 billion at April 30, 2010, from $31.1 billion six months earlier, paced by a decline in our money market funds to $24.3 billion from $30.5 billion over the same period. Our investment advisor and service providers continue to waive a portion of their fees associated with the money market funds in order to limit expenses and maintain a competitive yield on these funds; these waivers amounted to approximately $13 million for the six months ended April 30, 2010.
Assets in our “long-term” funds, which include the HSBC World Selection Funds and the HSBC Investor equity funds, increased to $568.6 million as of April 30, 2010, from $521.0 million six months earlier. This increase reflects both shareholder activity and the change in value of the Funds’ investments. In general, the Funds performed very well. Of our five equity funds, three were in the top quartile of comparable funds, as measured by Lipper, Inc. for the five year period ended April 30, 2010. The four World Selection Funds converted from the previous LifeLine Funds with new asset allocation models and new underlying investments on January 19, 2010. Performance comparisons for the brief period of time from that date through April 30 are largely irrelevant, but all four funds posted positive returns for this brief period. More information on your funds’ performance is presented in the portfolio managers’ letters in this report.
Our annual report referred to the Jones v Harris Associates case that was then before the U.S. Supreme Court. We were pleased that in its ruling the Court essentially upheld the 25 year-old Gartenberg standard, which confirms the right of boards to set advisory fees.
In the regulatory area, the Securities and Exchange Commission (“SEC”) recently adopted several important amendments to Rule 2a-7, which governs money market funds. The changes, which relate in part to portfolio liquidity and increased transparency for investment holdings, are designed to help ensure that money market funds can meet redemption requirements, especially in a systemic crisis like that which afflicted The Reserve Fund in September 2008, causing it to “break the buck” and delay redemptions. The amendments also afford money market funds and their boards additional tools to help deal with such extraordinary circumstances. We are pleased to report that HSBC Global Asset Management, the investment advisor to the HSBC Investor money market funds, adopted internal investment policies that comply with the SEC’s new liquidity requirements in early 2009—well before they became law.
Also in the regulatory area, the SEC’s mutual fund chief has urged fund companies to consider enhancing their communications with shareholders, a directive we strongly support; we welcome shareholders’ input and suggestions on how we might do so. The SEC also has signaled its intent to review Rule 12b-1, which permits mutual funds to use a portion of their assets to promote sales of fund shares. We support this move and look forward to the Commission’s review.
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4 | HSBC INVESTOR FAMILY OF FUNDS |
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Chairman’s Message (continued) |
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The advisor’s Chief Executive Officer recently retired from HSBC Global Asset Management (USA) Inc. and the Funds’ board of trustees. In light of this development, the independent trustees in April decided to keep the board at its current composition of six independent members.
Those of us who have managed money ourselves and served as fund directors for many years, evaluating the performance of our advisor and sub-advisors, are constantly reminded of how very hard it is to sustain superior investment performance—and how important it is to assure that above average results are being obtained without undue risk.
We believe that we have a great team of investment professionals working on your behalf and pledge our very best effort in seeing that they do their best for you.
Cordially,
Michael Seely
Chairman, HSBC Investor Funds
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Finding the World’s Most Talented Investment Managers |
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Investors are faced with numerous decisions and literally thousands of choices when building their investment portfolio. Allocating among asset classes, investing directly in a security or selecting to invest in a fund, and choosing the right investment manager(s) are just a few of the decisions investors have to make. |
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Successfully choosing among thousands of available investment managers is particularly challenging. It requires expertise, knowledge and continuous access to information. As a result, many investors are turning to professionals to select their investment managers, including their financial advisors and full-time “multimanager” research teams. |
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HSBC Multimanager |
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Multimanager investment professionals research and recommend asset management firms on a full-time basis. They typically analyze numerous important factors, such as philosophy, process, team tenure, risk profiles and performance in order to recommend sound, talented investment management firms and teams. |
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HSBC Multimanager, the dedicated team of specialists within HSBC Global Asset Management, advises the HSBC Investor Equity Funds and the HSBC World Selection Funds. This team is comprised of more than 50 investment professionals in 12 locations around the world*. The members of the Multimanager team focus on specific markets to identity optimal managers within globally diversified portfolios. |
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HSBC Multimanager evaluates each manager’s investment process and the way it is implemented, using both quantitative and qualitative criteria. They aim to select managers with clearly identifiable skills that give them an advantage over their peers. The team also seeks managers that complement each other in a diversified portfolio. Such managers come from a range of firms, including both global firms and specialist boutiques. |
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Investors may want to consider employing the full-time expertise of a multimanager program. The knowledge and expertise of a dedicated team of specialists - who continuously evaluate local and global managers - can be very powerful. We believe HSBC Multimanager can assist investors in evaluating and recommending investment managers in order to help achieve long-term investment objectives. |
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*As of March 2010 |
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HSBC INVESTOR FAMILY OF FUNDS | 5 |
Dear Shareholder,
Welcome to the HSBC Investor Funds semiannual report, covering the period between November 1, 2009 and April 30, 2010. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.
Inside these pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he describes developments in the Funds’ management and structure. The report also provides commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average.
We remain focused on providing value for shareholders. During this period we waived management and servicing fees on the HSBC Investor money market funds. This move enabled the funds to maintain positive yields for investors, despite the historically low level of short-term interest rates. Meanwhile, our Multimanager team continued to monitor the performance of the HSBC Investor equity funds’ sub-advisors and the underlying funds in the World Selection Funds. A description of our Multimanager team is also included as part of this report; we hope you find it to be of interest. We believe that Multimanager’s oversight has helped the Equity and World Selection Funds provide shareholders with competitive returns.
In closing, we would like to thank you for investing through the HSBC Investor Funds. We appreciate the trust you place in us, and will continue working to earn it. Please contact us at any time with questions or concerns.
Sincerely,
Richard A. Fabietti
President
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6 | HSBC INVESTOR FAMILY OF FUNDS |
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Commentary From the Investment Manager |
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HSBC Global Asset Management (USA) Inc.
U.S. Economic Review
The six-month period ended April 30, 2010 began in the midst of a global economic recovery. Aggressive fiscal and monetary stimulus by governments around the world prior to the period laid the groundwork for a rebound. Indeed, the Federal Reserve Board held the federal funds rate at a historically low target range between 0.00% to 0.25%, and maintained that level throughout the period. At the beginning of the six months under review, encouraging corporate earnings results and improving consumer-spending levels suggested the rebound was gaining steam.
The global economic recovery experienced some setbacks during the period, however, primarily because of events in overseas markets such as the United Arab Emirates and the European Union. In the U.A.E., a government-owned holding company involved in prominent real estate projects unexpectedly announced a restructuring of its debt, shaking investor confidence in the credit markets. Later in the period economic difficulties in Greece and certain other E.U. countries spread through Europe, dampening the prospects for recovery in Europe and around the world.
U.S. and international economic data improved as the period progressed. However, as April drew to a close, rising unemployment figures and weakening consumer spending in some international markets led to questions about the stability of the global economic recovery.
Market Review
The economic recovery helped fuel a rally in the financial markets that lasted through much of the six months under review.
Investors early in the period became increasingly comfortable with investing in higher-risk areas of the financial markets, helping to fuel strong performance among emerging markets and small-cap stocks. While small-cap stocks continued to perform well during the period, mounting economic troubles in European countries including Greece, Portugal, Ireland, Italy and Spain halted the rally in international stocks, and emerging-markets stocks in particular resulting in a 2.68% return for the MSCI Europe, Australasia and Far East (EAFE) Index1.
During the period domestic stocks experienced much stronger returns. The S&P 500 Index1 of large-company stocks returned 15.66%, while the Russell 2000® Index1 of small-company stocks returned 28.17%. Early in the period investors were drawn to relatively low stock-market valuations. Subsequently, increased optimism about the strength and breadth of the U.S. economic recovery and improving corporate earnings drove the market’s strong gains.
Among fixed-income securities, the low interest rate environment in the beginning of the period led investors to seek out the additional yield available on higher-risk securities such as corporate bonds. The pursuit of higher yields initially led to low demand for government bonds. Demand increased slightly as the period wore on, but Treasuries still lagged the rest of the fixed-income market for the six months as a whole, in part because of concerns that the U.S. government would have to issue a significant amount of debt to cover the rising federal deficit.
The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad fixed-income market, returned 2.54% for the period, while the Barclays Capital U.S. Corporate High-Yield Bond Index1 returned 11.70%.
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1 | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 7 |
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Portfolio Reviews |
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HSBC Investor Growth Fund |
(Class A Shares, B Shares, C Shares and I Shares)
by Clark J. Winslow, Chief Executive Officer/Portfolio Manager
Justin H. Kelly, CFA, Senior Managing Director/Portfolio Manager
R. Bart Wear, CFA, Senior Managing Director/Portfolio Manager
Winslow Capital Management, Inc. |
The HSBC Investor Growth Fund (the “Fund”) seeks long-term growth of capital. Under normal market conditions, the Fund invests 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” structure, in which the Fund invests all of its investable assets in the HSBC Investor Growth Portfolio (the “Portfolio”). The Portfolio employs Winslow Capital Management, Inc. 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 growth investment style may fall out of favor in the marketplace and result in significant declines in the value of the Portfolio’s securities. Securities of companies considered to be growth investments may have rapid price swings in the event of earnings disappointments or during periods of market, political, regulatory and economics uncertainty.
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 14.75% (without sales charge) for the Class A Shares and 14.94% for the Class I Shares for the six-month period ended April 30, 2010. That compared to a 15.79% return for the Russell 1000® Growth Index1 and a 14.72% return for the Lipper Large-Cap Growth Funds Average1.
Portfolio Performance
Investor nervousness, including concerns over sovereign debt issues in Greece, caused a pullback in the broad market at the start of the year. However, the six-month period ended with strong gains, thanks to indicators pointing to continuing gradual improvement in the economic climate.
The Fund posted a strong absolute performance through the end of the period. The information technology sector made a particularly positive contribution to the Fund’s return, as did the consumer discretionary and industrial sectors. The financial and consumer staples sectors detracted from absolute performance. Nevertheless, the Fund’s position in one of the largest U.S. banks and a wireless technology manufacturer dragged on the Fund’s return.*
The Fund trailed its benchmark modestly during the period under review. Overweight positions in the financial and energy sectors weighed on performance relative to the benchmark.*
The Fund’s overweight position in information technology and an underweight position in consumer staples buoyed its relative performance. Stock selection in the IT sector also contributed positively to relative returns, in particular positions in shares of a major consumer electronics manufacturer and a travel services website. Selection in the materials sector boosted performance against the benchmark as well.*
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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. |
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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8 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Growth Fund - As of April 30, 2010 |
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Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)6 | |
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As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net | |
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HSBC Investor Growth Fund Class A1 | | 5/7/045 | | 9.02 | | | 27.12 | | 4.64 | | 3.95 | | | 1.41 | | | 1.20 | |
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HSBC Investor Growth Fund Class B2 | | 5/7/045 | | 10.30 | | | 28.83 | | 4.93 | | 4.05 | | | 2.16 | | | 1.95 | |
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HSBC Investor Growth Fund Class C3 | | 5/7/045 | | 13.38 | | | 31.94 | | 4.93 | | 4.07 | | | 2.16 | | | 1.95 | |
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HSBC Investor Growth Fund Class I | | 5/7/045 | | 14.94 | | | 34.26 | | 5.98 | | 5.10 | | | 1.16 | | | 0.95 | |
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Russell 1000® Growth Index4 | | — | | 15.79 | | | 38.16 | | 4.05 | | 3.30 | 7 | | N/A | | | N/A | |
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Lipper Large-Cap Growth Funds Average4 | | — | | 14.72 | | | 34.84 | | 3.40 | | 3.05 | 7 | | 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, 2010 through March 1, 2011.
During the fiscal periods ended October 31, 2008 and 2009, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of these payments, the returns for applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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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 | For additional information, please refer to the Glossary of Terms. |
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5 | The HSBC Investor Growth 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 March 1, 2010. |
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7 | Return for the period 5/6/04 to 4/30/10. |
The Fund’s performance is measured against the Russell 1000® Growth Index, an unmanaged index that 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.
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HSBC INVESTOR FAMILY OF FUNDS | 9 |
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Portfolio Reviews |
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HSBC Investor International Equity Fund |
HSBC Investor Overseas Equity Fund |
(Class A Shares, B Shares, and C Shares) |
by Sharon Fay, CFA, Executive Vice President and CIO Global Value Equities |
Kevin Simms, Co-CIO International Equities |
Giulio Martini, Head Currency Team |
Henry D’Auria, CFA, Co-CIO International Equities |
AllianceBernstein L.P. |
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. Under normal market conditions, each Fund invests 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. Each Fund 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 a “master-feeder” structure, in which the Funds invest all of their investable assets in the HSBC Investor International Equity Portfolio (the “Portfolio”). AllianceBernstein L.P., acting through the Bernstein Value Equities Unit (“AllianceBernstein”), serves as the subadviser to the Portfolio and manages its investments.
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, 2010, the Class I Shares of the HSBC Investor International Equity Fund produced a 1.48% return and the Class A Shares of the HSBC Investor Overseas Equity Fund returned 0.95% (without sales charge). That compared to a total return of 2.68% and 2.95% for the Funds’ benchmark, the MSCI EAFE Index1 and the Lipper International Large-Cap Value Funds Average1, respectively.
Portfolio Performance
International markets’ modest gains masked the period’s up-and-down nature. The markets produced strong growth at the start of the period, which gave way to weakness at the beginning of 2010 due to concerns over sovereign debt issues in Greece. Investors’ worries about the stability of the European economy then abated, only to return in April. The result was an upward trend overall, marked by some significant declines.
Cyclical sectors helped the Fund’s absolute return. Capital equipment, consumer cyclical, technology and transportation stocks were solid performers for the six-month period. Consumer staples stocks also fared well—somewhat surprising, because this sector typically lags when cyclical stocks shine.*
The Fund’s sector positioning is a byproduct of bottom-up stock selection. The resulting sector selection caused most of the Fund’s underperformance, relative to its benchmark. Detractors to the Fund’s performance, for the period under review, included underweight positions in the capital equipment and resources sectors, along with an overweight position in telecommunications stocks. The Fund held a smaller position than the benchmark in the consumer staples sector, which also reduced relative returns.*
Regionally, a broadly overweight position in the euro zone, and particularly in European pharmaceuticals stocks, weighed on Fund performance. Underweight positions in Australia and Japan also hindered relative performance, due to currency appreciation in those countries.*
The Fund’s performance benefited from overweight positions in the technology and consumer cyclical sectors. Underweight stakes in the Greek and Spanish markets helped to improve the Fund’s return against its benchmark.*
Stock selection had a positive impact on relative return. In the capital equipment sector, shares of aircraft, automobile and truck manufacturers boosted performance. In the financial sector, regional banks in emerging markets improved relative return. Temporary staffing companies in the consumer cyclical sector also contributed positively to performance against the benchmark index.*
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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. |
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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10 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor International Equity Fund |
HSBC Investor Overseas Equity Fund - As of April 30, 2010 |
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Fund Performance | | | | | | Average Annual Total
Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2010 | | Inception
Date | | Six
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HSBC Investor International Equity Fund Class I*** | | 1/9/95 | | 1.48 | | | 35.76 | | 2.72 | | -0.20 | | | 0.97 | | | 0.97 | |
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HSBC Investor Overseas Equity Fund Class A1 | | 8/26/96 | | -4.19 | | | 24.67 | | 0.21 | | -1.56 | | | 2.52 | | | 1.85 | |
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HSBC Investor Overseas Equity Fund Class B2 | | 1/6/98 | | -3.40 | | | 26.35 | | 0.50 | | -1.52 | | | 3.27 | | | 2.60 | |
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HSBC Investor Overseas Equity Fund Class C3 | | 11/4/98 | | -0.46 | | | 29.36 | | 0.51 | | -1.81 | | | 3.27 | | | 2.60 | |
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MSCI EAFE Index4 | | — | | 2.68 | | | 35.02 | | 4.34 | | 2.05 | | | N/A | | | N/A | |
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Lipper International Large-Cap Value Funds Average4 | | — | | 2.95 | | | 33.19 | | 2.89 | | 3.56 | | | 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, 2010 through March 1, 2011 for the Overseas Equity Fund.
During the fiscal period ended October 31, 2007, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of this payment, the returns for applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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*** | The Class I Shares are issued by HSBC Investor International Equity Fund, a series of HSBC Advisor Funds Trust. |
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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 | 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 March 1, 2010. |
The Fund’s performance is measured against the MSCI EAFE Index (Europe, Australasia, Far East), 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. The MSCI EAFE Index currently consists 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 | 11 |
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Portfolio Reviews |
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HSBC Investor Mid-Cap Fund |
(Class A Shares, B Shares, C Shares and Class I Shares) |
by Tony Y. Dong, CFA, CIO and Lead Manager, Mid-Cap Team |
Geoffrey A. Wilson, CFA, Co-CIO and Senior Portfolio Manager |
Brian S. Matuszak, CFA, Senior Equity Analyst |
Andy Y. Mui, CPA, Senior Equity Analyst |
George L. Sanders II, Senior Equity Research Associate |
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® Index1, or within the range of companies included in the Russell Midcap® Index. The Fund employs Munder Capital Management (“Munder”) 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.
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 21.44% (without sales charge) and 21.71% for the Class I Shares for the six-month period ended April 30, 2010. That compared to 25.78% and 22.64% for the Fund’s benchmarks, the S&P MidCap 400 Index1 and the Lipper Mid-Cap Growth Funds Average1, respectively.
Portfolio Performance
Stocks rallied throughout the period as corporate earnings improved and investors sought the return potential of equities. Mid-cap stocks were among the period’s strongest performers, outpacing large-cap stocks and only marginally trailing small-cap stocks. That environment led to very strong absolute performance for the Fund. More than 80% of the Fund’s portfolio produced positive returns during the period, and more than 75% produced double-digit gains. Among the strongest-performing sectors were telecommunications, information technology and energy.*
Relative to its benchmark, the Fund benefited from overweight positions in the consumer discretionary, energy and utilities sectors. Increased consumer confidence and spending buoyed consumer stocks, while the broad economic rebound benefited energy and utilities shares. An underweight allocation to the health care sector, which underperformed the benchmark, also boosted relative return.*
Stock selection caused the greatest drag on performance. We believed that investors would become more discerning and favor higher-quality stocks during this period, but that did not occur among mid-cap stocks. Indeed, investors in the mid-cap arena favored lower-quality stocks. That trend dragged on relative performance, as we maintained our historical bias toward very high-quality stocks. Many of the best-performing stocks during this period did not meet our rigorous, fundamentals-based screening process, and therefore were not suitable candidates for inclusion within the portfolio.*
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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. |
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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12 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
|
HSBC Investor Mid-Cap Fund - As of April 30, 2010 |
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Fund Performance | | | | | | Average Annual Total
Return (%) | | Expense
Ratio (%)5 | |
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As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | 10
Year† | | Gross | | Net | |
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HSBC Investor Mid-Cap Fund Class A1 | | 7/1/93 | | 15.35 | | 36.59 | | 4.50 | | 1.50 | | 2.21 | | | 1.36 | |
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HSBC Investor Mid-Cap Fund Class B2 | | 7/1/93 | | 17.14 | | 38.63 | | 4.81 | | 1.27 | | 2.96 | | | 2.11 | |
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HSBC Investor Mid-Cap Fund Class C3 | | 7/1/93 | | 20.08 | | 41.60 | | 4.82 | | 1.33 | | 2.96 | | | 2.11 | |
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HSBC Investor Mid-Cap Fund Class I | | 7/1/93 | | 21.71 | | 44.13 | | 5.83 | | 2.26 | | 1.96 | | | 1.11 | |
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S&P MidCap 400 Index4 | | — | | 25.78 | | 48.92 | | 6.89 | | 6.84 | | N/A | | | N/A | |
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Lipper Mid-Cap Growth Funds Average4 | | — | | 22.64 | | 44.36 | | 5.48 | | 0.56 | | 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, 2010 through March 1, 2011.
During the fiscal period ended October 31, 2009, the Fund received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of this payment, the returns for applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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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 Global Asset Management (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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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 | 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 March 1, 2010. |
The Fund’s performance is measured against the Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”), an unmanaged index that is the most widely used index for mid-sized companies. The S&P MidCap 400 covers over 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition. 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 | 13 |
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Portfolio Reviews |
|
HSBC Investor Opportunity Fund |
(Class A Shares, B Shares, C Shares and I Shares) |
by Arthur J. Bauernfeind, Chairman |
William A. Muggia, President, CEO and CIO |
Matthew W. Strobeck, Partner |
Ethan J. Meyers, Partner |
Scott R. Emerman, Partner |
Westfield Capital Management Company, L.P. |
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 Fund 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.1 The Fund may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Fund employs a two-tier structure, commonly referred to as “master-feeder” structure, in which the Fund invests all of its investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management Company, L.P. 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.
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.
The growth investment style may fall out of favor in the marketplace and result in significant declines in the value of the Portfolio’s securities. Securities of companies considered to be growth investments may have rapid price swings in the event of earnings disappointments or during periods of market, political, regulatory and economics uncertainty.
Market Commentary
For the six-month period ended April 30, 2010, the Class I Shares of the HSBC Investor Opportunity Fund produced a 24.27% return, and the Class A Shares of the Fund produced a 23.94% return (without sales charge). The Fund’s benchmarks, the Russell 2500™ Growth Index1 and the Lipper Mid-Cap Growth Funds Average1, returned 25.81% and 22.64%, respectively.
Portfolio Performance
Early in the period, investors appeared skeptical that the recent economic recovery would last. That skepticism gave way to optimism, as emerging evidence seemed to increase the likelihood of a sustained economic recovery. During the period consumer confidence was relatively strong and spending levels increased from their recent lows.
The stock market benefited from this environment, and several sectors posted very strong absolute returns for the six-month period. One top-performing sector was health care, which benefited as investors began to have a better picture of the direction that legislative health care reform would take. In absolute terms, strength in the stock market benefited the Fund’s performance during the six-month period.*
The Fund held a smaller position than its benchmark in the telecommunications services sector. The sector lagged the benchmark, so the Fund’s smaller stake boosted relative performance. Individual holdings in the telecommunications sector also benefited relative performance. The Fund’s industrial holdings also added to its relative performance due to strong stock selection.*
Despite the health care sector’s strong performance, certain health care stocks held by the Fund dragged on the Fund’s performance for the period. The Fund was also hurt by its underweight position in the consumer discretionary sector. We did not believe consumer stocks would perform well during the period, so we maintained a defensive position smaller than that of the Fund’s benchmark. However, the sector performed well, and the underweight position reduced the Fund’s relative 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. |
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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14 | HSBC INVESTOR FAMILY OF FUNDS |
| |
| Portfolio Reviews |
|
HSBC Investor Opportunity Fund - As of April 30, 2010 |
| | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual Total
Return (%) | | Expense
Ratio (%)5 |
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As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | 10
Year | | Gross | | Net |
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HSBC Investor Opportunity Fund Class A1 | | 9/23/96 | | 17.71 | | 40.90 | | 8.74 | | 3.48 | | 2.30 | | 1.65 |
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HSBC Investor Opportunity Fund Class B2 | | 1/6/98 | | 19.39 | | 42.92 | | 9.03 | | 3.54 | | 3.05 | | 2.40 |
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HSBC Investor Opportunity Fund Class C3 | | 11/4/98 | | 22.57 | | 46.16 | | 9.05 | | 3.23 | | 3.05 | | 2.40 |
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HSBC Investor Opportunity Fund Class I*** | | 9/3/96 | | 24.27 | | 49.03 | | 10.23 | | 4.51 | | 1.02 | | 1.02 |
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Russell 2500™ Growth Index4 | | — | | 25.81 | | 47.69 | | 6.55 | | 0.62 | | N/A | | N/A |
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Lipper Mid-Cap Growth Funds Average4 | | — | | 22.64 | | 44.36 | | 5.48 | | 0.56 | | 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, 2010 through March 1, 2011.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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*** | The Class I Shares are issued by a series of HSBC Advisor Funds Trust also named the HSBC Investor Opportunity Fund. |
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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 | 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 March 1, 2010. |
The Fund’s performance is measured against the Russell 2500™ Growth Index, an unmanaged index that 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 | 15 |
|
Portfolio Reviews |
|
HSBC Investor Value Fund |
(Class A Shares, B Shares, C Shares and I Shares)
by Jon D. Bosse, CFA, Co-President and CIO
Craig (Chip) O. Bailey, Jr., Managing Director/Portfolio Manager
NWQ Investment Management Company, LLC |
The HSBC Investor Value Fund (the “Fund”) seeks long-term growth of capital and income. Under normal market conditions, the Fund invests primarily in U.S. and foreign companies with large and medium capitalizations that the subadviser believes possess opportunities underappreciated or misperceived by the market. The Fund utilizes a two-tier structure, commonly known as a “master-feeder” structure, in which the Fund invests all of its investable assets in the HSBC Investor Value Portfolio (the “Portfolio”). 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 13.63% (without sales charge) for the Class A Shares and 13.79% for the Class I Shares for the six-month period ended April 30, 2010. That compared to a 17.77% return for the Russell 1000® Value Index1 and a 14.38% return for the Lipper Large-Cap Core Funds Average1.
Portfolio Performance
The largest contributor to the Fund’s absolute performance was its exposure to financial services stocks. As concerns over the health of the U.S. and global financial system abated, the sector began to rally substantially. The Fund increased its weighting in that sector in early calendar-year 2009, and added further during this period. Previous positions and new investments in that sector positively contributed to the Fund’s performance.*
The Fund’s positions in the technology and healthcare sectors were significant detractors to the Fund’s performance during the period. Two of the Fund’s technology holdings appreciated, but gained much less than the market’s 17.8% increase. However, the third technology holding declined and adversely affected performance. Concerns over the company’s profitability and doubts about its ability to launch a new product successfully adversely affected the company’s valuation. We are confident in the long-term prospects of this company, and used the stock price weakness as an opportunity to add to the position.*
We believe investor concerns surrounding health care legislation adversely impacted the valuations of the Fund’s healthcare holdings. We took advantage of this weakness and added to the Fund’s positions*
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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. |
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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16 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
|
HSBC Investor Value Fund - As of April 30, 2010 |
| | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)6 |
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As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net |
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HSBC Investor Value Fund Class A1 | | 5/7/04 | 5 | 7.91 | | 35.69 | | 2.13 | | 3.93 | | | 1.40 | | 1.20 |
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HSBC Investor Value Fund Class B2 | | 5/7/04 | 5 | 9.19 | | 37.76 | | 2.40 | | 4.03 | | | 2.15 | | 1.95 |
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HSBC Investor Value Fund Class C3 | | 5/7/04 | 5 | 12.20 | | 40.78 | | 2.40 | | 4.03 | | | 2.15 | | 1.95 |
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HSBC Investor Value Fund Class I | | 5/7/04 | 5 | 13.79 | | 43.19 | | 3.43 | | 5.09 | | | 1.15 | | 0.95 |
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Russell 1000® Value Index4 | | — | | 17.77 | | 42.28 | | 1.93 | | 3.76 | 7 | | N/A | | N/A |
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Lipper Large-Cap Core Funds Average4 | | — | | 14.38 | | 36.84 | | 2.55 | | 2.99 | 7 | | 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, 2010 through March 1, 2011.
During the fiscal periods ended October 31, 2008 and 2009, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for applicable periods would have been lower.
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* | Aggregate total return. |
| |
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
| |
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 | 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 March 1, 2010. |
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7 | Return for the period 5/6/04 to 4/30/10. |
The Fund’s performance is measured against the Russell 1000® Value Index, an unmanaged index that 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. 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 | 17 |
(This Page Intentionally Left Blank)
|
Portfolio Reviews |
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Portfolio Composition* |
April 30, 2010 |
(Unaudited) |
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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 | | 40.5 | % | |
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Industrials | | 13.0 | % | |
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Consumer Discretionary | | 10.5 | % | |
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Energy | | 9.0 | % | |
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Health Care | | 9.0 | % | |
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Financials | | 7.1 | % | |
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Consumer Staples | | 4.6 | % | |
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|
Materials | | 3.3 | % | |
|
|
|
|
|
Cash and Equivalents | | 3.0 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC International Equity Portfolio | | | | |
|
|
|
|
|
| | | |
Investment Allocation | | Percentage of Investments at Value | |
|
|
|
|
Europe | | 61.4 | % | |
|
|
|
|
|
Japan | | 23.4 | % | |
|
|
|
|
|
Australia & Far East | | 9.5 | % | |
|
|
|
|
|
Canada | | 4.2 | % | |
|
|
|
|
|
Cash | | 1.0 | % | |
|
|
|
|
|
Other | | 0.5 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC Investor Mid-Cap Fund | | | | |
|
|
|
|
|
| | | | |
Investment Allocation | | Percentage of Investments at Value | |
|
|
|
|
Health Care | | 18.7 | % | |
|
|
|
|
|
Financial Services | | 16.9 | % | |
|
|
|
|
|
Utilities | | 14.7 | % | |
|
|
|
|
|
Consumer Products | | 12.8 | % | |
|
|
|
|
|
Computer Software | | 10.5 | % | |
|
|
|
|
|
Computer Services | | 7.1 | % | |
|
|
|
|
|
Insurance | | 6.0 | % | |
|
|
|
|
|
Electronic Components & Semiconductors | | 4.8 | % | |
|
|
|
|
|
Oil & Gas | | 3.4 | % | |
|
|
|
|
|
Cash and Equivalents | | 2.8 | % | |
|
|
|
|
|
Commercial Services | | 2.3 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC Investor Opportunity Portfolio | | | | |
|
|
|
|
|
| | | | |
Investment Allocation | | Percentage of Investments at Value | |
|
|
|
|
Information Technology | | 22.3 | % | |
|
|
|
|
|
Health Care | | 19.5 | % | |
|
|
|
|
|
Consumer Discretionary | | 14.8 | % | |
|
|
|
|
|
Industrials | | 14.1 | % | |
|
|
|
|
|
Energy | | 11.7 | % | |
|
|
|
|
|
Financials | | 4.8 | % | |
|
|
|
|
|
Materials | | 4.5 | % | |
|
|
|
|
|
Consumer Staples | | 3.4 | % | |
|
|
|
|
|
Cash and Cash Equivalents | | 2.8 | % | |
|
|
|
|
|
Telecommunication Services | | 2.1 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| | | | |
HSBC Investor Value Portfolio | | | | |
|
|
|
|
| | | |
Investment Allocation | | Percentage of Investments at Value | |
|
|
|
|
Financials | | 21.3 | % | |
|
|
|
|
|
Energy | | 17.0 | % | |
|
|
|
|
|
Health Care | | 13.0 | % | |
|
|
|
|
|
Industrials | | 10.3 | % | |
|
|
|
|
|
Information Technology | | 10.1 | % | |
|
|
|
|
|
Materials | | 8.4 | % | |
|
|
|
|
|
Consumer Staples | | 7.8 | % | |
|
|
|
|
|
Consumer Discretionary | | 4.8 | % | |
|
|
|
|
|
Cash and Cash Equivalents | | 3.0 | % | |
|
|
|
|
|
Telecommunication Services | | 2.7 | % | |
|
|
|
|
|
Utilities | | 1.6 | % | |
|
|
|
|
|
Total | | 100.0 | % | |
|
|
|
|
|
| |
* | Portfolio composition is subject to change. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 19 |
|
HSBC INVESTOR MID - CAP FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—98.5% | | | | | | | |
|
| | | | | | | |
| | Shares | | Value ($) | |
| |
| |
| |
Consumer Discretionary – 18.9% | | | | | | | |
Aaron’s, Inc. | | | 5,475 | | | 123,571 | |
BorgWarner, Inc. (a) | | | 7,750 | | | 335,885 | |
CarMax, Inc. (a) | | | 4,600 | | | 113,022 | |
Chipotle Mexican Grill, Inc., Class A (a) | | | 1,800 | | | 242,838 | |
Choice Hotels International, Inc. | | | 4,050 | | | 147,056 | |
DeVry, Inc. | | | 3,450 | | | 215,245 | |
Discovery Communications, Inc., Class A (a) | | | 2,450 | | | 94,815 | |
Discovery Communications, Inc., Class C (a) | | | 3,850 | | | 128,475 | |
GameStop Corp., Class A (a) | | | 10,075 | | | 244,923 | |
Genuine Parts Co. | | | 4,450 | | | 190,460 | |
Guess?, Inc. | | | 2,850 | | | 130,730 | |
Liberty Media-Starz, Series A (a) | | | 3,050 | | | 168,939 | |
LKQ Corp. (a) | | | 15,975 | | | 336,433 | |
New Oriental Education & Technology Group, Inc. ADR (a) | | | 1,950 | | | 182,461 | |
O’Reilly Automotive, Inc. (a) | | | 3,100 | | | 151,559 | |
Regal Entertainment Group, Class A | | | 10,850 | | | 185,318 | |
Tiffany & Co. | | | 2,500 | | | 121,200 | |
Tupperware Brands Corp. | | | 5,000 | | | 255,350 | |
| | | | |
|
| |
| | | | | | 3,368,280 | |
| | | | |
|
| |
Consumer Staples – 3.4% | | | | | | | |
Central European Distribution Corp. (a) | | | 5,925 | | | 205,301 | |
Church & Dwight Co., Inc. | | | 3,300 | | | 228,525 | |
J.M. Smucker Co. (The) | | | 2,950 | | | 180,157 | |
| | | | |
|
| |
| | | | | | 613,983 | |
| | | | |
|
| |
Energy – 7.2% | | | | | | | |
Arena Resources, Inc. (a) | | | 3,900 | | | 144,027 | |
Atlas Energy, Inc. (a) | | | 7,162 | | | 258,405 | |
Atwood Oceanics, Inc. (a) | | | 5,750 | | | 209,357 | |
Core Laboratories N.V. | | | 1,975 | | | 296,033 | |
Denbury Resources, Inc. (a) | | | 11,000 | | | 210,650 | |
Southwestern Energy Co. (a) | | | 4,300 | | | 170,624 | |
| | | | |
|
| |
| | | | | | 1,289,096 | |
| | | | |
|
| |
Financials – 17.2% | | | | | | | |
Affiliated Managers Group, Inc. (a) | | | 3,100 | | | 260,958 | |
Annaly Capital Management, Inc. | | | 11,350 | | | 192,383 | |
Axis Capital Holdings Ltd. | | | 6,150 | | | 191,696 | |
Corporate Office Properties Trust | | | 3,950 | | | 159,778 | |
Digital Realty Trust, Inc. | | | 4,950 | | | 290,565 | |
Eaton Vance Corp. | | | 5,275 | | | 185,891 | |
Essex Property Trust, Inc. | | | 1,800 | | | 190,476 | |
Fifth Third Bancorp | | | 14,850 | | | 221,413 | |
FirstMerit Corp. | | | 10,000 | | | 235,000 | |
Lincoln National Corp. | | | 7,850 | | | 240,131 | |
Macerich Co. (The) | | | 4,842 | | | 216,486 | |
MSCI, Inc., Class A (a) | | | 6,950 | | | 240,817 | |
Proassurance Corp. (a) | | | 4,050 | | | 246,847 | |
Signature Bank (a) | | | 4,850 | | | 195,843 | |
| | | | |
|
| |
| | | | | | 3,068,284 | |
| | | | |
|
| |
Health Care – 10.7% | | | | | | | |
Amedisys, Inc. (a) | | | 3,700 | | | 213,046 | |
BioMarin Pharmaceuticals, Inc. (a) | | | 11,050 | | | 258,238 | |
Catalyst Health Solutions, Inc. (a) | | | 4,500 | | | 190,395 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value ($) | |
| |
| |
| |
Health Care, continued | | | | | | | |
Coventry Health Care, Inc. (a) | | | 400 | | | 9,496 | |
DaVita, Inc. (a) | | | 3,200 | | | 199,776 | |
Haemonetics Corp. (a) | | | 3,100 | | | 179,366 | |
Intuitive Surgical, Inc. (a) | | | 350 | | | 126,196 | |
Laboratory Corp. of America Holdings (a) | | | 2,375 | | | 186,604 | |
Masimo Corp. | | | 3,300 | | | 77,253 | |
ResMed, Inc. (a) | | | 4,300 | | | 294,249 | |
West Pharmaceutical Services, Inc. | | | 4,100 | | | 171,585 | |
| | | | |
|
| |
| | | | | | 1,906,204 | |
| | | | |
|
| |
Industrials – 12.9% | | | | | | | |
AGCO Corp. (a) | | | 1,850 | | | 64,787 | |
American Superconductor Corp. (a) | | | 3,500 | | | 102,130 | |
Eaton Corp. | | | 1,550 | | | 119,598 | |
Elbit Systems Ltd. | | | 900 | | | 55,485 | |
Flowserve Corp. | | | 2,400 | | | 274,992 | |
IHS, Inc., Class A (a) | | | 4,500 | | | 228,015 | |
ITT Corp. | | | 3,100 | | | 172,267 | |
Kansas City Southern (a) | | | 5,800 | | | 235,190 | |
L-3 Communications Holdings, Inc. | | | 1,500 | | | 140,355 | |
Precision Castparts Corp. | | | 900 | | | 115,506 | |
Shaw Group, Inc. (The) (a) | | | 6,750 | | | 258,390 | |
Stericycle, Inc. (a) | | | 3,775 | | | 222,347 | |
URS Corp. (a) | | | 2,750 | | | 141,213 | |
Valmont Industries, Inc. | | | 2,200 | | | 183,238 | |
| | | | |
|
| |
| | | | | | 2,313,513 | |
| | | | |
|
| |
Information Technology – 14.9% | | | | | | | |
Akamai Technologies, Inc. (a) | | | 3,700 | | | 143,671 | |
ARM Holdings plc ADR | | | 18,250 | | | 208,597 | |
Check Point Software Technologies Ltd. (a) | | | 3,700 | | | 131,794 | |
Cognizant Technology Solutions Corp. (a) | | | 5,675 | | | 290,446 | |
Cree, Inc. (a) | | | 3,400 | | | 248,914 | |
FactSet Research Systems, Inc. | | | 2,150 | | | 161,723 | |
Fiserv, Inc. (a) | | | 3,800 | | | 194,142 | |
Itron, Inc. (a) | | | 2,450 | | | 195,045 | |
McAfee, Inc. (a) | | | 3,850 | | | 133,788 | |
Microchip Technology, Inc. | | | 6,750 | | | 197,167 | |
MICROS Systems, Inc. (a) | | | 5,450 | | | 202,522 | |
Solera Holdings, Inc. | | | 5,700 | | | 221,559 | |
Sybase, Inc. (a) | | | 5,000 | | | 216,900 | |
Teradata Corp. (a) | | | 4,250 | | | 123,548 | |
| | | | |
|
| |
| | | | | | 2,669,816 | |
| | | | |
|
| |
Materials – 4.9% | | | | | | | |
Airgas, Inc. | | | 3,900 | | | 247,455 | |
Compass Minerals International, Inc. | | | 2,350 | | | 176,979 | |
Crown Holdings, Inc. (a) | | | 9,700 | | | 252,200 | |
Valspar Corp. (The) | | | 6,350 | | | 198,882 | |
| | | | |
|
| |
| | | | | | 875,516 | |
| | | | |
|
| |
Telecommunication Services – 2.3% | | | | | | | |
American Tower Corp., Class A (a) | | | 5,700 | | | 232,617 | |
NII Holdings, Inc. (a) | | | 4,200 | | | 178,164 | |
| | | | |
|
| |
| | | | | | 410,781 | |
| | | | |
|
| |
| | |
20 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR INVESTOR MID - CAP FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | |
| | Shares | | Value ($) | |
| |
| |
| |
Utilities – 6.1% | | | | | | | |
EQT Corp. | | | 5,625 | | | 244,631 | |
ITC Holdings Corp. | | | 3,525 | | | 196,801 | |
Northeast Utilities | | | 9,125 | | | 253,584 | |
NorthWestern Corp. | | | 7,900 | | | 238,738 | |
Portland General Electric Co. | | | 7,550 | | | 150,094 | |
| | | | |
|
| |
| | | | | | 1,083,848 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $13,919,874) | | | | | | 17,599,321 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—2.8% | | | | | | | |
|
|
|
|
|
|
|
|
Midcap SPDR Trust Series 1 | | | 310 | | | 46,231 | |
Northern Institutional Diversified Assets
Portfolio, Institutional Shares, 0.01% (b) | | | 459,243 | | | 459,243 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $499,405) | | | | | | 505,474 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $14,419,279) – 101.3% | | | | | | 18,104,795 | |
| | | | |
|
| |
| | |
|
| Percentages indicated are based on net assets of $17,874,202. |
|
ADR — | American Depositary Receipt |
plc — | Public Limited Company |
SPDR — | Standard & Poor’s Depositary Receipt |
| | |
(a) | Represents non-income producing security. |
| | |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 21 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Growth
Fund | | International
Equity Fund | | Mid-Cap
Fund | | Opportunity
Fund | | Opportunity
Fund
(Advisor) | |
|
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 63,712,178 | | $ | 178,083,094 | | $ | — | | $ | 12,744,536 | | $ | 117,405,669 | |
Investments in non-affiliates, at value | | | — | | | — | | | 18,104,795 | | | — | | | — | |
Dividends receivable | | | — | | | — | | | 2,876 | | | — | | | — | |
Receivable for capital shares issued | | | 90,822 | | | 49,224 | | | 32,397 | | | 1,819 | | | 67,770 | |
Receivable for investments sold | | | — | | | — | | | 107,828 | | | — | | | — | |
Reclaims receivable | | | — | | | 768,969 | | | — | | | — | | | — | |
Receivable from Investment Adviser | | | ��� | | | — | | | 7,749 | | | 5,368 | | | — | |
Prepaid expenses and other assets | | | 10,620 | | | 9,238 | | | 5,418 | | | 8,581 | | | 2,055 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 63,813,620 | | | 178,910,525 | | | 18,261,063 | | | 12,760,304 | | | 117,475,494 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | | | | |
Payable for investments purchased | | | — | | | — | | | 344,931 | | | — | | | — | |
Payable for capital shares redeemed | | | 105,334 | | | 127,589 | | | 9,317 | | | 9,274 | | | 22,338 | |
Payable to Investment Adviser | | | 490 | | | — | | | — | | | — | | | — | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | — | | | 10,928 | | | — | | | — | |
Administration | | | 1,021 | | | 2,948 | | | 559 | | | 202 | | | 1,882 | |
Distribution | | | 1,097 | | | — | | | 843 | | | 710 | | | — | |
Shareholder Servicing | | | 3,855 | | | — | | | 1,349 | | | 2,632 | | | — | |
Compliance Services | | | 14 | | | 43 | | | — | | | 1 | | | 16 | |
Custodian | | | — | | | — | | | 3,112 | | | — | | | — | |
Transfer Agent | | | 13,090 | | | 5,733 | | | 10,784 | | | 11,800 | | | 2,839 | |
Trustee | | | 51 | | | 193 | | | 13 | | | 11 | | | 83 | |
Other | | | 16,930 | | | 86,395 | | | 5,025 | | | 2,612 | | | 38,373 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 141,882 | | | 222,901 | | | 386,861 | | | 27,242 | | | 65,531 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 63,671,738 | | $ | 178,687,624 | | $ | 17,874,202 | | $ | 12,733,062 | | $ | 117,409,963 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Composition of Net Assets: | | | | | | | | | | | | | | | | |
Capital | | $ | 60,758,719 | | $ | 246,062,540 | | $ | 17,435,431 | | $ | 11,653,621 | | $ | 105,933,500 | |
Accumulated net investment income (loss) | | | (122,704 | ) | | 535,144 | | | 116 | | | (70,263 | ) | | (295,439 | ) |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | (6,738,699 | ) | | (62,743,908 | ) | | (3,246,861 | ) | | (797,072 | ) | | (6,175,526 | ) |
Unrealized appreciation/depreciation from investments and foreign currencies | | | 9,774,422 | | | (5,166,152 | ) | | 3,685,516 | | | 1,946,776 | | | 17,947,428 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 63,671,738 | | $ | 178,687,624 | | $ | 17,874,202 | | $ | 12,733,062 | | $ | 117,409,963 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | 16,594,715 | | $ | — | | $ | 5,225,153 | | $ | 11,607,029 | | $ | — | |
Class B Shares | | | 1,516,380 | | | — | | | 1,328,664 | | | 799,943 | | | — | |
Class C Shares | | | 152,952 | | | — | | | 15,506 | | | 326,090 | | | — | |
Class I Shares | | | 45,407,691 | | | 178,687,624 | | | 11,304,879 | | | — | | | 117,409,963 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total | | $ | 63,671,738 | | $ | 178,687,624 | | $ | 17,874,202 | | $ | 12,733,062 | | $ | 117,409,963 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Shares Outstanding ($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | | | | | | | |
Class A Shares | | | 1,152,952 | | | — | | | 758,029 | | | 1,239,322 | | | — | |
Class B Shares | | | 114,229 | | | — | | | 214,733 | | | 101,720 | | | — | |
Class C Shares | | | 11,450 | | | — | | | 2,477 | | | 40,661 | | | — | |
Class I Shares | | | 3,122,564 | | | 14,699,839 | | | 1,594,152 | | | — | | | 9,514,781 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | | | | | | | |
Class A Shares | | $ | 14.39 | | $ | — | | $ | 6.89 | | $ | 9.37 | | $ | — | |
Class B Shares(a) | | $ | 13.27 | | $ | — | | $ | 6.19 | | $ | 7.86 | | $ | — | |
Class C Shares(a) | | $ | 13.36 | | $ | — | | $ | 6.26 | | $ | 8.02 | | $ | — | |
Class I Shares | | $ | 14.54 | | $ | 12.16 | | $ | 7.09 | | $ | — | | $ | 12.34 | |
Maximum Sales Charge – Class A Shares | | | 5.00 | % | | — | % | | 5.00 | % | | 5.00 | % | | — | % |
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares | | $ | 15.15 | | $ | — | | $ | 7.25 | | $ | 9.86 | | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | | | | | | | $ | 14,419,279 | | | | | | | |
| | | | | | | |
|
| | | | | | | |
| |
|
(a) | Redemption Price per share varies by length of time shares are held. |
| | |
22 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
| | Overseas
Equity Fund | | Value
Fund | |
|
|
|
|
|
|
Assets: | | | | | | | |
Investments in Affiliated Portfolios | | $ | 6,260,482 | | $ | 32,934,431 | |
Receivable for capital shares issued | | | 4,311 | | | 73,247 | |
Reclaims receivable | | | 46,354 | | | — | |
Receivable from Investment Adviser | | | 5,486 | | | 3,246 | |
Prepaid expenses and other assets | | | 9,436 | | | 9,616 | |
| |
|
| |
|
| |
Total Assets | | | 6,326,069 | | | 33,020,540 | |
| |
|
| |
|
| |
Liabilities: | | | | | | | |
Payable for capital shares redeemed | | | 11,589 | | | 124,567 | |
Accrued expenses and other liabilities: | | | | | | | |
Administration | | | 104 | | | 523 | |
Distribution | | | 498 | | | 260 | |
Shareholder Servicing | | | 1,359 | | | 2,786 | |
Compliance Service | | | 6 | | | 68 | |
Transfer Agent | | | 8,969 | | | 11,950 | |
Trustee | | | 8 | | | 24 | |
Other | | | 1,931 | | | 9,123 | |
| |
|
| |
|
| |
Total Liabilities | | | 24,464 | | | 149,301 | |
| |
|
| |
|
| |
Net Assets | | $ | 6,301,605 | | $ | 32,871,239 | |
| |
|
| |
|
| |
| | | | | | | |
Composition of Net Assets: | | | | | | | |
Capital | | $ | 8,939,411 | | $ | 37,276,146 | |
Accumulated net investment income | | | 3,018 | | | 14,104 | |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | (2,456,823 | ) | | (6,028,855 | ) |
Unrealized appreciation/depreciation from investments and foreign currencies | | | (184,001 | ) | | 1,609,844 | |
| |
|
| |
|
| |
Net Assets | | $ | 6,301,605 | | $ | 32,871,239 | |
| |
|
| |
|
| |
| | | | | | | |
Net Assets: | | | | | | | |
Class A Shares | | $ | 5,557,788 | | $ | 12,853,920 | |
Class B Shares | | | 688,077 | | | 324,006 | |
Class C Shares | | | 55,740 | | | 79,746 | |
Class I Shares | | | — | | | 19,613,567 | |
| |
|
| |
|
| |
Total | | $ | 6,301,605 | | $ | 32,871,239 | |
| |
|
| |
|
| |
| | | | | | | |
Shares Outstanding ($0.001 par value, unlimited number of shares authorized): | | | | | | | |
Class A Shares | | | 1,365,363 | | | 1,073,038 | |
Class B Shares | | | 192,558 | | | 28,390 | |
Class C Shares | | | 14,394 | | | 6,940 | |
Class I Shares | | | — | | | 1,640,000 | |
| | | | | | | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | |
Class A Shares | | $ | 4.07 | | $ | 11.98 | |
Class B Shares (a) | | $ | 3.57 | | $ | 11.41 | |
Class C Shares (a) | | $ | 3.87 | | $ | 11.49 | |
Class I Shares | | $ | — | | $ | 11.96 | |
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 | | $ | 4.28 | | $ | 12.61 | |
| |
|
| |
|
| |
| |
|
(a) | Redemption Price per share varies by length of time shares are held. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 23 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Operations—For the six months ended April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | | | | |
| | Growth
Fund | | International
Equity Fund | | Mid-Cap
Fund | | Opportunity
Fund | | Opportunity
Fund
(Advisor) | |
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | | | | |
Dividends | | $ | — | | $ | — | | $ | 98,859 | | $ | — | | $ | — | |
Investment Income from Affiliated Portfolios (a) | | | 196,523 | | | 2,041,984 | | | — | | | 26,372 | | | 244,178 | |
Tax reclaims from Affiliated Portfolios (a) | | | — | | | (18,605 | ) | | — | | | — | | | — | |
Foreign tax withholding from Affiliated Portfolios (a) | | | — | | | (184,458 | ) | | — | | | — | | | — | |
Expenses from Affiliated Portfolios (a) | | | (202,767 | ) | | (775,590 | ) | | — | | | (52,075 | ) | | (482,120 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | (6,244 | ) | | 1,063,331 | | | 98,859 | | | (25,703 | ) | | (237,942 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Investment Management | | | — | | | — | | | 58,139 | | | — | | | — | |
Administration: | | | | | | | | | | | | | | | | |
Class A Shares | | | 1,603 | | | 17,940 | | | 917 | | | 1,048 | | | 10,837 | |
Class B Shares | | | 188 | | | — | | | 291 | | | 93 | | | — | |
Class C Shares | | | 14 | | | — | | | 4 | | | 30 | | | — | |
Class I Shares | | | 4,170 | | | — | | | 1,836 | | | — | | | — | |
Distribution: | | | | | | | | | | | | | | | | |
Class B Shares | | | 7,133 | | | — | | | 5,538 | | | 3,502 | | | — | |
Class C Shares | | | 534 | | | — | | | 53 | | | 1,131 | | | — | |
Shareholder Servicing: | | | | | | | | | | | | | | | | |
Class A Shares | | | 20,286 | | | — | | | 5,819 | | | 10,947 | | | — | |
Class B Shares | | | 2,377 | | | — | | | 1,846 | | | 1,167 | | | — | |
Class C Shares | | | 178 | | | — | | | 18 | | | 377 | | | — | |
Accounting | | | 11,872 | | | 4,465 | | | 28,580 | | | 9,428 | | | 4,465 | |
Compliance Services | | | 126 | | | 387 | | | 65 | | | 23 | | | 222 | |
Custodian | | | — | | | — | | | 3,238 | | | — | | | — | |
Printing | | | 9,852 | | | 15,602 | | | 2,484 | | | 1,917 | | | 16,163 | |
Professional | | | 2,001 | | | 3,566 | | | 1,525 | | | 1,344 | | | 2,577 | |
Transfer Agent | | | 40,109 | | | 17,189 | | | 32,072 | | | 31,586 | | | 19,203 | |
Trustee | | | 380 | | | 1,143 | | | 196 | | | 73 | | | 659 | |
Registration fees | | | 15,982 | | | 2,322 | | | 3,382 | | | 14,056 | | | 760 | |
Other | | | 1,639 | | | 3,975 | | | 818 | | | 293 | | | 2,611 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 118,444 | | | 66,589 | | | 146,821 | | | 77,015 | | | 57,497 | |
Fees reimbursed by Investment Adviser | | | (1,984 | ) | | — | | | (48,078 | ) | | (32,455 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Net Expenses | | | 116,460 | | | 66,589 | | | 98,743 | | | 44,560 | | | 57,497 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
Net Investment Income (Loss) | | | (122,704 | ) | | 996,742 | | | 116 | | | (70,263 | ) | | (295,439 | ) |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | | | | | | | |
Net realized gains (losses) from investments and foreign currency transactions | | | 2,825,276 | | | (2,712,014 | ) | | 433,391 | | | 774,259 | | | 6,974,558 | |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 5,648,255 | | | 4,738,328 | | | 2,512,609 | | | 1,833,704 | | | 17,120,665 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | |
Net realized/unrealized gains from investments and foreign currency transactions | | | 8,473,531 | | | 2,026,314 | | | 2,946,000 | | | 2,607,963 | | | 24,095,223 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 8,350,827 | | $ | 3,023,056 | | $ | 2,946,116 | | $ | 2,537,700 | | $ | 23,799,784 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
| | |
24 | 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, 2010 (Unaudited) (continued) |
| | | | | | | |
| | Overseas
Equity Fund | | Value
Fund | |
|
|
|
|
|
|
Investment Income: | | | | | | | |
Investment Income from Affiliated Portfolios (a) | | $ | 74,672 | | $ | 239,131 | |
Tax reclaims from Affiliated Portfolios (a) | | | (4,828 | ) | | — | |
Foreign tax withholding from Affiliated Portfolios (a) | | | (6,693 | ) | | (948 | ) |
Expenses from Affiliated Portfolios (a) | | | (28,344 | ) | | (103,542 | ) |
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 34,807 | | | 134,641 | |
| |
|
| |
|
| |
| | | | | | | |
Expenses: | | | | | | | |
Administration: | | | | | | | |
Class A Shares | | | 569 | | | 1,257 | |
Class B Shares | | | 85 | | | 39 | |
Class C Shares | | | 4 | | | 8 | |
Class I Shares | | | — | | | 1,791 | |
Distribution: | | | | | | | |
Class B Shares | | | 3,209 | | | 1,488 | |
Class C Shares | | | 219 | | | 285 | |
Shareholder Servicing: | | | | | | | |
Class A Shares | | | 7,176 | | | 15,863 | |
Class B Shares | | | 1,070 | | | 496 | |
Class C Shares | | | 73 | | | 95 | |
Accounting | | | 9,428 | | | 11,903 | |
Compliance Services | | | 18 | | | 72 | |
Printing | | | 1,150 | | | 5,130 | |
Professional | | | 1,275 | | | 1,611 | |
Transfer Agent | | | 24,186 | | | 32,071 | |
Trustee | | | 45 | | | 198 | |
Registration fees | | | 12,835 | | | 7,858 | |
Other | | | 246 | | | 826 | |
| |
|
| |
|
| |
Total expenses before fee reductions | | | 61,588 | | | 80,991 | |
Fees reduced by Investment Adviser | | | (29,799 | ) | | (16,741 | ) |
| |
|
| |
|
| |
Net Expenses | | | 31,789 | | | 64,250 | |
| |
|
| |
|
| |
| | | | | | | |
Net Investment Income (Loss) | | | 3,018 | | | 70,391 | |
| |
|
| |
|
| |
| | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | |
Net realized losses from investments and foreign currency transactions | | | (61,118 | ) | | (204,452 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 146,640 | | | 4,169,646 | |
| |
|
| |
|
| |
| | | | | | | |
Net realized/unrealized gains from investments and foreign currency transactions | | | 85,522 | | | 3,965,194 | |
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 88,540 | | $ | 4,035,585 | |
| |
|
| |
|
| |
| |
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 25 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Changes in Net Assets |
| | | | | | | |
| | Growth Fund | |
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
Investment Activities: | | | | | | | |
Operations: | | | | | | | |
Net investment income (loss) | | $ | (122,704 | ) | $ | (106,102 | ) |
Net realized gains (losses) from investments transactions | | | 2,825,276 | | | (9,717,237 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 5,648,255 | | | 18,612,853 | |
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 8,350,827 | | | 8,789,514 | |
| |
|
| |
|
| |
|
Dividends: | | | | | | | |
| | | | | | | |
Net realized gains: | | | | | | | |
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (2,154,257 | ) | | (10,272,668 | ) |
| |
|
| |
|
| |
Change in net assets | | | 6,196,570 | | | (1,483,154 | ) |
| | | | | | | |
Net Assets: | | | | | | | |
Beginning of period | | | 57,475,168 | | | 58,958,322 | |
| |
|
| |
|
| |
End of period | | $ | 63,671,738 | | $ | 57,475,168 | |
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (122,704 | ) | $ | — | |
| |
|
| |
|
| |
| | |
26 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | |
| | Growth Fund |
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | |
Class A Shares: | | | | | | | |
Proceeds from shares issued | | $ | 1,017,783 | | $ | 1,225,814 | |
Value of shares redeemed | | | (2,586,160 | ) | | (5,063,199 | ) |
| |
|
| |
|
| |
Class A Shares capital transactions | | | (1,568,377 | ) | | (3,837,385 | ) |
| |
|
| |
|
| |
Class B Shares: | | | | | | | |
Proceeds from shares issued | | | 24,735 | | | 66,339 | |
Value of shares redeemed | | | (839,301 | ) | | (1,164,836 | ) |
| |
|
| |
|
| |
Class B Shares capital transactions | | | (814,566 | ) | | (1,098,497 | ) |
| |
|
| |
|
| |
Class C Shares: | | | | | | | |
Proceeds from shares issued | | | 14,602 | | | 36,704 | |
Value of shares redeemed | | | (49 | ) | | (5,976 | ) |
| |
|
| |
|
| |
Class C Shares capital transactions | | | 14,553 | | | 30,728 | |
| |
|
| |
|
| |
Class I Shares: | | | | | | | |
Proceeds from shares issued | | | 5,030,377 | | | 4,547,877 | |
Value of shares redeemed | | | (4,816,244 | ) | | (9,915,391 | ) |
| |
|
| |
|
| |
Class I Shares capital transactions | | | 214,133 | | | (5,367,514 | ) |
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (2,154,257 | ) | $ | (10,272,668 | ) |
| |
|
| |
|
| |
|
SHARE TRANSACTIONS: | | | | | | | |
Class A Shares: | | | | | | | |
Issued | | | 72,744 | | | 112,735 | |
Redeemed | | | (187,780 | ) | | (472,708 | ) |
| |
|
| |
|
| |
Change in Class A Shares | | | (115,036 | ) | | (359,973 | ) |
| |
|
| |
|
| |
Class B Shares: | | | | | | | |
Issued | | | 1,938 | | | 6,818 | |
Redeemed | | | (65,181 | ) | | (117,668 | ) |
| |
|
| |
|
| |
Change in Class B Shares | | | (63,243 | ) | | (110,850 | ) |
| |
|
| |
|
| |
Class C Shares: | | | | | | | |
Issued | | | 1,156 | | | 3,677 | |
Redeemed | | | (4 | ) | | (631 | ) |
| |
|
| |
|
| |
Change in Class C Shares | | | 1,152 | | | 3,046 | |
| |
|
| |
|
| |
Class I Shares: | | | | | | | |
Issued | | | 357,063 | | | 418,087 | |
Redeemed | | | (349,129 | ) | | (961,622 | ) |
| |
|
| |
|
| |
Change in Class I Shares | | | 7,934 | | | (543,535 | ) |
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 27 |
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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 996,742 | | $ | 3,354,935 | | $ | 116 | | $ | 37,965 | |
Net realized gains (losses) from investments transactions | | | (2,712,014 | ) | | (59,981,220 | ) | | 433,391 | | | (3,509,959 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 4,738,328 | | | 90,089,864 | | | 2,512,609 | | | 5,026,011 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 3,023,056 | | | 33,463,579 | | | 2,946,116 | | | 1,554,017 | |
| |
|
| |
|
| |
|
| |
|
| |
|
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | (5,190 | ) | | — | |
Class I Shares | | | (2,826,752 | ) | | (7,354,738 | ) | | (32,775 | ) | | — | |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | — | | | (294,264 | ) |
Class B Shares | | | — | | | — | | | — | | | (174,161 | ) |
Class C Shares | | | — | | | — | | | — | | | (1,041 | ) |
Class I Shares | | | — | | | (8,461,420 | ) | | — | | | (681,038 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (2,826,752 | ) | | (15,816,158 | ) | | (37,965 | ) | | (1,150,504 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (1,750,822 | ) | | 1,541,373 | | | 1,761,746 | | | (3,850,002 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (1,554,518 | ) | | 19,188,794 | | | 4,669,897 | | | (3,446,489 | ) |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 180,242,142 | | | 161,053,348 | | | 13,204,305 | | | 16,650,794 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 178,687,624 | | $ | 180,242,142 | | $ | 17,874,202 | | $ | 13,204,305 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 535,144 | | $ | 2,365,154 | | $ | 116 | | $ | 37,965 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
28 | 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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | — | | $ | — | | $ | 486,489 | | $ | 566,784 | |
Dividends reinvested | | | — | | | — | | | 5,110 | | | 290,977 | |
Value of shares redeemed | | | — | | | — | | | (358,259 | ) | | (541,791 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | — | | | — | | | 133,340 | | | 315,970 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 30,059 | | | 82,819 | |
Dividends reinvested | | | — | | | — | | | — | | | 169,310 | |
Value of shares redeemed | | | — | | | — | | | (559,265 | ) | | (686,734 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | — | | | — | | | (529,206 | ) | | (434,605 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | — | | | 11 | |
Dividends reinvested | | | — | | | — | | | — | | | 1,041 | |
Value of shares redeemed | | | — | | | — | | | — | | | (508 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | — | | | — | | | — | | | 544 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 13,682,822 | | | 26,914,666 | | | 3,278,971 | | | 341,422 | |
Dividends reinvested | | | 2,134,231 | | | 11,845,280 | | | 21,153 | | | 462,791 | |
Value of shares redeemed | | | (17,567,875 | ) | | (37,218,573 | ) | | (1,142,512 | ) | | (4,536,124 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | (1,750,822 | ) | | 1,541,373 | | | 2,157,612 | | | (3,731,911 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (1,750,822 | ) | $ | 1,541,373 | | $ | 1,761,746 | | $ | (3,850,002 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 76,538 | | | 116,639 | |
Reinvested | | | — | | | — | | | 830 | | | 65,535 | |
Redeemed | | | — | | | — | | | (56,333 | ) | | (111,962 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | — | | | — | | | 21,035 | | | 70,212 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 5,092 | | | 18,945 | |
Reinvested | | | — | | | — | | | — | | | 42,117 | |
Redeemed | | | — | | | — | | | (98,139 | ) | | (154,800 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | — | | | — | | | (93,047 | ) | | (93,738 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Reinvested | | | — | | | — | | | — | | | 256 | |
Redeemed | | | — | | | — | | | — | | | (138 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | — | | | — | | | — | | | 118 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | 1,109,648 | | | 2,374,315 | | | 498,632 | | | 70,062 | |
Reinvested | | | 173,656 | | | 1,323,495 | | | 3,342 | | | 101,267 | |
Redeemed | | | (1,410,087 | ) | | (3,874,180 | ) | | (177,307 | ) | | (911,670 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | (126,783 | ) | | (176,370 | ) | | 324,667 | | | (740,341 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 29 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Opportunity Fund | | Opportunity Fund (Advisor) |
|
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (70,263 | ) | $ | (112,648 | ) | $ | (295,439 | ) | $ | (434,015 | ) |
