UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-08928
HSBC INVESTOR PORTFOLIOS
(Exact name of registrant as specified in charter)
452 FIFTH AVENUE
NEW YORK, NY 10018
(Address of principal executive offices) (Zip code)
CITI FUND SERVICES
3435 STELZER ROAD
COLUMBUS, OH 43219
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-800-782-8183
Date of fiscal year end: October 31
Date of reporting period: April 30, 2008
Item 1. Reports to Stockholders.
Semi-Annual Report
HSBC Investor LifeLine FundsTM
LifeLine
It’s simple.
It’s easy.
It’s affordable
April 30, 2008
HSBC Investor Aggressive
Growth Strategy Fund
HSBC Investor Growth
Strategy Fund
HSBC Investor Moderate
Growth Strategy Fund
HSBC Investor Conservative
Growth Strategy Fund
HSBC Investor LifeLine Funds
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Table of Contents |
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HSBC Investor Lifeline Funds |
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Semi Annual Report - April 30, 2008 |
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19 |
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21 |
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25 |
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29 |
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36 |
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37 |
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HSBC Investor Portfolios |
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39 |
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43 |
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49 |
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52 |
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53 |
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55 |
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66 |
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74 |
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76 |
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Other Information | 78 |
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[This Page Intentionally Left Blank.]
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Citigroup U.S. Domestic Three Month Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.
Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Gross Domestic Product (GDP) is the measure of the market value of the goods and services produced by labor and property in the United States.
Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.
Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The Russell Universe - Russell is a recognized leader in consulting, multi-manager investing and institutional investment management. Our consultants advise clients on more than $2 trillion in assets. We deliver investment programs to over 2,000 clients in 44 countries. With more than $230 billion in assets in our funds, Russell researchers meet with over 4,000 investment managers around the world to evaluate their investment process.
Russell MidCap® Growth Index is an unmanaged index which measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.
Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Fund do not match those in the indexes and performance of the Fund will differ. Investors cannot invest directly in an index.
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Dear Shareholder:
In a period of market volatility, mutual funds offer a “hedge” against extremes. Since the purpose of mutual funds is to provide a balance of investments and since fund advisers monitor performance of individual holdings in a portfolio, investors are generally protected against extremes. Over the long run, mutual funds have continued to be a wise investment.
The HSBC Investor Funds have performed in accordance with the swings of the equities and fixed income markets. Many of the HSBC Investor Funds have outperformed their industry benchmarks, most have equaled the benchmark and a few underperformed. Management and the board monitor performance continuously. While any Fund can underperform for a limited period of time, Funds that continue to underperform are put on a watch list, and if a downtrend continues, the board and management will re-evaluate the subadviser relationship.
With over 12 trillion dollars invested, mutual funds remain one of the best ways to sustain both value and growth of a portfolio. The diversity of the HSBC Fund Family provides a useful way to ride the wave of volatility. Please consult your financial adviser to determine the best mix of funds for your individual needs. We encourage you to be active in overseeing your own investments and welcome your comments about how we can provide the best service to you.
Thanks,
Larry M. Robbins, Chairman, HSBC Investor Funds
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1 | HSBC INVESTOR FAMILY OF FUNDS |
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Effective June 2, 2008, changed name to HSBC Global Asset Management (USA) Inc.
Economic review
Several factors weighed on the U.S. economy during the six-month period between November 1, 2007 and April 30, 2008. The ongoing decline in the housing market depressed activity in industries related both directly and indirectly to the housing market, including homebuilders, home improvement retailers and furniture makers. The housing slump also made it more difficult for consumers to borrow against their home equity. That development weakened consumer spending, even as rising prices on food and energy and a flagging employment picture caused Americans to cut back. Consumer spending accounts for more than two-thirds of U.S. economic activity. Therefore, the consumer slowdown posed a significant threat to economic growth.
The housing slump also contributed to rising defaults on subprime mortgages. Higher subprime mortgage defaults led to losses for securities backed by these low-quality home loans, which had become widely dispersed throughout the global financial system in recent years. Losses in subprime mortgage-backed securities forced a number of financial firms to write-down the value of their holdings by billions of dollars. Moreover, market participants became concerned about the possible extent of problems related to weak mortgages. Lenders, concerned that they could not accurately gauge prospective borrowers’ financial health, became extremely cautious about extending credit, resulting in a severe credit crunch that depressed economic growth.
The Federal Reserve Board (the “Fed”) acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed reduced the federal funds rate, its target short-term interest rate, from 4.50% to 2.00% during the six month period ended April 30, 2008 in order to inject liquidity into the financial markets. It also orchestrated a buyout of troubled securities firm Bear Stearns, to prevent problems at the company from undermining the broad financial system. The Fed also sought to improve financial institutions’ access to credit by accepting a wider variety of assets as collateral.
Exports helped the U.S. economy continue to expand despite the difficult environment during the early months of 2008. A weakening dollar made U.S. companies’ products and services more competitive overseas, while increasing the value of revenues earned in foreign currencies. The U.S. Gross Domestic Product1 grew at annualized rates of 0.6% during the fourth quarter of 2007 and 0.9% during the first quarter of 2008.
The U.S. economy’s struggles led to signs of a global slowdown. Growth in Europe appeared to weaken, and evidence emerged that developing economies, which have generated powerful growth in recent years, were beginning to feel the effects of America’s problems as well. For example, China’s year-over-year exports grew 22.5% in December 2007, but just 6.5% in February 2008. Nevertheless, the global economy remained healthy and continued to expand more quickly than the U.S. economy during this period.
Market review
Investors during most of this six-month period responded to the uncertain economic environment by fleeing from the perceived risk of stocks and into the perceived safety of high-quality bonds. U.S. stock returns were exceptionally volatile during this time, as the lack of clarity about the direction of the economy; the subprime crisis and the credit crunch caused traders to react aggressively in response to emerging data. The U.S. market recovered somewhat between mid-March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. For the six month period ended April 30, 2008, the S&P 500 returned -9.63%, while the small-cap sector as represented by the Russell 2000® Index returned -12.92%.
Financial stocks suffered some of the U.S. market’s greatest declines, as shareholders sold financial stocks due to concerns about large write-downs and the potential for further damage from the subprime mortgage crisis. Stocks in the financial sector rebounded modestly toward the end of the period, as bargain-hunting investors began to believe that the market had priced in the worst of the subprime crisis.
Consumer discretionary stocks also performed poorly during this period, as investors worried that high food and energy prices and a weaker employment picture would reduce the money individuals had available to spend on non-essential items. Conversely, energy and materials stocks benefited from rising commodity prices, and posted some of the market’s strongest returns during this period.
Foreign stocks generally posted losses, with the MSCI EAFE Index of developed foreign stock markets returning -8.99% during the period under review. Investors sold foreign stocks due to a general aversion to risk and because of concerns about the repercussions from the turmoil in the credit markets. Emerging markets in Asia, which had performed exceptionally well in recent years, particularly struggled as investors sold assets they perceived to be risky. Developing markets in other parts of the world meanwhile held up relatively well, as they benefited from rising commodity prices.
Investors concerned about risk piled into bonds issued by the U.S. Treasury and foreign governments. Yields declined and prices rose on government bonds, causing the spread between the yield on government securities and corporate bonds to widen substantially. High-yield bonds—debt issued by companies with relatively weak finances—trailed other sectors of the fixed-income market, as investors favored the greater stability of higher-quality bonds. The Lehman Brothers U.S. Aggregate Index, which tracks the broad fixed-income market, returned 4.08% for the six months through April 30, 2008.
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1 | For additional information, please refer to the Glossary of Terms. |
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| HSBC INVESTOR FAMILY OF FUNDS | 2 |
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HSBC Investor Growth Strategy Fund
HSBC Investor Moderate Growth Strategy Fund
HSBC Investor Conservative Growth Strategy Fund
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk, than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of the Fund will fluctuate as the value of the securities in the portfolio changes.
Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Small capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure and historically have experienced a greater degree of market volatility than average. There are risks associated with investing in a fund that invests in securities of foreign countries, such as erratic market conditions, economic and political instabilities and fluctuations in currency exchanges.
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00.
The HSBC Investor Funds feature a number of funds that are structured as ‘‘master/feeder’’ funds. Under this two-tier structure, one fund (the “feeder fund’’) invests all of its investable assets in a second fund (the ‘‘master fund’’). The LifeLine Funds, through this master/feeder structure, provide an asset allocation option to investors who seek to diversify their investment across a variety of asset classes. Each LifeLine Fund provides an asset allocation option corresponding to different investment objectives and risk tolerances. Each LifeLine Fund is a feeder fund. However, unlike most feeder funds, a LifeLine Fund will not direct all of its assets to a single master fund. Instead, the LifeLine Fund will allocate its assets to different master funds in accordance with its asset allocation model. HSBC Investments (USA) Inc. (the ‘‘Adviser’’), according to specific target allocations, invested each LifeLine Fund’s assets in some or all of the following master funds (‘‘underlying Portfolios’’):
HSBC Investor Growth Portfolio (‘‘Growth Portfolio’’); HSBC Investor Value Portfolio (‘‘Value Portfolio’’); HSBC Investor Opportunity Portfolio (‘‘Opportunity Portfolio’’); HSBC Investor International Equity Portfolio (‘‘International Equity Portfolio’’); HSBC Investor Core Plus Fixed Income Portfolio (‘‘Core Plus Fixed Income Portfolio’’); HSBC Investor High Yield Fixed Income Portfolio (High Yield Fixed Income Fund); HSBC Investor Intermediate Duration Fixed Income Portfolio (‘‘Intermediate Duration Fixed Income Portfolio’’); and the HSBC Investor Money Market Fund (‘‘Money Market Fund’’).
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3 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
During the last period, each LifeLine Fund invested in a different combination of the underlying Portfolios according to the various target percentage weightings selected by the Adviser, approximately as set forth in the charts below.
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Underlying Portfolio |
| HSBC Investor |
| HSBC Investor |
| HSBC Investor |
| HSBC Investor |
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Money Market Fund |
| 1 | % |
| 1 | % |
| 6 | % |
| 21 | % |
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Core Plus Fixed Income Portfolio |
| None |
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| 15 | % |
| 26 | % |
| 25 | % |
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High Yield Fixed Income Portfolio |
| None |
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| 2 | % |
| 5 | % |
| 8 | % |
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Intermediate Duration Fixed Income Portfolio |
| None |
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| None |
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| None |
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| 3 | % |
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Growth Portfolio |
| 21 | % |
| 21 | % |
| 19 | % |
| 15 | % |
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International Equity Portfolio |
| 23 | % |
| 20 | % |
| 15 | % |
| 10 | % |
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Opportunity Portfolio |
| 34 | % |
| 20 | % |
| 11 | % |
| 4 | % |
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Value Portfolio |
| 21 | % |
| 21 | % |
| 18 | % |
| 14 | % |
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Total: |
| 100 | % |
| 100 | % |
| 100 | % |
| 100 | % |
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HSBC INVESTOR FAMILY OF FUNDS | 4 |
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Portfolio Reviews |
HSBC Investor Aggressive Growth Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2008 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Aggressive Growth Strategy Fund Class A1 |
| 2/14/05 |
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| -12.30 |
| -1.80 |
| 12.73 |
| 10.32 |
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| 2.27 |
| 1.50 |
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HSBC Investor Aggressive Growth Strategy Fund Class B2 |
| 2/9/05 |
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| -11.48 |
| -1.26 |
| 13.30 |
| 11.05 |
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| 3.02 |
| 2.25 |
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HSBC Investor Aggressive Growth Strategy Fund Class C3 |
| 6/9/05 |
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| -8.90 |
| 1.63 |
| — |
| 12.63 |
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| 3.02 |
| 2.25 |
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Standard & Poor’s 500 Index5 |
| — |
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| -9.63 |
| -4.68 |
| 8.22 |
| N/A |
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| N/A |
| N/A |
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Aggressive Growth Blended Portfolio Index5 |
| — |
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| -9.89 |
| -3.36 |
| 11.51 |
| N/A |
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| N/A |
| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Aggressive Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (34%) and the MSCI EAFE Index (23%). These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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5 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
HSBC Investor Growth Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2008 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Growth Strategy Fund Class A1 |
| 2/8/05 |
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| -11.74 |
| -3.26 |
| 10.21 |
| 9.02 |
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| 1.65 |
| 1.50 |
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HSBC Investor Growth Strategy Fund Class B2 |
| 2/1/05 |
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| -10.95 |
| -2.73 |
| 10.76 |
| 10.00 |
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| 2.40 |
| 2.25 |
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HSBC Investor Growth Strategy Fund Class C3 |
| 4/27/05 |
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| -8.30 |
| 0.20 |
| 11.33 |
| 11.26 |
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| 2.40 |
| 2.25 |
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Standard & Poor’s 500 Index5 |
| — |
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| -9.63 |
| -4.68 |
| 8.22 |
| N/A |
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| N/A |
| N/A |
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Growth Blended Portfolio Index5 |
| — |
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| -7.46 |
| -1.75 |
| 10.26 |
| N/A |
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| N/A |
| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Lehman Brothers U.S. Aggregate Index (15%); Citigroup U.S. High Yield Market Capped Index (2%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (20%) and the MSCI EAFE Index (20%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 2% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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HSBC INVESTOR FAMILY OF FUNDS | 6 |
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Portfolio Reviews |
HSBC Investor Moderate Growth Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2008 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Moderate Growth Strategy Fund |
| 2/3/05 |
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| -10.56 |
| -3.86 |
| 7.81 |
| 6.76 |
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| 1.60 |
| 1.50 |
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HSBC Investor Moderate Growth Strategy Fund |
| 2/1/05 |
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| -9.76 |
| -3.31 |
| 8.25 |
| 7.58 |
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| 2.35 |
| 2.25 |
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HSBC Investor Moderate Growth Strategy Fund |
| 6/9/05 |
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| -7.04 |
| -0.45 |
| — |
| 8.05 |
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| 2.35 |
| 2.25 |
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Standard & Poor’s 500 Index5 |
| — |
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| -9.63 |
| -4.68 |
| 8.22 |
| N/A |
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| N/A |
| N/A |
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Moderate Growth Blended Portfolio Index5 |
| — |
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| -5.02 |
| -0.13 |
| 8.84 |
| N/A |
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| N/A |
| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and the period ended April 30, 2008 would have been lower.
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated February 28, 2008. |
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5 | The performance of the HSBC Investor Moderate Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (6%); Citigroup U.S. High Yield Market Capped Index (5%); Lehman Brothers U.S. Aggregate Index (26%); Russell 1000® Growth Index (19%); Russell 1000® Value Index (18%); Russell 2500™ Growth Index (11%) and the MSCI EAFE Index (15%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 5% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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7 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2008 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Conservative Growth Strategy Fund Class A1 |
| 2/23/05 |
| -8.93 |
| -4.10 |
| 5.62 |
| 4.80 |
| 2.06 |
| 1.50 |
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HSBC Investor Conservative Growth Strategy Fund Class B2 |
| 2/17/05 |
| -8.30 |
| -3.50 |
| 6.09 |
| 5.28 |
| 2.81 |
| 2.25 |
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HSBC Investor Conservative Growth Strategy Fund Class C3 |
| 4/19/05 |
| -5.43 |
| -0.13 |
| 7.05 |
| 6.80 |
| 2.81 |
| 2.25 |
|
Standard & Poor’s 500 Index5 |
| — |
| -9.63 |
| -4.68 |
| 8.22 |
| N/A |
| N/A |
| N/A |
|
Conservative Growth Blended Portfolio Index5 |
| — |
| -2.71 |
| 1.26 |
| 7.50 |
| 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 the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.
The total returns for each class of shares of the Fund for the year ended October 31, 2007 and period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the year ended October 31, 2007 and period ended April 30, 2008 would have been lower.
|
|
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 February 28, 2008. |
|
|
5 | The performance of the HSBC Investor Conservative Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic 3-Month T-Bill Index (21%); Citigroup U.S. High Yield Market Capped Index (8%); Lehman Bros. U.S. Aggregate Index (25%); Lehman Bros. U.S. Interm. Aggregate Index (3%); Russell 1000® Growth Index (15%); Russell 1000® Value Index (14%); Russell 2500™ Growth Index (4%) and the MSCI EAFE Index (10%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects an 8% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index. For a complete definition of the above referenced indices, please refer to the Glossary of Terms. |
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† | Aggregate total return. |
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HSBC INVESTOR FAMILY OF FUNDS | 8 |
|
Portfolio Reviews |
|
|
|
|
Standardized Performance Benchmark Indices for the |
| 1 |
|
| |||
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index |
| 3.90 |
|
Citigroup U.S. High Yield Market Capped Index |
| 0.08 |
|
Lehman Brothers U.S. Aggregate Index |
| 6.87 |
|
Lehman Brothers Intermediate U.S. Aggregate Index |
| 7.07 |
|
MSCI EAFE Index |
| -1.31 |
|
Russell 1000® Growth Index |
| -0.23 |
|
Russell 1000® Value Index |
| -8.97 |
|
Russell 2500™ Growth Index |
| -3.56 |
|
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.
Citigroup U.S. High Yield Market Capped Index uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of the investment-grade debt issues with at least one year to final maturity.
Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE) is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
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9 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
|
| |
HSBC Investor Money Market Fund | Moody’s and Standard & Poor’s has assigned an “Aaa” and “AAAm” rating to the HSBC Investor Money Market Fund.1 |
by John Chiodi | |
|
The HSBC Investor Money Market Fund seeks to provide, shareholders of the Fund, with liquidity and as high a level of current income as is consistent with the preservation of capitol.
Investment Concerns
An investment in the fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The money markets experienced a turbulent environment during the six-month period under review, as rising defaults on subprime mortgages brought on a credit and liquidity crisis. The Federal Reserve Board (the “Fed”) attempted to address the financial system’s problems by lowering its target short-term interest rate from 4.50% to 2.00% between November 2007 and April 2008, causing yields on money market securities to decline.
We sought to protect shareholders’ principal in this uncertain environment. In particular, we held securities with relatively short maturities throughout the period—sacrificing a bit of yield in exchange for greater liquidity. In typical Fed easing cycles, we often extend the Fund’s maturity to lock in higher yields; but we felt that the turbulence in the money markets during this time called for a more cautious approach. We did seek strategic opportunities to capture higher yields on longer-term securities as the markets settled somewhat late in the period.*
We also looked to safeguard shareholder assets by holding relatively small positions in asset-backed commercial paper. Again, this strategy reduced the Fund’s yield, but provided greater security as the credit and liquidity crisis roiled the money markets.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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|
HSBC INVESTOR FAMILY OF FUNDS | 10 |
|
Portfolio Reviews |
HSBC Investor Core Plus Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team |
The HSBC Investor Core Plus Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Market Commentary
The Portfolio held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Portfolio’s emphasis on other sectors weighed on relative returns.
Security selection also reduced the Portfolio’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
|
|
* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
|
|
11 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
HSBC Investor High Yield Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., High Yield Team |
The HSBC Investor High Yield Fixed Income Portfolio (the “Portfolio”) seeks to provide a high level of current income and capital appreciation. HSBC Investments (USA) Inc. serves as investment adviser to the Fund. The HSBC High Yield Team provides the day to day management of the portfolio. The Team’s philosophy is focused on delivering sustainable value added performance in the high yield fixed income market. The investment approach is a combination of top-down sector/ industry selection and bottom-up security/quality selection. The team rotates sectors and themes within the high yield universe during different market environments seeking to add value, endeavoring to take advantage of market inefficiencies in order to outperform in both up and down markets. Halbis Capital Management (USA) Inc. is the subadviser to the Core Plus Fixed Income Portfolio.
Investment Concerns
Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. High yield bonds are subject to greater risks than investment grade bonds, such as the increased risk of default because of the lower credit quality of the issues.
Market Commentary
High-yield bond performance was volatile during the period under review, as investors tried to gauge the likely repercussions of the economic slowdown and the credit crunch. The Fund generated gains during three of the six months in this period ended April 30, 2008, and posted losses during the other three months.
The Fund held an overweight allocation to the energy sector. The relatively large position in energy lifted returns against the benchmark, as energy companies benefited from surging oil and gas prices. We also held underweight positions in the homebuilding and building products industries. Bonds issued by companies in those industries generally performed poorly due to the ongoing slump in the housing market, so the Fund’s smaller-than-benchmark stakes helped its performance against the index.*
A relatively large position in bonds of gaming companies hurt the Fund’s relative return. Consumers facing higher food and energy prices cut back on discretionary entertainment, thereby depressing revenues at these firms and causing their bonds to trade lower. The Fund held a smaller stake than the benchmark in bonds rated BBB, the lowest tier of the investment-grade bond universe, which also weighed on relative performance. BBB-rated bonds posted the benchmark’s strongest returns for the six month period as a whole, despite intermittent strength from lower-quality bonds.*
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|
* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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|
HSBC INVESTOR FAMILY OF FUNDS | 12 |
|
Portfolio Reviews |
HSBC Investor Intermediate Duration Fixed Income Portfolio |
by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team |
The HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Market Commentary
The Fund held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Fund’s emphasis on other sectors weighed on relative returns.
Security selection also reduced the Fund’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*
|
|
* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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|
13 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
HSBC Investor Growth Portfolio |
by Philip J. Sanders, Senior Vice President/Portfolio Manager, CFA and |
Daniel P. Becker, Senior Vice President/Portfolio Manager, CFA |
Waddell & Reed Investment Management Company |
The HSBC Investor Growth Portfolio (the “Portfolio”) seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the sub-adviser believes have the potential to generate superior levels of long-term profitability and growth. Effective May 12, 2008, Winslow Capital Management, Inc. replaced Waddell & Reed Investment Management Company (Waddell & Reed) as the sub-adviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
The subprime mortgage crisis evolved into a credit and liquidity crisis during this period. Those developments had a substantially adverse impact on stocks of all sizes, both the U.S. and foreign markets.
The Fund benefited from strong stock selection relative to its benchmark. Security selection added to relative returns in four of the eight economic sectors in which the Fund invested during the period. In particular, certain holdings in the materials and energy sectors boosted the Fund and helped to outperform its benchmark. Overweight positions in the health care and industrials sectors also helped relative performance.*
The Fund’s positions in the information technology, consumer discretionary and financial sectors detracted from relative performance over the period, largely due to stock selection. Growth-oriented technology stocks generally were weak during the period, likely due to a faltering economy and cutbacks in technology spending. Consumer discretionary holdings were hurt by investors’ concerns that high-energy costs, a plunging housing market and a weakening employment picture would undermine consumer spending. Financial stocks suffered due to investors’ worries about the possible extent of the subprime mortgage crisis.*
|
|
* | Portfolio composition is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
|
|
HSBC INVESTOR FAMILY OF FUNDS | 14 |
|
Portfolio Reviews |
by Kevin F. Simms
Co-CIO International Value Equities and Director of Research – Global and International Value Equities
AllianceBernstein Investment Research and Management
The HSBC Investor International Equity Portfolio (the “Portfolio”) seeks to provide their shareholders with long-term growth of capital and future income by investing at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. The Portfolio may invest up to 20% of its assets in equity securities of companies in emerging markets. The Portfolio employs AllianceBernstein L.P. (“AllianceBernstein”), a unit of AllianceBernstein Investment Research and Management as subadviser.
The Portfolio invests primarily in equity securities of companies organized and domiciled in developed nations outside the U.S., or for which the principal trading market is outside the U.S., including Europe, Canada, Australia and the Far East.
Investment Concerns
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
Investor worries about slowing global economic growth and further repercussions from the subprime mortgage crisis dominated financial markets during the period, contributing to the Fund’s negative performance. In addition, record oil prices weighed on investor sentiment. Central banks adopted more accommodative monetary policies, lowering interest rates and pumping money into the banking system. Global stocks fell sharply near the end of the period, as a major U.S. investment- banking firm neared bankruptcy.
The Fund’s sector selection enhanced relative returns, due primarily to overweight positions in shares of industrial commodities and energy firms. Security selection in the technology and utilities sectors also added to relative returns.*
Security selection hurt the Fund’s relative performance. Selection of stocks in the capital equipment and industrial commodities sectors particularly weighed on returns relative to the index. Key detractors from performance included shares of a large U.K. mortgage lender, which declined amid investor perceptions of deteriorating conditions in the country’s housing market. Meanwhile, stocks of French capital equipment companies in the Fund’s portfolio were hurt by weakening consumer confidence and rising raw materials costs.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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15 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
by William A. Muggia
President–Chief Investment Officer
Westfield Capital Management, LLC
The HSBC Investor Opportunity Fund (“the Fund”) seeks to provide its shareholders with long-term growth of capital investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Funds employ a two-tier structure, commonly referred to as “master-feeder.” The Funds invest all of their investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management, LLC as subadviser.
The Portfolio invests primarily in common stocks of small and medium-sized companies that may have the potential to become major enterprises.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Market Commentary
Myriad macroeconomic ills plagued U.S. investors during the period. A downturn in the U.S. economy, increasing inflationary pressures and continuing tumult in the banking system weighed on the financial markets. Despite an unprecedented campaign of fiscal and monetary measures designed to alleviate the economy’s various troubles, U.S. equities posted double-digit losses across multiple economic sectors. Energy was the only economic sector to end of the six-month period in the positive territory in both the small- and mid-cap universes.