Net realized gains (losses) from investments transactions | | | 774,259 | | | (1,474,598 | ) | | 6,974,558 | | | (12,341,854 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 1,833,704 | | | 2,899,270 | | | 17,120,665 | | | 24,564,409 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 2,537,700 | | | 1,312,024 | | | 23,799,784 | | | 11,788,540 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | — | | | (539,992 | ) | | — | | | — | |
Class B Shares | | | — | | | (107,053 | ) | | — | | | — | |
Class C Shares | | | — | | | (13,420 | ) | | — | | | — | |
Class I Shares | | | — | | | — | | | — | | | (2,746,629 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | — | | | (660,465 | ) | | — | | | (2,746,629 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (841,068 | ) | | (981,801 | ) | | (6,675,120 | ) | | (6,597,185 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 1,696,632 | | | (330,242 | ) | | 17,124,664 | | | 2,444,726 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 11,036,430 | | | 11,366,672 | | | 100,285,299 | | | 97,840,573 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 12,733,062 | | $ | 11,036,430 | | $ | 117,409,963 | | $ | 100,285,299 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (70,263 | ) | $ | — | | $ | (295,439 | ) | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
30 | 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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 667,361 | | $ | 1,180,248 | | $ | — | | $ | — | |
Dividends reinvested | | | — | | | 537,467 | | | — | | | — | |
Value of shares redeemed | | | (1,018,937 | ) | | (2,263,523 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (351,576 | ) | | (545,808 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 35,911 | | | 66,965 | | | — | | | — | |
Dividends reinvested | | | — | | | 106,455 | | | — | | | — | |
Value of shares redeemed | | | (521,176 | ) | | (667,369 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | (485,265 | ) | | (493,949 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 3,500 | | | 54,586 | | | — | | | — | |
Dividends reinvested | | | — | | | 13,420 | | | — | | | — | |
Value of shares redeemed | | | (7,727 | ) | | (10,050 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (4,227 | ) | | 57,956 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 6,325,221 | | | 9,048,783 | |
Dividends reinvested | | | — | | | — | | | — | | | 2,020,969 | |
Value of shares redeemed | | | — | | | — | | | (13,000,341 | ) | | (17,666,937 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Advisor Shares capital transactions | | | — | | | — | | | (6,675,120 | ) | | (6,597,185 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (841,068 | ) | $ | (981,801 | ) | $ | (6,675,120 | ) | $ | (6,597,185 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 77,147 | | | 173,171 | | | — | | | — | |
Reinvested | | | — | | | 95,805 | | | — | | | — | |
Redeemed | | | (119,906 | ) | | (340,092 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | (42,759 | ) | | (71,116 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 4,824 | | | 12,358 | | | — | | | — | |
Reinvested | | | — | | | 22,363 | | | — | | | — | |
Redeemed | | | (73,050 | ) | | (123,288 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | (68,226 | ) | | (88,567 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 510 | | | 9,847 | | | — | | | — | |
Reinvested | | | — | | | 2,768 | | | — | | | — | |
Redeemed | | | (980 | ) | | (1,959 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | (470 | ) | | 10,656 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 560,900 | | | 1,063,736 | |
Reinvested | | | — | | | — | | | — | | | 275,712 | |
Redeemed | | | — | | | — | | | (1,148,334 | ) | | (2,220,201 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Advisor Shares | | | — | | | — | | | (587,434 | ) | | (880,753 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 31 |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Overseas Equity Fund | | Value Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 3,018 | | $ | 96,154 | | $ | 70,391 | | $ | 294,429 | |
Net realized gains (losses) from investments transactions | | | (61,118 | ) | | (2,354,316 | ) | | (204,452 | ) | | (1,353,212 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 146,640 | | | 3,553,124 | | | 4,169,646 | | | 5,610,790 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 88,540 | | | 1,294,962 | | | 4,035,585 | | | 4,552,007 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (97,964 | ) | | (374,072 | ) | | (21,112 | ) | | (155,138 | ) |
Class B Shares | | | (10,236 | ) | | (62,669 | ) | | — | | | (2,255 | ) |
Class C Shares | | | (616 | ) | | (2,972 | ) | | — | | | (298 | ) |
Class I Shares | | | — | | | — | | | (50,023 | ) | | (232,742 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | — | | | (2,912,698 | ) | | — | | | — | |
Class B Shares | | | — | | | (617,230 | ) | | — | | | — | |
Class C Shares | | | — | | | (28,817 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (108,816 | ) | | (3,998,458 | ) | | (71,135 | ) | | (390,433 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (636,647 | ) | | 1,710,202 | | | (1,109,742 | ) | | (7,588,940 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (656,923 | ) | | (993,294 | ) | | 2,854,708 | | | (3,427,366 | ) |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 6,958,528 | | | 7,951,822 | | | 30,016,531 | | | 33,443,897 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 6,301,605 | | $ | 6,958,528 | | $ | 32,871,239 | | $ | 30,016,531 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Accumulated net investment income (loss) | | $ | 3,018 | | $ | 108,816 | | $ | 14,104 | | $ | 14,848 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
32 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
HSBC INVESTOR FAMILY OF FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Overseas Equity Fund | | Value Fund | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 385,780 | | $ | 405,226 | | $ | 440,327 | | $ | 493,761 | |
Dividends reinvested | | | 97,142 | | | 3,262,709 | | | 20,936 | | | 154,141 | |
Value of shares redeemed | | | (841,006 | ) | | (2,210,404 | ) | | (1,985,782 | ) | | (4,681,860 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (358,084 | ) | | 1,457,531 | | | (1,524,519 | ) | | (4,033,958 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 7,495 | | | 33,259 | | | 5,897 | | | 13,994 | |
Dividends reinvested | | | 10,191 | | | 667,369 | | | — | | | 2,250 | |
Value of shares redeemed | | | (294,363 | ) | | (468,176 | ) | | (200,762 | ) | | (336,758 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | (276,677 | ) | | 232,452 | | | (194,865 | ) | | (320,514 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Dividends reinvested | | | 616 | | | 31,789 | | | — | | | 298 | |
Value of shares redeemed | | | (2,502 | ) | | (11,570 | ) | | (850 | ) | | (5,546 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (1,886 | ) | | 20,219 | | | (850 | ) | | (5,248 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | — | | | 2,505,176 | | | 2,374,352 | |
Dividends reinvested | | | — | | | — | | | 45,028 | | | 209,767 | |
Value of shares redeemed | | | — | | | — | | | (1,939,712 | ) | | (5,813,339 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | — | | | — | | | 610,492 | | | (3,229,220 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (636,647 | ) | $ | 1,710,202 | | $ | (1,109,742 | ) | $ | (7,588,940 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 92,782 | | | 108,012 | | | 38,523 | | | 53,511 | |
Reinvested | | | 23,521 | | | 1,049,103 | | | 1,853 | | | 17,816 | |
Redeemed | | | (200,928 | ) | | (553,300 | ) | | (174,310 | ) | | (529,179 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | (84,625 | ) | | 603,815 | | | (133,934 | ) | | (457,852 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 2,169 | | | 8,391 | | | 552 | | | 1,659 | |
Reinvested | | | 2,807 | | | 243,565 | | | — | | | 274 | |
Redeemed | | | (80,279 | ) | | (153,763 | ) | | (18,396 | ) | | (39,815 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | (75,303 | ) | | 98,193 | | | (17,844 | ) | | (37,882 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares: | | | | | | | | | | | | | |
Reinvested | | | 156 | | | 10,703 | | | — | | | 36 | |
Redeemed | | | (639 | ) | | (3,505 | ) | | (80 | ) | | (751 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | (483 | ) | | 7,198 | | | (80 | ) | | (715 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares: | | | | | | | | | | | | | |
Issued | | | — | | | — | | | 218,140 | | | 249,723 | |
Reinvested | | | — | | | — | | | 3,995 | | | 24,319 | |
Redeemed | | | — | | | — | | | (170,221 | ) | | (677,423 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class I Shares | | | — | | | — | | | 51,914 | | | (403,381 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 33 |
|
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 | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 12.55 | | | 0.03 | | | 1.59 | | | 1.62 | | | (0.05 | ) | | — | | | (0.05 | ) | | | $ | 14.12 | | |
Year Ended October 31, 2006 | | | | 14.12 | | | (0.02 | )* | | 0.99 | | | 0.97 | | | — | | | (0.23 | ) | | (0.23 | ) | | | | 14.86 | | |
Year Ended October 31, 2007 | | | | 14.86 | | | — | *(f) | | 4.23 | | | 4.23 | | | (0.01 | ) | | (1.13 | ) | | (1.14 | ) | | | | 17.95 | | |
Year Ended October 31, 2008 | | | | 17.95 | | | (0.05 | )* | | (6.51 | ) | | (6.56 | ) | | — | | | (0.84 | ) | | (0.84 | ) | | | | 10.55 | | |
Year Ended October 31, 2009 | | | | 10.55 | | | (0.04 | )* | | 2.03 | | | 1.99 | | | — | | | — | | | — | | | | | 12.54 | | |
Six Months Ended April 30, 2010
(Unaudited) | | | | 12.54 | | | (0.04 | )* | | 1.89 | | | 1.85 | | | — | | | — | | | — | | | | | 14.39 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 12.11 | | | (0.07 | ) | | 1.53 | | | 1.46 | | | — | | | — | | | — | | | | $ | 13.57 | | |
Year Ended October 31, 2006 | | | | 13.57 | | | (0.12 | )* | | 0.95 | | | 0.83 | | | — | | | (0.23 | ) | | (0.23 | ) | | | | 14.17 | | |
Year Ended October 31, 2007 | | | | 14.17 | | | (0.11 | )* | | 3.99 | | | 3.88 | | | — | | | (1.13 | ) | | (1.13 | ) | | | | 16.92 | | |
Year Ended October 31, 2008 | | | | 16.92 | | | (0.16 | )* | | (6.07 | ) | | (6.23 | ) | | — | | | (0.84 | ) | | (0.84 | ) | | | | 9.85 | | |
Year Ended October 31, 2009 | | | | 9.85 | | | (0.10 | )* | | 1.85 | | | 1.75 | | | — | | | — | | | — | | | | | 11.60 | | |
Six Months Ended April 30, 2010
(Unaudited) | | | | 11.61 | | | (0.08 | )* | | 1.74 | | | 1.66 | | | — | | | — | | | — | | | | | 13.27 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 12.17 | | | (0.07 | ) | | 1.54 | | | 1.47 | | | — | | | — | | | — | | | | $ | 13.64 | | |
Year Ended October 31, 2006 | | | | 13.64 | | | (0.16 | )* | | 0.99 | | | 0.83 | | | — | | | (0.23 | ) | | (0.23 | ) | | | | 14.24 | | |
Year Ended October 31, 2007 | | | | 14.24 | | | (0.11 | )* | | 4.02 | | | 3.91 | | | — | | | (1.13 | ) | | (1.13 | ) | | | | 17.02 | | |
Year Ended October 31, 2008 | | | | 17.02 | | | (0.16 | )* | | (6.11 | ) | | (6.27 | ) | | — | | | (0.84 | ) | | (0.84 | ) | | | | 9.91 | | |
Year Ended October 31, 2009 | | | | 9.91 | | | (0.12 | )* | | 1.89 | | | 1.77 | | | — | | | — | | | — | | | | | 11.68 | | |
Six Months Ended April 30, 2010
(Unaudited) | | | | 11.68 | | | (0.08 | )* | | 1.76 | | | 1.68 | | | — | | | — | | | — | | | | | 13.36 | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 12.55 | | | 0.06 | | | 1.59 | | | 1.65 | | | (0.08 | ) | | — | | | (0.08 | ) | | | $ | 14.12 | | |
Year Ended October 31, 2006 | | | | 14.12 | | | 0.02 | * | | 0.99 | | | 1.01 | | | — | | | (0.23 | ) | | (0.23 | ) | | | | 14.90 | | |
Year Ended October 31, 2007 | | | | 14.90 | | | 0.03 | * | | 4.24 | | | 4.27 | | | (0.02 | ) | | (1.13 | ) | | (1.15 | ) | | | | 18.02 | | |
Year Ended October 31, 2008 | | | | 18.02 | | | (0.02 | )* | | (6.54 | ) | | (6.56 | ) | | — | | | (0.84 | ) | | (0.84 | ) | | | | 10.62 | | |
Year Ended October 31, 2009 | | | | 10.62 | | | (0.01 | )* | | 2.04 | | | 2.03 | | | — | | | — | | | — | | | | | 12.65 | | |
Six Months Ended April 30, 2010
(Unaudited) | | | | 12.65 | | | (0.02 | )* | | 1.91 | | | 1.89 | | | — | | | — | | | — | | | | | 14.54 | | |
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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(b)(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 12.91 | %(g) | | | $ | 21,866 | | | 1.15 | %(g) | | 0.19 | %(g) | | 1.35 | % | | 79.54 | % | |
Year Ended October 31, 2006 | | 6.92 | % | | | | 21,985 | | | 1.20 | % | | (0.14 | )% | | 1.44 | % | | 75.06 | % | |
Year Ended October 31, 2007 | | 30.45 | %(h) | | | | 30,858 | | | 1.11 | %(h) | | (0.03 | )%(h) | | 1.22 | % | | 57.04 | % | |
Year Ended October 31, 2008 | | (38.23 | )%(i) | | | | 17,180 | | | 1.20 | % | | (0.36 | )% | | 1.22 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 18.86 | %(j) | | | | 15,896 | | | 1.20 | % | | (0.33 | )% | | 1.31 | % | | 65.67 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 14.75 | % | | | | 16,595 | | | 1.20 | % | | (0.55 | )% | | 1.21 | % | | 42.87 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 12.06 | %(g) | | | $ | 1,317 | | | 1.90 | %(g) | | (0.48 | )%(g) | | 2.09 | % | | 79.54 | % | |
Year Ended October 31, 2006 | | 6.16 | % | | | | 1,446 | | | 1.95 | % | | (0.88 | )% | | 2.19 | % | | 75.06 | % | |
Year Ended October 31, 2007 | | 29.43 | %(h) | | | | 1,630 | | | 1.86 | %(h) | | (0.78 | )%(h) | | 1.98 | % | | 57.04 | % | |
Year Ended October 31, 2008 | | (38.62 | )%(i) | | | | 2,839 | | | 1.95 | % | | (1.20 | )% | | 1.96 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 17.87 | %(j) | | | | 2,059 | | | 1.95 | % | | (1.06 | )% | | 2.06 | % | | 65.67 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 14.30 | % | | | | 1,516 | | | 1.95 | % | | (1.29 | )% | | 1.96 | % | | 42.87 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 12.08 | %(g) | | | $ | 344 | | | 1.90 | %(g) | | (0.51 | )%(g) | | 2.10 | % | | 79.54 | % | |
Year Ended October 31, 2006 | | 6.13 | % | | | | 270 | | | 1.95 | % | | (0.89 | )% | | 2.18 | % | | 75.06 | % | |
Year Ended October 31, 2007 | | 29.49 | %(h) | | | | 98 | | | 1.86 | %(h) | | (0.79 | )%(h) | | 1.96 | % | | 57.04 | % | |
Year Ended October 31, 2008 | | (38.63 | )%(i) | | | | 72 | | | 1.95 | % | | (1.13 | )% | | 1.97 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 17.86 | %(j) | | | | 120 | | | 1.95 | % | | (1.12 | )% | | 2.05 | % | | 65.67 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 14.38 | % | | | | 153 | | | 1.95 | % | | (1.31 | )% | | 1.96 | % | | 42.87 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 13.17 | %(g) | | | $ | 13,107 | | | 0.90 | %(g) | | 0.56 | %(g) | | 1.07 | % | | 79.54 | % | |
Year Ended October 31, 2006 | | 7.21 | % | | | | 15,042 | | | 0.95 | % | | 0.12 | % | | 1.19 | % | | 75.06 | % | |
Year Ended October 31, 2007 | | 30.73 | %(h) | | | | 30,295 | | | 0.87 | %(h) | | 0.20 | %(h) | | 0.96 | % | | 57.04 | % | |
Year Ended October 31, 2008 | | (38.07 | )%(i) | | | | 38,868 | | | 0.95 | % | | (0.16 | )% | | 0.97 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 19.11 | %(j) | | | | 39,400 | | | 0.95 | % | | (0.08 | )% | | 1.06 | % | | 65.67 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 14.94 | % | | | | 45,408 | | | 0.95 | % | | (0.31 | )% | | 0.96 | % | | 42.87 | % | |
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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 Growth 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 each 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. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
| |
(f) | Represents less than $0.005 or $(0.005). |
| |
(g) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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 (including the Fund) 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. |
| |
(i) | During the year ended October 31, 2008, the respective Portfolio in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(j) | During the year ended October 31, 2009, the respective Portfolio in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.50%, 0.54%, 0.53% and 0.49% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
34 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
|
HSBC INVESTOR ADVISORS 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
(Loss) | | Net Realized
and Unrealized
Gains
(Losses) from
Investments | | Total from
Investment
Activities | | Net
Investment
Income | | Net
Realized
Gains from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 14.87 | | | 0.31 | | | 2.59 | | | 2.90 | | | (0.23 | ) | | — | | | (0.23 | ) | | | $ | 17.54 | | |
Year Ended October 31, 2006 | | | | 17.54 | | | 0.38 | | | 5.14 | | | 5.52 | | | (0.36 | ) | | (0.60 | ) | | (0.96 | ) | | | | 22.10 | | |
Year Ended October 31, 2007 | | | | 22.10 | | | 0.50 | | | 4.69 | | | 5.19 | | | (0.55 | ) | | (1.84 | ) | | (2.39 | ) | | | | 24.90 | | |
Year Ended October 31, 2008 | | | | 24.90 | | | 0.53 | | | (12.41 | ) | | (11.88 | ) | | (0.39 | ) | | (1.90 | ) | | (2.29 | ) | | | | 10.73 | | |
Year Ended October 31, 2009 | | | | 10.73 | | | 0.28 | | | 2.31 | | | 2.59 | | | (0.54 | ) | | (0.62 | ) | | (1.16 | ) | | | | 12.16 | | |
Six Months Ended April 30, 2010
(Unaudited) | | | | 12.16 | | | 0.07 | | | 0.12 | | | 0.19 | | | (0.19 | ) | | — | | | (0.19 | ) | | | | 12.16 | | |
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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 to
Average
Net Assets(c) | | Ratio of
Expenses to
Average Net
Assets(c)(d) | | Portfolio
Turnover
Rate(b)(e) | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 19.69 | % | | | $ | 193,144 | | | 0.92 | % | | 2.01 | % | | 0.92 | % | | 31.32 | % | |
Year Ended October 31, 2006 | | 32.70 | % | | | | 283,749 | | | 0.97 | % | | 2.02 | % | | 0.97 | % | | 33.39 | % | |
Year Ended October 31, 2007 | | 25.41 | %(f)(g) | | | | 385,717 | | | 0.87 | %(f) | | 2.15 | %(f) | | 0.89 | % | | 26.08 | % | |
Year Ended October 31, 2008 | | (51.92 | )% | | | | 161,053 | | | 0.84 | % | | 2.69 | % | | 0.84 | % | | 28.98 | % | |
Year Ended October 31, 2009 | | 27.90 | % | | | | 180,242 | | | 0.97 | % | | 2.27 | % | | 0.97 | % | | 58.31 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 1.48 | % | | | | 178,688 | | | 0.95 | % | | 1.10 | % | | 0.95 | % | | 35.03 | % | |
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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 Equity 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 each 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 (including the Fund) 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. |
| |
(g) | During the year ended October 31, 2007, the Portfolio in which the Fund invests 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 | 35 |
|
HSBC INVESTOR FUNDS—MID-CAP 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
(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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|
CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 8.44 | | | (0.06 | )* | | 1.49 | | | 1.43 | | | — | | | — | | | | $ | 9.87 | | |
Year Ended October 31, 2006 | | | | 9.87 | | | (0.00 | )*(e) | | 1.19 | | | 1.19 | | | (2.18 | ) | | (2.18 | ) | | | | 8.88 | | |
Year Ended October 31, 2007 | | | | 8.88 | | | (0.04 | )* | | 2.59 | | | 2.55 | | | (0.62 | ) | | (0.62 | ) | | | | 10.81 | | |
Year Ended October 31, 2008 | | | | 10.81 | | | (0.03 | )* | | (4.17 | ) | | (4.20 | ) | | (1.23 | ) | | (1.23 | ) | | | | 5.38 | | |
Year Ended October 31, 2009 | | | | 5.38 | | | 0.01 | * | | 0.73 | | | 0.74 | | | (0.44 | ) | | (0.44 | ) | | | | 5.68 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 5.68 | | | (0.00 | )*(e) | | 1.22 | | | 1.22 | | | — | | | (0.01 | ) | | | | 6.89 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 8.16 | | | (0.13 | )* | | 1.45 | | | 1.32 | | | — | | | — | | | | $ | 9.48 | | |
Year Ended October 31, 2006 | | | | 9.48 | | | (0.06 | )* | | 1.13 | | | 1.07 | | | (2.18 | ) | | (2.18 | ) | | | | 8.37 | | |
Year Ended October 31, 2007 | | | | 8.37 | | | (0.10 | )* | | 2.42 | | | 2.32 | | | (0.62 | ) | | (0.62 | ) | | | | 10.07 | | |
Year Ended October 31, 2008 | | | | 10.07 | | | (0.09 | )* | | (3.83 | ) | | (3.92 | ) | | (1.23 | ) | | (1.23 | ) | | | | 4.92 | | |
Year Ended October 31, 2009 | | | | 4.92 | | | (0.02 | )* | | 0.65 | | | 0.63 | | | (0.44 | ) | | (0.44 | ) | | | | 5.11 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 5.11 | | | (0.02 | )* | | 1.10 | | | 1.08 | | | — | | | — | | | | | 6.19 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 8.22 | | | (0.13 | )* | | 1.45 | | | 1.32 | | | — | | | — | | | | $ | 9.54 | | |
Year Ended October 31, 2006 | | | | 9.54 | | | (0.06 | )* | | 1.15 | | | 1.09 | | | (2.18 | ) | | (2.18 | ) | | | | 8.45 | | |
Year Ended October 31, 2007 | | | | 8.45 | | | (0.10 | )* | | 2.43 | | | 2.33 | | | (0.62 | ) | | (0.62 | ) | | | | 10.16 | | |
Year Ended October 31, 2008 | | | | 10.16 | | | (0.10 | )* | | (3.86 | ) | | (3.96 | ) | | (1.23 | ) | | (1.23 | ) | | | | 4.97 | | |
Year Ended October 31, 2009 | | | | 4.97 | | | (0.02 | )* | | 0.66 | | | 0.64 | | | (0.44 | ) | | (0.44 | ) | | | | 5.17 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 5.17 | | | (0.02 | )* | | 1.11 | | | 1.09 | | | — | | | — | | | | | 6.26 | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 8.52 | | | (0.02 | )* | | 1.48 | | | 1.46 | | | — | | | — | | | | $ | 9.98 | | |
Year Ended October 31, 2006 | | | | 9.98 | | | 0.03 | * | | 1.20 | | | 1.23 | | | (2.18 | ) | | (2.18 | ) | | | | 9.03 | | |
Year Ended October 31, 2007 | | | | 9.03 | | | (0.02 | )* | | 2.64 | | | 2.62 | | | (0.62 | ) | | (0.62 | ) | | | | 11.03 | | |
Year Ended October 31, 2008 | | | | 11.03 | | | (0.01 | )* | | (4.28 | ) | | (4.29 | ) | | (1.23 | ) | | (1.23 | ) | | | | 5.51 | | |
Year Ended October 31, 2009 | | | | 5.51 | | | 0.03 | * | | 0.75 | | | 0.78 | | | (0.44 | ) | | (0.44 | ) | | | | 5.85 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 5.85 | | | 0.01 | * | | 1.26 | | | 1.27 | | | — | | | (0.03 | ) | | | | 7.09 | | |
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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
(Loss) to
Average
Net Assets(b) | | Ratio of
Expenses to
Average Net
Assets(b)(c) | | Portfolio
Turnover
Rate(a)(d) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 16.94 | %(f) | | | $ | 2,151 | | | 1.38 | %(f) | | (0.65 | )%(f) | | 1.53 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | 13.66 | % | | | | 3,185 | | | 1.48 | % | | (0.01 | )% | | 1.85 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | 30.51 | %(g) | | | | 5,897 | | | 1.19 | %(g) | | (0.45 | )%(g) | | 1.70 | % | | 66.16 | % | |
Year Ended October 31, 2008 | | (43.49 | )% | | | | 3,584 | | | 1.35 | % | | (0.36 | )% | | 1.80 | % | | 64.65 | % | |
Year Ended October 31, 2009 | | 16.07 | %(h) | | | | 4,186 | | | 1.35 | % | | 0.22 | % | | 2.17 | % | | 46.49 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 21.44 | % | | | | 5,225 | | | 1.35 | % | | (0.07 | )% | | 1.97 | % | | 33.51 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 16.18 | %(f) | | | $ | 7,415 | | | 2.11 | %(f) | | (1.38 | )%(f) | | 2.27 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | 12.78 | % | | | | 7,425 | | | 2.25 | % | | (0.72 | )% | | 2.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | 29.56 | %(g) | | | | 6,285 | | | 1.92 | %(g) | | (1.15 | )%(g) | | 2.48 | % | | 66.16 | % | |
Year Ended October 31, 2008 | | (43.97 | )% | | | | 1,975 | | | 2.09 | % | | (1.16 | )% | | 2.51 | % | | 64.65 | % | |
Year Ended October 31, 2009 | | 15.26 | %(h) | | | | 1,574 | | | 2.10 | % | | (0.48 | )% | | 2.94 | % | | 46.49 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 21.14 | % | | | | 1,329 | | | 2.10 | % | | (0.79 | )% | | 2.73 | % | | 33.51 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 16.06 | %(f) | | | $ | 111 | | | 2.13 | %(f) | | (1.40 | )%(f) | | 2.28 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | 12.93 | % | | | | 95 | | | 2.25 | % | | (0.72 | )% | | 2.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | 29.40 | %(g) | | | | 79 | | | 1.93 | %(g) | | (1.16 | )%(g) | | 2.46 | % | | 66.16 | % | |
Year Ended October 31, 2008 | | (43.97 | )% | | | | 12 | | | 2.09 | % | | (1.20 | )% | | 2.49 | % | | 64.65 | % | |
Year Ended October 31, 2009 | | 15.30 | %(h) | | | | 13 | | | 2.10 | % | | (0.53 | )% | | 2.91 | % | | 46.49 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 21.08 | % | | | | 16 | | | 2.10 | % | | (0.81 | )% | | 2.73 | % | | 33.51 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 17.14 | %(f) | | | $ | 19,618 | | | 0.89 | %(f) | | (0.19 | )%(f) | | 1.02 | % | | 169.62 | % | |
Year Ended October 31, 2006 | | 13.97 | % | | | | 17,029 | | | 1.26 | % | | 0.29 | % | | 1.60 | % | | 53.16 | % | |
Year Ended October 31, 2007 | | 30.80 | %(g) | | | | 20,671 | | | 0.93 | %(g) | | (0.19 | )%(g) | | 1.47 | % | | 66.16 | % | |
Year Ended October 31, 2008 | | (43.44 | )% | | | | 11,080 | | | 1.10 | % | | (0.12 | )% | | 1.54 | % | | 64.65 | % | |
Year Ended October 31, 2009 | | 16.42 | %(h) | | | | 7,432 | | | 1.10 | % | | 0.51 | % | | 1.95 | % | | 46.49 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 21.71 | % | | | | 11,305 | | | 1.10 | % | | 0.16 | % | | 1.72 | % | | 33.51 | % | |
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* | 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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been 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) | Less than $0.005 per share. |
| |
(f) | 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 |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.16%, 0.18%, 0.17%, and 0.17% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(h) | During the year ended October 31, 2009, the Fund received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.04%, 0.04%, 0.04% and 0.04% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
36 | 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 | | | | |
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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 | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 10.91 | | | (0.14 | ) | | 1.62 | | | 1.48 | | | — | | | — | | | | $ | 12.39 | | |
Year Ended October 31, 2006 | | | | 12.39 | | | (0.14 | )* | | 2.43 | | | 2.29 | | | (0.39 | ) | | (0.39 | ) | | | | 14.29 | | |
Year Ended October 31, 2007 | | | | 14.29 | | | (0.16 | )* | | 4.01 | | | 3.85 | | | (1.73 | ) | | (1.73 | ) | | | | 16.41 | | |
Year Ended October 31, 2008 | | | | 16.41 | | | (0.12 | )* | | (4.04 | ) | | (4.16 | ) | | (5.16 | ) | | (5.16 | ) | | | | 7.09 | | |
Year Ended October 31, 2009 | | | | 7.09 | | | (0.07 | )* | | 0.97 | | | 0.90 | | | (0.43 | ) | | (0.43 | ) | | | | 7.56 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 7.56 | | | (0.05 | )* | | 1.86 | | | 1.81 | | | — | | | — | | | | | 9.37 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 10.29 | | | (0.22 | ) | | 1.53 | | | 1.31 | | | — | | | — | | | | $ | 11.60 | | |
Year Ended October 31, 2006 | | | | 11.60 | | | (0.23 | )* | | 2.27 | | | 2.04 | | | (0.39 | ) | | (0.39 | ) | | | | 13.25 | | |
Year Ended October 31, 2007 | | | | 13.25 | | | (0.25 | )* | | 3.67 | | | 3.42 | | | (1.73 | ) | | (1.73 | ) | | | | 14.94 | | |
Year Ended October 31, 2008 | | | | 14.94 | | | (0.18 | )* | | (3.50 | ) | | (3.68 | ) | | (5.16 | ) | | (5.16 | ) | | | | 6.10 | | |
Year Ended October 31, 2009 | | | | 6.10 | | | (0.10 | )* | | 0.80 | | | 0.70 | | | (0.43 | ) | | (0.43 | ) | | | | 6.37 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 6.37 | | | (0.07 | )* | | 1.56 | | | 1.49 | | | — | | | — | | | | | 7.86 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 10.39 | | | (0.21 | ) | | 1.53 | | | 1.32 | | | — | | | — | | | | $ | 11.71 | | |
Year Ended October 31, 2006 | | | | 11.71 | | | (0.23 | )* | | 2.29 | | | 2.06 | | | (0.39 | ) | | (0.39 | ) | | | | 13.38 | | |
Year Ended October 31, 2007 | | | | 13.38 | | | (0.26 | )* | | 3.72 | | | 3.46 | | | (1.73 | ) | | (1.73 | ) | | | | 15.11 | | |
Year Ended October 31, 2008 | | | | 15.11 | | | (0.17 | )* | | (3.57 | ) | | (3.74 | ) | | (5.16 | ) | | (5.16 | ) | | | | 6.21 | | |
Year Ended October 31, 2009 | | | | 6.21 | | | (0.10 | )* | | 0.81 | | | 0.71 | | | (0.43 | ) | | (0.43 | ) | | | | 6.49 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 6.49 | | | (0.07 | )* | | 1.60 | | | 1.53 | | | — | | | — | | | | | 8.02 | | |
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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(b)(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 13.57 | %(f) | | | $ | 22,875 | | | 1.51 | %(f) | | (1.11 | )% | | 1.69 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | 18.81 | % | | | | 24,463 | | | 1.55 | % | | (1.04 | )% | | 1.70 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | 30.28 | %(g) | | | | 15,057 | | | 1.52 | %(g) | | (1.13 | )% | | 1.77 | %(g) | | 69.41 | % | |
Year Ended October 31, 2008 | | (35.84 | )% | | | | 9,600 | | | 1.55 | % | | (1.13 | )% | | 1.82 | % | | 80.42 | % | |
Year Ended October 31, 2009 | | 14.85 | % | | | | 9,687 | | | 1.55 | % | | (1.02 | )% | | 2.30 | % | | 64.91 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 23.94 | % | | | | 11,607 | | | 1.55 | % | | (1.10 | )% | | 2.09 | % | | 26.31 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 12.73 | %(f) | | | $ | 4,539 | | | 2.26 | %(f) | | (1.86 | )% | | 2.44 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | 17.91 | % | | | | 4,768 | | | 2.30 | % | | (1.79 | )% | | 2.45 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | 29.30 | %(g) | | | | 4,928 | | | 2.26 | %(g) | | (1.91 | )% | | 2.52 | %(g) | | 69.41 | % | |
Year Ended October 31, 2008 | | (36.30 | )% | | | | 1,578 | | | 2.29 | % | | (1.88 | )% | | 2.58 | % | | 80.42 | % | |
Year Ended October 31, 2009 | | 13.92 | % | | | | 1,082 | | | 2.30 | % | | (1.77 | )% | | 3.10 | % | | 64.91 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 23.39 | % | | | | 800 | | | 2.30 | % | | (1.86 | )% | | 2.88 | % | | 26.31 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 12.70 | %(f) | | | $ | 306 | | | 2.26 | %(f) | | (1.86 | )% | | 2.44 | %(f) | | 63.95 | % | |
Year Ended October 31, 2006 | | 17.92 | % | | | | 299 | | | 2.30 | % | | (1.78 | )% | | 2.45 | % | | 60.83 | % | |
Year Ended October 31, 2007 | | 29.32 | %(g) | | | | 334 | | | 2.27 | %(g) | | (1.91 | )% | | 2.50 | %(g) | | 69.41 | % | |
Year Ended October 31, 2008 | | (36.27 | )% | | | | 189 | | | 2.30 | % | | (1.88 | )% | | 2.58 | % | | 80.42 | % | |
Year Ended October 31, 2009 | | 13.83 | % | | | | 267 | | | 2.30 | % | | (1.78 | )% | | 3.08 | % | | 64.91 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 23.57 | % | | | | 326 | | | 2.30 | % | | (1.86 | )% | | 2.89 | % | | 26.31 | % | |
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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 each 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. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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 (including the Fund) 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 | 37 |
|
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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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 18.94 | | | (0.07 | ) | | (4.99 | ) | | (5.06 | ) | | (4.97 | ) | | (4.97 | ) | | | 8.91 | |
Year Ended October 31, 2009 | | | 8.91 | | | (0.04 | ) | | 1.32 | | | 1.28 | | | (0.26 | ) | | (0.26 | ) | | | 9.93 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 9.93 | | | (0.00 | )(h) | | 2.41 | | | 2.41 | | | — | | | — | | | | 12.34 | |
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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(b)(e) |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 14.31 | %(f) | | $ | 177,519 | | | 0.94 | %(f) | | (0.54 | )%(f) | | 0.94 | % | | | 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 | % |
Year Ended October 31, 2008 | | (35.39 | )% | | | 97,841 | | | 0.97 | % | | (0.55 | )% | | 0.97 | % | | | 80.42 | % |
Year Ended October 31, 2009 | | 15.47 | % | | | 100,285 | | | 1.02 | % | | (0.50 | )% | | 1.02 | % | | | 64.91 | % |
Six Months Ended April 30, 2010 (Unaudited) | | 24.27 | % | | | 117,410 | | | 0.98 | % | | (0.54 | )% | | 0.98 | % | | | 26.31 | % |
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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. |
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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 each 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 of its investable assets. |
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(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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. |
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(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
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(h) | Less than $0.005 per share. |
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38 | 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 | | 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 | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 13.93 | | | 0.18 | | | 2.33 | | | 2.51 | | | (0.06 | ) | | (0.79 | ) | | | (0.85 | ) |
Year Ended October 31, 2006 | | | 15.59 | | | 0.22 | | | 4.45 | | | 4.67 | | | (0.25 | ) | | (1.16 | ) | | | (1.41 | ) |
Year Ended October 31, 2007 | | | 18.85 | | | 0.22 | * | | 3.92 | | | 4.14 | | | (0.40 | ) | | (2.11 | ) | | | (2.51 | ) |
Year Ended October 31, 2008 | | | 20.48 | | | 0.24 | * | | (9.41 | ) | | (9.17 | ) | | (0.15 | ) | | (3.31 | ) | | | (3.46 | ) |
Year Ended October 31, 2009 | | | 7.85 | | | 0.06 | * | | 0.47 | | | 0.53 | | | (0.49 | ) | | (3.79 | ) | | | (4.28 | ) |
Six Months Ended April 30, 2010
(Unaudited) | | | 4.10 | | | 0.00 | *(g) | | 0.04 | | | 0.04 | | | (0.07 | ) | | — | | | | (0.07 | ) |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 13.43 | | | 0.07 | | | 2.24 | | | 2.31 | | | — | | | (0.79 | ) | | | (0.79 | ) |
Year Ended October 31, 2006 | | | 14.95 | | | 0.09 | | | 4.26 | | | 4.35 | | | (0.14 | ) | | (1.16 | ) | | | (1.30 | ) |
Year Ended October 31, 2007 | | | 18.00 | | | 0.10 | * | | 3.70 | | | 3.80 | | | (0.27 | ) | | (2.11 | ) | | | (2.38 | ) |
Year Ended October 31, 2008 | | | 19.42 | | | 0.14 | * | | (8.86 | ) | | (8.72 | ) | | (0.03 | ) | | (3.31 | ) | | | (3.34 | ) |
Year Ended October 31, 2009 | | | 7.36 | | | 0.03 | * | | 0.37 | | | 0.40 | | | (0.38 | ) | | (3.79 | ) | | | (4.17 | ) |
Six Months Ended April 30, 2010
(Unaudited) | | | 3.59 | | | (0.01 | )* | | 0.03 | | | 0.02 | | | (0.04 | ) | | — | | | | (0.04 | ) |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 13.67 | | | 0.06 | | | 2.29 | | | 2.35 | | | — | | | (0.79 | ) | | | (0.79 | ) |
Year Ended October 31, 2006 | | | 15.23 | | | 0.11 | | | 4.33 | | | 4.44 | | | (0.14 | ) | | (1.16 | ) | | | (1.30 | ) |
Year Ended October 31, 2007 | | | 18.37 | | | 0.11 | * | | 3.80 | | | 3.91 | | | (0.23 | ) | | (2.11 | ) | | | (2.34 | ) |
Year Ended October 31, 2008 | | | 19.94 | | | 0.15 | * | | (9.15 | ) | | (9.00 | ) | | (0.02 | ) | | (3.31 | ) | | | (3.33 | ) |
Year Ended October 31, 2009 | | | 7.61 | | | 0.03 | * | | 0.43 | | | 0.46 | | | (0.39 | ) | | (3.79 | ) | | | (4.18 | ) |
Six Months Ended April 30, 2010
(Unaudited) | | | 3.89 | | | (0.01 | )* | | 0.03 | | | 0.02 | | | (0.04 | ) | | — | | | | (0.04 | ) |
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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(b)(e) |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 15.59 | | | 18.64 | % | | $ | 20,680 | | | 1.66 | % | | 1.21 | % | | 1.66 | % | | | 31.32 | % |
Year Ended October 31, 2006 | | | 18.85 | | | 31.85 | % | | | 22,761 | | | 1.67 | % | | 1.24 | % | | 1.67 | % | | | 33.39 | % |
Year Ended October 31, 2007 | | | 20.48 | | | 24.19 | %(f) | | | 16,078 | | | 1.62 | %(f) | | 1.15 | %(f) | | 1.64 | % | | | 26.08 | % |
Year Ended October 31, 2008 | | | 7.85 | | | (52.63 | )% | | | 6,645 | | | 1.70 | % | | 1.75 | % | | 1.81 | % | | | 28.98 | % |
Year Ended October 31, 2009 | | | 4.10 | | | 23.99 | % | | | 5,939 | | | 1.70 | % | | 1.56 | % | | 2.52 | % | | | 58.31 | % |
Six Months Ended April 30, 2010
(Unaudited) | | | 4.07 | | | 0.95 | % | | | 5,558 | | | 1.70 | % | | 0.19 | % | | 2.74 | % | | | 35.03 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 14.95 | | | 17.72 | % | | $ | 2,403 | | | 2.41 | % | | 0.47 | % | | 2.41 | % | | | 31.32 | % |
Year Ended October 31, 2006 | | | 18.00 | | | 30.87 | % | | | 3,234 | | | 2.42 | % | | 0.58 | % | | 2.42 | % | | | 33.39 | % |
Year Ended October 31, 2007 | | | 19.42 | | | 23.26 | %(f) | | | 3,698 | | | 2.37 | %(f) | | 0.59 | %(f) | | 2.40 | % | | | 26.08 | % |
Year Ended October 31, 2008 | | | 7.36 | | | (52.97 | )% | | | 1,249 | | | 2.45 | % | | 1.05 | % | | 2.56 | % | | | 28.98 | % |
Year Ended October 31, 2009 | | | 3.59 | | | 23.03 | % | | | 962 | | | 2.45 | % | | 0.80 | % | | 3.28 | % | | | 58.31 | % |
Six Months Ended April 30, 2010
(Unaudited) | | | 3.57 | | | 0.58 | % | | | 688 | | | 2.45 | % | | (0.54 | )% | | 3.48 | % | | | 35.03 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | $ | 15.23 | | | 17.70 | % | | $ | 164 | | | 2.41 | % | | 0.48 | % | | 2.41 | % | | | 31.32 | % |
Year Ended October 31, 2006 | | | 18.37 | | | 30.92 | % | | | 163 | | | 2.41 | % | | 0.58 | % | | 2.41 | % | | | 33.39 | % |
Year Ended October 31, 2007 | | | 19.94 | | | 23.39 | %(f) | | | 147 | | | 2.30 | %(f) | | 0.59 | %(f) | | 2.32 | % | | | 26.08 | % |
Year Ended October 31, 2008 | | | 7.61 | | | (52.96 | )% | | | 58 | | | 2.45 | % | | 1.12 | % | | 2.57 | % | | | 28.98 | % |
Year Ended October 31, 2009 | | | 3.89 | | | 23.01 | % | | | 58 | | | 2.45 | % | | 0.92 | % | | 3.28 | % | | | 58.31 | % |
Six Months Ended April 30, 2010
(Unaudited) | | | 3.87 | | | 0.53 | % | | | 56 | | | 2.45 | % | | (0.57 | )% | | 3.49 | % | | | 35.03 | % |
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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 Equity 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 each 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. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
| |
(f) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
| |
(g) | Less than $0.005 per share. |
| | |
See notes to financial statements. | HSBC INVESTOR FAMILY OF FUNDS | 39 |
|
HSBC INVESTOR FUNDS—VALUE 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 | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 13.38 | | | 0.10 | | | 1.86 | | | 1.96 | | | (0.08 | ) | | (0.13 | ) | | (0.21 | ) | | | $ | 15.13 | | |
Year Ended October 31, 2006 | | | | 15.13 | | | 0.12 | * | | 2.95 | | | 3.07 | | | (0.19 | ) | | (1.29 | ) | | (1.48 | ) | | | | 16.72 | | |
Year Ended October 31, 2007 | | | | 16.72 | | | 0.14 | * | | 1.38 | | | 1.52 | | | (0.13 | ) | | (1.57 | ) | | (1.70 | ) | | | | 16.54 | | |
Year Ended October 31, 2008 | | | | 16.54 | | | 0.13 | * | | (6.30 | ) | | (6.17 | ) | | (0.13 | ) | | (1.30 | ) | | (1.43 | ) | | | | 8.94 | | |
Year Ended October 31, 2009 | | | | 8.94 | | | 0.09 | * | | 1.64 | | | 1.73 | | | (0.11 | ) | | — | | | (0.11 | ) | | | | 10.56 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 10.56 | | | 0.02 | * | | 1.42 | | | 1.44 | | | (0.02 | ) | | — | | | (0.02 | ) | | | | 11.98 | | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 12.95 | | | (0.02 | ) | | 1.80 | | | 1.78 | | | — | | | (0.13 | ) | | (0.13 | ) | | | $ | 14.60 | | |
Year Ended October 31, 2006 | | | | 14.60 | | | — | * | | 2.84 | | | 2.84 | | | (0.07 | ) | | (1.29 | ) | | (1.36 | ) | | | | 16.08 | | |
Year Ended October 31, 2007 | | | | 16.08 | | | 0.02 | * | | 1.32 | | | 1.34 | | | (0.02 | ) | | (1.57 | ) | | (1.59 | ) | | | | 15.83 | | |
Year Ended October 31, 2008 | | | | 15.83 | | | 0.03 | * | | (6.01 | ) | | (5.98 | ) | | (0.02 | ) | | (1.30 | ) | | (1.32 | ) | | | | 8.53 | | |
Year Ended October 31, 2009 | | | | 8.53 | | | 0.04 | * | | 1.54 | | | 1.58 | | | (0.03 | ) | | — | | | (0.03 | ) | | | | 10.08 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 10.08 | | | (0.02 | )* | | 1.35 | | | 1.33 | | | — | | | — | | | — | | | | | 11.41 | | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 13.01 | | | (0.02 | ) | | 1.82 | | | 1.80 | | | (0.01 | ) | | (0.13 | ) | | (0.14 | ) | | | $ | 14.67 | | |
Year Ended October 31, 2006 | | | | 14.67 | | | — | * | | 2.85 | | | 2.85 | | | (0.05 | ) | | (1.29 | ) | | (1.34 | ) | | | | 16.18 | | |
Year Ended October 31, 2007 | | | | 16.18 | | | 0.02 | * | | 1.32 | | | 1.34 | | | (0.01 | ) | | (1.57 | ) | | (1.58 | ) | | | | 15.94 | | |
Year Ended October 31, 2008 | | | | 15.94 | | | 0.03 | * | | (6.05 | ) | | (6.02 | ) | | (0.02 | ) | | (1.30 | ) | | (1.32 | ) | | | | 8.60 | | |
Year Ended October 31, 2009 | | | | 8.60 | | | 0.02 | * | | 1.57 | | | 1.59 | | | (0.04 | ) | | — | | | (0.04 | ) | | | | 10.15 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 10.15 | | | (0.02 | )* | | 1.36 | | | 1.34 | | | — | | | — | | | — | | | | | 11.49 | | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | $ | 13.38 | | | 0.13 | | | 1.86 | | | 1.99 | | | (0.11 | ) | | (0.13 | ) | | (0.24 | ) | | | $ | 15.13 | | |
Year Ended October 31, 2006 | | | | 15.13 | | | 0.15 | * | | 2.94 | | | 3.09 | | | (0.23 | ) | | (1.29 | ) | | (1.52 | ) | | | | 16.70 | | |
Year Ended October 31, 2007 | | | | 16.70 | | | 0.18 | * | | 1.38 | | | 1.56 | | | (0.17 | ) | | (1.57 | ) | | (1.74 | ) | | | | 16.52 | | |
Year Ended October 31, 2008 | | | | 16.52 | | | 0.16 | * | | (6.28 | ) | | (6.12 | ) | | (0.17 | ) | | (1.30 | ) | | (1.47 | ) | | | | 8.93 | | |
Year Ended October 31, 2009 | | | | 8.93 | | | 0.11 | * | | 1.63 | | | 1.74 | | | (0.13 | ) | | — | | | (0.13 | ) | | | | 10.54 | | |
Six Months Ended April 30, 2010 (Unaudited) | | | | 10.54 | | | 0.03 | * | | 1.42 | | | 1.45 | | | (0.03 | ) | | — | | | (0.03 | ) | | | | 11.96 | | |
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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(b)(e) | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 14.69 | %(f) | | | $ | 23,315 | | | 1.15 | %(f) | | 0.64 | %(f) | | 1.30 | %(f) | | 16.45 | % | |
Year Ended October 31, 2006 | | 21.70 | % | | | | 24,688 | | | 1.20 | % | | 0.74 | % | | 1.43 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | 9.77 | %(g) | | | | 27,225 | | | 1.11 | %(g) | | 0.84 | %(g) | | 1.25 | % | | 18.67 | % | |
Year Ended October 31, 2008 | | (40.46 | )%(h) | | | | 14,881 | | | 1.20 | % | | 0.99 | % | | 1.23 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 19.59 | %(i) | | | | 12,742 | | | 1.20 | % | | 0.91 | % | | 1.40 | % | | 19.77 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 13.63 | % | | | | 12,854 | | | 1.20 | % | | 0.32 | % | | 1.31 | % | | 14.64 | % | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 13.78 | %(f) | | | $ | 1,767 | | | 1.90 | %(f) | | (0.10 | )%(f) | | 2.04 | %(f) | | 16.45 | % | |
Year Ended October 31, 2006 | | 20.78 | % | | | | 1,939 | | | 1.95 | % | | (0.01 | )% | | 2.18 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | 8.92 | %(g) | | | | 1,772 | | | 1.87 | %(g) | | 0.10 | %(g) | | 2.00 | % | | 18.67 | % | |
Year Ended October 31, 2008 | | (40.89 | )%(h) | | | | 717 | | | 1.95 | % | | 0.24 | % | | 1.98 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 18.63 | %(i) | | | | 466 | | | 1.95 | % | | 0.23 | % | | 2.14 | % | | 19.77 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 13.19 | % | | | | 324 | | | 1.95 | % | | (0.36 | )% | | 2.05 | % | | 14.64 | % | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 13.86 | %(f) | | | $ | 388 | | | 1.90 | %(f) | | (0.12 | )%(f) | | 2.05 | %(f) | | 16.45 | % | |
Year Ended October 31, 2006 | | 20.72 | % | | | | 157 | | | 1.95 | % | | 0.01 | % | | 2.17 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | 8.95 | %(g) | | | | 126 | | | 1.87 | %(g) | | 0.11 | %(g) | | 1.99 | % | | 18.67 | % | |
Year Ended October 31, 2008 | | (40.89 | )%(h) | | | | 66 | | | 1.95 | % | | 0.24 | % | | 1.98 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 18.60 | %(i) | | | | 71 | | | 1.95 | % | | 0.12 | % | | 2.14 | % | | 19.77 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 13.20 | % | | | | 80 | | | 1.95 | % | | (0.44 | )% | | 2.06 | % | | 14.64 | % | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | 14.96 | %(f) | | | $ | 15,044 | | | 0.90 | %(f) | | 0.91 | %(f) | | 1.02 | %(f) | | 16.45 | % | |
Year Ended October 31, 2006 | | 21.90 | % | | | | 18,036 | | | 0.95 | % | | 0.99 | % | | 1.18 | % | | 20.63 | % | |
Year Ended October 31, 2007 | | 10.04 | %(g) | | | | 28,692 | | | 0.87 | %(g) | | 1.07 | %(g) | | 0.99 | % | | 18.67 | % | |
Year Ended October 31, 2008 | | (40.29 | )%(h) | | | | 17,779 | | | 0.95 | % | | 1.24 | % | | 0.98 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 19.82 | %(i) | | | | 16,737 | | | 0.95 | % | | 1.16 | % | | 1.15 | % | | 19.77 | % | |
Six Months Ended April 30, 2010
(Unaudited) | | 13.79 | % | | | | 19,614 | | | 0.95 | % | | 0.56 | % | | 1.06 | % | | 14.64 | % | |
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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 Value 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 each 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. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued. |
| |
(f) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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. |
| |
(g) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
| |
(h) | During the year ended October 31, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigations settlements. The corresponding impact to the total return was 0.22%, 0.22%, 0.22% and 0.22% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| |
(i) | During the year ended October 31, 2009, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.03%, 0.03%, 0.03% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. |
| | |
40 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements. |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) |
| |
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, 2010, the Trust is comprised of 15 separate operational funds and the Advisor Trust is comprised of 2 separate operational funds. The accompanying financial statements are presented for the following 7 funds (individually a “Fund’’, collectively the “Funds’’) of the Trust and Advisor Trust (collectively the “Trusts’’): |
| | | | |
Fund | | Short Name | | Trust |
| |
| |
|
HSBC Investor Growth Fund | | Growth 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 Equity Fund | | Trust |
HSBC Investor Value Fund | | Value Fund | | Trust |
| |
| All the Funds are diversified funds. Each Fund is a 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 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, 2010 |
| |
| |
|
Growth Fund | | HSBC Investor Growth Portfolio | | 68.6 | % |
International Equity Fund | | HSBC Investor International Equity Portfolio | | 86.3 | % |
Opportunity Fund | | HSBC Investor Opportunity Portfolio | | 9.1 | % |
Opportunity Fund (Advisor) | | HSBC Investor Opportunity Portfolio | | 84.0 | % |
Overseas Equity Fund | | HSBC Investor International Equity Portfolio | | 3.0 | % |
Value Fund | | HSBC Investor Value Portfolio | | 65.3 | % |
| |
| The 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 and also receive investments from certain fund of funds. |
| |
| 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 Growth 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 International Equity Fund and the Opportunity Fund (Advisor) each offer one class of shares: Class I Shares. The 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 Funds have a maximum sales charge of 5.00% 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 |
| |
HSBC INVESTOR FAMILY OF FUNDS | 41 |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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 Trusts’ 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 Trusts 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 Trusts expect the 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 certain 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
| |
| Securities Valuation: |
| |
| The Funds record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below. |
| |
| A. 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. |
| |
| B. Mid-Cap Fund |
| |
| Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price 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 pursuant to procedures adopted by the Funds’ Board of Trustees (“Trustees”). Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or profits, regulatory news, natural disasters and litigation. Examples of potentially significant events that could affect multiple securities held by the Fund includes governmental actions, natural disasters and armed conflicts. |
| |
| Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. |
| |
| Investment Transactions and Related Income: |
| |
| A. 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. |
| |
42 | HSBC INVESTOR FAMILY OF FUNDS |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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. |
| |
| 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 unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
| |
| Dividends to Shareholders: |
| |
| Dividends to shareholders from net investment income, if any, are declared and distributed semi-annually in the case of the Growth Fund, Opportunity Fund, Opportunity (Advisor) and the Value Fund, and annually in the case of the International Equity Fund, Mid-Cap Fund, and Overseas Equity 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 to shareholders 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: |
| |
| Prior to February 28, 2010, a redemption fee of 2.00% was charged and recorded as paid-in-capital for any shares redeemed or exchanged after being held for less than 30 days. This fee did not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that could not implement the fee. Effective February 28, 2010 the redemption fee has been removed. For the fiscal year ended October 31, 2009 and period ended April 30, 2010, the following Funds collected redemption fees as follows: |
| | | | | | | |
Fund | | Fees Collected
October 31, 2009 | | Fees Collected
April 30, 2010 | |
| |
| |
| |
Growth Fund | | $ | 2,635 | | $ | — | |
International Equity Fund | | | 8,926 | | | 143 | |
Mid-Cap Fund | | | 25 | | | 11 | |
Opportunity Fund (Advisor) | | | 2,378 | | | 141 | |
Opportunity Fund | | | 638 | | | 318 | |
Overseas Equity Fund | | | 73 | | | 2 | |
Value Fund | | | 2,519 | | | 55 | |
| |
| 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. |
| |
| Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as appli- |
| |
HSBC INVESTOR FAMILY OF FUNDS | 43 |
| | | |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | |
| cable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
| | |
| New Accounting Pronouncements: |
| | |
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trusts’ financial statements and related disclosures. |
| | |
| Futures Contracts: |
| | |
| The 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 conditions. Upon entering into a futures contract, the 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, the Mid-Cap Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Mid-Cap Fund and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Mid-Cap Fund did not hold any futures contracts. |
| | |
| Options: |
| | |
| 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, 2010, the Mid-Cap Fund did not write any covered call options. |
| | |
3. | Investment Valuation Summary: |
| | |
| The valuation techniques employed by the Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below: |
| | | |
| | • | Level 1: quoted prices in active markets for identical assets |
| | | |
| | • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
| | | |
| | • | Level 3: significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
| | | |
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. |
| |
44 | HSBC INVESTOR FAMILY OF FUNDS |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Funds’ investments based upon three levels defined above: |
| | | | | | | | | | | | | |
| | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
| |
| |
| |
| |
| |
Growth Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 63,712,178 | | $ | — | | $ | 63,712,178 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 63,712,178 | | $ | — | | $ | 63,712,178 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
International Equity Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 178,083,094 | | $ | — | | $ | 178,083,094 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 178,083,094 | | $ | — | | $ | 178,083,094 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Mid-Cap Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Common Stocks (b) | | $ | 17,599,321 | | $ | — | | $ | — | | $ | 17,599,321 | |
Investment Companies | | | 505,474 | | | — | | | — | | | 505,474 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | 18,104,795 | | $ | — | | $ | — | | $ | 18,104,795 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Opportunity Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 12,744,536 | | $ | — | | $ | 11,027,004 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 12,744,536 | | $ | — | | $ | 11,027,004 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Opportunity Fund (Advisor) | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 117,405,669 | | $ | — | | $ | 117,405,669 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 117,405,669 | | $ | — | | $ | 117,405,669 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Overseas Equity Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 6,260,482 | | $ | — | | $ | 6,260,482 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 6,260,482 | | $ | — | | $ | 6,260,482 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Value Fund | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Affiliated Portfolios (a) | | $ | — | | $ | 32,934,431 | | $ | — | | $ | 32,934,431 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 32,934,431 | | $ | — | | $ | 32,934,431 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
| |
(a) | Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder fund structure, the inputs used for valuing these investments are categorized as Level 2. |
| | |
(b) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. |
| | |
4. | Related Party Transactions and Other Agreements and Plans: |
| | |
| Investment Management: |
| | |
| HSBC Global Asset Management (USA) Inc. (“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 Mid-Cap Fund. As Investment Adviser, HSBC manages the investments of the Fund and continuously reviews, supervises, and administers the Fund’s investments. Investment sub-advisory services are provided by Munder Capital Management (“Munder”) for the Mid-Cap Fund. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 45 |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| For their services as Investment Adviser and Investment Sub-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 received from the Funds (as well as other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at annual rate of: |
| | | | |
Based on Average Daily Net Assets of | | Fee Rate | |
| |
| |
Up to $10 billion | | | 0.0550% | |
In excess of $10 billion but not exceeding $20 billion | | | 0.0350% | |
In excess of $20 billion but not exceeding $50 billion | | | 0.0275% | |
In excess of $50 billion | | | 0.0250% | |
| |
| 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 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. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios. An amount equal to 50% of the administration fees is deemed to be class specific. |
| |
| 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 Trusts’ 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 $134,557 for the period ended April 30, 2010, plus reimbursement of certain out of pocket expenses. Expenses incurred by each fund are reflected on the Statements of Operations as “Compliance Services.” Citi Ohio pays the salary and other compensation earned by individuals performing these services, as employees of Citi Ohio. |
| |
| Distribution Arrangements: |
| |
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trusts as Distributor (the “Distributor”). The Trusts have adopted a non-compensatory Distribution Plan and Agreement (the “Distribution Plan”) pursuant to Rule 12b-1 of the Act. The Distribution 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. As of the most recent fiscal periods Foreside, as Distributor, also received $284,730, $198,003 and $19,382 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively, of which $30, $6 and $– were reallocated 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 primarily 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 0.25%, 0.25%, and 0.25% of the 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 Shareholder Services Plan 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. |
| |
46 | HSBC INVESTOR FAMILY OF FUNDS |
| |
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Fund Accounting, Transfer Agency and Trustees: |
| |
| Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent, 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, Citi Ohio receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses. |
| |
| Each non-interested Trustee is compensated with a $60,000 annual Board retainer for service as a Trustee of the Trusts and Portfolio Trust, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts and Portfolio Trust. 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 or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| 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 Mid-Cap Fund. |
| |
| The Investment Adviser has also agreed to contractually limit, through March 1, 2011, 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 | |
| |
| |
| |
Growth Fund | | | A | | | 1.20% | |
Growth Fund | | | B | | | 1.95% | |
Growth Fund | | | C | | | 1.95% | |
Growth 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% | |
Opportunity Fund | | | A | | | 1.65% | |
Opportunity Fund | | | B | | | 2.40% | |
Opportunity Fund | | | C | | | 2.40% | |
Overseas Equity Fund | | | A | | | 1.85% | |
Overseas Equity Fund | | | B | | | 2.60% | |
Overseas Equity Fund | | | C | | | 2.60% | |
Value Fund | | | A | | | 1.20% | |
Value Fund | | | B | | | 1.95% | |
Value Fund | | | C | | | 1.95% | |
Value Fund | | | I | | | 0.95% | |
| |
| Any amounts contractually waived or reimbursed by the Investment Adviser will be subject to repayment by the Fund to the Investment Adviser within three years to the extent that the repayment will not cause the Fund’s operating expenses to exceed the contractual expense limit was in effect at the time of such waiver or reimbursement. During the period ended April 30, 2010, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2010, the repayments that may potentially be made by the Funds are as follows: |
| | | | | | | | | | | | | |
Fund | | 2013($)* | | 2012($)* | | 2011($)* | | 2010($)* | |
| |
| |
| |
| |
| |
Growth Fund | | | 1,984 | | | 56,048 | | | 7,580 | | | 8,757 | |
Mid-Cap Fund | | | 24,882 | | | 69,632 | | | 35,881 | | | 19,994 | |
Opportunity Fund | | | 26,532 | | | 65,792 | | | — | | | 18,813 | |
Overseas Equity Fund | | | 24,800 | | | 45,169 | | | — | | | — | |
Value Fund | | | 16,741 | | | 55,991 | | | 13,116 | | | 25,113 | |
| | |
| |
* | The year listed above the amounts is the fiscal year ending in which the amounts will no longer be recoupable. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 47 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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 its discretion. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable. |
| |
5. | Investment Transactions: |
| |
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
| | | | | | | |
Fund | | Purchases | | Sales | |
| |
| |
| |
Mid-Cap Fund | | $ | 6,713,444 | | $ | 5,115,226 | |
| |
| There were no long-term U.S. Government securities held during the period ended April 30, 2010. |
| |
| Contributions and withdrawals of the respective Portfolios for the period ended April 30, 2010 totaled: |
| | | | | | | |
Fund | | Contributions | | Withdrawals | |
| |
| |
| |
Growth Fund | | $ | 2,754,035 | | $ | 5,029,264 | |
International Equity Fund | | | 10,383,644 | | | 15,145,907 | |
Opportunity Fund | | | 177,517 | | | 1,042,247 | |
Opportunity Fund (Advisor) | | | 3,815,129 | | | 10,481,149 | |
Overseas Equity Fund | | | 115,687 | | | 891,066 | |
Value Fund | | | 1,311,464 | | | 2,524,038 | |
| |
6. | Federal Income Tax Information: |
| |
| At April 30, 2010, the cost basis of securities 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($) | | Net Unrealized
Appreciation
(Depreciation($)* | |
| |
| |
| |
| |
| |
Mid-Cap Fund | | | 14,712,188 | | | 3,800,906 | | | (408,299 | ) | | 3,392,607 | |
| | |
| |
* | The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales. |
| |
| The tax character of dividends paid by the Funds as of the latest tax year ended October 31, 2009 was as follows: |
| | | | | | | | | | |
| | Dividends paid from
Ordinary Income | | Net Long Term
Capital Gains | | Total
Dividends Paid* | |
| |
| |
| |
| |
Growth Fund | | $ | — | | $ | — | | $ | — | |
International Equity Fund (Advisor) | | | 7,354,738 | | | 8,461,420 | | | 15,816,158 | |
Mid-Cap Fund | | | — | | | 1,150,504 | | | 1,150,504 | |
Opportunity Fund | | | — | | | 660,465 | | | 660,465 | |
Opportunity Fund (Advisor) | | | — | | | 2,746,629 | | | 2,746,629 | |
Overseas Equity Fund | | | 651,140 | | | 3,347,318 | | | 3,998,458 | |
Value Fund | | | 390,433 | | | — | | | 390,433 | |
| | |
| |
* | Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
| |
48 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| As of the latest tax year ended October 31, 2009, 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)(1) | | Total
Accumulated
Earnings/
(Deficit) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Growth Fund | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | (11,630,969 | ) | $ | 6,193,161 | | $ | (5,437,808 | ) |
International Equity Fund (Advisor) | | | 2,365,154 | | | — | | | — | | | 2,365,154 | | | — | | | (59,383,976 | ) | | (10,552,398 | ) | | (67,571,220 | ) |
Mid-Cap Fund | | | 37,965 | | | — | | | — | | | 37,965 | | | — | | | (3,361,790 | ) | | 854,445 | | | (2,469,380 | ) |
Opportunity Fund | | | — | | | — | | | — | | | — | | | — | | | (1,305,884 | ) | | (152,375 | ) | | (1,458,259 | ) |
Opportunity Fund (Advisor) | | | — | | | — | | | — | | | — | | | — | | | (10,911,778 | ) | | (1,411,543 | ) | | (12,323,321 | ) |
Overseas Equity Fund | | | 108,816 | | | — | | | — | | | 108,816 | | | — | | | (2,368,405 | ) | | (357,941 | ) | | (2,617,530 | ) |
Value Fund | | | 14,848 | | | — | | | — | | | 14,848 | | | — | | | (6,016,194 | ) | | (2,368,011 | ) | | (8,369,357 | ) |
| |
|
(1) | The differences between book-basis and tax-basis unrealized appreciation/depreciation 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. |
| |
| As of latest tax year ended October 31, 2009, the following Funds have net capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by U.S. 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 | |
| | |
| |
| |
Growth Fund | | | 211,343 | | 2016 | |
Growth Fund | | | 11,419,626 | | 2017 | |
International Equity Fund (Advisor) | | | 59,383,976 | | 2017 | |
Mid-Cap Fund | | | 3,361,790 | | 2017 | |
Opportunity Fund | | | 1,305,884 | | 2017 | |
Opportunity Fund (Advisor) | | | 10,911,778 | | 2017 | |
Overseas Equity Fund | | | 2,368,405 | | 2017 | |
Value Fund | | | 4,701,437 | | 2016 | |
Value Fund | | | 1,314,757 | | 2017 | |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Funds. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Funds will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Fund will be disclosed in the Financial Highlights after the date of payment. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 49 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) |
| | |
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
| | |
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
| | |
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
| | |
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
| | |
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
| | |
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and 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 Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
| |
50 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The 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. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
| | |
| | The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
| | |
| | The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
| | |
| | With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
| | |
| | The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
| | |
| | The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 51 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
| |
52 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 |
| | |
| As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases or redemption of shares, (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, 2009 through April 30, 2010. |
| | |
| 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 - 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 - 4/30/10 | |
| | | |
| |
| |
| |
| |
Growth Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,147.50 | | | | $ | 6.39 | | | 1.20 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,143.00 | | | | | 10.36 | | | 1.95 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,143.80 | | | | | 10.37 | | | 1.95 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,149.40 | | | | | 5.06 | | | 0.95 | % | |
International Equity Fund | | Class I Shares | | | | 1,000.00 | | | | | 1,014.80 | | | | | 4.75 | | | 0.95 | % | |
Mid-Cap Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,214.40 | | | | | 7.41 | | | 1.35 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,211.40 | | | | | 11.51 | | | 2.10 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,210.80 | | | | | 11.51 | | | 2.10 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,217.10 | | | | | 6.05 | | | 1.10 | % | |
Opportunity Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,239.40 | | | | | 8.61 | | | 1.55 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,233.90 | | | | | 12.74 | | | 2.30 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,235.70 | | | | | 12.75 | | | 2.30 | % | |
Opportunity Fund (I Shares) | | Class I Shares | | | | 1,000.00 | | | | | 1,242.70 | | | | | 5.45 | | | 0.98 | % | |
Overseas Equity Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,009.50 | | | | | 8.47 | | | 1.70 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,005.80 | | | | | 12.18 | | | 2.45 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,005.30 | | | | | 12.18 | | | 2.45 | % | |
Value Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,136.30 | | | | | 6.36 | | | 1.20 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,131.90 | | | | | 10.31 | | | 1.95 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,132.00 | | | | | 10.31 | | | 1.95 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,137.90 | | | | | 5.04 | | | 0.95 | % | |
| |
|
* | 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). |
| |
HSBC INVESTOR FAMILY OF FUNDS | 53 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 (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 the ongoing costs of investing in a Fund and other funds. To do so, 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) on purchases and redemptions of shares (if applicable). 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 - 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 - 4/30/10 | |
| | | |
| |
| |
| |
| |
Growth Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,018.84 | | | | $ | 6.01 | | | 1.20 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.12 | | | | | 9.74 | | | 1.95 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.12 | | | | | 9.74 | | | 1.95 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,020.08 | | | | | 4.76 | | | 0.95 | % | |
International Equity Fund | | Class I Shares | | | | 1,000.00 | | | | | 1,020.08 | | | | | 4.76 | | | 0.95 | % | |
Mid-Cap Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.10 | | | | | 6.76 | | | 1.35 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,014.38 | | | | | 10.49 | | | 2.10 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,014.38 | | | | | 10.49 | | | 2.10 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,019.34 | | | | | 5.51 | | | 1.10 | % | |
Opportunity Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,017.11 | | | | | 7.75 | | | 1.55 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.39 | | | | | 11.48 | | | 2.30 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.39 | | | | | 11.48 | | | 2.30 | % | |
Opportunity Fund (I Shares) | | Class I Shares | | | | 1,000.00 | | | | | 1,019.93 | | | | | 4.91 | | | 0.98 | % | |
Overseas Equity Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,016.36 | | | | | 8.50 | | | 1.70 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,012.65 | | | | | 12.23 | | | 2.45 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,012.65 | | | | | 12.23 | | | 2.45 | % | |
Value Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.84 | | | | | 6.01 | | | 1.20 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.12 | | | | | 9.74 | | | 1.95 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.12 | | | | | 9.74 | | | 1.95 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,020.08 | | | | | 4.76 | | | 0.95 | % | |
| |
|
* | 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). |
| |
54 | HSBC INVESTOR FAMILY OF FUNDS |
Other Information:
Information regarding how the Funds and Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) 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; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Funds and Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Funds’ and Portfolios’ Forms N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Funds’ and Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Funds’ and Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com.
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 | 55 |
(This Page Intentionally Left Blank)
|
HSBC INVESTOR GROWTH PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.3% | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 10.4% | | | | | | | |
Amazon.com, Inc. (a) | | | 11,900 | | | 1,631,014 | |
Kohl’s Corp. (a) | | | 20,100 | | | 1,105,299 | |
New Oriental Education &
Technology Group, Inc. ADR (a) | | | 7,600 | | | 711,132 | |
O’Reilly Automotive, Inc. (a) | | | 22,300 | | | 1,090,247 | |
Priceline.com, Inc. (a) | | | 7,600 | | | 1,991,580 | |
Target Corp. | | | 18,300 | | | 1,040,721 | |
The Estee Lauder Cos., Inc., Class A | | | 9,400 | | | 619,648 | |
Urban Outfitters, Inc. (a) | | | 38,800 | | | 1,455,388 | |
| | | | |
|
| |
| | | | | | 9,645,029 | |
| | | | |
|
| |
Consumer Staples – 4.5% | | | | | | | |
Costco Wholesale Corp. | | | 22,300 | | | 1,317,484 | |
PepsiCo, Inc. | | | 14,800 | | | 965,256 | |
Staples, Inc. | | | 38,400 | | | 903,552 | |
Yum! Brands, Inc. | | | 22,900 | | | 971,418 | |
| | | | |
|
| |
| | | | | | 4,157,710 | |
| | | | |
|
| |
Energy – 9.0% | | | | | | | |
Dresser-Rand Group, Inc. (a) | | | 29,500 | | | 1,040,760 | |
EOG Resources, Inc. | | | 8,500 | | | 953,020 | |
First Solar, Inc. (a) | | | 4,800 | | | 689,040 | |
FMC Technologies, Inc. (a) | | | 14,500 | | | 981,505 | |
Occidental Petroleum Corp. | | | 10,900 | | | 966,394 | |
Peabody Energy Corp. | | | 24,500 | | | 1,144,640 | |
Schlumberger Ltd. | | | 35,900 | | | 2,563,978 | |
| | | | |
|
| |
| | | | | | 8,339,337 | |
| | | | |
|
| |
Financials – 7.1% | | | | | | | |
Goldman Sachs Group, Inc. | | | 12,500 | | | 1,815,000 | |
IntercontinentalExchange, Inc. (a) | | | 7,700 | | | 898,051 | |
Invesco Ltd. | | | 16,800 | | | 386,232 | |
JP Morgan Chase & Co. | | | 61,000 | | | 2,597,380 | |
The Charles Schwab Corp. | | | 46,400 | | | 895,056 | |
| | | | |
|
| |
| | | | | | 6,591,719 | |
| | | | |
|
| |
Health Care – 8.9% | | | | | | | |
Celgene Corp. (a) | | | 22,400 | | | 1,387,680 | |
Express Scripts, Inc. (a) | | | 12,800 | | | 1,281,664 | |
Gilead Sciences, Inc. (a) | | | 11,600 | | | 460,172 | |
Medco Health Solutions, Inc. (a) | | | 40,600 | | | 2,392,152 | |
Shire plc ADR | | | 13,700 | | | 902,008 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 31,600 | | | 1,855,868 | |
| | | | |
|
| |
| | | | | | 8,279,544 | |
| | | | |
|
| |
Industrials – 12.9% | | | | | | | |
C.H. Robinson Worldwide, Inc. | | | 16,100 | | | 970,830 | |
Danaher Corp. | | | 29,400 | | | 2,477,832 | |
Deere & Co. | | | 16,000 | | | 957,120 | |
Flowserve Corp. | | | 7,900 | | | 905,182 | |
Fluor Corp. | | | 16,600 | | | 877,144 | |
Illinois Tool Works, Inc. | | | 27,600 | | | 1,410,360 | |
Union Pacific Corp. | | | 33,600 | | | 2,542,176 | |
United Technologies Corp. | | | 25,200 | | | 1,888,740 | |
| | | | |
|
| |
| | | | | | 12,029,384 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Information Technology – 40.2% | | | | | | | |
Agilent Technologies, Inc. (a) | | | 23,400 | | | 848,484 | |
Apple, Inc. (a) | | | 16,800 | | | 4,386,816 | |
Baidu, Inc. ADR (a) | | | 1,565 | | | 1,078,755 | |
Broadcom Corp., Class A | | | 27,400 | | | 945,026 | |
Cisco Systems, Inc. (a) | | | 100,200 | | | 2,697,384 | |
Citrix Systems, Inc. (a) | | | 19,300 | | | 907,100 | |
Cognizant Technology Solutions Corp. (a) | | | 59,700 | | | 3,055,446 | |
Dell, Inc. (a) | | | 60,100 | | | 972,418 | |
EMC Corp. (a) | | | 58,600 | | | 1,113,986 | |
Equinix, Inc. (a) | | | 13,900 | | | 1,399,035 | |
Google, Inc., Class A (a) | | | 4,000 | | | 2,101,760 | |
Hewlett-Packard Co. | | | 63,000 | | | 3,274,110 | |
Juniper Networks, Inc. (a) | | | 17,700 | | | 502,857 | |
Lam Research Corp. (a) | | | 24,800 | | | 1,005,640 | |
Linear Technology Corp. | | | 27,400 | | | 823,644 | |
Marvell Technology Group Ltd. (a) | | | 65,000 | | | 1,342,250 | |
MasterCard, Inc., Class A | | | 5,000 | | | 1,240,200 | |
Microsoft Corp. | | | 51,500 | | | 1,572,810 | |
Oracle Corp. | | | 72,500 | | | 1,873,400 | |
QUALCOMM, Inc. | | | 54,300 | | | 2,103,582 | |
Salesforce.com, Inc. (a) | | | 5,400 | | | 462,240 | |
Visa, Inc., Class A | | | 35,600 | | | 3,212,188 | |
VMware, Inc., Class A (a) | | | 7,900 | | | 486,956 | |
| | | | |
|
| |
| | | | | | 37,406,087 | |
| | | | |
|
| |
Materials – 3.3% | | | | | | | |
Cliffs Natural Resources, Inc. | | | 20,900 | | | 1,306,877 | |
Ecolab, Inc. | | | 17,900 | | | 874,236 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 11,700 | | | 883,701 | |
| | | | |
|
| |
| | | | | | 3,064,814 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $74,469,535) | | | | | | 89,513,624 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—3.0% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Diversified Assets
Portfolio, Institutional Shares, 0.01% (b) | | | 2,770,934 | | | 2,770,934 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $2,770,934) | | | | | | 2,770,934 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $77,240,469) — 99.3% | | | | | | 92,284,558 | |
| | | | |
|
| |
| | |
| |
| Percentages indicated are based on net assets of $92,928,102. |
| | |
ADR — | American Depositary Receipt |
PLC — | Public Limited Company |
| | |
(a) | Represents non-income producing security. |
| | |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 57 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—97.6% | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Australia – 4.6% | | | | | | | |
Australia & New Zealand Banking
Group Ltd. | | | 122,800 | | | 2,719,353 | |
BHP Billiton Ltd. | | | 36,500 | | | 1,334,019 | |
Boral Ltd. | | | 53,500 | | | 289,161 | |
Macquarie Group Ltd. | | | 18,300 | | | 834,303 | |
National Australia Bank Ltd. | | | 113,565 | | | 2,900,842 | |
Telstra Corp. Ltd. | | | 513,500 | | | 1,504,179 | |
| | | | |
|
| |
| | | | | | 9,581,857 | |
| | | | |
|
| |
Austria – 0.4% | | | | | | | |
OMV AG | | | 21,700 | | | 775,309 | |
| | | | |
|
| |
Belgium – 0.3% | | | | | | | |
KBC Groep NV (a) | | | 15,200 | | | 679,995 | |
| | | | |
|
| |
Brazil – 0.5% | | | | | | | |
Banco Do Brasil SA | | | 60,000 | | | 1,035,579 | |
| | | | |
|
| |
Canada – 4.2% | | | | | | | |
Encana Corp. | | | 16,000 | | | 529,394 | |
Industrial Alliance Insurance and
Financial Services, Inc. | | | 26,100 | | | 900,585 | |
National Bank of Canada | | | 26,600 | | | 1,626,647 | |
Nexen, Inc. | | | 78,892 | | | 1,918,890 | |
Penn West Energy Trust | | | 35,660 | | | 718,818 | |
Suncor Energy, Inc. | | | 62,428 | | | 2,136,261 | |
WestJet Airlines Ltd. (a) | | | 59,300 | | | 788,331 | |
| | | | |
|
| |
| | | | | | 8,618,926 | |
| | | | |
|
| |
Denmark – 2.1% | | | | | | | |
Carlsberg A/S, Class B | | | 25,625 | | | 2,071,326 | |
Danske Bank A/S (a) | | | 84,800 | | | 2,214,274 | |
| | | | |
|
| |
| | | | | | 4,285,600 | |
| | | | |
|
| |
Finland – 1.8% | | | | | | | |
Nokia Oyj | | | 296,400 | | | 3,623,217 | |
| | | | |
|
| |
France – 13.3% | | | | | | | |
BNP Paribas SA | | | 60,698 | | | 4,168,618 | |
Bouygues SA | | | 20,200 | | | 1,000,787 | |
Casino Guichard-Perrachon SA | | | 17,000 | | | 1,500,466 | |
Compagnie de Saint-Gobain | | | 45,800 | | | 2,260,669 | |
Compagnie Generale de
Geophysique-Veritas (a) | | | 31,800 | | | 957,266 | |
Credit Agricole SA | | | 60,739 | | | 868,163 | |
Electricite de France | | | 42,900 | | | 2,298,902 | |
France Telecom SA | | | 113,600 | | | 2,486,598 | |
Klepierre | | | 25,400 | | | 875,190 | |
Lagardere S.C.A. | | | 46,400 | | | 1,871,226 | |
Sanofi-Aventis | | | 52,700 | | | 3,594,690 | |
Societe Generale | | | 38,481 | | | 2,054,612 | |
Vallourec SA | | | 4,772 | | | 950,390 | |
Vivendi | | | 100,220 | | | 2,628,703 | |
| | | | |
|
| |
| | | | | | 27,516,280 | |
| | | | |
|
| |
Germany – 8.5% | | | | | | | |
Allianz SE | | | 35,000 | | | 4,001,898 | |
Bayer AG | | | 45,800 | | | 2,935,568 | |
Bayerische Motoren Werke AG | | | 60,400 | | | 2,983,631 | |
Deutsche Bank AG | | | 38,200 | | | 2,637,899 | |
E.ON AG | | | 91,100 | | | 3,368,846 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Germany, continued | | | | | | | |
Muenchener Rueckversicherungs-
Gesellschaft AG | | | 5,100 | | | 720,030 | |
Thyssenkrupp AG | | | 29,000 | | | 942,886 | |
| | | | |
|
| |
| | | | | | 17,590,758 | |
| | | | |
|
| |
Hong Kong – 1.5% | | | | | | | |
Esprit Holdings Ltd. | | | 259,477 | | | 1,858,754 | |
New World Development Co. Ltd. | | | 720,509 | | | 1,278,015 | |
| | | | |
|
| |
| | | | | | 3,136,769 | |
| | | | |
|
| |
India – 0.0% | | | | | | | |
State Bank of India GDR | | | 450 | | | 45,812 | |
| | | | |
|
| |
Italy – 3.6% | | | | | | | |
ENI SpA | | | 81,100 | | | 1,812,315 | |
Telecom Italia RSP (a) | | | 920,000 | | | 1,038,109 | |
Telecom Italia SpA (a) | | | 1,289,400 | | | 1,802,496 | |
UniCredit SpA (a) | | | 1,048,600 | | | 2,747,742 | |
| | | | |
|
| |
| | | | | | 7,400,662 | |
| | | | |
|
| |
Japan – 23.0% | | | | | | | |
AEON Co. Ltd. | | | 81,200 | | | 929,864 | |
Air Water, Inc. | | | 26,000 | | | 287,744 | |
Asahi Breweries Ltd. | | | 73,000 | | | 1,311,537 | |
Dowa Holdings Co. Ltd. | | | 89,000 | | | 494,163 | |
East Japan Railway Co. | | | 11,800 | | | 789,473 | |
Elpida Memory, Inc. (a) | | | 47,200 | | | 1,005,648 | |
Isuzu Motors Ltd. (a) | | | 382,000 | | | 1,215,582 | |
ITOCHU Corp. | | | 179,000 | | | 1,551,043 | |
Japan Tobacco, Inc. | | | 743 | | | 2,575,237 | |
JFE Holdings, Inc. | | | 44,000 | | | 1,569,374 | |
JX Holdings, Inc. (a) | | | 187,000 | | | 1,043,314 | |
KDDI Corp. | | | 279 | | | 1,345,420 | |
KONAMI Corp. | | | 11,700 | | | 227,028 | |
Konica Minolta Holdings, Inc. | | | 48,000 | | | 607,259 | |
Mitsubishi Corp. | | | 110,900 | | | 2,627,407 | |
Mitsubishi Gas Chemical Co., Inc. | | | 148,000 | | | 892,577 | |
Mitsubishi Materials Corp. (a) | | | 245,000 | | | 734,465 | |
Mitsui & Co. Ltd. | | | 149,000 | | | 2,239,693 | |
Mitsui Fudosan Co. Ltd. | | | 142,000 | | | 2,630,156 | |
Murata Manufacturing Co. Ltd. | | | 37,200 | | | 2,201,798 | |
NAMCO BANDAI Holdings, Inc. | | | 102,800 | | | 1,025,935 | |
NGK Spark Plug Co. Ltd. | | | 66,000 | | | 895,726 | |
Nippon Telegraph & Telephone Corp. | | | 63,000 | | | 2,564,735 | |
Nissan Motor Co. Ltd. (a) | | | 371,400 | | | 3,232,126 | |
Sharp Corp. | | | 134,000 | | | 1,735,847 | |
Sony Corp. | | | 59,110 | | | 2,024,190 | |
Sumitomo Mitsui Financial Group, Inc. | | | 69,800 | | | 2,308,783 | |
Sumitomo Realty & Development Co. Ltd. | | | 27,000 | | | 554,100 | |
Takashimaya Co. Ltd. | | | 101,000 | | | 957,692 | |
The Furukawa Electric Co. Ltd. | | | 123,000 | | | 609,791 | |
The Tokyo Electric Power Co., Inc. | | | 72,700 | | | 1,824,800 | |
Tokyo Gas Co. Ltd. | | | 221,000 | | | 939,302 | |
Toshiba Corp. (a) | | | 441,000 | | | 2,542,570 | |
| | | | |
|
| |
| | | | | | 47,494,379 | |
| | | | |
|
| |
Jersey – 0.3% | | | | | | | |
Informa plc | | | 94,200 | | | 568,462 | |
| | | | |
|
| |
| | |
58 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Kazakhstan – 0.4% | | | | | | | |
KazMunaiGas Exploration Production GDR | | | 31,650 | | | 773,883 | |
| | | | |
|
| |
Netherlands – 2.1% | | | | | | | |
Koninklijke DSM NV | | | 28,200 | | | 1,259,455 | |
Randstad Holding NV (a) | | | 60,200 | | | 3,049,905 | |
| | | | |
|
| |
| | | | | | 4,309,360 | |
| | | | |
|
| |
New Zealand – 0.3% | | | | | | | |
Telecom Corp. of New Zealand Ltd. | | | 442,923 | | | 686,556 | |
| | | | |
|
| |
Norway – 0.4% | | | | | | | |
Petroleum Geo-Services ASA (a) | | | 54,750 | | | 753,837 | |
| | | | |
|
| |
Russian Federation – 0.3% | | | | | | | |
Gazprom OAO ADR | | | 25,100 | | | 576,201 | |
| | | | |
|
| |
South Korea – 2.0% | | | | | | | |
Hynix Semiconductor, Inc. (a) | | | 40,400 | | | 1,022,683 | |
KB Financial Group, Inc. ADR | | | 35,779 | | | 1,746,015 | |
Samsung Electronics Co. Ltd., Preferred | | | 2,900 | | | 1,370,739 | |
| | | | |
|
| |
| | | | | | 4,139,437 | |
| | | | |
|
| |
Spain – 3.2% | | | | | | | |
Banco Santander SA | | | 325,469 | | | 4,137,960 | |
Telefonica SA | | | 106,700 | | | 2,414,892 | |
| | | | |
|
| |
| | | | | | 6,552,852 | |
| | | | |
|
| |
Sweden – 0.7% | | | | | | | |
Electrolux AB, B Shares | | | 58,600 | | | 1,507,596 | |
| | | | |
|
| |
Switzerland – 1.6% | | | | | | | |
Novartis AG | | | 63,940 | | | 3,261,026 | |
| | | | |
|
| |
Taiwan – 1.0% | | | | | | | |
AU Optronics Corp. | | | 1,134,030 | | | 1,306,945 | |
Compal Electronics, Inc. | | | 804 | | | 1,118 | |
United Microelectronics Corp. (a) | | | 1,470,000 | | | 739,773 | |
| | | | |
|
| |
| | | | | | 2,047,836 | |
| | | | |
|
| |
Turkey – 0.7% | | | | | | | |
Turkiye Garanti Bankasi AS | | | 308,700 | | | 1,496,110 | |
| | | | |
|
| |
United Kingdom – 20.8% | | | | | | | |
AstraZeneca plc | | | 77,900 | | | 3,441,577 | |
BAE Systems plc | | | 248,700 | | | 1,303,277 | |
Barclays plc | | | 553,900 | | | 2,844,814 | |
BP plc | | | 544,700 | | | 4,750,039 | |
Imperial Tobacco Group plc | | | 33,300 | | | 948,495 | |
Inchcape plc (a) | | | 1,239,400 | | | 648,853 | |
Kazakhmys plc | | | 52,000 | | | 1,101,476 | |
Marks & Spencer Group plc | | | 370,600 | | | 2,072,053 | |
Old Mutual plc (a) | | | 1,161,500 | | | 2,049,562 | |
Rentokil Initial plc (a) | | | 273,400 | | | 530,160 | |
Rio Tinto plc | | | 62,900 | | | 3,251,424 | |
Rolls-Royce Group plc | | | 289,600 | | | 2,551,380 | |
Royal Dutch Shell plc, A Shares | | | 200,987 | | | 6,305,823 | |
Thomas Cook Group plc | | | 175,500 | | | 665,648 | |
Travis Perkins plc (a) | | | 65,900 | | | 850,987 | |
Tui Travel plc | | | 208,700 | | | 890,202 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
United Kingdom, continued | | | | | | | |
Vodafone Group plc | | | 2,629,958 | | | 5,826,644 | |
Xstrata plc | | | 181,550 | | | 2,977,634 | |
| | | | |
|
| |
| | | | | | 43,010,048 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $207,498,152) | | | | | | 201,468,347 | |
| | | | |
|
| |
| | | | | | | |
Investment Company—1.0% | | | | | | | |
|
Northern Institutional Diversified Assets
Portfolio, Institutional Shares, 0.01% (b) | | | 2,025,228 | | | 2,025,228 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $2,025,228) | | | | | | 2,025,228 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $209,523,380) — 98.6% | | | | | | 203,493,575 | |
| | | | |
|
| |
| | |
| |
| Percentages indicated are based on net assets of $206,344,851. |
| | |
ADR — | American Depositary Receipt |
GDR — | Global Depositary Receipt |
PLC — | Public Limited Company |
|
(a) | Represents non-income producing security. |
| | |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 59 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
At April 30, 2010 the portfolio’s open foreign currency contracts were as follows:
| | | | | | | | | | | | | | | | | |
Currency | | | Delivery
Date | | Amount
(Local
Currency) | | Contract
Value
(U.S. Dollars)
($) | | Value
($) | | Unrealized
Appreciation/
(Depreciation)
($) | |
| | |
| |
| |
| |
| |
| |
SHORT CONTRACTS | | | | | | | | | | | | | | | | |
European Euro | | 7/15/2010 | | | 3,283,000 | | | 4,415,537 | | | 4,371,540 | | | 43,997 | | |
| | | | |
| | |
| | |
| | |
| | |
| | | | | | | | | | | | | | 43,997 | | |
| | | | | | | | | | | | | |
| | |
The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2010:
| | | | | |
Industry | | | Percent of Net Assets | |
| | |
| |
Aerospace & Defense | | 1.9 | % | |
Airlines | | 0.4 | % | |
Auto Components | | 0.4 | % | |
Automobiles | | 3.6 | % | |
Beverages | | 1.6 | % | |
Building Products | | 1.1 | % | |
Capital Markets | | 1.7 | % | |
Chemicals | | 1.2 | % | |
Commercial Banks | | 15.2 | % | |
Commercial Services & Supplies | | 0.3 | % | |
Communications Equipment | | 1.8 | % | |
Computers & Peripherals | | 1.2 | % | |
Construction & Engineering | | 0.5 | % | |
Construction Materials | | 0.1 | % | |
Distributors | | 0.3 | % | |
Diversified Financial Services | | 0.8 | % | |
Diversified Telecommunication Services | | 6.1 | % | |
Electric Utilities | | 3.6 | % | |
Electrical Equipment | | 0.3 | % | |
Electronic Equipment, Instruments & Components | | 1.7 | % | |
Energy Equipment & Services | | 0.8 | % | |
Food & Staples Retailing | | 1.2 | % | |
Gas Utilities | | 0.5 | % | |
| | | | | |
Industry | | | Percent of Net Assets | |
| | |
| |
Hotels, Restaurants & Leisure | | 0.8 | % | |
Household Durables | | 2.6 | % | |
Insurance | | 3.7 | % | |
Leisure Equipment & Products | | 0.5 | % | |
Machinery | | 0.5 | % | |
Media | | 2.5 | % | |
Metals & Mining | | 6.0 | % | |
Investment Companies | | 1.0 | % | |
Multiline Retail | | 1.5 | % | |
Office Electronics | | 0.3 | % | |
Oil, Gas & Consumable Fuels | | 10.3 | % | |
Pharmaceuticals | | 6.4 | % | |
Professional Services | | 1.5 | % | |
Real Estate Investment Trusts (REITS) | | 0.4 | % | |
Real Estate Management & Development | | 2.2 | % | |
Road & Rail | | 0.4 | % | |
Semiconductors & Semiconductor Equipment | | 2.0 | % | |
Software | | 0.1 | % | |
Specialty Retail | | 0.9 | % | |
Tobacco | | 1.7 | % | |
Trading Companies & Distributors | | 3.5 | % | |
Wireless Telecommunication Services | | 3.5 | % | |
| |
| | |
Total Investments | | 98.6 | % | |
| |
| | |
| | |
60 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.9% |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 14.7% | | | | | | | |
American Eagle Outfitters, Inc. | | | 135,050 | | | 2,270,190 | |
Ctrip.com International Ltd. ADR (a) | | | 61,500 | | | 2,245,980 | |
DeVry, Inc. | | | 22,550 | | | 1,406,895 | |
Discovery Communications, Inc., Class A (a) | | | 56,950 | | | 2,203,965 | |
Gentex Corp. | | | 99,000 | | | 2,127,510 | |
Hibbett Sports, Inc. (a) | | | 81,550 | | | 2,242,625 | |
Hospitality Properties Trust | | | 53,300 | | | 1,411,917 | |
O’Reilly Automotive, Inc. (a) | | | 44,200 | | | 2,160,938 | |
Scientific Games Corp., Class A (a) | | | 139,700 | | | 2,054,987 | |
WMS Industries, Inc. (a) | | | 48,550 | | | 2,428,471 | |
| | | | |
|
| |
| | | | | | 20,553,478 | |
| | | | |
|
| |
Consumer Staples – 3.4% | | | | | | | |
Church & Dwight Co., Inc. | | | 33,500 | | | 2,319,875 | |
Ralcorp Holdings, Inc. (a) | | | 35,600 | | | 2,369,180 | |
| | | | |
|
| |
| | | | | | 4,689,055 | |
| | | | |
|
| |
Energy – 11.7% | | | | | | | |
Consol Energy, Inc. | | | 77,880 | | | 3,479,678 | |
Denbury Resources, Inc. (a) | | | 173,900 | | | 3,330,185 | |
Ensco International plc ADR | | | 57,700 | | | 2,722,286 | |
Exterran Holdings, Inc. (a) | | | 99,800 | | | 2,909,170 | |
Massey Energy Co. | | | 105,350 | | | 3,858,971 | |
| | | | |
|
| |
| | | | | | 16,300,290 | |
| | | | |
|
| |
Financials – 4.7% | | | | | | | |
Credicorp Ltd. | | | 22,550 | | | 1,958,693 | |
First Horizon National Corp. (a) | | | 1 | | | 13 | |
Huntington Bancshares, Inc. | | | 93,800 | | | 635,026 | |
MSCI, Inc., Class A (a) | | | 43,400 | | | 1,503,810 | |
Waddell & Reed Financial, Inc., Class A | | | 68,000 | | | 2,524,160 | |
| | | | |
|
| |
| | | | | | 6,621,702 | |
| | | | |
|
| |
Health Care – 19.5% | | | | | | | |
Alexion Pharmaceuticals, Inc. (a) | | | 92,250 | | | 5,062,680 | |
Charles River Laboratories
International, Inc. (a) | | | 69,400 | | | 2,323,512 | |
DaVita, Inc. (a) | | | 48,800 | | | 3,046,584 | |
Elan Corp. plc ADR (a) | | | 272,300 | | | 1,829,856 | |
Hill-Rom Holdings, Inc. | | | 70,150 | | | 2,224,456 | |
IDEXX Laboratories, Inc. (a) | | | 45,200 | | | 2,989,528 | |
Illumina, Inc. (a) | | | 33,100 | | | 1,385,897 | |
Life Technologies Corp. (a) | | | 47,000 | | | 2,571,370 | |
MEDNAX, Inc. (a) | | | 24,237 | | | 1,331,581 | |
Mettler-Toledo International, Inc. (a) | | | 25,950 | | | 3,256,206 | |
Santarus, Inc. (a) | | | 186,000 | | | 610,080 | |
Skilled Healthcare Group, Inc., Class A (a) | | | 103,400 | | | 691,746 | |
| | | | |
|
| |
| | | | | | 27,323,496 | |
| | | | |
|
| |
Industrials – 14.1% | | | | | | | |
AMETEK, Inc. | | | 55,600 | | | 2,404,700 | |
BE Aerospace, Inc. (a) | | | 108,600 | | | 3,226,506 | |
Crane Co. | | | 63,200 | | | 2,271,408 | |
IDEX Corp. | | | 74,800 | | | 2,513,280 | |
Joy Global, Inc. | | | 27,450 | | | 1,559,435 | |
Landstar System, Inc. | | | 47,000 | | | 2,078,340 | |
Navigant Consulting, Inc. (a) | | | 125,450 | | | 1,615,796 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Industrials, continued | | | | | | | |
Waste Connections, Inc. (a) | | | 57,300 | | | 2,050,767 | |
WESCO International, Inc. (a) | | | 47,250 | | | 1,919,295 | |
| | | | |
|
| |
| | | | | | 19,639,527 | |
| | | | |
|
| |
Information Technology – 22.3% | | | | | | | |
Alliance Data Systems Corp. (a) | | | 45,600 | | | 3,422,736 | |
Altera Corp. | | | 73,400 | | | 1,861,424 | |
BMC Software, Inc. (a) | | | 66,550 | | | 2,619,408 | |
Brocade Communications Systems, Inc. (a) | | | 291,500 | | | 1,891,835 | |
Check Point Software Technologies Ltd. (a) | | | 77,250 | | | 2,751,645 | |
Citrix Systems, Inc. (a) | | | 44,200 | | | 2,077,400 | |
Comverse Technology, Inc. (a) | | | 161,400 | | | 1,481,652 | |
LSI Corp. (a) | | | 434,000 | | | 2,612,680 | |
Maxim Integrated Products, Inc. | | | 27,150 | | | 527,253 | |
Nuance Communications, Inc. (a) | | | 200,250 | | | 3,658,567 | |
ON Semiconductor Corp. (a) | | | 156,800 | | | 1,244,992 | |
Polycom, Inc. (a) | | | 44,150 | | | 1,437,083 | |
Salesforce.com, Inc. (a) | | | 33,075 | | | 2,831,220 | |
VeriFone Systems, Inc. (a) | | | 64,500 | | | 1,227,435 | |
VeriSign, Inc. (a) | | | 55,950 | | | 1,525,756 | |
| | | | |
|
| |
| | | | | | 31,171,086 | |
| | | | |
|
| |
Materials – 4.4% | | | | | | | |
Celanese Corp., Series A | | | 69,100 | | | 2,210,509 | |
Compass Minerals International, Inc. | | | 16,800 | | | 1,265,208 | |
Crown Holdings, Inc. (a) | | | 104,600 | | | 2,719,600 | |
| | | | |
|
| |
| | | | | | 6,195,317 | |
| | | | |
|
| |
Telecommunication Services – 2.1% | | | | | | | |
NII Holdings, Inc. (a) | | | 67,700 | | | 2,871,834 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $113,096,489) | | | | | | 135,365,785 | |
| | | | |
|
| |
Investment Companies—2.7% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Government Select
Portfolio, Shares Class, 0.04% (b) | | | 3,832,877 | | | 3,832,877 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $3,832,877) | | | | | | 3,832,877 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $116,929,366) — 99.6% | | | | | | 139,198,662 | |
| | | | |
|
| |
| | |
| |
| Percentages indicated are based on net assets of $139,767,158. |
| | |
ADR — | American Depositary Receipt |
| | |
PLC — | Public Limited Company |
| | |
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 61 |
|
HSBC INVESTOR VALUE PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.7% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 4.8% | | | | | | | |
CBS Corp., Class B | | | 24,450 | | | 396,335 | |
Viacom, Inc., Class B (a) | | | 56,500 | | | 1,996,145 | |
| | | | |
|
| |
| | | | | | 2,392,480 | |
| | | | |
|
| |
Consumer Staples – 7.8% | | | | | | | |
CVS Caremark Corp. | | | 25,900 | | | 956,487 | |
Kimberly-Clark Corp. | | | 19,900 | | | 1,219,074 | |
Kroger Co. (The) | | | 28,200 | | | 626,886 | |
Philip Morris International, Inc. | | | 22,600 | | | 1,109,208 | |
| | | | |
|
| |
| | | | | | 3,911,655 | |
| | | | |
|
| |
Energy – 17.0% | | | | | | | |
Apache Corp. | | | 19,400 | | | 1,974,144 | |
Canadian Natural Resources Ltd. | | | 16,000 | | | 1,231,040 | |
ConocoPhillips | | | 9,471 | | | 560,588 | |
Halliburton Co. | | | 21,500 | | | 658,975 | |
Hess Corp. | | | 12,100 | | | 768,955 | |
Noble Energy, Inc. | | | 19,500 | | | 1,489,800 | |
Occidental Petroleum Corp. | | | 12,000 | | | 1,063,920 | |
Talisman Energy, Inc. | | | 46,600 | | | 794,064 | |
| | | | |
|
| |
| | | | | | 8,541,486 | |
| | | | |
|
| |
Financials – 21.3% | | | | | | | |
Aon Corp. | | | 38,500 | | | 1,634,710 | |
Citigroup, Inc. (a) | | | 277,000 | | | 1,210,490 | |
Genworth Financial, Inc., Class A (a) | | | 50,800 | | | 839,216 | |
JP Morgan Chase & Co. | | | 22,150 | | | 943,147 | |
Loews Corp. | | | 41,240 | | | 1,535,778 | |
MetLife, Inc. | | | 42,000 | | | 1,914,360 | |
The Hartford Financial Services Group, Inc. | | | 43,900 | | | 1,254,223 | |
Wells Fargo & Co. | | | 42,700 | | | 1,413,797 | |
| | | | |
|
| |
| | | | | | 10,745,721 | |
| | | | |
|
| |
Health Care – 12.9% | | | | | | | |
Aetna, Inc. | | | 20,800 | | | 614,640 | |
Amgen, Inc. (a) | | | 33,700 | | | 1,933,032 | |
Merck & Co., Inc. | | | 37,600 | | | 1,317,504 | |
Pfizer, Inc. | | | 92,000 | | | 1,538,240 | |
Sanofi-Aventis ADR | | | 33,000 | | | 1,125,630 | |
| | | | |
|
| |
| | | | | | 6,529,046 | |
| | | | |
|
| |
Industrials – 10.3% | | | | | | | |
Ingersoll-Rand plc | | | 23,900 | | | 883,822 | |
Lockheed Martin Corp. | | | 18,400 | | | 1,561,976 | |
Pitney Bowes, Inc. | | | 39,500 | | | 1,003,300 | |
Raytheon Co. | | | 16,900 | | | 985,270 | |
Union Pacific Corp. | | | 10,000 | | | 756,600 | |
| | | | |
|
| |
| | | | | | 5,190,968 | |
| | | | |
|
| |
Information Technology – 10.1% | | | | | | | |
CA, Inc. | | | 101,200 | | | 2,308,372 | |
Microsoft Corp. | | | 21,700 | | | 662,718 | |
Motorola, Inc. (a) | | | 297,700 | | | 2,104,739 | |
| | | | |
|
| |
| | | | | | 5,075,829 | |
| | | | |
|
| |
Materials – 8.4% | | | | | | | |
AngloGold Ashanti Ltd. ADR | | | 40,727 | | | 1,704,832 | |
Barrick Gold Corp. | | | 48,000 | | | 2,090,400 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Materials, continued | | | | | | | |
The Mosaic Co. | | | 8,600 | | | 439,804 | |
| | | | |
|
| |
| | | | | | 4,235,036 | |
| | | | |
|
| |
Telecommunication Services – 2.7% | | | | | | | |
AT&T, Inc. | | | 26,600 | | | 693,196 | |
Verizon Communications, Inc. | | | 22,700 | | | 655,803 | |
| | | | |
|
| |
| | | | | | 1,348,999 | |
| | | | |
|
| |
Utilities – 1.6% | | | | | | | |
NRG Energy, Inc. (a) | | | 33,800 | | | 816,946 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $46,296,108) | | | | | | 48,788,166 | |
| | | | |
|
| |
Investment Companies—3.0% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Government Select
Portfolio, Shares Class, 0.04% (b) | | | 1,485,961 | | | 1,485,961 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $1,485,961) | | | | | | 1,485,961 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $47,782,069) — 99.7% | | | | | | 50,274,127 | |
| | | | |
|
| |
| | |
| |
| Percentages indicated are based on net assets of $50,438,531. |
| | |
ADR — | American Depositary Receipt |
PLC — | Public Limited Company |
| | |
(a) | Represents non-income producing security. |
| | |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
62 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
(This Page Intentionally Left Blank)
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International
Equity
Portfolio | | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | |
Investments in non-affiliates, at value | | $ | 92,284,558 | | $ | 203,493,575 | | $ | 139,198,662 | | $ | 50,274,127 | |
Foreign currency, at value | | | — | | | 1,027,557 | | | — | | | — | |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | 43,997 | | | — | | | — | |
Dividends receivable | | | 13,904 | | | 519,836 | | | 67,656 | | | 32,935 | |
Receivable for investments sold | | | 2,544,074 | | | 1,591,410 | | | 698,473 | | | 162,668 | |
Prepaid expenses and other assets | | | 441 | | | 68 | | | 886 | | | 231 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 94,842,977 | | | 206,676,443 | | | 139,965,677 | | | 50,469,961 | |
| |
|
| |
|
| |
|
| |
|
| |
|
Liabilities: | | | | | | | | | | | | | |
Payable for investments purchased | | | 1,857,669 | | | 156,907 | | | 86,396 | | | — | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | |
Investment Management | | | 44,465 | | | 122,845 | | | 93,325 | | | 21,826 | |
Administration | | | 1,596 | | | 3,664 | | | 2,408 | | | 859 | |
Compliance Services | | | 17 | | | 235 | | | 19 | | | 9 | |
Custodian | | | 1,825 | | | 22,589 | | | 2,359 | | | 706 | |
Trustee | | | 75 | | | 237 | | | 107 | | | 42 | |
Other | | | 9,228 | | | 25,115 | | | 13,905 | | | 7,988 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 1,914,875 | | | 331,592 | | | 198,519 | | | 31,430 | |
| |
|
| |
|
| |
|
| |
|
| |
|
Applicable to investors’ beneficial interest | | $ | 92,928,102 | | $ | 206,344,851 | | $ | 139,767,158 | | $ | 50,438,531 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investments, at cost | | $ | 77,240,469 | | $ | 209,523,380 | | $ | 116,929,366 | | $ | 47,782,069 | |
| |
|
| |
|
| |
|
| |
|
| |
Foreign currency, at cost | | $ | — | | $ | 1,030,180 | | $ | — | | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
64 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International
Equity
Portfolio | | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | |
Dividends | | $ | 293,975 | | $ | 2,400,128 | | $ | 300,881 | | $ | 380,676 | |
Foreign tax withholding | | | — | | | (216,269 | ) | | — | | | (1,578 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 293,975 | | | 2,183,859 | | | 300,881 | | | 379,098 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | |
Investment Management | | | 260,336 | | | 740,820 | | | 542,314 | | | 130,387 | |
Administration | | | 9,314 | | | 22,048 | | | 13,977 | | | 5,114 | |
Accounting | | | 21,877 | | | 43,508 | | | 22,042 | | | 21,986 | |
Compliance Services | | | 188 | | | 307 | | | 274 | | | 103 | |
Custodian | | | 3,785 | | | 94,317 | | | 6,190 | | | 1,592 | |
Printing | | | 2,282 | | | 5,457 | | | 3,161 | | | 1,260 | |
Professional | | | 2,356 | | | 3,988 | | | 3,511 | | | 1,660 | |
Trustee | | | 557 | | | 1,358 | | | 817 | | | 310 | |
Other | | | 1,503 | | | 3,301 | | | 2,252 | | | 850 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Expenses | | | 302,198 | | | 915,104 | | | 594,538 | | | 163,262 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Investment Income (Loss) | | | (8,223 | ) | | 1,268,755 | | | (293,657 | ) | | 215,836 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Realized/Unrealized Gains (Losses) from Investments: | | | | | | | | | | | | | |
Net realized gains (losses) from investments and foreign currency transactions | | | 4,524,536 | | | (2,839,558 | ) | | 9,087,545 | | | 299,115 | |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 8,343,374 | | | 5,787,247 | | | 21,086,436 | | | 6,091,061 | |
| |
|
| |
|
| |
|
| |
|
| |
|
Net realized/unrealized gains/(losses) from investments and foreign currency transactions | | | 12,867,910 | | | 2,947,689 | | | 30,173,981 | | | 6,390,176 | |
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 12,859,687 | | $ | 4,216,444 | | $ | 29,880,324 | | $ | 6,606,012 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 65 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Changes in Net Assets |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International Equity
Portfolio | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (8,223 | ) | $ | 136,286 | | $ | 1,268,755 | | $ | 4,063,044 | |
Net realized gains (losses) from investments and foreign currency transactions | | | 4,524,536 | | | (12,681,042 | ) | | (2,839,558 | ) | | (72,712,532 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 8,343,374 | | | 26,751,782 | | | 5,787,247 | | | 109,291,830 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 12,859,687 | | | 14,207,026 | | | 4,216,444 | | | 40,642,342 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 4,565,447 | | | 8,763,453 | | | 11,526,713 | | | 23,984,676 | |
Value of withdrawals | | | (12,659,916 | ) | | (16,749,107 | ) | | (26,546,511 | ) | | (46,787,723 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (8,094,469 | ) | | (7,985,654 | ) | | (15,019,798 | ) | | (22,803,047 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 4,765,218 | | | 6,221,372 | | | (10,803,354 | ) | | 17,839,295 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 88,162,884 | | | 81,941,512 | | | 217,148,205 | | | 199,308,910 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 92,928,102 | | $ | 88,162,884 | | $ | 206,344,851 | | $ | 217,148,205 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
66 | 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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (293,657 | ) | $ | (424,078 | ) | $ | 215,836 | | $ | 644,544 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 9,087,545 | | | (15,580,861 | ) | | 299,115 | | | (1,577,886 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 21,086,436 | | | 31,798,950 | | | 6,091,061 | | | 9,018,297 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 29,880,324 | | | 15,794,011 | | | 6,606,012 | | | 8,084,955 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 4,576,029 | | | 8,367,302 | | | 2,934,777 | | | 4,852,585 | |
Value of withdrawals | | | (24,437,516 | ) | | (22,382,631 | ) | | (8,788,414 | ) | | (12,914,556 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (19,861,487 | ) | | (14,015,329 | ) | | (5,853,637 | ) | | (8,061,971 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 10,018,837 | | | 1,778,682 | | | 752,375 | | | 22,984 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 129,748,321 | | | 127,969,639 | | | 49,686,156 | | | 49,663,172 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 139,767,158 | | $ | 129,748,321 | | $ | 50,438,531 | | $ | 49,686,156 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 67 |
|
HSBC INVESTOR PORTFOLIOS |
|
Financial Highlights |
| | | | | | | | | | | | | | | | | | | | | |
| | | | Ratio/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) | |
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|
|
GROWTH PORTFOLIO | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (37.75 | )%(e) | | | | 81,942 | | | 0.62 | % | | 0.19 | % | | 0.62 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 19.31 | % | | | | 88,163 | | | 0.69 | % | | 0.17 | % | | 0.69 | % | | 65.67 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 15.11 | % | | | | 92,928 | | | 0.67 | % | | (0.02 | )% | | 0.67 | % | | 42.87 | % | |
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|
INTERNATIONAL EQUITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (51.79 | )% | | | | 199,309 | | | 0.76 | % | | 2.65 | % | | 0.76 | % | | 28.98 | % | |
Year Ended October 31, 2009 | | 24.16 | % | | | | 217,148 | | | 0.88 | % | | 2.23 | % | | 0.88 | % | | 58.31 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 1.62 | % | | | | 206,345 | | | 0.86 | % | | 1.19 | % | | 0.86 | % | | 35.03 | % | |
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|
OPPORTUNITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (35.30 | )% | | | | 127,970 | | | 0.87 | % | | (0.46 | )% | | 0.87 | % | | 80.42 | % | |
Year Ended October 31, 2009 | | 15.41 | % | | | | 129,748 | | | 0.90 | % | | (0.37 | )% | | 0.90 | % | | 64.91 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 24.35 | % | | | | 139,767 | | | 0.88 | % | | (0.43 | )% | | 0.88 | % | | 26.31 | % | |
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|
VALUE PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (39.91 | )% | | | | 49,663 | | | 0.64 | % | | 1.54 | % | | 0.64 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 20.05 | % | | | | 49,686 | | | 0.68 | % | | 1.41 | % | | 0.68 | % | | 19.77 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 13.96 | % | | | | 50,439 | | | 0.66 | % | | 0.87 | % | | 0.66 | % | | 14.64 | % | |
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(a) | Not annualized for period less than one year. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During each 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 0.05%, 0.04% and 0.05% for the Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively. |
| |
(e) | During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Growth Portfolio related to violations of certain investment policies and limitations. The corresponding impact to total return was 0.08%. |
| | |
68 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (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 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 all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. 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 Portfolio Trust’s 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 Portfolio Trust may enter into contracts with its 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 Portfolio Trust expects the 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 certain 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
| |
| Securities Valuation: |
| |
| The Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below. |
| |
| Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market. Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices 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 pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures 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 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 |
| |
HSBC INVESTOR PORTFOLIOS | 69 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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. |
| |
| Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. Repurchase agreements are valued at original cost. |
| |
| 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. |
| |
| 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. |
| |
| Management of the Portfolios has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
| |
| New Accounting Pronouncements: |
| |
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Portfolio Trust’s financial statements and related disclosures. |
| |
| Derivative Instruments |
| |
| All open derivative positions at period end are reflected on the Portfolio’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Portfolios, including the primary underlying risk exposures related to each instrument type. |
| |
70 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Foreign Currency Exchange Contracts: |
| |
| Each Portfolio may enter into foreign currency exchange contracts. The Portfolios enter into foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, 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 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. The contract amount of foreign currency exchange contracts outstanding was $4.4 million as of April 30, 2010. The monthly average contract amount for these contracts was $2.8 million for the period ended April 30, 2010. |
| |
| Futures Contracts: |
| |
| Each Portfolio may invest in futures contracts. The Portfolios use futures contracts for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a 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. A Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolios and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Portfolios did not hold any futures contracts. |
| |
| Summary of Derivative Instruments: |
| |
| The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of April 30, 2010: |
| | | | | | | | | | |
| | | Asset Derivatives | | Liability Derivatives | |
| | |
| |
| |
Primary Risk Exposure | | Statements of Assets
and Liabilities
Location | | Total Fair
Value* | | Statements of Assets
and Liabilities
Location | | Total Fair
Value* | |
| |
| |
| |
| |
| |
Foreign Currency Exchange Contracts | | Unrealized appreciation on foreign currency exchange contracts | | $43,997 | | Unrealized depreciation on foreign currency exchange contracts | | $— | |
| | | |
| |
|
| | * | Total Fair Value is presented by Primary Risk Exposure. For foreign currency exchange contracts, such amounts represent the unrealized gain/appreciation (for asset derivatives) or loss/depreciation (for liability derivatives). |
| | | |
| The derivative instruments had the following impact on the Statements of Operations for the International Equity Portfolio for the period ended April 30, 2010: |
| | | | | | | | |
Primary Risk Exposure | | Location of
Gain (Loss)
on Derivatives
Recognized in Income | | Realized
Gain (Loss)
on Derivatives
Recognized in Income | | Change in Unrealized
Appreciation/Depreciation
on Derivatives
Recognized in Income | |
| |
| |
| |
| |
Foreign Currency Exchange Contracts | | Net realized gains (losses) from investments and foreign currency transactions/change in unrealized appreciation/depreciation from investments and foreign currencies | | $(22,708) | | $49,058 | |
| |
HSBC INVESTOR PORTFOLIOS | 71 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | | |
3. | Investment Valuation Summary: |
| | | |
| The valuation techniques employed by the Portfolios, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Portfolios’ investments are summarized in the three broad levels listed below: |
| | | |
| | • | Level 1: quoted prices in active markets for identical assets |
| | | |
| | • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
| | | |
| | • | Level 3: significant unobservable inputs (including a Portfolio’s own assumptions in determining the fair value of investments) |
| | | |
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. |
| | | |
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Portfolios’ investments based upon three levels defined above: |
| | | | | | | | | | | | | | |
| | | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
| | |
| |
| |
| |
| |
| Growth Portfolio | | | | | | | | | | | | | |
| Investment Securities: | | | | | | | | | | | | | |
| Common Stocks (a) | | $ | 89,513,624 | | $ | — | | $ | — | | $ | 89,513,624 | |
| Investment Companies | | | 2,770,934 | | | — | | | — | | | 2,770,934 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total Investments | | $ | 92,284,558 | | $ | — | | $ | — | | $ | 92,284,558 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | |
| International Equity Portfolio | | | | | | | | | | | | | |
| Investment Securities: | | | | | | | | | | | | | |
| Common Stocks: (+) | | | | | | | | | | | | | |
| Brazil | | $ | 1,035,579 | | $ | — | | $ | — | | $ | 1,035,579 | |
| Canada | | | 8,618,926 | | | — | | | — | | | 8,618,926 | |
| South Korea | | | 1,746,015 | | | 2,393,422 | | | — | | | 4,139,437 | |
| Spain | | | 4,137,960 | | | 2,414,892 | | | — | | | 6,552,852 | |
| United Kingdom | | | 3,251,424 | | | 39,758,624 | | | — | | | 43,010,048 | |
| All other Common Stocks (a)(b) | | | — | | | 138,111,505 | | | — | | | 138,111,505 | |
| Investment Companies | | | 2,025,228 | | | — | | | — | | | 2,025,228 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total Investment Securities | | | 20,815,132 | | | 182,678,443 | | | — | | | 203,493,575 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Other Financial Instruments* | | | — | | | 43,997 | | | — | | | 43,997 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total Investments | | $ | 20,815,132 | | $ | 182,722,440 | | $ | — | | $ | 203,537,572 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | |
| Opportunity Portfolio | | | | | | | | | | | | | |
| Investment Securities: | | | | | | | | | | | | | |
| Common Stocks (a) | | $ | 135,365,785 | | $ | — | | $ | — | | $ | 135,365,785 | |
| Investment Companies | | | 3,832,877 | | | — | | | — | | | 3,832,877 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total Investments | | $ | 139,198,662 | | $ | — | | $ | — | | $ | 139,198,662 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | |
| Value Portfolio | | | | | | | | | | | | | |
| Investment Securities: | | | | | | | | | | | | | |
| Common Stocks (a) | | $ | 48,788,166 | | $ | — | | $ | — | | $ | 48,788,166 | |
| Investment Companies | | | 1,485,961 | | | — | | | — | | | 1,485,961 | |
| | |
|
| |
|
| |
|
| |
|
| |
| Total Investments | | $ | 50,274,127 | | $ | — | | $ | — | | $ | 50,274,127 | |
| | |
|
| |
|
| |
|
| |
|
| |
| | | |
| |
|
| | * | Other financial instruments would include any derivative instruments, such as any currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. |
| | | |
| | (a) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. |
| | | |
| | (b) | For detailed country descriptions, see the accompanying Schedules of Portfolio Investments. |
| | | |
| | (+) | Based on the domicile of the security issuer. |
| |
72 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
4. | Related Party Transactions and Other Agreements: |
| |
| Investment Management: |
| |
| HSBC Global Asset Management (USA) Inc. (“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 Winslow Capital Management, Inc., AllianceBernstein L.P., Westfield Capital Management Company, L.P. and NWQ Investment Management Company, LLC serve as Investment Sub-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 their services, the Investment Adviser and Winslow Capital Management, Inc. (“Winslow”) 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 all Sub-Adviser serviced funds and separate accounts affiliated with HSBC: | | | Fee Rate* | |
|
| | |
| |
| Up to $250 million | | 0.575% | |
| In excess of $250 million but not exceeding $500 million | | 0.525% | |
| In excess of $500 million but not exceeding $750 million | | 0.475% | |
| In excess of $750 million but not exceeding $1 billion | | 0.425% | |
| In excess of $1 billion | | 0.375% | |
| | | |
| |
|
| | * | The Growth Portfolio may pay the Investment Adviser and Winslow an aggregate maximum fee of up to 0.68%. Currently, the Investment Adviser’s contractual fee is 0.175% and Winslow’s maximum contractual fee is 0.40%. Accordingly, the current aggregate maximum fee rate is 0.575%. |
| | | |
| For their services, the Investment Adviser and AllianceBernstein L.P. 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 Company, L.P. 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 Company, 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% | |
| | | |
| Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time. |
| | | |
| Administration: |
| | | |
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly at annual rate of: |
| | | | | |
| Based on Average Daily Net Assets of | | | Fee Rate | |
|
| | |
| |
| Up to $10 billion | | 0.0550% | |
| In excess of $10 billion but not exceeding $20 billion | | 0.0350% | |
| In excess of $20 billion but not exceeding $50 billion | | 0.0275% | |
| In excess of $50 billion | | 0.0250% | |
| |
HSBC INVESTOR PORTFOLIOS | 73 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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 HSBC Investor 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 the HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios a master-feeder structure. |
| |
| 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 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 Portfolio Trust and the other HSBC Investor Funds (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 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 $134,557 for the period ended April 30, 2010, 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 individuals as employees of Citi Ohio. |
| |
| Fund Accounting and Trustees: |
| |
| Citi Ohio provides fund accounting services for the Portfolio Trust. 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. |
| |
| Each non-interested Trustee is compensated with a $60,000 annual Board retainer for services as a Trustee of the HSBC Investor Family of Funds (or the “Trusts”), as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. 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 or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
5. | Investment Transactions: |
| |
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
| | | | | | | | | |
| Portfolio Name | | | Purchases
(excluding U.S.
Government) | | Sales
(excluding U.S.
Government) | |
|
| | |
| |
| |
| Growth Portfolio | | $ | 37,816,332 | | $ | 45,869,435 | |
| International Equity Portfolio | | | 72,692,064 | | | 87,789,444 | |
| Opportunity Portfolio | | | 34,452,098 | | | 52,088,364 | |
| Value Portfolio | | | 7,090,251 | | | 12,990,458 | |
| |
| For the period ended April 30, 2010, there were no long-term U.S. Government securities held by the Portfolio Trust. |
| |
74 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
6. | Federal Income Tax Information: |
| |
| At April 30, 2010, the cost basis of securities 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($) | | Net Unrealized
Appreciation/
(Depreciation)($)* | |
|
| | |
| |
| |
| |
| |
| Growth Portfolio | | 75,227,448 | | 18,506,843 | | (1,449,733 | ) | 17,057,110 | |
| International Equity Portfolio | | 210,390,549 | | 16,398,271 | | (23,295,245 | ) | (6,896,974 | ) |
| Opportunity Portfolio | | 119,573,400 | | 30,466,172 | | (10,840,910 | ) | 19,625,262 | |
| Value Portfolio | | 47,766,607 | | 7,769,399 | | (5,261,879 | ) | 2,507,520 | |
| |
|
* | The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales. |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Portfolios. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Portfolios will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Portfolio will be disclosed in the Financial Highlights after the date of payment. |
| |
HSBC INVESTOR PORTFOLIOS | 75 |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) |
| | |
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
| | |
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
| | |
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
| | |
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
| | |
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
| | |
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and 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 Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
| |
76 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| |
| Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The 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. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
| |
| With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
| |
| The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
| |
| The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
| |
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
| |
| Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
| |
| The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
| |
| With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
| |
| The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
| |
| The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
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HSBC INVESTOR PORTFOLIOS | 77 |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| |
| Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
| |
Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
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78 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Table of Shareholder Expenses (unaudited)—as of April 30, 2010 |
| |
| As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Portfolio 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, 2009 through April 30, 2010. |
| |
| 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| |
| |
| |
| |
| |
Growth Portfolio | | $ | 1,000.00 | | $ | 1,151.10 | | $ | 3.57 | | 0.67 | % | |
International Equity Portfolio | | | 1,000.00 | | | 1,016.20 | | | 4.30 | | 0.86 | % | |
Opportunity Portfolio | | | 1,000.00 | | | 1,243.50 | | | 4.90 | | 0.88 | % | |
Value Portfolio | | | 1,000.00 | | | 1,139.60 | | | 3.50 | | 0.66 | % | |
| | |
| |
* | 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). |
| |
| 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 the ongoing costs of investing in a Portfolio and other funds. To do so, 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), on purchases and redemptions of shares (if applicable). 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| |
| |
| |
| |
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Growth Portfolio | | $ | 1,000.00 | | $ | 1,021.47 | | $ | 3.36 | | 0.67 | % | |
International Equity Portfolio | | | 1,000.00 | | | 1,020.53 | | | 4.31 | | 0.86 | % | |
Opportunity Portfolio | | | 1,000.00 | | | 1,020.43 | | | 4.41 | | 0.88 | % | |
Value Portfolio | | | 1,000.00 | | | 1,021.52 | | | 3.31 | | 0.66 | % | |
| | |
| |
* | 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 | 79 |
Other Information:
Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) 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; (ii) on the HSBC Investor Family of Funds’ web-site at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Portfolios’ Form N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the HSBC Investor Family of Funds’ website at www.investorfunds.us.hsbc.com.
An investment in a Portfolio 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.
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80 | HSBC INVESTOR PORTFOLIOS |
| | |
HSBC INVESTOR FAMILY OF FUNDS: | | SHAREHOLDER SERVICING AGENTS |
| | For HSBC Bank USA, N.A. and |
INVESTMENT ADVISER AND ADMINISTRATOR | | HSBC Securities (USA) Inc. Clients |
HSBC Global Asset Management (USA) Inc. | | HSBC Bank USA, N.A. |
452 Fifth Avenue | | 452 Fifth Avenue |
New York, NY 10018 | | New York, NY 10018 |
| | 1-888-525-5757 |
SUB-ADVISERS | | |
HSBC Investor Growth Portfolio | | For All Other Shareholders |
Winslow Capital Management, Inc. | | HSBC Investor Funds |
4720 IDS Tower | | P.O. Box 182845 |
80th South Eighth Street | | Columbus, OH 43218-2845 |
Minneapolis, MN 55402 | | 1-800-782-8183 |
| | |
HSBC Investor International Equity Portfolio | | TRANSFER AGENT |
AllianceBernstein L.P. | | Citi Fund Services |
1345 Avenue of the Americas, 39th Floor | | 3435 Stelzer Road |
New York, NY 10105 | | Columbus, OH 43219 |
| | |
HSBC Investor Mid-Cap Fund | | DISTRIBUTOR |
Munder Capital Management | | Foreside Distribution Services, L.P. |
Munder Capital Center | | 690 Taylor Road, Suite 150 |
480 Pierce Street | | Gahanna, OH 43230-3202 |
Birmingham, MI 48009-6063 | | |
| | CUSTODIAN |
HSBC Investor Opportunity Portfolio | | The Northern Trust Company |
Westfield Capital Management Company, L.P. | | 50 South LaSalle Street |
One Financial Center | | Chicago, IL 60603 |
Boston, MA 02111 | | |
| | INDEPENDENT REGISTERED PUBLIC |
HSBC Investor Value Portfolio | | ACCOUNTING FIRM |
NWQ Investment Management Company, LLC | | KPMG LLP |
2049 Century Park East, 16th Floor | | 191 West Nationwide Blvd., Suite 500 |
Los Angeles, CA 90067 | | 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 |
| | | |
HSB-0008 | | | 6/10 |
HSBC Global Asset Management (USA) Inc.
April 30, 2010
HSBC Investor Funds
Semi-Annual Report
MONEY MARKET FUNDS
HSBC Investor California Tax-Free Money Market Fund
HSBC Investor New York Tax-Free Money Market Fund
HSBC Investor Prime 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
HSBC Investor Family of Funds
Semi-Annual Report - April 30, 2010
(This Page Intentionally Left Blank)
Barclays Capital U.S. Aggregate Bond 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.
Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.
Lipper California Tax-Exempt Money Market Funds Average is an equally weighted average of mutual funds that invest in California municipal obligations with dollar weighted average maturities of less than 90 days. These funds intend to keep a constant net asset value.
Lipper Money Market Funds Average is an equally weighted average of 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. These funds intend to keep constant net asset value.
Lipper New York Tax-Exempt Money Market Funds Average is an equally weighted average of mutual funds that invest in New York municipal obligations with dollar weighted average maturities of less than 90 days. These funds intend to keep a constant net asset value.
Lipper Tax- Exempt Money Market Funds Average is an equally weighted average of mutual funds that invest in high-quality municipal obligations with dollar-weighted average maturities of less than 90 days. These funds intend to keep constant net asset value.
Lipper U.S. Government Money Market Funds Average is an equally weighted average of 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. These funds intend to keep constant net asset value.
Lipper U.S. Treasury Money Market Funds Average is an equally weighted average of mutual funds that invest principally in U.S. Treasury obligations with dollar weighted average maturities of less than 90 days. These funds intend to keep a constant net asset value.
Russell 2000® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
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 indices assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Funds do not match those in the indices and performance of the Funds will differ. Investors cannot invest directly in an index.
June 3, 2010
To Our Shareholders:
Some calm prevailed in the U.S. financial markets in the first half of our current fiscal year. Signs of economic recovery, which included tentative upticks in consumer spending, housing, and continued very low interest rates soothed investors. After the tumult of the past two-plus years, this tranquility was most welcome. Then, however, the specter of sovereign defaults in the Southern Eurozone countries sparked a significant global sell-off in risk assets and a decline in the Euro, the countries’ common currency.
It reminded us again both of how inter-connected the world economy and markets truly are and of the importance of a global view even if one’s focus is largely on the U.S. market. One of your board’s most important duties is to monitor and analyze fund performance. We are immeasurably aided in this effort by the global MultiManager team of the Funds’ investment adviser, HSBC Global Asset Management (USA), Inc. With staff deployed around the world, they are equipped to assay events like those in the Eurozone area, to find and monitor superior managers, and to translate that into advantage for our fund offerings. In the section labeled “Finding the World’s Most Talented Investment Managers” we describe this valuable resource, which we believe significantly distinguishes our Funds from our competitors’.
Total assets in our Funds have declined slightly—a not-unexpected consequence of record low yields and investors’ somewhat renewed appetite for risk. Total assets declined to $24.9 billion at April 30, 2010, from $31.1 billion six months earlier, paced by a decline in our money market funds to $24.3 billion from $30.5 billion over the same period. Our investment advisor and service providers continue to waive a portion of their fees associated with the money market funds in order to limit expenses and maintain a competitive yield on these funds; these waivers amounted to approximately $13 million for the six months ended April 30, 2010.
Assets in our “long-term” funds, which include the HSBC World Selection Funds and the HSBC Investor equity funds, increased to $568.6 million as of April 30, 2010, from $521.0 million six months earlier. This increase reflects both shareholder activity and the change in value of the Funds’ investments. In general, the Funds performed very well. Of our five equity funds, three were in the top quartile of comparable funds, as measured by Lipper, Inc. for the five year period ended April 30, 2010. The four World Selection Funds converted from the previous LifeLine Funds with new asset allocation models and new underlying investments on January 19, 2010. Performance comparisons for the brief period of time from that date through April 30 are largely irrelevant, but all four funds posted positive returns for this brief period. More information on your funds’ performance is presented in the portfolio managers’ letters in this report.
Our annual report referred to the Jones v Harris Associates case that was then before the U.S. Supreme Court. We were pleased that in its ruling the Court essentially upheld the 25 year-old Gartenberg standard, which confirms the right of boards to set advisory fees.
In the regulatory area, the Securities and Exchange Commission (“SEC”) recently adopted several important amendments to Rule 2a-7, which governs money market funds. The changes, which relate in part to portfolio liquidity and increased transparency for investment holdings, are designed to help ensure that money market funds can meet redemption requirements, especially in a systemic crisis like that which afflicted The Reserve Fund in September 2008, causing it to “break the buck” and delay redemptions. The amendments also afford money market funds and their boards additional tools to help deal with such extraordinary circumstances. We are pleased to report that HSBC Global Asset Management, the investment advisor to the HSBC Investor money market funds, adopted internal investment policies that comply with the SEC’s new liquidity requirements in early 2009—well before they became law.
Also in the regulatory area, the SEC’s mutual fund chief has urged fund companies to consider enhancing their communications with shareholders, a directive we strongly support; we welcome shareholders’ input and suggestions on how we might do so. The SEC also has signaled its intent to review Rule 12b-1, which permits mutual funds to use a portion of their assets to promote sales of fund shares. We support this move and look forward to the Commission’s review.
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1 | HSBC INVESTOR FAMILY OF FUNDS |
|
Chairman’s Message (continued) |
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The advisor’s Chief Executive Officer recently retired from HSBC Global Asset Management (USA) Inc. and the Funds’ board of trustees. In light of this development, the independent trustees in April decided to keep the board at its current composition of six independent members.
Those of us who have managed money ourselves and served as fund directors for many years, evaluating the performance of our advisor and sub-advisors, are constantly reminded of how very hard it is to sustain superior investment performance—and how important it is to assure that above average results are being obtained without undue risk.
We believe that we have a great team of investment professionals working on your behalf and pledge our very best effort in seeing that they do their best for you.
Cordially,
Michael Seely
Chairman, HSBC Investor Funds
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Finding the World’s Most Talented Investment Managers |
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Investors are faced with numerous decisions and literally thousands of choices when building their investment portfolio. Allocating among asset classes, investing directly in a security or selecting to invest in a fund, and choosing the right investment manager(s) are just a few of the decisions investors have to make. |
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Successfully choosing among thousands of available investment managers is particularly challenging. It requires expertise, knowledge and continuous access to information. As a result, many investors are turning to professionals to select their investment managers, including their financial advisors and full-time “multimanager” research teams. |
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HSBC Multimanager |
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Multimanager investment professionals research and recommend asset management firms on a full-time basis. They typically analyze numerous important factors, such as philosophy, process, team tenure, risk profiles and performance in order to recommend sound, talented investment management firms and teams. |
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HSBC Multimanager, the dedicated team of specialists within HSBC Global Asset Management, advises the HSBC Investor Equity Funds and the HSBC World Selection Funds. This team is comprised of more than 50 investment professionals in 12 locations around the world*. The members of the Multimanager team focus on specific markets to identity optimal managers within globally diversified portfolios. |
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HSBC Multimanager evaluates each manager’s investment process and the way it is implemented, using both quantitative and qualitative criteria. They aim to select managers with clearly identifiable skills that give them an advantage over their peers. The team also seeks managers that complement each other in a diversified portfolio. Such managers come from a range of firms, including both global firms and specialist boutiques. |
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Investors may want to consider employing the full-time expertise of a multimanager program. The knowledge and expertise of a dedicated team of specialists - who continuously evaluate local and global managers - can be very powerful. We believe HSBC Multimanager can assist investors in evaluating and recommending investment managers in order to help achieve long-term investment objectives. |
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*As of March 2010 |
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HSBC INVESTOR FAMILY OF FUNDS | 2 |
Dear Shareholder,
Welcome to the HSBC Investor Funds semiannual report, covering the period between November 1, 2009 and April 30, 2010. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.
Inside these pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he describes developments in the Funds’ management and structure. The report also provides commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average.
We remain focused on providing value for shareholders. During this period we waived management and servicing fees on the HSBC Investor money market funds. This move enabled the funds to maintain positive yields for investors, despite the historically low level of short-term interest rates. Meanwhile, our Multimanager team continued to monitor the performance of the HSBC Investor equity funds’ sub-advisors and the underlying funds in the World Selection Funds. A description of our Multimanager team is also included as part of this report; we hope you find it to be of interest. We believe that Multimanager’s oversight has helped the Equity and World Selection Funds provide shareholders with competitive returns.
In closing, we would like to thank you for investing through the HSBC Investor Funds. We appreciate the trust you place in us, and will continue working to earn it. Please contact us at any time with questions or concerns.
Sincerely,
Richard A. Fabietti
President
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3 | HSBC INVESTOR FAMILY OF FUNDS |
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Commentary From the Investment Manager |
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HSBC Global Asset Management (USA) Inc. |
U.S. Economic Review
The six-month period ended April 30, 2010 began in the midst of a global economic recovery. Aggressive fiscal and monetary stimulus by governments around the world prior to the period laid the groundwork for a rebound. Indeed, the Federal Reserve Board held the federal funds rate at a historically low target range between 0.00% to 0.25%, and maintained that level throughout the period. At the beginning of the six months under review, encouraging corporate earnings results and improving consumer-spending levels suggested the rebound was gaining steam.
The global economic recovery experienced some setbacks during the period, however, primarily because of events in overseas markets such as the United Arab Emirates and the European Union. In the U.A.E., a government-owned holding company involved in prominent real estate projects unexpectedly announced a restructuring of its debt, shaking investor confidence in the credit markets. Later in the period economic difficulties in Greece and certain other E.U. countries spread through Europe, dampening the prospects for recovery in Europe and around the world.
U.S. and international economic data improved as the period progressed. However, as April drew to a close, rising unemployment figures and weakening consumer spending in some international markets led to questions about the stability of the global economic recovery.
Market Review
The economic recovery helped fuel a rally in the financial markets that lasted through much of the six months under review.
Investors early in the period became increasingly comfortable with investing in higher-risk areas of the financial markets, helping to fuel strong performance among emerging markets and small-cap stocks. While small-cap stocks continued to perform well during the period, mounting economic troubles in European countries including Greece, Portugal, Ireland, Italy and Spain halted the rally in international stocks, and emerging-markets stocks in particular resulting in a 2.68% return for the MSCI Europe, Australasia and Far East (EAFE) Index1.
During the period domestic stocks experienced much stronger returns. The S&P 500 Index1 of large-company stocks returned 15.66%, while the Russell 2000® Index1 of small-company stocks returned 28.17%. Early in the period investors were drawn to relatively low stock-market valuations. Subsequently, increased optimism about the strength and breadth of the U.S. economic recovery and improving corporate earnings drove the market’s strong gains.
Among fixed-income securities, the low interest rate environment in the beginning of the period led investors to seek out the additional yield available on higher-risk securities such as corporate bonds. The pursuit of higher yields initially led to low demand for government bonds. Demand increased slightly as the period wore on, but Treasuries still lagged the rest of the fixed-income market for the six months as a whole, in part because of concerns that the U.S. government would have to issue a significant amount of debt to cover the rising federal deficit.
The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad fixed-income market, returned 2.54% for the period, while the Barclays Capital U.S. Corporate High-Yield Bond Index1 returned 11.70%.
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1 | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 4 |
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Portfolio Reviews |
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HSBC Investor California Tax-Free Money Market Fund |
(Class A Shares, C Shares, D Shares and Y Shares) |
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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 this 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 issues they invest in are located in one geographical area.
The Federal Reserve Board (the “Fed”) maintained its target short-term interest rate at a historically low range between 0% and 0.25% during the six months through April 30, 2010. The low target rate caused yields on money market securities to remain below historical norms.
Credit quality diminished across the municipal sector as declining tax receipts led to widening budget deficits for state and city governments. The Fund’s management positioned the portfolio defensively in response to the challenging credit environment during the period, diversifying away from securities of weaker issuers to help further the primary goal of capital preservation. The Fund’s management also maximized liquidity by maintaining a weighted average maturity shorter than the majority of the Fund’s peers.*
The supply of money market eligible tax-free securities was low throughout the period, due to the success of the federal government’s Build America bond program, which partially subsidizes interest paid by state and local governments. In addition, municipalities have issued longer-term debt to take advantage of historically low interest rates and to help reduce dependence on less stable short-term funding.