The Fund’s outperformance of its benchmark was driven in large part by healthcare, energy, and technology shares. In particular, the performance of the Fund’s health care allocation benefited from positive stock selection within pharmaceuticals, health care equipment and biotechnology. Rising crude oil prices boosted energy stocks, helping them advance to record-high levels during the first months of 2008. An overweight position in the energy sector enhanced relative results, as did selection of certain domestic natural gas and equipment and services stocks. Selection among information technology stocks boosted relative performance, in part because the Fund’s valuation discipline helped it to avoid holding some of the stocks that posted the sector’s weakest returns.*
The biggest drag on relative performance came from financials. While we believe the portfolios limited exposure to this troubled sector should have been a source of good performance, weakness in certain positions hampered the aggregate results of the Fund’s financial-sector allocation. Industrials also restrained the Fund’s results. Declines among shares of trading companies and distributors particularly weighed on returns.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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HSBC INVESTOR FAMILY OF FUNDS | 16 |
|
Portfolio Reviews |
by Jon D. Bosse, CFA
Chief Investment Officer
NWQ Investment Management Company, LLC
The HSBC Investor Value Portfolio (the “Portfolio”) seeks long-term growth of capital and income by investing primarily in U.S. and foreign companies with large and medium capitalizations that the sub-adviser believes possess opportunities underappreciated or misperceived by the market. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as the subadviser.
Investment Concerns
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
Equity markets declined, both in the United States and worldwide, due to concerns about the outlook for the global economy and the unprecedented deterioration in the credit markets. Value stocks generally outperformed growth stocks, while U.S. equity markets demonstrated tremendous volatility. Stock prices appreciated materially near the end of the period—particularly among financial stocks—following the Federal Reserve’s aggressive actions to lower key interest rates.
The Fund’s absolute return was enhanced by strong performance from energy shares. Energy stocks performed well due to appreciation in oil prices and increasing production profiles. Select stocks in the steel and transportation industries also contributed to the Fund’s absolute return. The Fund’s exposure to the financial sector negatively influenced performance, as uncertainty about the extent of the problems related to the subprime mortgage crisis adversely affected stock prices within the sector.*
Although the Fund’s underweight position in the lagging financial sector helped performance relative to the index, selection among financial stocks caused the Fund’s allocation to that sector to weigh on relative returns. All but one of the Fund’s financial holdings declined in value during the period. An overweight position in the technology sector also hurt performance against the index, as technology shares were weighed down by concerns that continued economic weakness could lead to reduced corporate and consumer technology spending.*
* Portfolio composition is subject to change.
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
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17 | HSBC INVESTOR FAMILY OF FUNDS |
April 30, 2008
(Unaudited)
|
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HSBC Investor Core Plus Fixed Income Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Corporate Bonds |
| 27.6 | % |
Mortgage Backed Securities |
| 23.5 | % |
U.S. Treasury Securities |
| 13.9 | % |
Commercial Mortgage Backed Securities |
| 10.3 | % |
Cash and Equivalents |
| 9.4 | % |
Asset Backed Securities |
| 7.8 | % |
Collateralized Mortgage Obligations |
| 5.0 | % |
Foreign Bond |
| 2.5 | % |
|
| 100.0 | % |
|
|
|
|
HSBC Investor High Yield Fixed Income Portfolio |
|
| |
Investment Allocation |
| Percentage of Investments at Value | |
Corporate Bonds |
| 98.0 | % |
Cash and Equivalents |
| 2.0 | % |
|
| 100.0 | % |
|
|
|
|
HSBC Investor Intermediate Duration Fixed Income Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Mortgage Backed Securities |
| 27.0 | % |
Corporate Bond |
| 26.5 | % |
U.S. Treasury Securities |
| 11.4 | % |
Commercial Mortgage Backed Securities |
| 10.0 | % |
Asset Backed Securities |
| 7.5 | % |
Cash and Equivalents |
| 7.5 | % |
Collateralized Mortgage Obligations |
| 6.3 | % |
Foreign Bond |
| 3.8 | % |
|
| 100.0 | % |
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Information Technology |
| 18.7 | % |
Health Care |
| 18.0 | % |
Industrials |
| 20.2 | % |
Consumer Staples |
| 11.2 | % |
Consumer Discretionary |
| 4.9 | % |
Financials |
| 7.7 | % |
Energy |
| 9.5 | % |
Materials |
| 4.4 | % |
Cash and Equivalents |
| 5.4 | % |
|
| 100.0 | % |
|
|
|
|
HSBC International Equity Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Europe |
| 65.2 | % |
Japan |
| 21.8 | % |
Australia & Far East |
| 6.1 | % |
Canada |
| 4.8 | % |
Other |
| 1.5 | % |
Cash and Equivalents |
| 0.6 | % |
|
| 100.0 | % |
|
|
|
|
HSBC Investor Opportunity Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Health Care |
| 23.4 | % |
Information Technology |
| 17.2 | % |
Industrials |
| 15.3 | % |
Energy |
| 15.2 | % |
Consumer Discretionary |
| 12.6 | % |
Business Services |
| 7.4 | % |
Cash and Equivalents |
| 4.6 | % |
Financials |
| 2.2 | % |
Consumer Staples |
| 2.1 | % |
|
| 100.0 | % |
|
|
|
|
HSBC Investor Value Portfolio |
|
|
|
Investment Allocation |
| Percentage of Investments at Value | |
Financials |
| 19.6 | % |
Energy |
| 14.1 | % |
Industrials |
| 11.3 | % |
Information Technology |
| 10.4 | % |
Consumer Discretionary |
| 9.0 | % |
Consumer Staples |
| 7.1 | % |
Materials |
| 6.8 | % |
Health Care |
| 5.4 | % |
Cash |
| 5.3 | % |
Telecommunication Services |
| 4.8 | % |
Miscellaneous |
| 3.1 | % |
Transportation |
| 3.1 | % |
|
| 100.0 | % |
|
|
* | Portfolio composition is subject to change. |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 18 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Assets and Liabilities—As of April 30, 2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in Affiliated Portfolios |
| $ | 12,998,297 |
| $ | 35,731,904 |
| $ | 37,004,533 |
| $ | 9,933,873 |
|
Investments in Affiliated Fund, at value (a) |
|
| 132,515 |
|
| 363,050 |
|
| 2,369,397 |
|
| 2,645,842 |
|
|
|
|
|
|
| ||||||||
Total Investments |
|
| 13,130,812 |
|
| 36,094,954 |
|
| 39,373,930 |
|
| 12,579,715 |
|
|
|
|
|
|
| ||||||||
Receivable for capital shares issued |
|
| 22,857 |
|
| 34,897 |
|
| 59,449 |
|
| 1,307 |
|
Receivable from Investment Adviser |
|
| 3,769 |
|
| — |
|
| — |
|
| 2,071 |
|
Prepaid expenses and other assets |
|
| 6,134 |
|
| 6,134 |
|
| 7,056 |
|
| 8,728 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 13,163,572 |
|
| 36,135,985 |
|
| 39,440,435 |
|
| 12,591,821 |
|
|
|
|
|
|
| ||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for capital shares redeemed |
|
| 531 |
|
| 66,875 |
|
| 24,004 |
|
| 11,760 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 520 |
|
| 1,440 |
|
| 1,578 |
|
| 502 |
|
Administration |
|
| 382 |
|
| 1,091 |
|
| 1,188 |
|
| 396 |
|
Distribution |
|
| 3,369 |
|
| 9,100 |
|
| 11,459 |
|
| 3,554 |
|
Shareholder Servicing |
|
| 2,607 |
|
| 7,233 |
|
| 7,943 |
|
| 2,525 |
|
Compliance Service |
|
| 11 |
|
| 31 |
|
| 32 |
|
| 9 |
|
Transfer Agent |
|
| 6,624 |
|
| 7,895 |
|
| 9,016 |
|
| 5,432 |
|
Other |
|
| 10,419 |
|
| 31,408 |
|
| 33,161 |
|
| 4,764 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 24,463 |
|
| 125,073 |
|
| 88,381 |
|
| 28,942 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 13,139,109 |
| $ | 36,010,912 |
| $ | 39,352,054 |
| $ | 12,562,879 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
| $ | 12,146,866 |
| $ | 33,772,682 |
| $ | 37,846,953 |
| $ | 12,389,609 |
|
Accumulated net investment income (loss) |
|
| (23,390 | ) |
| 74,634 |
|
| 41,787 |
|
| 17,428 |
|
Accumulated net realized gains (losses) from investment and foreign currency transactions |
|
| 29,165 |
|
| 98,475 |
|
| 16,875 |
|
| (30,877 | ) |
Unrealized appreciation/(depreciation) from investments and foreign currencies |
|
| 986,468 |
|
| 2,065,121 |
|
| 1,446,439 |
|
| 186,719 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 13,139,109 |
| $ | 36,010,912 |
| $ | 39,352,054 |
| $ | 12,562,879 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 7,478,662 |
| $ | 20,849,206 |
| $ | 20,210,881 |
| $ | 6,643,434 |
|
Class B Shares |
|
| 5,151,842 |
|
| 13,763,390 |
|
| 17,190,086 |
|
| 5,416,432 |
|
Class C Shares |
|
| 508,605 |
|
| 1,398,316 |
|
| 1,951,087 |
|
| 503,013 |
|
|
|
|
|
|
| ||||||||
|
| $ | 13,139,109 |
| $ | 36,010,912 |
| $ | 39,352,054 |
| $ | 12,562,879 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.001 par value, unlimited number of shares authorized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 555,390 |
|
| 1,618,819 |
|
| 1,696,658 |
|
| 595,815 |
|
Class B Shares |
|
| 391,526 |
|
| 1,069,915 |
|
| 1,443,155 |
|
| 490,417 |
|
Class C Shares |
|
| 38,674 |
|
| 108,228 |
|
| 167,751 |
|
| 44,331 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Offering Price and Redemption Price per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 13.47 |
| $ | 12.88 |
| $ | 11.91 |
| $ | 11.15 |
|
Class B Shares* |
| $ | 13.16 |
| $ | 12.86 |
| $ | 11.91 |
| $ | 11.04 |
|
Class C Shares* |
| $ | 13.15 |
| $ | 12.92 |
| $ | 11.63 |
| $ | 11.35 |
|
Maximum Sales Charge — Class A Shares |
|
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maximum Offering Price per share (Net Asset Value/ (100% — maximum sales charge)) — Class A Shares |
| $ | 14.18 |
| $ | 13.56 |
| $ | 12.54 |
| $ | 11.74 |
|
|
|
|
|
|
| ||||||||
Investments in Affiliated Fund, at cost (a) |
| $ | 132,515 |
| $ | 363,050 |
| $ | 2,369,397 |
| $ | 2,645,842 |
|
|
|
|
|
|
|
|
|
* | Redemption Price per share varies by length of time shares are held. |
|
|
(a) | The investment in the affiliated fund are holdings of the HSBC Investor Money Market Fund Class I Shares (see Note 1). The shares held in the Fund are identical to value since it is at $1.00 net asset value per share. In addition, value and cost for financial reporting and federal income tax purposes are the same. |
|
|
|
19 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income from Affiliated Portfolios (a) |
| $ | 93,125 |
| $ | 414,544 |
| $ | 561,054 |
| $ | 180,852 |
|
Investment Income from Affiliated Fund |
|
| 2,401 |
|
| 6,888 |
|
| 44,410 |
|
| 48,940 |
|
Foreign tax withholding from Affiliated Portfolios (a) |
|
| (4,784 | ) |
| (11,696 | ) |
| (9,592 | ) |
| (2,031 | ) |
Expenses from Affiliated Portfolios (a) |
|
| (44,185 | ) |
| (120,668 | ) |
| (121,467 | ) |
| (33,014 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income (Loss) |
|
| 46,557 |
|
| 289,068 |
|
| 474,405 |
|
| 194,747 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 3,004 |
|
| 8,605 |
|
| 9,318 |
|
| 2,957 |
|
Administration |
|
| 1,371 |
|
| 3,929 |
|
| 4,253 |
|
| 1,350 |
|
Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares |
|
| 17,807 |
|
| 48,771 |
|
| 60,277 |
|
| 18,540 |
|
Class C Shares |
|
| 1,807 |
|
| 4,567 |
|
| 6,805 |
|
| 1,725 |
|
Shareholder Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 8,483 |
|
| 25,244 |
|
| 24,227 |
|
| 8,030 |
|
Class B Shares |
|
| 5,936 |
|
| 16,257 |
|
| 20,092 |
|
| 6,180 |
|
Class C Shares |
|
| 603 |
|
| 1,522 |
|
| 2,268 |
|
| 575 |
|
Accounting |
|
| 11,688 |
|
| 11,688 |
|
| 11,688 |
|
| 11,688 |
|
Compliance Service |
|
| 32 |
|
| 93 |
|
| 100 |
|
| 32 |
|
Printing |
|
| 8,997 |
|
| 25,467 |
|
| 27,565 |
|
| 9,955 |
|
Professional |
|
| 214 |
|
| 609 |
|
| 664 |
|
| 1,473 |
|
Transfer Agent |
|
| 24,790 |
|
| 35,475 |
|
| 37,785 |
|
| 20,002 |
|
Trustee |
|
| 69 |
|
| 198 |
|
| 212 |
|
| 67 |
|
Registration |
|
| 45 |
|
| 132 |
|
| 140 |
|
| 38 |
|
Other |
|
| 4,249 |
|
| 4,011 |
|
| 6,819 |
|
| 2,056 |
|
|
|
|
|
|
| ||||||||
Total expenses before fee reductions |
|
| 89,095 |
|
| 186,568 |
|
| 212,213 |
|
| 84,668 |
|
Fees reduced by Investment Adviser |
|
| (23,607 | ) |
| — |
|
| — |
|
| (8,773 | ) |
|
|
|
|
|
| ||||||||
Net Expenses |
|
| 65,488 |
|
| 186,568 |
|
| 212,213 |
|
| 75,895 |
|
|
|
|
|
|
| ||||||||
Net Investment Income (Loss) |
|
| (18,931 | ) |
| 102,500 |
|
| 262,192 |
|
| 118,852 |
|
|
|
|
|
|
| ||||||||
Net Realized/Unrealized Gains (Losses) from Investments: (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| 29,266 |
|
| 93,688 |
|
| 16,159 |
|
| (30,181 | ) |
Change in unrealized appreciation/(depreciation) from investments and foreign currencies |
|
| (970,751 | ) |
| (2,831,034 | ) |
| (2,581,701 | ) |
| (616,679 | ) |
|
|
|
|
|
| ||||||||
Net realized/unrealized gains (losses) from investment transactions and foreign currencies |
|
| (941,485 | ) |
| (2,737,346 | ) |
| (2,565,542 | ) |
| (646,860 | ) |
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | (960,416 | ) | $ | (2,634,846 | ) | $ | (2,303,350 | ) | $ | (528,008 | ) |
|
|
|
|
|
|
|
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 20 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive Growth Strategy Fund |
| Growth Strategy Fund |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (18,931 | ) | $ | (35,215 | ) | $ | 102,500 |
| $ | 155,873 |
|
Net realized gains (losses) from investment transactions |
|
| 29,266 |
|
| 810,981 |
|
| 93,688 |
|
| 1,888,561 |
|
Change in unrealized appreciation/ (depreciation) from investments |
|
| (970,751 | ) |
| 1,335,250 |
|
| (2,831,034 | ) |
| 3,251,636 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (960,416 | ) |
| 2,111,016 |
|
| (2,634,846 | ) |
| 5,296,070 |
|
|
|
|
|
|
| ||||||||
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| — |
|
| (137,881 | ) |
| (91,507 | ) |
Class B Shares |
|
| — |
|
| — |
|
| (1,258 | ) |
| (11,110 | ) |
Class C Shares |
|
| — |
|
| — |
|
| (816 | ) |
| (784 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (422,050 | ) |
| — |
|
| (1,103,525 | ) |
| (94,565 | ) |
Class B Shares |
|
| (304,154 | ) |
| — |
|
| (702,526 | ) |
| (64,734 | ) |
Class C Shares |
|
| (31,418 | ) |
| — |
|
| (63,975 | ) |
| (5,227 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| (757,622 | ) |
| — |
|
| (2,009,981 | ) |
| (267,927 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 2,341,587 |
|
| 3,061,815 |
|
| 4,125,902 |
|
| 9,652,802 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 623,549 |
|
| 5,172,831 |
|
| (518,925 | ) |
| 14,680,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 12,515,560 |
|
| 7,342,729 |
|
| 36,529,837 |
|
| 21,848,892 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 13,139,109 |
| $ | 12,515,560 |
| $ | 36,010,912 |
| $ | 36,529,837 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | (23,390 | ) | $ | (4,459 | ) | $ | 74,634 |
| $ | 112,089 |
|
|
|
|
|
|
|
|
|
|
21 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive Growth Strategy Fund |
| Growth Strategy Fund |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
CAPITAL TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
| $ | 1,306,132 |
| $ | 2,836,042 |
| $ | 2,882,849 |
| $ | 7,969,359 |
|
Dividends reinvested |
|
| 421,632 |
|
| — |
|
| 1,235,211 |
|
| 185,652 |
|
Value of shares redeemed |
|
| (346,221 | ) |
| (1,111,410 | ) |
| (1,849,801 | ) |
| (2,339,143 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 1,381,543 |
|
| 1,724,632 |
|
| 2,268,259 |
|
| 5,815,868 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 754,601 |
|
| 1,516,999 |
|
| 1,654,478 |
|
| 4,252,061 |
|
Dividends reinvested |
|
| 303,827 |
|
| — |
|
| 701,613 |
|
| 75,546 |
|
Value of shares redeemed |
|
| (152,550 | ) |
| (405,168 | ) |
| (775,105 | ) |
| (1,033,237 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 905,878 |
|
| 1,111,831 |
|
| 1,580,986 |
|
| 3,294,370 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 68,788 |
|
| 328,562 |
|
| 316,245 |
|
| 768,456 |
|
Dividends reinvested |
|
| 31,418 |
|
| — |
|
| 64,791 |
|
| 6,011 |
|
Value of shares redeemed |
|
| (46,040 | ) |
| (103,210 | ) |
| (104,379 | ) |
| (231,903 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 54,166 |
|
| 225,352 |
|
| 276,657 |
|
| 542,564 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
| $ | 2,341,587 |
| $ | 3,061,815 |
| $ | 4,125,902 |
| $ | 9,652,802 |
|
|
|
|
|
|
| ||||||||
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 97,686 |
|
| 206,802 |
|
| 221,710 |
|
| 599,873 |
|
Reinvested |
|
| 30,686 |
|
| — |
|
| 93,719 |
|
| 14,632 |
|
Redeemed |
|
| (26,239 | ) |
| (81,057 | ) |
| (146,342 | ) |
| (173,704 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 102,133 |
|
| 125,745 |
|
| 169,087 |
|
| 440,801 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 57,157 |
|
| 112,606 |
|
| 129,274 |
|
| 318,815 |
|
Reinvested |
|
| 22,556 |
|
| — |
|
| 53,152 |
|
| 5,949 |
|
Redeemed |
|
| (11,858 | ) |
| (29,929 | ) |
| (60,450 | ) |
| (77,193 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 67,855 |
|
| 82,677 |
|
| 121,976 |
|
| 247,571 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 5,402 |
|
| 24,063 |
|
| 25,229 |
|
| 56,478 |
|
Reinvested |
|
| 2,334 |
|
| — |
|
| 4,890 |
|
| 471 |
|
Redeemed |
|
| (3,632 | ) |
| (7,943 | ) |
| (8,273 | ) |
| (17,406 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 4,104 |
|
| 16,120 |
|
| 21,846 |
|
| 39,543 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 22 |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Moderate Growth Strategy Fund |
| Conservative Growth Strategy Fund |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 262,192 |
| $ | 409,400 |
| $ | 118,852 |
| $ | 168,893 |
|
Net realized gains (losses) from investments transactions |
|
| 16,159 |
|
| 1,499,302 |
|
| (30,181 | ) |
| 267,881 |
|
Change in unrealized appreciation/depreciation from investments |
|
| (2,581,701 | ) |
| 2,609,124 |
|
| (616,679 | ) |
| 433,433 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (2,303,350 | ) |
| 4,517,826 |
|
| (528,008 | ) |
| 870,207 |
|
|
|
|
|
|
| ||||||||
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (153,961 | ) |
| (262,090 | ) |
| (74,328 | ) |
| (94,234 | ) |
Class B Shares |
|
| (71,898 | ) |
| (132,843 | ) |
| (41,535 | ) |
| (56,207 | ) |
Class C Shares |
|
| (8,684 | ) |
| (11,916 | ) |
| (3,644 | ) |
| (6,383 | ) |
Net realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (772,146 | ) |
| (107,302 | ) |
| (146,067 | ) |
| (34,028 | ) |
Class B Shares |
|
| (634,501 | ) |
| (94,696 | ) |
| (110,864 | ) |
| (29,598 | ) |
Class C Shares |
|
| (74,952 | ) |
| (6,378 | ) |
| (9,305 | ) |
| (3,582 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| (1,716,142 | ) |
| (615,225 | ) |
| (385,743 | ) |
| (224,032 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 4,951,701 |
|
| 11,050,090 |
|
| 1,442,327 |
|
| 5,431,997 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 932,209 |
|
| 14,952,691 |
|
| 528,576 |
|
| 6,078,172 |
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 38,419,845 |
|
| 23,467,154 |
|
| 12,034,303 |
|
| 5,956,131 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 39,352,054 |
| $ | 38,419,845 |
| $ | 12,562,879 |
| $ | 12,034,303 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | 41,787 |
| $ | 14,138 |
| $ | 17,428 |
| $ | 18,083 |
|
|
|
|
|
|
|
|
|
|
23 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
HSBC INVESTOR LIFELINE FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Moderate Growth Strategy Fund |
| Conservative Growth Strategy Fund |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
CAPITAL TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
| $ | 3,118,080 |
| $ | 7,912,763 |
| $ | 1,103,796 |
| $ | 1,988,365 |
|
Proceeds from shares issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 1,774,237 |
|
Dividends reinvested |
|
| 923,504 |
|
| 366,055 |
|
| 211,906 |
|
| 127,648 |
|
Value of shares redeemed |
|
| (1,867,977 | ) |