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* | Portfolio composition is subject to change. |
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Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)1 | | Expense
Ratio (%)2 | |
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As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
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Class A3 | | 3/2/07 | | 0.01 | | | 0.02 | | — | | 0.64 | | | 0.01 | | 0.82 | | 0.81 | |
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Class C3,4 | | 5/7/07 | | — | | | — | | — | | 1.75 | | | — | | 1.42 | | 1.41 | |
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Class D | | 6/17/02 | | 0.01 | | | 0.02 | | 1.76 | | 1.39 | | | 0.01 | | 0.67 | | 0.66 | |
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Class Y | | 7/18/02 | | 0.01 | | | 0.06 | | 1.96 | | 1.62 | | | 0.01 | | 0.42 | | 0.41 | |
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Lipper California Tax-Exempt Money Market Funds Average5 | | — | | 0.02 | | | 0.06 | | 1.80 | | 1.41 | 6 | | 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, 2010 through March 1, 2011.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
4 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
3 | 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 332 days during the year ended October 31, 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, 152 days during the year ended October 31, 2008 and 28 days during the year ended October 31, 2009. |
| |
5 | For additional information, please refer to the Glossary of Terms. |
| |
6 | Return for the period 5/31/02 to 10/31/09. |
| |
5 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor New York Tax-Free Money Market Fund |
(Class A Shares, B 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 issues they invest in are located in one geographical area.
The Federal Reserve Board (the “Fed”) maintained its target short-term interest rate at a historically low range between 0% and 0.25% during the six months through April 30, 2010. The low target rate caused yields on money market securities to remain below historical norms.
Credit quality diminished across the municipal sector as declining tax receipts led to widening budget deficits for state and city governments. The Fund’s management positioned the portfolio defensively in response to the challenging credit environment during the period, diversifying away from securities of weaker issuers to help further the primary goal of capital preservation. The Fund’s management also maximized liquidity by maintaining a weighted average maturity shorter than the majority of the Fund’s peers.*
The supply of money market eligible tax-free securities was low throughout the period, due to the success of the federal government’s Build America bond program, which partially subsidizes interest paid by state and local governments. In addition, municipalities have issued longer-term debt to take advantage of historically low interest rates and to help reduce dependence on less stable short-term funding.
| |
* | Portfolio composition is subject to change. |
| | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | | | Average Annual
Total Return (%) | | | Yield (%)1 | | Expense
Ratio (%)2 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year | | 5
Year | | 10
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A | | 11/17/94 | | 0.01 | | | 0.02 | | | 1.73 | | 1.51 | | 2.02 | | | 0.01 | | 0.64 | | 0.64 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B3 | | 4/29/98 | | -3.99 | | | -3.97 | | | 1.28 | | 0.89 | | 0.89 | | | 0.02 | | 1.24 | | 1.24 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class D | | 4/1/99 | | 0.01 | | | 0.02 | | | 1.85 | | 1.64 | | 1.76 | | | 0.01 | | 0.49 | | 0.49 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y | | 7/1/96 | | 0.01 | | | 0.05 | | | 2.06 | | 1.88 | | 2.21 | | | 0.04 | | 0.24 | | 0.24 | |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lipper New York Tax-Exempt Money Market Funds Average4 | | — | | 0.01 | | | 0.08 | | | 1.85 | | 1.63 | | 2.14 | 5 | | N/A | | N/A | | N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
4 | For additional information, please refer to the Glossary of Terms. |
| |
5 | Return for the period 10/31/94 to 4/30/10. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 6 |
|
Portfolio Reviews |
|
HSBC Investor Prime Money Market Fund |
(Class A Shares, B Shares, C 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.
Low interest rates had a significant impact on the money markets during the six-month period through April 30, 2010. The federal funds rate, a key short-term interest rate, remained within a range of 0.00% to 0.25% throughout the period.
The low interest rates resulted in outflows throughout the money market industry as investors sought investments with more attractive yields. Meanwhile, recent regulatory changes by the Securities and Exchange Commission required money market funds to maintain minimum liquidity, which led to shorter weighted average maturities and lower yields across the industry.
The period began with low supply in money markets, as corporations reduced the issuance of such securities to shore up their year-end balance sheets. As a result, we positioned the Fund during the period with a focus on longer-term issues such as three- and six-month securities. As the period wore on and a more normal supply-and-demand environment returned, we were able to shorten the Fund’s average maturity to around 45 days.*
We purchased floating-rate notes during the period to prepare for the possibility that interest rates may move higher this calendar year. Such securities are designed to adjust their interest rates quickly when the general level of interest rates shifts.*
| |
* | Portfolio composition is subject to change. |
| | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | | | Average Annual
Total Return (%) | | | | Yield (%)1 | | Expense
Ratio (%)2 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months† | | 1
Year | | 5
Year | | 10
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A | | 11/13/98 | | 0.01 | | | 0.02 | | | 2.67 | | 2.42 | | 2.72 | | | 0.01 | | 0.66 | | 0.66 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B3 | | 4/4/01 | | -3.99 | | | -3.98 | | | 2.21 | | — | | 1.70 | | | 0.01 | | 1.26 | | 1.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C4 | | 3/23/01 | | -0.99 | | | -0.98 | | | 2.21 | | — | | 1.59 | | | 0.01 | | 1.26 | | 1.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class D | | 4/1/99 | | 0.01 | | | 0.03 | | | 2.79 | | 2.56 | | 2.79 | | | 0.01 | | 0.51 | | 0.51 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I | | 1/9/02 | | 0.05 | | | 0.19 | | | 3.13 | | — | | 2.47 | | | 0.12 | | 0.16 | | 0.16 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y | | 11/12/98 | | 0.01 | | | 0.09 | | | 3.01 | | 2.79 | | 3.09 | | | 0.02 | | 0.26 | | 0.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lipper Money Market Funds Average5 | | — | | 0.01 | | | 0.06 | | | 2.55 | | 2.30 | | 2.62 | 6 | | N/A | | N/A | | N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2010 through March 1, 2011.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
4 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
5 | For additional information, please refer to the Glossary of Terms. |
| |
6 | Return for the period 10/31/98 to 4/30/10. |
| |
| |
7 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
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 Federal Reserve Board (the “Fed”) maintained its target short-term interest rate at a historically low range between 0% and 0.25% during the six months through April 30, 2010. The low target rate caused yields on money market securities to remain below historical norms.
Credit quality diminished across the municipal sector as declining tax receipts led to widening budget deficits for state and city governments. The Fund’s management positioned the portfolio defensively in response to the challenging credit environment during the period, diversifying away from securities of weaker issuers to help further the primary goal of capital preservation. The Fund’s management also maximized liquidity by maintaining a weighted average maturity shorter than the majority of the Fund’s peers.*
The supply of money market eligible tax-free securities was low throughout the period, due to the success of the federal government’s Build America bond program, which partially subsidizes interest paid by state and local governments. In addition, municipalities have issued longer-term debt to take advantage of historically low interest rates and to help reduce dependence on less stable short-term funding.*
| |
* | Portfolio composition is subject to change. |
| | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)1 | | Expense
Ratio (%)2 | |
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A3 | | 8/27/04 | | 0.00 | | 0.00 | | — | | 0.47 | | | — | | 0.76 | | 0.76 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class D | | 8/24/04 | | 0.01 | | 0.03 | | 1.83 | | 1.77 | | | 0.01 | | 0.61 | | 0.61 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I4 | | 6/25/04 | | 0.01 | | 0.01 | | 0.03 | | 0.27 | | | — | | 0.26 | | 0.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y | | 6/8/04 | | 0.04 | | 0.18 | | 2.06 | | 1.97 | | | 0.05 | | 0.36 | | 0.36 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lipper Tax-Exempt Money Market Funds Average5 | | — | | 0.01 | | 0.07 | | 1.82 | | 1.69 | 6 | | N/A | | N/A | | N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
3 | 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 262 days, 24 days, 78 days and 5 days during the years ended October 31, 2010, 2007, 2006 and 2004, respectively. |
| |
4 | 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. |
| |
5 | For additional information, please refer to the Glossary of Terms. |
| |
6 | Return for the period 5/31/04 to 4/30/10. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 8 |
|
Portfolio Reviews |
|
HSBC Investor U.S. Government Money Market Fund |
(Class A Shares, B Shares, C 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 six-month period between November 1, 2009 and April 30, 2010 was marked by historically low interest rates, which had a significant impact on money markets. The federal funds rate, a key short-term interest rate, stayed within a range between 0% and 0.25% throughout the period.
Low interest rates resulted in outflows throughout the money market industry as investors sought investments with more attractive yields. Meanwhile, recent regulatory changes by the Securities and Exchange Commission required money market funds to meet higher standards for liquidity, which led to shorter weighted average maturities and lower yields across the industry.
Supply in money markets decreased early in the period as corporations and other issuers sought to reduce debt on their year-end balance sheets. We reduced the Fund’s exposure to repurchase agreements during the period, which faced a similar supply issue, and increased exposure to agency issues. The supply issues also led us to extend the Fund’s average maturity early in the period.*
Supply issues abated in early 2010. We responded by decreasing the Fund’s agency exposure, while increasing exposure to repurchase agreements to approximately 60% of the portfolio. We also shortened the Fund’s average maturity somewhat during the period, as a more normal supply-and-demand environment returned to money markets.*
| |
* | Portfolio composition is subject to change. |
| | | | | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)1 | | Expense
Ratio (%)2 | |
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year | | 5
Year | | 10
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A | | 5/3/90 | | 0.01 | | | 0.03 | | | 2.48 | | 2.24 | | 3.46 | | | 0.03 | | 0.66 | | 0.66 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B3 | | 9/11/98 | | -3.99 | | | -3.97 | | | 2.40 | | 2.01 | | 2.30 | | | 0.03 | | 1.26 | | 1.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C4 | | 11/20/06 | | -0.99 | | | -0.97 | | | — | | — | | 1.58 | | | 0.03 | | 1.26 | | 1.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class D | | 4/1/99 | | 0.01 | | | 0.03 | | | 2.60 | | 2.38 | | 2.60 | | | 0.03 | | 0.51 | | 0.51 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I5 | | 12/24/03 | | 0.03 | | | 0.12 | | | — | | — | | 2.54 | | | 0.09 | | 0.16 | | 0.16 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class Y | | 7/1/96 | | 0.01 | | | 0.05 | | | 2.81 | | 2.61 | | 3.28 | | | 0.03 | | 0.26 | | 0.26 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lipper U.S. Government Money Market Funds Average6 | | — | | 0.01 | | | 0.03 | | | 2.46 | | 2.26 | | 3.48 | 7 | | N/A | | N/A | | N/A | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2010 through March 1, 2011.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
4 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
5 | 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. |
| |
6 | For additional information, please refer to the Glossary of Terms. |
| |
7 | Return for the period 4/30/90 to 4/30/10. |
| |
9 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor U.S. Treasury Money Market Fund |
(Class A Shares, B Shares, C 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.
Interest rates remained at historic lows during the six-month period through April 30, 2010. The federal funds rate, a key short-term interest rate, remained within a range between 0% and 0.25% during the period. That environment had a significant impact on the money market industry.
Investors seeking more attractive yields pulled funds from money market funds. Yields were further suppressed by recent regulatory changes from the Securities and Exchange Commission, which required money market funds to meet new standards for liquidity. Those rule changes led to shorter weighted average maturities and lower yields across the industry.
The supply of money market securities decreased early in the period as corporations and other issuers sought to reduce debt before year-end 2009. We responded to lower supply by positioning the Fund during the period, with a heavier exposure to longer-term Treasury securities.*
Midway through the period, the U.S. Treasury announced a supplemental finance plan that significantly increased the supply of Treasury bills, pushing up their yields. At that point we began to unwind the Fund’s longer-term positions, shortening its average maturity and taking advantage of the higher yields now offered by short-term Treasury bills.*
| |
* | Portfolio composition is subject to change. |
| | | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Yield (%)1 | | Expense
Ratio (%)2 | |
|
|
|
|
|
|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year | | 5
Year | | Since
Inception | | 7-Day
Average | | Gross | | Net | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A | | 5/24/01 | | 0.00 | | | 0.02 | | 2.09 | | 1.57 | | | 0.01 | | 0.66 | | 0.66 | |
|
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Class B3 | | 8/13/04 | | -4.00 | | | -3.98 | | 1.68 | | 1.56 | | | 0.01 | | 1.26 | | 1.26 | |
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Class C4 | | 12/24/03 | | -1.00 | | | -0.98 | | 0.02 | | 0.03 | | | 0.01 | | 1.26 | | 1.26 | |
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Class D | | 5/14/01 | | 0.00 | | | 0.02 | | 2.20 | | 1.70 | | | 0.01 | | 0.51 | | 0.51 | |
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Class I5 | | 12/30/03 | | 0.01 | | | 0.04 | | 2.50 | | 2.07 | | | 0.02 | | 0.16 | | 0.16 | |
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Class Y | | 5/11/01 | | 0.00 | | | 0.02 | | 2.38 | | 1.92 | | | 0.01 | | 0.26 | | 0.26 | |
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Lipper U.S. Treasury Money Market Funds Average6 | | — | | 0.01 | | | 0.01 | | 2.16 | | 1.71 | 7 | | 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, 2010 through March 1, 2011.
| |
* | Aggregate total return. |
| |
1 | The 7-day yield quotation typically more closely reflects the current earnings of the Fund than the total return quotation. |
| |
2 | Reflects the expense ratio as reported in the prospectus dated March 1, 2010. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
4 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
5 | 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 years ended October 31, 2005 and 2004, respectively. |
| |
6 | For additional information, please refer to the Glossary of Terms. |
| |
7 | Return for the period 4/30/01 to 4/30/10. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 10 |
|
Portfolio Reviews |
|
Portfolio Composition* |
April 30, 2010 |
(Unaudited) |
| | | |
HSBC Investor California Tax-Free Money Market Fund |
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Variable Rate Demand Notes | | 66.1 | % |
|
|
|
|
Commercial Paper and Notes | | 26.0 | % |
|
|
|
|
Municipal Bonds | | 6.2 | % |
|
|
|
|
Cash and Equivalents | | 1.7 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor N.Y. Tax-Free Money Market Fund |
|
|
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Variable Rate Demand Notes | | 89.0 | % |
|
|
|
|
Tax-Free Notes and Commercial Paper | | 4.5 | % |
|
|
|
|
Municipal Bonds | | 4.2 | % |
|
|
|
|
Cash and Equivalents | | 2.3 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Prime Money Market Fund | | | |
|
|
|
|
| | | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Certificates of Deposit | | 32.2 | % |
|
|
|
|
Commercial Paper and Notes | | 31.0 | % |
|
|
|
|
Time Deposits | | 11.1 | % |
|
|
|
|
U.S. Government and Government Agency Obligations | | 8.0 | % |
|
|
|
|
Corporate Obligations | | 6.6 | % |
|
|
|
|
Repurchase Agreements | | 5.3 | % |
|
|
|
|
Variable Rate Demand Notes | | 3.9 | % |
|
|
|
|
Municipal Bonds | | 1.9 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor Tax-Free Money Market Fund |
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Municipal Bonds | | 60.0 | % |
|
|
|
|
Commercial Paper and Notes | | 21.0 | % |
|
|
|
|
Variable Rate Demand Notes | | 15.4 | % |
|
|
|
|
Cash and Equivalents | | 3.6 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor U.S. Government Money Market Fund | | | |
|
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Repurchase Agreements | | 62.6 | % |
|
|
|
|
U.S. Government and Government Agency Obligations | | 37.0 | % |
|
|
|
|
U.S. Treasury Bills | | 0.4 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| | | |
HSBC Investor U.S. Treasury Money Market Fund | | | |
|
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
U.S. Treasury Bills | | 97.9 | % |
|
|
|
|
U.S. Treasury Notes | | 2.1 | % |
|
|
|
|
Total | | 100.0 | % |
|
|
|
|
| |
* | Portfolio composition is subject to change. |
|
11 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Variable Rate Demand Notes—55.9% | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
California – 55.9% | | | | | | | |
ABAG Finance Authority for
Nonprofit Corps. Multi-family
Revenue, Series A, 0.32%, 12/15/32,
(Credit Support FNMA) (a) | | | 1,000,000 | | | 1,000,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 0.37%,
7/1/35, (LOC Wells Fargo Bank
N.A., U.S. Bank N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
ABAG Finance Authority for
Nonprofit Corps. Revenue, 0.31%,
9/1/35, (LOC Bank of New York) (a) | | | 775,000 | | | 775,000 | |
Beaumont California Utility
Authority Revenue, Series A,
0.31%, 9/1/41, (LOC Union Bank
of California N.A., California State
Teacher’s Retirement) (a) | | | 1,000,000 | | | 1,000,000 | |
California Health Facilities Financing
Authority Revenue, Series A, 0.25%,
8/1/21, (LOC U.S. Bank N.A.) (a) | | | 500,000 | | | 500,000 | |
California Health Facilities Financing
Authority Revenue, Series F, 0.26%,
10/1/31, (LOC Northern Trust Co.) (a) | | | 975,000 | | | 975,000 | |
California Health Facilities Financing
Authority Revenue, Series A-2,
0.28%, 11/15/40, (LOC Bank of
America N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
California Municipal Finance Authority
Revenue, 0.32%, 7/1/38, (LOC U.S.
Bank N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
California State Department of Water
Resources Power Supply Revenue,
0.31%, 5/1/11, (LOC Lloyds TSB
Bank plc) (a) | | | 500,000 | | | 500,000 | |
California Statewide Communities
Development Authority Revenue,
0.28%, 5/1/25, (LOC Bank of
New York) (a) | | | 1,065,000 | | | 1,065,000 | |
California Statewide Communities
Development Authority Revenue,
Series B, 0.23%, 8/15/36,
(LOC UBS AG) (a) | | | 1,500,000 | | | 1,500,000 | |
Contra Costa County California
Housing Authority Multi-family
Revenue, 0.34%, 11/15/17, (Credit
Support FHLMC) (a) | | | 1,700,000 | | | 1,700,000 | |
Hesperia California Unified School
District Certificates of Participation,
0.45%, 2/1/18, (Credit Support AGM,
SPA Dexia Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Irvine Public Facilities & Infrastructure
Authority Lease Revenue, 0.60%,
11/1/10, (LOC State Street B&T
Co.) (a) | | | 460,000 | | | 460,000 | |
Los Angeles California Wastewater
System Revenue, Series A, 0.25%,
6/1/28, (LOC Bank of Nova
Scotia) (a) | | | 500,000 | | | 500,000 | |
Los Angeles County California
Metropolitan Transportation Authority
Sales Tax Revenue, Series C-3, 0.25%,
7/1/25, (LOC Sumitomo Mitsui
Banking Corp.) (a) | | | 1,500,000 | | | 1,500,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
California, continued | | | | | | | |
Morgan Hill Redevelopment Agency
Tax Allocation, 0.28%, 9/1/33,
(LOC Scotiabank) (a) | | | 1,000,000 | | | 1,000,000 | |
Oakland-Alameda County California
Coliseum Authority Lease Revenue,
Series C-1, 0.32%, 2/1/25, (LOC Bank
of New York, California State Teacher’s
Retirement) (a) | | | 1,000,000 | | | 1,000,000 | |
Orange County California Apartment
Development Revenue, 0.28%, 12/1/22,
(Credit Support FHLMC) (a) | | | 500,000 | | | 500,000 | |
Otay California Water District
Certificates of Participation, 0.28%,
9/1/26, (LOC Landesbank Hessen-
Thuringen) (a) | | | 1,000,000 | | | 1,000,000 | |
Perris California Union High School
District Certificates of Participation,
0.45%, 9/1/33, (Credit Support AGM,
SPA Dexia Credit Local) (a) | | | 1,000,000 | | | 1,000,000 | |
Pleasanton California Certificates
of Participation, 0.28%, 11/1/40,
(LOC Citibank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Riverside County California Certificates
of Participation, 0.31%, 12/1/15,
(LOC State Street B&T Co.) (a) | | | 1,000,000 | | | 1,000,000 | |
San Jose California Redevelopment
Agency Revenue, Series B, 0.37%,
8/1/32, (LOC JP Morgan Chase
Bank) (a) | | | 800,000 | | | 800,000 | |
San Rafael California Redevelopment
Agency Multi-family Revenue,
Series A, 0.31%, 9/1/31, (LOC
Citibank N.A.) (a) | | | 500,000 | | | 500,000 | |
South Bay California Regional Public
Communications Authority Revenue,
Series C, 0.30%, 1/1/31, (LOC Bank
of America N.A.) (a) | | | 1,170,000 | | | 1,170,000 | |
Stockton California Public Financing
Authority Lease Revenue, Series A,
0.45%, 9/1/48, (LOC Assured Guaranty,
SPA Dexia Credit Local) (a) | | | 1,000,000 | | | 1,000,000 | |
Three Valleys California Municipal
Water District Certificates of
Participation, 0.29%, 11/1/14,
(LOC Wells Fargo Bank N.A.) (a) | | | 500,000 | | | 500,000 | |
| | | | |
|
| |
| | | | | | 26,945,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $26,945,000) | | | | | | 26,945,000 | |
| | | | |
|
| |
| | | | | | | |
Municipal Bonds—5.2% | | | | | | | |
|
|
| | | | | | | |
California – 1.4% | | | | | | | |
California State Economic Recovery,
Series A, 5.00%, 7/1/10, (Credit
Support NATL-RE) | | | 205,000 | | | 206,621 | |
California State GO, 5.25%, 9/1/30,
(Credit Support FGIC), prerefunded
9/1/10 @ 100 | | | 450,000 | | | 457,555 | |
| | | | |
|
| |
| | | | | | 664,176 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 12 |
|
HSBC INVESTOR CALIFORNIA TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Municipal Bonds, continued | | | | | | | |
|
|
| | | | | | | |
| | Shares or
Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Puerto Rico – 3.8% | | | | | | | |
Puerto Rico Commonwealth
Infrastructure Financing Authority,
Series A, 5.50%, 10/1/19,
prerefunded 10/1/10 @ 101 | | | 300,000 | | | 309,520 | |
Puerto Rico Commonwealth
Infrastructure Financing Authority
Special Obligation, Series A,
5.50%, 10/1/32 | | | 1,500,000 | | | 1,547,990 | |
| | | | |
|
| |
| | | | | | 1,857,510 | |
| | | | |
|
| |
TOTAL MUNICIPAL BONDS
(COST $2,521,686) | | | | | | 2,521,686 | |
| | | | |
|
| |
| | | | | | | |
Commercial Paper And Notes—22.0% | | | | | | | |
|
|
| | | | | | | |
California – 22.0% | | | | | | | |
California Pollution Control Finance
Authority, Series 09-A, 0.22%,
8/3/10, (LOC BP plc) | | | 1,750,000 | | | 1,750,000 | |
Orange County Local Transit
Authority, Series A, 0.30%, 5/3/10,
(LOC Dexia New York) | | | 1,000,000 | | | 1,000,000 | |
Orange County Local Transit
Authority, Series A, 0.30%, 5/3/10,
(LOC Dexia Credit Local, Bank of
America, BNP Paribas, JPMorgan
Chase Bank) | | | 1,000,000 | | | 1,000,000 | |
Port of Oakland California, Series D,
0.26%, 5/13/10, (LOC BNP
Paribas, Lloyds TSB Bank) | | | 1,000,000 | | | 1,000,000 | |
Port of Oakland California, Series D,
0.28%, 6/10/10, (LOC BNP
Paribas) | | | 1,000,000 | | | 1,000,000 | |
San Diego County Regional Airport,
0.20%, 5/6/10, (LOC Lloyds Bank) | | | 750,000 | | | 750,000 | |
San Diego County Regional Airport,
0.40%, 6/1/10, (LOC Lloyds Bank) | | | 1,500,000 | | | 1,500,000 | |
San Francisco Airport Commission,
Series B, 0.25%, 5/5/10, (LOC State
Street Bank) | | | 1,600,000 | | | 1,600,000 | |
San Joaquin County Transportation
Authority, 0.27%, 5/4/10, (LOC
Citibank N.A.) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | 10,600,000 | |
| | | | |
|
| |
TOTAL COMMERCIAL PAPER AND
NOTES (COST $10,600,000) | | | | | | 10,600,000 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—1.5% | | | | | | | |
|
|
BlackRock Liquidity Funds Money
Fund Portfolio, 0.22% (b) | | | 700,000 | | | 700,000 | |
Northern Institutional Tax Exempt
Portfolio, Shares Class, 0.01% (b) | | | 10,174 | | | 10,174 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $710,174) | | | | | | 710,174 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $40,776,860) — 84.6% | | | | | | 40,776,860 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $48,218,052. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2010. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| |
AMT | — Assured Guaranty Municipal Corporation |
FGIC | — Financial Guaranty Insurance Company |
FHLMC | — Federal Home Loan Mortgage Corporation |
FNMA | — Federal National Mortgage Association |
GO | — General Obligation |
LOC | — Letter of Credit |
plc | — Public Limited Company |
SPA | — Standby Purchase Agreement |
| | |
13 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Variable Rate Demand Notes—82.5% | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York – 82.5% | | | | | | | |
Dutchess County IDA Civic Facility
Revenue, Series A, 0.27%, 7/1/38,
(LOC TD Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
Franklin County IDA Civic Facility
Revenue, 0.37%, 5/1/19, (LOC Fleet
National Bank) (a) | | | 195,000 | | | 195,000 | |
Long Island Power Authority Electrical
Systems Revenue, 0.36%, 12/1/29,
(Credit Support AGM, SPA Dexia
Credit Local) (a) | | | 8,930,000 | | | 8,930,000 | |
Long Island Power Authority Electrical
Systems Revenue, Series D, 0.36%,
12/1/29, (Credit Support AGM, SPA
Dexia Credit Local) (a) | | | 5,000,000 | | | 5,000,000 | |
Long Island Power Authority Electrical
Systems Revenue, Series J, 0.35%,
12/1/29, (Credit Support AGM, SPA
Dexia Credit Local) (a) | | | 6,000,000 | | | 6,000,000 | |
Metropolitan Transportation Authority
Revenue, Sub-series B-1, 0.31%,
11/1/34, (LOC Scotiabank) (a) | | | 2,900,000 | | | 2,900,000 | |
Metropolitan Transportation Authority
Revenue, Sub-series B-2, 0.31%,
11/1/34, (LOC BNP Paribas) (a) | | | 2,900,000 | | | 2,900,000 | |
Metropolitan Transportation Authority
Revenue, Sub-series B-3, 0.31%,
11/1/34, (LOC Lloyds TSB Bank
plc) (a) | | | 2,900,000 | | | 2,900,000 | |
Monroe County IDA Civic Facility
Revenue, 0.29%, 1/15/32, (LOC
JP Morgan Chase Bank) (a) | | | 4,945,000 | | | 4,945,000 | |
Monroe County IDA Civic Facility
Revenue, 0.25%, 4/1/35, (LOC
JP Morgan Chase Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Monroe County IDA Civic Facility
Revenue, 0.29%, 6/1/36, (LOC
JP Morgan Chase Bank) (a) | | | 3,800,000 | | | 3,800,000 | |
Monroe County IDA Civic Facility
Revenue, 0.30%, 2/1/38, (LOC
JP Morgan Chase Bank) (a) | | | 1,800,000 | | | 1,800,000 | |
Monroe County IDA Civic Facility
Revenue, 0.31%, 4/1/38, (LOC
JP Morgan Chase Bank) (a) | | | 2,200,000 | | | 2,200,000 | |
Nassau County IDA Civic Facility
Revenue, 0.45%, 6/1/19, (LOC
Fleet Bank N.A.) (a)(b) | | | 1,530,000 | | | 1,530,000 | |
Nassau Health Care Corp. Revenue,
0.29%, 8/1/29, (Credit Support
County Guaranteed, LOC TD
Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
Nassau Health Care Corp. Revenue,
Sub-series B-2, 0.27%, 8/1/29,
(Credit Support County Guaranteed,
LOC TD Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
Nassau Health Care Corp. Revenue,
Sub-series D-2, 0.30%, 8/1/29,
(Credit Support County Guaranteed,
LOC JP Morgan Chase Bank) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City Capital Resources
Corp. Revenue, Series B1, 0.30%,
7/1/37, (LOC Bank of America
N.A.) (a) | | | 2,000,000 | | | 2,000,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York City GO, 0.29%, 2/15/16,
(LOC Bayerische Landesbank) (a) | | | 3,000,000 | | | 3,000,000 | |
New York City GO, Series H, Sub-
series H-3, 0.29%, 8/1/19, (Credit
Support AGM, SPA State Street
B&T Co.) (a) | | | 4,000,000 | | | 4,000,000 | |
New York City GO, Sub-series B-3,
0.27%, 9/1/27, (LOC TD Bank
N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City GO, Sub-series L-4,
0.28%, 4/1/38, (LOC U.S. Bank
N.A.) (a) | | | 15,000,000 | | | 15,000,000 | |
New York City Health & Hospital
Corp. Revenue, Series B, 0.28%,
2/15/31, (Credit Support GO of
Corp., LOC TD Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City Housing Development
Corp. Multi-family Housing
Revenue, Series A, 0.28%, 11/15/19,
(Credit Support FNMA, Liquidity
Facility FNMA) (a) | | | 1,500,000 | | | 1,500,000 | |
New York City Housing Development
Corp. Multi-family Housing
Revenue, Series A, 0.27%, 4/1/31,
(Credit Support FHLMC) (a) | | | 1,135,000 | | | 1,135,000 | |
New York City Housing Development
Corp. Multi-family Housing
Revenue, Series A, 0.27%, 4/15/35,
(Credit Support FNMA, Liquidity
Facility FNMA) (a) | | | 1,600,000 | | | 1,600,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 0.28%, 6/15/32,
(Credit Support FNMA) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 0.31%, 12/1/36, (LOC
Landesbank Hessen) (a) | | | 10,035,000 | | | 10,035,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, 0.27%, 11/1/46, (Credit
Support FHLMC, Liquidity Facility
FHLMC) (a) | | | 4,000,000 | | | 4,000,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, Series A, 0.32%, 1/1/36,
AMT, (LOC Citibank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, Series A, 0.32%, 1/1/38,
AMT, (LOC Citibank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, Series A, 0.32%, 2/1/38,
AMT, (LOC Citibank N.A.) (a) | | | 500,000 | | | 500,000 | |
New York City Housing Development
Corp. Multi-family Mortgage
Revenue, Series A, 0.34%,
10/1/40, AMT, (LOC Bank of
America N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 14 |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York City Housing Development
Corp. Residential Revenue, Series A,
0.28%, 6/1/43, (LOC RBS Citizens
N.A., FHLB) (a) | | | 7,000,000 | | | 7,000,000 | |
New York City IDA Civic Facility
Revenue, 0.26%, 11/1/32, (LOC
Wachovia Bank N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
New York City IDA Civic Facility
Revenue, 0.33%, 12/1/36, (LOC
JP Morgan Chase Bank) (a) | | | 4,360,000 | | | 4,360,000 | |
New York City IDA Civic Facility
Revenue, 0.31%, 11/1/39, (LOC
Bank of America, Citibank N.A.) (a) | | | 8,000,000 | | | 8,000,000 | |
New York City IDA Civic Facility
Revenue, Series B, 0.30%, 6/1/36,
(Credit Support Radian, LOC TD
Bank N.A.) (a) | | | 4,700,000 | | | 4,700,000 | |
New York City IDA Special Facility
Revenue, Series B, 0.30%, 5/1/33,
(LOC Bank of America N.A.) (a) | | | 5,060,000 | | | 5,060,000 | |
New York City Municipal Water Finance
Authority Water & Sewer System
Revenue, Series CC, 0.31%, 6/15/41,
(SPA Barclays Bank plc) (a) | | | 10,000,000 | | | 10,000,000 | |
New York City Municipal Water Finance
Authority Water & Sewer System
Revenue, Sub-series B-4, 0.27%,
6/15/23, (SPA, BNP Paribas) (a) | | | 2,000,000 | | | 2,000,000 | |
New York City Transitional Finance
Authority Revenue, Series 3, Sub-
series 3G, 0.28%, 11/1/22, (SPA Bank
of New York) (a) | | | 2,085,000 | | | 2,085,000 | |
New York City Transitional Finance
Authority Revenue, Series A2,
0.25%, 11/15/27, (SPA Bank of
Nova Scotia) (a) | | | 6,100,000 | | | 6,100,000 | |
New York City Transitional Finance
Authority Revenue, Sub-series 2-D,
0.28%, 11/1/22, (Liquidity Facility
Lloyds TSB Bank plc) (a) | | | 10,000,000 | | | 10,000,000 | |
New York City Transitional Finance
Authority Revenue, Sub-series 2A,
0.24%, 11/1/22, (Liquidity Facility
Dexia Credit Local) (a) | | | 100,000 | | | 100,000 | |
New York City Trust for Cultural
Resources Revenue, 0.25%, 4/1/26,
(LOC Wachovia Bank N.A.) (a) | | | 9,000,000 | | | 9,000,000 | |
New York City Trust for Cultural
Resources Revenue, 0.24%,
4/1/30, (LOC The Chase Manhattan
Bank) (a) | | | 6,570,000 | | | 6,570,000 | |
New York City Trust for Cultural
Resources Revenue, Series B-1,
0.24%, 11/1/38, (LOC U.S. Bank
N.A.) (a) | | | 3,750,000 | | | 3,750,000 | |
New York Local Government Assistance
Corp., 0.28%, 4/1/25, (LOC Societe
Generale) (a) | | | 4,800,000 | | | 4,800,000 | |
New York State Dormitory Authority
Revenue, 0.29%, 7/1/28, (LOC TD
Bank N.A.) (a) | | | 1,400,000 | | | 1,400,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York State Dormitory Authority
Revenue, Series D, 0.29%, 7/1/34,
(Credit Support XLCA, LOC TD
Bank N.A.) (a) | | | 4,775,000 | | | 4,775,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
0.29%, 7/1/36, (Credit Support XLCA,
LOC TD Banknorth N.A.) (a) | | | 1,925,000 | | | 1,925,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
0.30%, 12/1/36, (LOC TD Bank
N.A.) (a) | | | 4,500,000 | | | 4,500,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
0.29%, 1/1/39, (LOC TD Banknorth
N.A.) (a) | | | 3,900,000 | | | 3,900,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series A, 0.27%, 11/15/36, (Credit
Support FNMA, Liquidity Facility
FNMA) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series A-2, 0.27%, 9/1/36, (LOC
Citizens Bank, FHLB) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series B, 0.26%, 7/1/39, (LOC TD
Bank N.A.) (a) | | | 1,500,000 | | | 1,500,000 | |
New York State Dormitory Authority
Revenue, State Supported Debt,
Series C, 0.31%, 7/1/31, (LOC Bank
of America N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Dormitory Authority,
Cornell University Revenue,
0.24%, 7/1/25, (SPA JP Morgan
Chase Bank) (a) | | | 8,500,000 | | | 8,500,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, 0.28%, 11/1/39, AMT,
(LOC Mizuho Corporate Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, 0.30%, 11/1/39, AMT,
(LOC Mizuho Corporate Bank) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, Series C2, 0.33%, 11/1/39,
AMT, (LOC Mizuho Corporate
Bank) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, Sub-series A-3, 0.28%,
5/1/39, (LOC Wachovia Bank
N.A.) (a) | | | 10,000,000 | | | 10,000,000 | |
New York State Energy Research &
Development Authority Pollution
Control Revenue, Series C, 0.25%,
6/1/29, (LOC Wells Fargo N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Housing Finance Agency
Revenue, 0.34%, 5/15/33, AMT, (Credit
Support FNMA) (a) | | | 2,000,000 | | | 2,000,000 | |
| | |
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, 2010 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York State Housing Finance Agency
Revenue, 0.25%, 5/15/34, (Credit
Support FNMA) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Housing Finance Agency
Revenue, 0.25%, 11/15/37, (Credit
Support FNMA) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Housing Finance Agency
Revenue, 0.31%, 5/15/15, (LOC
Landesbank Hessen-Thuringen) (a) | | | 800,000 | | | 800,000 | |
New York State Housing Finance Agency
Revenue, 0.32%, 5/15/28, AMT, (Credit
Support FNMA, LOC FNMA) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.32%, 5/15/32,
AMT, (Credit Support FNMA) (a) | | | 1,600,000 | | | 1,600,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.29%, 11/1/32,
AMT, (Credit Support FHLMC,
Liquidity Facility FHLMC) (a) | | | 2,050,000 | | | 2,050,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.25%, 5/15/34,
(Credit Support FNMA) (a) | | | 1,400,000 | | | 1,400,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.28%, 5/1/35,
(Credit Support FHLMC) (a) | | | 9,365,000 | | | 9,365,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.37%, 11/1/39,
AMT, (LOC Citibank N.A.) (a) | | | 4,900,000 | | | 4,900,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.27%, 11/1/41,
(LOC Bank of New York) (a) | | | 15,000,000 | | | 15,000,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.28%, 5/1/42,
(LOC Wachovia Bank N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.32%, 5/1/42,
(LOC Wachovia Bank N.A.) (a) | | | 4,200,000 | | | 4,200,000 | |
New York State Housing Finance Agency
Revenue, Series A, 0.25%, 5/1/45,
(Credit Support FHLMC, Liquidity
Facility FHLMC) (a) | | | 5,000,000 | | | 5,000,000 | |
New York State Local Government
Assistance Corp. Revenue, Series C,
0.27%, 4/1/25, (LOC Landesbank
Hessen-Thuringen) (a) | | | 4,289,000 | | | 4,289,000 | |
New York State Power Authority, Finance
& Administration GO, 0.26%, 3/1/20,
(Liquidity Facility Bank of Nova
Scotia) (a) | | | 23,500,000 | | | 23,500,000 | |
New York State Urban Development
Corp. Revenue, Series A5, 0.25%,
1/1/30, (LOC TD Banknorth
N.A.) (a) | | | 3,300,000 | | | 3,300,000 | |
Onondaga County IDA Revenue,
Series B, 0.26%, 7/1/37, (LOC
JP Morgan Chase Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Port Authority of New York & New Jersey
Special Obligation Revenue, 0.25%,
4/1/24, AMT, (SPA Landesbank
Hessen-Thuringen) (a) | | | 5,000,000 | | | 5,000,000 | |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
Ramapo Housing Authority Revenue,
Series A, 0.31%, 12/15/38, AMT,
(Credit Support FNMA, Liquidity
Facility FNMA) (a) | | | 500,000 | | | 500,000 | |
Rockland County IDA Civic Facility
Revenue, 0.25%, 12/1/32, (LOC
Wachovia Bank N.A.) (a) | | | 7,000,000 | | | 7,000,000 | |
St. Lawrence County IDA Civic Facility
Revenue, 0.45%, 5/1/25, (LOC Fleet
National Bank) (a) | | | 565,000 | | | 565,000 | |
Suffolk County IDA Civic Facility
Revenue, 0.29%, 11/1/14, (LOC Bank
of America N.A.) (a) | | | 6,965,000 | | | 6,965,000 | |
Suffolk County IDA Civic Facility
Revenue, 0.45%, 8/1/18, AMT, (LOC
Chase Manhattan Bank) (a) | | | 2,430,000 | | | 2,430,000 | |
Suffolk County IDA Civic Facility
Revenue, 0.25%, 6/1/37, (LOC
JP Morgan Chase Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Syracuse New York IDA Civic Facility
Revenue, Series A, 0.26%, 12/1/35,
(LOC JP Morgan Chase Bank) (a) | | | 1,000,000 | | | 1,000,000 | |
Triborough Bridge & Tunnel Authority
Revenue, Series B, 0.26%, 1/1/32,
(LOC State Street B&T Co.) (a) | | | 14,700,000 | | | 14,700,000 | |
Triborough Bridge & Tunnel Authority
Revenue, Sub-series CD, 0.30%,
1/1/19, (Credit Support AGM,
SPA Lloyds TSB Bank plc) (a) | | | 15,000,000 | | | 15,000,000 | |
Troy IDA Civic Facility Revenue,
Series B, 0.29%, 9/1/37, (LOC Bank
of America N.A.) (a) | | | 5,000,000 | | | 5,000,000 | |
Troy IDA Civic Facility Revenue,
Series D, 0.28%, 9/1/42, (LOC
Northern Trust Co.) (a) | | | 13,225,000 | | | 13,225,000 | |
Ulster County IDA Civic Facility
Revenue, Series A, 0.58%, 7/1/21,
AMT, (LOC TD Banknorth N.A.,
ABN Amro Bank N.V.) (a) | | | 1,000,000 | | | 1,000,000 | |
Westchester County IDA Civic Facility
Revenue, 0.28%, 11/1/24, (LOC
Commerce Bank N.A.) (a) | | | 2,210,000 | | | 2,210,000 | |
| | | | |
|
| |
| | | | | | 463,394,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND NOTES
(COST $463,394,000) | | | | | | 463,394,000 | |
| | | | |
|
| |
| | | | | | | |
Tax-Free Notes And Commercial Paper—4.2% | | | | | | | |
|
|
| | | | | | | |
New York – 4.2% | | | | | | | |
Long Island Power Authority,
0.31%, 6/10/10, (LOC JP Morgan
Chase Bank) | | | 10,200,000 | | | 10,200,000 | |
New York City Municipal Water
Authority, Series 5-A, 0.25%, 5/3/10,
(LOC Landesbank Hessen-Thuringen,
Bayerische Landesbank, Westdeustche
Landesbank) | | | 10,000,000 | | | 10,000,000 | |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 16 |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Tax-Free Notes And Commercial Paper, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
New York, continued | | | | | | | |
New York State Power Authority, 0.20%,
5/13/10, (Credit Support JP Morgan
Chase Bank, Bank of Nova Scotia,
State Street B&T Co., BNP Paribas,
Bank of New York) | | | 3,300,000 | | | 3,300,000 | |
| | | | |
|
| |
| | | | | | 23,500,000 | |
| | | | |
|
| |
TOTAL TAX-FREE NOTES AND
COMMERCIAL PAPER
(COST $23,500,000) | | | | | | 23,500,000 | |
| | | | |
|
| |
| | | | | | | |
Municipal Bonds—3.8% | | | | | | | |
|
|
| | | | | | | |
New York – 2.4% | | | | | | | |
Monroe Tob Asset Securitization Corp.
Tob Settlement Revenue, 6.38%,
6/1/19 | | | 1,000,000 | | | 1,015,221 | |
Monroe Tob Asset Securitization Corp.
Tob Settlement Revenue, 6.63%,
6/1/42 | | | 1,000,000 | | | 1,015,413 | |
New York City Transitional Finance
Authority Revenue, Series C, 5.50%,
11/1/24 | | | 1,000,000 | | | 1,010,000 | |
New York State Urban Development
Corp. Revenue, Series D, 5.25%,
1/1/30 | | | 10,000,000 | | | 10,333,606 | |
| | | | |
|
| |
| | | | | | 13,374,240 | |
| | | | |
|
| |
| | | | | | | |
Puerto Rico – 1.4% | | | | | | | |
Puerto Rico Commonwealth
Infrastructure Financing Authority
Special Obligation, Series A, 5.50%,
10/1/32 | | | 8,000,000 | | | 8,255,307 | |
| | | | |
|
| |
TOTAL MUNICIPAL BONDS
(COST $21,629,547) | | | | | | 21,629,547 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—2.1% | | | | | | | |
|
|
BlackRock Liquidity New York Money
Fund, Portfolio Institutional Shares,
0.21% (c) | | | 11,699,777 | | | 11,699,777 | |
JPMorgan New York Municipal Money
Market Fund, 0.10% (c) | | | 100,000 | | | 100,000 | |
Northern Institutional Tax Exempt
Portfolio, Shares Class, 0.01% (c) | | | 5,980 | | | 5,980 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $11,805,757) | | | | | | 11,805,757 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $520,329,304) — 92.6% | | | | | | 520,329,304 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $561,894,499. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2010. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| |
AGM | — Assured Guaranty Municipal Corporation |
AMT | — Interest on security is subject to federal alternative minimum tax |
FHLB | — Federal Home Loan Bank |
FHLMC | — Federal Home Loan Mortgage Corporation |
FNMA | — Federal National Mortgage Association |
GO | — General Obligation |
IDA | — Industrial Development Agency |
LOC | — Letter of Credit |
plc | — Public Limited Company |
SPA | — Standby Purchase Agreement |
XLCA | — XL Capital Assurance |
| | |
17 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR PRIME MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Corporate Obligations—6.6% | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Banking – 5.2% | | | | | | | |
Commonwealth Bank of Australia,
0.25%, 11/4/10 (b) | | | 80,000,000 | | | 80,000,000 | |
JPMorgan Chase Bank N.A., 0.26%,
4/21/11 (b) | | | 78,000,000 | | | 78,000,000 | |
Morgan Stanley, Series F, 2.35%,
5/14/10 (b) | | | 25,000,000 | | | 25,018,895 | |
National Australia Bank, 0.29%,
1/27/11 (b) | | | 83,000,000 | | | 83,000,000 | |
Royal Bank of Canada, 0.27%,
6/8/10 (b) | | | 95,000,000 | | | 95,002,237 | |
Westpac Banking Corp., 0.30%,
5/4/11 (b) | | | 35,000,000 | | | 35,000,000 | |
Westpac Banking Corp., 0.30%,
5/13/11 (b) | | | 50,000,000 | | | 50,000,000 | |
| | | | |
|
| |
| | | | | | 446,021,132 | |
| | | | |
|
| |
Finance – 1.4% | | | | | | | |
Bank of America N.A., 0.28%,
8/10/10 (b) | | | 100,000,000 | | | 100,000,000 | |
General Electric Capital Corp., Series A,
0.79%, 2/1/11 (b) | | | 24,000,000 | | | 24,077,315 | |
| | | | |
|
| |
| | | | | | 124,077,315 | |
| | | | |
|
| |
TOTAL CORPORATE OBLIGATIONS
(COST $570,098,447) | | | | | | 570,098,447 | |
| | | | |
|
| |
| | | | | | | |
Variable Rate Demand Notes—3.9% | | | | | | | |
|
|
| | | | | | | |
Colorado – 1.0% | | | | | | | |
Colorado Housing & Finance Authority
Multi-family Revenue, 0.34%, 5/1/25,
AMT, (LOC U.S. Bank N.A.) (b) | | | 13,250,000 | | | 13,250,000 | |
Denver Colorado City & County
Airport Revenue, Series B, 0.32%,
11/15/25, AMT, (LOC Wachovia
Bank N.A.) (b) | | | 75,700,000 | | | 75,700,000 | |
| | | | |
|
| |
| | | | | | 88,950,000 | |
| | | | |
|
| |
Connecticut – 0.2% | | | | | | | |
Connecticut State Health &
Educational Facilities Authority
Revenue, Series L2, 0.28%, 7/1/36,
(LOC Bank of America N.A.) (b) | | | 17,030,000 | | | 17,030,000 | |
| | | | |
|
| |
Georgia – 0.2% | | | | | | | |
Atlanta Georgia Water & Waste Water
Revenue, 0.30%, 11/1/41, (LOC
Wachovia Bank N.A.) (b) | | | 10,000,000 | | | 10,000,000 | |
Savannah Georgia Economic
Development Authority Revenue,
0.40%, 9/1/24, (LOC Bank of
America N.A.) (b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
| | | | | | 12,000,000 | |
| | | | |
|
| |
Idaho – 0.2% | | | | | | | |
Power County Industrial Development
Corp. Exempt Facilities Revenue,
0.37%, 4/1/14, AMT, (LOC Wachovia
Bank N.A.) (b) | | | 20,000,000 | | | 20,000,000 | |
| | | | |
|
| |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Illinois – 0.4% | | | | | | | |
Illinois Development Finance Authority
Revenue, 0.28%, 12/1/28, (LOC
Northern Trust Co.) (b) | | | 3,300,000 | | | 3,300,000 | |
Illinois Development Finance Authority
Solid Waste Disposal Revenue,
0.35%, 9/1/27, AMT, (LOC Wachovia
Bank N.A.) (b) | | | 24,900,000 | | | 24,900,000 | |
Illinois Educational Facilities Authority
Revenue, 0.32%, 3/1/28, (Credit
Support GO of Institution, LOC Bank
of America N.A.) (b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
| | | | | | 30,200,000 | |
| | | | |
|
| |
Indiana – 0.4% | | | | | | | |
Indiana State Finance Authority
Revenue, Series A, 0.27%, 7/1/36,
(LOC Northern Trust Co.) (b) | | | 2,000,000 | | | 2,000,000 | |
Indianapolis Local Public Improvement
Bond Bank Revenue, Series C-3,
0.45%, 1/1/33, AMT, (Credit Support
AGM, SPA Dexia Credit Local) (b) | | | 35,000,000 | | | 35,000,000 | |
| | | | |
|
| |
| | | | | | 37,000,000 | |
| | | | |
|
| |
Maine – 0.3% | | | | | | | |
Old Town Solid Waste Disposal Revenue,
0.37%, 12/1/24, AMT, (LOC Bank of
America N.A.) (b) | | | 22,260,000 | | | 22,260,000 | |
| | | | |
|
| |
Minnesota – 0.1% | | | | | | | |
Bloomington Minnesota Housing
Revenue, 0.27%, 7/1/38, (LOC
Freddie Mac) (b) | | | 2,000,000 | | | 2,000,000 | |
Oakdale Minnesota Multi-family
Revenue, 0.31%, 6/1/45, AMT,
(LOC Freddie Mac) (b) | | | 2,000,000 | | | 2,000,000 | |
Robbinsdale Minnesota Revenue,
Series A-1, 0.27%, 5/1/33, (LOC
Wells Fargo Bank N.A.) (b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
| | | | | | 6,000,000 | |
| | | | |
|
| |
Nebraska – 0.0% | | | | | | | |
Lancaster County Nebraska Hospital
Authority No. 1 Hospital Revenue,
Series B-2, 0.27%, 6/1/31, (LOC
U.S. Bank N.A.) (b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
New York – 0.5% | | | | | | | |
New York State Dormitory Authority
Revenue, Non State Supported Debt,
Series B, 0.26%, 7/1/39, (LOC
TD Bank N.A.) (b) | | | 19,000,000 | | | 19,000,000 | |
New York State Energy Research &
Development Authority Facilities
Revenue, Sub-series A-3, 0.28%,
5/1/39, (LOC Wachovia Bank
N.A.) (b) | | | 15,500,000 | | | 15,500,000 | |
Syracuse IDA Civic Facility Revenue,
Series A, 0.32%, 1/1/23, (LOC Bank
of America N.A.) (b) | | | 9,905,000 | | | 9,905,000 | |
| | | | |
|
| |
| | | | | | 44,405,000 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 18 |
|
HSBC INVESTOR PRIME MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Ohio – 0.0% | | | | | | | |
Lorain County Ohio Hospital Revenue,
0.30%, 5/1/26, (LOC JP Morgan
Chase Bank) (b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
South Carolina – 0.2% | | | | | | | |
North Charleston South Carolina
Certificates of Participation, 0.32%,
9/1/19, (LOC Bank of America
N.A.) (b) | | | 3,000,000 | | | 3,000,000 | |
South Carolina State Housing Finance &
Development Authority Multi-family
Rental Housing Improvement Revenue,
0.37%, 7/15/39, AMT, (LOC Wachovia
Bank N.A.) (b) | | | 17,250,000 | | | 17,250,000 | |
| | | | |
|
| |
| | | | | | 20,250,000 | |
| | | | |
|
| |
Texas – 0.4% | | | | | | | |
Austin Hotel Occupancy Tax Revenue,
Sub-series B, 0.32%, 11/15/29, (LOC
Dexia Credit Local) (b) | | | 10,480,000 | | | 10,480,000 | |
Montgomery County Housing Finance
Corp. Multi-family Housing Revenue,
0.35%, 2/1/38, AMT, (LOC Citibank
N.A.) (b) | | | 14,685,000 | | | 14,685,000 | |
Texas State Department of Housing &
Community Affairs Multi-family
Housing Revenue, 0.35%, 12/1/39,
AMT, (LOC Citibank N.A.) (b) | | | 7,200,000 | | | 7,200,000 | |
| | | | |
|
| |
| | | | | | 32,365,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $334,460,000) | | | | | | 334,460,000 | |
| | | | |
|
| |
| | | | | | | |
U.S. Government and Government Agency Obligations—4.5% | | | | | | | |
|
|
| | | | | | | |
Federal Home Loan Bank – 2.6% | | | | | | | |
0.65%, 5/11/10, Series 1 | | | 110,000,000 | | | 110,004,641 | |
0.55%, 8/5/10 | | | 50,000,000 | | | 49,992,425 | |
0.50%, 12/28/10 | | | 60,000,000 | | | 60,000,000 | |
| | | | |
|
| |
| | | | | | 219,997,066 | |
| | | | |
|
| |
Federal Home Loan Mortgage Corp. – 0.2% | | | | | | | |
2.38%, 5/28/10, Series 1 | | | 14,809,000 | | | 14,828,652 | |
| | | | |
|
| |
Federal National Mortgage Association – 1.7% | | | | | | | |
3.00%, 7/12/10 | | | 50,000,000 | | | 50,240,784 | |
0.24%, 9/27/10 (c) | | | 100,000,000 | | | 99,900,667 | |
| | | | |
|
| |
| | | | | | 150,141,451 | |
| | | | |
|
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(COST $384,967,169) | | | | | | 384,967,169 | |
| | | | |
|
| |
| | | | | | | |
U.S. Treasury Obligations—3.5% | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
U.S. Treasury Bills – 3.5% | | | | | | | |
0.36%, 6/10/10 (c) | | | 50,000,000 | | | 49,980,306 | |
0.35%, 6/17/10 (c) | | | 150,000,000 | | | 149,931,328 | |
0.40%, 7/15/10 (c) | | | 100,000,000 | | | 99,917,552 | |
| | | | |
|
| |
| | | | | | 299,829,186 | |
| | | | |
|
| |
TOTAL U.S. TREASURY OBLIGATIONS
(COST $299,829,186) | | | | | | 299,829,186 | |
| | | | |
|
| |
| | | | | | | |
Commercial Paper And Notes—30.9% | | | | | | | |
|
|
| | | | | | | |
Banking – 18.1% | | | | | | | |
ANZ National International Ltd., 0.71%,
9/22/10 (a)(c) | | | 50,000,000 | | | 49,860,000 | |
Banco Bilbao Vizcaya London, 0.29%,
7/6/10 (a)(c) | | | 110,000,000 | | | 109,941,516 | |
Banque et Caisse d’Epargne de l’Etat,
0.22%, 5/11/10 (c) | | | 85,000,000 | | | 84,994,806 | |
Banque et Caisse d’Epargne de l’Etat,
0.20%, 5/28/10 (c) | | | 50,000,000 | | | 49,992,500 | |
Banque et Caisse d’Epargne de l’Etat,
0.23%, 6/14/10 (c) | | | 50,000,000 | | | 49,985,944 | |
BNZ International Funding Ltd.,
0.26%, 7/1/10, (LOC Bank of
New Zealand) (a)(c) | | 60,000,000 | | 59,973,567 | |
DnB NOR Bank ASA, 0.24%,
6/28/10 (a)(c) | | | 90,000,000 | | | 89,965,200 | |
Groupe BPCE, 0.39%, 7/19/10 (c) | | | 70,000,000 | | | 69,940,092 | |
Groupe BPCE, 0.37%, 8/4/10 (a)(c) | | | 100,000,000 | | | 99,902,362 | |
Intesa Funding LLC, 0.19%, 5/6/10 (c) | | | 105,000,000 | | | 104,997,229 | |
KfW, 0.18%, 6/4/10, (LOC Republic
of Germany) (a)(c) | | | 100,000,000 | | | 99,983,000 | |
Lloyds TSB Bank plc, N.Y., 0.20%,
5/3/10 (c) | | | 120,000,000 | | | 119,998,667 | |
National Bank of Canada, N.Y., 0.30%,
7/16/10 (c) | | | 75,000,000 | | | 74,952,500 | |
NRW Bank, 0.19%, 5/28/10 (a)(c) | | | 97,000,000 | | | 96,986,177 | |
NRW Bank, 0.29%, 8/9/10 (c) | | | 100,000,000 | | | 99,919,445 | |
Societe Generale N.A., 0.30%, 9/1/10,
(LOC Societe Generale) (c) | | | 100,000,000 | | | 99,899,209 | |
Sumitomo Mitsui Banking Corp., 0.22%,
5/28/10 (c) | | | 100,000,000 | | | 99,983,500 | |
Sumitomo Mitsui Banking Corp., 0.31%,
7/6/10 (c) | | | 100,000,000 | | | 99,943,167 | |
| | | | |
|
| |
| | | | | | 1,561,299,436 | |
| | | | |
|
| |
Diversified – 2.4% | | | | | | | |
Total Capital Canada Ltd., 0.19%,
5/7/10, (LOC Total SA) (c) | | | 125,000,000 | | | 124,996,042 | |
Total Capital Canada Ltd., 0.19%,
6/4/10, (LOC Total SA) (c) | | | 85,000,000 | | | 84,984,747 | |
| | | | |
|
| |
| | | | | | 209,980,789 | |
| | | | |
|
| |
Finance – 10.4% | | | | | | | |
Chariot Funding LLC, 0.25%, 6/25/10,
(LOC JP Morgan Chase Bank) (a)(c) | | | 50,000,000 | | | 49,980,903 | |
Gemini Securitization Corp. LLC,
0.24%, 6/1/10, (LOC Deustche Bank
AG, N.Y.) (a)(c) | | | 100,000,000 | | | 99,979,334 | |
| | |
19 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR PRIME MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Commercial Paper And Notes, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Finance, continued | | | | | | | |
ING (US) Funding LLC, 0.20%,
5/26/10, (LOC ING Bank NV) (c) | | | 100,000,000 | | | 99,986,111 | |
ING (US) Funding LLC, 0.20%, 6/3/10,
(LOC ING Bank NV) (c) | | | 100,000,000 | | | 99,981,667 | |
Nestle Capital Corp., 0.27%, 9/7/10,
(LOC Nestle SA) (a)(c) | | | 100,000,000 | | | 99,903,250 | |
Rabobank USA Financial Corp., 0.29%,
6/15/10 (c) | | | 84,000,000 | | | 83,970,075 | |
Santander Central Hispano Finance,
0.69%, 6/3/10 (c) | | | 75,000,000 | | | 74,952,563 | |
Sheffield Receivables Corp., 0.23%,
5/27/10, (LOC Barclays Bank plc,
N.Y.) (c) | | | 50,000,000 | | | 49,991,695 | |
Sheffield Receivables Corp., 0.24%,
6/7/10 (c) | | | 40,000,000 | | | 39,990,133 | |
Sheffield Receivables Corp., 0.25%,
6/21/10 (c) | | | 60,000,000 | | | 59,978,750 | |
Societe de Prise Participation de I’Etat,
0.19%, 5/10/10, (LOC Republic of
France) (c) | | | 100,000,000 | | | 99,995,375 | |
Thames Asset Global Securitization
No. 1, Inc., 0.23%, 5/17/10 (c) | | | 35,051,000 | | | 35,047,417 | |
| | | | |
|
| |
| | | | | | 893,676,718 | |
| | | | |
|
| |
TOTAL COMMERCIAL PAPER AND
NOTES (COST $2,664,956,943) | | | | | | 2,664,956,943 | |
| | | | |
|
| |
| | | | | | | |
Certificates of Deposit—32.2% | | | | | | | |
|
|
| | | | | | | |
Banking – 32.2% | | | | | | | |
Abbey National N.A. LLC,
1.05%, 5/24/10 | | | 115,000,000 | | | 115,060,811 | |
Australia & New Zealand Banking Group,
N.Y., 0.25%, 12/9/10 (b) | | | 34,000,000 | | | 34,000,000 | |
Banco Bilbao Vizcaya Argentaria SA,
0.43%, 6/30/10 | | | 81,000,000 | | | 81,000,000 | |
Bank of Montreal, 0.20%, 6/8/10 | | | 200,000,000 | | | 200,000,000 | |
Bank of Nova Scotia, 0.30%, 7/28/10 | | | 90,000,000 | | | 90,000,000 | |
Bank of Nova Scotia Houston,
0.27%, 11/23/10 (b) | | | 80,000,000 | | | 80,000,000 | |
Bank of Tokyo-Mitsubishi UFJ, N.Y.,
0.30%, 7/6/10 | | | 80,000,000 | | | 80,000,000 | |
Bank of Tokyo-Mitsubishi UFJ, N.Y.,
0.32%, 8/31/10 | | | 65,000,000 | | | 65,000,000 | |
Calyon N.A., Inc., 0.92%, 8/26/10 | | | 86,000,000 | | | 86,000,000 | |
Commerzbank AG, N.Y.,
0.24%, 5/28/10 | | | 75,000,000 | | | 75,000,000 | |
Commonwealth Bank of Australia, N.Y.,
0.18%, 5/10/10 | | | 120,000,000 | | | 120,000,000 | |
Credit Agricole CIB, N.Y.,
0.20%, 6/4/10 | | | 115,000,000 | | | 115,000,000 | |
Credit Industriel et Commercial, N.Y.,
0.32%, 5/27/10 | | | 160,000,000 | | | 160,000,000 | |
Credit Suisse, N.Y., 0.65%, 10/25/10 | | | 80,000,000 | | | 80,089,715 | |
Deutsche Bank, N.Y., 0.30%, 7/22/10 | | | 75,000,000 | | | 75,000,000 | |
DnB NOR Bank ASA, N.Y.,
0.28%, 8/4/10 | | | 100,000,000 | | | 100,000,000 | |
Fortis Bank, N.Y., 0.24%, 5/21/10 | | | 75,000,000 | | | 75,000,000 | |
Fortis Bank, N.Y., 0.23%, 5/27/10 | | | 100,000,000 | | | 100,000,000 | |
Intesa Sanpaolo SPA, 0.80%, 8/24/10 | | | 86,000,000 | | | 86,000,000 | |
| | | | | | | |
Certificates of Deposit, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Banking, continued | | | | | | | |
National Bank of Canada, N.Y.,
0.30%, 7/27/10 | | | 90,000,000 | | | 90,000,000 | |
Nordea Bank Finland, N.Y.,
0.18%, 8/5/10 | | | 115,000,000 | | | 115,000,000 | |
Nordea Bank Finland, N.Y.,
0.76%, 8/25/10 | | | 86,000,000 | | | 86,000,000 | |
Norinchukin Bank, N.Y.,
0.29%, 6/4/10 | | | 85,000,000 | | | 85,000,000 | |
Royal Bank of Canada, N.Y.,
0.25%, 12/2/10 (b) | | | 70,000,000 | | | 70,000,000 | |
Royal Bank of Canada, N.Y.,
0.25%, 12/14/10 (b) | | | 25,000,000 | | | 25,000,000 | |
Royal Bank of Scotland plc,
0.19%, 5/13/10 | | | 50,000,000 | | | 50,000,000 | |
Royal Bank of Scotland plc,
0.20%, 5/25/10 | | | 100,000,000 | | | 100,000,000 | |
Svenska Handelsbanken, N.Y.,
0.18%, 5/3/10 | | | 100,000,000 | | | 100,000,000 | |
Svenska Handelsbanken, N.Y.,
0.20%, 6/1/10 | | | 60,000,000 | | | 60,000,000 | |
Toronto Dominion Bank,
0.21%, 5/25/10 | | | 90,000,000 | | | 90,000,000 | |
Toronto Dominion Bank,
0.25%, 12/9/10 (b) | | | 85,000,000 | | | 85,000,000 | |
| | | | |
|
| |
| | | | | | 2,773,150,526 | |
| | | | |
|
| |
TOTAL CERTIFICATES OF DEPOSIT
(COST $2,773,150,526) | | | | | | 2,773,150,526 | |
| | | | |
|
| |
| | | | | | | |
Municipal Bonds—1.9% | | | | | | | |
|
|
| | | | | | | |
California – 0.3% | | | | | | | |
California Infrastructure &
Economic Development Bank
Revenue, Series A, 0.27%, 4/1/42,
(LOC Bank of America N.A.) (b) | | | 30,000,000 | | | 30,000,000 | |
| | | | |
|
| |
Georgia – 0.4% | | | | | | | |
Gwinnett County Georgia Hospital
Authority Revenue, Series A,
0.30%, 7/1/34, (LOC Wachovia
Bank N.A.) (b) | | | 34,025,000 | | | 34,025,000 | |
| | | | |
|
| |
Louisiana – 0.1% | | | | | | | |
Louisiana Housing Finance Agency
Revenue, 0.27%, 9/15/40,
(LOC Fannie Mae) (b) | | | 11,000,000 | | | 11,000,000 | |
| | | | |
|
| |
Minnesota – 0.2% | | | | | | | |
Minneapolis Health Care System
Revenue, Series C, 0.26%, 11/15/47,
(LOC Wells Fargo Bank N.A.) (b) | | | 18,000,000 | | | 18,000,000 | |
| | | | |
|
| |
Texas – 0.5% | | | | | | | |
San Antonio Empowerment Zone
Development Corp. Contract
Revenue, 0.25%, 10/1/35, AMT,
(LOC U.S. Bank N.A.) (b) | | | 20,900,000 | | | 20,900,000 | |
San Antonio Empowerment Zone
Development Corp. Contract
Revenue, 0.25%, 10/1/37, AMT,
(LOC U.S. Bank N.A.) (b) | | | 18,000,000 | | | 18,000,000 | |
| | | | |
|
| |
| | | | | | 38,900,000 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 20 |
|
HSBC INVESTOR PRIME MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Municipal Bonds, continued | | | | | | | |
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Wisconsin – 0.4% | | | | | | | |
Wisconsin Health & Educational
Facilities Authority Revenue,
0.30%, 6/1/35, (LOC Wells Fargo
Bank N.A.) (b) | | | 34,330,000 | | | 34,330,000 | |
| | | | |
|
| |
TOTAL MUNICIPAL BONDS
(COST $166,255,000) | | | | | | 166,255,000 | |
| | | | |
|
| |
| | | | | | | |
Repurchase Agreements—5.4% | | | | | | | |
|
|
| | | | | | | |
Goldman Sachs, purchased on
4/30/10, 0.20%, due on 5/3/10 with
a maturity value of $460,007,667,
collateralized by various Corporate
Obligations, 0.00%-3.25%,
7/30/10-12/28/12, fair value
$469,200,001 | | | 460,000,000 | | | 460,000,000 | |
| | | | |
|
| |
TOTAL REPURCHASE AGREEMENTS
(COST $460,000,000) | | | | | | 460,000,000 | |
| | | | |
|
| |
| | | | | | | |
Time Deposits—11.1% | | | | | | | |
|
|
| | | | | | | |
Credit Agricole Indo Cayman Islands,
0.21%, 5/3/10 | | | 225,000,000 | | | 225,000,000 | |
Deutsche Bank Time Deposit, 0.20%,
5/3/10 | | | 250,000,000 | | | 250,000,000 | |
Natixis Time Deposit, 0.21%, 5/3/10 | | | 200,000,000 | | | 200,000,000 | |
Northern Trust Premium Offshore
Time Deposit, 0.08%, (b) | | | 250,975 | | | 250,975 | |
Societe Generale Cayman Time
Deposit, 0.22%, 5/3/10 | | | 281,000,000 | | | 281,000,000 | |
| | | | |
|
| |
TOTAL TIME DEPOSITS
(COST $956,250,975) | | | | | | 956,250,975 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $8,609,968,246) — 100.0% | | | | | | 8,609,968,246 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $8,613,422,693. |
| |
(a) | Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(b) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2010. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(c) | Discount note. Rate presented represents the effective yield at time of purchase. |
| |
AGM | — Assured Guaranty Municipal Corporation |
AMT | — Interest on security is subject to federal alternative minimum tax |
GO | — General Obligation |
IDA | — Industrial Development Agency |
LLC | — Limited Liability Company |
LOC | — Letter of Credit |
plc | — Public Limited Company |
SPA | — Standby Purchase Agreement |
| | |
21 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Variable Rate Demand Notes—13.8% | | | | | | | |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Arizona—0.6% | | | | | | | |
Apache County Arizona Industrial
Development Authority Revenue,
Series 83A, 0.35%, 12/15/18,
(LOC ABN AMRO Bank N.V.) (a) | | | 600,000 | | | 600,000 | |
| | | | |
|
| |
California – 2.4% | | | | | | | |
Perris California Unified High School
District Certificates of Participation,
0.45%, 9/1/18, (Credit Support AGM,
SPA Dexia Credit Local) (a) | | | 1,735,000 | | | 1,735,000 | |
Perris California Union High School
District Certificates of Participation,
0.45%, 9/1/33, (Credit Support AGM,
SPA Dexia Credit Local) (a) | | | 600,000 | | | 600,000 | |
| | | | |
|
| |
| | | | | | 2,335,000 | |
| | | | |
|
| |
Georgia – 2.3% | | | | | | | |
Roswell Georgia Housing Authority
Multi-family Revenue, 0.31%, 6/15/25,
(Credit Support FNMA) (a) | | | 1,400,000 | | | 1,400,000 | |
Savannah Georgia Economic
Development Authority Revenue,
0.40%, 9/1/24, (LOC Bank of
America N.A.) (a) | | | 900,000 | | | 900,000 | |
| | | | |
|
| |
| | | | | | 2,300,000 | |
| | | | |
|
| |
Illinois – 2.0% | | | | | | | |
Chicago Illinois O’Hare International
Airport Revenue, Series C, 0.30%,
1/1/18, (LOC Societe Generale) (a) | | | 1,000,000 | | | 1,000,000 | |
Illinois Development Finance Authority
Revenue, 0.28%, 12/1/28, (LOC
Northern Trust Co.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | 2,000,000 | |
| | | | |
|
| |
Indiana – 1.0% | | | | | | | |
Indiana State Finance Authority
Revenue, Series A, 0.27%, 7/1/36,
(LOC Northern Trust Co.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
Nebraska – 1.4% | | | | | | | |
Lancaster County Nebraska Hospital
Authority No. 1 Hospital Revenue,
Series B-2, 0.27%, 6/1/31, (LOC U.S.
Bank N.A.) (a) | | | 400,000 | | | 400,000 | |
Saline County Nebraska Hospital
Authority No. 1 Hospital Revenue,
Series C, 0.27%, 6/1/31, (LOC U.S.
Bank N.A.) (a) | | | 990,000 | | | 990,000 | |
| | | | |
|
| |
| | | | | | 1,390,000 | |
| | | | |
|
| |
New Mexico – 0.5% | | | | | | | |
Farmington New Mexico Hospital
Revenue, 0.30%, 6/1/28, (LOC Bank
of Nova Scotia) (a) | | | 500,000 | | | 500,000 | |
| | | | |
|
| |
Pennsylvania – 1.5% | | | | | | | |
Beaver County Pennsylvania Industrial
Development Authority Pollution
Control Revenue, Series A, 0.29%,
1/1/35, (LOC Barclays Bank
plc) (a) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
| | | | | | | |
Variable Rate Demand Notes, continued | | | | | | | |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Washington – 2.1% | | | | | | | |
Washington State Health Care Facilities
Authority Revenue, 0.34%, 11/15/26,
(LOC Citibank N.A.) (a)(b) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
TOTAL VARIABLE RATE DEMAND
NOTES (COST $13,625,000) | | | | | | 13,625,000 | |
| | | | |
|
| |
Commercial Paper And Notes—18.8% | | | | | | | |
|
| | | | | | | |
Colorado – 1.0% | | | | | | | |
Denver Colorado City and County,
0.30%, 6/9/10, (LOC Bayerische
Landesbank Girozentrale, Westlander
Bank, State Street Corp.) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
Connecticut – 2.0% | | | | | | | |
City of New Haven Connecticut, 0.25%,
6/2/10, (LOC Landesbank Hessen-
Thuringen) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
Florida – 1.1% | | | | | | | |
Florida Local Government Finance
Commission, 0.25%, 6/1/10, (LOC
First Union National Bank) | | | 1,075,000 | | | 1,075,000 | |
| | | | |
|
| |
Indiana – 3.1% | | | | | | | |
City of Whiting Indiana, Series 2009,
0.20%, 6/10/10, (LOC BP plc) | | | 3,000,000 | | | 3,000,000 | |
| | | | |
|
| |
Massachusetts – 2.0% | | | | | | | |
Massachusetts Water Resources
Authority, Series 94, 0.38%, 5/3/10,
(LOC Bayerische Landesbank) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
Texas – 5.1% | | | | | | | |
Harris County Texas, Series F, 0.30%,
5/6/10, (LOC Helaba) | | | 2,000,000 | | | 2,000,000 | |
Houston Texas, Series A, 0.28%, 7/7/10,
(LOC Bank of New York) | | | 3,000,000 | | | 3,000,000 | |
| | | | |
|
| |
| | | | | | 5,000,000 | |
| | | | |
|
| |
Washington – 3.0% | | | | | | | |
Port Bellingham Washington IDR,,
0.20%, 6/1/10, (LOC BP plc) | | | 3,000,000 | | | 3,000,000 | |
| | | | |
|
| |
Wyoming – 1.5% | | | | | | | |
Sweetwater County Wyoming Pollution
Cotrol Revenue, 0.25%, 6/2/10,
(LOC Barclays Bank plc) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
TOTAL COMMERCIAL PAPER AND
NOTES (COST $18,575,000) | | | | | | 18,575,000 | |
| | | | |
|
| |
Municipal Bonds—53.8% | | | | | | | |
|
| | | | | | | |
Alabama – 1.0% | | | | | | | |
Mobile Alabama Industrial Development
Board Dock & Wharf Revenue,
Series A, 0.30%, 6/1/32, (LOC
Bayerische Landesbank) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
California – 0.5% | | | | | | | |
Hesperia California Unified School
District Certificates of Participation,
0.45%, 2/1/38, (Credit Support AGM,
SPA Dexia Credit Bank) (a) | | | 500,000 | | | 500,000 | |
| | | | |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 22 |
|
HSBC INVESTOR TAX-FREE MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Municipal Bonds, continued | | | | | | | |
|
|
| | | Principal
Amount($) | | | Amortized
Cost($) | |
| | |
| | |
| |
Colorado – 0.7% | | | | | | | |
Broomfield Colorado Urban Renewal
Authority Tax Increment Revenue,
0.30%, 12/1/30, (LOC BNP
Paribas) (a) | | | 650,000 | | | 650,000 | |
| | | | |
|
| |
Florida – 2.0% | | | | | | | |
Florida Housing Finance Corp.
Multi-family Mortgage Revenue,
Series P, 0.35%, 8/1/35, AMT,
(LOC Citibank N.A.) (a) | | | 1,100,000 | | | 1,100,000 | |
Lee County Florida Airport Revenue,
Series B, 5.75%, 10/1/33, (Credit
Support AGM) | | | 800,000 | | | 826,037 | |
| | | | |
|
| |
| | | | | | 1,926,037 | |
| | | | |
|
| |
Illinois – 1.5% | | | | | | | |
Illinois Educational Facilities Authority
Revenue, Series A, 0.33%, 6/1/29,
(LOC JP Morgan Chase Bank) (a) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
Indiana – 1.3% | | | | | | | |
Purdue University Indiana Student
Revenue, Series Q, 5.75%, 7/1/16 | | | 275,000 | | | 277,521 | |
Valparaiso Indiana Economic
Development Revenue, 0.45%, 5/1/19,
AMT, (LOC U.S. Bank N.A.) (a) | | | 1,005,000 | | | 1,005,000 | |
| | | | |
|
| |
| | | | | | 1,282,521 | |
| | | | |
|
| |
Kansas – 1.0% | | | | | | | |
Newton Kansas Economic Development
Revenue, Series A, 0.40%, 10/1/22,
(LOC Bank of America N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
Kentucky – 0.5% | | | | | | | |
Trimble County Kentucky Association
of Counties Leasing Trust Lease
Program Revenue, Series A, 0.25%,
12/1/38, (LOC U.S. Bank N.A.) (a) | | | 500,000 | | | 500,000 | |
| | | | |
|
| |
Louisiana – 1.0% | | | | | | | |
Louisiana Public Facilities Authority
Revenue, Series B-1, 0.28%, 7/1/47,
(LOC Bank of New York) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
Maine – 1.2% | | | | | | | |
Gorham Maine Revenue Obligation
Securities, Series A, 0.45%, 7/1/21,
AMT, (LOC TD Banknorth N.A.) (a) | | | 1,140,000 | | | 1,140,000 | |
| | | | |
|
| |
Massachusetts – 2.1% | | | | | | | |
Massachusetts Bay Transportation
Authority Mass Sales Tax Revenue,
Series A, 5.75%, 7/1/17 | | | 400,000 | | | 403,700 | |
Massachusetts State GO, Series C,
5.75%, 10/1/11 | | | 250,000 | | | 255,613 | |
Massachusetts State GO, Series A,
5.25%, 1/1/19 | | | 415,000 | | | 428,674 | |
Massachusetts State Industrial
Finance Agency Mortgage Revenue,
0.28%, 8/1/26, (Credit Support
FHA 221 (d) (4), LOC Sumitomo
Bank Ltd.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | 2,087,987 | |
| | | | |
|
| |
| | | | | | | |
Municipal Bonds, continued | | | | | | | |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Michigan – 1.2% | | | | | | | |
Pennfield Michigan School District
Buildings GO, 5.25%, 5/1/25, (Credit
Support Q-SBLF) | | | 1,200,000 | | | 1,200,000 | |
| | | | |
|
| |
Minnesota – 2.8% | | | | | | | |
Minnesota State GO, 5.50%, 6/1/18 | | | 350,000 | | | 351,532 | |
Minnesota State GO, 5.00%, 11/1/20,
AGM, prerefunded 11/1/10 @ 100 | | | 675,000 | | | 690,802 | |
St. Paul Minnesota Port Authority Tax
Increment Revenue, 0.26%, 2/1/15,
(LOC U.S. Bank N.A.) (a) | | | 1,690,000 | | | 1,690,000 | |
| | | | |
|
| |
| | | | | | 2,732,334 | |
| | | | |
|
| |
Missouri – 4.3% | | | | | | | |
Kansas City Missouri Industrial
Development Authority Multi-family
Housing Revenue, Series II-B, 0.36%,
9/1/39, AMT, (LOC Valley View State
Bank, FHLB) (a) | | | 735,000 | | | 735,000 | |
Missouri State Health & Educational
Facilities Authority Educational
Facilities Revenue, 0.29%, 10/1/33,
(LOC Bank of America N.A.) (a) | | | 500,000 | | | 500,000 | |
St Louis County Missouri Industrial
Development Authority Educational
Facilities Revenue, 0.40%, 1/1/28,
(LOC Federal Home Loan Bank,
Midland States Bank) (a) | | | 3,000,000 | | | 3,000,000 | |
| | | | |
|
| |
| | | | | | 4,235,000 | |
| | | | |
|
| |
New Jersey – 10.3% | | | | | | | |
New Jersey State, 6.00%, 5/1/13 | | | 3,800,000 | | | 3,800,000 | |
New Jersey State Transportation Trust
Fund Authority Revenue, Series D,
0.32%, 6/15/32, (LOC Sumitomo
Mitisui Banking Corp.) (a) | | | 3,000,000 | | | 3,000,000 | |
New Jersey State Turnpike Authority
Revenue, Series D, 0.26%, 1/1/24,
(LOC Scotiabank) (a) | | | 3,000,000 | | | 3,000,000 | |
New Jersey State Turnpike Authority
Turnpike Revenue, Series D, 0.35%,
1/1/18, (Credit Support National
Reinsurance FGIC, LOC Societe
Generale) (a) | | | 300,000 | | | 300,000 | |
| | | | |
|
| |
| | | | | | 10,100,000 | |
| | | | |
|
| |
New Mexico – 2.1% | | | | | | | |
New Mexico Educational Assistance
Foundation Revenue, Series A-1,
0.33%, 4/1/34, AMT, (Credit Support
Guaranteed Student Loans, LOC
Royal Bank of Canada) (a) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
North Carolina – 1.5% | | | | | | | |
Lower Cape Fear North Carolina Water
& Sewer Authority Special Facility
Revenue, 0.28%, 12/1/34, (LOC
JP Morgan Chase Bank) (a) | | | 1,500,000 | | | 1,500,000 | |
| | | | |
|
| |
Ohio – 4.8% | | | | | | | |
Hamilton County Ohio Health Care
Revenue, Series B, 0.30%, 1/1/37,
(LOC PNC Bank N.A.) (a) | | | 500,000 | | | 500,000 | |
| | |
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, 2010 (Unaudited) (continued) |
| | | | | | | |
Municipal Bonds, continued | | | | | | | |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Ohio, continued | | | | | | | |
Ohio State Air Quality Development
Authority Revenue, Series A, 0.28%,
2/1/26, (LOC Bank of Nova
Scotia) (a) | | | 1,250,000 | | | 1,250,000 | |
Ohio State Air Quality Development
Authority Revenue, Series C, 0.29%,
2/1/26, (LOC Bank of Tokyo-
Mitsubishi UFJ Ltd.) (a) | | | 3,000,000 | | | 3,000,000 | |
| | | | |
|
| |
| | | | | | 4,750,000 | |
| | | | |
|
| |
Pennsylvania – 5.1% | | | | | | | |
Haverford Township Pennsylvania School
District GO, 0.30%, 3/1/30, (Credit
Support State Aid Withholding, LOC
TD Bank N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Jackson Township Pennsylvania Industrial
Development Authority Revenue,
0.35%, 12/1/34, AMT, (LOC PNC
Bank N.A.) (a) | | | 3,000,000 | | | 3,000,000 | |
Philadelphia Pennsylvania School District
GO, Series B-5, 0.40%, 9/1/30, (Credit
Support State Aid Withholding, LOC
Wachovia Bank N.A.) (a) | | | 1,030,000 | | | 1,030,000 | |
| | | | |
|
| |
| | | | | | 5,030,000 | |
| | | | |
|
| |
Puerto Rico – 2.6% | | | | | | | |
Puerto Rico Commonwealth Infrastructure
Financing Authority Special Obligation,
Series A, 5.50%, 10/1/32 | | | 2,500,000 | | | 2,579,984 | |
| | | | |
|
| |
Tennessee – 0.3% | | | | | | | |
Memphis Tennessee GO, 5.00%,
11/1/11 | | | 250,000 | | | 258,406 | |
| | | | |
|
| |
Texas – 2.0% | | | | | | | |
Mission Texas Economic Development
Corp. Solid Waste Disposal Revenue,
0.33%, 4/1/22, (LOC Bank of America
N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
Tarrant County Texas Housing Finance
Corp. Revenue, 0.33%, 2/15/28,
(Credit Support FNMA) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
| | | | | | 2,000,000 | |
| | | | |
|
| |
Vermont – 1.0% | | | | | | | |
Vermont Educational & Health Buildings
Financing Agency Revenue, Series A,
0.29%, 10/1/32, (LOC TD Banknorth
N.A.) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
West Virginia – 2.0% | | | | | | | |
West Virginia Economic Development
Authority Pollution Control Revenue,
Series B, 0.25%, 7/1/14, (LOC Royal
Bank of Scotland) (a) | | | 2,000,000 | | | 2,000,000 | |
| | | | |
|
| |
Wyoming – 1.0% | | | | | | | |
Sweetwater County Wyoming Pollution
Control Revenue, Series A, 0.28%,
7/1/15, (LOC Barclays Bank PLC) (a) | | | 1,000,000 | | | 1,000,000 | |
| | | | |
|
| |
TOTAL MUNICIPAL BONDS
(COST $52,972,269) | | | | | | 52,972,269 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—3.3% | | | | | | | |
|
| | | | | | | |
| | | Shares | | | Amortized
Cost($) | |
| | |
| | |
| |
BlackRock Liquidity Funds MuniFund
Portfolio, Institutional Shares,
0.16% (c) | | | 3,179,439 | | | 3,179,439 | |
Northern Institutional Tax Exempt
Portfolio, Shares Class, 0.01% (c) | | | 33,208 | | | 33,208 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $3,212,647) | | | | | | 3,212,647 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $88,384,916) — 89.7% | | | | | | 88,384,916 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $98,484,577. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. |
| The rates presented represent the rates in effect on April 30, 2010. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
| |
(c) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
AGM | — | Assured Guaranty Municipal Corporation |
AMT | — | Interest on security is subject to federal alternative minimum tax |
FGIC | — | Financial Guaranty Insurance Company |
FHA | — | Federal Housing Administration |
FHLB | — | Federal Home Loan Bank |
FNMA | — | Federal National Mortgage Association |
GO | — | General Obligation |
IDR | — | Industrial Development Revenue |
LOC | — | Letter of Credit |
plc | — | Public Limited Company |
SPA | — | Standby Purchase Agreement |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 24 |
|
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
U.S. Government and Government Agency Obligations—37.3% | | | | | |
|
| | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Federal Farm Credit Bank – 5.3% | | | | | | | |
0.17%, 5/11/10 (a) | | | 100,000,000 | | | 100,000,485 | |
0.18%, 6/23/10, Series 1 (a) | | | 40,000,000 | | | 39,997,068 | |
5.25%, 6/24/10 | | | 36,725,000 | | | 36,982,197 | |
2.25%, 7/1/10 | | | 3,000,000 | | | 3,010,412 | |
0.57%, 7/23/10 (a) | | | 50,000,000 | | | 50,032,215 | |
0.48%, 8/19/10 (b) | | | 65,000,000 | | | 64,904,667 | |
0.22%, 9/3/10, Series 1 (a) | | | 100,000,000 | | | 100,000,000 | |
5.25%, 9/13/10 | | | 16,340,000 | | | 16,634,692 | |
0.39%, 12/1/10 | | | 100,000,000 | | | 100,000,000 | |
0.21%, 12/7/10 (a) | | | 50,000,000 | | | 50,000,000 | |
0.26%, 4/20/11, Series 1 (a) | | | 40,000,000 | | | 40,000,000 | |
| | | | |
|
| |
| | | | | | 601,561,736 | |
| | | | |
|
| |
Federal Home Loan Bank – 16.1% | | | | | | | |
4.88%, 5/14/10 | | | 9,080,000 | | | 9,095,548 | |
0.55%, 6/4/10 | | | 86,205,000 | | | 86,203,394 | |
0.52%, 7/7/10 (b) | | | 35,000,000 | | | 34,966,779 | |
0.55%, 8/5/10 | | | 100,000,000 | | | 99,985,008 | |
0.22%, 8/25/10 (b) | | | 88,200,000 | | | 88,138,897 | |
0.42%, 9/21/10 | | | 85,000,000 | | | 84,989,783 | |
0.77%, 9/29/10 | | | 48,000,000 | | | 48,064,273 | |
0.50%, 10/25/10 | | | 100,000,000 | | | 100,031,426 | |
0.45%, 10/28/10 | | | 50,000,000 | | | 50,026,294 | |
0.27%, 10/29/10, Series 1 | | | 252,000,000 | | | 251,953,553 | |
0.50%, 10/29/10 | | | 40,000,000 | | | 40,008,735 | |
0.50%, 10/29/10 | | | 100,000,000 | | | 100,031,478 | |
0.50%, 11/3/10 | | | 100,000,000 | | | 100,000,000 | |
0.50%, 11/24/10 | | | 100,000,000 | | | 100,000,000 | |
0.22%, 12/3/10, Series 1 (a) | | | 150,000,000 | | | 149,963,852 | |
0.50%, 12/28/10 | | | 33,020,000 | | | 33,020,000 | |
0.41%, 12/29/10 | | | 100,000,000 | | | 100,000,000 | |
0.40%, 1/4/11 | | | 50,000,000 | | | 50,004,757 | |
0.18%, 1/14/11 (a) | | | 200,000,000 | | | 200,000,000 | |
0.25%, 5/6/11, Series 1 (a) | | | 100,000,000 | | | 99,960,000 | |
| | | | |
|
| |
| | | | | | 1,826,443,777 | |
| | | | |
|
| |
Federal Home Loan Mortgage Corp. – 7.4% | | | | | | | |
0.51%, 7/6/10 (b) | | | 50,000,000 | | | 49,953,250 | |
0.21%, 8/16/10 (b) | | | 66,098,000 | | | 66,056,744 | |
1.33%, 8/18/10 | | | 12,600,000 | | | 12,637,373 | |
0.22%, 8/30/10 (b) | | | 198,000,000 | | | 197,856,918 | |
0.23%, 9/7/10 (b) | | | 50,000,000 | | | 49,958,792 | |
0.22%, 9/10/10 (a) | | | 30,000,000 | | | 30,008,458 | |
1.45%, 9/10/10 | | | 77,425,000 | | | 77,730,386 | |
0.24%, 9/14/10 (b) | | | 50,000,000 | | | 49,954,667 | |
0.24%, 9/23/10 (b) | | | 134,200,000 | | | 134,070,273 | |
0.27%, 9/30/10 (b) | | | 100,000,000 | | | 99,886,000 | |
0.27%, 10/18/10 (b) | | | 50,000,000 | | | 49,936,250 | |
3.13%, 10/25/10 | | | 33,305,000 | | | 33,742,850 | |
| | | | |
|
| |
| | | | | | 851,791,961 | |
| | | | |
|
| |
| | | | | | | |
U.S. Government and Government Agency Obligations, continued |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Federal National Mortgage Association – 8.5% | | | | | | | |
4.13%, 5/15/10 | | | 39,500,000 | | | 39,552,550 | |
0.19%, 5/25/10 (b) | | | 100,000,000 | | | 99,987,333 | |
0.52%, 7/19/10 (b) | | | 100,000,000 | | | 99,885,889 | |
0.21%, 8/2/10 (b) | | | 100,000,000 | | | 99,945,750 | |
0.22%, 8/18/10 (b) | | | 150,000,000 | | | 149,901,597 | |
0.24%, 9/20/10 (b) | | | 50,000,000 | | | 49,952,667 | |
0.26%, 10/1/10 (b) | | | 100,000,000 | | | 99,889,500 | |
2.88%, 10/12/10 | | | 25,000,000 | | | 25,276,366 | |
0.27%, 10/13/10 (b) | | | 100,000,000 | | | 99,876,250 | |
0.30%, 10/25/10 (b) | | | 200,000,000 | | | 199,705,000 | |
| | | | |
|
| |
| | | | | | 963,972,902 | |
| | | | |
|
| |
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(COST $4,243,770,376) | | | | | | 4,243,770,376 | |
| | | | |
|
| |
| | | | | | | |
U.S. Treasury Obligations—0.4% | | | | | | | |
|
|
|
|
|
|
|
|
U.S. Treasury Bills – 0.4% | | | | | | | |
0.40%, 7/15/10, (b) | | | 50,000,000 | | | 49,958,906 | |
| | | | |
|
| |
TOTAL U.S. TREASURY OBLIGATIONS
(COST $49,958,906) | | | | | | 49,958,906 | |
| | | | |
|
| |
| | | | | | | |
Repurchase Agreements—63.2% | | | | | | | |
|
|
|
|
|
|
|
|
Bank of America Corp., purchased on
4/30/10, 0.20%, due on 5/3/10 with
with a maturity value of $500,008,333,
collateralized by various U.S.
Government and Government
Agency Obligations, 4.00%-6.50%,
2/1/24-5/1/40, fair value
$510,000,223 | | | 500,000,000 | | | 500,000,000 | |
Barclays Capital Group, purchased on
4/26/10, 0.19%, due on 5/3/10 with
a maturity value of $250,009,236,
collateralized by various Corporate
Obligations, 0.00%-3.25%,
6/9/10-12/28/12, fair value
$255,000,001 | | | 250,000,000 | | | 250,000,000 | |
Barclays Capital Group, purchased on
4/30/10, 0.20%, due on 5/3/10 with
a maturity value of $750,012,500,
collateralized by various Corporate
Obligations, 0.00%-3.25%,
12/2/10-12/28/12, fair value
$765,000,001 | | | 750,000,000 | | | 750,000,000 | |
BNP Paribas, purchased on 4/15/10,
0.19%, due on 5/17/10 with a maturity
value of $250,042,750, collateralized
by various U.S. Government and
Government Agency Obligations,
2.38%-8.00%, 9/1/10-5/1/40, fair
value $255,000,000 | | | 250,000,000 | | | 250,000,000 | |
BNP Paribas, purchased on 4/30/10,
0.20%, due on 5/3/10 with a maturity
value of $750,012,500, collateralized
by various U.S. Government and
Government Agency Obligations,
1.86%-6.75%, 1/1/16-3/1/48, fair
value $765,000,000 | | | 750,000,000 | | | 750,000,000 | |
| | |
25 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Repurchase Agreements, continued |
|
| | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Deutsche Bank, purchased on 4/30/10,
0.18%, due on 5/3/10 with a maturity
value of $200,003,000, collateralized
by various U.S. Treasury Obligations,
DN, 2/15/23-2/15/36, fair value
$204,000,000 | | | 200,000,000 | | | 200,000,000 | |
Deutsche Bank, purchased on 4/30/10,
0.20%, due on 5/3/10 with a maturity
value of $800,013,333, collateralized
by various U.S. Government and
Government Agency Obligations,
3.50%-16.00%, 5/1/10-4/1/40,
fair value $816,000,000 | | | 800,000,000 | | | 800,000,000 | |
Goldman Sachs, purchased on 4/30/10,
0.18%, due on 5/3/10 with a maturity
value of $400,006,000, collateralized
by various U.S. Government and
Government Agency Obligations,
0.00%-6.25%, 5/12/10-7/15/32,
fair value $408,000,105 | | | 400,000,000 | | | 400,000,000 | |
Goldman Sachs, purchased on 4/30/10,
0.20%, due on 5/3/10 with a maturity
value of $615,010,250, collateralized
by various Corporate Obligations,
1.25%-2.38%, 3/30/11-6/22/12,
fair value $627,300,001 | | | 615,000,000 | | | 615,000,000 | |
Greenwich Capital Markets, Inc.,
purchased on 4/22/10, 0.21%, due
on 5/6/10 with a maturity value of
$250,020,417, collateralized by U.S.
Government Mortgage Obligations,
2.65%-6.33%, 8/1/29-5/1/40,
fair value $255,002,279 | | | 250,000,000 | | | 250,000,000 | |
Greenwich Capital Markets, Inc.,
purchased on 4/30/10, 0.20%, due
on 5/3/10 with a maturity value of
$500,008,333, collateralized by U.S.
Treasury Obligation, 1.00%, 7/31/11,
fair value $510,001,298 | | | 500,000,000 | | | 500,000,000 | |
Morgan Stanley, purchased on 4/30/10,
0.17%, due on 5/3/10 with a maturity
value of $250,003,819, collateralized
by various U.S. Government and
Government Agency Obligations,
2.14%-7.50%, 8/1/17-4/1/40,
fair value $255,001,534 | | | 250,000,000 | | | 250,000,000 | |
Morgan Stanley, purchased on 4/30/10,
0.19%, due on 5/3/10 with a maturity
value of $500,007,639, collateralized
by various U.S. Government and
Government Agency Obligations,
2.14%-7.50%, 8/1/17-4/1/40,
fair value $510,003,068 | | | 500,000,000 | | | 500,000,000 | |
Royal Bank of Canada, purchased on
4/30/10, 0.19%, due on 5/3/10 with
a maturity value of $975,015,438,
collateralized by various U.S.
Government and Treasury Obligations,
0.00%-3.88%, 5/15/10-2/15/40,
fair value $994,504,449 | | | 975,000,000 | | | 975,000,000 | |
| | | | | | | |
Repurchase Agreements, continued | | | | | | | |
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
Royal Bank of Canada, purchased on
4/30/10, 0.20%, due on 5/3/10 with
a maturity value of $100,001,667,
collateralized by various U.S.
Government and Government
Agency Obligations, 0.00%-2.17%,
11/23/11-10/28/13, fair value
$102,000,578 | | | 100,000,000 | | | 100,000,000 | |
Royal Bank of Canada, purchased on
4/30/10, 0.21%, due on 6/30/10 with
a maturity value of $100,035,583,
collateralized by various U.S.
Government and Government
Agency Obligations, 3.50%-16.00%,
10/1/10-4/1/40, fair value
$102,000,001 | | | 100,000,000 | | | 100,000,000 | |
| | | | |
|
| |
TOTAL REPURCHASE AGREEMENTS
(COST $7,190,000,000) | | | | | | 7,190,000,000 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $11,483,729,282) — 100.9% | | | | | | 11,483,729,282 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $11,386,742,387. |
| |
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2010. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
| |
(b) | Discount note. Rate presented represents the effective yield at time of purchase. |
| |
DN — Discount Note |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 26 |
|
HSBC INVESTOR U.S. TREASURY MONEY MARKET FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
U.S. Treasury Obligations—100.0% |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Principal
Amount($) | | Amortized
Cost($) | |
| |
| |
| |
| | | | | | | |
U.S. Treasury Bills – 97.9% | | | | | | | |
0.14%, 5/6/10 (a) | | | 202,000,000 | | | 201,996,046 | |
0.15%, 5/13/10 (a) | | | 420,000,000 | | | 419,979,490 | |
0.13%, 5/20/10 (a) | | | 500,000,000 | | | 499,965,332 | |
0.15%, 5/27/10 (a) | | | 567,500,000 | | | 567,438,655 | |
0.15%, 6/3/10 (a) | | | 75,000,000 | | | 74,989,665 | |
0.23%, 6/10/10 (a) | | | 325,000,000 | | | 324,929,932 | |
0.29%, 6/17/10 (a) | | | 625,000,000 | | | 624,821,939 | |
0.16%, 6/24/10 (a) | | | 325,000,000 | | | 324,927,064 | |
0.20%, 7/15/10 (a) | | | 100,000,000 | | | 99,962,656 | |
0.14%, 7/22/10 (a) | | | 25,000,000 | | | 24,992,028 | |
0.17%, 8/12/10 (a) | | | 50,000,000 | | | 49,975,681 | |
0.17%, 8/19/10 (a) | | | 25,000,000 | | | 24,986,861 | |
0.22%, 8/26/10 (a) | | | 50,000,000 | | | 49,965,769 | |
0.23%, 9/16/10 (a) | | | 50,000,000 | | | 49,956,396 | |
0.25%, 9/23/10 (a) | | | 25,000,000 | | | 24,975,330 | |
0.24%, 9/30/10 (a) | | | 25,000,000 | | | 24,974,931 | |
0.37%, 10/21/10 (a) | | | 138,800,000 | | | 138,552,884 | |
| | | | |
|
| |
| | | | | | 3,527,390,659 | |
| | | | |
|
| |
U.S. Treasury Notes – 2.1% | | | | | | | |
2.38%, 8/31/10 | | | 50,000,000 | | | 50,339,283 | |
1.50%, 10/31/10 | | | 25,000,000 | | | 25,132,880 | |
| | | | |
|
| |
| | | | | | 75,472,163 | |
| | | | |
|
| |
Total U.S. Treasury Obligations (COST $3,602,862,822) | | | | | | 3,602,862,822 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $3,602,862,822) — 100.0% | | | | | | 3,602,862,822 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $3,602,628,874. |
| |
(a) | Discount note. Rate presented represents the effective yield at time of purchase. |
| | |
27 | 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, 2010 (Unaudited) |
| | | | | | | | | | |
| | California
Tax-Free
Money Market
Fund | | New York
Tax-Free
Money Market
Fund | | Prime
Money Market
Fund | |
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | |
Investments, at amortized cost | | $ | 40,776,860 | | $ | 520,329,304 | | $ | 8,149,968,246 | |
Repurchase agreements, at cost | | | — | | | — | | | 460,000,000 | |
| |
|
| |
|
| |
|
| |
Total Investments | | | 40,776,860 | | | 520,329,304 | | | 8,609,968,246 | |
| |
|
| |
|
| |
|
| |
Interest and dividends receivable | | | 29,771 | | | 450,440 | | | 5,270,786 | |
Receivable for capital shares issued | | | 141 | | | 6,211 | | | 243,670 | |
Receivable from Investment Manager | | | 1,806 | | | — | | | — | |
Receivable for investments sold | | | 7,400,000 | | | 41,225,000 | | | — | |
Prepaid expenses and other assets | | | 24,021 | | | 36,685 | | | 199,946 | |
| |
|
| |
|
| |
|
| |
Total Assets | | | 48,232,599 | | | 562,047,640 | | | 8,615,682,648 | |
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | |
Dividends payable | | | 519 | | | 8,429 | | | 528,274 | |
Accrued expenses and other liabilities: | | | | | | | | | | |
Investment Management | | | — | | | 77,228 | | | 1,018,868 | |
Administration | | | — | | | 19,888 | | | 284,169 | |
Shareholder Servicing | | | — | | | 4,351 | | | — | |
Compliance Services | | | 85 | | | 74 | | | 1,185 | |
Transfer Agent | | | 6,118 | | | 6,249 | | | 26,541 | |
Trustee | | | 490 | | | 764 | | | 20,186 | |
Other | | | 7,335 | | | 36,158 | | | 380,732 | |
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 14,547 | | | 153,141 | | | 2,259,955 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 48,218,052 | | $ | 561,894,499 | | $ | 8,613,422,693 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Composition of Net Assets: | | | | | | | | | | |
Capital | | $ | 48,219,627 | | $ | 561,890,291 | | $ | 8,613,770,939 | |
Accumulated net investment income | | | 9 | | | 4,068 | | | 2 | |
Accumulated net realized gains (losses) from investment transactions | | | (1,584 | ) | | 140 | | | (348,248 | ) |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 48,218,052 | | $ | 561,894,499 | | $ | 8,613,422,693 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Net Assets: | | | | | | | | | | |
Class A Shares | | $ | 214,671 | | $ | 43,904,572 | | $ | 319,023,502 | |
Class B Shares | | | — | | | 21,437 | | | 247,222 | |
Class C Shares | | | — | | | — | | | 219,756,793 | |
Class D Shares | | | 43,806,348 | | | 373,026,601 | | | 1,667,447,430 | |
Class I Shares | | | — | | | — | | | 5,547,909,890 | |
Class Y Shares | | | 4,197,033 | | | 144,941,889 | | | 859,037,856 | |
| |
|
| |
|
| |
|
| |
| | $ | 48,218,052 | | $ | 561,894,499 | | $ | 8,613,422,693 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Shares Outstanding
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | |
Class A Shares | | | 214,697 | | | 43,903,036 | | | 319,134,029 | |
Class B Shares | | | — | | | 21,397 | | | 247,235 | |
Class C Shares | | | — | | | — | | | 219,778,116 | |
Class D Shares | | | 43,801,274 | | | 373,031,874 | | | 1,668,466,093 | |
Class I Shares | | | — | | | — | | | 5,547,253,153 | |
Class Y Shares | | | 4,205,276 | | | 144,940,538 | | | 858,906,966 | |
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 | |
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 amortized cost | | $ | 40,776,860 | | $ | 520,329,304 | | $ | 8,609,968,246 | |
| |
|
| |
|
| |
|
| |
| | |
|
* | Redemption price per share varies by length of time shares are held. |
| |
29 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | | | | |
| | Tax-Free
Money Market
Fund | | U.S.
Government
Money Market
Fund | | U.S. Treasury
Money Market
Fund | |
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | |
Investments, at amortized cost | | $ | 88,384,916 | | $ | 4,293,729,282 | | $ | 3,602,862,822 | |
Repurchase agreements, at cost | | | — | | | 7,190,000,000 | | | — | |
| |
|
| |
|
| |
|
| |
Total Investments | | | 88,384,916 | | | 11,483,729,282 | | | 3,602,862,822 | |
| |
|
| |
|
| |
|
| |
Cash | | | — | | | 1,169,393 | | | 144,854 | |
Interest and dividends receivable | | | 238,579 | | | 3,864,319 | | | 201,087 | |
Receivable for capital shares issued | | | 552 | | | 391,795 | | | 21,961 | |
Receivable for investments sold | | | 9,865,000 | | | — | | | — | |
Prepaid expenses and other assets | | | 27,366 | | | 190,395 | | | 83,946 | |
| |
|
| |
|
| |
|
| |
Total Assets | | | 98,516,413 | | | 11,489,345,184 | | | 3,603,314,670 | |
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | |
Dividends payable | | | 2,339 | | | 591,420 | | | 34,415 | |
Payable for investments purchased | | | — | | | 99,960,000 | | | — | |
Accrued expenses and other liabilities: | | | | | | | | | | |
Investment Management | | | — | | | 1,138,906 | | | 298,439 | |
Administration | | | 3,458 | | | 328,605 | | | 102,394 | |
Shareholder Servicing | | | 2,485 | | | — | | | — | |
Compliance Services | | | 104 | | | 248 | | | — | |
Transfer Agent | | | 6,789 | | | 27,026 | | | 13,036 | |
Trustee | | | 608 | | | 5,514 | | | 5,393 | |
Other | | | 16,053 | | | 551,078 | | | 232,119 | |
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 31,836 | | | 102,602,797 | | | 685,796 | |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 98,484,577 | | $ | 11,386,742,387 | | $ | 3,602,628,874 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Composition of Net Assets: | | | | | | | | | | |
Capital | | $ | 98,482,749 | | $ | 11,386,364,726 | | $ | 3,602,663,148 | |
Accumulated net investment income (loss) | | | — | | | 2,213 | | | (3 | ) |
Accumulated net realized gains (losses) from investment transactions | | | 1,828 | | | 375,448 | | | (34,271 | ) |
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 98,484,577 | | $ | 11,386,742,387 | | $ | 3,602,628,874 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Net Assets: | | | | | | | | | | |
Class A Shares | | $ | 255 | | $ | 639,468,670 | | $ | 283,714,928 | |
Class B Shares | | | — | | | 87,943 | | | 54,882 | |
Class C Shares | | | — | | | 179,326 | | | 5,270,104 | |
Class D Shares | | | 66,435,813 | | | 662,430,905 | | | 738,153,275 | |
Class I Shares | | | — | | | 6,606,682,586 | | | 1,537,469,418 | |
Class Y Shares | | | 32,048,509 | | | 3,477,892,957 | | | 1,037,966,267 | |
| |
|
| |
|
| |
|
| |
| | $ | 98,484,577 | | $ | 11,386,742,387 | | $ | 3,602,628,874 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Shares Outstanding
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | |
Class A Shares | | | 255 | | | 639,051,700 | | | 283,750,077 | |
Class B Shares | | | — | | | 87,937 | | | 54,885 | |
Class C Shares | | | — | | | 179,374 | | | 5,270,106 | |
Class D Shares | | | 66,433,186 | | | 662,070,378 | | | 738,149,608 | |
Class I Shares | | | — | | | 6,607,139,759 | | | 1,537,489,832 | |
Class Y Shares | | | 32,048,940 | | | 3,477,835,935 | | | 1,037,960,508 | |
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 | | $ | 1.00 | |
Class Y Shares | | $ | 1.00 | | $ | 1.00 | | $ | 1.00 | |
| |
|
| |
|
| |
|
| |
Total Investments, at amortized cost | | $ | 88,384,916 | | $ | 11,483,729,282 | | $ | 3,602,862,822 | |
| |
|
| |
|
| |
|
| |
| |
|
* | Redemption price per share varies by length of time shares are held. |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 30 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Statements of Operations—For the six months ended April 30, 2010 (Unaudited) |
| | | | | | | | | | |
| | California
Tax-Free
Money Market
Fund | | New York
Tax-Free
Money Market
Fund | | Prime
Money Market
Fund | |
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | |
Interest | | $ | 114,886 | | $ | 788,463 | | $ | 13,724,822 | |
Dividends | | | 1,879 | | | 10,517 | | | 2,823 | |
| |
|
| |
|
| |
|
| |
Total Investment Income | | | 116,765 | | | 798,980 | | | 13,727,645 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Expenses: | | | | | | | | | | |
Investment Management | | | 45,117 | | | 343,806 | | | 5,134,100 | |
Advisory Services: | | | | | | | | | | |
Operational Support—Class A Shares | | | 107 | | | 9,618 | | | 162,490 | |
Operational Support—Class B Shares | | | — | | | 5 | | | 146 | |
Operational Support—Class C Shares | | | — | | | — | | | 120,772 | |
Operational Support—Class D Shares | | | 38,579 | | | 109,959 | | | 979,492 | |
Operational Support—Class Y Shares | | | 6,430 | | | 52,321 | | | 509,818 | |
Administration: | | | | | | | | | | |
Class A Shares | | | 42 | | | 7,482 | | | 63,589 | |
Class B Shares | | | — | | | 4 | | | 57 | |
Class C Shares | | | — | | | — | | | 47,271 | |
Class D Shares | | | 15,239 | | | 85,539 | | | 383,288 | |
Class I Shares | | | — | | | — | | | 1,315,195 | |
Class Y Shares | | | 2,535 | | | 40,684 | | | 199,337 | |
Distribution: | | | | | | | | | | |
Class B Shares | | | — | | | 80 | | | 1,093 | |
Class C Shares | | | — | | | — | | | 906,044 | |
Shareholder Servicing: | | | | | | | | | | |
Class A Shares | | | 429 | | | 76,945 | | | 650,234 | |
Class B Shares | | | — | | | 27 | | | 364 | |
Class C Shares | | | — | | | — | | | 301,932 | |
Class D Shares | | | 96,532 | | | 549,792 | | | 2,448,654 | |
Accounting | | | 35,836 | | | 39,800 | | | 42,329 | |
Compliance Services | | | 549 | | | 3,291 | | | 49,698 | |
Custodian | | | 4,025 | | | 21,536 | | | 197,155 | |
Printing | | | 861 | | | 10,683 | | | 122,869 | |
Professional | | | 4,094 | | | 16,417 | | | 234,774 | |
Transfer Agent | | | 16,637 | | | 18,514 | | | 67,225 | |
Trustee | | | 1,598 | | | 9,941 | | | 141,265 | |
Registration | | | 20,187 | | | 24,684 | | | 57,129 | |
Other | | | 1,916 | | | 11,880 | | | 196,814 | |
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 290,713 | | | 1,433,008 | | | 14,333,134 | |
Fees reduced by Investment Adviser | | | (89,812 | ) | | (83,518 | ) | | (171,896 | ) |
Fees reduced by Administrator | | | (1,086 | ) | | (205 | ) | | — | |
Fees reduced by Distributor | | | — | | | (80 | ) | | (903,652 | ) |
Fees reduced by Shareholder Servicing Agent | | | (90,072 | ) | | (620,361 | ) | | (3,371,205 | ) |
| |
|
| |
|
| |
|
| |
Net Expenses | | | 109,743 | | | 728,844 | | | 9,886,381 | |
| |
|
| |
|
| |
|
| |
Net Investment Income | | | 7,022 | | | 70,136 | | | 3,841,264 | |
| |
|
| |
|
| |
|
| |
Net realized gains/(losses) from investment transactions | | | 1,341 | | | 140 | | | 25,944 | |
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 8,363 | | $ | 70,276 | | $ | 3,867,208 | |
| |
|
| |
|
| |
|
| |
| | |
31 | 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, 2010 (Unaudited) (continued) |
| | | | | | | | | | |
| | Tax-Free
Money Market
Fund | | U.S.
Government
Money Market
Fund | | U.S. Treasury
Money Market
Fund | |
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | |
Interest | | $ | 216,935 | | $ | 12,863,384 | | $ | 3,034,601 | |
Dividends | | | 2,735 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
Total Investment Income | | | 219,670 | | | 12,863,384 | | | 3,034,601 | |
| |
|
| |
|
| |
|
| |
| | | | | | | | | | |
Expenses: | | | | | | | | | | |
Investment Management | | | 81,036 | | | 6,015,496 | | | 2,445,336 | |
Advisory Services: | | | | | | | | | | |
Operational Support—Class A Shares | | | — | | | 303,034 | | | 162,980 | |
Operational Support—Class B Shares | | | — | | | 52 | | | 28 | |
Operational Support—Class C Shares | | | — | | | 242 | | | 3,665 | |
Operational Support—Class D Shares | | | 40,943 | | | 348,186 | | | 456,618 | |
Operational Support—Class I Shares | | | 235 | | | — | | | — | |
Operational Support—Class Y Shares | | | 39,858 | | | 1,786,729 | | | 486,841 | |
Administration: | | | | | | | | | | |
Class A Shares | | | — | | | 118,370 | | | 63,277 | |
Class B Shares | | | — | | | 22 | | | 11 | |
Class C Shares | | | — | | | 95 | | | 1,425 | |
Class D Shares | | | 16,019 | | | 136,065 | | | 177,519 | |
Class I Shares | | | 93 | | | 1,396,686 | | | 518,322 | |
Class Y Shares | | | 15,616 | | | 699,860 | | | 188,959 | |
Distribution: | | | | | | | | | | |
Class B Shares | | | — | | | 392 | | | 214 | |
Class C Shares | | | — | | | 1,817 | | | 27,491 | |
Shareholder Servicing: | | | | | | | | | | |
Class A Shares | | | — | | | 1,212,144 | | | 651,928 | |
Class B Shares | | | — | | | 130 | | | 72 | |
Class C Shares | | | — | | | 606 | | | 9,164 | |
Class D Shares | | | 101,169 | | | 870,049 | | | 1,141,555 | |
Accounting | | | 40,942 | | | 36,443 | | | 33,803 | |
Compliance Services | | | 923 | | | 56,037 | | | 27,237 | |
Custodian | | | 6,564 | | | 229,952 | | | 132,800 | |
Printing | | | 1,141 | | | 65,310 | | | 20,912 | |
Professional | | | 5,561 | | | 247,044 | | | 117,441 | |
Transfer Agent | | | 18,430 | | | 63,930 | | | 36,091 | |
Trustee | | | 2,793 | | | 167,512 | | | 73,955 | |
Registration | | | 40,999 | | | 419,919 | | | 89,253 | |
Other | | | 3,157 | | | 207,491 | | | 106,318 | |
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 415,479 | | | 14,383,613 | | | 6,973,215 | |
Fees reduced by Investment Adviser | | | (162,680 | ) | | (1,519,923 | ) | | (2,096,522 | ) |
Fees reduced by Administrator | | | (15 | ) | | (103,174 | ) | | (254,819 | ) |
Fees reduced by Distributor | | | — | | | (2,209 | ) | | (27,705 | ) |
Fees reduced by Shareholder Servicing Agent | | | (74,387 | ) | | (2,082,929 | ) | | (1,802,718 | ) |
| |
|
| |
|
| |
|
| |
Net Expenses | | | 178,397 | | | 10,675,378 | | | 2,791,451 | |
| |
|
| |
|
| |
|
| |
Net Investment Income | | | 41,273 | | | 2,188,006 | | | 243,150 | |
| |
|
| |
|
| |
|
| |
Net realized gains/(losses) from investment transactions | | | 1,828 | | | (219,745 | ) | | 41,221 | |
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 43,101 | | $ | 1,968,261 | | $ | 284,371 | |
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 32 |
|
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 | | New York Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income | | $ | 7,022 | | $ | 122,215 | | $ | 70,136 | | $ | 2,953,560 | |
Net realized gains (losses) from investments transactions | | | 1,341 | | | (1 | ) | | 140 | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 8,363 | | | 122,214 | | | 70,276 | | | 2,953,560 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (14 | ) | | (259 | ) | | (2,530 | ) | | (81,076 | ) |
Class B Shares | | | — | | | — | | | (2 | ) | | (24 | ) |
Class C Shares | | | — | | | (4 | ) | | — | | | — | |
Class D Shares | | | (5,382 | ) | | (84,480 | ) | | (28,467 | ) | | (1,436,276 | ) |
Class Y Shares | | | (1,653 | ) | | (37,436 | ) | | (21,666 | ) | | (1,456,061 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | — | | | (383 | ) |
Class D Shares | | | — | | | — | | | — | | | (4,864 | ) |
Class Y Shares | | | — | | | — | | | — | | | (2,970 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (7,049 | ) | | (122,179 | ) | | (52,665 | ) | | (2,981,654 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (88,250,866 | ) | | 26,601,526 | | | (112,610,338 | ) | | (277,897,541 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (88,249,552 | ) | | 26,601,561 | | | (112,592,727 | ) | | (277,925,635 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 136,467,604 | | | 109,866,043 | | | 674,487,226 | | | 952,412,861 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 48,218,052 | | $ | 136,467,604 | | $ | 561,894,499 | | $ | 674,487,226 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 9 | | $ | 36 | | $ | 4,068 | | $ | (13,403 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
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. |
| | | | | | | | | | | | | |
| | California Tax-Free
Money Market Fund | | New York Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 23,640 | | $ | 335,984 | | $ | 66,918,103 | | $ | 114,978,329 | |
Dividends reinvested | | | 14 | | | 259 | | | 2,466 | | | 80,082 | |
Value of shares redeemed | | | (30,200 | ) | | (557,023 | ) | | (63,714,901 | ) | | (120,149,734 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (6,546 | ) | | (220,780 | ) | | 3,205,668 | | | (5,091,323 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Dividends reinvested | | | — | | | — | | | 2 | | | 24 | |
Value of shares redeemed | | | — | | | — | | | (13 | ) | | (13,219 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | — | | | — | | | (11 | ) | | (13,195 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | 27,562 | | | — | | | — | |
Dividends reinvested | | | — | | | 4 | | | — | | | — | |
Value of shares redeemed | | | — | | | (27,566 | ) | | — | | | (1 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | — | | | — | | | — | | | (1 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 164,309,529 | | | 301,424,257 | | | 733,681,494 | | | 1,091,358,577 | |
Dividends reinvested | | | 1,046 | | | 37,909 | | | 19,578 | | | 1,144,944 | |
Value of shares redeemed | | | (235,664,815 | ) | | (269,564,034 | ) | | (783,746,953 | ) | | (1,256,216,848 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | (71,354,240 | ) | | 31,898,132 | | | (50,045,881 | ) | | (163,713,327 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 38,292,579 | | | 169,462,249 | | | 613,024,401 | | | 1,093,831,944 | |
Dividends reinvested | | | 576 | | | 5,257 | | | 17,257 | | | 1,158,964 | |
Value of shares redeemed | | | (55,183,235 | ) | | (174,543,332 | ) | | (678,811,772 | ) | | (1,204,070,603 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares capital transactions | | | (16,890,080 | ) | | (5,075,826 | ) | | (65,770,114 | ) | | (109,079,695 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (88,250,866 | ) | $ | 26,601,526 | | $ | (112,610,338 | ) | $ | (277,897,541 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | |
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. |
| | | | | | | | | | | | | |
| | Prime
Money Market Fund | | Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income | | $ | 3,841,264 | | $ | 57,327,100 | | $ | 41,273 | | $ | 1,035,726 | |
Net realized gains (losses) from investment transactions | | | 25,944 | | | 3,584,834 | | | 1,828 | | | 2 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 3,867,208 | | | 60,911,934 | | | 43,101 | | | 1,035,728 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (21,558 | ) | | (1,016,162 | ) | | — | | | — | |
Class B Shares | | | (19 | ) | | (503 | ) | | — | | | — | |
Class C Shares | | | (16,033 | ) | | (518,642 | ) | | — | | | — | |
Class D Shares | | | (130,555 | ) | | (10,530,148 | ) | | (5,582 | ) | | (276,495 | ) |
Class I Shares | | | (3,551,947 | ) | | (36,107,949 | ) | | (217 | ) | | — | |
Class Y Shares | | | (86,056 | ) | | (9,188,251 | ) | | (35,524 | ) | | (759,183 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class D Shares | | | — | | | — | | | — | | | (278 | ) |
Class Y Shares | | | — | | | — | | | — | | | (438 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (3,806,168 | ) | | (57,361,655 | ) | | (41,323 | ) | | (1,036,394 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | (2,368,320,792 | ) | | 2,440,883,353 | | | (94,656,489 | ) | | (20,377,067 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (2,368,259,752 | ) | | 2,444,433,632 | | | (94,654,711 | ) | | (20,377,733 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 10,981,682,445 | | | 8,537,248,813 | | | 193,139,288 | | | 213,517,021 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 8,613,422,693 | | $ | 10,981,682,445 | | $ | 98,484,577 | | $ | 193,139,288 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 2 | | $ | (35,094 | ) | $ | — | | $ | 50 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
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. |
| | | | | | | | | | | | | |
| | Prime
Money Market Fund | | Tax-Free
Money Market Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 405,175,644 | | $ | 809,840,157 | | $ | — | | $ | 255 | |
Dividends reinvested | | | 18,363 | | | 883,282 | | | — | | | — | |
Value of shares redeemed | | | (429,437,628 | ) | | (776,080,491 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | (24,243,621 | ) | | 34,642,948 | | | — | | | 255 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | — | | | 278,962 | | | — | | | — | |
Dividends reinvested | | | 17 | | | 418 | | | — | | | — | |
Value of shares redeemed | | | (65,129 | ) | | (165,781 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | (65,112 | ) | | 113,599 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 308,485,253 | | | 770,195,894 | | | — | | | — | |
Dividends reinvested | | | 16,033 | | | 518,642 | | | — | | | — | |
Value of shares redeemed | | | (348,109,691 | ) | | (828,248,859 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (39,608,405 | ) | | (57,534,323 | ) | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 4,332,508,040 | | | 7,709,199,164 | | | 92,379,868 | | | 275,263,759 | |
Dividends reinvested | | | 98,156 | | | 7,863,842 | | | 1,056 | | | 76,274 | |
Value of shares redeemed | | | (4,659,618,627 | ) | | (8,444,300,576 | ) | | (121,296,482 | ) | | (249,776,390 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | (327,012,431 | ) | | (727,237,570 | ) | | (28,915,558 | ) | | 25,563,643 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 23,479,655,145 | | | 58,493,552,982 | | | 2,283,761 | | | — | |
Dividends reinvested | | | 1,826,621 | | | 20,360,616 | | | 213 | | | — | |
Value of shares redeemed | | | (25,123,224,657 | ) | | (54,280,103,881 | ) | | (2,283,974 | ) | | — | |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | (1,641,742,891 | ) | | 4,233,809,717 | | | — | | | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 1,980,027,828 | | | 5,861,067,626 | | | 158,635,360 | | | 306,605,386 | |
Dividends reinvested | | | 78,748 | | | 6,952,852 | | | 25,220 | | | 395,490 | |
Value of shares redeemed | | | (2,315,754,908 | ) | | (6,910,931,496 | ) | | (224,401,511 | ) | | (352,941,841 | ) |
| |
|
| |
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| |
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| |
|
| |
Class Y Shares capital transactions | | | (335,648,332 | ) | | (1,042,911,018 | ) | | (65,740,931 | ) | | (45,940,965 | ) |
| |
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| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (2,368,320,792 | ) | $ | 2,440,883,353 | | $ | (94,656,489 | ) | $ | (20,377,067 | ) |
| |
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| |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 36 |
|
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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income | | $ | 2,188,006 | | $ | 44,639,755 | | $ | 243,150 | | $ | 7,282,425 | |
Net realized gains (losses) from investment transactions | | | (219,745 | ) | | 1,358,500 | | | 41,221 | | | 240,063 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 1,968,261 | | | 45,998,255 | | | 284,371 | | | 7,522,488 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (31,343 | ) | | (875,403 | ) | | (16,270 | ) | | (304,735 | ) |
Class B Shares | | | (5 | ) | | (55 | ) | | (3 | ) | | (84 | ) |
Class C Shares | | | (25 | ) | | (131 | ) | | (364 | ) | | (2,223 | ) |
Class D Shares | | | (36,163 | ) | | (2,261,113 | ) | | (45,823 | ) | | (689,245 | ) |
Class I Shares | | | (1,936,681 | ) | | (27,006,162 | ) | | (136,322 | ) | | (5,451,587 | ) |
Class Y Shares | | | (185,632 | ) | | (14,492,834 | ) | | (48,616 | ) | | (829,704 | ) |
Net realized gains: | | | | | | | | | | | | | |
Class A Shares | | | (38,910 | ) | | (43,041 | ) | | — | | | (20,098 | ) |
Class B Shares | | | (7 | ) | | (6 | ) | | — | | | (7 | ) |
Class C Shares | | | (31 | ) | | (13 | ) | | — | | | (173 | ) |
Class D Shares | | | (44,107 | ) | | (70,176 | ) | | — | | | (53,316 | ) |
Class I Shares | | | (438,433 | ) | | (429,417 | ) | | — | | | (166,785 | ) |
Class Y Shares | | | (241,819 | ) | | (307,699 | ) | | — | | | (41,513 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (2,953,156 | ) | | (45,486,050 | ) | | (247,398 | ) | | (7,559,470 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | | (1,501,993,660 | ) | | (909,500,912 | ) | | (2,065,522,154 | ) | | (987,019,574 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | (1,502,978,555 | ) | | (908,988,707 | ) | | (2,065,485,181 | ) | | (987,056,556 | ) |
| |
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| |
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| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 12,889,720,942 | | | 13,798,709,649 | | | 5,668,114,055 | | | 6,655,170,611 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 11,386,742,387 | | $ | 12,889,720,942 | | $ | 3,602,628,874 | | $ | 5,668,114,055 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 2,213 | | $ | 4,056 | | $ | (3 | ) | $ | 4,245 | |
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| | |
37 | 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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
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|
|
|
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|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,051,837,748 | | $ | 2,080,944,837 | | $ | 331,983,228 | | $ | 1,023,071,534 | |
Dividends reinvested | | | 68,908 | | | 913,749 | | | 16,236 | | | 322,146 | |
Value of shares redeemed | | | (986,966,078 | ) | | (2,211,025,475 | ) | | (434,280,713 | ) | | (1,217,854,944 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 64,940,578 | | | (129,166,889 | ) | | (102,281,249 | ) | | (194,461,264 | ) |
| |
|
| |
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| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 57,962 | | | 38,074 | | | — | | | 53,702 | |
Dividends reinvested | | | 12 | | | 61 | | | 3 | | | 90 | |
Value of shares redeemed | | | (53,915 | ) | | (8,130 | ) | | (4,808 | ) | | (125,494 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 4,059 | | | 30,005 | | | (4,805 | ) | | (71,702 | ) |
| |
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| |
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| |
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| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 2,074,949 | | | 5,857,186 | | | 10,668,384 | | | 17,236,521 | |
Dividends reinvested | | | 56 | | | 144 | | | 364 | | | 2,396 | |
Value of shares redeemed | | | (2,124,975 | ) | | (5,728,598 | ) | | (12,537,010 | ) | | (11,203,400 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | (49,970 | ) | | 128,732 | | | (1,868,262 | ) | | 6,035,517 | |
| |
|
| |
|
| |
|
| |
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| |
| | | | | | | | | | | | | |
Class D Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 988,391,390 | | | 4,052,413,546 | | | 1,692,513,937 | | | 2,696,084,524 | |
Dividends reinvested | | | 45,463 | | | 837,509 | | | 29,530 | | | 450,754 | |
Value of shares redeemed | | | (1,093,501,914 | ) | | (4,724,014,727 | ) | | (1,910,049,360 | ) | | (2,678,774,334 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class D Shares capital transactions | | | (105,065,061 | ) | | (670,763,672 | ) | | (217,505,893 | ) | | 17,760,944 | |
| |
|
| |
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| |
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| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 19,961,964,616 | | | 41,618,275,191 | | | 6,066,555,800 | | | 14,180,222,732 | |
Dividends reinvested | | | 1,507,751 | | | 20,612,947 | | | 75,692 | | | 3,671,466 | |
Value of shares redeemed | | | (21,533,176,493 | ) | | (38,370,813,811 | ) | | (7,852,143,567 | ) | | (14,632,179,986 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class I Shares capital transactions | | | (1,569,704,126 | ) | | 3,268,074,327 | | | (1,785,512,075 | ) | | (448,285,788 | ) |
| |
|
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| | | | | | | | | | | | | |
Class Y Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 18,069,017,668 | | | 29,490,401,988 | | | 2,080,556,996 | | | 4,032,151,030 | |
Dividends reinvested | | | 414,018 | | | 14,679,200 | | | 46,539 | | | 813,514 | |
Value of shares redeemed | | | (17,961,550,826 | ) | | (32,882,884,603 | ) | | (2,038,953,405 | ) | | (4,400,961,825 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class Y Shares capital transactions | | | 107,880,860 | | | (3,377,803,415 | ) | | 41,650,130 | | | (367,997,281 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | $ | (1,501,993,660 | ) | $ | (909,500,912 | ) | $ | (2,065,522,154 | ) | $ | (987,019,574 | ) |
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| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 38 |
|
HSBC INVESTOR CALIFORNIA TAX-FREE 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 | | Net Realized
and Unrealized
Gains (Losses)
from
Investment
Transactions | | 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 | | | — | * | | — | | | — | * | | — | * | | — | * | $ | 1.00 | |
Year Ended October 31, 2008 (i) | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 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 | |
Year Ended October 31, 2008 (f) | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2009 (j) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited)(l) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 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 (Loss)
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 | % |
Year Ended October 31, 2008 (i) | | | 1.48 | % | | 442 | | | 0.67 | % | | 1.49 | % | | 0.82 | % |
Year Ended October 31, 2009 | | | 0.08 | %(k) | | 221 | | | 0.47 | %(k) | | 0.08 | %(k) | | 0.88 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 215 | | | 0.25 | % | | 0.01 | % | | 0.85 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007 (e) | | | 1.08 | % | $ | 1,018 | | | 1.22 | % | | 2.41 | % | | 1.37 | % |
Year Ended October 31, 2008 (f) | | | 0.65 | % | | — | | | 1.21 | % | | 1.62 | % | | 1.36 | % |
Year Ended October 31, 2009 (j) | | | 0.02 | %(k) | | — | | | 0.90 | %(k) | | 0.08 | %(k) | | 1.05 | %(k) |
Six Months Ended April 30, 2010 (Unaudited)(l) | | | — | | | — | | | — | | | — | | | — | |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 1.64 | %(g) | $ | 132,649 | | | 0.50 | %(g) | | 1.64 | %(g) | | 0.65 | % |
Year Ended October 31, 2006 | | | 2.73 | % | | 86,686 | | | 0.57 | % | | 2.66 | % | | 0.72 | % |
Year Ended October 31, 2007 | | | 3.09 | %(h) | | 90,843 | | | 0.50 | %(h) | | 3.08 | %(h) | | 0.66 | % |
Year Ended October 31, 2008 | | | 1.90 | % | | 83,261 | | | 0.47 | % | | 1.76 | % | | 0.62 | % |
Year Ended October 31, 2009 | | | 0.10 | %(k) | | 115,160 | | | 0.42 | %(k) | | 0.10 | %(k) | | 0.70 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 43,806 | | | 0.25 | % | | 0.01 | % | | 0.68 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 1.89 | %(g) | $ | 43,722 | | | 0.25 | %(g) | | 2.04 | %(g) | | 0.40 | % |
Year Ended October 31, 2006 | | | 2.98 | % | | 43,114 | | | 0.31 | % | | 2.95 | % | | 0.46 | % |
Year Ended October 31, 2007 | | | 3.35 | %(h) | | 32,205 | | | 0.24 | %(h) | | 3.32 | %(h) | | 0.40 | % |
Year Ended October 31, 2008 | | | 2.16 | % | | 26,163 | | | 0.20 | % | | 2.03 | % | | 0.35 | % |
Year Ended October 31, 2009 | | | 0.22 | %(k) | | 21,087 | | | 0.31 | %(k) | | 0.25 | %(k) | | 0.46 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 4,197 | | | 0.23 | % | | 0.03 | % | | 0.45 | % |
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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 each 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 were 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. The net asset value, end of period, presented is as of the last day the class had shareholders during the period. |
| |
(e) | Class C Shares commenced operations on May 7, 2007. |
| |
(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 152 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
| |
(g) | 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. |
| |
(h) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
| |
(i) | Class A Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 332 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
| |
(j) | 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 28 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
| |
(k) | Included in the expense ratios is the Treasury Guarantee Program fees incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have decreased by 0.05% and the total return and net investment income ratio would have increased by 0.05%. |
| |
(l) | During the period, class had no operations. The net asset values reflected represent the last day the class had shareholders. |
| | |
39 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET 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
(Losses)
from
Investments | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | — | | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | $ | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 1.00 | |
Year Ended October 31, 2006 (f) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2007 (f) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2008 (f) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2009 (f) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited)(f) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 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, 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 | % |
Year Ended October 31, 2008 | | | 1.94 | % | | 45,791 | | | 0.63 | % | | 2.09 | % | | 0.63 | % |
Year Ended October 31, 2009 | | | 0.18 | %(g) | | 40,698 | | | 0.49 | %(g) | | 0.21 | %(g) | | 0.67 | %(g) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 43,905 | | | 0.22 | % | | 0.02 | % | | 0.63 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 1.33 | % | | 35 | | | 1.23 | % | | 1.30 | % | | 1.23 | % |
Year Ended October 31, 2009 | | | 0.08 | %(g) | | 21 | | | 0.65 | %(g) | | 0.08 | %(g) | | 1.27 | %(g) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 21 | | | 0.21 | % | | 0.03 | % | | 1.24 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | | — | % | | | ** | | — | % | | — | % | | — | % |
Year Ended October 31, 2006 (f) | | | — | % | | | ** | | — | % | | — | % | | — | % |
Year Ended October 31, 2007 (f) | | | — | % | | | ** | | — | % | | — | % | | — | % |
Year Ended October 31, 2008 (f) | | | — | % | | | ** | | — | % | | — | % | | — | % |
Year Ended October 31, 2009 (f) | | | — | % | | — | | | — | % | | — | % | | — | % |
Six Months Ended April 30, 2010 (Unaudited)(f) | | | — | % | | — | | | — | % | | — | % | | — | % |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.09 | % | | 586,791 | | | 0.48 | % | | 1.99 | % | | 0.48 | % |
Year Ended October 31, 2009 | | | 0.25 | %(g) | | 423,061 | | | 0.43 | %(g) | | 0.26 | %(g) | | 0.52 | %(g) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 373,027 | | | 0.21 | % | | 0.02 | % | | 0.48 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.35 | % | | 319,797 | | | 0.23 | % | | 2.27 | % | | 0.23 | % |
Year Ended October 31, 2009 | | | 0.40 | %(g) | | 210,706 | | | 0.26 | %(g) | | 0.39 | %(g) | | 0.27 | %(g) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 144,942 | | | 0.21 | % | | 0.03 | % | | 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 each 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. |
| |
(e) | During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
| |
(f) | During the period ended, Class C Shares had no operations. Net assets at the end of the period represent seed money. The net asset values reflected represent the last day the class had shareholders. |
| |
(g) | Included in the expense ratios is the Treasury Guarantee Program fees incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have decreased by 0.04% and the total return and net investment income ratio would have increased by 0.04%. |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 40 |
|
HSBC INVESTOR PRIME 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 | | Net Realized
Gains (Losses)
from
Investment
Transactions | | 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, 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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | * | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | * | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | * | | 0.02 | | | (0.02 | ) | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | * | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | * | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | 0.01 | | | — | * | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | * | | 0.03 | | | (0.03 | ) | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | 0.01 | | | — | * | | 0.01 | | | (0.01 | ) | | (0.01 | ) | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | 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 (Loss)
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, 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 | % |
Year Ended October 31, 2008 | | | 2.71 | %(e) | | 308,499 | | | 0.67 | % | | 2.73 | % | | 0.67 | % |
Year Ended October 31, 2009 | | | 0.32 | %(f) | | 343,265 | | | 0.55 | %(f) | | 0.31 | %(f) | | 0.69 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 319,024 | | | 0.25 | % | | 0.01 | % | | 0.66 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.10 | %(e) | | 199 | | | 1.27 | % | | 2.08 | % | | 1.27 | % |
Year Ended October 31, 2009 | | | 0.17 | %(f) | | 312 | | | 0.68 | %(f) | | 0.13 | %(f) | | 1.30 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 247 | | | 0.25 | % | | 0.01 | % | | 1.26 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.10 | %(e) | | 316,779 | | | 1.27 | % | | 2.04 | % | | 1.27 | % |
Year Ended October 31, 2009 | | | 0.17 | %(f) | | 259,364 | | | 0.74 | %(f) | | 0.19 | %(f) | | 1.29 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 219,757 | | | 0.25 | % | | 0.01 | % | | 1.26 | % |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.86 | %(e) | | 2,720,592 | | | 0.52 | % | | 2.89 | % | | 0.52 | % |
Year Ended October 31, 2009 | | | 0.40 | %(f) | | 1,994,448 | | | 0.49 | %(f) | | 0.42 | %(f) | | 0.54 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 1,667,447 | | | 0.25 | % | | 0.01 | % | | 0.51 | % |
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CLASS I SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 3.23 | %(e) | | 2,954,253 | | | 0.16 | % | | 3.14 | % | | 0.17 | % |
Year Ended October 31, 2009 | | | 0.69 | %(f) | | 7,189,613 | | | 0.18 | %(f) | | 0.55 | %(f) | | 0.19 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.05 | % | | 5,547,910 | | | 0.16 | % | | 0.11 | % | | 0.16 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 3.12 | %(e) | | 2,236,927 | | | 0.27 | % | | 2.96 | % | | 0.27 | % |
Year Ended October 31, 2009 | | | 0.58 | %(f) | | 1,194,680 | | | 0.29 | %(f) | | 0.68 | %(f) | | 0.29 | %(f) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 859,038 | | | 0.25 | % | | 0.02 | % | | 0.26 | % |
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* | Less than $0.005 per share. |
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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 each 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, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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. |
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(e) | During the year ended October 31, 2008, an affiliate of the Fund’s investment adviser purchased certain defaulted securities at $16,746,382, in excess of their fair value on the purchase date. The corresponding impact of this excess amount to the total returns were 0.20%, 0.20%, 0.20%, 0.20%, 0.20% and 0.20% for Class A Shares, Class B Shares, Class C Shares, Class D Shares, Class I Shares and Class Y Shares, respectively. |
| |
(f) | Included in the expense ratios is the Treasury Guarantee Program fees incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been decreased by 0.03% and the total return and net investment income ratio would have increased by 0.03%. |
| | |
41 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
HSBC INVESTOR TAX-FREE MONEY MARKET 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
Investments | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (d) | | $ | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | $ | 1.00 | |
Year Ended October 31, 2006 (e) | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | — | | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2007 (f) | | | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | | | — | * | | 1.00 | |
Year Ended October 31, 2008 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2009 (g) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007 (h) | | $ | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | | | — | * | $ | 1.00 | |
Year Ended October 31, 2008 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2009 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited)(j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (i) | | $ | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | | | — | * | $ | 1.00 | |
Year Ended October 31, 2006 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2007 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Year Ended October 31, 2008 (j) | | | 1.00 | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited)(i) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | 0.01 | | | — | * | | 0.01 | | | (0.01 | )* | | — | * | | (0.01 | ) | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 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, 2005 (d) | | | — | | $ | | ** | | — | | | — | | | — | |
Year Ended October 31, 2006 (e) | | | 0.56 | % | | 1 | | | 1.06 | % | | 3.35 | % | | 1.49 | % |
Year Ended October 31, 2007 (f) | | | 0.18 | % | | — | | | 0.72 | % | | 2.96 | % | | 0.92 | % |
Year Ended October 31, 2008 (j) | | | — | | | — | | | — | | | — | | | — | |
Year Ended October 31, 2009 (g) | | | 0.01 | %(k) | | | ** | | 0.78 | %(k) | | 0.01 | %(k) | | 0.98 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | | ** | | 0.18 | % | | 0.21 | % | | 0.38 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2007 (h) | | | 0.09 | % | $ | — | | | 1.34 | % | | 2.24 | % | | 1.54 | % |
Year Ended October 31, 2008 (j) | | | — | | | — | | | — | | | — | | | — | |
Year Ended October 31, 2009 (j) | | | — | | | — | | | — | | | — | | | — | |
Six Months Ended April 30, 2010 (Unaudited)(j) | | | — | | | — | | | — | | | — | | | — | |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.13 | % | | 69,787 | | | 0.46 | % | | 2.05 | % | | 0.66 | % |
Year Ended October 31, 2009 | | | 0.31 | %(k) | | 95,350 | | | 0.43 | %(k) | | 0.29 | %(k) | | 0.63 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 66,436 | | | 0.26 | % | | 0.02 | % | | 0.64 | % |
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CLASS I SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (i) | | | 0.15 | % | $ | | ** | | 0.33 | % | | 2.11 | % | | 0.74 | % |
Year Ended October 31, 2006 (j) | | | — | | | — | | | — | | | — | | | — | |
Year Ended October 31, 2007 (j) | | | — | | | — | | | — | | | — | | | — | |
Year Ended October 31, 2008 (j) | | | — | | | — | | | — | | | — | | | — | |
Six Months Ended April 30, 2010 (Unaudited)(i) | | | 0.01 | % | | — | | | 0.16 | % | | 0.09 | % | | 0.37 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
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 | % |
Year Ended October 31, 2008 | | | 2.38 | % | | 143,730 | | | 0.20 | % | | 2.31 | % | | 0.40 | % |
Year Ended October 31, 2009 | | | 0.55 | %(k) | | 97,789 | | | 0.18 | %(k) | | 0.57 | %(k) | | 0.38 | %(k) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.04 | % | | 32,049 | | | 0.18 | % | | 0.09 | % | | 0.38 | % |
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* | Less than $0.005 per share. |
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** | 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 each 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 period, Class A Shares had no operations. Net Assets at the end of the year represent seed money. |
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(e) | Class A 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 78 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
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(f) | Class A 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 24 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
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(g) | Class A Shares were operational during a portion of the year only. Amounts reflect performance for the period of time the class had operations, which was 262 days during the period. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
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(h) | Class C Shares commenced operations on July 30, 2007 and were 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. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
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(i) | 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 and 51 days during 2005 and 2010, respectively. The net asset value, end of period, presented is as of the last day during the period the class had shareholders. |