| (2,131,003 | ) |
| (833,329 | ) |
| (631,447 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 2,173,607 |
|
| 6,147,815 |
|
| 482,373 |
|
| 3,258,803 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 2,658,846 |
|
| 4,788,564 |
|
| 895,356 |
|
| 1,387,844 |
|
Proceeds from shares issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 981,527 |
|
Dividends reinvested |
|
| 704,767 |
|
| 226,308 |
|
| 146,598 |
|
| 84,374 |
|
Value of shares redeemed |
|
| (970,150 | ) |
| (966,698 | ) |
| (181,193 | ) |
| (366,939 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 2,393,463 |
|
| 4,048,174 |
|
| 860,761 |
|
| 2,086,806 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 479,081 |
|
| 1,158,749 |
|
| 91,510 |
|
| 109,629 |
|
Proceeds from shares issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 23,289 |
|
Dividends reinvested |
|
| 83,636 |
|
| 18,281 |
|
| 12,949 |
|
| 9,965 |
|
Value of shares redeemed |
|
| (178,086 | ) |
| (322,929 | ) |
| (5,266 | ) |
| (56,495 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 384,631 |
|
| 854,101 |
|
| 99,193 |
|
| 86,388 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
| $ | 4,951,701 |
| $ | 11,050,090 |
| $ | 1,442,327 |
| $ | 5,431,997 |
|
|
|
|
|
|
| ||||||||
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 260,689 |
|
| 638,805 |
|
| 98,693 |
|
| 172,826 |
|
Issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 148,136 |
|
Reinvested |
|
| 75,771 |
|
| 29,777 |
|
| 18,738 |
|
| 11,167 |
|
Redeemed |
|
| (157,866 | ) |
| (173,246 | ) |
| (75,356 | ) |
| (54,690 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 178,594 |
|
| 495,336 |
|
| 42,075 |
|
| 277,439 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 222,749 |
|
| 387,531 |
|
| 80,936 |
|
| 121,528 |
|
Issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 82,738 |
|
Reinvested |
|
| 57,807 |
|
| 18,521 |
|
| 13,051 |
|
| 7,465 |
|
Redeemed |
|
| (81,691 | ) |
| (77,311 | ) |
| (16,401 | ) |
| (31,991 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 198,865 |
|
| 328,741 |
|
| 77,586 |
|
| 179,740 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 40,283 |
|
| 95,099 |
|
| 8,016 |
|
| 9,224 |
|
Issued in conversion |
|
| — |
|
| — |
|
| — |
|
| 1,922 |
|
Reinvested |
|
| 7,025 |
|
| 1,520 |
|
| 1,123 |
|
| 864 |
|
Redeemed |
|
| (15,683 | ) |
| (27,016 | ) |
| (460 | ) |
| (4,861 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 31,625 |
|
| 69,603 |
|
| 8,679 |
|
| 7,149 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 24 |
|
HSBC INVESTOR AGGRESSIVE GROWTH STRATEGY FUND |
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment Activities |
| Dividends |
| |||||||||||||
|
|
|
|
|
| ||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Total |
| ||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (g) |
|
| $ | 10.00 |
|
| (0.01 | ) |
| 0.61 |
|
| 0.60 |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.60 |
|
| 0.01 |
|
| 2.01 |
|
| 2.02 |
|
| (0.05 | ) |
| (0.05 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.57 |
|
| — | *(f) |
| 2.98 |
|
| 2.98 |
|
| — |
|
| — |
|
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 15.55 |
|
| — | *(f) |
| (1.18 | ) |
| (1.18 | ) |
| (0.90 | ) |
| (0.90 | ) |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (h) |
|
| $ | 10.00 |
|
| (0.04 | ) |
| 0.61 |
|
| 0.57 |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.57 |
|
| (0.05 | ) |
| 1.97 |
|
| 1.92 |
|
| (0.05 | ) |
| (0.05 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.44 |
|
| (0.11 | )* |
| 2.94 |
|
| 2.83 |
|
| — |
|
| — |
|
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 15.27 |
|
| (0.05 | )* |
| (1.16 | ) |
| (1.21 | ) |
| (0.90 | ) |
| (0.90 | ) |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (i) |
|
| $ | 10.00 |
|
| (0.05 | ) |
| 0.60 |
|
| 0.55 |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.55 |
|
| (0.04 | ) |
| 1.95 |
|
| 1.91 |
|
| (0.05 | ) |
| (0.05 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.41 |
|
| (0.11 | )* |
| 2.96 |
|
| 2.85 |
|
| — |
|
| — |
|
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 15.26 |
|
| (0.05 | )* |
| (1.16 | ) |
| (1.21 | ) |
| (0.90 | ) |
| (0.90 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (g) |
|
| $ | 10.60 |
|
| 6.00 | % |
|
| $ | 726 |
|
| 1.50 | % |
| (0.20 | )% |
| 11.72 | % |
| 49.10 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.57 |
|
| 19.15 | % |
|
|
| 4,116 |
|
| 1.50 | % |
| 0.05 | % |
| 3.52 | % |
| 48.46 | % |
|
Year Ended October 31, 2007 |
|
|
| 15.55 |
|
| 23.71 | % |
|
|
| 7,046 |
|
| 1.50 | % |
| (0.03 | )% |
| 2.27 | % |
| 45.50 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 13.47 |
|
| (7.67 | )% |
|
|
| 7,479 |
|
| 1.50 | % |
| 0.01 | % |
| 1.89 | % |
| 26.00 | % |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (h) |
|
| $ | 10.57 |
|
| 5.70 | % |
|
| $ | 700 |
|
| 2.25 | % |
| (1.01 | )% |
| 11.63 | % |
| 49.10 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.44 |
|
| 18.25 | % |
|
|
| 2,998 |
|
| 2.25 | % |
| (0.70 | )% |
| 4.33 | % |
| 48.46 | % |
|
Year Ended October 31, 2007 |
|
|
| 15.27 |
|
| 22.75 | % |
|
|
| 4,942 |
|
| 2.25 | % |
| (0.77 | )% |
| 3.02 | % |
| 45.50 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 13.16 |
|
| (8.03 | )% |
|
|
| 5,152 |
|
| 2.25 | % |
| (0.74 | )% |
| 2.64 | % |
| 26.00 | % |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (i) |
|
| $ | 10.55 |
|
| 5.50 | % |
|
| $ | 21 |
|
| 2.25 | % |
| (1.15 | )% |
| 9.79 | % |
| 49.10 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.41 |
|
| 18.19 | % |
|
|
| 229 |
|
| 2.25 | % |
| (0.69 | )% |
| 4.20 | % |
| 48.46 | % |
|
Year Ended October 31, 2007 |
|
|
| 15.26 |
|
| 22.97 | % |
|
|
| 528 |
|
| 2.25 | % |
| (0.79 | )% |
| 2.99 | % |
| 45.50 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 13.15 |
|
| (8.03 | )% |
|
|
| 509 |
|
| 2.25 | % |
| (0.74 | )% |
| 2.64 | % |
| 26.00 | % |
|
|
| |
* | Calculated based on average shares outstanding. | |
|
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. | |
|
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. | |
|
| |
(c) | Annualized for periods less than one year. | |
|
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. | |
|
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. | |
|
| |
(f) | Rounds to less than $0.01. | |
|
| |
(g) | Class A Shares commenced operations on February 14, 2005. | |
|
| |
(h) | Class B Shares commenced operations on February 9, 2005. | |
|
| |
(i) | Class C Shares commenced operations on June 9, 2005. | |
|
|
|
25 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
|
HSBC INVESTOR GROWTH STRATEGY FUND |
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment Activities |
| Dividends |
| ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Total |
| |||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (f) |
|
| $ | 10.00 |
|
| 0.02 |
|
| 0.70 |
|
| 0.72 |
|
| — |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.72 |
|
| 0.07 |
|
| 1.69 |
|
| 1.76 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.45 |
|
| 0.11 | * |
| 2.34 |
|
| 2.45 |
|
| (0.08 | ) |
| (0.09 | ) |
| (0.17 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 14.73 |
|
| 0.06 | * |
| (1.08 | ) |
| (1.02 | ) |
| (0.09 | ) |
| (0.74 | ) |
| (0.83 | ) |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (i) |
|
| $ | 10.00 |
|
| (0.01 | ) |
| 0.79 |
|
| 0.78 |
|
| — |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.78 |
|
| 0.02 |
|
| 1.66 |
|
| 1.68 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.43 |
|
| 0.01 | * |
| 2.34 |
|
| 2.35 |
|
| (0.02 | ) |
| (0.09 | ) |
| (0.11 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 14.67 |
|
| 0.01 | * |
| (1.08 | ) |
| (1.07 | ) |
| — | (k) |
| (0.74 | ) |
| (0.74 | ) |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.00 |
|
| (0.02 | ) |
| 0.84 |
|
| 0.82 |
|
| — |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.82 |
|
| 0.02 |
|
| 1.67 |
|
| 1.69 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
|
Year Ended October 31, 2007 |
|
|
| 12.48 |
|
| 0.01 | * |
| 2.35 |
|
| 2.36 |
|
| (0.01 | ) |
| (0.09 | ) |
| (0.10 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 14.74 |
|
| 0.01 | * |
| (1.08 | ) |
| (1.07 | ) |
| (0.01 | ) |
| (0.74 | ) |
| (0.75 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (f) |
|
| $ | 10.72 |
|
| 7.20 | % |
|
| $ | 2,814 |
|
| 1.50 | % |
| 0.42 | % |
| 5.19 | % |
| 69.23 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.45 |
|
| 16.41 | % |
|
|
| 12,562 |
|
| 1.50 | % |
| 0.87 | % |
| 2.19 | % |
| 80.30 | % |
|
Year Ended October 31, 2007 |
|
|
| 14.73 |
|
| 19.92 | %(g) |
|
|
| 21,352 |
|
| 1.50 | % |
| 0.84 | % |
| 1.65 | % |
| 73.45 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.88 |
|
| (7.07 | )%(h) |
|
|
| 20,849 |
|
| 1.48 | % |
| 0.90 | % |
| 1.48 | % |
| 29.57 | % |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (i) |
|
| $ | 10.78 |
|
| 7.80 | % |
|
| $ | 2,670 |
|
| 2.25 | % |
| (0.38 | )% |
| 5.74 | % |
| 69.23 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.43 |
|
| 15.57 | % |
|
|
| 8,702 |
|
| 2.25 | % |
| 0.11 | % |
| 2.94 | % |
| 80.30 | % |
|
Year Ended October 31, 2007 |
|
|
| 14.67 |
|
| 18.98 | %(g) |
|
|
| 13,905 |
|
| 2.25 | % |
| 0.09 | % |
| 2.40 | % |
| 73.45 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.86 |
|
| (7.44 | )%(h) |
|
|
| 13,763 |
|
| 2.23 | % |
| 0.16 | % |
| 2.23 | % |
| 29.57 | % |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.82 |
|
| 8.20 | % |
|
| $ | 106 |
|
| 2.25 | % |
| (0.55 | )% |
| 5.24 | % |
| 69.23 | % |
|
Year Ended October 31, 2006 |
|
|
| 12.48 |
|
| 15.61 | % |
|
|
| 585 |
|
| 2.25 | % |
| 0.14 | % |
| 2.90 | % |
| 80.30 | % |
|
Year Ended October 31, 2007 |
|
|
| 14.74 |
|
| 19.04 | %(g) |
|
|
| 1,273 |
|
| 2.25 | % |
| 0.07 | % |
| 2.39 | % |
| 73.45 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.92 |
|
| (7.42 | )%(h) |
|
|
| 1,398 |
|
| 2.23 | % |
| 0.18 | % |
| 2.23 | % |
| 29.57 | % |
|
|
| |
* | Calculated based on average shares outstanding. | |
|
| |
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. | |
|
| |
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. | |
|
| |
(c) | Annualized for periods less than one year. | |
|
| |
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. | |
|
| |
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. | |
|
| |
(f) | Class A Shares commenced operations on February 8, 2005. | |
|
| |
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.23%, 0.24% and 0.23% for Class A Shares, Class B Shares and Class C Shares, respectively. | |
|
| |
(h) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares and Class C Shares, respectively. | |
|
| |
(i) | Class B Shares commenced operations on February 1, 2005. | |
|
| |
(j) | Class C Shares commenced operations on April 27, 2005. | |
|
| |
(k) | Rounds to less than $0.01. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 26 |
|
HSBC INVESTOR MODERATE GROWTH STRATEGY FUND |
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment Activities |
| Dividends |
| |||||||||||||||||
|
|
|
|
| ||||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Total |
| |||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Period Ended October 31, 2005 (f) |
|
| $ | 10.00 |
|
| 0.04 |
|
| 0.45 |
|
| 0.49 |
|
| — | (g) |
| — |
|
| — | (g) |
|
Year Ended October 31, 2006 |
|
|
| 10.49 |
|
| 0.17 |
|
| 1.23 |
|
| 1.40 |
|
| (0.17 | ) |
| (0.01 | ) |
| (0.18 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.71 |
|
| 0.21 | * |
| 1.65 |
|
| 1.86 |
|
| (0.20 | ) |
| (0.10 | ) |
| (0.30 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 13.27 |
|
| 0.11 | * |
| (0.87 | ) |
| (0.76 | ) |
| (0.10 | ) |
| (0.50 | ) |
| (0.60 | ) |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.00 |
|
| 0.01 |
|
| 0.49 |
|
| 0.50 |
|
| — | (g) |
| — |
|
| — | (g) |
|
Year Ended October 31, 2006 |
|
|
| 10.50 |
|
| 0.09 |
|
| 1.22 |
|
| 1.31 |
|
| (0.08 | ) |
| (0.01 | ) |
| (0.09 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.72 |
|
| 0.12 | * |
| 1.65 |
|
| 1.77 |
|
| (0.12 | ) |
| (0.10 | ) |
| (0.22 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 13.27 |
|
| 0.06 | * |
| (0.87 | ) |
| (0.81 | ) |
| (0.05 | ) |
| (0.50 | ) |
| (0.55 | ) |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
|
| $ | 10.00 |
|
| — | (g) |
| 0.28 |
|
| 0.28 |
|
| — |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.28 |
|
| 0.09 |
|
| 1.19 |
|
| 1.28 |
|
| (0.08 | ) |
| (0.01 | ) |
| (0.09 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.47 |
|
| 0.12 | * |
| 1.60 |
|
| 1.72 |
|
| (0.12 | ) |
| (0.10 | ) |
| (0.22 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.97 |
|
| 0.06 | * |
| (0.84 | ) |
| (0.78 | ) |
| (0.06 | ) |
| (0.50 | ) |
| (0.56 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| |||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Period Ended October 31, 2005 (f) |
|
| $ | 10.49 |
|
| 4.94 | % |
|
| $ | 3,241 |
|
| 1.50 | % |
| 0.95 | % |
| 4.30 | % |
| 84.55 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.71 |
|
| 13.40 | % |
|
|
| 11,973 |
|
| 1.50 | % |
| 1.65 | % |
| 2.12 | % |
| 101.57 | % |
|
Year Ended October 31, 2007 |
|
|
| 13.27 |
|
| 16.12 | %(h) |
|
|
| 20,140 |
|
| 1.50 | % |
| 1.70 | % |
| 1.60 | % |
| 92.87 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.91 |
|
| (5.84 | )%(i) |
|
|
| 20,211 |
|
| 1.43 | % |
| 1.77 | % |
| 1.43 | % |
| 31.50 | % |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.50 |
|
| 5.03 | % |
|
| $ | 3,604 |
|
| 2.25 | % |
| 0.18 | % |
| 5.01 | % |
| 84.55 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.72 |
|
| 12.45 | % |
|
|
| 10,731 |
|
| 2.25 | % |
| 0.91 | % |
| 2.87 | % |
| 101.57 | % |
|
Year Ended October 31, 2007 |
|
|
| 13.27 |
|
| 15.25 | %(h) |
|
|
| 16,513 |
|
| 2.25 | % |
| 0.95 | % |
| 2.35 | % |
| 92.87 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.91 |
|
| (6.17 | )%(i) |
|
|
| 17,190 |
|
| 2.18 | % |
| 1.02 | % |
| 2.18 | % |
| 31.50 | % |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
|
| $ | 10.28 |
|
| 2.80 | % |
|
| $ | 278 |
|
| 2.25 | % |
| 0.05 | % |
| 4.69 | % |
| 84.55 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.47 |
|
| 12.53 | % |
|
|
| 763 |
|
| 2.25 | % |
| 0.87 | % |
| 2.83 | % |
| 101.57 | % |
|
Year Ended October 31, 2007 |
|
|
| 12.97 |
|
| 15.20 | %(h) |
|
|
| 1,766 |
|
| 2.25 | % |
| 0.95 | % |
| 2.33 | % |
| 92.87 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.63 |
|
| (6.14 | )%(i) |
|
|
| 1,951 |
|
| 2.18 | % |
| 1.02 | % |
| 2.18 | % |
| 31.50 | % |
|
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | Class A Shares commenced operations on February 3, 2005. |
|
|
(g) | Rounds to less than $0.01. |
|
|
(h) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.41%, 0.41% and 0.33% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.10%, 0.10% and 0.10% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | Class B Shares commenced operations on February 1, 2005. |
|
|
(k) | Class C Shares commenced operations on June 9, 2005. |
|
|
|
27 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
|
HSBC INVESTOR CONSERVATIVE GROWTH STRATEGY FUND |
Financial Highlights
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment Activities |
| Dividends |
| ||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Total |
| |||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Period Ended October 31, 2005 (i) |
|
| $ | 10.00 |
|
| 0.04 |
|
| 0.26 |
|
| 0.30 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
|
Year Ended October 31, 2006 |
|
|
| 10.29 |
|
| 0.22 |
|
| 0.85 |
|
| 1.07 |
|
| (0.25 | ) |
| — |
|
| (0.25 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.11 |
|
| 0.29 | * |
| 1.03 |
|
| 1.32 |
|
| (0.27 | ) |
| (0.12 | ) |
| (0.39 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.04 |
|
| 0.13 | * |
| (0.63 | ) |
| (0.50 | ) |
| (0.13 | ) |
| (0.26 | ) |
| (0.39 | ) |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.00 |
|
| 0.03 |
|
| 0.16 |
|
| 0.19 |
|
| — | (f) |
| — |
|
| — | (f) |
|
Year Ended October 31, 2006 |
|
|
| 10.19 |
|
| 0.15 |
|
| 0.83 |
|
| 0.98 |
|
| (0.16 | ) |
| — |
|
| (0.16 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.01 |
|
| 0.20 | * |
| 1.05 |
|
| 1.25 |
|
| (0.20 | ) |
| (0.12 | ) |
| (0.32 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.94 |
|
| 0.09 | * |
| (0.64 | ) |
| (0.55 | ) |
| (0.09 | ) |
| (0.26 | ) |
| (0.35 | ) |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
|
| $ | 10.00 |
|
| 0.03 |
|
| 0.38 |
|
| 0.41 |
|
| — |
|
| — |
|
| — |
|
|
Year Ended October 31, 2006 |
|
|
| 10.41 |
|
| 0.15 |
|
| 0.85 |
|
| 1.00 |
|
| (0.17 | ) |
| — |
|
| (0.17 | ) |
|
Year Ended October 31, 2007 |
|
|
| 11.24 |
|
| 0.21 | * |
| 1.11 |
|
| 1.32 |
|
| (0.19 | ) |
| (0.12 | ) |
| (0.31 | ) |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 12.25 |
|
| 0.09 | * |
| (0.64 | ) |
| (0.55 | ) |
| (0.09 | ) |
| (0.26 | ) |
| (0.35 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| |||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Period Ended October 31, 2005 (i) |
|
| $ | 10.29 |
|
| 2.96 | % |
|
| $ | 1,054 |
|
| 1.50 | % |
| 1.28 | % |
| 8.01 | % |
| 72.14 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.11 |
|
| 10.48 | % |
|
|
| 3,069 |
|
| 1.50 | % |
| 2.33 | % |
| 3.22 | % |
| 96.58 | % |
|
Year Ended October 31, 2007 |
|
|
| 12.04 |
|
| 12.13 | %(g) |
|
|
| 6,669 |
|
| 1.50 | % |
| 2.52 | % |
| 2.06 | % |
| 88.67 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.15 |
|
| (4.16 | )%(h) |
|
|
| 6,643 |
|
| 1.50 | % |
| 2.35 | % |
| 1.65 | % |
| 27.62 | % |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
|
| $ | 10.19 |
|
| 1.92 | % |
|
| $ | 1,306 |
|
| 2.25 | % |
| 0.53 | % |
| 9.21 | % |
| 72.14 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.01 |
|
| 9.65 | % |
|
|
| 2,567 |
|
| 2.25 | % |
| 1.54 | % |
| 3.98 | % |
| 96.58 | % |
|
Year Ended October 31, 2007 |
|
|
| 11.94 |
|
| 11.51 | %(g) |
|
|
| 4,928 |
|
| 2.25 | % |
| 1.77 | % |
| 2.82 | % |
| 88.67 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.04 |
|
| (4.60 | )%(h) |
|
|
| 5,416 |
|
| 2.25 | % |
| 1.60 | % |
| 2.40 | % |
| 27.62 | % |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
|
| $ | 10.41 |
|
| 4.10 | % |
|
| $ | 82 |
|
| 2.25 | % |
| 0.66 | % |
| 7.94 | % |
| 72.14 | % |
|
Year Ended October 31, 2006 |
|
|
| 11.24 |
|
| 9.66 | % |
|
|
| 320 |
|
| 2.25 | % |
| 1.56 | % |
| 3.92 | % |
| 96.58 | % |
|
Year Ended October 31, 2007 |
|
|
| 12.25 |
|
| 11.97 | %(g) |
|
|
| 437 |
|
| 2.25 | % |
| 1.78 | % |
| 2.85 | % |
| 88.67 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
|
|
| 11.35 |
|
| (4.50 | )%(h) |
|
|
| 503 |
|
| 2.25 | % |
| 1.60 | % |
| 2.40 | % |
| 27.62 | % |
|
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | Rounds to less than $0.01. |
|
|
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.44%, 0.47% and 0.48% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(h) | During the period ended April 30, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.12%, 0.12% and 0.12% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | Class A Shares commenced operations on February 23, 2005. |
|
|
(j) | Class B Shares commenced operations on February 17, 2005. |
|
|
(k) | Class C Shares commenced operations on April 19, 2005. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 28 |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements—As of April 30, 2008 (Unaudited) |
|
|
1. | Organization: |
|
|
| The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of April 30, 2008, the Trust is comprised of 20 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial statements are presented for the following 4 funds (individually a “Fund”, collectively the “LifeLine Funds”): |
|
|
|
| Fund | Short Name |
| ||
| HSBC Investor Aggressive Growth Strategy Fund | Aggressive Growth Fund |
| HSBC Investor Growth Strategy Fund | Growth Strategy Fund |
| HSBC Investor Moderate Growth Strategy Fund | Moderate Growth Fund |
| HSBC Investor Conservative Growth Strategy Fund | Conservative Growth Fund |
|
|
| The LifeLine Funds are a diversified series of the Trust and part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
|
|