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(j) | During the period, Class I Shares had no operations. The net asset values reflected represent the last day the class had shareholders. |
| |
(k) | Included in the expense ratios is the Treasury Guarantee Program fees incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been decreased by 0.03% and the total return and net investment income ratio would have increased by 0.03%. |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 42 |
|
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 | | Net Realized
and Unrealized
Gains (Losses)
from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net Realized
Gains from
Investments | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007 (e) | | $ | 1.00 | | | 0.04 | | | — | | | 0.04 | | | (0.04 | ) | | — | | | (0.04 | ) | $ | 1.00 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | $ | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | — | | | (0.01 | ) | $ | 1.00 | |
Year Ended October 31, 2006 (g) | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2007 (h) | | | 1.00 | | | 0.05 | | | — | | | 0.05 | | | (0.05 | ) | | — | | | (0.05 | ) | | 1.00 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | | | 0.03 | | | (0.03 | ) | | — | | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.03 | | | — | | | 0.03 | | | (0.03 | ) | | — | | | (0.03 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 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, 2005 | | | 2.09 | % | $ | 725,469 | | | 0.73 | % | | 2.08 | % | | 0.74 | % |
Year Ended October 31, 2006 | | | 4.16 | % | | 1,287,045 | | | 0.72 | % | | 4.13 | % | | 0.73 | % |
Year Ended October 31, 2007 | | | 4.63 | %(d) | | 1,090,807 | | | 0.65 | %(d) | | 4.56 | %(d) | | 0.70 | % |
Year Ended October 31, 2008 | | | 2.20 | % | | 703,712 | | | 0.67 | % | | 2.29 | % | | 0.67 | % |
Year Ended October 31, 2009 | | | 0.14 | %(i) | | 574,577 | | | 0.52 | %(i) | | 0.14 | %(i) | | 0.72 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 639,469 | | | 0.20 | % | | 0.01 | % | | 0.66 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 1.72 | % | $ | 1 | | | 1.32 | % | | 1.10 | % | | 1.32 | % |
Year Ended October 31, 2006 | | | 4.29 | % | | 1 | | | 1.31 | % | | 3.95 | % | | 1.32 | % |
Year Ended October 31, 2007 | | | 4.76 | %(d) | | 1 | | | 1.25 | %(d) | | 4.01 | %(d) | | 1.28 | % |
Year Ended October 31, 2008 | | | 1.67 | % | | 54 | | | 1.29 | % | | 1.24 | % | | 1.29 | % |
Year Ended October 31, 2009 | | | 0.08 | %(i) | | 84 | | | 0.54 | %(i) | | 0.08 | %(i) | | 1.30 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 88 | | | 0.20 | % | | 0.01 | % | | 1.26 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Period Ended October 31, 2007 (e) | | | 3.79 | %(d) | $ | 428 | | | 1.20 | %(d) | | 3.78 | %(d) | | 1.25 | % |
Year Ended October 31, 2008 | | | 1.59 | % | | 101 | | | 1.27 | % | | 1.28 | % | | 1.27 | % |
Year Ended October 31, 2009 | | | 0.08 | %(i) | | 229 | | | 0.50 | %(i) | | 0.04 | %(i) | | 1.32 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 179 | | | 0.20 | % | | 0.01 | % | | 1.26 | % |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 2.24 | % | $ | 525,937 | | | 0.58 | % | | 2.21 | % | | 0.59 | % |
Year Ended October 31, 2006 | | | 4.32 | % | | 967,456 | | | 0.57 | % | | 4.27 | % | | 0.58 | % |
Year Ended October 31, 2007 | | | 4.79 | %(d) | | 761,155 | | | 0.50 | %(d) | | 4.66 | %(d) | | 0.54 | % |
Year Ended October 31, 2008 | | | 2.36 | % | | 1,438,199 | | | 0.52 | % | | 1.92 | % | | 0.52 | % |
Year Ended October 31, 2009 | | | 0.18 | %(i) | | 767,551 | | | 0.48 | %(i) | | 0.21 | %(i) | | 0.58 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 662,431 | | | 0.20 | % | | 0.01 | % | | 0.51 | % |
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CLASS I SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | | 0.73 | % | | | ** | | 0.20 | % | | 3.08 | % | | 0.24 | % |
Year Ended October 31, 2006 (g) | | | 1.80 | % | $ | 23,002 | | | 0.17 | % | | 5.08 | % | | 0.23 | % |
Year Ended October 31, 2007 (h) | | | 4.99 | %(d) | | 949,095 | | | 0.15 | %(d) | | 4.73 | %(d) | | 0.17 | % |
Year Ended October 31, 2008 | | | 2.72 | % | | 4,908,887 | | | 0.17 | % | | 2.23 | % | | 0.18 | % |
Year Ended October 31, 2009 | | | 0.43 | %(i) | | 8,176,980 | | | 0.22 | %(i) | | 0.38 | %(i) | | 0.22 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.03 | % | | 6,606,683 | | | 0.16 | % | | 0.05 | % | | 0.16 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 2.50 | % | $ | 465,996 | | | 0.34 | % | | 2.49 | % | | 0.34 | % |
Year Ended October 31, 2006 | | | 4.58 | % | | 517,089 | | | 0.32 | % | | 4.49 | % | | 0.33 | % |
Year Ended October 31, 2007 | | | 5.05 | %(d) | | 6,267,594 | | | 0.26 | %(d) | | 4.78 | %(d) | | 0.28 | % |
Year Ended October 31, 2008 | | | 2.61 | % | | 6,747,758 | | | 0.27 | % | | 2.53 | % | | 0.27 | % |
Year Ended October 31, 2009 | | | 0.32 | %(i) | | 3,370,299 | | | 0.33 | %(i) | | 0.38 | %(i) | | 0.33 | %(i) |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 3,477,893 | | | 0.20 | % | | 0.01 | % | | 0.26 | % |
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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. |
| |
(b) | Annualized for periods less than one year. |
| |
(c) | During each 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 (including the Fund) 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 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. |
| |
(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 136 days during the period. |
| |
(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 357 days during the period. |
| |
(i) | Included in the expense ratios is the Treasury Guarantee Program fees incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been decreased by 0.06% and the total return and net investment income ratio would have increased by 0.06%. |
| | |
43 | 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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| | Net Asset
Value,
Beginning
of Period | | Net
Investment
Income | | Net Realized
Gains (Losses)
from
Investment
Transactions | | Total from
Investment
Activities | | Net
Investment
Income | | Net Realized
Gains from
Investments | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | — | | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | 0.04 | | | — | | | 0.04 | | | (0.04 | ) | | — | | | (0.04 | ) | | 1.00 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.01 | | | — | | | 0.01 | | | (0.01 | ) | | — | | | (0.01 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2008 (e) | | $ | 1.00 | | | — | * | | — | | | — | * | | — | * | | — | | | — | * | $ | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS D SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS I SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | $ | 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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 1.00 | |
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CLASS Y SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
Year Ended October 31, 2008 | | | 1.00 | | | 0.02 | | | — | | | 0.02 | | | (0.02 | ) | | — | | | (0.02 | ) | | 1.00 | |
Year Ended October 31, 2009 | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | * | | — | * | | 1.00 | |
Six Months Ended April 30, 2010 (Unaudited) | | | 1.00 | | | — | * | | — | * | | — | * | | — | * | | — | | | — | * | | 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, 2005 | | | 1.89 | % | $ | 56,307 | | | 0.76 | % | | 1.84 | % | | 0.76 | % |
Year Ended October 31, 2006 | | | 3.74 | % | | 67,861 | | | 0.74 | % | | 3.75 | % | | 0.77 | % |
Year Ended October 31, 2007 | | | 4.19 | %(d) | | 84,355 | | | 0.68 | %(d) | | 4.09 | %(d) | | 0.74 | % |
Year Ended October 31, 2008 | | | 1.38 | % | | 580,458 | | | 0.67 | % | | 1.06 | % | | 0.67 | % |
Year Ended October 31, 2009 | | | 0.07 | % | | 385,994 | | | 0.24 | % | | 0.07 | % | | 0.66 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 283,715 | | | 0.12 | % | | 0.01 | % | | 0.67 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 1.29 | % | $ | 39 | | | 1.36 | % | | 1.28 | % | | 1.36 | % |
Year Ended October 31, 2006 | | | 3.12 | % | | 40 | | | 1.35 | % | | 3.09 | % | | 1.38 | % |
Year Ended October 31, 2007 | | | 3.57 | %(d) | | 41 | | | 1.28 | %(d) | | 3.51 | %(d) | | 1.35 | % |
Year Ended October 31, 2008 | | | 0.86 | % | | 131 | | | 1.11 | % | | 1.01 | % | | 1.28 | % |
Year Ended October 31, 2009 | | | 0.07 | % | | 60 | | | 0.24 | % | | 0.07 | % | | 1.26 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 55 | | | 0.12 | % | | 0.01 | % | | 1.27 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2008 (e) | | | 0.01 | % | $ | 1,103 | | | 0.64 | % | | 0.20 | % | | 1.26 | % |
Year Ended October 31, 2009 | | | 0.07 | % | | 7,138 | | | 0.22 | % | | 0.04 | % | | 1.26 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 5,270 | | | 0.12 | % | | 0.01 | % | | 1.27 | % |
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CLASS D SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 2.04 | % | $ | 293,480 | | | 0.62 | % | | 2.08 | % | | 0.62 | % |
Year Ended October 31, 2006 | | | 3.90 | % | | 302,637 | | | 0.60 | % | | 3.85 | % | | 0.62 | % |
Year Ended October 31, 2007 | | | 4.34 | %(d) | | 297,120 | | | 0.53 | %(d) | | 4.28 | %(d) | | 0.59 | % |
Year Ended October 31, 2008 | | | 1.53 | % | | 937,905 | | | 0.52 | % | | 1.33 | % | | 0.52 | % |
Year Ended October 31, 2009 | | | 0.07 | % | | 955,652 | | | 0.23 | % | | 0.06 | % | | 0.51 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 738,153 | | | 0.11 | % | | 0.01 | % | | 0.52 | % |
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CLASS I SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 (f) | | | 2.02 | % | $ | 30,518 | | | 0.20 | % | | 2.62 | % | | 0.26 | % |
Year Ended October 31, 2006 | | | 4.37 | % | | 6,521 | | | 0.19 | % | | 4.12 | % | | 0.27 | % |
Year Ended October 31, 2007 | | | 4.74 | %(d) | | 73,460 | | | 0.15 | %(d) | | 4.38 | %(d) | | 0.22 | % |
Year Ended October 31, 2008 | | | 1.90 | % | | 3,771,262 | | | 0.16 | % | | 1.26 | % | | 0.16 | % |
Year Ended October 31, 2009 | | | 0.14 | % | | 3,322,962 | | | 0.16 | % | | 0.14 | % | | 0.16 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.01 | % | | 1,537,469 | | | 0.11 | % | | 0.01 | % | | 0.16 | % |
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CLASS Y SHARES | | | | | | | | | | | | | | | | |
Year Ended October 31, 2005 | | | 2.30 | % | $ | 47,804 | | | 0.36 | % | | 2.13 | % | | 0.36 | % |
Year Ended October 31, 2006 | | | 4.16 | % | | 42,934 | | | 0.35 | % | | 4.07 | % | | 0.37 | % |
Year Ended October 31, 2007 | | | 4.60 | %(d) | | 41,256 | | | 0.27 | %(d) | | 4.34 | %(d) | | 0.32 | % |
Year Ended October 31, 2008 | | | 1.78 | % | | 1,364,310 | | | 0.27 | % | | 1.34 | % | | 0.27 | % |
Year Ended October 31, 2009 | | | 0.08 | % | | 996,309 | | | 0.22 | % | | 0.08 | % | | 0.26 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | 0.00 | % | | 1,037,966 | | | 0.12 | % | | 0.01 | % | | 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 each 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 (including the Fund) 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 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 26 days during the period. |
| |
(f) | 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 | 44 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (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, 2010, the Trust is comprised of 15 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial statements 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 New York Tax-Free Money Market Fund | N.Y. Tax-Free Money Market Fund |
| HSBC Investor Prime Money Market Fund | Prime 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 |
| |
| All the Funds are diversified funds. Each Fund is a part of the HSBC Investor Family of Funds. |
| |
| 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 six classes of shares: Class A Shares, Class B Shares, Class C Shares, Class D Shares, Class E Shares and Class Y Shares. In addition, the Prime 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 E, 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. As of April 30, 2010, Class E Shares were not operational. |
| |
| 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 Trust 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 Trust expects the 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 certain 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
| |
| Securities Valuation: |
| |
| Investments of the Funds are valued using the amortized cost method pursuant to Rule 2a-7 under the Act, which approximates fair value. The amortized cost method involves valuing an instrument at its cost initially and thereafter assuming a constant amortization to maturity of any discounts or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. The amortized cost method may result in periods during which value, as determined by amortized cost, is higher or lower than the price a Fund holding the instrument would receive if it sold the instrument. The fair value of securities in the Funds can be expected to vary with changes in prevailing interest rates. Investments in other money market funds are priced at net asset value as reported by such companies. |
| |
45 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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. |
| |
| 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 144A under the 1933 Act, or another 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 (as defined in Note 4) based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At April 30, 2010, the Funds did not hold any restricted securities that were deemed illiquid. |
| |
| 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 U.S. Treasury Money Market Fund may temporarily invest in repurchase agreements collateralized by U.S. Treasury 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 unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
| |
| Dividends to Shareholders: |
| |
| Dividends to shareholders from net investment income are declared daily and paid monthly from each Fund. Dividends to shareholders 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 to shareholders 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. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 46 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | |
| Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
| |
| New Accounting Pronouncements: |
| |
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trust’s financial statements and related disclosures. |
| |
3. | Investment Valuation Summary: |
| | |
| The valuation techniques employed by the Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below: |
| | | |
| | • | Level 1: quoted prices in active markets for identical assets |
| | | |
| | • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
| | | |
| | • | Level 3: significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
| | |
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. |
| |
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Funds’ investments based upon the three levels defined above: |
| | | | | | | | | | | | | |
| | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
| |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
Commercial Paper and Notes | | $ | — | | $ | 10,600,000 | | $ | — | | $ | 10,600,000 | |
Municipal Bonds | | | — | | | 2,521,686 | | | — | | | 2,521,686 | |
Variable Rate Demand Notes | | | — | | | 26,945,000 | | | — | | | 26,945,000 | |
Investment Companies | | | 710,174 | | | — | | | — | | | 710,174 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | 710,174 | | $ | 40,066,686 | | $ | — | | $ | 40,776,860 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
New York Tax-Free Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
Tax-Free Notes and Commercial Paper | | $ | — | | $ | 23,500,000 | | $ | — | | $ | 23,500,000 | |
Variable Rate Demand Notes | | | — | | | 463,394,000 | | | — | | | 463,394,000 | |
Municipal Bonds | | | — | | | 21,629,547 | | | — | | | 21,629,547 | |
Investment Companies | | | 11,805,757 | | | — | | | — | | | 11,805,757 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | 11,805,757 | | $ | 508,523,547 | | $ | — | | $ | 520,329,304 | |
| |
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| |
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| |
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| |
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| |
| |
47 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | | | | | | | |
| | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
| |
| |
| |
| |
| |
Prime Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
Certificates of Deposit | | $ | — | | $ | 2,773,150,526 | | $ | — | | $ | 2,773,150,526 | |
Corporate Obligations | | | — | | | 570,098,447 | | | — | | | 570,098,447 | |
Commercial Paper and Notes | | | — | | | 2,664,956,943 | | | — | | | 2,664,956,943 | |
Municipal Bonds | | | — | | | 166,255,000 | | | — | | | 166,255,000 | |
Repurchase Agreements | | | — | | | 460,000,000 | | | — | | | 460,000,000 | |
Variable Rate Demand Notes | | | — | | | 334,460,000 | | | — | | | 334,460,000 | |
Time Deposits | | | — | | | 956,250,975 | | | — | | | 956,250,975 | |
U.S. Government and Government Agency Obligations | | | — | | | 384,967,169 | | | — | | | 384,967,169 | |
U.S. Treasury Obligations | | | — | | | 299,829,186 | | | — | | | 299,829,186 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 8,609,968,246 | | $ | — | | $ | 8,609,968,246 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Tax-Free Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
Commercial Paper and Notes | | $ | — | | $ | 18,575,000 | | $ | — | | $ | 18,575,000 | |
Municipal Bonds | | | — | | | 52,972,269 | | | — | | | 52,972,269 | |
Variable Rate Demand Notes | | | — | | | 13,625,000 | | | — | | | 13,625,000 | |
Investment Companies | | | 3,212,647 | | | — | | | — | | | 3,212,647 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | 3,212,647 | | $ | 85,172,269 | | $ | — | | $ | 88,384,916 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
U.S. Government Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
U.S. Government and Government Agency Obligations | | $ | — | | $ | 4,243,770,376 | | $ | — | | $ | 4,243,770,376 | |
U.S. Treasury Obligations | | | — | | | 49,958,906 | | | — | | | 49,958,906 | |
Repurchase Agreements | | | — | | | 7,190,000,000 | | | — | | | 7,190,000,000 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 11,483,729,282 | | $ | — | | $ | 11,483,729,282 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
U.S. Treasury Money Market Fund | | | | | | | | | | | | | |
Investment Securities:(+) | | | | | | | | | | | | | |
U.S. Treasury Obligations | | $ | — | | $ | 3,602,862,822 | | $ | — | | $ | 3,602,862,822 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Securities | | $ | — | | $ | 3,602,862,822 | | $ | — | | $ | 3,602,862,822 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
|
|
| (+) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. |
| |
4. | Related Party Transactions and Other Agreements and Plans:
Investment Management: |
| |
| HSBC Global Asset Management (USA) Inc. (“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 as investment adviser, HSBC receives a fee from each Fund, accrued daily and paid monthly, based on the average daily net assets of each respective Fund, at an annual rate of 0.10%. |
| |
| HSBC also provides operational support services to the Funds pursuant to an Operational Support Services Agreement. For its services in this capacity, 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: |
| |
HSBC INVESTOR FAMILY OF FUNDS | 48 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | | | | |
Fund | | | Fee Rate | |
| | |
| |
California Tax-Free Money Market Fund | | | 0.10% | |
N.Y. Tax-Free Money Market Fund | | | 0.05% | |
Prime 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% | |
| |
| The Bank of New York Mellon (the “Servicer”) provides recordkeeping, reporting and processing services to the Prime Money Market Fund, U.S. Government Money Market Fund and U.S. Treasury Money Market Fund, Class I Shares. The Servicer is paid by the Investment Adviser from its profits and not by the Funds, for these services. |
| |
| Administration: |
| |
| HSBC serves the Funds as Administrator. Under the terms of the Administration Agreement, HSBC received from the Funds (as well as other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | | |
Based on Average Daily Net Assets of | | | Fee Rate | |
| | |
| |
Up to $10 billion | | | 0.0550% | |
In excess of $10 billion but not exceeding $20 billion | | | 0.0350% | |
In excess of $20 billion but not exceeding $50 billion | | | 0.0275% | |
In excess of $50 billion | | | 0.0250% | |
| |
| 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, subject to certain allocations in cases where one fund invests some or all of its assets in another fund. An amount equal to 50% of the administration fees is deemed to be class specific. |
| |
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio’’), a wholly-owned subsidiary of Citigroup, Inc., serves as Sub-Administrator for the Trusts and the HSBC Investor Family of Funds, subject to the general supervision of the 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. During the period ended April 30, 2010, Citi Ohio voluntarily reduced its sub-administration fees by $105,011. During the period ended April 30, 2010, HSBC voluntarily reduced its administration fees by $254,288. |
| |
| Under a Compliance Services Agreement between the Trust 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 $134,557 for the period ended April 30, 2010, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Services.’’ Citi Ohio pays the salary and other compensation earned by individuals performing these services, as employees of Citi Ohio. |
| |
| Distribution Arrangements: |
| |
| 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 “Distribution Plan’’) pursuant to Rule 12b-1 of the Act. The Distribution 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. As of the most recent fiscal period end, Foreside, as Distributor, also received $284,730, $198,003 and $19,382 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares and Class C Shares, respectively, of which $30, $6 and $— were reallocated to HSBC-affiliated brokers and dealers for Class A Shares, Class B Shares and Class C Shares, respectively. Expenses reduced during the period ended April 30, 2010 are reflected on the Statements of Operations as “Fees reduced by Distributor.” |
| |
49 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Shareholder Servicing: |
| |
| �� The Trust has adopted a Shareholder Services Plan, which provides for payments to shareholder servicing agents (which primarily 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%, 0.25% and 0.10% of the average daily net assets of Class A Shares (currently charging 0.40%), Class B Shares, Class C Shares, Class D Shares and Class E 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, 0.85%, 1.00%, 1.00%, 0.50% and 0.10% annually of each Fund’s average daily net assets of Class A Shares, Class B Shares, Class C Shares, Class D Shares and Class E Shares, respectively. Expenses reduced during the period ended April 30, 2010 are reflected on the Statements of Operations as “Fees reduced by Shareholder Servicing Agent.” |
| |
| Fund Accounting, Transfer Agent and Trustees: |
| |
| Citi Ohio provides fund accounting and transfer agency services for each fund of the HSBC Investor Family of Funds. As transfer agent, 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, Citi Ohio receives an annual fee per fund and share class, subject to certain minimums and reimbursement of certain expenses. |
| |
| Each non-interested Trustee is compensated with a $60,000 annual Board retainer for service as a Trustee of the Trust and the other HSBC Investor Funds, as well as a $3,000 annual retainer for each Committee of the Board of the Trust and other HSBC Investor Funds. 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 or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Fee Reductions: |
| |
| The Investment Adviser has agreed to contractually limit through March 1, 2011 the annual total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses, of the California Tax-Free Money Market Fund, Prime 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 | | | E | | 0.35 | %** | |
California Tax-Free Money Market Fund | | | Y | | 0.40 | % | |
Prime Money Market Fund | | | E | | 0.25 | %** | |
Prime Money Market Fund | | | I | | 0.20 | % | |
U.S. Government Money Market Fund | | | E | | 0.25 | %** | |
U.S. Government Money Market Fund | | | I | | 0.20 | % | |
U.S. Treasury Money Market Fund | | | E | | 0.25 | %** | |
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, 2010. |
** | As of April 30, 2010, Class E Shares were not operational. |
| |
| Any amounts contractually waived or reimbursed by the Investment Adviser will be subject to repayment by the Fund to the Investment Adviser within three years to the extent that the repayment will not cause the Fund’s operating expenses to exceed the contractual expense limit that was in effect at the time of such waiver or reimbursement. During the period ended April 30, 2010, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2010, the repayments that may potentially be made by the Funds are as follows: |
| | | | | |
Fund | | | 2010($)* | |
| | |
| |
U.S. Government Money Market Fund | | | 6,689 | |
| | |
| |
* | The year listed above the amounts is the fiscal year ending which the amounts will no longer be recoupable. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 50 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable. |
| |
| The Funds have entered into an arrangement with their custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Expenses reduced during the period ended April 30, 2010 are reflected on the Statements of Operations as “Fees Reduced by Custody Credits.” |
| |
5. | 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. |
| |
6. | Federal Income Tax Information: |
| |
| At April 30, 2010, the cost basis of securities 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 | | | 40,776,860 | | | — | | | — | | | — | |
New York Tax-Free Money Market Fund | | | 520,329,304 | | | — | | | — | | | — | |
Prime Money Market Fund | | | 8,609,968,246 | | | — | | | — | | | — | |
Tax-Free Money Market Fund | | | 88,384,916 | | | — | | | — | | | — | |
U.S. Government Money Market Fund | | | 11,483,729,282 | | | — | | | — | | | — | |
U.S Treasury Money Market Fund | | | 3,602,867,238 | | | — | | | (4,416 | ) | | (4,416 | ) |
| |
| The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to: tax-deferral of losses on wash sales, |
| |
| The tax character of dividends paid by the Funds as of latest tax year ended October 31, 2009 was as follows: |
| | | | | | | | | | | | | | | | |
| | Dividends paid from | | | | | | | | | | |
| |
| | | | | | | | | | |
| | Ordinary
Income | | Net
Long Term
Gains | | Total
Taxable
Dividends | | Tax
Exempt
Distributions | | Total
Dividends
Paid** | |
| |
| |
| |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | — | | $ | — | | $ | — | | $ | 314,207 | | $ | 314,207 | |
New York Tax-Free Money Market Fund | | | 14,699 | | | — | | | 14,699 | | | 5,594,422 | | | 5,609,121 | |
Prime Money Market Fund | | | 69,404,711 | | | — | | | 69,404,711 | | | — | | | 69,404,711 | |
Tax-Free Money Market Fund | | | 717 | | | 2 | | | 719 | | | 1,543,185 | | | 1,543,904 | |
U.S. Government Money Market Fund | | | 65,922,133 | | | — | | | 65,922,133 | | | — | | | 65,922,133 | |
U.S Treasury Money Market Fund | | | 10,236,049 | | | — | | | 10,236,049 | | | — | | | 10,236,049 | |
| | |
| |
* | Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
| |
51 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| As of latest tax year ended October 31, 2009, 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 | | $ | — | | $ | 3,772 | | $ | — | | $ | 3,772 | | $ | (3,736 | ) | $ | (2,925 | ) | $ | — | | $ | (2,889 | ) |
New York Tax-Free Money Market Fund | | | — | | | — | | | — | | | — | | | (13,403 | ) | | — | | | — | | | (13,403 | ) |
Prime Money Market Fund | | | 863,638 | | | — | | | — | | | 863,638 | | | (898,732 | ) | | (374,192 | ) | | — | | | (409,286 | ) |
Tax-Free Money Market Fund | | | — | | | 18,501 | | | — | | | 18,501 | | | (18,451 | ) | | — | | | — | | | 50 | |
U.S. Government Money Market Fund | | | 2,325,217 | | | — | | | — | | | 2,325,217 | | | (962,661 | ) | | — | | | — | | | 1,362,556 | |
U.S Treasury Money Market Fund | | | 107,741 | | | — | | | — | | | 107,741 | | | (103,495 | ) | | (75,493 | ) | | — | | | (71,247 | ) |
| |
| As of latest tax year ended October 31, 2009, 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. |
| | | | | | | |
| | Amount | | Expires | |
| |
| |
| |
California Tax-Free Money Market Fund | | $ | 24 | | | 2014 | |
California Tax-Free Money Market Fund | | | 2,900 | | | 2016 | |
California Tax-Free Money Market Fund | | | 1 | | | 2017 | |
Prime Money Market Fund | | | 374,192 | | | 2016 | |
U.S. Treasury Money Market Fund | | | 75,493 | | | 2017 | |
| |
| During the latest tax year ended October 31, 2009, the following Funds utilized capital loss carryforwards to offset capital gains realized: |
| | | | | | | |
| | Amount | | | | |
| |
| | | | |
Prime Money Market Fund | | | $3,584,834 | | | | |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Funds. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Funds will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Fund will be disclosed in the Financial Highlights after the date of payment. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 52 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Advisor Contract Approval (Unaudited) |
| | |
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
| | |
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
| | |
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
| | |
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
| | |
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
| | |
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and 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 Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
| |
53 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Advisor Contract Approval (Unaudited) (continued) |
| | |
| | Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The 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. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
| | |
| | The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
| | |
| | The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
| | |
| | With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
| | |
| | The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
| | |
| | The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
| | |
| | Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had |
| |
HSBC INVESTOR FAMILY OF FUNDS | 54 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Advisor Contract Approval (Unaudited) (continued) |
| | |
| | achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
| |
55 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 |
| |
| As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases and redemptions of shares: (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, 2009 through April 30, 2010. |
| |
| 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 |
| | | |
| |
| |
| |
|
California Tax-Free Money Market Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,000.10 | | | | $ | 1.24 | | | 0.25% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 1.24 | | | 0.25% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.14 | | | 0.23% |
New York Tax-Free Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.09 | | | 0.22% |
| | Class B Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.04 | | | 0.21% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.04 | | | 0.21% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.04 | | | 0.21% |
Prime Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.24 | | | 0.25% |
| | Class B Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.24 | | | 0.25% |
| | Class C Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.24 | | | 0.25% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.24 | | | 0.25% |
| | Class I Shares | | | | 1,000.00 | | | | | 1,000.50 | | | | | 0.79 | | | 0.16% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.24 | | | 0.25% |
Tax-Free Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.89 | | | 0.18% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 1.29 | | | 0.26% |
| | Class I Shares** | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.22 | | | 0.16% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.40 | | | | | 0.89 | | | 0.18% |
U.S. Government Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.99 | | | 0.20% |
| | Class B Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.99 | | | 0.20% |
| | Class C Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.99 | | | 0.20% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.99 | | | 0.20% |
| | Class I Shares | | | | 1,000.00 | | | | | 1,000.30 | | | | | 0.79 | | | 0.16% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.99 | | | 0.20% |
U.S. Treasury Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.60 | | | 0.12% |
| | Class B Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.60 | | | 0.12% |
| | Class C Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.60 | | | 0.12% |
| | Class D Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.55 | | | 0.11% |
| | Class I Shares | | | | 1,000.00 | | | | | 1,000.10 | | | | | 0.55 | | | 0.11% |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,000.00 | | | | | 0.60 | | | 0.12% |
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* | 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). |
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** | Expenses are equal to the Tax-Free Money Market Fund Class I Shares annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the period operational from November 1, 2009 to April 30, 2010 divided by the number of days in the fiscal year. |
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HSBC INVESTOR FAMILY OF FUNDS | 56 |
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HSBC INVESTOR FAMILY OF FUNDS |
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Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 (continued) |
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Hypothetical Example for Comparison Purposes |
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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 the ongoing costs of investing in a Fund and other Funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
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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) on purchases and redemption of shares, if applicable. 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. |
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| | | | Beginning
Account Value
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
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California Tax-Free Money Market Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,023.55 | | | | $ | 1.25 | | | 0.25 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.65 | | | | | 1.15 | | | 0.23 | % | |
New York Tax-Free Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,023.70 | | | | | 1.10 | | | 0.22 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,023.75 | | | | | 1.05 | | | 0.21 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,023.75 | | | | | 1.05 | | | 0.21 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.75 | | | | | 1.05 | | | 0.21 | % | |
Prime Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.00 | | | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.55 | | | | | 1.25 | | | 0.25 | % | |
Tax-Free Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,023.90 | | | | | 0.90 | | | 0.18 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,023.51 | | | | | 1.30 | | | 0.26 | % | |
| | Class I Shares** | | | | 1,000.00 | | | | | 1,024.00 | | | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.90 | | | | | 0.90 | | | 0.18 | % | |
U.S. Government Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,023.80 | | | | | 1.00 | | | 0.20 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,023.80 | | | | | 1.00 | | | 0.20 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,023.80 | | | | | 1.00 | | | 0.20 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,023.80 | | | | | 1.00 | | | 0.20 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.00 | | | | | 0.80 | | | 0.16 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,023.80 | | | | | 1.00 | | | 0.20 | % | |
U.S. Treasury Money Market Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,024.20 | | | | | 0.60 | | | 0.12 | % | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,024.20 | | | | | 0.60 | | | 0.12 | % | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,024.20 | | | | | 0.60 | | | 0.12 | % | |
| | Class D Shares | | | | 1,000.00 | | | | | 1,024.25 | | | | | 0.55 | | | 0.11 | % | |
| | Class I Shares | | | | 1,000.00 | | | | | 1,024.25 | | | | | 0.55 | | | 0.11 | % | |
| | Class Y Shares | | | | 1,000.00 | | | | | 1,024.20 | | | | | 0.60 | | | 0.12 | % | |
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* | 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). |
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** | Expenses are equal to the Tax-Free Money Market Fund Class I Shares annualized expense ratio multiplied by the average account value over the period, 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 one half-year period). Information shown reflects values using the expense ratios for the 51 days of operations during the period, and has been annualized to reflect values for the period November 1, 2009 to April 30, 2010. |
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57 | HSBC INVESTOR FAMILY OF FUNDS |
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Other Information: |
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Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) 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; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov. |
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(i) The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Funds’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com. |
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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. |
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HSBC INVESTOR FAMILY OF FUNDS | 58 |
(This Page Intentionally Left Blank)
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HSBC INVESTOR FAMILY OF FUNDS: | CUSTODIAN |
| The Northern Trust Company |
INVESTMENT ADVISER AND ADMINISTRATOR | 50 South LaSalle Street |
HSBC Global Asset Management (USA) Inc. | Chicago, IL 60603 |
452 Fifth Avenue | |
New York, NY 10018 | INDEPENDENT REGISTERED PUBLIC |
| ACCOUNTING FIRM |
SHAREHOLDER SERVICING AGENTS | KPMG LLP |
For HSBC Bank USA, N.A. and | 191 West Nationwide Blvd., Suite 500 |
HSBC Securities (USA) Inc. Clients: | Columbus, OH 43215 |
HSBC Bank USA, N.A. | |
452 Fifth Avenue | LEGAL COUNSEL |
New York, NY 10018 | Dechert LLP |
1-888-525-5757 | 1775 I Street, N.W. |
| 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 | |
Citi Fund Services | |
3435 Stelzer Road | |
Columbus, OH 43219 | |
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DISTRIBUTOR | |
Foreside Distribution Services, L.P. | |
690 Taylor Road, Suite 150 | |
Gahanna, Ohio 43230-3202 | |
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 Global Asset Management (USA) Inc.
April 30, 2010
HSBC World Selection Funds
Semi-Annual Report
Aggressive Strategy Fund
Balanced Strategy Fund
Moderate Strategy Fund
Conservative Strategy Fund
HSBC World Selection Funds
Semi-Annual Report - April 30, 2010
(This Page Intentionally Left Blank)
Barclays Capital Intermediate U.S. Aggregate Bond Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Barclays Capital U.S. Aggregate Bond 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.
Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.
Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped is an unmanaged market value-weighted index which covers the universe of fixed rate, non-investment grade debt.
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is an unmanaged index of three-month Treasury bills.
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 is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.
Group of 20 (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy.
MSCI EAFE Index (Europe, Australasia, Far East) which is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. The MSCI EAFE Index currently consists 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 2000® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
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 indices assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Funds do not match those in the indices and performance of the Funds will differ. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 3 |
June 3, 2010
To Our Shareholders:
Some calm prevailed in the U.S. financial markets in the first half of our current fiscal year. Signs of economic recovery, which included tentative upticks in consumer spending, housing, and continued very low interest rates soothed investors. After the tumult of the past two-plus years, this tranquility was most welcome. Then, however, the specter of sovereign defaults in the Southern Eurozone countries sparked a significant global sell-off in risk assets and a decline in the Euro, the countries’ common currency.
It reminded us again both of how inter-connected the world economy and markets truly are and of the importance of a global view even if one’s focus is largely on the U.S. market. One of your board’s most important duties is to monitor and analyze fund performance. We are immeasurably aided in this effort by the global MultiManager team of the Funds’ investment adviser, HSBC Global Asset Management (USA), Inc. With staff deployed around the world, they are equipped to assay events like those in the Eurozone area, to find and monitor superior managers, and to translate that into advantage for our fund offerings. In the section labeled “Finding the World’s Most Talented Investment Managers” we describe this valuable resource, which we believe significantly distinguishes our Funds from our competitors’.
Total assets in our Funds have declined slightly—a not-unexpected consequence of record low yields and investors’ somewhat renewed appetite for risk. Total assets declined to $24.9 billion at April 30, 2010, from $31.1 billion six months earlier, paced by a decline in our money market funds to $24.3 billion from $30.5 billion over the same period. Our investment advisor and service providers continue to waive a portion of their fees associated with the money market funds in order to limit expenses and maintain a competitive yield on these funds; these waivers amounted to approximately $13 million for the six months ended April 30, 2010.
Assets in our “long-term” funds, which include the HSBC World Selection Funds and the HSBC Investor equity funds, increased to $568.6 million as of April 30, 2010, from $521.0 million six months earlier. This increase reflects both shareholder activity and the change in value of the Funds’ investments. In general, the Funds performed very well. Of our five equity funds, three were in the top quartile of comparable funds, as measured by Lipper, Inc. for the five year period ended April 30, 2010. The four World Selection Funds converted from the previous LifeLine Funds with new asset allocation models and new underlying investments on January 19, 2010. Performance comparisons for the brief period of time from that date through April 30 are largely irrelevant, but all four funds posted positive returns for this brief period. More information on your funds’ performance is presented in the portfolio managers’ letters in this report.
Our annual report referred to the Jones v Harris Associates case that was then before the U.S. Supreme Court. We were pleased that in its ruling the Court essentially upheld the 25 year-old Gartenberg standard, which confirms the right of boards to set advisory fees.
In the regulatory area, the Securities and Exchange Commission (“SEC”) recently adopted several important amendments to Rule 2a-7, which governs money market funds. The changes, which relate in part to portfolio liquidity and increased transparency for investment holdings, are designed to help ensure that money market funds can meet redemption requirements, especially in a systemic crisis like that which afflicted The Reserve Fund in September 2008, causing it to “break the buck” and delay redemptions. The amendments also afford money market funds and their boards additional tools to help deal with such extraordinary circumstances. We are pleased to report that HSBC Global Asset Management, the investment advisor to the HSBC Investor money market funds, adopted internal investment policies that comply with the SEC’s new liquidity requirements in early 2009—well before they became law.
Also in the regulatory area, the SEC’s mutual fund chief has urged fund companies to consider enhancing their communications with shareholders, a directive we strongly support; we welcome shareholders’ input and suggestions on how we might do so. The SEC also has signaled its intent to review Rule 12b-1, which permits mutual funds to use a portion of their assets to promote sales of fund shares. We support this move and look forward to the Commission’s review.
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4 | HSBC INVESTOR FAMILY OF FUNDS |
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Chairman’s Message (continued) |
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The advisor’s Chief Executive Officer recently retired from HSBC Global Asset Management (USA) Inc. and the Funds’ board of trustees. In light of this development, the independent trustees in April decided to keep the board at its current composition of six independent members.
Those of us who have managed money ourselves and served as fund directors for many years, evaluating the performance of our advisor and sub-advisors, are constantly reminded of how very hard it is to sustain superior investment performance—and how important it is to assure that above average results are being obtained without undue risk.
We believe that we have a great team of investment professionals working on your behalf and pledge our very best effort in seeing that they do their best for you.
Cordially,
Michael Seely
Chairman, HSBC Investor Funds
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Finding the World’s Most Talented Investment Managers |
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Investors are faced with numerous decisions and literally thousands of choices when building their investment portfolio. Allocating among asset classes, investing directly in a security or selecting to invest in a fund, and choosing the right investment manager(s) are just a few of the decisions investors have to make.
Successfully choosing among thousands of available investment managers is particularly challenging. It requires expertise, knowledge and continuous access to information. As a result, many investors are turning to professionals to select their investment managers, including their financial advisors and full-time “multimanager” research teams. |
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HSBC Multimanager |
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Multimanager investment professionals research and recommend asset management firms on a full-time basis. They typically analyze numerous important factors, such as philosophy, process, team tenure, risk profiles and performance in order to recommend sound, talented investment management firms and teams.
HSBC Multimanager, the dedicated team of specialists within HSBC Global Asset Management, advises the HSBC Investor Equity Funds and the HSBC World Selection Funds. This team is comprised of more than 50 investment professionals in 12 locations around the world*. The members of the Multimanager team focus on specific markets to identity optimal managers within globally diversified portfolios.
HSBC Multimanager evaluates each manager’s investment process and the way it is implemented, using both quantitative and qualitative criteria. They aim to select managers with clearly identifiable skills that give them an advantage over their peers. The team also seeks managers that complement each other in a diversified portfolio. Such managers come from a range of firms, including both global firms and specialist boutiques. |
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Investors may want to consider employing the full-time expertise of a multimanager program. The knowledge and expertise of a dedicated team of specialists - who continuously evaluate local and global managers - can be very powerful. We believe HSBC Multimanager can assist investors in evaluating and recommending investment managers in order to help achieve long-term investment objectives. |
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*As of March 2010 |
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HSBC INVESTOR FAMILY OF FUNDS | 5 |
Dear Shareholder,
Welcome to the HSBC Investor Funds semiannual report, covering the period between November 1, 2009 and April 30, 2010. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.
Inside these pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he describes developments in the Funds’ management and structure. The report also provides commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average.
We remain focused on providing value for shareholders. During this period we waived management and servicing fees on the HSBC Investor money market funds. This move enabled the funds to maintain positive yields for investors, despite the historically low level of short-term interest rates. Meanwhile, our Multimanager team continued to monitor the performance of the HSBC Investor equity funds’ sub-advisors and the underlying funds in the World Selection Funds. A description of our Multimanager team is also included as part of this report; we hope you find it to be of interest. We believe that Multimanager’s oversight has helped the Equity and World Selection Funds provide shareholders with competitive returns.
In closing, we would like to thank you for investing through the HSBC Investor Funds. We appreciate the trust you place in us, and will continue working to earn it. Please contact us at any time with questions or concerns.
Sincerely,
Richard A. Fabietti
President
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6 | HSBC INVESTOR FAMILY OF FUNDS |
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Commentary From the Investment Manager |
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HSBC Global Asset Management (USA) Inc. |
U.S. Economic Review
The six-month period ended April 30, 2010 began in the midst of a global economic recovery. Aggressive fiscal and monetary stimulus by governments around the world prior to the period laid the groundwork for a rebound. Indeed, the Federal Reserve Board held the federal funds rate at a historically low target range between 0.00% to 0.25%, and maintained that level throughout the period. At the beginning of the six months under review, encouraging corporate earnings results and improving consumer-spending levels suggested the rebound was gaining steam.
The global economic recovery experienced some setbacks during the period, however, primarily because of events in overseas markets such as the United Arab Emirates and the European Union. In the U.A.E., a government-owned holding company involved in prominent real estate projects unexpectedly announced a restructuring of its debt, shaking investor confidence in the credit markets. Later in the period economic difficulties in Greece and certain other E.U. countries spread through Europe, dampening the prospects for recovery in Europe and around the world.
U.S. and international economic data improved as the period progressed. However, as April drew to a close, rising unemployment figures and weakening consumer spending in some international markets led to questions about the stability of the global economic recovery.
Market Review
The economic recovery helped fuel a rally in the financial markets that lasted through much of the six months under review.
Investors early in the period became increasingly comfortable with investing in higher-risk areas of the financial markets, helping to fuel strong performance among emerging markets and small-cap stocks. While small-cap stocks continued to perform well during the period, mounting economic troubles in European countries including Greece, Portugal, Ireland, Italy and Spain halted the rally in international stocks, and emerging-markets stocks in particular resulting in a 2.68% return for the MSCI Europe, Australasia and Far East (EAFE) Index1.
During the period domestic stocks experienced much stronger returns. The S&P 500 Index1 of large-company stocks returned 15.66%, while the Russell 2000® Index1 of small-company stocks returned 28.17%. Early in the period investors were drawn to relatively low stock-market valuations. Subsequently, increased optimism about the strength and breadth of the U.S. economic recovery and improving corporate earnings drove the market’s strong gains.
Among fixed-income securities, the low interest rate environment in the beginning of the period led investors to seek out the additional yield available on higher-risk securities such as corporate bonds. The pursuit of higher yields initially led to low demand for government bonds. Demand increased slightly as the period wore on, but Treasuries still lagged the rest of the fixed-income market for the six months as a whole, in part because of concerns that the U.S. government would have to issue a significant amount of debt to cover the rising federal deficit.
The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad fixed-income market, returned 2.54% for the period, while the Barclays Capital U.S. Corporate High-Yield Bond Index1 returned 11.70%.
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1 | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 7 |
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Portfolio Reviews |
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Aggressive Strategy Fund |
Balanced Strategy Fund |
Moderate Strategy Fund |
Conservative Strategy Fund |
Investment Concerns
Allocation Risk: The risks that the Adviser’s target asset and sector allocations and changes in target asset and sector allocations cause a Fund to underperform other similar funds or cause you to lose money, and that a Fund may not achieve its target asset and sector allocations.
Underlying Fund Selection Risk: The risk that a Fund may invest in Underlying Funds that underperform other similar funds or the markets more generally, due to poor investment decisions by the investment adviser(s) for the Underlying Funds or otherwise. Underlying funds also have their own expenses, which the Funds bear in addition to their own expenses.
Equity Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in equity securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in equity securities.
Fixed Income Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in fixed-income securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in fixed-income securities.
Foreign Securities/Emerging Markets Risk: Foreign securities, including those of emerging market issuers, are subject to additional risks including international trade, currency, political, and regulatory risks. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed foreign markets.
Market Commentary
The HSBC World Selection Funds, Class A Shares (without sales charge), generated the following returns during the six-month period between November 1, 2009 and April 30, 2010:
Aggressive Strategy Fund: 13.43%
Balanced Strategy Fund: 11.85%
Moderate Strategy Fund: 9.96%
Conservative Strategy Fund: 7.62%
The Funds’ benchmark indices posted the following performance during the same period:
S&P 5001: 15.66%
MSCI EAFE1: 2.68%
Barclays Capital U.S. Aggregate Bond1: 2.54%
Citigroup U.S. Domestic 3-Month Treasury Bill1: 0.04%
The structure of the Funds changed during the period under review. We broadened their asset mix significantly: At the beginning of the period the four Funds, formerly known as the Lifeline Funds, offered exposure to a limited set of asset classes, including large and small-cap U.S. stocks, international stocks, fixed-income and short-term investments. As of January 19, 2010, we broadened the categories of asset classes used in each Fund to include enhancements such as emerging markets equity and debt, commodities and private equity. Our goal was to augment diversification and thereby improve the potential return each Fund offers at a given level of volatility.
The Funds’ manager selections within specific asset classes were the primary drivers of their returns for the six months through April, 2010. The managers of the Funds’ core fixed-income positions generally outperformed their respective benchmarks during the period. This development especially benefited the relative returns of World Selection Funds with larger fixed-income allocations, including the Conservative Strategy and Moderate Strategy Funds.
Meanwhile, the Funds’ underlying U.S. large and small/mid cap equity portfolios generally lagged their benchmarks. This trend reduced relative performance during the period, particularly for the Balanced Strategy and Aggressive Strategy Funds, which have sizable allocations to U.S. equities.
The Funds ended the period with equity allocations somewhat lighter than their neutral weightings, and with overweight stakes in defensive sectors such as health care and telecommunications. Their fixed-income allocations emphasized investment-grade and high-yield corporate debt over government bonds.
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1 | For additional information, please refer to the Glossary of Terms. |
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8 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
Aggressive Strategy Fund |
| | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net | |
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World Selection Aggressive Strategy Fund Class A1 | | 2/14/05 | | 7.73 | | | 31.63 | | | 4.23 | | 3.18 | | | 2.16 | | 1.50 | |
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World Selection Aggressive Strategy Fund Class B2 | | 2/9/05 | | 8.88 | | | 33.41 | | | 4.51 | | 3.45 | | | 2.91 | | 2.25 | |
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World Selection Aggressive Strategy Fund Class C3 | | 6/10/05 | | 11.99 | | | 36.58 | | | — | | 3.68 | | | 2.91 | | 2.25 | |
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S&P 500 Index5 | | — | | 15.66 | | | 38.85 | | | 2.63 | | 2.19 | 6 | | N/A | | N/A | |
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MSCI EAFE Index5 | | — | | 2.68 | | | 35.02 | | | 4.34 | | 4.03 | 6 | | N/A | | N/A | |
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Barclays Capital U.S. Aggregate Bond Index5 | | — | | 2.54 | | | 8.30 | | | 5.38 | | 5.16 | 6 | | N/A | | N/A | |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 | | — | | 0.04 | | | 0.12 | | | 2.72 | | 2.71 | 6 | | N/A | | N/A | |
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Aggressive Growth Blended Portfolio Index5, 7 | | — | | 16.21 | | | 41.28 | | | 4.68 | | 3.90 | 6 | | 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, 2010 through March 1, 2011.
During the periods ended October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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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 March 31, 2010. |
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5 | For additional information, please refer to the Glossary of Terms. |
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6 | Return for the period 1/31/05 to 4/30/10. |
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7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Aggressive Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Aggressive Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (34%) and the MSCI EAFE Index^ (23%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index. |
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^ | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 9 |
|
Portfolio Reviews |
|
Balanced Strategy Fund |
| | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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|
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|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net | |
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World Selection Balanced Strategy Fund Class A1 | | 2/8/05 | | 6.30 | | | 28.08 | | | 3.97 | | 3.53 | | | 1.60 | | 1.60 | |
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World Selection Balanced Strategy Fund Class B2 | | 2/1/05 | | 7.47 | | | 29.79 | | | 4.28 | | 3.98 | | | 2.35 | | 2.35 | |
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World Selection Balanced Strategy Fund Class C3 | | 4/27/05 | | 10.44 | | | 32.81 | | | 4.30 | | 4.27 | | | 2.35 | | 2.35 | |
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S&P 500 Index5 | | — | | 15.66 | | | 38.85 | | | 2.63 | | 2.19 | 6 | | N/A | | N/A | |
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MSCI EAFE Index5 | | — | | 2.68 | | | 35.02 | | | 4.34 | | 4.03 | 6 | | N/A | | N/A | |
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Barclays Capital U.S. Aggregate Bond Index5 | | — | | 2.54 | | | 8.30 | | | 5.38 | | 5.16 | 6 | | N/A | | N/A | |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 | | — | | 0.04 | | | 0.12 | | | 2.72 | | 2.71 | 6 | | N/A | | N/A | |
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Growth Blended Portfolio Index5, 7 | | — | | 13.18 | | | 35.25 | | | 4.76 | | 4.17 | 6 | | 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.
During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
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* | Aggregate total return. |
| |
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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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 March 31, 2010. |
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5 | For additional information, please refer to the Glossary of Terms. |
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6 | Return for the period 1/31/05 to 4/30/10. |
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7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Citigroup U.S. High Yield Market Capped Index^ (2%); Barclays Capital U.S. Aggregate Bond Index^ (15%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (20%), and the MSCI EAFE Index^ (20%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index. |
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| 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. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
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^ | For additional information, please refer to the Glossary of Terms. |
| |
10 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
Moderate Strategy Fund |
| | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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|
|
|
|
|
|
|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net | |
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World Selection Moderate Strategy Fund Class A1 | | 2/3/05 | | 4.47 | | | 23.03 | | | 3.61 | | 3.17 | | | 1.58 | | 1.58 | |
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World Selection Moderate Strategy Fund Class B2 | | 2/1/05 | | 5.59 | | | 24.58 | | | 3.89 | | 3.53 | | | 2.33 | | 2.33 | |
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World Selection Moderate Strategy Fund Class C3 | | 6/10/05 | | 8.54 | | | 27.61 | | | — | | 3.34 | | | 2.33 | | 2.33 | |
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S&P 500 Index5 | | — | | 15.66 | | | 38.85 | | | 2.63 | | 2.19 | 6 | | N/A | | N/A | |
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MSCI EAFE Index5 | | — | | 2.68 | | | 35.02 | | | 4.34 | | 4.03 | 6 | | N/A | | N/A | |
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Barclays Capital U.S. Aggregate Bond Index5 | | — | | 2.54 | | | 8.30 | | | 5.38 | | 5.16 | 6 | | N/A | | N/A | |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 | | — | | 0.04 | | | 0.12 | | | 2.72 | | 2.71 | 6 | | N/A | | N/A | |
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Moderate Growth Blended Portfolio Index5, 7 | | — | | 10.54 | | | 29.01 | | | 4.84 | | 4.38 | 6 | | 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.
During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
| |
* | Aggregate total return. |
| |
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
| |
1 | Reflects the maximum sales charge of 5.00%. |
| |
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
| |
5 | For additional information, please refer to Glossary of Terms. |
| |
6 | Return for the period 1/31/05 to 4/30/10. |
| |
7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Moderate Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Moderate Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (6%); Barclays Capital U.S. Aggregate Bond Index^ (26%); Citigroup U.S. High Yield Market Capped Index^ (5%); Russell 1000® Growth Index^ (19%); Russell 1000® Value Index^ (18%); Russell 2500TM Growth Index^ (11%) and the MSCI EAFE Index^ (15%). |
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| 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^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
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^ | For additional information, please refer to the Glossary of Terms. |
| |
HSBC INVESTOR FAMILY OF FUNDS | 11 |
|
Portfolio Reviews |
|
Conservative Strategy Fund |
| | | | | | | | | | | | | | | | | | |
Fund Performance | | | | | | Average Annual
Total Return (%) | | Expense
Ratio (%)4 | |
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|
As of April 30, 2010 | | Inception
Date | | Six
Months* | | 1
Year** | | 5
Year | | Since
Inception | | Gross | | Net | |
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World Selection Conservative Strategy Fund Class A1 | | 2/23/05 | | 2.21 | | | 16.76 | | | 3.16 | | 2.76 | | | 1.79 | | 1.79 | |
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World Selection Conservative Strategy Fund Class B2 | | 2/17/05 | | 3.14 | | | 17.75 | | | 3.46 | | 2.91 | | | 2.54 | | 2.54 | |
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World Selection Conservative Strategy Fund Class C3 | | 4/19/05 | | 6.19 | | | 20.74 | | | 3.66 | | 3.53 | | | 2.54 | | 2.54 | |
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S&P 500 Index7 | | — | | 15.66 | | | 38.85 | | | 2.63 | | 2.19 | 6 | | N/A | | N/A | |
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MSCI EAFE Index5 | | — | | 2.68 | | | 35.02 | | | 4.34 | | 4.03 | 6 | | N/A | | N/A | |
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Barclays Capital U.S. Aggregate Bond Index5 | | — | | 2.54 | | | 8.30 | | | 5.38 | | 5.16 | 6 | | N/A | | N/A | |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 | | — | | 0.04 | | | 0.12 | | | 2.72 | | 2.71 | 6 | | N/A | | N/A | |
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Conservative Growth Blended Portfolio Index7, 8 | | — | | 7.69 | | | 21.83 | | | 4.74 | | 4.40 | 6 | | 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.