| The LifeLine Funds utilize a master-feeder fund structure and seek to achieve their investment objectives by investing all of their investable assets in the Portfolios and the Money Market Fund (collectively the “Underlying Portfolios”) per the following schedule from November 1, 2007 to April 30, 2008: |
|
|
| LifeLine Funds Portfolio Weightings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underlying Portfolios |
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
|
|
|
|
|
| |||||||||
| Core Plus Fixed Income Portfolio |
|
| None |
|
| 15 | % |
| 26 | % |
| 25 | % |
| High Yield Fixed Income Portfolio |
|
| None |
|
| 2 | % |
| 5 | % |
| 8 | % |
| Intermediate Duration Fixed Income Portfolio |
|
| None |
|
| None |
|
| None |
|
| 3 | % |
| Growth Portfolio |
|
| 21 | % |
| 21 | % |
| 19 | % |
| 15 | % |
| International Equity Portfolio |
|
| 23 | % |
| 20 | % |
| 15 | % |
| 10 | % |
| Opportunity Portfolio |
|
| 34 | % |
| 20 | % |
| 11 | % |
| 4 | % |
| Value Portfolio |
|
| 21 | % |
| 21 | % |
| 18 | % |
| 14 | % |
| Money Market Fund |
|
| 1 | % |
| 1 | % |
| 6 | % |
| 21 | % |
|
|
|
|
|
|
| ||||||||
| Total |
|
| 100 | % |
| 100 | % |
| 100 | % |
| 100 | % |
|
|
|
|
|
|
|
|
|
| LifeLine Funds Portfolio Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Underlying Portfolios |
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
|
|
|
|
|
| |||||||||
| Core Plus Fixed Income Portfolio |
| $ | — |
| $ | 5,472,134 |
| $ | 10,329,433 |
| $ | 3,168,828 |
|
| High Yield Fixed Income Portfolio |
|
| — |
|
| 726,600 |
|
| 1,978,226 |
|
| 1,009,850 |
|
| Intermediate Duration Fixed Income Portfolio |
|
| — |
|
| — |
|
| — |
|
| 380,095 |
|
| Growth Portfolio |
|
| 2,736,686 |
|
| 7,511,820 |
|
| 7,401,693 |
|
| 1,864,460 |
|
| International Equity Portfolio |
|
| 3,021,856 |
|
| 7,212,652 |
|
| 5,891,310 |
|
| 1,253,180 |
|
| Opportunity Portfolio |
|
| 4,480,007 |
|
| 7,233,555 |
|
| 4,332,706 |
|
| 502,686 |
|
| Value Portfolio |
|
| 2,759,748 |
|
| 7,575,143 |
|
| 7,071,165 |
|
| 1,754,774 |
|
| Money Market Fund |
|
| 132,515 |
|
| 363,050 |
|
| 2,369,397 |
|
| 2,645,842 |
|
|
|
|
|
|
|
| ||||||||
| Total |
| $ | 13,130,812 |
| $ | 36,094,954 |
| $ | 39,373,930 |
| $ | 12,579,715 |
|
|
|
|
|
|
|
|
|
|
29 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
|
|
| The HSBC Investor Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio,” collectively the “Portfolios”) are each a diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements. |
|
|
| The HSBC Investor Money Market Fund (the “Money Market Fund”) is an open-end management investment company and, like each LifeLine Fund, is a diversified series of the Trust. |
|
|
| The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the LifeLine Funds. |
|
|
| The LifeLine Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. Each Fund offers four classes of shares: Class A Shares, Class B Shares, Class C Shares, and Class R Shares (currently not operational with assets). Class A Shares of the Aggressive Growth Fund, Growth Strategy Fund, Moderate Growth Fund, and the Conservative Growth Fund have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the LifeLine Funds are offered without any front-end sales charge but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the LifeLine Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. No sales charges are assessed with respect to Class R Shares of the Funds. Each class of shares in the LifeLine Funds has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. |
|
|
| Under the Trust’s organizational documents, the LifeLine Funds’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the LifeLine Funds. In addition, in the normal course of business, the LifeLine Funds enter into contracts with its service providers, which also provide for indemnifications by the LifeLine Funds. The LifeLine Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the LifeLine Funds. However, based on experience, the LifeLine Funds expect that risk of loss to be remote. |
|
|
2. | Significant Accounting Policies: |
|
|
| The following is a summary of the significant accounting policies followed by the LifeLine Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
|
|
| Securities Valuation: |
|
|
| The LifeLine Funds record their investments in the Underlying Portfolios at fair value. The LifeLine Funds record their investments in the Money Market Fund at the respective net asset value reported by the fund. The underlying securities of the Portfolios and the Money Market Fund are recorded at fair value and at amortized cost, respectively, as more fully discussed in the notes to those financial statements. |
|
|
| Investment Transactions and Related Income: |
|
|
| The LifeLine Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolio. Dividend income is recorded on the ex-dividend date for the Money Market Fund. Changes in holdings of the Money Market Fund for each LifeLine Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Money Market Fund are reflected as of trade date. In addition, the LifeLine Funds accrue their own expenses daily as incurred. |
|
|
HSBC INVESTOR LIFELINE FUNDS | 30 |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
|
|
| Allocations: |
|
|
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all LifeLine Funds within the HSBC Investor Family of Funds in relation to the net assets of each Fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
|
|
| Dividends to Shareholders: |
|
|
| Dividends from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Growth Fund and Conservative Growth Fund, and annually in the case of the Aggressive Growth Fund and Growth Strategy Fund. |
|
|
| The LifeLine Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the LifeLine Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net capital gains of regulated investment companies. |
|
|
| The amount and character of net investment income and net realized gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and certain distributions), such amounts are reclassified within the composition of net assets; temporary differences (e.g., wash losses and post-october loss deferrals) do not require reclassification. The LifeLine Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. |
|
|
| Redemption Fee: |
|
|
| A redemption fee of 2.00% will be charged and recorded as paid-in-capital for any shares redeemed or exchanged after holding them for less than 30 days. This fee does not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that cannot implement the fee. For the fiscal year and period ended October 31, 2007 and April 30, 2008, respectively, the following LifeLine Funds collected redemption fees as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fund |
| October 31, 2007 |
| April 30, 2008 |
| ||||||
|
|
|
| |||||||||
| Aggressive Growth Fund |
|
| $ | 1,573 |
|
|
| $ | 6 |
|
|
| Growth Strategy Fund |
|
|
| 729 |
|
|
|
| 48 |
|
|
| Moderate Growth Fund |
|
|
| 515 |
|
|
|
| 1,844 |
|
|
| Conservative Growth Fund |
|
|
| 1,305 |
|
|
|
| 5 |
|
|
|
|
| Federal Income Taxes: |
|
|
| Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required. |
|
|
| In addition, effective April 30, 2008, the Trusts’ adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations. |
|
|
31 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
|
|
| New Accounting Pronouncements: |
|
|
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
|
|
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Lifeline Funds financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
|
|
3. | Related Party Transactions: Investment Management: |
|
|
|
|
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the LifeLine Funds. As Investment Adviser, HSBC manages the investments of the LifeLine Funds and continuously reviews, supervises and administers the LifeLine Funds’ investments. For its services as Investment Adviser, HSBC is entitled to receive a fee, computed daily and paid monthly, based on average daily net assets, at an annual rate of 0.05% for each Fund. |
|
|
| Administration: |
|
|
| HSBC serves the Lifeline Funds as Administrator. Under the terms of the Administration Agreement effective, HSBC receives from the Lifeline Funds a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
|
|
| Based on Average Daily Net Assets of |
| Fee Rate |
| |
|
|
| |||
| Up to $12 billion |
| 0.0525 | % |
|
| In excess of $12 billion |
| 0.0350 | % |
|
|
|
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in Underlying Portfolios by LifeLine Funds, the Portfolios pay half of the administration fee and the LifeLine Funds pay half, for a combination of the total fee rate above. |
|
|
| The administration fees accrued for each class by Fund, of which 50% of such fees are deemed to be class specific, are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
|
|
|
|
|
|
| ||||||||
| Class A |
| $ | 780 |
| $ | 2,273 |
| $ | 2,184 |
| $ | 714 |
|
| Class B |
|
| 538 |
|
| 1,504 |
|
| 1,858 |
|
| 582 |
|
| Class C |
|
| 53 |
|
| 152 |
|
| 211 |
|
| 54 |
|
|
|
|
|
|
|
| ||||||||
| Total |
| $ | 1,371 |
| $ | 3,929 |
| $ | 4,253 |
| $ | 1,350 |
|
|
|
|
|
|
|
|
|
|
HSBC INVESTOR LIFELINE FUNDS | 32 |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements—As of April 30, 2008 (Unaudited) (continued) |
|
|
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trust’s sub-administrator, subject to the general supervision of the Trusts’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain out of pocket expenses. Expenses incurred are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
|
|
| Distribution Plan: |
|
|
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the LifeLine Funds, respectively. Foreside, as Distributor, also received $405,635, $247,179 and $12,433 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $396,664, $246,553 and $12,419 were reallowed to affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively. |
|
|
| Shareholder Servicing: |
|
|
| The Trust has adopted an Shareholder Services Plan, formerly known as Administrative Service Plan, which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee up to 0.25%, 0.25%, 0.25%, and 0.75% that is computed daily and paid monthly equal to a percentage of average daily net assets of Class A Shares, Class B Shares, Class C Shares, and Class R Shares of the Lifeline Funds, respectively. The fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Shareholder Services Plan currently are not intended to exceed, in the aggregate, 0.25% of the average daily net assets of Class A Shares, 1.00% of the average daily net assets of Class B Shares and Class C Shares. |
|
|
| Fund Accounting, Transfer Agency and Trustee: |
|
|
| Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent for the LifeLine Funds, Citi Ohio receives a fee based on the number of LifeLine Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant for the LifeLine Funds, Citi Ohio receives an annual fee per Fund and share class, subject to minimums and reimbursement of certain expenses. |
|
|
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
33 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements— As of April 30, 2008 (Unaudited) (continued) |
|
|
| Fee Reductions: |
|
|
| The Investment Adviser has agreed to contractually limit through March 1, 2009 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the LifeLine Funds. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: Class A Shares 1.50%, Class B Shares 2.25%, Class C Shares 2.25%. |
|
|
| The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of each Fund. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. |
|
|
4. | Investment Transactions: |
|
|
| Aggregate contributions and withdrawals of the Underlying Portfolios for the period ended April 30, 2008 totaled: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contributions |
| Withdrawals |
| ||||||
|
|
|
| ||||||||
Aggressive Growth Fund |
|
| $ | 2,090,938 |
|
|
| $ | 593,341 |
|
|
Growth Strategy Fund |
|
|
| 4,655,508 |
|
|
|
| 2,759,464 |
|
|
Moderate Growth Fund |
|
|
| 5,888,166 |
|
|
|
| 2,743,780 |
|
|
Conservative Growth Fund |
|
|
| 1,952,369 |
|
|
|
| 1,022,192 |
|
|
|
|
5. | Federal Tax Information: |
|
|
| The tax characteristics of dividends paid by the LifeLine Funds during the latest tax year ended as of October 31, 2007 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid from |
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
|
| Ordinary |
| Net Long Term |
| Total |
| Tax |
| Total |
| |||||||||
|
|
|
|
|
|
| ||||||||||||||
Growth Strategy Fund |
| $ | 103,401 |
|
| $ | 164,526 |
|
| $ | 267,927 |
|
| $ | — |
|
| $ | 267,927 |
|
Moderate Growth Fund |
|
| 406,849 |
|
|
| 208,376 |
|
|
| 615,225 |
|
|
| — |
|
|
| 615,225 |
|
Conservative Growth Fund |
|
| 156,824 |
|
|
| 67,208 |
|
|
| 224,032 |
|
|
| — |
|
|
| 224,032 |
|
|
|
| As of the latest tax year end October 31, 2007, the components of accumulated earnings/(deficit) on a tax basis for the LifeLine Funds were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Undistributed |
| Undistributed |
| Accumulated |
| Dividends |
| Accumulated |
| Unrealized |
| Total |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||
Aggressive Growth Fund |
|
| $ | 87,226 |
|
|
| $ | — |
|
|
| $ | 667,264 |
|
|
| $ | 754,490 |
|
|
| $ | — |
|
|
| $ | — |
|
|
| $ | 1,955,791 |
|
|
| $ | 2,710,281 |
|
|
Growth Strategy Fund |
|
|
| 417,995 |
|
|
|
| — |
|
|
|
| 1,575,493 |
|
|
|
| 1,993,488 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 4,889,569 |
|
|
|
| 6,883,057 |
|
|
Moderate Growth Fund |
|
|
| 246,714 |
|
|
|
| — |
|
|
|
| 1,257,947 |
|
|
|
| 1,504,661 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 4,019,932 |
|
|
|
| 5,524,593 |
|
|
Conservative Growth Fund |
|
|
| 57,735 |
|
|
|
| — |
|
|
|
| 228,458 |
|
|
|
| 286,193 |
|
|
|
| — |
|
|
|
| — |
|
|
|
| 800,828 |
|
|
|
| 1,087,021 |
|
|
|
|
|
| (1) | Total dividends paid may differ from the amount reported in the Statement of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
|
|
|
| (2) | The differences between book-basis and tax-basis unrealized appreciation/deprecation are attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain derivative instruments, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts. |
|
|
|
| The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings and any net capital loss carry-forwards will be determined at the end of the current tax year ending October 31, 2008. |
|
|
HSBC INVESTOR LIFELINE FUNDS | 34 |
|
HSBC INVESTOR LIFELINE FUNDS |
Notes to Financial Statements— As of April 30, 2008 (Unaudited) (continued) |
|
|
6. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
|
|
35 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
Investment Adviser Contract Approval—April 30, 2008 (Unaudited) |
|
|
|
| The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”). | |
|
|
|
| In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others: | |
|
|
|
|
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale. |
|
|
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size. |
|
|
|
|
| Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
|
|
|
|
| Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
|
|
|
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements. |
|
|
HSBC INVESTOR LIFELINE FUNDS | 36 |
|
HSBC INVESTOR LIFELINE FUNDS |
Table of Shareholders Expenses (Unaudited)—As of April 30, 2008 |
|
|
| As a shareholder of the HSBC Investor LifeLine Funds (“Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and/or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. |
|
|
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008. |
|
|
| Actual Example |
|
|
| The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending Account |
| Expenses Paid |
| Annualized |
| ||||||||||
|
|
|
|
|
|
|
| ||||||||||||||
Aggressive Growth Strategy Fund |
| Class A Shares |
|
| $ | 1,000.00 |
|
|
| $ | 923.30 |
|
|
| $ | 7.17 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 919.70 |
|
|
|
| 10.74 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 919.70 |
|
|
|
| 10.74 |
|
| 2.25 | % |
|
Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 929.30 |
|
|
|
| 7.10 |
|
| 1.48 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 925.60 |
|
|
|
| 10.68 |
|
| 2.23 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 925.80 |
|
|
|
| 10.68 |
|
| 2.23 | % |
|
Moderate Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 941.60 |
|
|
|
| 6.90 |
|
| 1.43 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 938.30 |
|
|
|
| 10.51 |
|
| 2.18 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 938.60 |
|
|
|
| 10.51 |
|
| 2.18 | % |
|
Conservative Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 958.40 |
|
|
|
| 7.30 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 954.00 |
|
|
|
| 10.93 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 955.00 |
|
|
|
| 10.94 |
|
| 2.25 | % |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
37 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
Table of Shareholders Expenses (Unaudited)—As of April 30, 2008 (continued) |
|
|
| Hypothetical Example for Comparison Purposes |
|
|
| The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
|
|
| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||||||||
|
|
|
|
|
|
|
| ||||||||||||||
Aggressive Growth Strategy Fund |
| Class A Shares |
|
| $ | 1,000.00 |
|
|
| $ | 1,017.40 |
|
|
| $ | 7.52 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.67 |
|
|
|
| 11.27 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.67 |
|
|
|
| 11.27 |
|
| 2.25 | % |
|
Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,017.50 |
|
|
|
| 7.42 |
|
| 1.48 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.77 |
|
|
|
| 11.17 |
|
| 2.23 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.77 |
|
|
|
| 11.17 |
|
| 2.23 | % |
|
Moderate Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,017.75 |
|
|
|
| 7.17 |
|
| 1.43 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,014.02 |
|
|
|
| 10.92 |
|
| 2.18 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,014.02 |
|
|
|
| 10.92 |
|
| 2.18 | % |
|
Conservative Growth Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,017.40 |
|
|
|
| 7.52 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.67 |
|
|
|
| 11.27 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.67 |
|
|
|
| 11.27 |
|
| 2.25 | % |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
HSBC INVESTOR LIFELINE FUNDS | 38 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Government and Government Agency Obligations—44.7% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Federal Home Loan Mortgage Corp. – 5.4% |
|
|
|
|
|
|
|
Pool #G12317, 5.50%, 8/1/21 |
|
| 1,010,527 |
|
| 1,029,768 |
|
Pool #C00368, 8.50%, 10/1/24 |
|
| 25,145 |
|
| 27,806 |
|
Pool #D62926, 6.50%, 8/1/25 |
|
| 19,382 |
|
| 20,300 |
|
Pool #C80387, 6.50%, 4/1/26 |
|
| 25,425 |
|
| 26,630 |
|
Pool #C00922, 8.00%, 2/1/30 |
|
| 158,266 |
|
| 171,412 |
|
Pool #C54447, 7.00%, 7/1/31 |
|
| 32,528 |
|
| 34,553 |
|
Pool #G01317, 7.00%, 10/1/31 |
|
| 126,963 |
|
| 134,868 |
|
Pool #C60712, 6.50%, 11/1/31 |
|
| 523,373 |
|
| 546,203 |
|
Pool #847557, 6.27%, 7/1/34 (a) |
|
| 725,693 |
|
| 731,227 |
|
Pool #1B2655, 6.19%, 12/1/34 (a) |
|
| 573,830 |
|
| 578,809 |
|
Pool #1J1313, 6.40%, 6/1/36 (a) |
|
| 1,325,088 |
|
| 1,359,223 |
|
Pool #G02981, 6.00%, 6/1/37 |
|
| 1,094,552 |
|
| 1,120,748 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,781,547 |
|
|
|
|
|
|
| ||
Federal National Mortgage Association – 21.4% |
|
|
|
|
|
|
|
Pool #398958, 6.50%, 10/1/12 |
|
| 45,141 |
|
| 46,928 |
|
Pool #781922, 5.00%, 2/1/21 |
|
| 2,113,781 |
|
| 2,127,364 |
|
Pool #329655, 7.00%, 11/1/25 |
|
| 37,964 |
|
| 40,430 |
|
Pool #329530, 7.00%, 12/1/25 |
|
| 80,18 |
|
| 85,395 |
|
Pool #535332, 8.50%, 4/1/30 |
|
| 36,972 |
|
| 40,683 |
|
Pool #548965, 8.50%, 7/1/30 |
|
| 43,392 |
|
| 47,759 |
|
Pool #535440, 8.50%, 8/1/30 |
|
| 40,948 |
|
| 45,068 |
|
Pool #253438, 8.50%, 9/1/30 |
|
| 34,776 |
|
| 38,275 |
|
Pool #568486, 7.00%, 1/1/31 |
|
| 38,557 |
|
| 41,072 |
|
Pool #573752, 8.50%, 2/1/31 |
|
| 29,606 |
|
| 32,586 |
|
Pool #575328, 6.50%, 4/1/31 |
|
| 48,871 |
|
| 50,950 |
|
Pool #356905, 7.14%, 10/1/36 (a) |
|
| 158,127 |
|
| 160,622 |
|
Pool #922090, 5.89%, 3/1/37 (a) |
|
| 1,687,062 |
|
| 1,726,031 |
|
Pool #256723, 6.50%, 5/1/37 |
|
| 1,082,672 |
|
| 1,121,397 |
|
TBA May |
|
|
|
|
|
|
|
5.50%, 5/15/37 |
|
| 11,360,000 |
|
| 11,420,344 |
|
6.00%, 5/15/37 |
|
| 4,800,000 |
|
| 4,906,502 |
|
5.00%, 5/13/38 |
|
| 1,000,000 |
|
| 982,188 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 22,913,594 |
|
|
|
|
|
|
| ||
Government National Mortgage Association – 1.3% |
|
|
|
|
|
|
|
Pool #346406, 7.50%, 2/15/23 |
|
| 43,619 |
|
| 46,941 |
|
Pool #412530, 7.50%, 12/15/25 |
|
| 70,471 |
|
| 75,919 |
|
Pool #781300, 7.00%, 6/15/31 |
|
| 121,223 |
|
| 129,833 |
|
May, 6.00%, 5/15/37, TBA |
|
| 1,080,000 |
|
| 1,109,363 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,362,056 |
|
|
|
|
|
|
| ||
U.S. Treasury Bonds – 3.2% |
|
|
|
|
|
|
|
6.25%, 8/15/23 |
|
| 1,290,000 |
|
| 1,552,536 |
|
5.00%, 5/15/37 |
|
| 1,775,000 |
|
| 1,923,656 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,476,192 |
|
|
|
|
|
|
| ||
U.S. Treasury Notes – 13.4% |
|
|
|
|
|
|
|
3.13%, 11/30/09 |
|
| 1,100,000 |
|
| 1,116,157 |
|
2.00%, 2/28/10 |
|
| 2,573,000 |
|
| 2,561,543 |
|
4.75%, 1/31/12 |
|
| 1,475,000 |
|
| 1,579,057 |
|
3.63%, 12/31/12 |
|
| 2,000,000 |
|
| 2,053,750 |
|
2.50%, 3/31/13 |
|
| 1,014,000 |
|
| 989,442 |
|
4.75%, 8/15/17 |
|
| 1,445,000 |
|
| 1,556,762 |
|
4.25%, 11/15/17 |
|
| 765,000 |
|
| 794,644 |
|
3.50%, 2/15/18 |
|
| 3,785,000 |
|
| 3,704,569 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 14,355,924 |
|
|
|
|
|
|
|
|
U.S. Government and Government Agency Obligations, cont’d |
|
|
|
|
|
|
|
|
|
| Principal |
| Value ($) |
| ||
|
|
|
| ||||
TOTAL U.S. GOVERNMENT AND |
|
|
|
|
| 47,889,313 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Corporate Obligations—32.9% |
|
|
|
|
|
|
|
Agricultural Chemicals – 0.6% |
|
|
|
|
|
|
|
Cargill, Inc., 5.60%, 9/15/12 (b) |
|
| 600,000 |
|
| 604,795 |
|
|
|
|
|
|
| ||
Banking – 2.0% |
|
|
|
|
|
|
|
American Express Centurion Bank, |
|
| 700,000 |
|
| 702,045 |
|
Washington Mutual Bank NV |
|
|
|
|
|
|
|
2.95%, 6/16/10 (a) |
|
| 750,000 |
|
| 674,774 |
|
3.31%, 2/4/11 (a) |
|
| 400,000 |
|
| 353,453 |
|
Washington Mutual, Inc., 3.20%, 9/17/12 (a) |
|
| 500,000 |
|
| 424,767 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,155,039 |
|
|
|
|
|
|
| ||
Building & Construction Products – 1.0% |
|
|
|
|
|
|
|
Martin Marietta Materials, Inc., |
|
| 600,000 |
|
| 582,220 |
|
Masco Corp., 3.20%, 3/12/10 (a) |
|
| 550,000 |
|
| 510,211 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,092,431 |
|
|
|
|
|
|
| ||
Consumer Products – 0.9% |
|
|
|
|
|
|
|
Clorox Co. (The), 5.45%, 10/15/12 |
|
| 900,000 |
|
| 909,151 |
|
|
|
|
|
|
| ||
Electric – 5.3% |
|
|
|
|
|
|
|
Commonwealth Edison Co., 6.45%, |
|
| 700,000 |
|
| 689,812 |
|
Duke Energy Carolinas LLC, |
|
| 450,000 |
|
| 447,181 |
|
MidAmerican Energy Co., 5.95%, 7/15/17 |
|
| 2,900,000 |
|
| 3,022,452 |
|
Progress Energy, Inc., 3.47%, 11/14/08, |
|
| 1,000,000 |
|
| 996,246 |
|
Puget Sound Energy, Inc., 6.97%, 6/1/67, |
|
| 600,000 |
|
| 538,842 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,694,533 |
|
|
|
|
|
|
| ||
Finance – 5.7% |
|
|
|
|
|
|
|
American Honda Finance Corp., |
|
| 250,000 |
|
| 245,634 |
|
Caterpillar Financial Services Corp., |
|
| 350,000 |
|
| 355,011 |
|
Citigroup, Inc., 6.88%, 3/5/38 |
|
| 450,000 |
|
| 465,393 |
|
Ford Motor Credit Co., LLC |
|
|
|
|
|
|
|
9.75%, 9/15/10 |
|
| 1,550,000 |
|
| 1,505,828 |
|
7.25%, 10/25/11 |
|
| 150,000 |
|
| 135,085 |
|
MetLife Global Funding I, |
|
| 350,000 |
|
| 349,978 |
|
Morgan Stanley, Series F, |
|
| 365,000 |
|
| 364,444 |
|
Pacific Life Global Funding, |
|
| 250,000 |
|
| 250,239 |
|
Preferred Term Securities Ltd., |
|
| 778,066 |
|
| 815,647 |
|
Wells Fargo Financial, 5.50%, 8/1/12 |
|
| 850,000 |
|
| 876,325 |
|
XTRA Finance Corp., 5.15%, 4/1/17 |
|
| 750,000 |
|
| 760,705 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,124,289 |
|
|
|
|
|
|
|
|
|
|
39 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Hospitals – 1.1% |
|
|
|
|
|
|
|
Covidien International Finance SA, |
|
| 550,000 |
|
| 554,508 |
|
HCA, Inc., 5.75%, 3/15/14 |
|
| 750,000 |
|
| 648,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,203,258 |
|
|
|
|
|
|
| ||
Media – 0.8% |
|
|
|
|
|
|
|
News America Holdings, 7.90%, 12/1/95 |
|
| 500,000 |
|
| 540,975 |
|
Vivendi, 5.75%, 4/4/13 (b) |
|
| 350,000 |
|
| 342,094 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 883,069 |
|
|
|
|
|
|
| ||
Medical – 1.0% |
|
|
|
|
|
|
|
AstraZeneca plc, 5.90%, 9/15/17 |
|
| 1,000,000 |
|
| 1,058,813 |
|
|
|
|
|
|
| ||
Office Equipment & Services – 0.5% |
|
|
|
|
|
|
|
Xerox Corp., 3.51%, 12/18/09 (a) |
|
| 550,000 |
|
| 540,478 |
|
|
|
|
|
|
| ||
Retail – 3.2% |
|
|
|
|
|
|
|
Home Depot, Inc., 5.88%, 12/16/36 |
|
| 1,300,000 |
|
| 1,086,812 |
|
Kohl’s Corp., 6.25%, 12/15/17 |
|
| 550,000 |
|
| 534,078 |
|
Kroger Co. (The), 5.00%, 4/15/13 |
|
| 250,000 |
|
| 251,174 |
|
Wal-Mart Stores, Inc., 6.50%, 8/15/37 |
|
| 1,500,000 |
|
| 1,591,907 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,463,971 |
|
|
|
|
|
|
| ||
Telecommunications – 5.2% |
|
|
|
|
|
|
|
AOL Time Warner, Inc. |
|
|
|
|
|
|
|
6.88%, 5/1/12 |
|
| 600,000 |
|
| 625,051 |
|
7.70%, 5/1/32 |
|
| 550,000 |
|
| 595,717 |
|
AT&T, Inc., 5.50%, 2/1/18 |
|
| 750,000 |
|
| 749,874 |
|
BellSouth Telecommunications, |
|
| 700,000 |
|
| 696,868 |
|
Sprint Nextel Corp., 6.00%, 12/1/16 |
|
| 535,000 |
|
| 436,025 |
|
Time Warner Entertainment Co., |
|
| 800,000 |
|
| 902,014 |
|
Verizon Communications, Inc., |
|
| 1,500,000 |
|
| 1,572,743 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,578,292 |
|
|
|
|
|
|
| ||
Transportation – 5.6% |
|
|
|
|
|
|
|
American Airlines, Inc., Series 2001-2, |
|
| 525,512 |
|
| 517,629 |
|
American Airlines, Inc., Series 2001-2, |
|
| 1,250,000 |
|
| 1,250,000 |
|
Burlington North Santa Fe |
|
|
|
|
|
|
|
5.65%, 5/1/17 |
|
| 600,000 |
|
| 603,775 |
|
7.57%, 1/2/21 |
|
| 280,926 |
|
| 305,653 |
|
Continental Airlines, Inc., 5.98%, 4/19/22 |
|
| 750,000 |
|
| 653,437 |
|
Norfolk Southern Corp., 5.75%, 4/1/18 (b) |
|
| 250,000 |
|
| 253,538 |
|
Union Pacific Corp. |
|
|
|
|
|
|
|
5.75%, 11/15/17 |
|
| 1,200,000 |
|
| 1,214,893 |
|
6.85%, 1/2/19 |
|
| 1,104,592 |
|
| 1,189,391 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,988,316 |
|
|
|
|
|
|
| ||
TOTAL CORPORATE OBLIGATIONS |
|
|
|
|
| 35,296,435 |
|
|
|
|
|
|
|
|
Asset Backed Securities—9.3% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Americredit Automobile Receivables |
|
| 123,064 |
|
| 123,101 |
|
Asset Backed Funding Certificates, |
|
| 738,743 |
|
| 615,694 |
|
Cairn Mezzanine plc, Series 2007-3A, |
|
| 905,000 |
|
| 45,250 |
|
Capital Auto Receivables Asset Trust |
|
| 304,182 |
|
| 304,890 |
|
Series 2007-SN1, Class A3B, |
|
| 860,000 |
|
| 850,689 |
|
Countrywide Asset-Backed Certificates, |
|
| 1,060,000 |
|
| 812,166 |
|
Dominos Pizza Master Issuer LLC, |
|
| 1,200,000 |
|
| 1,026,305 |
|
Duane Street CLO, Series 2007-4A, |
|
| 850,000 |
|
| 667,250 |
|
GE Business Loan Trust, Series 2006-2A, |
|
| 1,422,685 |
|
| 1,349,761 |
|
GE Equipment Small Ticket LLC, |
|
| 725,482 |
|
| 724,575 |
|
GMAC Mortgage Corp., Loan Trust, |
|
| 900,000 |
|
| 419,137 |
|
MBNA Credit Card Master Note Trust, |
|
| 930,000 |
|
| 931,759 |
|
Nissan Auto Receivables Owner Trust, |
|
| 1,110,750 |
|
| 1,117,946 |
|
Preferred Term Securities XXII Ltd., |
|
| 1,088,695 |
|
| 937,693 |
|
|
|
|
|
|
| ||
TOTAL ASSET BACKED SECURITIES |
|
|
|
|
| 9,926,216 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations—5.9% |
|
|
|
|
|
|
|
Banc of America Mortgage Securities, |
|
| 1,100,000 |
|
| 1,095,077 |
|
Deutsche Mortgage Securities, Inc., |
|
| 987,156 |
|
| 976,037 |
|
Fannie Mae IO |
|
|
|
|
|
|
|
Series 270, Class 2, 8.50%, 9/1/23 (c) |
|
| 41,654 |
|
| 11,454 |
|
Series 296, Class 2, 8.00%, 4/1/24 (c) |
|
| 49,508 |
|
| 12,603 |
|
Series 2000-16, Class PS, |
|
| 28,146 |
|
| 1,018 |
|
Series 2000-32, Class SV, |
|
| 3,616 |
|
| 18 |
|
Series 306, Class IO, 8.00%, 5/1/30 (c) |
|
| 56,658 |
|
| 13,082 |
|
Series 2001-4, Class SA, |
|
| 198,831 |
|
| 16,829 |
|
FHA Weyerhauser, 7.43%, 1/1/24 (d)(e) |
|
| 26,696 |
|
| 26,696 |
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 40 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Collateralized Mortgage Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Freddie Mac |
|
|
|
|
|
|
|
Series 2988, Class AF, |
|
| 1,051,271 |
|
| 1,012,900 |
|
Series 3212, Class BK, 5.40%, 9/15/36 |
|
| 900,000 |
|
| 894,715 |
|
Freddie Mac IO |
|
|
|
|
|
|
|
Series 1534, Class K, 4.65%, 6/15/23 (a) |
|
| 132,203 |
|
| 14,066 |
|
Series 2141, Class SD, 5.43%, 4/15/29 (a) |
|
| 108,040 |
|
| 15,084 |
|
Series 2247, Class SC, 4.78%, 8/15/30 (a) |
|
| 54,312 |
|
| 4,992 |
|
Government National Mortgage |
|
|
|
|
|
|
|
Series 1999-30, Class SA, |
|
| 68,157 |
|
| 4,174 |
|
Series 1999-30, Class S, |
|
| 50,811 |
|
| 4,645 |
|
Morgan Stanley Mortgage Loan Trust, |
|
| 1,192,445 |
|
| 992,204 |
|
Residential Asset Securitization Trust, |
|
| 1,492,962 |
|
| 1,285,496 |
|
|
|
|
|
|
| ||
TOTAL COLLATERALIZED MORTGAGE |
|
|
|
|
| 6,381,090 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Commercial Mortgage Backed Securities—12.3% |
|
|
|
|
|
|
|
Banc of America Commercial |
|
| 1,540,000 |
|
| 1,531,906 |
|
Bear Stearns Commercial Mortgage |
|
| 1,100,000 |
|
| 1,087,476 |
|
Citigroup Commercial Mortgage Trust, |
|
| 1,100,000 |
|
| 1,096,487 |
|
Citigroup/Deutsche Bank Commercial |
|
| 1,300,000 |
|
| 1,282,318 |
|
Commercial Mortgage Pass-Through Certificate |
|
|
|
|
|
|
|
Series 2006-FL12, Class A2, |
|
| 1,508,392 |
|
| 1,437,272 |
|
Series 2005-LP5, Class AJ, |
|
| 1,550,000 |
|
| 1,414,690 |
|
CWCapital Cobalt, |
|
| 1,232,000 |
|
| 1,219,597 |
|
DLJ Mortgage Acceptance Corp., IO, |
|
| 19,068 |
|
| 1 |
|
GS Mortgage Securities Corp., IO, |
|
| 36,108 |
|
| 493 |
|
Morgan Stanley Capital I |
|
|
|
|
|
|
|
Series 2006-HQ10, Class A4, |
|
| 1,000,000 |
|
| 973,657 |
|
Series 2007-IQ14, Class A2, |
|
| 1,380,000 |
|
| 1,374,627 |
|
Series 2007-IQ14, Class AM, |
|
| 990,000 |
|
| 913,236 |
|
|
Commercial Mortgage Backed Securities, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Washington Mutual Commercial |
|
| 973,418 |
|
| 873,545 |
|
|
|
|
|
|
| ||
TOTAL COMMERCIAL MORTGAGE |
|
|
|
|
| 13,205,305 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Foreign Bonds—3.0% |
|
|
|
|
|
|
|
Iceland – 1.0% |
|
|
|
|
|
|
|
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) |
|
| 1,250,000 |
|
| 1,046,872 |
|
|
|
|
|
|
| ||
South Korea – 1.3% |
|
|
|
|
|
|
|
Citibank Korea, Inc., 4.68%, 6/18/13, |
|
| 1,400,000 |
|
| 1,402,292 |
|
|
|
|
|
|
| ||
United Kingdom – 0.7% |
|
|
|
|
|
|
|
Barclays Bank plc, 5.93%, 12/31/49 (b) |
|
| 850,000 |
|
| 717,691 |
|
|
|
|
|
|
| ||
TOTAL FOREIGN BONDS |
|
|
|
|
| 3,166,855 |
|
|
|
|
|
|
|
|
|
|
41 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Investment Company—11.2% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Northern Institutional Diversified |
|
| 11,993,552 |
|
| 11,993,552 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 11,993,552 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 127,858,766 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $107,150,902. |
|
|
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
|
|
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
|
|
(c) | Interest-Only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an Interest-Only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate adjusts periodically based on the pay off of the underlying mortgage. The interest rate presented represents the rates in effect on April 30, 2008. The principal amount shown is the notional amount of the underlying mortgages. |
|
|
(d) | Security was fair valued as of April 30, 2008. Represents 0.02% of net assets. |
|
|
(e) | Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 0.02% of total net assets. |
|
|
(f) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
|
|
(g) | Security held as collateral for to be announced securities. |
|
|
FHA | — Federal Housing Administration |
IO | — Interest-Only security. Represents 0.09% of net assets. |
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.2% of net assets. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 42 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stock—0.0% | |||||||
|
|
|
|
|
|
|
|
|
| Shares or |
| Value($) |
| ||
|
|
|
| ||||
Consumer Discretionary – 0.0% |
|
|
|
|
|
|
|
Tembec, Inc. (a) |
|
| 937 |
|
| 3,629 |
|
|
|
|
|
|
| ||
Total Common Stock (Cost $18,548) |
|
|
|
|
| 3,629 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Corporate Obligations—95.5% |
|
|
|
|
|
|
|
Advertising – 1.9% |
|
|
|
|
|
|
|
Iron Mountain, Inc., 8.63%, 4/1/13, |
|
| 100,000 |
|
| 101,750 |
|
Lamar Media Corp., 6.63%, 8/15/15, |
|
| 50,000 |
|
| 47,125 |
|
R.H. Donnelley Corp., 6.88%, 1/15/13, |
|
| 100,000 |
|
| 64,000 |
|
R.H. Donnelley Corp., 6.88%, 1/15/13, |
|
| 90,000 |
|
| 57,600 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 270,475 |
|
|
|
|
|
|
| ||
Aerospace & Defense – 2.1% |
|
|
|
|
|
|
|
DAE Aviation Holdings, Inc., 11.25%, |
|
| 50,000 |
|
| 50,813 |
|
DRS Technologies, Inc., 7.63%, 2/1/18, |
|
| 100,000 |
|
| 102,000 |
|
L-3 Communications Holdings, Inc., 5.88%, |
|
| 100,000 |
|
| 97,000 |
|
TransDigm Group, Inc., 7.75%, 7/15/14, |
|
| 50,000 |
|
| 51,125 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 300,938 |
|
|
|
|
|
|
| ||
Apparel Manufacturers – 1.6% |
|
|
|
|
|
|
|
Hanesbrands, Inc., 8.20%, 12/15/14, |
|
| 50,000 |
|
| 47,125 |
|
Levi Strauss & Co., 8.88%, 4/1/16, |
|
| 50,000 |
|
| 50,875 |
|
Quiksilver, Inc., 6.88%, 4/15/15, |
|
| 150,000 |
|
| 124,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 222,500 |
|
|
|
|
|
|
| ||
Auto Manufacturers – 2.4% |
|
|
|
|
|
|
|
Cooper Tire & Rubber Co., |
|
| 50,000 |
|
| 47,625 |
|
Cooper-Standard Automotive, Inc., 8.38%, |
|
| 50,000 |
|
| 41,250 |
|
General Motors Corp., 7.13%, 7/15/13 |
|
| 175,000 |
|
| 142,625 |
|
General Motors Corp., 7.70%, 4/15/16 |
|
| 50,000 |
|
| 39,000 |
|
The Goodyear Tire & Rubber Co., 8.63%, |
|
| 17,000 |
|
| 18,275 |
|
TRW Automotive, Inc., 7.25%, 3/15/17 (b) |
|
| 50,000 |
|
| 48,687 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 337,462 |
|
|
|
|
|
|
| ||
Automotive & Transport – 0.7% |
|
|
|
|
|
|
|
AutoNation, Inc., 7.00%, 4/15/14, |
|
| 50,000 |
|
| 46,875 |
|
Penske Automotive Group, Inc., 7.75%, |
|
| 50,000 |
|
| 45,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 92,375 |
|
|
|
|
|
|
| ||
Building & Construction Products – 1.5% |
|
|
|
|
|
|
|
Interline Brands, Inc., 8.13%, 6/15/14, |
|
| 50,000 |
|
| 48,625 |
|
Ply Gem Industries, Inc., 9.00%, 2/15/12, |
|
| 150,000 |
|
| 114,750 |
|
|
|
|
|
|
|
|
|
Corporate Obligations, continued | |||||||
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Building & Construction Products, continued |
|
|
|
|
|
|
|
U.S. Concrete, Inc., 8.38%, 4/1/14, |
|
| 50,000 |
|
| 40,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 203,875 |
|
|
|
|
|
|
| ||
Cable Television – 3.4% |
|
|
|
|
|
|
|
Barrington Broadcasting Group LLC, |
|
| 50,000 |
|
| 44,000 |
|
Bonten Media Acquisition, 9.00%, |
|
| 75,000 |
|
| 60,937 |
|
Cablevision Systems Corp., 8.00%, 4/15/12 |
|
| 100,000 |
|
| 99,500 |
|
Charter Communications Operating LLC, |
|
| 50,000 |
|
| 52,875 |
|
General Cable Technologies Corp., |
|
| 50,000 |
|
| 48,750 |
|
Mediacom LLC, 7.88%, 2/15/11 |
|
| 100,000 |
|
| 94,500 |
|
Quebecor Media, Inc., 7.75%, 3/15/16, |
|
| 25,000 |
|
| 24,063 |
|
Videotron Ltd., 9.13%, 4/15/18, |
|
| 50,000 |
|
| 53,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 477,875 |
|
|
|
|
|
|
| ||
Casinos & Gambling – 8.5% |
|
|
|
|
|
|
|
Choctaw Resort Development |
|
| 46,000 |
|
| 40,480 |
|
Fontainebleau Las Vegas, 10.25%, |
|
| 100,000 |
|
| 71,750 |
|
Great Canadian Gaming Co., 7.25%, |
|
| 50,000 |
|
| 48,000 |
|
Greektown Holdings, Inc., 10.75%, |
|
| 125,000 |
|
| 115,000 |
|
Herbst Gaming, Inc., 7.00%, 11/15/14, |
|
| 50,000 |
|
| 11,000 |
|
Indianapolis Downs LLC, 11.00%, 11/1/12, |
|
| 25,000 |
|
| 22,500 |
|
Inn of the Mountain Gods, 12.00%, |
|
| 50,000 |
|
| 43,250 |
|
Isle of Capri Casinos, Inc., 7.00%, 3/1/14, |
|
| 150,000 |
|
| 115,500 |
|
Mashantucket Pequot Tribal Nation, |
|
| 50,000 |
|
| 45,438 |
|
MGM MIRAGE, Inc., 6.75%, 4/1/13 |
|
| 100,000 |
|
| 92,000 |
|
Mohegan Tribal Gaming, 7.13%, 8/15/14, |
|
| 50,000 |
|
| 42,875 |
|
MTR Gaming Group, Inc., 9.00%, 6/1/12, |
|
| 100,000 |
|
| 79,500 |
|
Pinnacle Entertainment, 7.50%, 6/15/15, |
|
| 50,000 |
|
| 41,375 |
|
Pokagon Gaming Authority, 10.38%, |
|
| 69,000 |
|
| 73,657 |
|
San Pasqual Casino, 8.00%, 9/15/13, |
|
| 25,000 |
|
| 23,313 |
|
Scientific Games Corp., 6.25%, 12/15/12, |
|
| 50,000 |
|
| 46,250 |
|
|
|
|
43 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Corporate Obligations, continued | |||||||
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Casinos & Gambling, continued |
|
|
|
|
|
|
|
Seminole Hard Rock Entertainment, |
|
| 50,000 |
|
| 41,875 |
|
Seneca Gaming Corp., 7.25%, 5/1/12, |
|
| 50,000 |
|
| 48,312 |
|
Shingle Springs, 9.38%, 6/15/15, |
|
| 50,000 |
|
| 44,250 |
|
Turning Stone Resort Casino, 9.13%, |
|
| 75,000 |
|
| 73,875 |
|
Waterford Gaming LLC, 8.63%, 9/15/14 (b) |
|
| 23,000 |
|
| 22,195 |
|
Wynn Las Vegas LLC, 6.63%, 12/1/14, |
|
| 50,000 |
|
| 48,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,191,145 |
|
|
|
|
|
|
| ||
Chemicals – 3.2% |
|
|
|
|
|
|
|
Georgia Gulf Corp., 9.50%, 10/15/14, |
|
| 100,000 |
|
| 84,500 |
|
Huntsman International LLC, 7.88%, |
|
| 35,000 |
|
| 36,925 |
|
Innophos, Inc., 8.88%, 8/15/14, |
|
| 50,000 |
|
| 49,750 |
|
JohnsonDiversey, Inc., 9.63%, 5/15/12, |
|
| 100,000 |
|
| 101,000 |
|
Momentive Performance Materials, Inc., |
|
| 50,000 |
|
| 48,500 |
|
Mosaic Co., 7.88%, 12/1/16, Callable |
|
| 25,000 |
|
| 27,375 |
|
Nova Chemicals Corp., 6.50%, 1/15/12 |
|
| 50,000 |
|
| 47,000 |
|
Terra Capital, Inc., 7.00%, 2/1/17, |
|
| 50,000 |
|
| 49,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 444,800 |
|
|
|
|
|
|
| ||
Computer Services – 0.6% |
|
|
|
|
|
|
|
Activant Solutions, Inc., 9.50%, 5/1/16, |
|
| 50,000 |
|
| 42,000 |
|
Unisys Corp., 12.50%, 1/15/16, |
|
| 35,000 |
|
| 36,400 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 78,400 |
|
|
|
|
|
|
| ||
Consumer Products – 1.7% |
|
|
|
|
|
|
|
Constellation Brands, Inc., 8.38%, 12/15/14 |
|
| 50,000 |
|
| 53,000 |
|
Sealy Mattress Co., 8.25%, 6/15/14, |
|
| 50,000 |
|
| 44,125 |
|
Smithfield Foods, Inc., 7.75%, 7/1/17 |
|
| 50,000 |
|
| 49,625 |
|
Spectrum Brands, Inc., 7.38%, 2/1/15, |
|
| 75,000 |
|
| 49,875 |
|
Yankee Acquisition Corp., 9.75%, |
|
| 50,000 |
|
| 40,125 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 236,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Obligations, continued | |||||||
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Containers - Paper and Plastic – 2.5% |
|
|
|
|
|
|
|
Owens-Brockway Glass Containers, 6.75%, |
|
| 50,000 |
|
| 50,750 |
|
Solo Cup Co., 8.50%, 2/15/14, Callable |
|
| 200,000 |
|
| 174,000 |
|
Stone Container Finance Co. of Canada, |
|
| 150,000 |
|
| 126,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 350,750 |
|
|
|
|
|
|
| ||
Cosmetics – 0.4% |
|
|
|
|
|
|
|
Chattem, Inc., 7.00%, 3/1/14, |
|
| 50,000 |
|
| 49,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 49,750 |
|
|
|
|
|
|
| ||
Distribution & Wholesale – 1.9% |
|
|
|
|
|
|
|
Baker & Taylor, Inc., 11.50%, 7/1/13, |
|
| 100,000 |
|
| 90,000 |
|
Beverages & More, Inc., 9.25%, 3/1/12, |
|
| 50,000 |
|
| 48,500 |
|
Central Garden & Pet Co., 9.13%, 2/1/13, |
|
| 50,000 |
|
| 42,250 |
|
Jarden Corp., 7.50%, 5/1/17, Callable |
|
| 25,000 |
|
| 23,000 |
|
Pegasus Solutions, Inc., 10.50%, 4/15/15, |
|
| 50,000 |
|
| 40,000 |
|
Pilgrim’s Pride Corp., 8.38%, 5/1/17, |
|
| 25,000 |
|
| 22,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 266,000 |
|
|
|
|
|
|
| ||
Diversified Operations – 1.7% |
|
|
|
|
|
|
|
Bombardier, Inc., 8.00%, 11/15/14, |
|
| 25,000 |
|
| 26,625 |
|
Koppers Holdings, Inc., 9.88%, 11/15/14, |
|
| 25,000 |