During the periods October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
| |
* | Aggregate total return. |
| |
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
| |
1 | Reflects the maximum sales charge of 5.00%. |
| |
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
| |
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
| |
4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
| |
5 | For additional information, please refer to the Glossary of Terms. |
| |
6 | Return for the period 1/31/05 to 4/30/10. |
| |
7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Conservative Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Conservative Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (21%); Citigroup U.S. High Yield Market Capped Index^ (8%); Barclays Capital U.S. Aggregate Bond Index^ (25%); Barclays Capital Intermediate U.S. Aggregate Bond Index^ (3%); Russell 1000® Growth Index^ (15%); Russell 1000® Value Index^ (14%); Russell 2500TM 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^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
| |
^ | For additional information, please refer to the Glossary of Terms. |
| |
12 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
Portfolio Composition* |
April 30, 2010 |
(Unaudited) |
| | |
Aggressive Strategy Fund | | |
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| | |
Investment Allocation | | Percentage of Investments at Value |
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Affiliated Investment Companies | | 6.6% |
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Affiliated Portfolios | | 58.6% |
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|
|
Unaffiliated Investment Companies | | 28.5% |
|
|
|
Exchange Traded Funds | | 6.3% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
Balanced Strategy Fund | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Affiliated Investment Companies | | 5.3% |
|
|
|
Affiliated Portfolios | | 41.0% |
|
|
|
Unaffiliated Investment Companies | | 48.5% |
|
|
|
Exchange Traded Funds | | 5.2% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
Moderate Strategy Fund | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Affiliated Investment Companies | | 4.2% |
|
|
|
Affiliated Portfolios | | 29.1% |
|
|
|
Unaffiliated Investment Companies | | 63.5% |
|
|
|
Exchange Traded Funds | | 3.2% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
Conservative Strategy Fund | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Affiliated Investment Companies | | 3.7% |
|
|
|
Affiliated Portfolios | | 19.8% |
|
|
|
Unaffiliated Investment Companies | | 75.4% |
|
|
|
Exchange Traded Funds | | 1.1% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
HSBC Investor Growth Portfolio | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Information Technology | | 40.5% |
|
|
|
Industrials | | 13.0% |
|
|
|
Consumer Discretionary | | 10.5% |
|
|
|
Energy | | 9.0% |
|
|
|
Health Care | | 9.0% |
|
|
|
Financials | | 7.1% |
|
|
|
Consumer Staples | | 4.6% |
|
|
|
Materials | | 3.3% |
|
|
|
Cash and Equivalents | | 3.0% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
HSBC International Equity Portfolio | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Europe | | 61.4% |
|
|
|
Japan | | 23.4% |
|
|
|
Australia & Far East | | 9.5% |
|
|
|
Canada | | 4.2% |
|
|
|
Cash | | 1.0% |
|
|
|
Other | | 0.5% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
HSBC Investor Opportunity Portfolio | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Information Technology | | 22.3% |
|
|
|
Health Care | | 19.5% |
|
|
|
Consumer Discretionary | | 14.8% |
|
|
|
Industrials | | 14.1% |
|
|
|
Energy | | 11.7% |
|
|
|
Financials | | 4.8% |
|
|
|
Materials | | 4.5% |
|
|
|
Consumer Staples | | 3.4% |
|
|
|
Cash and Cash Equivalents | | 2.8% |
|
|
|
Telecommunication Services | | 2.1% |
|
|
|
Total | | 100.0% |
|
|
|
| | |
HSBC Investor Value Portfolio | | |
|
|
|
| | |
Investment Allocation | | Percentage of Investments at Value |
|
|
|
Financials | | 21.3% |
|
|
|
Energy | | 17.0% |
|
|
|
Health Care | | 13.0% |
|
|
|
Industrials | | 10.3% |
|
|
|
Information Technology | | 10.1% |
|
|
|
Materials | | 8.4% |
|
|
|
Consumer Staples | | 7.8% |
|
|
|
Consumer Discretionary | | 4.8% |
|
|
|
Cash and Cash Equivalents | | 3.0% |
|
|
|
Telecommunication Services | | 2.7% |
|
|
|
Utilities | | 1.6% |
|
|
|
Total | | 100.0% |
|
|
|
* Portfolio composition is subject to change.
| |
HSBC INVESTOR FAMILY OF FUNDS | 13 |
(This Page Intentionally Left Blank)
|
AGGRESSIVE STRATEGY FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Affiliated Investment Companies—6.6% | | | | | | | |
HSBC Investor Mid-Cap Fund, Class I Shares | | | 95,690 | | | 678,440 | |
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) | | | 118,781 | | | 118,781 | |
| | | | |
|
| |
TOTAL AFFILIATED INVESTMENT COMPANIES | | | | | | 797,221 | |
| | | | |
|
| |
| | | | | | | |
Affiliated Portfolios—58.4% | | | | | | | |
HSBC Investor Growth Portfolio | | | | | | 2,674,279 | |
HSBC Investor International Equity Portfolio | | | | | | 1,058,476 | |
HSBC Investor Opportunity Portfolio | | | | | | 665,429 | |
HSBC Investor Value Portfolio | | | | | | 2,673,929 | |
| | | | |
|
| |
TOTAL AFFILIATED PORTFOLIOS | | | | | | 7,072,113 | |
| | | | |
|
| |
| | | | | | | |
Unaffiliated Investment Companies—28.4% | | | | | | | |
BlackRock Latin America Fund, Inc., Institutional Shares | | | 2,599 | | | 169,020 | |
Cohen & Steers Institutional Global Realty Shares, Inc. | | | 865 | | | 16,988 | |
Delaware Emerging Markets Fund, Class I Shares | | | 41,116 | | | 574,798 | |
EII Global Property Fund, Institutional Shares | | | 1,255 | | | 16,631 | |
Franklin Total Return Fund, Advisor Shares | | | 23,708 | | | 236,738 | |
Goldman Sachs Emerging Markets Debt Fund, Class I Shares | | | 5,840 | | | 70,824 | |
Goldman Sachs High Yield Fund, Institutional Shares | | | 71,458 | | | 516,078 | |
JPMorgan High Yield Fund, Select Shares | | | 62,287 | | | 505,940 | |
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) | | | | | | 30,630 | |
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares | | | 6,676 | | | 54,075 | |
PIMCO Total Return Fund, Institutional Shares | | | 33,742 | | | 376,435 | |
Transamerica WMC Emerging Markets Fund, Class I Shares | | | 66,274 | | | 870,838 | |
| | | | |
|
| |
TOTAL UNAFFILIATED INVESTMENT COMPANIES | | | | | | 3,438,995 | |
| | | | |
|
| |
| | | | | | | |
Exchange Traded Funds—6.3% | | | | | | | |
Consumer Staples Select Sector SPDR Fund | | | 1,749 | | | 48,325 | |
Health Care Select Sector SPDR Fund | | | 1,687 | | | 52,179 | |
iShares MSCI Turkey Investable Market Index Fund | | | | | | 35,171 | |
PowerShares Global Listed Private Equity Portfolio ETF | | | 51,060 | | | 514,685 | |
SPDR S&P International Consumer Staples Sector ETF | | | 1,456 | | | 41,117 | |
SPDR S&P International Health Care Sector ETF | | | 1,114 | | | 31,682 | |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Exchange Traded Funds, continued | | | | | | | |
SPDR S&P International Telecommunications Sector ETF | | | 1,040 | | | 23,296 | |
Vanguard Telecommunication Services ETF | | | 237 | | | 13,428 | |
| | | | |
|
| |
TOTAL EXCHANGE TRADED FUNDS | | | | | | 759,883 | |
| | | | |
|
| |
TOTAL INVESTMENTS—99.7% | | | | | | 12,068,212 | |
| | | | |
|
| |
| | |
|
| Percentages indicated are based on net assets of $12,107,121. |
| | |
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
ETF | — Exchange Traded Fund |
SPDR | — Standard & Poor’s Depositary Receipt |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 15 |
|
BALANCED STRATEGY FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Affiliated Investment Companies—5.3% | | | | | | | |
HSBC Investor Mid-Cap Fund, Class I Shares | | | 192,005 | | | 1,361,315 | |
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) | | | 443,604 | | | 443,604 | |
| | | | |
|
| |
TOTAL AFFILIATED INVESTMENT COMPANIES | | | | | | 1,804,919 | |
| | | | |
|
| |
| | | | | | | |
Affiliated Portfolios—41.0% | | | | | | | |
HSBC Investor Growth Portfolio | | | | | | 5,388,603 | |
HSBC Investor International Equity Portfolio | | | | | | 1,800,275 | |
HSBC Investor Opportunity Portfolio | | | | | | 1,354,730 | |
HSBC Investor Value Portfolio | | | | | | 5,445,218 | |
| | | | |
|
| |
TOTAL AFFILIATED PORTFOLIOS | | | | | | 13,988,826 | |
| | | | |
|
| |
| | | | | | | |
Unaffiliated Investment Companies—48.5% | �� | | | | | | |
BlackRock Latin America Fund, Inc., Institutional Shares | | | 3,446 | | | 224,136 | |
Cohen & Steers Institutional Global Realty Shares, Inc. | | | 13,326 | | | 261,581 | |
Delaware Emerging Markets Fund, Class I Shares | | | 58,023 | | | 811,166 | |
EII Global Property Fund, Institutional Shares | | | 19,342 | | | 256,275 | |
Franklin Total Return Fund, Advisor Shares | | | 177,152 | | | 1,768,992 | |
Goldman Sachs Emerging Markets Debt Fund, Class I Shares | | | 200,870 | | | 2,435,943 | |
Goldman Sachs High Yield Fund, Institutional Shares | | | 305,993 | | | 2,210,187 | |
Highbridge Statistical Market Neutral Fund, Select Shares | | | 11,135 | | | 173,925 | |
JPMorgan High Yield Fund, Select Shares | | | 274,270 | | | 2,227,803 | |
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) | | | | | | 134,616 | |
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares | | | 268,500 | | | 2,174,847 | |
PIMCO Total Return Fund, Institutional Shares | | | 236,144 | | | 2,634,724 | |
Transamerica WMC Emerging Markets Fund, Class I Shares | | | 94,128 | | | 1,236,837 | |
| | | | |
|
| |
TOTAL UNAFFILIATED INVESTMENT COMPANIES | | | | | | 16,551,032 | |
| | | | |
|
| |
| | | | | | | |
Exchange Traded Funds—5.1% | | | | | | | |
Consumer Staples Select Sector SPDR Fund | | | 5,185 | | | 143,262 | |
Health Care Select Sector SPDR Fund | | | 5,041 | | | 155,918 | |
iShares MSCI Turkey Investable Market Index Fund | | | | | | 69,053 | |
PowerShares Global Listed Private Equity Portfolio ETF | | | 105,728 | | | 1,065,738 | |
SPDR S&P International Consumer Staples Sector ETF | | | 4,322 | | | 122,053 | |
SPDR S&P International Health Care Sector ETF | | | 3,342 | | | 95,047 | |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Exchange Traded Funds, continued | | | | | | | |
SPDR S&P International Telecommunications Sector ETF | | | 3,058 | | | 68,499 | |
Vanguard Telecommunication Services ETF | | | 696 | | | 39,435 | |
| | | | |
|
| |
TOTAL EXCHANGE TRADED FUNDS | | | | | | 1,759,005 | |
| | | | |
|
| |
TOTAL INVESTMENTS—99.9% | | | | | | 34,103,782 | |
| | | | |
|
| |
| | |
|
| Percentages indicated are based on net assets of $34,130,573. |
| | |
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
ETF | — Exchange Traded Fund |
SPDR | — Standard & Poor’s Depositary Receipt |
| | |
16 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
MODERATE STRATEGY FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Affiliated Investment Companies—4.2% | | | | | | | |
HSBC Investor Mid-Cap Fund, Class I Shares | | | 135,821 | | | 962,974 | |
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) | | | 563,546 | | | 563,546 | |
| | | | |
|
| |
TOTAL AFFILIATED INVESTMENT COMPANIES | | | | | | 1,526,520 | |
| | | | |
|
| |
| | | | | | | |
Affiliated Portfolios—29.1% | | | | | | | |
HSBC Investor Growth Portfolio | | | | | | 3,833,817 | |
HSBC Investor International Equity Portfolio | | | | | | 1,940,842 | |
HSBC Investor Opportunity Portfolio | | | | | | 957,949 | |
HSBC Investor Value Portfolio | | | | | | 3,838,140 | |
| | | | |
|
| |
TOTAL AFFILIATED PORTFOLIOS | | | | | | 10,570,748 | |
| | | | |
|
| |
| | | | | | | |
Unaffiliated Investment Companies—63.5% | | | | | | | |
BlackRock Latin America Fund, Inc., Institutional Shares | | | 2,656 | | | 172,760 | |
Cohen & Steers Institutional Global Realty Shares, Inc. | | | 11,933 | | | 234,248 | |
Delaware Emerging Markets Fund, Class I Shares | | | 45,393 | | | 634,587 | |
EII Global Property Fund, Institutional Shares | | | 17,314 | | | 229,416 | |
Franklin Total Return Fund, Advisor Shares | | | 392,784 | | | 3,922,283 | |
Goldman Sachs Emerging Markets Debt Fund, Class I Shares | | | 240,353 | | | 2,914,984 | |
Goldman Sachs High Yield Fund, Institutional Shares | | | 322,716 | | | 2,331,222 | |
Highbridge Statistical Market Neutral Fund, Select Shares | | | 33,760 | | | 527,326 | |
JPMorgan High Yield Fund, Select Shares | | | 288,918 | | | 2,346,855 | |
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) | | | 45,981 | | | 45,981 | |
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares | | | 345,175 | | | 2,795,916 | |
PIMCO Total Return Fund, Institutional Shares | | | 531,472 | | | 5,929,930 | |
Transamerica WMC Emerging Markets Fund, Class I Shares | | | 77,431 | | | 1,017,437 | |
| | | | |
|
| |
TOTAL UNAFFILIATED INVESTMENT COMPANIES | | | | | | 23,102,945 | |
| | | | |
|
| |
| | | | | | | |
Exchange Traded Funds—3.2% | | | | | | | |
Consumer Staples Select Sector SPDR Fund | | | 4,138 | | | 114,333 | |
Health Care Select Sector SPDR Fund | | | 3,999 | | | 123,689 | |
iShares MSCI Turkey Investable Market Index Fund | | | | | | 37,687 | |
PowerShares Global Listed Private Equity Portfolio ETF | | | 60,380 | | | 608,630 | |
SPDR S&P International Consumer Staples Sector ETF | | | 3,440 | | | 97,146 | |
SPDR S&P International Health Care Sector ETF | | | 2,673 | | | 76,020 | |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Exchange Traded Funds, continued | | | | | | | |
SPDR S&P International Telecommunications Sector ETF | | | 2,474 | | | 55,418 | |
Vanguard Telecommunication Services ETF | | | 569 | | | 32,239 | |
| | | | |
|
| |
TOTAL EXCHANGE TRADED FUNDS | | | | | | 1,145,162 | |
| | | | |
|
| |
TOTAL INVESTMENTS—100.0% | | | | | | 36,345,375 | |
| | | | |
|
| |
| | |
|
| Percentages indicated are based on net assets of $36,354,535. |
| |
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
ETF | — Exchange Traded Fund |
SPDR | — Standard & Poor’s Depositary Receipt |
| | |
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 17 |
|
CONSERVATIVE STRATEGY FUND |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Affiliated Investment Companies—3.7% | | | | | | | |
HSBC Investor Mid-Cap Fund, Class I Shares | | | 29,628 | | | 210,066 | |
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) | | | 244,370 | | | 244,370 | |
| | | | |
|
| |
TOTAL AFFILIATED INVESTMENT COMPANIES | | | | | | 454,436 | |
| | | | |
|
| |
| | | | | | | |
Affiliated Portfolios—20.0% | | | | | | | |
HSBC Investor Growth Portfolio | | | | | | 810,714 | |
HSBC Investor International Equity Portfolio | | | | | | 606,824 | |
HSBC Investor Opportunity Portfolio | | | | | | 212,437 | |
HSBC Investor Value Portfolio | | | | | | 819,283 | |
| | | | |
|
| |
TOTAL AFFILIATED PORTFOLIOS | | | | | | 2,449,258 | |
| | | | |
|
| |
| | | | | | | |
Unaffiliated Investment Companies—76.2% | | | | | | | |
Cohen & Steers Institutional Global Realty Shares, Inc. | | | 945 | | | 18,543 | |
Delaware Emerging Markets Fund, Class I Shares | | | 3,202 | | | 44,765 | |
EII Global Property Fund, Institutional Shares | | | 1,370 | | | 18,156 | |
Franklin Total Return Fund, Advisor Shares | | | 220,227 | | | 2,199,164 | |
Goldman Sachs Emerging Markets Debt Fund, Class I Shares | | | 80,158 | | | 972,087 | |
Goldman Sachs High Yield Fund, Institutional Shares | | | 100,143 | | | 723,347 | |
Highbridge Statistical Market Neutral Fund, Select Shares | | | 21,565 | | | 336,839 | |
JPMorgan High Yield Fund, Select Shares | | | 89,924 | | | 730,386 | |
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) | | | 142,678 | | | 142,678 | |
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares | | | 811,207 | | | 811,207 | |
PIMCO Total Return Fund, Institutional Shares | | | 293,696 | | | 3,276,871 | |
Transamerica WMC Emerging Markets Fund, Class I Shares | | | 5,302 | | | 69,671 | |
| | | | |
|
| |
TOTAL UNAFFILIATED INVESTMENT COMPANIES | | | | | | 9,343,714 | |
| | | | |
|
| |
| | | | | | | |
Exchange Traded Funds—1.2% | | | | | | | |
Consumer Staples Select Sector SPDR Fund | | | 887 | | | 24,508 | |
Health Care Select Sector SPDR Fund | | | 856 | | | 26,476 | |
PowerShares Global Listed Private Equity Portfolio ETF | | | 3,681 | | | 37,105 | |
SPDR S&P International Consumer Staples Sector ETF | | | 739 | | | 20,869 | |
SPDR S&P International Health Care Sector ETF | | | 580 | | | 16,495 | |
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Exchange Traded Funds, continued | | | | | | | |
SPDR S&P International Telecommunications Sector ETF | | | 542 | | | 12,141 | |
Vanguard Telecommunication Services ETF | | | 124 | | | 7,026 | |
| | | | |
|
| |
TOTAL EXCHANGE TRADED FUNDS | | | | | | 144,620 | |
| | | | |
|
| |
TOTAL INVESTMENTS—101.1% | | | | | | 12,392,028 | |
| | | | |
|
| |
| | |
|
| Percentages indicated are based on net assets of $12,261,419. |
| | |
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
ETF | — Exchange Traded Fund |
SPDR | — Standard & Poor’s Depositary Receipt |
| | |
18 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
(This Page Intentionally Left Blank)
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | Aggressive
Strategy
Fund | | Balanced
Strategy
Fund | | Moderate
Strategy
Fund | | Conservative
Strategy
Fund | |
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | |
Investments in Affiliated Portfolios | | $ | 7,072,113 | | $ | 13,988,826 | | $ | 10,570,748 | | $ | 2,449,258 | |
Investments in Affiliated Funds, at value (a) | | | 797,221 | | | 1,804,919 | | | 1,526,520 | | | 454,436 | |
Investments in non-affiliates, at value | | | 4,198,878 | | | 18,310,037 | | | 24,248,107 | | | 9,488,334 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investments | | | 12,068,212 | | | 34,103,782 | | | 36,345,375 | | | 12,392,028 | |
| |
|
| |
|
| |
|
| |
|
| |
Receivable for capital shares issued | | | 128,457 | | | 195,961 | | | 104,209 | | | 25,756 | |
Receivable for investments sold | | | — | | | — | | | 997 | | | — | |
Reclaims receivable | | | 7,118 | | | 18,024 | | | 15,108 | | | 3,305 | |
Receivable from Investment Adviser | | | 1,111 | | | 1,362 | | | 1,472 | | | 489 | |
Prepaid expenses and other assets | | | 6,395 | | | 9,705 | | | 8,979 | | | 5,183 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 12,211,293 | | | 34,328,834 | | | 36,476,140 | | | 12,426,761 | |
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | |
Payable for investments purchased | | | 30,502 | | | 133,687 | | | 46,092 | | | 142,331 | |
Payable for capital shares redeemed | | | 55,029 | | | 19,253 | | | 20,492 | | | 1,828 | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | |
Investment Management | | | 482 | | | 1,362 | | | 1,472 | | | 489 | |
Administration | | | 185 | | | 524 | | | 565 | | | 188 | |
Distribution | | | 3,071 | | | 9,341 | | | 11,057 | | | 4,006 | |
Shareholder Servicing | | | 2,412 | | | 6,809 | | | 7,361 | | | 2,446 | |
Compliance Services | | | — | | | 2 | | | 9 | | | — | |
Transfer Agent | | | 8,593 | | | 11,451 | | | 15,013 | | | 7,500 | |
Trustee | | | 11 | | | 25 | | | 22 | | | 3 | |
Other | | | 3,887 | | | 15,807 | | | 19,522 | | | 6,551 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 104,172 | | | 198,261 | | | 121,605 | | | 165,342 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets: | | | | | | | | | | | | | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 12,107,121 | | $ | 34,130,573 | | $ | 36,354,535 | | $ | 12,261,419 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Composition of Net Assets: | | | | | | | | | | | | | |
Capital | | $ | 13,007,068 | | $ | 36,143,009 | | $ | 38,308,365 | | $ | 12,800,657 | |
Accumulated net investment income (loss) | | | (19,607 | ) | | 140,964 | | | 63,136 | | | 23,056 | |
Accumulated net realized gains (losses) from investment and foreign currency transactions | | | (1,728,422 | ) | | (4,401,806 | ) | | (4,362,315 | ) | | (1,214,633 | ) |
Unrealized appreciation/depreciation from investments and foreign currencies | | | 848,082 | | | 2,248,406 | | | 2,345,349 | | | 652,339 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Assets | | $ | 12,107,121 | | $ | 34,130,573 | | $ | 36,354,535 | | $ | 12,261,419 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Class A Shares | | $ | 6,976,779 | | $ | 18,397,961 | | $ | 18,183,475 | | $ | 5,543,463 | |
Class B Shares | | | 4,619,902 | | | 13,220,905 | | | 16,366,716 | | | 6,024,269 | |
Class C Shares | | | 510,440 | | | 2,511,707 | | | 1,804,344 | | | 693,687 | |
| |
|
| |
|
| |
|
| |
|
| |
| | $ | 12,107,121 | | $ | 34,130,573 | | $ | 36,354,535 | | $ | 12,261,419 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Shares Outstanding | | | | | | | | | | | | | |
($0.001 par value, unlimited number of shares authorized): | | | | | | | | | | | | | |
Class A Shares | | | 603,124 | | | 1,602,778 | | | 1,655,559 | | | 519,736 | |
Class B Shares | | | 414,906 | | | 1,151,654 | | | 1,491,172 | | | 570,772 | |
Class C Shares | | | 45,858 | | | 218,018 | | | 168,490 | | | 63,964 | |
Net Asset Value, Offering Price and Redemption Price per share: | | | | | | | | | | | | | |
Class A Shares | | $ | 11.57 | | $ | 11.48 | | $ | 10.98 | | $ | 10.67 | |
Class B Shares(b) | | $ | 11.13 | | $ | 11.48 | | $ | 10.98 | | $ | 10.55 | |
Class C Shares(b) | | $ | 11.13 | | $ | 11.52 | | $ | 10.71 | | $ | 10.84 | |
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 | | $ | 12.18 | | $ | 12.08 | | $ | 11.56 | | $ | 11.23 | |
| |
|
| |
|
| |
|
| |
|
| |
Investments in Affiliated Funds, at Cost | | $ | 779,317 | | $ | 1,840,237 | | $ | 1,500,323 | | $ | 578,055 | |
Investments in non-affiliates, at Cost | | $ | 3,978,897 | | $ | 17,168,347 | | $ | 33,318,648 | | $ | 6,886,985 | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
(a) | The investment in the affiliated funds is the HSBC Investor Prime Money Market Fund, Class I Shares and HSBC Investor Mid-Cap Fund, Class I Shares (See Note 1). |
| |
(b) | Redemption Price per share varies by length of time shares are held. |
| | |
20 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Operations—For the six months ended April 30, 2010 (Unaudited)
| | | | | | | | | | | | | |
| | Aggressive
Strategy
Fund | | Balanced
Strategy
Fund | | Moderate
Strategy
Fund | | Conservative
Strategy
Fund | |
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | |
Investment income from non-affiliates | | $ | 30,330 | | $ | 283,769 | | $ | 431,403 | | $ | 166,134 | |
Investment Income from Affiliated Portfolios (a) | | | 43,770 | | | 103,055 | | | 91,681 | | | 21,863 | |
Investment Income from Affiliated Fund | | | 47 | | | 179 | | | 653 | | | 647 | |
Tax reclaims (a) | | | 1,986 | | | (114 | ) | | 541 | | | 2,509 | |
Foreign tax withholding from Affiliated Portfolios (a) | | | (1,415 | ) | | (3,141 | ) | | (2,998 | ) | | (779 | ) |
Expenses from Affiliated Portfolios (a) | | | (29,459 | ) | | (65,849 | ) | | (54,981 | ) | | (12,150 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 45,259 | | | 317,899 | | | 466,299 | | | 178,224 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | |
Investment Management | | | 2,589 | | | 7,569 | | | 8,414 | | | 2,753 | |
Administration: | | | | | | | | | | | | | |
Class A Shares | | | 587 | | | 1,609 | | | 1,668 | | | 507 | |
Class B Shares | | | 400 | | | 1,158 | | | 1,480 | | | 519 | |
Class C Shares | | | 34 | | | 175 | | | 164 | | | 57 | |
Distribution: | | | | | | | | | | | | | |
Class B Shares | | | 15,228 | | | 44,726 | | | 56,401 | | | 19,799 | |
Class C Shares | | | 1,313 | | | 6,779 | | | 6,278 | | | 2,186 | |
Shareholder Servicing: | | | | | | | | | | | | | |
Class A Shares | | | 7,439 | | | 20,710 | | | 21,193 | | | 6,438 | |
Class B Shares | | | 5,079 | | | 14,907 | | | 18,806 | | | 6,599 | |
Class C Shares | | | 438 | | | 2,260 | | | 2,092 | | | 725 | |
Accounting | | | 9,428 | | | 9,428 | | | 9,428 | | | 9,428 | |
Compliance Service | | | 18 | | | 60 | | | 72 | | | 18 | |
Printing | | | 6,471 | | | 17,711 | | | 18,404 | | | 6,978 | |
Professional | | | 1,332 | | | 1,599 | | | 1,654 | | | 1,340 | |
Transfer Agent | | | 24,280 | | | 36,896 | | | 37,278 | | | 19,908 | |
Trustee | | | 63 | | | 185 | | | 203 | | | 63 | |
Registration fees | | | 5,182 | | | 3,867 | | | 6,730 | | | 1,948 | |
Other | | | 1,067 | | | 1,443 | | | 1,319 | | | 526 | |
| |
|
| |
|
| |
|
| |
|
| |
Total expenses before fee reductions | | | 80,948 | | | 171,082 | | | 191,584 | | | 79,792 | |
Fees reduced by Investment Adviser | | | (16,082 | ) | | (7,569 | ) | | (8,414 | ) | | (2,753 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Net Expenses | | | 64,866 | | | 163,513 | | | 183,170 | | | 77,039 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | (19,607 | ) | | 154,386 | | | 283,129 | | | 101,185 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments: (a) | | | | | | | | | | | | | |
Net realized gains (losses) from investments and foreign currency transactions | | | 392,904 | | | 947,576 | | | 823,970 | | | 184,663 | |
Net realized gains (losses) from non-affiliates investment transactions | | | (3,913 | ) | | 140,634 | | | 258,555 | | | 143,383 | |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 851,685 | | | 1,680,088 | | | 922,825 | | | 38,777 | |
Change in unrealized appreciation/depreciation from non-affiliates investments | | | 31,593 | | | 377,067 | | | 801,949 | | | 319,546 | |
| |
|
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains from investments and foreign currency transactions | | | 1,272,269 | | | 3,145,365 | | | 2,807,299 | | | 686,369 | |
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 1,252,662 | | $ | 3,299,751 | | $ | 3,090,428 | | $ | 787,554 | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
| | |
See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 21 |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets
| | | | | | | | | | | | | |
| | Aggressive Strategy Fund | | Balanced Strategy Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (19,607 | ) | $ | (19,050 | ) | $ | 154,386 | | $ | 121,934 | |
Net realized gains (losses) from investments transactions | | | 388,991 | | | (1,143,628 | ) | | 1,088,210 | | | (3,219,284 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 883,278 | | | 2,619,167 | | | 2,057,155 | | | 7,340,545 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 1,252,662 | | | 1,456,489 | | | 3,299,751 | | | 4,243,195 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | — | | | — | | | (120,819 | ) | | (139,550 | ) |
Class B Shares | | | — | | | — | | | (13,178 | ) | | (7,901 | ) |
Class C Shares | | | — | | | — | | | (2,103 | ) | | (1,544 | ) |
Net realized gains: | | | | | | | | | | | | | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | — | | | — | | | (136,100 | ) | | (148,995 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 1,372,170 | | | (31,438 | ) | | 2,959,596 | | | (447,939 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 2,624,832 | | | 1,425,051 | | | 6,123,247 | | | 3,646,261 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 9,482,289 | | | 8,057,238 | | | 28,007,326 | | | 24,361,065 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 12,107,121 | | $ | 9,482,289 | | $ | 34,130,573 | | $ | 28,007,326 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | (19,607 | ) | $ | — | | $ | 140,964 | | $ | 122,678 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
22 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Aggressive Strategy Fund | | Balanced Strategy Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 1,361,849 | | $ | 919,824 | | $ | 2,238,678 | | $ | 1,604,683 | |
Dividends reinvested | | | — | | | — | | | 118,661 | | | 138,893 | |
Value of shares redeemed | | | (538,750 | ) | | (913,945 | ) | | (975,785 | ) | | (2,526,023 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 823,099 | | | 5,879 | | | 1,381,554 | | | (782,447 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 683,673 | | | 424,668 | | | 1,546,547 | | | 935,667 | |
Dividends reinvested | | | — | | | — | | | 13,153 | | | 7,888 | |
Value of shares redeemed | | | (319,561 | ) | | (383,617 | ) | | (805,807 | ) | | (915,409 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 364,112 | | | 41,051 | | | 753,893 | | | 28,146 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 234,220 | | | 16,971 | | | 994,706 | | | 496,755 | |
Dividends reinvested | | | — | | | — | | | 2,040 | | | 1,544 | |
Value of shares redeemed | | | (49,261 | ) | | (95,339 | ) | | (172,597 | ) | | (191,937 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class C Shares capital transactions | | | 184,959 | | | (78,368 | ) | | 824,149 | | | 306,362 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Change in net assets resulting from capital transactions | | $ | 1,372,170 | | $ | (31,438 | ) | $ | 2,959,596 | | $ | (447,939 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 119,591 | | | 108,502 | | | 198,538 | | | 177,228 | |
Reinvested | | | — | | | — | | | 10,886 | | | 17,211 | |
Redeemed | | | (48,338 | ) | | (107,013 | ) | | (87,354 | ) | | (293,206 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class A Shares | | | 71,253 | | | 1,489 | | | 122,070 | | | (98,767 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Issued | | | 62,603 | | | 50,718 | | | 136,886 | | | 104,902 | |
Reinvested | | | — | | | — | | | 1,203 | | | 973 | |
Redeemed | | | (29,866 | ) | | (45,783 | ) | | (72,366 | ) | | (105,971 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class B Shares | | | 32,737 | | | 4,935 | | | 65,723 | | | (96 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Issued | | | 21,113 | | | 2,243 | | | 87,730 | | | 58,266 | |
Reinvested | | | — | | | — | | | 186 | | | 190 | |
Redeemed | | | (4,566 | ) | | (11,023 | ) | | (15,511 | ) | | (19,296 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in Class C Shares | | | 16,547 | | | (8,780 | ) | | 72,405 | | | 39,160 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class I Shares: | | | | | | | | | | | | | |
| | |
See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 23 |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Moderate Strategy Fund | | Conservative Strategy Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 283,129 | | $ | 304,905 | | $ | 101,185 | | $ | 110,589 | |
Net realized gains (losses) from investments transactions | | | 1,082,525 | | | (3,357,874 | ) | | 328,046 | | | (973,853 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 1,724,774 | | | 7,600,975 | | | 358,323 | | | 2,220,121 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 3,090,428 | | | 4,548,006 | | | 787,554 | | | 1,356,857 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Dividends: | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | |
Class A Shares | | | (161,983 | ) | | (193,616 | ) | | (50,136 | ) | | (71,561 | ) |
Class B Shares | | | (93,454 | ) | | (84,484 | ) | | (34,946 | ) | | (34,422 | ) |
Class C Shares | | | (10,985 | ) | | (9,513 | ) | | (4,342 | ) | | (3,180 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from shareholder dividends | | | (266,422 | ) | | (287,613 | ) | | (89,424 | ) | | (109,163 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from capital transactions | | | 1,903,069 | | | (620,407 | ) | | 1,112,967 | | | (322,434 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 4,727,075 | | | 3,639,986 | | | 1,811,097 | | | 925,260 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 31,627,460 | | | 27,987,474 | | | 10,450,322 | | | 9,525,062 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 36,354,535 | | $ | 31,627,460 | | $ | 12,261,419 | | $ | 10,450,322 | |
| |
|
| |
|
| |
|
| |
|
| |
Accumulated net investment income (loss) | | $ | 63,136 | | $ | 46,429 | | $ | 23,056 | | $ | 11,295 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
24 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | |
| | Moderate Strategy Fund | | Conservative Strategy Fund | |
|
|
|
|
|
|
| | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the
six months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
CAPITAL TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | $ | 2,118,615 | | $ | 1,737,577 | | $ | 841,920 | | $ | 845,986 | |
Dividends reinvested | | | 161,115 | | | 193,104 | | | 48,013 | | | 69,473 | |
Value of shares redeemed | | | (1,432,756 | ) | | (2,409,781 | ) | | (738,972 | ) | | (1,218,686 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class A Shares capital transactions | | | 846,974 | | | (479,100 | ) | | 150,961 | | | (303,227 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class B Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 1,812,380 | | | 1,513,370 | | | 1,139,617 | | | 770,085 | |
Dividends reinvested | | | 92,776 | | | 84,267 | | | 34,378 | | | 33,341 | |
Value of shares redeemed | | | (1,030,345 | ) | | (1,629,024 | ) | | (385,380 | ) | | (820,164 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Class B Shares capital transactions | | | 874,811 | | | (31,387 | ) | | 788,615 | | | (16,738 | ) |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | |
Proceeds from shares issued | | | 407,233 | | | 297,893 | | | 287,457 | | | 79,844 | |
Dividends reinvested | | | 10,888 | | | 9,424 | | | 4,172 | | | 3,101 | |
Value of shares redeemed | | | (236,837 | ) | | (417,237 | ) | | (118,238 | ) | | (85,414 | ) |
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Class C Shares capital transactions | | | 181,284 | | | (109,920 | ) | | 173,391 | | | (2,469 | ) |
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Change in net assets resulting from capital transactions | | $ | 1,903,069 | | $ | (620,407 | ) | $ | 1,112,967 | | $ | (322,434 | ) |
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SHARE TRANSACTIONS: | | | | | | | | | | | | | |
Class A Shares: | | | | | | | | | | | | | |
Issued | | | 197,298 | | | 194,386 | | | 80,117 | | | 94,440 | |
Reinvested | | | 15,013 | | | 22,198 | | | 4,583 | | | 7,802 | |
Redeemed | | | (134,164 | ) | | (275,784 | ) | | (70,561 | ) | | (133,563 | ) |
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Change in Class A Shares | | | 78,147 | | | (59,200 | ) | | 14,139 | | | (31,321 | ) |
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Class B Shares: | | | | | | | | | | | | | |
Issued | | | 167,722 | | | 172,132 | | | 109,333 | | | 87,053 | |
Reinvested | | | 8,631 | | | 9,836 | | | 3,310 | | | 3,828 | |
Redeemed | | | (96,547 | ) | | (191,599 | ) | | (37,149 | ) | | (91,989 | ) |
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Change in Class B Shares | | | 79,806 | | | (9,631 | ) | | 75,494 | | | (1,108 | ) |
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Class C Shares: | | | | | | | | | | | | | |
Issued | | | 38,848 | | | 33,657 | | | 26,977 | | | 8,443 | |
Reinvested | | | 1,038 | | | 1,125 | | | 391 | | | 348 | |
Redeemed | | | (22,632 | ) | | (49,433 | ) | | (11,041 | ) | | (8,952 | ) |
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Change in Class C Shares | | | 17,254 | | | (14,651 | ) | | 16,327 | | | (161 | ) |
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See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 25 |
|
AGGRESSIVE 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
Investments | | Total from
Investment
Activities | | Net Realized
Gains from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(i) | | $ | 10.00 | | | (0.01 | ) | | 0.61 | | | 0.60 | | | — | | | — | | $ | 10.60 | |
Year Ended October 31, 2006 | | $ | 10.60 | | | 0.01 | | | 2.01 | | | 2.02 | | | (0.05 | ) | | (0.05 | ) | | 12.57 | |
Year Ended October 31, 2007 | | $ | 12.57 | | | — | *(g) | | 2.98 | | | 2.98 | | | — | | | — | | | 15.55 | |
Year Ended October 31, 2008 | | $ | 15.55 | | | 0.02 | * | | (6.05 | ) | | (6.03 | ) | | (0.90 | ) | | (0.90 | ) | | 8.62 | |
Year Ended October 31, 2009 | | $ | 8.62 | | | 0.01 | * | | 1.57 | | | 1.58 | | | — | | | — | | | 10.20 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.20 | | | — | *(g) | | 1.37 | | | 1.37 | | | — | | | — | | | 11.57 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | $ | 10.00 | | | (0.04 | ) | | 0.61 | | | 0.57 | | | — | | | — | | $ | 10.57 | |
Year Ended October 31, 2006 | | $ | 10.57 | | | (0.05 | ) | | 1.97 | | | 1.92 | | | (0.05 | ) | | (0.05 | ) | | 12.44 | |
Year Ended October 31, 2007 | | $ | 12.44 | | | (0.11 | )* | | 2.94 | | | 2.83 | | | — | | | — | | | 15.27 | |
Year Ended October 31, 2008 | | $ | 15.27 | | | (0.08 | )* | | (5.90 | ) | | (5.98 | ) | | (0.90 | ) | | (0.90 | ) | | 8.39 | |
Year Ended October 31, 2009 | | $ | 8.39 | | | (0.06 | )* | | 1.53 | | | 1.47 | | | — | | | — | | | 9.86 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 9.86 | | | (0.04 | )* | | 1.31 | | | 1.27 | | | — | | | — | | | 11.13 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | $ | 10.00 | | | (0.05 | ) | | 0.60 | | | 0.55 | | | — | | | — | | $ | 10.55 | |
Year Ended October 31, 2006 | | $ | 10.55 | | | (0.04 | ) | | 1.95 | | | 1.91 | | | (0.05 | ) | | (0.05 | ) | | 12.41 | |
Year Ended October 31, 2007 | | $ | 12.41 | | | (0.11 | )* | | 2.96 | | | 2.85 | | | — | | | — | | | 15.26 | |
Year Ended October 31, 2008 | | $ | 15.26 | | | (0.08 | )* | | (5.89 | ) | | (5.97 | ) | | (0.90 | ) | | (0.90 | ) | | 8.39 | |
Year Ended October 31, 2009 | | $ | 8.39 | | | (0.05 | )* | | 1.51 | | | 1.46 | | | — | | | — | | | 9.85 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 9.85 | | | (0.04 | )* | | 1.32 | | | 1.28 | | | — | | | — | | | 11.13 | |
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| | | | | | | | | | | | | | | | | | | | |
| | | | | Ratios/Supplementary Data | |
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| | | 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
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) | | | | 6.00 | % | $ | 726 | | | 1.50 | % | | (0.20 | )% | | 11.72 | % | | 49.10 | % |
Year Ended October 31, 2006 | | | | 19.15 | % | | 4,116 | | | 1.50 | % | | 0.05 | % | | 3.52 | % | | 48.46 | % |
Year Ended October 31, 2007 | | | | 23.71 | % | | 7,046 | | | 1.50 | % | | (0.03 | )% | | 2.27 | % | | 45.50 | % |
Year Ended October 31, 2008 | | | | (40.92 | )%(f) | | 4,572 | | | 1.50 | % | | 0.13 | % | | 1.98 | % | | 72.33 | % |
Year Ended October 31, 2009 | | | | 18.33 | %(h) | | 5,426 | | | 1.50 | % | | 0.09 | % | | 2.16 | % | | 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 13.43 | % | | 6,977 | | | 1.50 | % | | (0.06 | )% | | 1.81 | % | | 22.38 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | | | 5.70 | % | $ | 700 | | | 2.25 | % | | (1.01 | )% | | 11.63 | % | | 49.10 | % |
Year Ended October 31, 2006 | | | | 18.25 | % | | 2,998 | | | 2.25 | % | | (0.70 | )% | | 4.33 | % | | 48.46 | % |
Year Ended October 31, 2007 | | | | 22.75 | % | | 4,942 | | | 2.25 | % | | (0.77 | )% | | 3.02 | % | | 45.50 | % |
Year Ended October 31, 2008 | | | | (41.36 | )%(f) | | 3,166 | | | 2.25 | % | | (0.62 | )% | | 2.73 | % | | 72.33 | % |
Year Ended October 31, 2009 | | | | 17.52 | %(h) | | 3,767 | | | 2.25 | % | | (0.66 | )% | | 2.91 | % | | 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 12.88 | % | | 4,620 | | | 2.25 | % | | (0.81 | )% | | 2.56 | % | | 22.38 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | | | 5.50 | % | $ | 21 | | | 2.25 | % | | (1.15 | )% | | 9.79 | % | | 49.10 | % |
Year Ended October 31, 2006 | | | | 18.19 | % | | 229 | | | 2.25 | % | | (0.69 | )% | | 4.20 | % | | 48.46 | % |
Year Ended October 31, 2007 | | | | 22.97 | % | | 528 | | | 2.25 | % | | (0.79 | )% | | 2.99 | % | | 45.50 | % |
Year Ended October 31, 2008 | | | | (41.32 | )%(f) | | 319 | | | 2.25 | % | | (0.64 | )% | | 2.73 | % | | 72.33 | % |
Year Ended October 31, 2009 | | | | 17.40 | %(h) | | 289 | | | 2.25 | % | | (0.59 | )% | | 2.93 | % | | 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 12.99 | % | | 510 | | | 2.25 | % | | (0.81 | )% | | 2.56 | % | | 22.38 | % |
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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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
| |
(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 each 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 by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investments companies by their corresponding 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) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(g) | Rounds to less than $0.01 or $(0.01). |
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(h) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
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(i) | Class A Shares commenced operations on February 14, 2005. |
| |
(j) | Class B Shares commenced operations on February 9, 2005. |
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(k) | Class C Shares commenced operations on June 9, 2005. |
| |
26 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
BALANCED 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
Investments | | Total from
Investment
Activities | | Net
Investment
Income | | Net Realized
Gains
from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(i) | | $ | 10.00 | | | 0.02 | | | 0.70 | | | 0.72 | | | — | | | — | | | — | | $ | 10.72 | |
Year Ended October 31, 2006 | | $ | 10.72 | | | 0.07 | | | 1.69 | | | 1.76 | | | — | | | (0.03 | ) | | (0.03 | ) | | 12.45 | |
Year Ended October 31, 2007 | | $ | 12.45 | | | 0.11 | * | | 2.34 | | | 2.45 | | | (0.08 | ) | | (0.09 | ) | | (0.17 | | | 14.73 | |
Year Ended October 31, 2008 | | $ | 14.73 | | | 0.12 | * | | (5.21 | ) | | (5.09 | ) | | (0.09 | ) | | (0.74 | ) | | (0.83 | ) | | 8.81 | |
Year Ended October 31, 2009 | | $ | 8.81 | | | 0.07 | * | | 1.55 | | | 1.62 | | | (0.09 | ) | | — | | | (0.09 | ) | | 10.34 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.34 | | | 0.07 | * | | 1.15 | | | 1.22 | | | (0.08 | ) | | — | | | (0.08 | ) | | 11.48 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | $ | 10.00 | | | (0.01 | ) | | 0.79 | | | 0.78 | | | — | | | — | | | — | | $ | 10.78 | |
Year Ended October 31, 2006 | | $ | 10.78 | | | 0.02 | | | 1.66 | | | 1.68 | | | — | | | (0.03 | ) | | (0.03 | ) | | 12.43 | |
Year Ended October 31, 2007 | | $ | 12.43 | | | 0.01 | * | | 2.34 | | | 2.35 | | | (0.02 | ) | | (0.09 | ) | | (0.11 | ) | | 14.67 | |
Year Ended October 31, 2008 | | $ | 14.67 | | | 0.03 | * | | (5.20 | ) | | (5.17 | ) | | — | (l) | | (0.74 | ) | | (0.74 | ) | | 8.76 | |
Year Ended October 31, 2009 | | $ | 8.76 | | | 0.01 | * | | 1.55 | | | 1.56 | | | (0.01 | ) | | — | | | (0.01 | ) | | 10.31 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.31 | | | 0.03 | * | | 1.15 | | | 1.18 | | | (0.01 | ) | | — | | | (0.01 | ) | | 11.48 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | $ | 10.00 | | | (0.02 | ) | | 0.84 | | | 0.82 | | | — | | | — | | | — | | $ | 10.82 | |
Year Ended October 31, 2006 | | $ | 10.82 | | | 0.02 | | | 1.67 | | | 1.69 | | | — | | | (0.03 | ) | | (0.03 | ) | | 12.48 | |
Year Ended October 31, 2007 | | $ | 12.48 | | | 0.01 | * | | 2.35 | | | 2.36 | | | (0.01 | ) | | (0.09 | ) | | (0.10 | ) | | 14.74 | |
Year Ended October 31, 2008 | | $ | 14.74 | | | 0.03 | * | | (5.22 | ) | | (5.19 | ) | | (0.01 | ) | | (0.74 | ) | | (0.75 | ) | | 8.80 | |
Year Ended October 31, 2009 | | $ | 8.80 | | | 0.01 | * | | 1.55 | | | 1.56 | | | (0.01 | ) | | — | | | (0.01 | ) | | 10.35 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.35 | | | 0.04 | * | | 1.14 | | | 1.18 | | | (0.01 | ) | | — | | | (0.01 | ) | | 11.52 | |
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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
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) | | | | 7.20 | % | $ | 2,814 | | | 1.50 | % | | 0.42 | % | | 5.19 | % | | 69.23 | % |
Year Ended October 31, 2006 | | | | 16.41 | % | | 12,562 | | | 1.50 | % | | 0.87 | % | | 2.19 | % | | 80.30 | % |
Year Ended October 31, 2007 | | | | 19.92 | %(f) | | 21,352 | | | 1.50 | % | | 0.84 | % | | 1.65 | % | | 73.45 | % |
Year Ended October 31, 2008 | | | | (36.43 | )%(g) | | 13,908 | | | 1.50 | % | | 0.98 | % | | 1.53 | % | | 78.59 | % |
Year Ended October 31, 2009 | | | | 18.66 | %(h) | | 15,304 | | | 1.50 | % | | 0.84 | % | | 1.57 | % | | 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 11.85 | % | | 18,398 | | | 1.18 | % | | 1.35 | % | | 1.23 | % | | 26.86 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | | | 7.80 | % | $ | 2,670 | | | 2.25 | % | | (0.38 | )% | | 5.74 | % | | 69.23 | % |
Year Ended October 31, 2006 | | | | 15.57 | % | | 8,702 | | | 2.25 | % | | 0.11 | % | | 2.94 | % | | 80.30 | % |
Year Ended October 31, 2007 | | | | 18.98 | %(f) | | 13,905 | | | 2.25 | % | | 0.09 | % | | 2.40 | % | | 73.45 | % |
Year Ended October 31, 2008 | | | | (36.95 | )%(g) | | 9,516 | | | 2.25 | % | | 0.24 | % | | 2.28 | % | | 78.59 | % |
Year Ended October 31, 2009 | | | | 17.80 | %(h) | | 11,196 | | | 2.25 | % | | 0.08 | % | | 2.31 | % | | 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 11.47 | % | | 13,221 | | | 1.93 | % | | 0.61 | % | | 1.98 | % | | 26.86 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | | | 8.20 | % | $ | 106 | | | 2.25 | % | | (0.55 | )% | | 5.24 | % | | 69.23 | % |
Year Ended October 31, 2006 | | | | 15.61 | % | | 585 | | | 2.25 | % | | 0.14 | % | | 2.90 | % | | 80.30 | % |
Year Ended October 31, 2007 | | | | 19.04 | %(f) | | 1,273 | | | 2.25 | % | | 0.07 | % | | 2.39 | % | | 73.45 | % |
Year Ended October 31, 2008 | | | | (36.94 | )%(g) | | 937 | | | 2.25 | % | | 0.25 | % | | 2.29 | % | | 78.59 | % |
Year Ended October 31, 2009 | | | | 17.81 | %(h) | | 1,507 | | | 2.25 | % | | 0.06 | % | | 2.30 | % | | 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 11.44 | % | | 2,512 | | | 1.92 | % | | 0.64 | % | | 1.97 | % | | 26.86 | % |
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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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
| |
(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 each 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, affiliated and unaffiliated investment companies by their corresponding 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) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests 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. |
| |
(g) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.15%, 0.15% and 0.15% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(h) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | Class A Shares commenced operations on February 8, 2005. |
| |
(j) | Class B Shares commenced operations on February 1, 2005. |
| |
(k) | Class C Shares commenced operations on April 27, 2005. |
| |
(l) | Rounds to less than $0.01. |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 27 |
|
MODERATE 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
Investments | | Total from
Investment
Activities | | Net
Investment
Income | | Net Realized
Gains
from
Investment
Transactions | | Return
of
Capital | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | $ | 10.00 | | | 0.04 | | | 0.45 | | | 0.49 | | | — | (f) | | — | | | — | | | — | (f) | $ | 10.49 | |
Year Ended October 31, 2006 | | $ | 10.49 | | | 0.17 | | | 1.23 | | | 1.40 | | | (0.17 | ) | | (0.01 | ) | | — | | | (0.18 | ) | | 11.71 | |
Year Ended October 31, 2007 | | $ | 11.71 | | | 0.21 | * | | 1.65 | | | 1.86 | | | (0.20 | ) | | (0.10 | ) | | — | | | (0.30 | ) | | 13.27 | |
Year Ended October 31, 2008 | | $ | 13.27 | | | 0.20 | * | | (4.08 | ) | | (3.88 | ) | | (0.19 | ) | | (0.50 | ) | | (0.01 | ) | | (0.70 | ) | | 8.69 | |
Year Ended October 31, 2009 | | $ | 8.69 | | | 0.13 | * | | 1.39 | | | 1.52 | | | (0.12 | ) | | — | | | — | | | (0.12 | ) | | 10.09 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.09 | | | 0.11 | * | | 0.88 | | | 0.99 | | | (0.10 | ) | | — | | | — | | | (0.10 | ) | | 10.98 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | $ | 10.00 | | | 0.01 | | | 0.49 | | | 0.50 | | | — | (f) | | — | | | — | | | —(f | ) | $ | 10.50 | |
Year Ended October 31, 2006 | | $ | 10.50 | | | 0.09 | | | 1.22 | | | 1.31 | | | (0.08 | ) | | (0.01 | ) | | — | | | (0.09 | ) | | 11.72 | |
Year Ended October 31, 2007 | | $ | 11.72 | | | 0.12 | * | | 1.65 | | | 1.77 | | | (0.12 | ) | | (0.10 | ) | | — | | | (0.22 | ) | | 13.27 | |
Year Ended October 31, 2008 | | $ | 13.27 | | | 0.11 | * | | (4.08 | ) | | (3.97 | ) | | (0.10 | ) | | (0.50 | ) | | (0.01 | ) | | (0.61 | ) | | 8.69 | |
Year Ended October 31, 2009 | | $ | 8.69 | | | 0.06 | * | | 1.39 | | | 1.45 | | | (0.06 | ) | | — | | | — | | | (0.06 | ) | | 10.08 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.08 | | | 0.07 | * | | 0.90 | | | 0.97 | | | (0.07 | ) | | — | | | — | | | (0.07 | ) | | 10.98 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(l) | | $ | 10.00 | | | — | (f) | | 0.28 | | | 0.28 | | | — | | | — | | | — | | | — | | $ | 10.28 | |
Year Ended October 31, 2006 | | $ | 10.28 | | | 0.09 | | | 1.19 | | | 1.28 | | | (0.08 | ) | | (0.01 | ) | | — | | | (0.09 | ) | | 11.47 | |
Year Ended October 31, 2007 | | $ | 11.47 | | | 0.12 | * | | 1.60 | | | 1.72 | | | (0.12 | ) | | (0.10 | ) | | — | | | (0.22 | ) | | 12.97 | |
Year Ended October 31, 2008 | | $ | 12.97 | | | 0.11 | * | | (3.97 | ) | | (3.86 | ) | | (0.11 | ) | | (0.50 | ) | | (0.01 | ) | | (0.62 | ) | | 8.49 | |
Year Ended October 31, 2009 | | $ | 8.49 | | | 0.06 | * | | 1.35 | | | 1.41 | | | (0.06 | ) | | — | | | — | | | (0.06 | ) | | 9.84 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 9.84 | | | 0.07 | * | | 0.87 | | | 0.94 | | | (0.07 | ) | | — | | | — | | | (0.07 | ) | | 10.71 | |
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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
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(j) | | | | 4.94 | % | $ | 3,241 | | | 1.50 | % | | 0.95 | % | | 4.30 | % | | 84.55 | % |
Year Ended October 31, 2006 | | | | 13.40 | % | | 11,973 | | | 1.50 | % | | 1.65 | % | | 2.12 | % | | 101.57 | % |
Year Ended October 31, 2007 | | | | 16.12 | %(g) | | 20,140 | | | 1.50 | % | | 1.70 | % | | 1.60 | % | | 92.87 | % |
Year Ended October 31, 2008 | | | | (30.65 | )%(h) | | 14,226 | | | 1.48 | % | | 1.75 | % | | 1.48 | % | | 79.86 | % |
Year Ended October 31, 2009 | | | | 17.75 | %(i) | | 15,909 | | | 1.44 | % | | 1.47 | % | | 1.49 | % | | 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 9.96 | % | | 18,183 | | | 1.04 | % | | 2.05 | % | | 1.09 | % | | 30.01 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | | | 5.03 | % | $ | 3,604 | | | 2.25 | % | | 0.18 | % | | 5.01 | % | | 84.55 | % |
Year Ended October 31, 2006 | | | | 12.45 | % | | 10,731 | | | 2.25 | % | | 0.91 | % | | 2.87 | % | | 101.57 | % |
Year Ended October 31, 2007 | | | | 15.25 | %(g) | | 16,513 | | | 2.25 | % | | 0.95 | % | | 2.35 | % | | 92.87 | % |
Year Ended October 31, 2008 | | | | (31.17 | )%(h) | | 12,354 | | | 2.23 | % | | 1.00 | % | | 2.23 | % | | 79.86 | % |
Year Ended October 31, 2009 | | | | 16.82 | %(i) | | 14,230 | | | 2.19 | % | | 0.71 | % | | 2.24 | % | | 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 9.59 | % | | 16,367 | | | 1.79 | % | | 1.31 | % | | 1.84 | % | | 30.01 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(l) | | | | 2.80 | % | $ | 278 | | | 2.25 | % | | 0.05 | % | | 4.69 | % | | 84.55 | % |
Year Ended October 31, 2006 | | | | 12.53 | % | | 763 | | | 2.25 | % | | 0.87 | % | | 2.83 | % | | 101.57 | % |
Year Ended October 31, 2007 | | | | 15.20 | %(g) | | 1,766 | | | 2.25 | % | | 0.95 | % | | 2.33 | % | | 92.87 | % |
Year Ended October 31, 2008 | | | | (31.09 | )%(h) | | 1,408 | | | 2.23 | % | | 1.00 | % | | 2.23 | % | | 79.86 | % |
Year Ended October 31, 2009 | | | | 16.75 | %(i) | | 1,488 | | | 2.19 | % | | 0.72 | % | | 2.24 | % | | 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 9.54 | % | | 1,804 | | | 1.79 | % | | 1.31 | % | | 1.84 | % | | 30.01 | % |
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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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
| |
(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 each 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, affiliated and unaffiliated investment companies by their corresponding 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 or $(0.01). |
| |
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests 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. |
| |
(h) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.09%, 0.09% and 0.09% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(j) | Class A Shares commenced operations on February 3, 2005. |
| |
(k) | Class B Shares commenced operations on February 1, 2005. |
| |
(l) | Class C Shares commenced operations on June 9, 2005. |
| |
28 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
CONSERVATIVE 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
Investments | | Total from
Investment
Activities | | Net
Investment
Income | | Net Realized
Gains
from
Investment
Transactions | | Total
Dividends | | Net Asset
Value, End
of Period | |
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CLASS A SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(j) | | $ | 10.00 | | | 0.04 | | | 0.26 | | | 0.30 | | | (0.01 | ) | | — | | | (0.01 | ) | $ | 10.29 | |
Year Ended October 31, 2006 | | $ | 10.29 | | | 0.22 | | | 0.85 | | | 1.07 | | | (0.25 | ) | | — | | | (0.25 | ) | | 11.11 | |
Year Ended October 31, 2007 | | $ | 11.11 | | | 0.29 | * | | 1.03 | | | 1.32 | | | (0.27 | ) | | (0.12 | ) | | (0.39 | ) | | 12.04 | |
Year Ended October 31, 2008 | | $ | 12.04 | | | 0.24 | * | | (2.93 | ) | | (2.69 | ) | | (0.25 | ) | | (0.26 | ) | | (0.51 | ) | | 8.84 | |
Year Ended October 31, 2009 | | $ | 8.84 | | | 0.14 | * | | 1.16 | | | 1.30 | | | (0.13 | ) | | — | | | (0.13 | ) | | 10.01 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.01 | | | 0.11 | * | | 0.65 | | | 0.76 | | | (0.10 | ) | | — | | | (0.10 | ) | | 10.67 | |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | $ | 10.00 | | | 0.03 | | | 0.16 | | | 0.19 | | | — | (f) | | — | | | — | (f) | $ | 10.19 | |
Year Ended October 31, 2006 | | $ | 10.19 | | | 0.15 | | | 0.83 | | | 0.98 | | | (0.16 | ) | | — | | | (0.16 | ) | | 11.01 | |
Year Ended October 31, 2007 | | $ | 11.01 | | | 0.20 | * | | 1.05 | | | 1.25 | | | (0.20 | ) | | (0.12 | ) | | (0.32 | ) | | 11.94 | |
Year Ended October 31, 2008 | | $ | 11.94 | | | 0.16 | * | | (2.91 | ) | | (2.75 | ) | | (0.17 | ) | | (0.26 | ) | | (0.43 | ) | | 8.76 | |
Year Ended October 31, 2009 | | $ | 8.76 | | | 0.07 | * | | 1.15 | | | 1.22 | | | (0.07 | ) | | — | | | (0.07 | ) | | 9.91 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 9.91 | | | 0.08 | * | | 0.63 | | | 0.71 | | | (0.07 | ) | | — | | | (0.07 | ) | | 10.55 | |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(l) | | $ | 10.00 | | | 0.03 | | | 0.38 | | | 0.41 | | | — | | | — | | | — | | $ | 10.41 | |
Year Ended October 31, 2006 | | $ | 10.41 | | | 0.15 | | | 0.85 | | | 1.00 | | | (0.17 | ) | | — | | | (0.17 | ) | | 11.24 | |
Year Ended October 31, 2007 | | $ | 11.24 | | | 0.21 | * | | 1.11 | | | 1.32 | | | (0.19 | ) | | (0.12 | ) | | (0.31 | ) | | 12.25 | |
Year Ended October 31, 2008 | | $ | 12.25 | | | 0.16 | * | | (2.98 | ) | | (2.82 | ) | | (0.17 | ) | | (0.26 | ) | | (0.43 | ) | | 9.00 | |
Year Ended October 31, 2009 | | $ | 9.00 | | | 0.07 | * | | 1.18 | | | 1.25 | | | (0.07 | ) | | — | | | (0.07 | ) | | 10.18 | |
Six Months Ended April 30, 2010 (Unaudited) | | $ | 10.18 | | | 0.08 | * | | 0.65 | | | 0.73 | | | (0.07 | ) | | — | | | (0.07 | ) | | 10.84 | |
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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
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(j) | | | | 2.96 | % | $ | 1,054 | | | 1.50 | % | | 1.28 | % | | 8.01 | % | | 72.14 | % |
Year Ended October 31, 2006 | | | | 10.48 | % | | 3,069 | | | 1.50 | % | | 2.33 | % | | 3.22 | % | | 96.58 | % |
Year Ended October 31, 2007 | | | | 12.13 | %(g) | | 6,669 | | | 1.50 | % | | 2.52 | % | | 2.06 | % | | 88.67 | % |
Year Ended October 31, 2008 | | | | (23.17 | )%(h) | | 4,747 | | | 1.50 | % | | 2.24 | % | | 1.72 | % | | 68.74 | % |
Year Ended October 31, 2009 | | | | 14.95 | %(i) | | 5,059 | | | 1.50 | % | | 1.53 | % | | 1.62 | % | | 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 7.62 | % | | 5,543 | | | 1.22 | % | | 2.22 | % | | 1.27 | % | | 31.55 | % |
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CLASS B SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(k) | | | | 1.92 | % | $ | 1,306 | | | 2.25 | % | | 0.53 | % | | 9.21 | % | | 72.14 | % |
Year Ended October 31, 2006 | | | | 9.65 | % | | 2,567 | | | 2.25 | % | | 1.54 | % | | 3.98 | % | | 96.58 | % |
Year Ended October 31, 2007 | | | | 11.51 | %(g) | | 4,928 | | | 2.25 | % | | 1.77 | % | | 2.82 | % | | 88.67 | % |
Year Ended October 31, 2008 | | | | (23.76 | )%(h) | | 4,348 | | | 2.25 | % | | 1.48 | % | | 2.48 | % | | 68.74 | % |
Year Ended October 31, 2009 | | | | 14.05 | %(i) | | 4,907 | | | 2.25 | % | | 0.77 | % | | 2.38 | % | | 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 7.14 | % | | 6,024 | | | 1.97 | % | | 1.50 | % | | 2.02 | % | | 31.55 | % |
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CLASS C SHARES | | | | | | | | | | | | | | | | | | | | |
Period Ended October 31, 2005(l) | | | | 4.10 | % | $ | 82 | | | 2.25 | % | | 0.66 | % | | 7.94 | % | | 72.14 | % |
Year Ended October 31, 2006 | | | | 9.66 | % | | 320 | | | 2.25 | % | | 1.56 | % | | 3.92 | % | | 96.58 | % |
Year Ended October 31, 2007 | | | | 11.97 | %(g) | | 437 | | | 2.25 | % | | 1.78 | % | | 2.85 | % | | 88.67 | % |
Year Ended October 31, 2008 | | | | (23.73 | )%(h) | | 430 | | | 2.25 | % | | 1.46 | % | | 2.48 | % | | 68.74 | % |
Year Ended October 31, 2009 | | | | 13.97 | %(i) | | 485 | | | 2.25 | % | | 0.78 | % | | 2.37 | % | | 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) | | | | 7.19 | % | | 694 | | | 1.97 | % | | 1.50 | % | | 2.02 | % | | 31.55 | % |
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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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
| |
(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 each 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 affiliated and unaffiliated investment companies by their corresponding 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 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 year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(i) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares and Class C Shares, respectively. |
| |
(j) | Class A Shares commenced operations on February 23, 2005. |
| |
(k) | Class B Shares commenced operations on February 17, 2005. |
| |
(l) | Class C Shares commenced operations on April 19, 2005. |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 29 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (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, 2010, the Trust is comprised of 15 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 “World Selection Funds”): |
| |
Fund | Short Name |
|
|
HSBC Investor Aggressive Strategy Fund | Aggressive Strategy Fund |
HSBC Investor Balanced Strategy Fund | Balanced Strategy Fund |
HSBC Investor Moderate Strategy Fund | Moderate Strategy Fund |
HSBC Investor Conservative Strategy Fund | Conservative Strategy Fund |
| |
| The World Selection Funds are 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. |
| |
| Each of the World Selection Funds is a “fund of funds,” meaning that it seeks to achieve its investment objective by investing primarily in a combination of mutual funds managed by HSBC Global Asset Management (USA) Inc. (the “Investment Adviser”) (the “Affiliated Underlying Funds”), as well as mutual funds managed by other investment advisers and exchange-traded funds (“Unaffiliated Underlying Funds” and, together with the Affiliated Underlying Funds, the “Underlying Funds”). Each Fund may also purchase and hold exchange-traded notes (“ETNs”). The Underlying Funds may include private equity funds and real estate funds that are organized as mutual funds or Exchange Traded Funds (“ETFs”). Each World Selection Fund invests according to the investment objectives and strategies described in its Prospectus. |
| |
| The World Selection Funds currently invest in the 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”), each of which is a diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements in addition to receiving investments from the World Selection Funds. |
| |
| 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 World Selection Funds. |
| |
| The World Selection 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 three classes of shares: Class A Shares, Class B Shares and Class C Shares. Class A Shares of the World Selection Funds have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the World Selection 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 World Selection 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. Each class of shares in the World Selection 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 World Selection Funds’ Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the World Selection Funds. In addition, in the normal course of business, the Trust enters into contracts with its service providers, which also provide for indemnifications by the World Selection Funds. The World Selection Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the World Selection Funds. However, based on experience, the Trust expects the risk of loss to be remote. |
| |
30 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
2. | Significant Accounting Policies: |
| |
| The following is a summary of the significant accounting policies followed by the World Selection 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 certain 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements. |
| |
| Securities Valuation: |
| |
| The World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds. The World Selection Funds record their investments in the Portfolios at fair value. The underlying securities of the Portfolios are recorded at fair value, respectively, as more fully discussed in the notes to those financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value in funds or portfolios in which the World Selection Funds are invested are described in their respective notes to financial statements. |
| |
| Investment Transactions and Related Income: |
| |
| The World Selection Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolios. Dividend income is recorded on the ex-dividend date for the Underlying Funds. Changes in holdings of the Underlying Funds for each World Selection Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Underlying Funds are reflected as of trade date. In addition, the World Selection Funds accrue their own expenses daily as incurred. |
| |
| 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 unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
| |
| Dividends to Shareholders: |
| |
| Dividends to shareholders from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Strategy Fund and Conservative Strategy Fund, and annually in the case of the Aggressive Strategy Fund and Balanced Strategy Fund. |
| |
| The World Selection Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the World Selection 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 World Selection 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 to shareholders 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. |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 31 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Redemption Fee: |
| |
| Prior to February 28, 2010 a redemption fee of 2.00% was charged and recorded as paid-in-capital for any shares redeemed or exchanged after being held for less than 30 days. This fee did not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that could not implement the fee. The Trustees have approved the removal of such redemption fee effective February 28, 2010. For the fiscal years ended October 31, 2009 and period ended April 30, 2010, respectively, the following World Selection Funds collected redemption fees as follows: |
| | | | | | | | | | | |
Fund | | Fees Collected
October 31, 2009 | | Fees Collected
April 30, 2010 | |
| |
| |
| |
Aggressive Strategy Fund | | | $ | 47 | | | | $ | 3 | | |
Balanced Strategy Fund | | | | 431 | | | | | 11 | | |
Moderate Strategy Fund | | | | 259 | | | | | 10 | | |
Conservative Strategy Fund | | | | 63 | | | | | 1 | | |
| | | |
| 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. |
| | | |
| Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
| | | |
| New Accounting Pronouncements: |
| | | |
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trust’s financial statements and related disclosures. |
| | | |
3. | Investment Valuation Summary: |
| | | |
| The valuation techniques employed by the World Selection Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the World Selection Funds’ investments are summarized in the three broad levels listed below: |
| | | |
| | • Level 1: | quoted prices in active markets for identical assets |
| | | |
| | • Level 2: | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
| | | |
| | • Level 3: | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
| | | |
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. |
| | | |
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the World Selection Funds’ investments based upon the three levels defined above: |
| |
32 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | | | | | | | |
| | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
| |
| |
| |
| |
| |
Aggressive Strategy Fund | | | | | | | | | | | | | |
Investment Companies: | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 797,221 | | $ | — | | $ | — | | $ | 797,221 | |
Affiliated Portfolios (a) | | | — | | | 7,072,113 | | | — | | | 7,072,113 | |
Unaffiliated Investment Companies | | | 3,438,995 | | | — | | | — | | | 3,438,995 | |
Exchange Traded Funds | | | 759,883 | | | — | | | — | | | 759,883 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Companies | | $ | 4,996,099 | | $ | 7,072,113 | | $ | — | | $ | 12,068,212 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Balanced Strategy Fund | | | | | | | | | | | | | |
Investment Companies: | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 1,804,919 | | $ | — | | $ | — | | $ | 1,804,919 | |
Affiliated Portfolios (a) | | | — | | | 13,988,826 | | | — | | | 13,988,826 | |
Unaffiliated Investment Companies | | | 16,551,032 | | | — | | | — | | | 16,551,032 | |
Exchange Traded Funds | | | 1,759,005 | | | — | | | — | | | 1,759,005 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Companies | | $ | 20,114,956 | | $ | 13,988,826 | | $ | — | | $ | 34,103,782 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Moderate Strategy Fund | | | | | | | | | | | | | |
Investment Companies: | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 1,526,520 | | $ | — | | $ | — | | $ | 1,526,520 | |
Affiliated Portfolios (a) | | | — | | | 10,570,748 | | | — | | | 10,570,748 | |
Unaffiliated Investment Companies | | | 23,102,945 | | | — | | | — | | | 23,102,945 | |
Exchange Traded Funds | | | 1,145,162 | | | — | | | — | | | 1,145,162 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Companies | | $ | 25,774,627 | | $ | 10,570,748 | | $ | — | | $ | 36,345,375 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Conservative Fund | | | | | | | | | | | | | |
Investment Companies: | | | | | | | | | | | | | |
Affiliated Investment Companies | | $ | 454,436 | | $ | — | | $ | — | | $ | 454,436 | |
Affiliated Portfolios (a) | | | — | | | 2,449,258 | | | — | | | 2,449,258 | |
Unaffiliated Investment Companies | | | 9,343,714 | | | — | | | — | | | 9,343,714 | |
Exchange Traded Funds | | | 144,620 | | | — | | | — | | | 144,620 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Companies | | $ | 9,942,770 | | $ | 2,449,258 | | $ | — | | $ | 12,392,028 | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
(a) | Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder fund structure, the inputs used for valuing these investments are categorized as Level 2. |
| |
4. | Related Party Transactions: |
| |
| Investment Management: |
| |
| 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 World Selection Funds. As Investment Adviser, HSBC manages the investments of the World Selection Funds and continuously reviews, supervises and administers the World Selection 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. The Investment Adviser is voluntarily waiving all of the fee for each of the World Selection Funds. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/ reimbursements may be stopped at any time. |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 33 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Administration: |
| |
| HSBC serves the World Selection Funds as Administrator. Under the terms of the Administration Agreement, HSBC received from the World Selection Funds (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at an annual rate of: |
| | | | |
Based on Average Daily Net Assets of | | Fee Rate | |
| |
| |
Up to $10 billion | | | 0.0550% | |
In excess of $10 billion but not exceeding $20 billion | | | 0.0350% | |
In excess of $20 billion but not exceeding $50 billion | | | 0.0275% | |
In excess of $50 billion | | | 0.0250% | |
| |
| 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 World Selection Funds, the Portfolios pay half of the administration fee and the World Selection Funds pay half, for a combination of the total fee rate above. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios in master-feeder structures. An amount equal to 50% of the administration fees is deemed to be class-specific. |
| |
| 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 Sub-Administrator for the Trust and the HSBC Investor Family of Funds (collectively, the “Trusts”) 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 $134,557 for the period ended April 30, 2010, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Services.” Citi Ohio pays the salary and other compensation earned by individuals performing these services, as employees of Citi Ohio. |
| |
| Distribution Arrangements: |
| |
| 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 “Distribution Plan”) pursuant to Rule 12b-1 of the Act. The Distribution 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 World Selection Funds, respectively. As of the most recent fiscal period, Foreside, as Distributor, also received $284,730, $198,003, and $19,382 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $30, $6, and $— were reallocated to HSBC-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 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 0.25%, 0.25% and 0.25% of the average daily net assets of Class A Shares, Class B Shares and Class C Shares of the World Selection 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 and 1.00% of the average daily net assets of Class B Shares and Class C Shares. |
| |
| Fund Accounting, Transfer Agency and Trustees: |
| |
| Citi Ohio provides fund accounting and transfer agency services for the Trusts. As transfer agent, 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, Citi Ohio receives an annual fee per fund and share class, subject to minimums and reimbursement of certain expenses. |
| |
34 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| Each non-interested Trustees is compensated with a $60,000 annual Board retainer for service as a Trustee of the Trusts and Portfolio Trust, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts and Portfolio Trust. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
| Fee Reductions: |
| |
| The Investment Adviser has agreed to contractually limit through March 1, 2011 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the World Selection Funds. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: Class A Shares 1.50%, Class B Shares 2.25%, Class C Shares 2.25%. |
| |
| Any amounts contractually waived or reimbursed by the Investment Adviser will be subject to repayment by the Fund to the Investment Adviser within three years to the extent that the repayment will not cause the Fund’s operating expenses to exceed the contractual expense limit that was in effect at the time of such waiver or reimbursement. During the period ended April 30, 2010, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2010, the repayments that may potentially be made by the Funds are as follows: |
| | | | | | | | | | | | |
Fund | | 2013($)* | | | 2012($)* | | | 2011($)* | | | 2010($)* | |
| |
| | |
| | |
| | |
| |
Aggressive Strategy Fund | | 13,496 | | | 49,257 | | | 51,467 | | | 71,425 | |
Balanced Strategy Fund | | — | | | 3,289 | | | — | | | 29,729 | |
Moderate Strategy Fund | | — | | | — | | | — | | | 14,225 | |
Conservative Strategy Fund | | — | | | 6,592 | | | 20,961 | | | 40,321 | |
| |
|
* | The year listed above the amounts is the fiscal year ending in which the amounts will no longer be recoupable. |
| |
| 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. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable. |
| |
5. | Investment Transactions: |
| |
| Aggregate contributions and withdrawals of the Underlying Portfolios for the period ended April 30, 2010 totaled: |
| | | | | | | |
Fund | | Contributions | | Withdrawals | |
| |
| |
| |
Aggressive Strategy Fund | | $ | 1,427,048 | | $ | 5,040,551 | |
Balanced Strategy Fund | | | 1,639,768 | | | 13,533,820 | |
Moderate Strategy Fund | | | 1,386,799 | | | 13,050,346 | |
Conservative Strategy Fund | | | 488,079 | | | 3,010,495 | |
| |
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
| | | | | | | | |
Fund | | Purchases | | | Sales | |
| |
| | |
| |
Aggressive Strategy Fund | | $ | 5,061,167 | | | $ | 299,877 | |
Balanced Strategy Fund | | $ | 17,465,017 | | | $ | 3,105,697 | |
Moderate Strategy Fund | | $ | 20,564,129 | | | $ | 5,766,023 | |
Conservative Strategy Fund | | $ | 7,506,754 | | | $ | 1,998,280 | |
| |
6. | Federal Tax Information: |
| |
| At April 30, 2010, the cost basis of securities (which excludes investments in the Affiliated Portfolios) for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows: |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 35 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | | | | | | | | |
Fund | | | Tax Cost
($) | | | Tax
Unrealized
Appreciation
($) | | | Tax
Unrealized
Depreciation
($) | | | Net Unrealized
Appreciation/
(Depreciation)
($) | |
| | |
| | |
| | |
| | |
| |
Aggressive Strategy Fund | | 11,189,629 | | | 878,392 | | | (30,310 | ) | | | 848,082 | |
Balanced Strategy Fund | | 33,970,095 | | | 2,299,221 | | | (50,815 | ) | | | 2,248,406 | |
Moderate Strategy Fund | | 33,954,931 | | | 2,400,493 | | | (55,145 | ) | | | 2,245,348 | |
Conservative Strategy Fund | | 11,597,358 | | | 669,477 | | | (17,138 | ) | | | 652,339 | |
The tax character of dividends paid by the World Selection Funds as of the latest tax year ended October 31, 2009 was as follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | Dividends paid from | | | | | | |
| | |
| | | | | | |
Fund | | | | Ordinary
Income | | | Net
Long Term
Capital
Gains | | | Total
Taxable
Dividends | | | | Total
Dividends
Paid* | |
| | | |
| | |
| | |
| | | |
| |
Aggressive Strategy Fund | | | $ | — | | | $ | | | — | | | $ | — | | | | $ | — | |
Balanced Strategy Fund | | | | 148,995 | | | | | | — | | | | 148,995 | | | | | 148,995 | |
Moderate Strategy Fund | | | | 287,613 | | | | | | — | | | | 287,613 | | | | | 287,613 | |
Conservative Strategy Fund | | | | 109,163 | | | | | | — | | | | 109,163 | | | | | 109,163 | |
| | |
|
|
| * | Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
| | |
| As of the latest tax year ended October 31, 2009, the components of accumulated earnings/(deficit) on a tax basis for the World Selection Funds were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fund | | | | Undistributed
Ordinary
Income | | | Undistributed
Long Term
Capital Gains | | | Accumulated
Earnings | | | | Accumulated
Capital
and Other
Losses | | | | Unrealized
Appreciation/
(Depreciation) | | | | Total
Accumulated
Earnings/
(Deficit) | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | |
Aggressive Strategy Fund | | | $ | — | | | $ | | | — | | | $ | — | | | | $ | (2,039,823 | ) | | | $ | (112,786 | ) | | | $ | (2,152,609 | ) | |
Balanced Strategy Fund | | | | 122,678 | | | | | | — | | | | 122,678 | | | | | (5,334,226 | ) | | | | 35,461 | | | | | (5,176,087 | ) | |
Moderate Strategy Fund | | | | 46,429 | | | | | | — | | | | 46,429 | | | | | (5,325,093 | ) | | | | 500,828 | | | | | (4,777,836 | ) | |
Conservative Strategy Fund | | | | 11,295 | | | | | | — | | | | 11,295 | | | | | (1,518,116 | ) | | | | 269,453 | | | | | (1,237,368 | ) | |
| | |
|
|
| (1) | The differences between book-basis and tax-basis unrealized appreciation/depreciation 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. |
| | |
| As of the latest tax year ended October 31, 2009, the following World Selection Funds have net capital loss carryfor-wards, 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 | |
| | |
| |
| |
Aggressive Strategy Fund | | $ | 911,837 | | | 2016 | |
Aggressive Strategy Fund | | | 1,127,986 | | | 2017 | |
Balanced Strategy Fund | | | 2,102,771 | | | 2016 | |
Balanced Strategy Fund | | | 3,231,455 | | | 2017 | |
Moderate Strategy Fund | | | 1,920,789 | | | 2016 | |
Moderate Strategy Fund | | | 3,404,304 | | | 2017 | |
Conservative Strategy Fund | | | 522,074 | | | 2016 | |
Conservative Strategy Fund | | | 996,042 | | | 2017 | |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Funds. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Funds will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Fund will be disclosed in the Financial Highlights after the date of payment. |
| |
36 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) |
| |
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
| |
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
| |
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
| |
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
| |
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
| |
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and 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 Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 37 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The 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. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
| | |
| | The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
| | |
| | The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
| | |
| | With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
| | |
| | The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
| | |
| | The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
| | |
38 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
| |
HSBC INVESTOR WORLD SELECTION FUNDS | 39 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases or redemptions of shares; 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 do not include expenses from the underlying investment companies in which the Funds’ invests.