|
| 21,875 |
|
Snoqualmie Entertainment Authority, |
|
| 25,000 |
|
| 19,625 |
|
Susser Holdings LLC, 10.63%, 12/15/13, |
|
| 72,000 |
|
| 73,800 |
|
Susser Holdings LLC, 10.63%, 12/15/13, |
|
| 50,000 |
|
| 51,250 |
|
Trinity Industries, Inc., 6.50%, 3/15/14, |
|
| 50,000 |
|
| 49,625 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 242,800 |
|
|
|
|
|
|
| ||
Education – 0.3% |
|
|
|
|
|
|
|
Education Management LLC, 10.25%, |
|
| 25,000 |
|
| 21,000 |
|
Education Management LLC, 8.75%, |
|
| 25,000 |
|
| 22,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 43,250 |
|
|
|
|
|
|
| ||
Electric – 3.9% |
|
|
|
|
|
|
|
AES Corp., 7.75%, 3/1/14 |
|
| 60,000 |
|
| 61,500 |
|
AES Corp., 7.75%, 10/15/15 |
|
| 50,000 |
|
| 51,625 |
|
Baldor Electic Co., 8.63%, 2/15/17, |
|
| 50,000 |
|
| 51,000 |
|
CMS Energy Corp., 6.88%, 12/15/15 |
|
| 100,000 |
|
| 100,660 |
|
Edison Mission Energy, 7.00%, 5/15/17 |
|
| 25,000 |
|
| 25,250 |
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 44 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Corporate Obligations, continued | |||||||
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Electric, continued |
|
|
|
|
|
|
|
Edison Mission Energy, 7.20%, 5/15/19 |
|
| 50,000 |
|
| 50,375 |
|
Energy Future Holdings, 10.88%, 11/1/17, |
|
| 200,000 |
|
| 213,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 553,410 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 0.3% |
|
|
|
|
|
|
|
Freescale Semiconductor, Inc., 10.13%, |
|
| 50,000 |
|
| 39,375 |
|
|
|
|
|
|
| ||
Energy – 3.7% |
|
|
|
|
|
|
|
Aventine Renewable Energy, Inc., |
|
| 50,000 |
|
| 31,250 |
|
Copano Energy LLC, 8.13%, 3/1/16, |
|
| 80,000 |
|
| 83,200 |
|
Massey Energy Co., 6.88%, 12/15/13, |
|
| 100,000 |
|
| 100,000 |
|
Mirant North America LLC, 7.38%, |
|
| 50,000 |
|
| 51,875 |
|
NRG Energy, Inc., 7.38%, 2/1/16, |
|
| 50,000 |
|
| 51,500 |
|
Reliant Energy, Inc., 7.63%, 6/15/14 |
|
| 50,000 |
|
| 52,000 |
|
Verasun Energy Corp., 9.88%, 12/15/12, |
|
| 50,000 |
|
| 45,875 |
|
Williams Cos., Inc., 6.38%, 10/1/10 (b) |
|
| 100,000 |
|
| 103,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 519,200 |
|
|
|
|
|
|
| ||
Finance – 5.7% |
|
|
|
|
|
|
|
Basell AF SCA, 8.38%, 8/15/15, Callable |
|
| 75,000 |
|
| 54,375 |
|
CCM Merger, Inc., 8.00%, 8/1/13, Callable |
|
| 100,000 |
|
| 86,000 |
|
Ford Motor Credit Co., 7.38%, 10/28/09 |
|
| 250,000 |
|
| 240,657 |
|
Ford Motor Credit Co., 7.38%, 2/1/11 |
|
| 50,000 |
|
| 45,973 |
|
General Motors Acceptance Corp., 6.88%, |
|
| 300,000 |
|
| 238,002 |
|
MSX International, 12.50%, 4/1/12, |
|
| 25,000 |
|
| 20,000 |
|
Nalco Finance Holdings, Inc., 11.52%, |
|
| 75,000 |
|
| 71,625 |
|
Nuveen Investments, Inc., 10.50%, |
|
| 50,000 |
|
| 48,125 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 804,757 |
|
|
|
|
|
|
| ||
Funeral Services – 0.4% |
|
|
|
|
|
|
|
Carriage Services, Inc., 7.88%, 1/15/15, |
|
| 50,000 |
|
| 49,750 |
|
|
|
|
|
|
| ||
Hotels & Lodging – 0.3% |
|
|
|
|
|
|
|
Gaylord Entertainment Co., 8.00%, |
|
| 50,000 |
|
| 47,375 |
|
|
|
|
|
|
| ||
Internet Related – 0.3% |
|
|
|
|
|
|
|
Atlantic Broadband Finance LLC, 9.38%, |
|
| 50,000 |
|
| 46,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
| ||||||
| |||||||
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Leisure – 1.0% |
|
|
|
|
|
|
|
AMC Entertainment, Inc., 11.00%, 2/1/16, |
|
| 100,000 |
|
| 99,500 |
|
True Temper Sports, Inc., 8.38%, 9/15/11, |
|
| 50,000 |
|
| 34,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 133,500 |
|
|
|
|
|
|
| ||
Machinery – 0.9% |
|
|
|
|
|
|
|
Case New Holland, Inc., 7.13%, 3/1/14, |
|
| 50,000 |
|
| 50,250 |
|
Sensata Technologies, 8.00%, 5/1/14, |
|
| 50,000 |
|
| 46,625 |
|
Terex Corp., 8.00%, 11/15/17, |
|
| 25,000 |
|
| 25,563 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 122,438 |
|
|
|
|
|
|
| ||
Manufacturing – 1.0% |
|
|
|
|
|
|
|
AGY Holding Corp., 11.00%, 11/15/14, |
|
| 50,000 |
|
| 45,250 |
|
American Railcar Industries, 7.50%, 3/1/14, |
|
| 25,000 |
|
| 22,500 |
|
Coleman Cable, Inc., 9.88%, 10/1/12, |
|
| 50,000 |
|
| 45,750 |
|
Libbey Glass, Inc., 11.91%, 6/1/11, |
|
| 25,000 |
|
| 25,063 |
|
Maax Corp., 9.75%, 6/15/12, |
|
| 50,000 |
|
| 7,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 146,063 |
|
|
|
|
|
|
| ||
Medical – 2.4% |
|
|
|
|
|
|
|
Advanced Medical Optics, 7.50%, |
|
| 50,000 |
|
| 45,250 |
|
Community Health Systems, Inc., 8.88%, |
|
| 50,000 |
|
| 52,000 |
|
HCA, Inc., 9.25%, 11/15/16, Callable |
|
| 25,000 |
|
| 26,875 |
|
MultiPlan, Inc., 10.38%, 4/15/16, |
|
| 100,000 |
|
| 97,000 |
|
Omnicare, Inc., 6.75%, 12/15/13, |
|
| 100,000 |
|
| 93,000 |
|
ReAble Therapeutics Finance LLC, 10.88%, |
|
| 25,000 |
|
| 25,125 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 339,250 |
|
|
|
|
|
|
| ||
Metal Processors & Fabrication – 0.5% |
|
|
|
|
|
|
|
TriMas Corp., 9.88%, 6/15/12, Callable |
|
| 77,000 |
|
| 67,183 |
|
|
|
|
|
|
| ||
Metals & Mining – 3.1% |
|
|
|
|
|
|
|
AK Steel Corp., 7.75%, 6/15/12, Callable |
|
| 100,000 |
|
| 102,125 |
|
Aleris International, Inc., 10.00%, 12/15/16, |
|
| 25,000 |
|
| 15,500 |
|
Freeport-McMoran Copper & Gold, Inc., |
|
| 50,000 |
|
| 54,312 |
|
Gibraltar Industries, Inc., 8.00%, 12/1/15, |
|
| 150,000 |
|
| 122,250 |
|
International Coal Group, Inc., 10.25%, |
|
| 50,000 |
|
| 50,500 |
|
|
|
|
45 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Metals & Mining, continued |
|
|
|
|
|
|
|
Noranda Aluminium Acquisition, 8.74%, |
|
| 50,000 |
|
| 42,250 |
|
Tube City IMS Corp., 9.75%, 2/1/15, |
|
| 50,000 |
|
| 47,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 434,687 |
|
|
|
|
|
|
| ||
| |||||||
Oil & Gas – 8.7% |
|
|
|
|
|
|
|
Chaparral Energy, Inc., 8.50%, 12/1/15, |
|
| 100,000 |
|
| 91,000 |
|
Chesapeake Energy Corp., 6.88%, 1/15/16, |
|
| 100,000 |
|
| 101,000 |
|
Cimarex Energy Co., 7.13%, 5/1/17, |
|
| 100,000 |
|
| 101,500 |
|
Clayton Williams Energy, Inc., 7.75%, |
|
| 100,000 |
|
| 93,500 |
|
Colorado Interstate Gas Co., 6.80%, |
|
| 150,000 |
|
| 157,541 |
|
Compton Petroleum Finance Corp., |
|
| 100,000 |
|
| 98,750 |
|
Energy Partners Ltd., 9.75%, 4/15/14, |
|
| 50,000 |
|
| 46,250 |
|
Forest Oil Corp., 7.25%, 6/15/19, |
|
| 50,000 |
|
| 51,625 |
|
Inergy LP/Inergy Finance, 8.25%, 3/1/16, |
|
| 100,000 |
|
| 102,500 |
|
National Oilwell Varco, Inc., Series B, |
|
| 25,000 |
|
| 25,600 |
|
Newfield Exploration Co., 6.63%, 9/1/14, |
|
| 100,000 |
|
| 99,250 |
|
Opti Canada, Inc., 7.88%, 12/15/14, |
|
| 50,000 |
|
| 50,875 |
|
Plains Exploration & Production Co., |
|
| 50,000 |
|
| 51,250 |
|
Swift Energy Co., 7.63%, 7/15/11, |
|
| 50,000 |
|
| 50,625 |
|
Tesoro Corp., 6.50%, 6/1/17, |
|
| 50,000 |
|
| 45,875 |
|
Tesoro Corp., 6.63%, 11/1/15, |
|
| 50,000 |
|
| 47,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,214,141 |
|
|
|
|
|
|
| ||
| |||||||
Paper & Related Products – 2.5% |
|
|
|
|
|
|
|
Catalyst Paper Corp., Series D, 8.63%, |
|
| 50,000 |
|
| 42,875 |
|
Exopack Holding Corp., 11.25%, 2/1/14, |
|
| 50,000 |
|
| 47,750 |
|
Georgia-Pacific Corp., 7.70%, 6/15/15 |
|
| 100,000 |
|
| 100,000 |
|
NewPage Corp., 10.00%, 5/1/12, |
|
| 25,000 |
|
| 26,687 |
|
Norampac, Inc., 6.75%, 6/1/13, |
|
| 100,000 |
|
| 86,750 |
|
Verso Paper Holdings LLC, Series B, |
|
| 50,000 |
|
| 51,625 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 355,687 |
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Pipelines – 3.2% |
|
|
|
|
|
|
|
Atlas Pipeline Partners LP, 8.13%, |
|
| 50,000 |
|
| 51,875 |
|
Dynegy Holdings, Inc., 8.38%, 5/1/16 |
|
| 150,000 |
|
| 156,375 |
|
El Paso Corp., 7.00%, 6/15/17 |
|
| 100,000 |
|
| 104,358 |
|
Mueller Water Products, Inc., 7.38%, |
|
| 50,000 |
|
| 43,500 |
|
Semgroup LP, 8.75%, 11/15/15, |
|
| 50,000 |
|
| 47,375 |
|
Williams Partners LP, 7.25%, 2/1/17 |
|
| 50,000 |
|
| 51,625 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 455,108 |
|
|
|
|
|
|
| ||
| |||||||
Printing & Publishing – 2.6% |
|
|
|
|
|
|
|
Block Communications, Inc., 8.25%, |
|
| 50,000 |
|
| 47,875 |
|
Canwest Mediaworks LP, 9.25%, 8/1/15, |
|
| 50,000 |
|
| 45,625 |
|
Idearc, Inc., 8.00%, 11/15/16, |
|
| 50,000 |
|
| 32,500 |
|
Medimedia USA, Inc., 11.38%, |
|
| 50,000 |
|
| 51,000 |
|
Morris Publishing, 7.00%, 8/1/13, |
|
| 100,000 |
|
| 61,500 |
|
Sheridan Group, Inc., 10.25%, 8/15/11, |
|
| 100,000 |
|
| 92,250 |
|
Valassis Communications, Inc., 8.25%, |
|
| 35,000 |
|
| 31,150 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 361,900 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Rental - Auto and Equipment – 2.2% |
|
|
|
|
|
|
|
Avis Budget Car Rental, Inc., 7.63%, |
|
| 100,000 |
|
| 91,375 |
|
H&E Equipment Services, Inc., 8.38%, |
|
| 50,000 |
|
| 43,500 |
|
Hertz Corp., 8.88%, 1/1/14, Callable |
|
| 100,000 |
|
| 100,750 |
|
RSC Equipment Rental, Inc., 9.50%, |
|
| 50,000 |
|
| 44,750 |
|
United Rentals, Inc., 6.50%, 2/15/12, |
|
| 25,000 |
|
| 23,437 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 303,812 |
|
|
|
|
|
|
| ||
| |||||||
Restaurants – 2.1% |
|
|
|
|
|
|
|
Buffets, Inc., 12.50%, 11/1/14, Callable |
|
| 50,000 |
|
| 1,250 |
|
Dave & Buster’s, Inc., 11.25%, 3/15/14, |
|
| 50,000 |
|
| 49,750 |
|
Landry’s Restaurants, Inc., 9.50%, |
|
| 100,000 |
|
| 97,125 |
|
NPC International, Inc., 9.50%, 5/1/14, |
|
| 50,000 |
|
| 46,000 |
|
Outback Steakhouse, Inc., 10.00%, |
|
| 75,000 |
|
| 56,625 |
|
Sbarro, Inc., 10.38%, 2/1/15, |
|
| 50,000 |
|
| 45,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 295,750 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 46 |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Retail – 1.2% |
|
|
|
|
|
|
|
Claire’s Stores, Inc., 9.63%, 6/1/15, |
|
| 50,000 |
|
| 30,000 |
|
Pep Boys, 7.50%, 12/15/14, Callable |
|
| 50,000 |
|
| 43,500 |
|
Stater Bros. Holdings, Inc., 7.75%, |
|
| 50,000 |
|
| 50,125 |
|
Suburban Propane Partners LP, 6.88%, |
|
| 50,000 |
|
| 49,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 172,875 |
|
|
|
|
|
|
| ||
| |||||||
Seismic Data Collection – 0.4% |
|
|
|
|
|
|
|
CIE Gener de Geophysique, 7.50%, |
|
| 50,000 |
|
| 51,625 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Special Purpose Entity – 4.1% |
|
|
|
|
|
|
|
Altra Industrial Motion, Inc., 9.00%, |
|
| 50,000 |
|
| 49,500 |
|
Buffalo Thunder Development Authority, |
|
| 50,000 |
|
| 34,000 |
|
Cellu Tissue Holdings, Inc., 9.75%, |
|
| 50,000 |
|
| 47,750 |
|
Chukchansi Economic Development |
|
|
|
|
|
|
|
Callable 11/15/09 @ 104.00 (b) |
|
| 25,000 |
|
| 22,250 |
|
Hawker Beechcraft Acquisition Co., |
|
| 50,000 |
|
| 52,750 |
|
Hawker Beechcraft Acquisition Co., |
|
| 25,000 |
|
| 26,375 |
|
KAR Holdings, Inc., 8.75%, 5/1/14, |
|
| 50,000 |
|
| 48,000 |
|
Local TV Finance LLC, 9.25%, 6/15/15, |
|
| 50,000 |
|
| 40,000 |
|
MCBC Holdings, Inc., 9.09%, 10/15/14, |
|
| 25,000 |
|
| 21,250 |
|
Petroplus Finance Ltd., 7.00%, 5/1/17, |
|
| 75,000 |
|
| 69,750 |
|
Rare Restaurant Group LLC, 9.25%, |
|
| 50,000 |
|
| 43,000 |
|
Regency Energy Partners LP, 8.38%, |
|
| 17,000 |
|
| 17,722 |
|
Southern Star Central Corp., Inc., |
|
| 50,000 |
|
| 48,125 |
|
UCI Holdco, Inc., 10.30%, 12/15/13, |
|
| 58,183 |
|
| 52,947 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 573,419 |
|
|
|
|
|
|
| ||
| |||||||
Steel – 0.4% |
|
|
|
|
|
|
|
Ryerson, Inc., 12.00%, 11/1/15, |
|
| 50,000 |
|
| 49,500 |
|
|
|
|
|
|
| ||
| |||||||
Telecommunications – 7.6% |
|
|
|
|
|
|
|
Broadview Networks Holdings, Inc., |
|
| 25,000 |
|
| 23,875 |
|
Centennial Communications Corp., |
|
| 100,000 |
|
| 101,000 |
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Telecommunications, continued |
|
|
|
|
|
|
|
Cincinnati Bell, Inc., 8.38%, 1/15/14, |
|
| 85,000 |
|
| 84,575 |
|
Citizens Communications Co., 7.13%, |
|
| 25,000 |
|
| 23,125 |
|
Cricket Communications, 9.38%, |
|
| 50,000 |
|
| 49,062 |
|
iPCS, Inc., 6.49%, 5/1/14, Callable |
|
| 100,000 |
|
| 81,000 |
|
Level 3 Financing, Inc., 9.25%, 11/1/14, |
|
| 50,000 |
|
| 45,500 |
|
MetroPCS Wireless, Inc., 9.25%, 11/1/14, |
|
| 100,000 |
|
| 98,250 |
|
Nordic Telephone Co., Holdings, 8.88%, |
|
| 50,000 |
|
| 51,125 |
|
NTL Cable PLC, 9.13%, 8/15/16, Callable |
|
| 125,000 |
|
| 120,625 |
|
PAETEC Holding Corp., 9.50%, 7/15/15, |
|
| 50,000 |
|
| 47,000 |
|
Panamsat Corp., 9.00%, 6/15/16, Callable |
|
| 50,000 |
|
| 50,437 |
|
Qwest Corp., 7.63%, 6/15/15 |
|
| 100,000 |
|
| 100,250 |
|
Radio One, Inc., 6.38%, 2/15/13, Callable |
|
| 50,000 |
|
| 37,875 |
|
West Corp., 11.00%, 10/15/16, Callable |
|
| 25,000 |
|
| 22,219 |
|
Wind Acquisition Financial SA, 10.75%, |
|
| 100,000 |
|
| 107,750 |
|
Windstream Corp., 8.63%, 8/1/16, |
|
| 25,000 |
|
| 26,188 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,069,856 |
|
|
|
|
|
|
| ||
| |||||||
Tobacco – 0.2% |
|
|
|
|
|
|
|
Alliance One International, Inc., 8.50%, |
|
| 25,000 |
|
| 23,750 |
|
|
|
|
|
|
| ||
| |||||||
Transportation – 1.0% |
|
|
|
|
|
|
|
Bristow Group, Inc., 7.50%, 9/15/17, |
|
| 50,000 |
|
| 51,625 |
|
Greenbrier Cos., Inc., 8.38%, 5/15/15, |
|
| 50,000 |
|
| 47,750 |
|
Navios Maritime Holdings, Inc., 9.50%, |
|
| 30,000 |
|
| 30,900 |
|
Saint Acquisition Corp., 10.82%, 5/15/15, |
|
| 50,000 |
|
| 16,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 146,775 |
|
|
|
|
|
|
| ||
| |||||||
Waste Disposal – 1.4% |
|
|
|
|
|
|
|
Allied Waste North America, Inc., 7.38%, |
|
| 100,000 |
|
| 100,750 |
|
Waste Services, Inc., 9.50%, 4/15/14, |
|
| 50,000 |
|
| 49,000 |
|
WCA Waste Corp., 9.25%, 6/15/14, |
|
| 50,000 |
|
| 50,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 200,250 |
|
|
|
|
|
|
| ||
TOTAL CORPORATE OBLIGATIONS |
|
|
|
|
| 13,386,581 |
|
|
|
|
|
|
|
|
|
|
47 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Investment Company—2.0% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Northern Institutional Diversified |
|
| 278,127 |
|
| 278,127 |
|
|
|
|
|
| |||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 278,127 |
|
|
|
|
|
| |||
TOTAL INVESTMENTS |
|
| . |
|
| 13,668,337 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $14,021,668. |
|
|
* | Represents yield at time of purchase. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
|
|
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
|
|
(d) | Non-Income Producing; Defaulted Bond. |
|
|
LLC | — Limited Liability Co. |
LP | — Limited Partnership |
PLC | — Public Limited Co. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 48 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
U.S. Government and Government Agency Obligations—46.3% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Federal Home Loan Mortgage Corp. – 5.9% |
|
|
|
|
|
|
|
Pool #1B2655, 6.19%, 12/1/34 (a)(d) |
|
| 106,265 |
|
| 107,187 |
|
Pool #1J1313, 6.40%, 6/1/36 (a) |
|
| 246,528 |
|
| 252,879 |
|
Pool #847557, 6.27%, 7/1/34 (a)(d) |
|
| 115,465 |
|
| 116,346 |
|
Pool #G02981, 6.00%, 6/1/37 |
|
| 176,541 |
|
| 180,766 |
|
Pool #G12317, 5.50%, 8/1/21 |
|
| 164,679 |
|
| 167,814 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 824,992 |
|
|
|
|
|
|
| ||
Federal National Mortgage Association – 25.6% |
|
|
|
|
|
|
|
6.50%, 5/1/35 |
|
| 550,000 |
|
| 569,078 |
|
Pool #781922, 5.00%, 2/1/21 |
|
| 342,578 |
|
| 344,780 |
|
Pool #922090, 5.89%, 3/1/37 (a) |
|
| 270,217 |
|
| 276,459 |
|
TBA May |
|
|
|
|
|
|
|
5.50%, 5/15/37 |
|
| 1,600,000 |
|
| 1,608,499 |
|
6.00%, 5/15/37 |
|
| 750,000 |
|
| 766,641 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,565,457 |
|
|
|
|
|
|
| ||
Government National Mortgage Association – 1.1% |
|
|
|
|
|
|
|
6.00%, 5/15/37 |
|
| 150,000 |
|
| 154,078 |
|
U.S. Treasury Bonds – 1.5% |
|
|
|
|
|
|
|
6.25%, 8/15/23 |
|
| 170,000 |
|
| 204,598 |
|
U.S. Treasury Notes – 12.2% |
|
|
|
|
|
|
|
4.75%, 2/15/10 |
|
| 340,000 |
|
| 355,220 |
|
4.75%, 1/31/12 |
|
| 190,000 |
|
| 203,404 |
|
2.88%, 1/31/13 |
|
| 582,000 |
|
| 578,226 |
|
2.75%, 2/28/13 |
|
| 250,000 |
|
| 246,797 |
|
4.00%, 2/15/15 |
|
| 150,000 |
|
| 156,070 |
|
3.50%, 2/15/18 |
|
| 175,000 |
|
| 171,281 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,710,998 |
|
|
|
|
|
|
| ||
TOTAL U.S. GOVERNMENT AND |
|
|
|
|
| 6,460,123 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Corporate Obligations—32.1% |
|
|
|
|
|
|
|
| |||||||
Banking – 1.5% |
|
|
|
|
|
|
|
American Express Centurion Bank, |
|
| 100,000 |
|
| 100,292 |
|
Washington Mutual, Inc., 3.20%, 9/17/12 (a) |
|
| 75,000 |
|
| 63,715 |
|
Washington Mutual Bank NV, 3.31%, |
|
| 50,000 |
|
| 44,182 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 208,189 |
|
|
|
|
|
|
| ||
Building & Construction Products – 1.4% |
|
|
|
|
|
|
|
Martin Marietta Materials, Inc., 3.40%, |
|
| 100,000 |
|
| 97,037 |
|
Masco Corp., 3.20%, 3/12/10 (a) |
|
| 100,000 |
|
| 92,765 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 189,802 |
|
|
|
|
|
|
| ||
Electric – 6.5% |
|
|
|
|
|
|
|
Duke Energy Carolinas LLC, |
|
| 100,000 |
|
| 99,374 |
|
MidAmerican Energy Co., 5.95%, 7/15/17 |
|
| 450,000 |
|
| 469,001 |
|
Puget Sound Energy, Inc., 6.97%, 6/1/67, |
|
| 100,000 |
|
| 89,807 |
|
Progress Energy, Inc., 3.47%, 11/14/08, |
|
| 250,000 |
|
| 249,061 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 907,243 |
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Finance – 5.0% |
|
|
|
|
|
|
|
Caterpillar Financial Services |
|
| 50,000 |
|
| 50,716 |
|
Ford Motor Credit Co., LLC |
|
|
|
|
|
|
|
9.75%, 9/15/10 |
|
| 300,000 |
|
| 291,450 |
|
7.25%, 10/25/11 |
|
| 25,000 |
|
| 22,514 |
|
Morgan Stanley, Series F, 6.00%, |
|
| 50,000 |
|
| 49,924 |
|
Pacific Life Global Funding, 5.15%, |
|
| 125,000 |
|
| 125,120 |
|
XTRA Finance Corp., 5.15%, 4/1/17 |
|
| 150,000 |
|
| 152,141 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 691,865 |
|
|
|
|
|
|
| ||
Hospitals – 0.6% |
|
|
|
|
|
|
|
HCA, Inc., 5.75%, 3/15/14 |
|
| 100,000 |
|
| 86,500 |
|
|
|
|
|
|
| ||
Media – 4.2% |
|
|
|
|
|
|
|
Time Warner Cable, Inc., 5.40%, 7/2/12 |
|
| 150,000 |
|
| 150,875 |
|
Time Warner Entertainment, 8.88%, 10/1/12 |
|
| 350,000 |
|
| 387,849 |
|
Vivendi, 5.75%, 4/4/13 (b) |
|
| 50,000 |
|
| 48,871 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 587,595 |
|
|
|
|
|
|
| ||
Medical – 1.1% |
|
|
|
|
|
|
|
AstraZeneca plc, 5.90%, 9/15/17 |
|
| 150,000 |
|
| 158,822 |
|
|
|
|
|
|
| ||
Office Equipment & Services – 0.7% |
|
|
|
|
|
|
|
Xerox Corp., 3.51%, 12/18/09 (a) |
|
| 100,000 |
|
| 98,269 |
|
|
|
|
|
|
| ||
Retail – 1.1% |
|
|
|
|
|
|
|
Kroger Co. (The), 5.00%, 4/15/13 |
|
| 25,000 |
|
| 25,118 |
|
Federated Retail Holdings, Inc., |
|
| 150,000 |
|
| 131,475 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 156,593 |
|
|
|
|
|
|
| ||
Telecommunications – 2.4% |
|
|
|
|
|
|
|
Verizon Pennsylvania, Inc., 5.65%, 11/15/11 | . |
| 275,000 |
|
| 279,468 |
|
Sprint Nextel Corp., 6.00%, 12/1/16 |
|
| 60,000 |
|
| 48,900 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 328,368 |
|
|
|
|
|
|
| ||
Transportation – 7.6% |
|
|
|
|
|
|
|
American Airlines, Inc., Series 2001-2 |
|
|
|
|
|
|
|
Class A1, 6.98%, 4/1/11 |
|
| 77,281 |
|
| 76,122 |
|
Class A2, 7.86%, 10/1/11 |
|
| 200,000 |
|
| 200,000 |
|
Burlington Northern Santa Fe Railway |
|
| 230,919 |
|
| 215,182 |
|
Continental Airlines, Inc., 5.98%, 4/19/22 | . |
| 100,000 |
|
| 87,125 |
|
Norfolk Southern Corp., 5.75%, 4/1/18 (b) | . |
| 50,000 |
|
| 50,707 |
|
Union Pacific Corp., 5.75%, 11/15/17 |
|
| 150,000 |
|
| 151,862 |
|
Union Pacific Railroad, 5.08%, 1/2/29 |
|
| 298,680 |
|
| 281,804 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,062,802 |
|
|
|
|
|
|
| ||
TOTAL CORPORATE OBLIGATIONS |
|
|
|
|
| 4,476,048 |
|
|
|
|
|
|
|
|
|
|
49 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Asset Backed Securities—9.1% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Americredit Automobile Receivables |
|
| 22,375 |
|
| 22,382 |
|
Asset Backed Funding Certificates, |
|
| 210,318 |
|
| 175,286 |
|
Cairn Mezzanine plc, Series 2007-3A, |
|
| 145,000 |
|
| 7,250 |
|
Capital Auto Receivables Asset Trust |
|
| 44,733 |
|
| 44,837 |
|
Series 2007-SN1, Class A3B, 2.78%, |
|
| 110,000 |
|
| 108,809 |
|
Countrywide Asset-Backed Certificates, |
|
| 210,000 |
|
| 160,901 |
|
GE Business Loan Trust, Series 2006-2A, |
|
| 243,354 |
|
| 230,880 |
|
GMAC Mortgage Corp., Loan Trust, |
|
| 170,000 |
|
| 79,170 |