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, 2009 through April 30, 2010.
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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| | | |
| |
| |
| | |
| |
Aggressive Strategy Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,134.30 | | | | $ | 7.94 | | | | 1.50% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,128.80 | | | | | 11.88 | | | | 2.25% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,129.90 | | | | | 11.88 | | | | 2.25% | |
Balanced Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,118.50 | | | | | 6.15 | | | | 1.17% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,114.70 | | | | | 10.07 | | | | 1.92% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,114.40 | | | | | 10.07 | | | | 1.92% | |
Moderate Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,099.60 | | | | | 5.41 | | | | 1.04% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,095.90 | | | | | 9.30 | | | | 1.79% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,095.40 | | | | | 9.30 | | | | 1.79% | |
Conservative Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,076.20 | | | | | 6.28 | | | | 1.22% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,071.40 | | | | | 10.12 | | | | 1.97% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,071.90 | | | | | 10.12 | | | | 1.97% | |
| |
|
* | 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). |
| |
40 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 (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 the ongoing costs of investing in a fund and other funds. To do so, 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) on purchases and redemptions of shares (if applicable). 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| | | |
| |
| |
| | |
| |
Aggressive Strategy Fund | | Class A Shares | | | $ | 1,000.00 | | | | $ | 1,017.36 | | | | $ | 7.50 | | | | 1.50% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,013.64 | | | | | 11.23 | | | | 2.25% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,013.64 | | | | | 11.23 | | | | 2.25% | |
Balanced Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.99 | | | | | 5.86 | | | | 1.17% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.27 | | | | | 9.59 | | | | 1.92% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.27 | | | | | 9.59 | | | | 1.92% | |
Moderate Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,019.64 | | | | | 5.21 | | | | 1.04% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.92 | | | | | 8.95 | | | | 1.79% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.92 | | | | | 8.95 | | | | 1.79% | |
Conservative Strategy Fund | | Class A Shares | | | | 1,000.00 | | | | | 1,018.74 | | | | | 6.11 | | | | 1.22% | |
| | Class B Shares | | | | 1,000.00 | | | | | 1,015.03 | | | | | 9.84 | | | | 1.97% | |
| | Class C Shares | | | | 1,000.00 | | | | | 1,015.03 | | | | | 9.84 | | | | 1.97% | |
| |
|
* | 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 WORLD SELECTION FUNDS | 41 |
Other Information:
Information regarding how the Funds and Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) 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; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Funds and Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Funds’ and Portfolios’ Forms N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Funds’ and Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Funds’ and Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com.
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.
| |
42 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR GROWTH PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.3% | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 10.4% | | | | | | | |
Amazon.com, Inc. (a) | | | 11,900 | | | 1,631,014 | |
Kohl’s Corp. (a) | | | 20,100 | | | 1,105,299 | |
New Oriental Education &
Technology Group, Inc. ADR (a) | | | 7,600 | | | 711,132 | |
O’Reilly Automotive, Inc. (a) | | | 22,300 | | | 1,090,247 | |
Priceline.com, Inc. (a) | | | 7,600 | | | 1,991,580 | |
Target Corp. | | | 18,300 | | | 1,040,721 | |
The Estee Lauder Cos., Inc., Class A | | | 9,400 | | | 619,648 | |
Urban Outfitters, Inc. (a) | | | 38,800 | | | 1,455,388 | |
| | | | |
|
| |
| | | | | | 9,645,029 | |
| | | | |
|
| |
Consumer Staples – 4.5% | | | | | | | |
Costco Wholesale Corp. | | | 22,300 | | | 1,317,484 | |
PepsiCo, Inc. | | | 14,800 | | | 965,256 | |
Staples, Inc. | | | 38,400 | | | 903,552 | |
Yum! Brands, Inc. | | | 22,900 | | | 971,418 | |
| | | | |
|
| |
| | | | | | 4,157,710 | |
| | | | |
|
| |
Energy – 9.0% | | | | | | | |
Dresser-Rand Group, Inc. (a) | | | 29,500 | | | 1,040,760 | |
EOG Resources, Inc. | | | 8,500 | | | 953,020 | |
First Solar, Inc. (a) | | | 4,800 | | | 689,040 | |
FMC Technologies, Inc. (a) | | | 14,500 | | | 981,505 | |
Occidental Petroleum Corp. | | | 10,900 | | | 966,394 | |
Peabody Energy Corp. | | | 24,500 | | | 1,144,640 | |
Schlumberger Ltd. | | | 35,900 | | | 2,563,978 | |
| | | | |
|
| |
| | | | | | 8,339,337 | |
| | | | |
|
| |
Financials – 7.1% | | | | | | | |
Goldman Sachs Group, Inc. | | | 12,500 | | | 1,815,000 | |
IntercontinentalExchange, Inc. (a) | | | 7,700 | | | 898,051 | |
Invesco Ltd. | | | 16,800 | | | 386,232 | |
JP Morgan Chase & Co. | | | 61,000 | | | 2,597,380 | |
The Charles Schwab Corp. | | | 46,400 | | | 895,056 | |
| | | | |
|
| |
| | | | | | 6,591,719 | |
| | | | |
|
| |
Health Care – 8.9% | | | | | | | |
Celgene Corp. (a) | | | 22,400 | | | 1,387,680 | |
Express Scripts, Inc. (a) | | | 12,800 | | | 1,281,664 | |
Gilead Sciences, Inc. (a) | | | 11,600 | | | 460,172 | |
Medco Health Solutions, Inc. (a) | | | 40,600 | | | 2,392,152 | |
Shire plc ADR | | | 13,700 | | | 902,008 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 31,600 | | | 1,855,868 | |
| | | | |
|
| |
| | | | | | 8,279,544 | |
| | | | |
|
| |
Industrials – 12.9% | | | | | | | |
C.H. Robinson Worldwide, Inc. | | | 16,100 | | | 970,830 | |
Danaher Corp. | | | 29,400 | | | 2,477,832 | |
Deere & Co. | | | 16,000 | | | 957,120 | |
Flowserve Corp. | | | 7,900 | | | 905,182 | |
Fluor Corp. | | | 16,600 | | | 877,144 | |
Illinois Tool Works, Inc. | | | 27,600 | | | 1,410,360 | |
Union Pacific Corp. | | | 33,600 | | | 2,542,176 | |
United Technologies Corp. | | | 25,200 | | | 1,888,740 | |
| | | | |
|
| |
| | | | | | 12,029,384 | |
| | | | |
|
| |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Information Technology – 40.2% | | | | | | | |
Agilent Technologies, Inc. (a) | | | 23,400 | | | 848,484 | |
Apple, Inc. (a) | | | 16,800 | | | 4,386,816 | |
Baidu, Inc. ADR (a) | | | 1,565 | | | 1,078,755 | |
Broadcom Corp., Class A | | | 27,400 | | | 945,026 | |
Cisco Systems, Inc. (a) | | | 100,200 | | | 2,697,384 | |
Citrix Systems, Inc. (a) | | | 19,300 | | | 907,100 | |
Cognizant Technology Solutions Corp. (a) | | | 59,700 | | | 3,055,446 | |
Dell, Inc. (a) | | | 60,100 | | | 972,418 | |
EMC Corp. (a) | | | 58,600 | | | 1,113,986 | |
Equinix, Inc. (a) | | | 13,900 | | | 1,399,035 | |
Google, Inc., Class A (a) | | | 4,000 | | | 2,101,760 | |
Hewlett-Packard Co. | | | 63,000 | | | 3,274,110 | |
Juniper Networks, Inc. (a) | | | 17,700 | | | 502,857 | |
Lam Research Corp. (a) | | | 24,800 | | | 1,005,640 | |
Linear Technology Corp. | | | 27,400 | | | 823,644 | |
Marvell Technology Group Ltd. (a) | | | 65,000 | | | 1,342,250 | |
MasterCard, Inc., Class A | | | 5,000 | | | 1,240,200 | |
Microsoft Corp. | | | 51,500 | | | 1,572,810 | |
Oracle Corp. | | | 72,500 | | | 1,873,400 | |
QUALCOMM, Inc. | | | 54,300 | | | 2,103,582 | |
Salesforce.com, Inc. (a) | | | 5,400 | | | 462,240 | |
Visa, Inc., Class A | | | 35,600 | | | 3,212,188 | |
VMware, Inc., Class A (a) | | | 7,900 | | | 486,956 | |
| | | | |
|
| |
| | | | | | 37,406,087 | |
| | | | |
|
| |
Materials – 3.3% | | | | | | | |
Cliffs Natural Resources, Inc. | | | 20,900 | | | 1,306,877 | |
Ecolab, Inc. | | | 17,900 | | | 874,236 | |
Freeport-McMoRan Copper & Gold, Inc. | | | 11,700 | | | 883,701 | |
| | | | |
|
| |
| | | | | | 3,064,814 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $74,469,535) | | | | | | 89,513,624 | |
| | | | |
|
| |
| | | | | | | |
Investment Companies—3.0% | | | | | | | |
|
|
Northern Institutional Diversified Assets
Portfolio, Institutional Shares, 0.01% (b) | | | 2,770,934 | | | 2,770,934 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $2,770,934) | | | | | | 2,770,934 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $77,240,469) — 99.3% | | | | | | 92,284,558 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $92,928,102. |
| |
ADR — American Depositary Receipt |
PLC — Public Limited Company |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 43 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—97.6% | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Australia – 4.6% | | | | | | | |
Australia & New Zealand Banking
Group Ltd. | | | 122,800 | | | 2,719,353 | |
BHP Billiton Ltd. | | | 36,500 | | | 1,334,019 | |
Boral Ltd. | | | 53,500 | | | 289,161 | |
Macquarie Group Ltd. | | | 18,300 | | | 834,303 | |
National Australia Bank Ltd. | | | 113,565 | | | 2,900,842 | |
Telstra Corp. Ltd. | | | 513,500 | | | 1,504,179 | |
| | | | |
|
| |
| | | | | | 9,581,857 | |
| | | | |
|
| |
Austria – 0.4% | | | | | | | |
OMV AG | | | 21,700 | | | 775,309 | |
| | | | |
|
| |
Belgium – 0.3% | | | | | | | |
KBC Groep NV (a) | | | 15,200 | | | 679,995 | |
| | | | |
|
| |
Brazil – 0.5% | | | | | | | |
Banco Do Brasil SA | | | 60,000 | | | 1,035,579 | |
| | | | |
|
| |
Canada – 4.2% | | | | | | | |
Encana Corp. | | | 16,000 | | | 529,394 | |
Industrial Alliance Insurance and
Financial Services, Inc. | | | 26,100 | | | 900,585 | |
National Bank of Canada | | | 26,600 | | | 1,626,647 | |
Nexen, Inc. | | | 78,892 | | | 1,918,890 | |
Penn West Energy Trust | | | 35,660 | | | 718,818 | |
Suncor Energy, Inc. | | | 62,428 | | | 2,136,261 | |
WestJet Airlines Ltd. (a) | | | 59,300 | | | 788,331 | |
| | | | |
|
| |
| | | | | | 8,618,926 | |
| | | | |
|
| |
Denmark – 2.1% | | | | | | | |
Carlsberg A/S, Class B | | | 25,625 | | | 2,071,326 | |
Danske Bank A/S (a) | | | 84,800 | | | 2,214,274 | |
| | | | |
|
| |
| | | | | | 4,285,600 | |
| | | | |
|
| |
Finland – 1.8% | | | | | | | |
Nokia Oyj | | | 296,400 | | | 3,623,217 | |
| | | | |
|
| |
France – 13.3% | | | | | | | |
BNP Paribas SA | | | 60,698 | | | 4,168,618 | |
Bouygues SA | | | 20,200 | | | 1,000,787 | |
Casino Guichard-Perrachon SA | | | 17,000 | | | 1,500,466 | |
Compagnie de Saint-Gobain | | | 45,800 | | | 2,260,669 | |
Compagnie Generale de
Geophysique-Veritas (a) | | | 31,800 | | | 957,266 | |
Credit Agricole SA | | | 60,739 | | | 868,163 | |
Electricite de France | | | 42,900 | | | 2,298,902 | |
France Telecom SA | | | 113,600 | | | 2,486,598 | |
Klepierre | | | 25,400 | | | 875,190 | |
Lagardere S.C.A. | | | 46,400 | | | 1,871,226 | |
Sanofi-Aventis | | | 52,700 | | | 3,594,690 | |
Societe Generale | | | 38,481 | | | 2,054,612 | |
Vallourec SA | | | 4,772 | | | 950,390 | |
Vivendi | | | 100,220 | | | 2,628,703 | |
| | | | |
|
| |
| | | | | | 27,516,280 | |
| | | | |
|
| |
Germany – 8.5% | | | | | | | |
Allianz SE | | | 35,000 | | | 4,001,898 | |
Bayer AG | | | 45,800 | | | 2,935,568 | |
Bayerische Motoren Werke AG | | | 60,400 | | | 2,983,631 | |
Deutsche Bank AG | | | 38,200 | | | 2,637,899 | |
E.ON AG | | | 91,100 | | | 3,368,846 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Germany, continued | | | | | | | |
Muenchener Rueckversicherungs-
Gesellschaft AG | | | 5,100 | | | 720,030 | |
Thyssenkrupp AG | | | 29,000 | | | 942,886 | |
| | | | |
|
| |
| | | | | | 17,590,758 | |
| | | | |
|
| |
Hong Kong – 1.5% | | | | | | | |
Esprit Holdings Ltd. | | | 259,477 | | | 1,858,754 | |
New World Development Co. Ltd. | | | 720,509 | | | 1,278,015 | |
| | | | |
|
| |
| | | | | | 3,136,769 | |
| | | | |
|
| |
India – 0.0% | | | | | | | |
State Bank of India GDR | | | 450 | | | 45,812 | |
| | | | |
|
| |
Italy – 3.6% | | | | | | | |
ENI SpA | | | 81,100 | | | 1,812,315 | |
Telecom Italia RSP (a) | | | 920,000 | | | 1,038,109 | |
Telecom Italia SpA (a) | | | 1,289,400 | | | 1,802,496 | |
UniCredit SpA (a) | | | 1,048,600 | | | 2,747,742 | |
| | | | |
|
| |
| | | | | | 7,400,662 | |
| | | | |
|
| |
Japan – 23.0% | | | | | | | |
AEON Co. Ltd. | | | 81,200 | | | 929,864 | |
Air Water, Inc. | | | 26,000 | | | 287,744 | |
Asahi Breweries Ltd. | | | 73,000 | | | 1,311,537 | |
Dowa Holdings Co. Ltd. | | | 89,000 | | | 494,163 | |
East Japan Railway Co. | | | 11,800 | | | 789,473 | |
Elpida Memory, Inc. (a) | | | 47,200 | | | 1,005,648 | |
Isuzu Motors Ltd. (a) | | | 382,000 | | | 1,215,582 | |
ITOCHU Corp. | | | 179,000 | | | 1,551,043 | |
Japan Tobacco, Inc. | | | 743 | | | 2,575,237 | |
JFE Holdings, Inc. | | | 44,000 | | | 1,569,374 | |
JX Holdings, Inc. (a) | | | 187,000 | | | 1,043,314 | |
KDDI Corp. | | | 279 | | | 1,345,420 | |
KONAMI Corp. | | | 11,700 | | | 227,028 | |
Konica Minolta Holdings, Inc. | | | 48,000 | | | 607,259 | |
Mitsubishi Corp. | | | 110,900 | | | 2,627,407 | |
Mitsubishi Gas Chemical Co., Inc. | | | 148,000 | | | 892,577 | |
Mitsubishi Materials Corp. (a) | | | 245,000 | | | 734,465 | |
Mitsui & Co. Ltd. | | | 149,000 | | | 2,239,693 | |
Mitsui Fudosan Co. Ltd. | | | 142,000 | | | 2,630,156 | |
Murata Manufacturing Co. Ltd. | | | 37,200 | | | 2,201,798 | |
NAMCO BANDAI Holdings, Inc. | | | 102,800 | | | 1,025,935 | |
NGK Spark Plug Co. Ltd. | | | 66,000 | | | 895,726 | |
Nippon Telegraph & Telephone Corp. | | | 63,000 | | | 2,564,735 | |
Nissan Motor Co. Ltd. (a) | | | 371,400 | | | 3,232,126 | |
Sharp Corp. | | | 134,000 | | | 1,735,847 | |
Sony Corp. | | | 59,110 | | | 2,024,190 | |
Sumitomo Mitsui Financial Group, Inc. | | | 69,800 | | | 2,308,783 | |
Sumitomo Realty & Development Co. Ltd. | | | 27,000 | | | 554,100 | |
Takashimaya Co. Ltd. | | | 101,000 | | | 957,692 | |
The Furukawa Electric Co. Ltd. | | | 123,000 | | | 609,791 | |
The Tokyo Electric Power Co., Inc. | | | 72,700 | | | 1,824,800 | |
Tokyo Gas Co. Ltd. | | | 221,000 | | | 939,302 | |
Toshiba Corp. (a) | | | 441,000 | | | 2,542,570 | |
| | | | |
|
| |
| | | | | | 47,494,379 | |
| | | | |
|
| |
Jersey – 0.3% | | | | | | | |
Informa plc | | | 94,200 | | | 568,462 | |
| | | | |
|
| |
| | |
44 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Kazakhstan – 0.4% | | | | | | | |
KazMunaiGas Exploration Production GDR | | | 31,650 | | | 773,883 | |
| | | | |
|
| |
Netherlands – 2.1% | | | | | | | |
Koninklijke DSM NV | | | 28,200 | | | 1,259,455 | |
Randstad Holding NV (a) | | | 60,200 | | | 3,049,905 | |
| | | | |
|
| |
| | | | | | 4,309,360 | |
| | | | |
|
| |
New Zealand – 0.3% | | | | | | | |
Telecom Corp. of New Zealand Ltd. | | | 442,923 | | | 686,556 | |
| | | | |
|
| |
Norway – 0.4% | | | | | | | |
Petroleum Geo-Services ASA (a) | | | 54,750 | | | 753,837 | |
| | | | |
|
| |
Russian Federation – 0.3% | | | | | | | |
Gazprom OAO ADR | | | 25,100 | | | 576,201 | |
| | | | |
|
| |
South Korea – 2.0% | | | | | | | |
Hynix Semiconductor, Inc. (a) | | | 40,400 | | | 1,022,683 | |
KB Financial Group, Inc. ADR | | | 35,779 | | | 1,746,015 | |
Samsung Electronics Co. Ltd., Preferred | | | 2,900 | | | 1,370,739 | |
| | | | |
|
| |
| | | | | | 4,139,437 | |
| | | | |
|
| |
Spain – 3.2% | | | | | | | |
Banco Santander SA | | | 325,469 | | | 4,137,960 | |
Telefonica SA | | | 106,700 | | | 2,414,892 | |
| | | | |
|
| |
| | | | | | 6,552,852 | |
| | | | |
|
| |
Sweden – 0.7% | | | | | | | |
Electrolux AB, B Shares | | | 58,600 | | | 1,507,596 | |
| | | | |
|
| |
Switzerland – 1.6% | | | | | | | |
Novartis AG | | | 63,940 | | | 3,261,026 | |
| | | | |
|
| |
Taiwan – 1.0% | | | | | | | |
AU Optronics Corp. | | | 1,134,030 | | | 1,306,945 | |
Compal Electronics, Inc. | | | 804 | | | 1,118 | |
United Microelectronics Corp. (a) | | | 1,470,000 | | | 739,773 | |
| | | | |
|
| |
| | | | | | 2,047,836 | |
| | | | |
|
| |
Turkey – 0.7% | | | | | | | |
Turkiye Garanti Bankasi AS | | | 308,700 | | | 1,496,110 | |
| | | | |
|
| |
United Kingdom – 20.8% | | | | | | | |
AstraZeneca plc | | | 77,900 | | | 3,441,577 | |
BAE Systems plc | | | 248,700 | | | 1,303,277 | |
Barclays plc | | | 553,900 | | | 2,844,814 | |
BP plc | | | 544,700 | | | 4,750,039 | |
Imperial Tobacco Group plc | | | 33,300 | | | 948,495 | |
Inchcape plc (a) | | | 1,239,400 | | | 648,853 | |
Kazakhmys plc | | | 52,000 | | | 1,101,476 | |
Marks & Spencer Group plc | | | 370,600 | | | 2,072,053 | |
Old Mutual plc (a) | | | 1,161,500 | | | 2,049,562 | |
Rentokil Initial plc (a) | | | 273,400 | | | 530,160 | |
Rio Tinto plc | | | 62,900 | | | 3,251,424 | |
Rolls-Royce Group plc | | | 289,600 | | | 2,551,380 | |
Royal Dutch Shell plc, A Shares | | | 200,987 | | | 6,305,823 | |
Thomas Cook Group plc | | | 175,500 | | | 665,648 | |
Travis Perkins plc (a) | | | 65,900 | | | 850,987 | |
Tui Travel plc | | | 208,700 | | | 890,202 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
United Kingdom, continued | | | | | | | |
Vodafone Group plc | | | 2,629,958 | | | 5,826,644 | |
Xstrata plc | | | 181,550 | | | 2,977,634 | |
| | | | |
|
| |
| | | | | | 43,010,048 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $207,498,152) | | | | | | 201,468,347 | |
| | | | |
|
| |
| | | | | | | |
Investment Company—1.0% | | | | | | | |
|
|
Northern Institutional Diversified Assets
Portfolio, Institutional Shares, 0.01% (b) | | | 2,025,228 | | | 2,025,228 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $2,025,228) | | | | | | 2,025,228 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $209,523,380) — 98.6% | | | | | | 203,493,575 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $206,344,851. |
| |
ADR — American Depositary Receipt |
GDR — Global Depositary Receipt |
PLC — Public Limited Company |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 45 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
At April 30, 2010 the portfolio’s open foreign currency contracts were as follows:
| | | | | | | | | | | | | | | | | | |
Currency | | Delivery
Date | | Amount
(Local
Currency) | | Contract
Value
(U.S. Dollars)
($) | | Value
($) | | Unrealized
Appreciation/
(Depreciation)
($) | |
| |
| |
| |
| |
| |
| |
SHORT CONTRACTS | | | | | | | | | | | | | | | | | | |
European Euro | | 7/15/2010 | | | 3,283,000 | | | | 4,415,537 | | | | 4,371,540 | | | 43,997 | | |
| | | | |
| | | |
| | |
|
| | |
| | |
| | | | | | | | | | | | | | | | 43,997 | | |
| | | | | | | | | | | | | | | |
| | |
The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2010:
| | | | |
Industry | | | Percent of
Net Assets |
| | |
|
|
Aerospace & Defense | | | 1.9% | |
Airlines | | | 0.4% | |
Auto Components | | | 0.4% | |
Automobiles | | | 3.6% | |
Beverages | | | 1.6% | |
Building Products | | | 1.1% | |
Capital Markets | | | 1.7% | |
Chemicals | | | 1.2% | |
Commercial Banks | | | 15.2% | |
Commercial Services & Supplies | | | 0.3% | |
Communications Equipment | | | 1.8% | |
Computers & Peripherals | | | 1.2% | |
Construction & Engineering | | | 0.5% | |
Construction Materials | | | 0.1% | |
Distributors | | | 0.3% | |
Diversified Financial Services | | | 0.8% | |
Diversified Telecommunication Services | | | 6.1% | |
Electric Utilities | | | 3.6% | |
Electrical Equipment | | | 0.3% | |
Electronic Equipment, Instruments & Components | | | 1.7% | |
Energy Equipment & Services | | | 0.8% | |
Food & Staples Retailing | | | 1.2% | |
Gas Utilities | | | 0.5% | |
Hotels, Restaurants & Leisure | | | 0.8% | |
Household Durables | | | 2.6% | |
Insurance | | | 3.7% | |
Leisure Equipment & Products | | | 0.5% | |
Machinery | | | 0.5% | |
Media | | | 2.5% | |
Metals & Mining | | | 6.0% | |
Investment Companies | | | 1.0% | |
Multiline Retail | | | 1.5% | |
Office Electronics | | | 0.3% | |
Oil, Gas & Consumable Fuels | | | 10.3% | |
Pharmaceuticals | | | 6.4% | |
Professional Services | | | 1.5% | |
Real Estate Investment Trusts (REITS) | | | 0.4% | |
Real Estate Management & Development | | | 2.2% | |
Road & Rail | | | 0.4% | |
Semiconductors & Semiconductor Equipment | | | 2.0% | |
Software | | | 0.1% | |
Specialty Retail | | | 0.9% | |
Tobacco | | | 1.7% | |
Trading Companies & Distributors | | | 3.5% | |
Wireless Telecommunication Services | | | 3.5% | |
| | |
|
|
Total Investments | | | 98.6% | |
| | |
|
|
| | |
46 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.9% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 14.7% | | | | | | | |
American Eagle Outfitters, Inc. | | | 135,050 | | | 2,270,190 | |
Ctrip.com International Ltd. ADR (a) | | | 61,500 | | | 2,245,980 | |
DeVry, Inc. | | | 22,550 | | | 1,406,895 | |
Discovery Communications, Inc., Class A (a) | | | 56,950 | | | 2,203,965 | |
Gentex Corp. | | | 99,000 | | | 2,127,510 | |
Hibbett Sports, Inc. (a) | | | 81,550 | | | 2,242,625 | |
Hospitality Properties Trust | | | 53,300 | | | 1,411,917 | |
O’Reilly Automotive, Inc. (a) | | | 44,200 | | | 2,160,938 | |
Scientific Games Corp., Class A (a) | | | 139,700 | | | 2,054,987 | |
WMS Industries, Inc. (a) | | | 48,550 | | | 2,428,471 | |
| | | | |
|
| |
| | | | | | 20,553,478 | |
| | | | |
|
| |
Consumer Staples – 3.4% | | | | | | | |
Church & Dwight Co., Inc. | | | 33,500 | | | 2,319,875 | |
Ralcorp Holdings, Inc. (a) | | | 35,600 | | | 2,369,180 | |
| | | | |
|
| |
| | | | | | 4,689,055 | |
| | | | |
|
| |
Energy – 11.7% | | | | | | | |
Consol Energy, Inc. | | | 77,880 | | | 3,479,678 | |
Denbury Resources, Inc. (a) | | | 173,900 | | | 3,330,185 | |
Ensco International plc ADR | | | 57,700 | | | 2,722,286 | |
Exterran Holdings, Inc. (a) | | | 99,800 | | | 2,909,170 | |
Massey Energy Co. | | | 105,350 | | | 3,858,971 | |
| | | | |
|
| |
| | | | | | 16,300,290 | |
| | | | |
|
| |
Financials – 4.7% | | | | | | | |
Credicorp Ltd. | | | 22,550 | | | 1,958,693 | |
First Horizon National Corp. (a) | | | 1 | | | 13 | |
Huntington Bancshares, Inc. | | | 93,800 | | | 635,026 | |
MSCI, Inc., Class A (a) | | | 43,400 | | | 1,503,810 | |
Waddell & Reed Financial, Inc., Class A | | | 68,000 | | | 2,524,160 | |
| | | | |
|
| |
| | | | | | 6,621,702 | |
| | | | |
|
| |
Health Care – 19.5% | | | | | | | |
Alexion Pharmaceuticals, Inc. (a) | | | 92,250 | | | 5,062,680 | |
Charles River Laboratories
International, Inc. (a) | | | 69,400 | | | 2,323,512 | |
DaVita, Inc. (a) | | | 48,800 | | | 3,046,584 | |
Elan Corp. plc ADR (a) | | | 272,300 | | | 1,829,856 | |
Hill-Rom Holdings, Inc. | | | 70,150 | | | 2,224,456 | |
IDEXX Laboratories, Inc. (a) | | | 45,200 | | | 2,989,528 | |
Illumina, Inc. (a) | | | 33,100 | | | 1,385,897 | |
Life Technologies Corp. (a) | | | 47,000 | | | 2,571,370 | |
MEDNAX, Inc. (a) | | | 24,237 | | | 1,331,581 | |
Mettler-Toledo International, Inc. (a) | | | 25,950 | | | 3,256,206 | |
Santarus, Inc. (a) | | | 186,000 | | | 610,080 | |
Skilled Healthcare Group, Inc., Class A (a) | | | 103,400 | | | 691,746 | |
| | | | |
|
| |
| | | | | | 27,323,496 | |
| | | | |
|
| |
Industrials – 14.1% | | | | | | | |
AMETEK, Inc. | | | 55,600 | | | 2,404,700 | |
BE Aerospace, Inc. (a) | | | 108,600 | | | 3,226,506 | |
Crane Co. | | | 63,200 | | | 2,271,408 | |
IDEX Corp. | | | 74,800 | | | 2,513,280 | |
Joy Global, Inc. | | | 27,450 | | | 1,559,435 | |
Landstar System, Inc. | | | 47,000 | | | 2,078,340 | |
Navigant Consulting, Inc. (a) | | | 125,450 | | | 1,615,796 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Industrials, continued | | | | | | | |
Waste Connections, Inc. (a) | | | 57,300 | | | 2,050,767 | |
WESCO International, Inc. (a) | | | 47,250 | | | 1,919,295 | |
| | | | |
|
| |
| | | | | | 19,639,527 | |
| | | | |
|
| |
Information Technology – 22.3% | | | | | | | |
Alliance Data Systems Corp. (a) | | | 45,600 | | | 3,422,736 | |
Altera Corp. | | | 73,400 | | | 1,861,424 | |
BMC Software, Inc. (a) | | | 66,550 | | | 2,619,408 | |
Brocade Communications Systems, Inc. (a) | | | 291,500 | | | 1,891,835 | |
Check Point Software Technologies Ltd. (a) | | | 77,250 | | | 2,751,645 | |
Citrix Systems, Inc. (a) | | | 44,200 | | | 2,077,400 | |
Comverse Technology, Inc. (a) | | | 161,400 | | | 1,481,652 | |
LSI Corp. (a) | | | 434,000 | | | 2,612,680 | |
Maxim Integrated Products, Inc. | | | 27,150 | | | 527,253 | |
Nuance Communications, Inc. (a) | | | 200,250 | | | 3,658,567 | |
ON Semiconductor Corp. (a) | | | 156,800 | | | 1,244,992 | |
Polycom, Inc. (a) | | | 44,150 | | | 1,437,083 | |
Salesforce.com, Inc. (a) | | | 33,075 | | | 2,831,220 | |
VeriFone Systems, Inc. (a) | | | 64,500 | | | 1,227,435 | |
VeriSign, Inc. (a) | | | 55,950 | | | 1,525,756 | |
| | | | |
|
| |
| | | | | | 31,171,086 | |
| | | | |
|
| |
Materials – 4.4% | | | | | | | |
Celanese Corp., Series A | | | 69,100 | | | 2,210,509 | |
Compass Minerals International, Inc. | | | 16,800 | | | 1,265,208 | |
Crown Holdings, Inc. (a) | | | 104,600 | | | 2,719,600 | |
| | | | |
|
| |
| | | | | | 6,195,317 | |
| | | | |
|
| |
Telecommunication Services – 2.1% | | | | | | | |
NII Holdings, Inc. (a) | | | 67,700 | | | 2,871,834 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $113,096,489) | | | | | | 135,365,785 | |
| | | | |
|
| |
Investment Companies—2.7% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Government Select
Portfolio, Shares Class, 0.04% (b) | | | 3,832,877 | | | 3,832,877 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $3,832,877) | | | | | | 3,832,877 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $116,929,366) — 99.6% | | | | | | 139,198,662 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $139,767,158. |
| |
ADR | — American Depositary Receipt |
PLC | — Public Limited Company |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 47 |
|
HSBC INVESTOR VALUE PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
| | | | | | | |
Common Stocks—96.7% | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Consumer Discretionary – 4.8% | | | | | | | |
CBS Corp., Class B | | | 24,450 | | | 396,335 | |
Viacom, Inc., Class B (a) | | | 56,500 | | | 1,996,145 | |
| | | | |
|
| |
| | | | | | 2,392,480 | |
| | | | |
|
| |
Consumer Staples – 7.8% | | | | | | | |
CVS Caremark Corp. | | | 25,900 | | | 956,487 | |
Kimberly-Clark Corp. | | | 19,900 | | | 1,219,074 | |
Kroger Co. (The) | | | 28,200 | | | 626,886 | |
Philip Morris International, Inc. | | | 22,600 | | | 1,109,208 | |
| | | | |
|
| |
| | | | | | 3,911,655 | |
| | | | |
|
| |
Energy – 17.0% | | | | | | | |
Apache Corp. | | | 19,400 | | | 1,974,144 | |
Canadian Natural Resources Ltd. | | | 16,000 | | | 1,231,040 | |
ConocoPhillips | | | 9,471 | | | 560,588 | |
Halliburton Co. | | | 21,500 | | | 658,975 | |
Hess Corp. | | | 12,100 | | | 768,955 | |
Noble Energy, Inc. | | | 19,500 | | | 1,489,800 | |
Occidental Petroleum Corp. | | | 12,000 | | | 1,063,920 | |
Talisman Energy, Inc. | | | 46,600 | | | 794,064 | |
| | | | |
|
| |
| | | | | | 8,541,486 | |
| | | | |
|
| |
Financials – 21.3% | | | | | | | |
Aon Corp. | | | 38,500 | | | 1,634,710 | |
Citigroup, Inc. (a) | | | 277,000 | | | 1,210,490 | |
Genworth Financial, Inc., Class A (a) | | | 50,800 | | | 839,216 | |
JP Morgan Chase & Co. | | | 22,150 | | | 943,147 | |
Loews Corp. | | | 41,240 | | | 1,535,778 | |
MetLife, Inc. | | | 42,000 | | | 1,914,360 | |
The Hartford Financial Services Group, Inc. | | | 43,900 | | | 1,254,223 | |
Wells Fargo & Co. | | | 42,700 | | | 1,413,797 | |
| | | | |
|
| |
| | | | | | 10,745,721 | |
| | | | |
|
| |
Health Care – 12.9% | | | | | | | |
Aetna, Inc. | | | 20,800 | | | 614,640 | |
Amgen, Inc. (a) | | | 33,700 | | | 1,933,032 | |
Merck & Co., Inc. | | | 37,600 | | | 1,317,504 | |
Pfizer, Inc. | | | 92,000 | | | 1,538,240 | |
Sanofi-Aventis ADR | | | 33,000 | | | 1,125,630 | |
| | | | |
|
| |
| | | | | | 6,529,046 | |
| | | | |
|
| |
Industrials – 10.3% | | | | | | | |
Ingersoll-Rand plc | | | 23,900 | | | 883,822 | |
Lockheed Martin Corp. | | | 18,400 | | | 1,561,976 | |
Pitney Bowes, Inc. | | | 39,500 | | | 1,003,300 | |
Raytheon Co. | | | 16,900 | | | 985,270 | |
Union Pacific Corp. | | | 10,000 | | | 756,600 | |
| | | | |
|
| |
| | | | | | 5,190,968 | |
| | | | |
|
| |
Information Technology – 10.1% | | | | | | | |
CA, Inc. | | | 101,200 | | | 2,308,372 | |
Microsoft Corp. | | | 21,700 | | | 662,718 | |
Motorola, Inc. (a) | | | 297,700 | | | 2,104,739 | |
| | | | |
|
| |
| | | | | | 5,075,829 | |
| | | | |
|
| |
Materials – 8.4% | | | | | | | |
AngloGold Ashanti Ltd. ADR | | | 40,727 | | | 1,704,832 | |
Barrick Gold Corp. | | | 48,000 | | | 2,090,400 | |
| | | | | | | |
Common Stocks, continued | | | | | | | |
|
|
|
|
|
|
|
|
| | | | | | | |
| | Shares | | Value($) | |
| |
| |
| |
Materials, continued | | | | | | | |
The Mosaic Co. | | | 8,600 | | | 439,804 | |
| | | | |
|
| |
| | | | | | 4,235,036 | |
| | | | |
|
| |
Telecommunication Services – 2.7% | | | | | | | |
AT&T, Inc. | | | 26,600 | | | 693,196 | |
Verizon Communications, Inc. | | | 22,700 | | | 655,803 | |
| | | | |
|
| |
| | | | | | 1,348,999 | |
| | | | |
|
| |
Utilities – 1.6% | | | | | | | |
NRG Energy, Inc. (a) | | | 33,800 | | | 816,946 | |
| | | | |
|
| |
TOTAL COMMON STOCKS
(COST $46,296,108) | | | | | | 48,788,166 | |
| | | | |
|
| |
Investment Companies—3.0% | | | | | | | |
|
|
|
|
|
|
|
|
Northern Institutional Government Select
Portfolio, Shares Class, 0.04% (b) | | | 1,485,961 | | | 1,485,961 | |
| | | | |
|
| |
TOTAL INVESTMENT COMPANIES
(COST $1,485,961) | | | | | | 1,485,961 | |
| | | | |
|
| |
TOTAL INVESTMENTS
(COST $47,782,069) — 99.7% | | | | | | 50,274,127 | |
| | | | |
|
| |
| |
|
| Percentages indicated are based on net assets of $50,438,531. |
| |
ADR | — American Depositary Receipt |
PLC | — Public Limited Company |
| |
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
| | |
48 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
(This Page Intentionally Left Blank)
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International
Equity
Portfolio | | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
|
|
|
|
Assets: | | | | | | | | | | | | | |
Investments in non-affiliates, at value | | $ | 92,284,558 | | $ | 203,493,575 | | $ | 139,198,662 | | $ | 50,274,127 | |
Foreign currency, at value | | | — | | | 1,027,557 | | | — | | | — | |
Unrealized appreciation on foreign currency exchange contracts | | | — | | | 43,997 | | | — | | | — | |
Dividends receivable | | | 13,904 | | | 519,836 | | | 67,656 | | | 32,935 | |
Receivable for investments sold | | | 2,544,074 | | | 1,591,410 | | | 698,473 | | | 162,668 | |
Prepaid expenses and other assets | | | 441 | | | 68 | | | 886 | | | 231 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Assets | | | 94,842,977 | | | 206,676,443 | | | 139,965,677 | | | 50,469,961 | |
| |
|
| |
|
| |
|
| |
|
| |
Liabilities: | | | | | | | | | | | | | |
Payable for investments purchased | | | 1,857,669 | | | 156,907 | | | 86,396 | | | — | |
Accrued expenses and other liabilities: | | | | | | | | | | | | | |
Investment Management | | | 44,465 | | | 122,845 | | | 93,325 | | | 21,826 | |
Administration | | | 1,596 | | | 3,664 | | | 2,408 | | | 859 | |
Compliance Services | | | 17 | | | 235 | | | 19 | | | 9 | |
Custodian | | | 1,825 | | | 22,589 | | | 2,359 | | | 706 | |
Trustee | | | 75 | | | 237 | | | 107 | | | 42 | |
Other | | | 9,228 | | | 25,115 | | | 13,905 | | | 7,988 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Liabilities | | | 1,914,875 | | | 331,592 | | | 198,519 | | | 31,430 | |
| |
|
| |
|
| |
|
| |
|
| |
Applicable to investors’ beneficial interest | | $ | 92,928,102 | | $ | 206,344,851 | | $ | 139,767,158 | | $ | 50,438,531 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Total Investments, at cost | | $ | 77,240,469 | | $ | 209,523,380 | | $ | 116,929,366 | | $ | 47,782,069 | |
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | |
Foreign currency, at cost | | $ | — | | $ | 1,030,180 | | $ | — | | $ | — | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
50 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2010 (Unaudited) |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International
Equity
Portfolio | | Opportunity
Portfolio | | Value
Portfolio | |
|
|
|
|
|
|
|
|
|
|
Investment Income: | | | | | | | | | | | | | |
Dividends | | $ | 293,975 | | $ | 2,400,128 | | $ | 300,881 | | $ | 380,676 | |
Foreign tax withholding | | | — | | | (216,269 | ) | | — | | | (1,578 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Total Investment Income (Loss) | | | 293,975 | | | 2,183,859 | | | 300,881 | | | 379,098 | |
| |
|
| |
|
| |
|
| |
|
| |
Expenses: | | | | | | | | | | | | | |
Investment Management | | | 260,336 | | | 740,820 | | | 542,314 | | | 130,387 | |
Administration | | | 9,314 | | | 22,048 | | | 13,977 | | | 5,114 | |
Accounting | | | 21,877 | | | 43,508 | | | 22,042 | | | 21,986 | |
Compliance Services | | | 188 | | | 307 | | | 274 | | | 103 | |
Custodian | | | 3,785 | | | 94,317 | | | 6,190 | | | 1,592 | |
Printing | | | 2,282 | | | 5,457 | | | 3,161 | | | 1,260 | |
Professional | | | 2,356 | | | 3,988 | | | 3,511 | | | 1,660 | |
Trustee | | | 557 | | | 1,358 | | | 817 | | | 310 | |
Other | | | 1,503 | | | 3,301 | | | 2,252 | | | 850 | |
| |
|
| |
|
| |
|
| |
|
| |
Total Expenses | | | 302,198 | | | 915,104 | | | 594,538 | | | 163,262 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Investment Income (Loss) | | | (8,223 | ) | | 1,268,755 | | | (293,657 | ) | | 215,836 | |
| |
|
| |
|
| |
|
| |
|
| |
Net Realized/Unrealized Gains (Losses) from Investments: | | | | | | | | | | | | | |
Net realized gains (losses) from investments and foreign currency transactions | | | 4,524,536 | | | (2,839,558 | ) | | 9,087,545 | | | 299,115 | |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 8,343,374 | | | 5,787,247 | | | 21,086,436 | | | 6,091,061 | |
| |
|
| |
|
| |
|
| |
|
| |
Net realized/unrealized gains/(losses) from investments and foreign currency transactions | | | 12,867,910 | | | 2,947,689 | | | 30,173,981 | | | 6,390,176 | |
| |
|
| |
|
| |
|
| |
|
| |
Change In Net Assets Resulting From Operations | | $ | 12,859,687 | | $ | 4,216,444 | | $ | 29,880,324 | | $ | 6,606,012 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 51 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Changes in Net Assets |
| | | | | | | | | | | | | |
| | Growth
Portfolio | | International Equity
Portfolio | |
|
|
|
|
|
|
| | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (8,223 | ) | $ | 136,286 | | $ | 1,268,755 | | $ | 4,063,044 | |
Net realized gains (losses) from investments and foreign currency transactions | | | 4,524,536 | | | (12,681,042 | ) | | (2,839,558 | ) | | (72,712,532 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 8,343,374 | | | 26,751,782 | | | 5,787,247 | | | 109,291,830 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 12,859,687 | | | 14,207,026 | | | 4,216,444 | | | 40,642,342 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 4,565,447 | | | 8,763,453 | | | 11,526,713 | | | 23,984,676 | |
Value of withdrawals | | | (12,659,916 | ) | | (16,749,107 | ) | | (26,546,511 | ) | | (46,787,723 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (8,094,469 | ) | | (7,985,654 | ) | | (15,019,798 | ) | | (22,803,047 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 4,765,218 | | | 6,221,372 | | | (10,803,354 | ) | | 17,839,295 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 88,162,884 | | | 81,941,512 | | | 217,148,205 | | | 199,308,910 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 92,928,102 | | $ | 88,162,884 | | $ | 206,344,851 | | $ | 217,148,205 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
52 | 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, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | | For the six
months ended
April 30, 2010
(Unaudited) | | For the
year ended
October 31, 2009 | |
|
|
|
|
|
|
|
|
|
|
Investment Activities: | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (293,657 | ) | $ | (424,078 | ) | $ | 215,836 | | $ | 644,544 | |
Net realized gains (losses) from investment and foreign currency transactions | | | 9,087,545 | | | (15,580,861 | ) | | 299,115 | | | (1,577,886 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies | | | 21,086,436 | | | 31,798,950 | | | 6,091,061 | | | 9,018,297 | |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from operations | | | 29,880,324 | | | 15,794,011 | | | 6,606,012 | | | 8,084,955 | |
| |
|
| |
|
| |
|
| |
|
| |
Proceeds from contributions | | | 4,576,029 | | | 8,367,302 | | | 2,934,777 | | | 4,852,585 | |
Value of withdrawals | | | (24,437,516 | ) | | (22,382,631 | ) | | (8,788,414 | ) | | (12,914,556 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets resulting from transactions in investors’ beneficial interest | | | (19,861,487 | ) | | (14,015,329 | ) | | (5,853,637 | ) | | (8,061,971 | ) |
| |
|
| |
|
| |
|
| |
|
| |
Change in net assets | | | 10,018,837 | | | 1,778,682 | | | 752,375 | | | 22,984 | |
| | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | |
Beginning of period | | | 129,748,321 | | | 127,969,639 | | | 49,686,156 | | | 49,663,172 | |
| |
|
| |
|
| |
|
| |
|
| |
End of period | | $ | 139,767,158 | | $ | 129,748,321 | | $ | 50,438,531 | | $ | 49,686,156 | |
| |
|
| |
|
| |
|
| |
|
| |
| | |
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 53 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
Financial Highlights |
| | | | | | | | | | | | | | | | | | | | | |
| | | | Ratio/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) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROWTH PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (37.75 | )%(e) | | | | 81,942 | | | 0.62 | % | | 0.19 | % | | 0.62 | % | | 157.87 | % | |
Year Ended October 31, 2009 | | 19.31 | % | | | | 88,163 | | | 0.69 | % | | 0.17 | % | | 0.69 | % | | 65.67 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 15.11 | % | | | | 92,928 | | | 0.67 | % | | (0.02 | )% | | 0.67 | % | | 42.87 | % | |
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INTERNATIONAL EQUITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (51.79 | )% | | | | 199,309 | | | 0.76 | % | | 2.65 | % | | 0.76 | % | | 28.98 | % | |
Year Ended October 31, 2009 | | 24.16 | % | | | | 217,148 | | | 0.88 | % | | 2.23 | % | | 0.88 | % | | 58.31 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 1.62 | % | | | | 206,345 | | | 0.86 | % | | 1.19 | % | | 0.86 | % | | 35.03 | % | |
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OPPORTUNITY PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (35.30 | )% | | | | 127,970 | | | 0.87 | % | | (0.46 | )% | | 0.87 | % | | 80.42 | % | |
Year Ended October 31, 2009 | | 15.41 | % | | | | 129,748 | | | 0.90 | % | | (0.37 | )% | | 0.90 | % | | 64.91 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 24.35 | % | | | | 139,767 | | | 0.88 | % | | (0.43 | )% | | 0.88 | % | | 26.31 | % | |
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VALUE PORTFOLIO | | | | | | | | | | | | | | | | | | | | | |
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 | % | |
Year Ended October 31, 2008 | | (39.91 | )% | | | | 49,663 | | | 0.64 | % | | 1.54 | % | | 0.64 | % | | 24.61 | % | |
Year Ended October 31, 2009 | | 20.05 | % | | | | 49,686 | | | 0.68 | % | | 1.41 | % | | 0.68 | % | | 19.77 | % | |
Six Months Ended April 30, 2010 (Unaudited) | | 13.96 | % | | | | 50,439 | | | 0.66 | % | | 0.87 | % | | 0.66 | % | | 14.64 | % | |
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(a) | Not annualized for period less than one year. |
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(b) | Annualized for periods less than one year. |
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(c) | During each 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 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 0.05%, 0.04% and 0.05% for the Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively. |
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(e) | During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Growth Portfolio related to violations of certain investment policies and limitations. The corresponding impact to total return was 0.08%. |
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54 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
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HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) |
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1. | Organization: |
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| 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’’): |
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| Portfolio | Short Name |
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| 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 |
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| The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios. |
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| 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. |
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| Under the Portfolio Trust’s organizational documents, the Portfolio Trust’s 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 Portfolio Trust may enter into contracts with its 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 Portfolio Trust expects the risk of loss to be remote. |
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2. | Significant Accounting Policies: |
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| 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 certain 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
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| Securities Valuation: |
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| The Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below. |
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| Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market. Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices 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 pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures 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 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 |
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HSBC INVESTOR PORTFOLIOS | 55 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
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| 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. |
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| Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. Repurchase agreements are valued at original cost. |
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| Investment Transactions and Related Income: |
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| 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. |
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| Foreign Currency Translation: |
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| 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. |
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| Expense Allocations: |
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| 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. |
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| Federal Income Taxes: |
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| 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. |
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| Management of the Portfolios has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
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| New Accounting Pronouncements: |
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| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Portfolio Trust’s financial statements and related disclosures. |
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| Derivative Instruments |
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| All open derivative positions at period end are reflected on the Portfolio’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Portfolios, including the primary underlying risk exposures related to each instrument type. |
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56 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
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| Foreign Currency Exchange Contracts: |
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| Each Portfolio may enter into foreign currency exchange contracts. The Portfolios enter into foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, 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 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. The contract amount of foreign currency exchange contracts outstanding was $4.4 million as of April 30, 2010. The monthly average contract amount for these contracts was $2.8 million for the period ended April 30, 2010. |
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| Futures Contracts: |
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| Each Portfolio may invest in futures contracts. The Portfolios use futures contracts for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a 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. A Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolios and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Portfolios did not hold any futures contracts. |
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| Summary of Derivative Instruments: |
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| The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of April 30, 2010: |
| | | | | | | | | | | |
| | Asset Derivatives | | Liability Derivatives | |
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| |
| |
Primary Risk Exposure | | Statements of Assets
and Liabilities
Location | | Total Fair
Value* | | Statements of Assets
and Liabilities
Location | | Total Fair
Value* | |
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Foreign Currency Exchange Contracts | | Unrealized appreciation on foreign currency exchange contracts | | | $43,997 | | Unrealized depreciation on foreign currency exchange contracts | | | $— | |
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* | Total Fair Value is presented by Primary Risk Exposure. For foreign currency exchange contracts, such amounts represent the unrealized gain/appreciation (for asset derivatives) or loss/depreciation (for liability derivatives). |
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| The derivative instruments had the following impact on the Statements of Operations for the International Equity Portfolio for the period ended April 30, 2010: |
| | | | | | | | | |
Primary Risk Exposure | | Location of
Gain (Loss)
on Derivatives
Recognized in Income | | Realized
Gain (Loss)
on Derivatives
Recognized in Income | | Change in Unrealized
Appreciation/Depreciation
on Derivatives
Recognized in Income | |
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Foreign Currency Exchange Contracts | | Net realized gains (losses) from investments and foreign currency transactions/change in unrealized appreciation/ depreciation from investments and foreign currencies | | | $(22,708) | | | $49,058 | |
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HSBC INVESTOR PORTFOLIOS | 57 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
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3. | Investment Valuation Summary: |
| | | |
| The valuation techniques employed by the Portfolios, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Portfolios’ investments are summarized in the three broad levels listed below: |
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| | • | Level 1: quoted prices in active markets for identical assets |
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| | • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
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| | • | Level 3: significant unobservable inputs (including a Portfolio’s own assumptions in determining the fair value of investments) |
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| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. |
| |
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Portfolios’ investments based upon three levels defined above: |
| | | | | | | | | | | | | |
| | LEVEL 1 | | LEVEL 2 | | LEVEL 3 | | Total | |
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Growth Portfolio | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Common Stocks (a) | | $ | 89,513,624 | | $ | — | | $ | — | | $ | 89,513,624 | |
Investment Companies | | | 2,770,934 | | | — | | | — | | | 2,770,934 | |
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Total Investments | | $ | 92,284,558 | | $ | — | | $ | — | | $ | 92,284,558 | |
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| | | | | | | | | | | | | |
International Equity Portfolio | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Common Stocks: (+) | | | | | | | | | | | | | |
Brazil | | $ | 1,035,579 | | $ | — | | $ | — | | $ | 1,035,579 | |
Canada | | | 8,618,926 | | | — | | | — | | | 8,618,926 | |
South Korea | | | 1,746,015 | | | 2,393,422 | | | — | | | 4,139,437 | |
Spain | | | 4,137,960 | | | 2,414,892 | | | — | | | 6,552,852 | |
United Kingdom | | | 3,251,424 | | | 39,758,624 | | | — | | | 43,010,048 | |
All other Common Stocks (a)(b) | | | — | | | 138,111,505 | | | — | | | 138,111,505 | |
Investment Companies | | | 2,025,228 | | | — | | | — | | | 2,025,228 | |
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Total Investment Securities | | | 20,815,132 | | | 182,678,443 | | | — | | | 203,493,575 | |
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Other Financial Instruments* | | | — | | | 43,997 | | | — | | | 43,997 | |
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Total Investments | | $ | 20,815,132 | | $ | 182,722,440 | | $ | — | | $ | 203,537,572 | |
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| | | | | | | | | | | | | |
Opportunity Portfolio | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Common Stocks (a) | | $ | 135,365,785 | | $ | — | | $ | — | | $ | 135,365,785 | |
Investment Companies | | | 3,832,877 | | | — | | | — | | | 3,832,877 | |
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Total Investments | | $ | 139,198,662 | | $ | — | | $ | — | | $ | 139,198,662 | |
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Value Portfolio | | | | | | | | | | | | | |
Investment Securities: | | | | | | | | | | | | | |
Common Stocks (a) | | $ | 48,788,166 | | $ | — | | $ | — | | $ | 48,788,166 | |
Investment Companies | | | 1,485,961 | | | — | | | — | | | 1,485,961 | |
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Total Investments | | $ | 50,274,127 | | $ | — | | $ | — | | $ | 50,274,127 | |
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* | Other financial instruments would include any derivative instruments, such as any currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. |
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(a) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. |
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(b) | For detailed country descriptions, see the accompanying Schedules of Portfolio Investments. |
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(+) | Based on the domicile of the security issuer. |
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58 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
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4. | Related Party Transactions and Other Agreements: |
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| Investment Management: |
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| HSBC Global Asset Management (USA) Inc. (“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 Winslow Capital Management, Inc., AllianceBernstein L.P., Westfield Capital Management Company, L.P. and NWQ Investment Management Company, LLC serve as Investment Sub-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. |
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| For their services, the Investment Adviser and Winslow Capital Management, Inc. (“Winslow”) receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
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Based on Average Daily Net Assets of all Sub-Adviser serviced funds and separate accounts affiliated with HSBC: | | Fee Rate* |
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|
Up to $250 million | | 0.575 | % |
In excess of $250 million but not exceeding $500 million | | 0.525 | % |
In excess of $500 million but not exceeding $750 million | | 0.475 | % |
In excess of $750 million but not exceeding $1 billion | | 0.425 | % |
In excess of $1 billion | | 0.375 | % |
| | | |
|
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| * | The Growth Portfolio may pay the Investment Adviser and Winslow an aggregate maximum fee of up to 0.68%. Currently, the Investment Adviser’s contractual fee is 0.175% and Winslow’s maximum contractual fee is 0.40%. Accordingly, the current aggregate maximum fee rate is 0.575%. |
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| For their services, the Investment Adviser and AllianceBernstein L.P. 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 Company, L.P. 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 Company, 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 | % |
| |
| Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time. |
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| Administration: |
| |
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly at annual rate of: |
| | | |
Based on Average Daily Net Assets of | | Fee Rate |
| |
|
Up to $10 billion | | 0.0550 | % |
In excess of $10 billion but not exceeding $20 billion | | 0.0350 | % |
In excess of $20 billion but not exceeding $50 billion | | 0.0275 | % |
In excess of $50 billion | | 0.0250 | % |
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HSBC INVESTOR PORTFOLIOS | 59 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
| 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 HSBC Investor 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 the HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios a master-feeder structure. |
| |
| 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 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 Portfolio Trust and the other HSBC Investor Funds (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 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 $134,557 for the period ended April 30, 2010, 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 individuals as employees of Citi Ohio. |
| |
| Fund Accounting and Trustees: |
| |
| Citi Ohio provides fund accounting services for the Portfolio Trust. 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. |
| |
| Each non-interested Trustee is compensated with a $60,000 annual Board retainer for services as a Trustee of the HSBC Investor Family of Funds (or the “Trusts”), as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. 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 or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
| |
5. | Investment Transactions: |
| |
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
| | | | | | | | | | | | |
Portfolio Name | | | | Purchases
(excluding U.S.
Government) | | | | Sales
(excluding U.S.
Government) | | |
| | | |
| | | |
| | |
Growth Portfolio | | | $ | 37,816,332 | | | | $ | 45,869,435 | | |
International Equity Portfolio | | | | 72,692,064 | | | | | 87,789,444 | | |
Opportunity Portfolio | | | | 34,452,098 | | | | | 52,088,364 | | |
Value Portfolio | | | | 7,090,251 | | | | | 12,990,458 | | |
| | | | | | | | | | | |
For the period ended April 30, 2010, there were no long-term U.S. Government securities held by the Portfolio Trust. |
| |
60 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
| |
6. | Federal Income Tax Information: |
| |
| At April 30, 2010, the cost basis of securities 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($) | | | Net Unrealized
Appreciation/
(Depreciation)($)* | |
| | |
| | |
| | |
| | |
| |
Growth Portfolio | | 75,227,448 | | | 18,506,843 | | | (1,449,733 | ) | | 17,057,110 | |
International Equity Portfolio | | 210,390,549 | | | 16,398,271 | | | (23,295,245 | ) | | (6,896,974 | ) |
Opportunity Portfolio | | 119,573,400 | | | 30,466,172 | | | (10,840,910 | ) | | 19,625,262 | |
Value Portfolio | | 47,766,607 | | | 7,769,399 | | | (5,261,879 | ) | | 2,507,520 | |
| |
|
* | The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales. |
| |
7. | Legal and Regulatory Matters: |
| |
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Portfolios. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Portfolios will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Portfolio will be disclosed in the Financial Highlights after the date of payment. |
| |
HSBC INVESTOR PORTFOLIOS | 61 |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) |
| |
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
| |
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
| |
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
| |
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
| |
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
| |
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and 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 Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
| | |
62 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The 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. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
| | |
| | The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
| | |
| | The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
| | |
| | Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
| | |
| | Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
| | |
| | The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
| | |
| | With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
| | |
| | The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
| | |
| | The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
| |
HSBC INVESTOR PORTFOLIOS | 63 |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval (Unaudited) (continued) |
| | |
| | Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
| | |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
| |
64 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Table of Shareholder Expenses (unaudited)—as of April 30, 2010 |
| |
| As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Portfolio 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, 2009 through April 30, 2010. |
| |
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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| |
| |
| |
| | |
| |
Growth Portfolio | | | $ | 1,000.00 | | | | $ | 1,151.10 | | | | $ | 3.57 | | | | 0.67% | |
International Equity Portfolio | | | | 1,000.00 | | | | | 1,016.20 | | | | | 4.30 | | | | 0.86% | |
Opportunity Portfolio | | | | 1,000.00 | | | | | 1,243.50 | | | | | 4.90 | | | | 0.88% | |
Value Portfolio | | | | 1,000.00 | | | | | 1,139.60 | | | | | 3.50 | | | | 0.66% | |
| |
|
* | 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). |
| |
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 the ongoing costs of investing in a Portfolio and other funds. To do so, 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), on purchases and redemptions of shares (if applicable). 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
11/1/09 | | Ending
Account Value
4/30/10 | | Expenses Paid
During Period*
11/1/09 – 4/30/10 | | | Annualized
Expense Ratio
During Period
11/1/09 – 4/30/10 | |
| |
| |
| |
| | |
| |
Growth Portfolio | | | $ | 1,000.00 | | | | $ | 1,021.47 | | | | $ | 3.36 | | | | 0.67% | |
International Equity Portfolio | | | | 1,000.00 | | | | | 1,020.53 | | | | | 4.31 | | | | 0.86% | |
Opportunity Portfolio | | | | 1,000.00 | | | | | 1,020.43 | | | | | 4.41 | | | | 0.88% | |
Value Portfolio | | | | 1,000.00 | | | | | 1,021.52 | | | | | 3.31 | | | | 0.66% | |
| |
|
* | 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 | 65 |
Other Information:
Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) 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; (ii) on the HSBC Investor Family of Funds’ web-site at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Portfolios’ Form N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the HSBC Investor Family of Funds’ website at www.investorfunds.us.hsbc.com.
An investment in a Portfolio 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.
| |
66 | HSBC INVESTOR PORTFOLIOS |
(This Page Intentionally Left Blank)
(This Page Intentionally Left Blank)
| | |
HSBC INVESTOR FAMILY OF FUNDS: | | SHAREHOLDER SERVICING AGENTS |
| | For HSBC Bank USA, N.A. and |
INVESTMENT ADVISER AND ADMINISTRATOR | | HSBC Securities (USA) Inc. Clients |
HSBC Global Asset Management (USA) Inc. | | HSBC Bank USA, N.A. |
452 Fifth Avenue | | 452 Fifth Avenue |
New York, NY 10018 | | New York, NY 10018 |
| | 1-888-525-5757 |
SUB-ADVISERS | | |
HSBC Investor Growth Portfolio | | For All Other Shareholders |
Winslow Capital Management, Inc. | | HSBC Investor Funds |
4720 IDS Tower | | P.O. Box 182845 |
80th South Eighth Street | | Columbus, OH 43218-2845 |
Minneapolis, MN 55402 | | 1-800-782-8183 |
| | |
HSBC Investor International Equity Portfolio | | TRANSFER AGENT |
AllianceBernstein L.P. | | Citi Fund Services |
1345 Avenue of the Americas, 39th Floor | | 3435 Stelzer Road |
New York, NY 10105 | | Columbus, OH 43219 |
| | |
HSBC Investor Opportunity Portfolio | | DISTRIBUTOR |
Westfield Capital Management Company, L.P. | | Foreside Distribution Services, L.P. |
One Financial Center | | 690 Taylor Road, Suite 150 |
Boston, MA 02111 | | Gahanna, OH 43230-3202 |
| | |
HSBC Investor Value Portfolio | | CUSTODIAN |
NWQ Investment Management Company,LLC | | The Northern Trust Company |
2049 Century Park East, 16th Floor | | 50 South LaSalle Street |
Los Angeles, CA 90067 | | 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 |
Item 2. Code of Ethics.
Not applicable – only for annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable – only for annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable – only for annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Included as a part of the report to shareholders filed under Item 1.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable – Only effective for annual reports.
(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| (Registrant) | HSBC INVESTOR FUNDS |
| By (Signature and Title)* | /s/ Richard A. Fabietti |
| | Richard A. Fabietti |
| | President |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
| By (Signature and Title)* | /s/ Richard A. Fabietti |
| | Richard A. Fabietti |
| | President |
| By (Signature and Title)* | /s/ Ty Edwards |
| | Ty Edwards |
| | Treasurer |
| | |
| Date | June 23, 2010 | |
| * Print the name and title of each signing officer under his or her signature. |