|
MBNA Credit Card Master Note Trust, |
|
| 120,000 |
|
| 120,227 |
|
Nissan Auto Receivables Owner Trust, |
|
| 144,880 |
|
| 145,819 |
|
Preferred Term Securities XXII Ltd., |
|
| 197,945 |
|
| 170,490 |
|
|
|
|
|
|
| ||
TOTAL ASSET BACKED SECURITIES |
|
|
|
|
| 1,266,051 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Collateralized Mortgage Obligations—7.6% |
|
|
|
|
|
|
|
| |||||||
Banc of America Mortgage Securities, |
|
| 200,000 |
|
| 199,105 |
|
Deutsche Mortgage Securities, Inc., |
|
| 150,219 |
|
| 148,527 |
|
Freddie Mac |
|
|
|
|
|
|
|
Series 2988, Class AF, 3.02%, 6/15/35 (a) |
|
| 157,691 |
|
| 151,935 |
|
Series 3212, Class BK, 5.40%, 9/15/36 |
|
| 150,000 |
|
| 149,119 |
|
Morgan Stanley Mortgage Loan Trust, |
|
| 255,524 |
|
| 212,615 |
|
Residential Asset Securitization Trust, |
|
| 242,102 |
|
| 208,459 |
|
|
|
|
|
|
| ||
TOTAL COLLATERALIZED |
|
|
|
|
| 1,069,760 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Commercial Mortgage Backed Securities—12.1% |
|
|
|
|
|
|
|
| |||||||
Banc of America Commercial Mortgage, |
|
| 230,000 |
|
| 228,791 |
|
Bear Stearns Commercial Mortgage |
|
| 200,000 |
|
| 197,723 |
|
|
Commercial Mortgage Backed Securities, (continued) |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Citigroup/Deutsche Bank Commercial |
|
| 200,000 |
|
| 197,280 |
|
Commercial Mortgage Pass-Through |
|
|
|
|
|
|
|
Series 2006-FL12, Class A2, 2.82%, |
|
| 250,256 |
|
| 238,456 |
|
Series 2005-LP5, Class AJ, 5.05%, |
|
| 200,000 |
|
| 182,541 |
|
Morgan Stanley Capital I |
|
|
|
|
|
|
|
Series 2006-HQ10, Class A4, 5.33%, |
|
| 180,000 |
|
| 175,258 |
|
Series 2007-IQ14, Class A2, 5.61%, |
|
| 220,000 |
|
| 219,143 |
|
Series 2007-IQ14, Class AM, 5.88%, |
|
| 130,000 |
|
| 119,920 |
|
Washington Mutual Commercial Mortgage |
|
| 146,013 |
|
| 131,032 |
|
|
|
|
|
|
| ||
TOTAL COMMERCIAL MORTGAGE |
|
|
|
|
| 1,690,144 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Foreign Bonds—4.6% |
|
|
|
|
|
|
|
| |||||||
Iceland – 1.3% |
|
|
|
|
|
|
|
Kaupthing Bank, 3.41%, 1/15/10 (a)(b) |
|
| 225,000 |
|
| 188,437 |
|
|
|
|
|
|
| ||
Netherlands – 0.6% |
|
|
|
|
|
|
|
Shell International Finance BV, 5.20%, |
|
| 75,000 |
|
| 78,186 |
|
|
|
|
|
|
| ||
South Korea – 1.8% |
|
|
|
|
|
|
|
Citibank Korea, Inc., 4.68%, 6/18/13, |
|
| 250,000 |
|
| 250,409 |
|
|
|
|
|
|
| ||
United Kingdom – 0.9% |
|
|
|
|
|
|
|
Barclays Bank plc, 5.93%, 12/31/49 (b) |
|
| 150,000 |
|
| 126,651 |
|
|
|
|
|
|
| ||
TOTAL FOREIGN BONDS |
|
|
|
|
| 643,683 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 50 |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
Investment Company—9.1% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Northern Institutional Diversified |
|
| 1,265,567 |
|
| 1,265,567 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 1,265,567 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 16,871,376 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $13,954,791. |
|
|
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
|
|
(b) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
|
|
(c) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
|
|
(d) | Security held as collateral for to be announced securities. |
|
|
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 17.0% of net assets. |
|
|
|
51 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—94.3% | |||||||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 8.1% |
|
|
|
|
|
|
|
General Dynamics Corp. |
|
| 32,600 |
|
| 2,947,692 |
|
Raytheon Co. |
|
| 23,850 |
|
| 1,525,685 |
|
The Boeing Co. |
|
| 5,500 |
|
| 466,730 |
|
United Technologies Corp. |
|
| 23,350 |
|
| 1,692,174 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,632,281 |
|
|
|
|
|
|
| ||
Biotechnology – 4.4% |
|
|
|
|
|
|
|
Gilead Sciences, Inc. (a) |
|
| 70,300 |
|
| 3,638,728 |
|
|
|
|
|
|
| ||
Business Services – 1.3% |
|
|
|
|
|
|
|
Fluor Corp. |
|
| 7,100 |
|
| 1,085,377 |
|
|
|
|
|
|
| ||
Casinos & Gambling – 1.1% |
|
|
|
|
|
|
|
International Game Technology |
|
| 25,150 |
|
| 873,711 |
|
|
|
|
|
|
| ||
Chemicals – 4.4% |
|
|
|
|
|
|
|
Monsanto Co. |
|
| 31,300 |
|
| 3,568,826 |
|
|
|
|
|
|
| ||
Computer Software – 2.7% |
|
|
|
|
|
|
|
Adobe Systems, Inc. (a) |
|
| 22,400 |
|
| 835,296 |
|
Electronic Arts, Inc. (a) |
|
| 26,350 |
|
| 1,356,235 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,191,531 |
|
|
|
|
|
|
| ||
Computers – 10.0% |
|
|
|
|
|
|
|
Apple, Inc. (a) |
|
| 18,950 |
|
| 3,296,352 |
|
Hewlett-Packard Co. |
|
| 61,200 |
|
| 2,836,620 |
|
Research In Motion Ltd. (a) |
|
| 17,250 |
|
| 2,098,118 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,231,090 |
|
|
|
|
|
|
| ||
Consumer Products – 4.0% |
|
|
|
|
|
|
|
Colgate-Palmolive Co. |
|
| 46,300 |
|
| 3,273,410 |
|
|
|
|
|
|
| ||
Diversified Manufacturing Operations – 3.2% |
|
|
|
|
|
|
|
Joy Global, Inc. |
|
| 15,400 |
|
| 1,143,450 |
|
Thermo Fisher Scientific, Inc. (a) |
|
| 25,000 |
|
| 1,446,750 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,590,200 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 4.4% |
|
|
|
|
|
|
|
Emerson Electric Co. |
|
| 44,950 |
|
| 2,349,087 |
|
Microchip Technology, Inc. |
|
| 34,000 |
|
| 1,249,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,598,587 |
|
|
|
|
|
|
| ||
Farm Machinery & Equipment – 3.6% |
|
|
|
|
|
|
|
Deere & Co. |
|
| 35,550 |
|
| 2,988,689 |
|
|
|
|
|
|
| ||
Financial Services – 5.7% |
|
|
|
|
|
|
|
CME Group, Inc. |
|
| 5,425 |
|
| 2,481,666 |
|
Goldman Sachs Group, Inc. |
|
| 5,050 |
|
| 966,419 |
|
Visa, Inc., Class A (a) |
|
| 14,650 |
|
| 1,222,542 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,670,627 |
|
|
|
|
|
|
| ||
Food & Beverage – 8.8% |
|
|
|
|
|
|
|
McDonald’s Corp. |
|
| 21,500 |
|
| 1,280,970 |
|
PepsiCo, Inc. |
|
| 10,950 |
|
| 750,403 |
|
The Coca-Cola Co. |
|
| 56,300 |
|
| 3,314,381 |
|
Wm. Wrigley Jr. Co. |
|
| 7,350 |
|
| 559,776 |
|
Yum! Brands, Inc. |
|
| 31,650 |
|
| 1,287,522 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,193,052 |
|
|
|
|
|
|
| ||
Health Care – 5.0% |
|
|
|
|
|
|
|
Baxter International, Inc. |
|
| 27,600 |
|
| 1,720,032 |
|
DENTSPLY International, Inc. |
|
| 20,800 |
|
| 808,496 |
|
Zimmer Holdings, Inc. (a) |
|
| 21,100 |
|
| 1,564,776 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,093,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued | |||||||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Hotels & Lodging – 1.0% |
|
|
|
|
|
|
|
Las Vegas Sands Corp. (a) |
|
| 11,250 |
|
| 857,475 |
|
|
|
|
|
|
| ||
Industrial Manufacturing – 1.0% |
|
|
|
|
|
|
|
The Manitowoc Co., Inc. |
|
| 22,750 |
|
| 860,405 |
|
|
|
|
|
|
| ||
Insurance – 1.9% |
|
|
|
|
|
|
|
AFLAC, Inc. |
|
| 23,900 |
|
| 1,593,413 |
|
|
|
|
|
|
| ||
Internet Related – 0.7% |
|
|
|
|
|
|
|
Google, Inc., Class A (a) |
|
| 950 |
|
| 545,576 |
|
|
|
|
|
|
| ||
Oil & Gas – 9.5% |
|
|
|
|
|
|
|
National-Oilwell Varco, Inc. (a) |
|
| 6,700 |
|
| 458,615 |
|
Schlumberger Ltd. |
|
| 26,500 |
|
| 2,664,575 |
|
Smith International, Inc. |
|
| 40,750 |
|
| 3,117,782 |
|
Weatherford International Ltd. (a) |
|
| 19,200 |
|
| 1,548,864 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,789,836 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 8.5% |
|
|
|
|
|
|
|
Abbott Laboratories |
|
| 59,300 |
|
| 3,128,075 |
|
Alcon, Inc. ADR |
|
| 10,350 |
|
| 1,635,300 |
|
Allergan, Inc. |
|
| 13,350 |
|
| 752,539 |
|
Genentech, Inc. (a) |
|
| 21,629 |
|
| 1,475,098 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,991,012 |
|
|
|
|
|
|
| ||
Retail – 1.2% |
|
|
|
|
|
|
|
Kohl’s Corp. (a) |
|
| 19,400 |
|
| 947,690 |
|
|
|
|
|
|
| ||
Telecommunications – 3.8% |
|
|
|
|
|
|
|
Cisco Systems, Inc. (a) |
|
| 68,550 |
|
| 1,757,622 |
|
Nokia Corp. ADR |
|
| 16,150 |
|
| 485,631 |
|
QUALCOMM, Inc. |
|
| 20,650 |
|
| 891,873 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,135,126 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 77,349,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company—5.4% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 4,390,948 |
|
| 4,390,948 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 4,390,948 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 81,740,894 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $82,025,313. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
|
|
ADR — American Depositary Receipt |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 52 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—98.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Australia – 1.0% |
|
|
|
|
|
|
|
National Australia Bank Ltd. |
|
| 59,965 |
|
| 1,708,825 |
|
Zinifex Ltd. |
|
| 235,900 |
|
| 2,247,493 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,956,318 |
|
|
|
|
|
|
| ||
Austria – 1.0% |
|
|
|
|
|
|
|
Voestalpine AG |
|
| 51,400 |
|
| 3,952,365 |
|
|
|
|
|
|
| ||
Belgium – 1.7% |
|
|
|
|
|
|
|
Fortis |
|
| 176,832 |
|
| 4,831,551 |
|
Solvay SA, Class A |
|
| 11,700 |
|
| 1,724,795 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,556,346 |
|
|
|
|
|
|
| ||
Brazil – 0.6% |
|
|
|
|
|
|
|
Banco Do Brasil SA |
|
| 60,000 |
|
| 1,039,899 |
|
Usinas Siderurgicas de Minas Gerais SA |
|
| 27,900 |
|
| 1,341,524 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,381,423 |
|
|
|
|
|
|
| ||
Canada – 4.8% |
|
|
|
|
|
|
|
Barrick Gold Corp. |
|
| 37,500 |
|
| 1,441,821 |
|
Canadian Imperial Bank of Commerce |
|
| 21,000 |
|
| 1,547,050 |
|
Fairfax Financial Holdings Ltd. |
|
| 5,200 |
|
| 1,570,123 |
|
Gerdau Ameristeel Corp. |
|
| 161,000 |
|
| 2,510,628 |
|
HudBay Minerals, Inc. |
|
| 40,600 |
|
| 766,190 |
|
Industrial Alliance Insurance and Financial |
|
| 26,100 |
|
| 1,026,838 |
|
Inmet Mining Corp. |
|
| 11,300 |
|
| 927,637 |
|
Petro-Canada |
|
| 68,200 |
|
| 3,418,129 |
|
Royal Bank of Canada |
|
| 45,400 |
|
| 2,165,383 |
|
Teck Cominco Ltd., B Shares |
|
| 64,600 |
|
| 2,811,653 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 18,185,452 |
|
|
|
|
|
|
| ||
China – 0.2% |
|
|
|
|
|
|
|
China Petroleum & Chemical Corp. |
|
| 592,000 |
|
| 628,244 |
|
|
|
|
|
|
| ||
Finland – 1.8% |
|
|
|
|
|
|
|
Nokia Oyj |
|
| 129,400 |
|
| 3,984,087 |
|
Stora Enso Oyj, R Shares |
|
| 236,600 |
|
| 2,940,461 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,924,548 |
|
|
|
|
|
|
| ||
France – 11.8% |
|
|
|
|
|
|
|
Air France-KLM |
|
| 28,700 |
|
| 894,845 |
|
BNP Paribas SA |
|
| 64,580 |
|
| 6,982,412 |
|
Compagnie Generale des Establissements |
|
| 39,700 |
|
| 3,642,787 |
|
Credit Agricole SA |
|
| 142,779 |
|
| 4,826,251 |
|
France Telecom SA |
|
| 107,200 |
|
| 3,374,217 |
|
Lagardere S.C.A. |
|
| 46,400 |
|
| 3,346,213 |
|
Renault SA |
|
| 51,500 |
|
| 5,310,895 |
|
Sanofi-Aventis |
|
| 68,900 |
|
| 5,394,830 |
|
Societe Generale |
|
| 35,385 |
|
| 4,152,347 |
|
Societe Generale NV (a) |
|
| 8,846 |
|
| 1,024,798 |
|
Total SA |
|
| 72,900 |
|
| 6,139,403 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 45,088,998 |
|
|
|
|
|
|
| ||
Germany – 13.8% |
|
|
|
|
|
|
|
Allianz SE |
|
| 39,800 |
|
| 8,116,717 |
|
BASF AG |
|
| 63,600 |
|
| 9,070,961 |
|
Deutsche Bank AG |
|
| 52,800 |
|
| 6,355,884 |
|
Deutsche Lufthansa AG |
|
| 162,600 |
|
| 4,313,220 |
|
Deutsche Telekom AG |
|
| 220,300 |
|
| 3,969,245 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Germany, continued |
|
|
|
|
|
|
|
E.ON AG |
|
| 38,500 |
|
| 7,874,440 |
|
Infineon Technologies AG (a) |
|
| 304,300 |
|
| 2,831,626 |
|
Muenchener Rueckversicherungs- |
|
| 27,700 |
|
| 5,362,769 |
|
RWE AG |
|
| 41,300 |
|
| 4,781,331 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 52,676,193 |
|
|
|
|
|
|
| ||
Hong Kong – 0.4% |
|
|
|
|
|
|
|
China Netcom Group Corp., Ltd. |
|
| 462,000 |
|
| 1,393,191 |
|
|
|
|
|
|
| ||
India – 0.4% |
|
|
|
|
|
|
|
State Bank of India GDR |
|
| 17,600 |
|
| 1,650,880 |
|
|
|
|
|
|
| ||
Italy – 3.0% |
|
|
|
|
|
|
|
Buzzi Unicem SpA |
|
| 42,900 |
|
| 1,100,481 |
|
ENI SpA |
|
| 189,900 |
|
| 7,335,206 |
|
Fondiaria-SAI SpA |
|
| 57,900 |
|
| 2,339,540 |
|
Fondiaria-SAI SpA-RNC |
|
| 18,700 |
|
| 496,338 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 11,271,565 |
|
|
|
|
|
|
| ||
Japan – 21.6% |
|
|
|
|
|
|
|
Alps Electric Co., Ltd. |
|
| 55,000 |
|
| 511,542 |
|
Canon, Inc. |
|
| 32,250 |
|
| 1,612,965 |
|
FUJITSU Ltd. |
|
| 573,000 |
|
| 3,653,929 |
|
Hitachi Ltd. |
|
| 170,000 |
|
| 1,146,196 |
|
Honda Motor Co., Ltd. |
|
| 99,000 |
|
| 3,142,253 |
|
JFE Holdings, Inc. |
|
| 101,600 |
|
| 5,570,068 |
|
Kyushu Electric Power Co., Inc. |
|
| 101,300 |
|
| 2,299,394 |
|
Mitsubishi Chemical Holdings Corp. |
|
| 303,000 |
|
| 2,010,869 |
|
Mitsubishi Corp. |
|
| 129,000 |
|
| 4,144,080 |
|
Mitsubishi UFJ Financial Group, Inc. |
|
| 645,000 |
|
| 7,097,047 |
|
Mitsui & Co., Ltd. |
|
| 86,000 |
|
| 2,018,274 |
|
Mitsui Chemicals, Inc. |
|
| 417,000 |
|
| 2,542,830 |
|
Mitsui O.S.K. Lines Ltd. |
|
| 327,000 |
|
| 4,500,693 |
|
NAMCO BANDAI Holdings, Inc. |
|
| 123,800 |
|
| 1,550,328 |
|
Nippon Mining Holdings, Inc. |
|
| 360,000 |
|
| 2,226,411 |
|
Nippon Steel Corp. |
|
| 329,000 |
|
| 1,847,995 |
|
Nippon Telegraph & Telephone Corp. |
|
| 881 |
|
| 3,796,172 |
|
Nippon Yusen Kabushiki Kaisha |
|
| 152,000 |
|
| 1,476,580 |
|
Nissan Motor Co., Ltd. |
|
| 534,700 |
|
| 4,741,689 |
|
ORIX Corp. |
|
| 21,300 |
|
| 3,843,301 |
|
Sharp Corp. |
|
| 261,000 |
|
| 4,385,563 |
|
Sony Corp. |
|
| 12,510 |
|
| 575,145 |
|
Sumitomo Mitsui Financial Group, Inc. |
|
| 731 |
|
| 6,292,632 |
|
The Tokyo Electric Power Co., Inc. |
|
| 165,200 |
|
| 4,202,693 |
|
Toshiba Corp. |
|
| 543,000 |
|
| 4,501,933 |
|
Toyota Motor Corp. |
|
| 56,700 |
|
| 2,873,992 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 82,564,574 |
|
|
|
|
|
|
| ||
Luxembourg – 1.5% |
|
|
|
|
|
|
|
ArcelorMittal |
|
| 64,352 |
|
| 5,705,866 |
|
|
|
|
|
|
| ||
Netherlands – 4.5% |
|
|
|
|
|
|
|
Corporate Express NV |
|
| 107,400 |
|
| 1,239,185 |
|
ING Groep NV |
|
| 216,068 |
|
| 8,268,399 |
|
Koninklijke Ahold NV (a) |
|
| 266,720 |
|
| 3,964,425 |
|
Koninklijke DSM NV |
|
| 34,900 |
|
| 1,886,972 |
|
Wolters Kluwer NV |
|
| 70,200 |
|
| 1,891,758 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,250,739 |
|
|
|
|
|
|
|
|
|
|
53 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Norway – 1.5% |
|
|
|
|
|
|
|
StatoilHydro ASA |
|
| 153,100 |
|
| 5,552,772 |
|
|
|
|
|
|
| ||
Russian Federation – 0.6% |
|
|
|
|
|
|
|
JSC MMC Norilsk Nickel ADR |
|
| 32,750 |
|
| 884,250 |
|
LUKOIL ADR |
|
| 16,550 |
|
| 1,494,465 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,378,715 |
|
|
|
|
|
|
| ||
Singapore – 0.6% |
|
|
|
|
|
|
|
Flextronics International Ltd. (a) |
|
| 104,800 |
|
| 1,088,872 |
|
Neptune Orient Lines Ltd. |
|
| 427,000 |
|
| 1,014,192 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,103,064 |
|
|
|
|
|
|
| ||
South Africa – 0.5% |
|
|
|
|
|
|
|
Sanlam Ltd. |
|
| 554,040 |
|
| 1,467,325 |
|
Standard Bank Group Ltd. |
|
| 31,023 |
|
| 369,728 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,837,053 |
|
|
|
|
|
|
| ||
South Korea – 2.1% |
|
|
|
|
|
|
|
Honam Petrochemical Corp. |
|
| 8,100 |
|
| 719,982 |
|
Hynix Semiconductor, Inc. (a) |
|
| 24,700 |
|
| 660,375 |
|
Hyundai Motor Co., Ltd. |
|
| 9,500 |
|
| 801,776 |
|
Hyundai Motors Co., Ltd., Second Preferred |
|
| 15,950 |
|
| 573,621 |
|
Industrial Bank of Korea GDR |
|
| 88,300 |
|
| 1,479,025 |
|
Kookmin Bank ADR |
|
| 14,600 |
|
| 1,018,350 |
|
POSCO ADR |
|
| 11,400 |
|
| 1,406,760 |
|
Samsung Electronics Co., Ltd., Preferred |
|
| 2,900 |
|
| 1,492,817 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,152,706 |
|
|
|
|
|
|
| ||
Spain – 1.3% |
|
|
|
|
|
|
|
Repsol YPF SA |
|
| 118,600 |
|
| 4,821,846 |
|
|
|
|
|
|
| ||
Sweden – 2.1% |
|
|
|
|
|
|
|
Electrolux AB, B Shares |
|
| 118,500 |
|
| 1,821,584 |
|
Svenska Cellusoa AB (SCA), B Shares |
|
| 189,700 |
|
| 3,201,340 |
|
Tele2 AB, B Shares |
|
| 73,400 |
|
| 1,637,271 |
|
Volvo AB, B Shares |
|
| 86,500 |
|
| 1,322,453 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,982,648 |
|
|
|
|
|
|
| ||
Switzerland – 1.7% |
|
|
|
|
|
|
|
Credit Suisse Group |
|
| 81,100 |
|
| 4,517,299 |
|
Novartis AG |
|
| 42,460 |
|
| 2,160,095 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,677,394 |
|
|
|
|
|
|
| ||
Taiwan – 1.5% |
|
|
|
|
|
|
|
Asustek Computer, Inc. |
|
| 430,000 |
|
| 1,395,434 |
|
China Steel Corp. GDR |
|
| 38,878 |
|
| 1,269,367 |
|
Siliconware Precision Industries Co. |
|
| 707,691 |
|
| 1,225,006 |
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
|
| 508,398 |
|
| 1,113,817 |
|
United Microelectronics Corp. |
|
| 1,094,551 |
|
| 668,702 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,672,326 |
|
|
|
|
|
|
| ||
Thailand – 0.3% |
|
|
|
|
|
|
|
PTT Public Co., Ltd. |
|
| 121,400 |
|
| 1,279,306 |
|
|
|
|
|
|
| ||
United Kingdom – 18.3% |
|
|
|
|
|
|
|
Associated British Foods plc |
|
| 199,300 |
|
| 3,492,772 |
|
Aviva plc |
|
| 352,191 |
|
| 4,407,727 |
|
BAE Systems plc |
|
| 251,400 |
|
| 2,332,868 |
|
Barclays plc |
|
| 457,700 |
|
| 4,153,960 |
|
BP plc |
|
| 125,000 |
|
| 1,518,420 |
|
British Energy Group plc |
|
| 277,000 |
|
| 4,185,372 |
|
GlaxoSmithKline plc |
|
| 259,600 |
|
| 5,785,634 |
|
HBOS plc |
|
| 373,041 |
|
| 3,489,449 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
United Kingdom, continued |
|
|
|
|
|
|
|
Home Retail Group plc |
|
| 358,100 |
|
| 1,879,528 |
|
ITV plc |
|
| 879,270 |
|
| 1,153,737 |
|
Kazakhmys plc |
|
| 84,600 |
|
| 2,660,832 |
|
Punch Taverns plc |
|
| 91,000 |
|
| 938,060 |
|
Royal & Sun Alliance Insurance Group plc |
|
| 776,127 |
|
| 2,073,828 |
|
Royal Bank of Scotland Group plc |
|
| 1,039,124 |
|
| 7,127,334 |
|
Royal Dutch Shell plc, A Shares |
|
| 232,387 |
|
| 9,368,191 |
|
Royal Dutch Shell plc, B Shares |
|
| 45,973 |
|
| 1,841,699 |
|
Taylor Wimpey plc |
|
| 468,220 |
|
| 1,198,499 |
|
Vodafone Group plc |
|
| 2,624,658 |
|
| 8,364,633 |
|
Xstrata plc |
|
| 51,700 |
|
| 4,055,910 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 70,028,453 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 376,672,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company—0.6% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 2,269,283 |
|
| 2,269,283 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 2,269,283 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 378,942,268 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $382,006,984. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2008. |
|
|
ADR — American Depositary Receipt | |
GDR — Global Depositary Receipt | |
PLC — Public Limited Co. | |
SPA — Standby Purchase Agreement |
|
Schedule Portfolio Investments—April 30, 2008 |
|
|
|
|
Industry |
| Percent of Net Assets |
|
|
| ||
Aerospace & Defense |
| 0.6 | % |
Automotive |
| 7.7 | % |
Banking & Financial Services |
| 20.6 | % |
Broadcasting |
| 0.3 | % |
Building & Construction |
| 1.4 | % |
Cash & Cash Equivalents |
| 0.6 | % |
Chemicals |
| 4.7 | % |
Distribution/Wholesale |
| 0.3 | % |
Drugs - Medical |
| 3.5 | % |
Electrical |
| 7.9 | % |
Electronic Components & Semiconductors |
| 4.8 | % |
Food & Beverage |
| 0.9 | % |
Import/Export |
| 0.5 | % |
Insurance |
| 6.6 | % |
Manufacturing |
| 3.9 | % |
Metals & Mining |
| 8.8 | % |
Oil & Gas |
| 12.0 | % |
Paper & Related Products |
| 0.8 | % |
Publishing |
| 1.4 | % |
Retail |
| 1.8 | % |
Telecommunications |
| 6.9 | % |
Transportation Services |
| 3.2 | % |
|
|
| |
Total Investments |
| 99.2 | % |
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 54 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—96.5% |
|
|
|
|
|
|
|
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 4.4% |
|
|
|
|
|
|
|
BE Aerospace, Inc. (a) |
|
| 76,600 |
|
| 3,091,576 |
|
Empresa Brasileira de Aeronautica S.A. |
|
| 68,400 |
|
| 2,850,912 |
|
Esterline Technologies Corp. (a) |
|
| 46,950 |
|
| 2,613,237 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,555,725 |
|
|
|
|
|
|
| ||
Biotechnology – 3.2% |
|
|
|
|
|
|
|
Illumina, Inc. (a) |
|
| 33,400 |
|
| 2,601,526 |
|
Invitrogen Corp. (a) |
|
| 38,900 |
|
| 3,639,873 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,241,399 |
|
|
|
|
|
|
| ||
Business Services – 1.9% |
|
|
|
|
|
|
|
Navigant Consulting, Inc. (a) |
|
| 186,250 |
|
| 3,747,350 |
|
|
|
|
|
|
| ||
Computer Software – 14.2% |
|
|
|
|
|
|
|
ACI Worldwide, Inc. (a) |
|
| 157,500 |
|
| 3,480,750 |
|
BMC Software, Inc. (a) |
|
| 130,700 |
|
| 4,543,132 |
|
Brocade Communications Systems, Inc. (a) |
|
| 388,700 |
|
| 2,783,092 |
|
Check Point Software Technologies Ltd. (a) |
|
| 112,750 |
|
| 2,663,155 |
|
F5 Networks, Inc. (a) |
|
| 94,750 |
|
| 2,144,192 |
|
Nuance Communications, Inc. (a) |
|
| 270,750 |
|
| 5,490,810 |
|
Red Hat, Inc. (a) |
|
| 186,400 |
|
| 3,834,248 |
|
Satyam Computer Services Ltd. ADR |
|
| 115,100 |
|
| 2,955,768 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 27,895,147 |
|
|
|
|
|
|
| ||
Consumer Products – 5.0% |
|
|
|
|
|
|
|
Church & Dwight Co., Inc. |
|
| 74,400 |
|
| 4,227,408 |
|
Crown Holdings, Inc. (a) |
|
| 117,100 |
|
| 3,142,964 |
|
Jarden Corp. (a) |
|
| 112,350 |
|
| 2,395,302 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,765,674 |
|
|
|
|
|
|
| ||
Diversified Manufacturing Operations – 4.5% |
|
|
|
|
|
|
|
Actuant Corp., Class A |
|
| 132,400 |
|
| 4,484,388 |
|
AMETEK, Inc. |
|
| 88,500 |
|
| 4,294,020 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,778,408 |
|
|
|
|
|
|
| ||
Education – 2.1% |
|
|
|
|
|
|
|
Corinthian Colleges, Inc. (a) |
|
| 117,329 |
|
| 1,331,684 |
|
DeVry, Inc. |
|
| 49,500 |
|
| 2,821,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,153,184 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 1.8% |
|
|
|
|
|
|
|
ATMI, Inc. (a) |
|
| 60,750 |
|
| 1,788,480 |
|
Thomas & Betts Corp. (a) |
|
| 49,500 |
|
| 1,854,270 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,642,750 |
|
|
|
|
|
|
| ||
Financial Services – 2.3% |
|
|
|
|
|
|
|
Affiliated Managers Group, Inc. (a) |
|
| 20,150 |
|
| 2,001,701 |
|
MF Global Ltd. (a) |
|
| 185,450 |
|
| 2,442,377 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,444,078 |
|
|
|
|
|
|
| ||
Health Care – 8.4% |
|
|
|
|
|
|
|
DaVita, Inc. (a) |
|
| 80,900 |
|
| 4,239,969 |
|
DENTSPLY International, Inc. |
|
| 98,500 |
|
| 3,828,695 |
|
Gen-Probe, Inc. (a) |
|
| 67,500 |
|
| 3,804,300 |
|
Pediatrix Medical Group, Inc. (a) |
|
| 50,900 |
|
| 3,462,218 |
|
Volcano Corp. (a) |
|
| 97,050 |
|
| 1,148,102 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 16,483,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
| ||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Hotels & Lodging – 1.1% |
|
|
|
|
|
|
|
LaSalle Hotel Properties |
|
| 64,900 |
|
| 2,081,343 |
|
|
|
|
|
|
| ||
Industrial Manufacturing – 8.2% |
|
|
|
|
|
|
|
IDEX Corp. |
|
| 119,300 |
|
| 4,377,117 |
|
Oshkosh Corp. |
|
| 77,100 |
|
| 3,130,260 |
|
The Manitowoc Co., Inc. |
|
| 127,200 |
|
| 4,810,704 |
|
WESCO International, Inc. (a) |
|
| 102,600 |
|
| 3,817,746 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 16,135,827 |
|
|
|
|
|
|
| ||
Media – 1.3% |
|
|
|
|
|
|
|
DreamWorks Animation SKG, Inc. (a) |
|
| 89,600 |
|
| 2,505,216 |
|
|
|
|
|
|
| ||
Oil & Gas – 15.4% |
|
|
|
|
|
|
|
BJ Services Co. |
|
| 50,300 |
|
| 1,421,981 |
|
Consol Energy, Inc. |
|
| 52,700 |
|
| 4,266,592 |
|
Denbury Resources, Inc. (a) |
|
| 168,500 |
|
| 5,149,360 |
|
Exterran Holdings, Inc. (a) |
|
| 64,900 |
|
| 4,334,671 |
|
Massey Energy Co. |
|
| 111,550 |
|
| 5,837,411 |
|
National-Oilwell Varco, Inc. (a) |
|
| 1 |
|
| 62 |
|
Range Resources Corp. |
|
| 57,400 |
|
| 3,810,212 |
|
Smith International, Inc. |
|
| 70,400 |
|
| 5,386,304 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 30,206,593 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 12.1% |
|
|
|
|
|
|
|
Alexion Pharmaceuticals, Inc. (a) |
|
| 68,400 |
|
| 4,813,992 |
|
Elan Corp. plc ADR (a) |
|
| 338,700 |
|
| 8,904,423 |
|
OSI Pharmaceuticals, Inc. (a) |
|
| 129,050 |
|
| 4,471,582 |
|
Santarus, Inc. (a) |
|
| 243,700 |
|
| 653,116 |
|
Shire plc ADR |
|
| 88,500 |
|
| 4,862,190 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 23,705,303 |
|
|
|
|
|
|
| ||
Retail – 5.5% |
|
|
|
|
|
|
|
Dick’s Sporting Goods, Inc. (a) |
|
| 67,500 |
|
| 1,930,500 |
|
O’Reilly Automotive, Inc. (a) |
|
| 83,400 |
|
| 2,407,758 |
|
PetSmart, Inc. |
|
| 141,200 |
|
| 3,160,056 |
|
Urban Outfitters, Inc. (a) |
|
| 92,700 |
|
| 3,174,975 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 10,673,289 |
|
|
|
|
|
|
| ||
Telecommunications – 2.2% |
|
|
|
|
|
|
|
Comverse Technology, Inc. (a) |
|
| 99,400 |
|
| 1,734,530 |
|
Polycom, Inc. (a) |
|
| 119,950 |
|
| 2,686,880 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,421,410 |
|
|
|
|
|
|
| ||
Transportation – 2.9% |
|
|
|
|
|
|
|
Aircastle Ltd. |
|
| 110,050 |
|
| 1,538,499 |
|
Kansas City Southern (a) |
|
| 91,800 |
|
| 4,138,344 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,676,843 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 189,112,823 |
|
|
|
|
|
|
|
|
|
|
55 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Investment Company—4.7% |
|
|
|
|
| ||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Northern Institutional Government Select |
|
| 9,130,193 |
|
| 9,130,193 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 9,130,193 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 198,243,016 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $195,929,545. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate presented represents the annualized one day yield that was in effect on April 30, 2008. |
|
|
ADR — American Depositary Receipt | |
PLC — Public Limited Co. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 56 |
|
Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—94.3% |
|
|
|
|
| ||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 4.3% |
|
|
|
|
|
|
|
Lockheed Martin Corp. |
|
| 12,500 |
|
| 1,325,500 |
|
Raytheon Co. |
|
| 28,300 |
|
| 1,810,351 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,135,851 |
|
|
|
|
|
|
| ||
Banking – 3.6% |
|
|
|
|
|
|
|
Bank of America Corp. |
|
| 29,100 |
|
| 1,092,414 |
|
Wells Fargo & Co. |
|
| 50,700 |
|
| 1,508,325 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,600,739 |
|
|
|
|
|
|
| ||
Business Services – 3.6% |
|
|
|
|
|
|
|
Pitney Bowes, Inc. |
|
| 71,600 |
|
| 2,585,476 |
|
|
|
|
|
|
| ||
Computer Software – 6.8% |
|
|
|
|
|
|
|
CA, Inc. |
|
| 135,600 |
|
| 3,002,184 |
|
Microsoft Corp. |
|
| 66,700 |
|
| 1,902,284 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,904,468 |
|
|
|
|
|
|
| ||
Conglomerates – 3.1% |
|
|
|
|
|
|
|
Loews Corp. |
|
| 52,600 |
|
| 2,214,986 |
|
|
|
|
|
|
| ||
Consumer Products – 4.9% |
|
|
|
|
|
|
|
Altria Group, Inc. |
|
| 30,800 |
|
| 616,000 |
|
Kimberly-Clark Corp. |
|
| 27,500 |
|
| 1,759,725 |
|
Kraft Foods, Inc. |
|
| 25,069 |
|
| 792,932 |
|
Tyson Foods, Inc., Class A |
|
| 19,900 |
|
| 354,220 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,522,877 |
|
|
|
|
|
|
| ||
Diversified Manufacturing Operations – 3.3% |
|
|
|
|
|
|
|
Illinois Tool Works, Inc. |
|
| 18,400 |
|
| 962,136 |
|
Ingersoll-Rand Co., Class A |
|
| 32,400 |
|
| 1,437,912 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,400,048 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 0.7% |
|
|
|
|
|
|
|
Agilent Technologies, Inc. (a) |
|
| 17,464 |
|
| 527,587 |
|
|
|
|
|
|
| ||
Energy – 1.5% |
|
|
|
|
|
|
|
NRG Energy, Inc. (a) |
|
| 24,400 |
|
| 1,072,380 |
|
|
|
|
|
|
| ||
Financial Services – 6.4% |
|
|
|
|
|
|
|
Citigroup, Inc. |
|
| 44,707 |
|
| 1,129,746 |
|
Fannie Mae |
|
| 56,000 |
|
| 1,584,800 |
|
JP Morgan Chase & Co. |
|
| 39,950 |
|
| 1,903,617 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,618,163 |
|
|
|
|
|
|
| ||
Insurance – 10.6% |
|
|
|
|
|
|
|
Aetna, Inc. |
|
| 16,700 |
|
| 728,120 |
|
Aon Corp. |
|
| 36,800 |
|
| 1,670,352 |
|
Genworth Financial, Inc., Class A |
|
| 93,500 |
|
| 2,156,110 |
|
MGIC Investment Corp. |
|
| 18,400 |
|
| 239,752 |
|
Radian Group, Inc. |
|
| 32,100 |
|
| 173,340 |
|
The Hartford Financial Services Group, Inc. |
|
| 37,300 |
|
| 2,658,371 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,626,045 |
|
|
|
|
|
|
| ||
Media – 8.9% |
|
|
|
|
|
|
|
CBS Corp., Class B |
|
| 34,350 |
|
| 792,455 |
|
Comcast Corp., Class A |
|
| 85,850 |
|
| 1,737,604 |
|
Liberty Media Corp. Interactive, Class A (a) |
|
| 37,087 |
|
| 561,126 |
|
|
|
|
|
|
|
|
|
Common Stocks, (continued) |
|
|
|
|
| ||
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Media, continued |
|
|
|
|
|
|
|
Viacom, Inc., Class B (a) |
|
| 87,000 |
|
| 3,344,280 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,435,465 |
|
|
|
|
|
|
| ||
Metals & Mining – 5.9% |
|
|
|
|
|
|
|
AngloGold Ashanti Ltd. ADR |
|
| 27,300 |
|
| 931,476 |
|
Barrick Gold Corp. |
|
| 57,600 |
|
| 2,224,512 |
|
United States Steel Corp. |
|
| 7,300 |
|
| 1,123,835 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,279,823 |
|
|
|
|
|
|
| ||
Oil & Gas – 12.6% |
|
|
|
|
|
|
|
Apache Corp. |
|
| 24,400 |
|
| 3,286,192 |
|
ConocoPhillips |
|
| 9,571 |
|
| 824,542 |
|
Hess Corp. |
|
| 13,600 |
|
| 1,444,320 |
|
Noble Energy, Inc. |
|
| 32,600 |
|
| 2,836,200 |
|
Talisman Energy, Inc. |
|
| 34,600 |
|
| 705,148 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,096,402 |
|
|
|
|
|
|
| ||
Paper & Related Products – 0.8% |
|
|
|
|
|
|
|
International Paper Co. |
|
| 22,300 |
|
| 583,591 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 4.4% |
|
|
|
|
|
|
|
Amgen, Inc. (a) |
|
| 36,100 |
|
| 1,511,507 |
|
Sanofi-Aventis ADR |
|
| 42,700 |
|
| 1,647,366 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,158,873 |
|
|
|
|
|
|
| ||
Telecommunications – 7.6% |
|
|
|
|
|
|
|
AT&T, Inc. |
|
| 51,791 |
|
| 2,004,830 |
|
Motorola, Inc. |
|
| 202,400 |
|
| 2,015,904 |
|
Sprint Nextel Corp. |
|
| 45,600 |
|
| 364,344 |
|
Verizon Communications, Inc. |
|
| 27,800 |
|
| 1,069,744 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,454,822 |
|
|
|
|
|
|
| ||
Tobacco – 2.2% |
|
|
|
|
|
|
|
Philip Morris International, Inc. (a) |
|
| 30,800 |
|
| 1,571,724 |
|
|
|
|
|
|
| ||
Transportation – 3.1% |
|
|
|
|
|
|
|
Union Pacific Corp. |
|
| 15,300 |
|
| 2,221,407 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 68,010,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company—5.3% |
|
|
|
|
|
|
|
Northern Institutional Government |
|
| 3,793,994 |
|
| 3,793,994 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 3,793,994 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 71,804,721 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $72,120,671. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate presented represents the annualized one day yield that was in effect on April 30, 2008. |
|
|
ADR — American Depositary Receipt |
|
|
|
57 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| High Yield |
| Intermediate |
| Growth |
| International |
| |||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 127,858,766 |
| $ | 13,668,337 |
| $ | 16,871,376 |
| $ | 81,740,894 |
| $ | 378,942,268 |
|
Foreign currency, at value |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 1,572,984 |
|
Interest and dividends receivable |
|
| 920,962 |
|
| 358,088 |
|
| 110,924 |
|
| 74,474 |
|
| 2,286,427 |
|
Receivable for investments sold |
|
| 125,569 |
|
| — |
|
| 510,189 |
|
| 681,878 |
|
| 39,343 |
|
Prepaid expenses and other assets |
|
| 1,403 |
|
| 3,130 |
|
| 207 |
|
| 1,142 |
|
| 5,951 |
|
|
|
|
|
|
|
| ||||||||||
Total Assets |
|
| 128,906,700 |
|
| 14,029,555 |
|
| 17,492,696 |
|
| 82,498,388 |
|
| 382,846,973 |
|
|
|
|
|
|
|
| ||||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investments purchased |
|
| 21,700,866 |
|
| — |
|
| 3,528,743 |
|
| 429,198 |
|
| 532,050 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 42,252 |
|
| 6,744 |
|
| 4,721 |
|
| 31,588 |
|
| 257,201 |
|
Administration |
|
| 6,832 |
|
| 441 |
|
| 1,707 |
|
| 2,559 |
|
| 15,685 |
|
Compliance Service |
|
| 141 |
|
| 13 |
|
| 17 |
|
| 74 |
|
| 497 |
|
Other |
|
| 5,707 |
|
| 689 |
|
| 2,717 |
|
| 9,656 |
|
| 34,556 |
|
|
|
|
|
|
|
| ||||||||||
Total Liabilities |
|
| 21,755,798 |
|
| 7,887 |
|
| 3,537,905 |
|
| 473,075 |
|
| 839,989 |
|
|
|
|
|
|
|
| ||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Applicable to investors’ beneficial interest |
| $ | 107,150,902 |
| $ | 14,021,668 |
| $ | 13,954,791 |
| $ | 82,025,313 |
| $ | 382,006,984 |
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments, at cost |
| $ | 131,291,027 |
| $ | 14,615,217 |
| $ | 17,501,070 |
| $ | 69,701,227 |
| $ | 331,767,500 |
|
|
|
|
|
|
|
| ||||||||||
Foreign currency, at cost |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 1,560,548 |
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 58 |
HSBC INVESTOR PORTFOLIOS
Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued)
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||
Assets: |
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 198,243,016 |
| $ | 71,804,721 |
|
Interest and dividends receivable |
|
| 49,933 |
|
| 67,253 |
|
Receivable for investments sold |
|
| 8,205,063 |
|
| 283,094 |
|
Prepaid expenses and other assets |
|
| 2,968 |
|
| 1,291 |
|
|
|
|
| ||||
Total Assets |
|
| 206,500,980 |
|
| 72,156,359 |
|
|
|
|
| ||||
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
| 10,429,869 |
|
| — |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
Investment Management |
|
| 123,879 |
|
| 30,613 |
|
Administration |
|
| 10,562 |
|
| 2,380 |
|
Compliance Service |
|
| 282 |
|
| 81 |
|
Other |
|
| 6,843 |
|
| 2,614 |
|
|
|
|
| ||||
Total Liabilities |
|
| 10,571,435 |
|
| 35,688 |
|
|
|
|
| ||||
Net Assets: |
|
|
|
|
|
|
|
Applicable to investors’ beneficial interest |
| $ | 195,929,545 |
| $ | 72,120,671 |
|
|
|
|
| ||||
Total Investments, at cost |
| $ | 180,869,174 |
| $ | 68,806,339 |
|
|
|
|
|
|
|
|
59 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| High Yield |
| Intermediate |
| Growth |
| International |
| |||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
| $ | 2,945,066 |
| $ | 612,506 |
| $ | 370,761 |
| $ | — |
| $ | 38,615 |
|
Dividends |
|
| 107,344 |
|
| 4,918 |
|
| 20,569 |
|
| 400,300 |
|
| 6,100,654 |
|
Foreign tax withholding |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (627,218 | ) |
|
|
|
|
|
|
| ||||||||||
Total Investment Income |
|
| 3,052,410 |
|
| 617,424 |
|
| 391,330 |
|
| 400,300 |
|
| 5,512,051 |
|
|
|
|
|
|
|
| ||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 260,224 |
|
| 40,631 |
|
| 29,353 |
|
| 192,718 |
|
| 1,253,632 |
|
Administration |
|
| 12,687 |
|
| 1,548 |
|
| 1,679 |
|
| 9,363 |
|
| 43,687 |
|
Accounting |
|
| 34,631 |
|
| 39,235 |
|
| 32,094 |
|
| 33,615 |
|
| 48,370 |
|
Compliance Service |
|
| 333 |
|
| 36 |
|
| 39 |
|
| 228 |
|
| 1,176 |
|
Custodian |
|
| 5,205 |
|
| 888 |
|
| 1,613 |
|
| 3,797 |
|
| 116,364 |
|
Printing |
|
| 444 |
|
| 49 |
|
| 77 |
|
| 358 |
|
| 1,893 |
|
Professional |
|
| 1,947 |
|
| 295 |
|
| 162 |
|
| 1,493 |
|
| 6,783 |
|
Trustee |
|
| 651 |
|
| 77 |
|
| 83 |
|
| 484 |
|
| 2,317 |
|
Other |
|
| 3,382 |
|
| 454 |
|
| 442 |
|
| 2,572 |
|
| 11,823 |
|
|
|
|
|
|
|
| ||||||||||
Total Expenses |
|
| 319,504 |
|
| 83,213 |
|
| 65,542 |
|
| 244,628 |
|
| 1,486,045 |
|
|
|
|
|
|
|
| ||||||||||
Net Investment Income (Loss) |
|
| 2,732,906 |
|
| 534,211 |
|
| 325,788 |
|
| 155,672 |
|
| 4,026,006 |
|
|
|
|
|
|
|
| ||||||||||
Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| (323,666 | ) |
| (53,540 | ) |
| (8,207 | ) |
| 2,536,512 |
|
| 21,492,000 |
|
Change in unrealized appreciation (depreciation) from investments and foreign currencies |
|
| (3,313,157 | ) |
| (733,817 | ) |
| (543,869 | ) |
| (10,179,207 | ) |
| (74,548,272 | ) |
|
|
|
|
|
|
| ||||||||||
Net realized/unrealized gains (losses) from investment and foreign currency transactions |
|
| (3,636,823 | ) |
| (787,357 | ) |
| (552,076 | ) |
| (7,642,695 | ) |
| (53,056,272 | ) |
|
|
|
|
|
|
| ||||||||||
Change In Net Assets Resulting From Operations |
| $ | (903,917 | ) | $ | (253,146 | ) | $ | (226,288 | ) | $ | (7,487,023 | ) | $ | (49,030,266 | ) |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 60 |
HSBC INVESTOR PORTFOLIOS
Statements of Operations—For the six months ended April 30, 2008 (Unaudited) (continued)
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||
Investment Income: |
|
|
|
|
|
|
|
Dividends |
| $ | 398,103 |
| $ | 767,817 |
|
|
|
|
| ||||
Total Investment Income |
|
| 398,103 |
|
| 767,817 |
|
|
|
|
| ||||
Expenses: |
|
|
|
|
|
|
|
Investment Management |
|
| 770,287 |
|
| 192,741 |
|
Administration |
|
| 22,020 |
|
| 8,396 |
|
Accounting |
|
| 27,062 |
|
| 26,501 |
|
Compliance Service |
|
| 501 |
|
| 201 |
|
Custodian |
|
| 7,474 |
|
| 2,559 |
|
Printing |
|
| 929 |
|
| 390 |
|
Professional |
|
| 3,129 |
|
| 1,149 |
|
Trustee |
|
| 1,055 |
|
| 431 |
|
Other |
|
| 5,922 |
|
| 2,287 |
|
|
|
|
| ||||
Total Expenses |
|
| 838,379 |
|
| 234,655 |
|
|
|
|
| ||||
| |||||||
Net Investment Income (Loss) |
|
| (440,276 | ) |
| 533,162 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies: |
|
|
|
|
|
|
|
Net realized gains (losses) from investments and foreign currency transactions |
|
| 19,546,781 |
|
| 638,240 |
|
Change in unrealized appreciation (depreciation) from investments and foreign currencies |
|
| (25,370,794 | ) |
| (9,799,293 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net realized/unrealized gains (losses) from investment and foreign currency transactions |
|
| (5,824,013 | ) |
| (9,161,053 | ) |
|
|
|
| ||||
Change In Net Assets Resulting From Operations |
| $ | (6,264,289 | ) | $ | (8,627,891 | ) |
|
|
|
|
|
|
|
61 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| High Yield |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 2,732,906 |
| $ | 5,909,376 |
| $ | 534,211 |
| $ | 931,443 |
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| (323,666 | ) |
| 2,910,717 |
|
| (53,540 | ) |
| 119,132 |
|
Change in unrealized appreciation (depreciation) from investments and foreign currencies |
|
| (3,313,157 | ) |
| (1,031,793 | ) |
| (733,817 | ) |
| (279,652 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (903,917 | ) |
| 7,788,300 |
|
| (253,146 | ) |
| 770,923 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 11,076,269 |
|
| 24,166,324 |
|
| 1,982,026 |
|
| 5,258,548 |
|
Value of withdrawals |
|
| (22,833,358 | ) |
| (23,334,647 | ) |
| (2,194,475 | ) |
| (4,260,973 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (11,757,089 | ) |
| 831,677 |
|
| (212,449 | ) |
| 997,575 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (12,661,006 | ) |
| 8,619,977 |
|
| (465,595 | ) |
| 1,768,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 119,811,908 |
|
| 111,191,931 |
|
| 14,487,263 |
|
| 12,718,765 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 107,150,902 |
| $ | 119,811,908 |
| $ | 14,021,668 |
| $ | 14,487,263 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 62 |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
| Intermediate Duration |
| ||||
|
| For the six |
| For the |
| ||
Investment Activities: |
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 325,788 |
| $ | 882,974 |
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| (8,207 | ) |
| 848,391 |
|
Change in unrealized appreciation (depreciation) from investments and foreign currencies |
|
| (543,869 | ) |
| (182,994 | ) |
|
|
|
| ||||
Change in net assets resulting from operations |
|
| (226,288 | ) |
| 1,548,371 |
|
|
|
|
| ||||
Proceeds from contributions |
|
| 1,413,784 |
|
| 2,605,895 |
|
Value of withdrawals |
|
| (2,291,274 | ) |
| (8,612,265 | ) |
|
|
|
| ||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (877,490 | ) |
| (6,006,370 | ) |
|
|
|
| ||||
Change in net assets |
|
| (1,103,778 | ) |
| (4,457,999 | ) |
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
Beginning of period |
|
| 15,058,569 |
|
| 19,516,568 |
|
|
|
|
| ||||
End of period |
| $ | 13,954,791 |
| $ | 15,058,569 |
|
|
|
|
|
|
|
|
63 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International Equity |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 155,672 |
| $ | 334,013 |
| $ | 4,026,006 |
| $ | 8,527,724 |
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| 2,536,512 |
|
| 4,271,356 |
|
| 21,492,000 |
|
| 36,079,080 |
|
Change in unrealized appreciation (depreciation) from investments and foreign currencies |
|
| (10,179,207 | ) |
| 16,611,654 |
|
| (74,548,272 | ) |
| 42,586,569 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (7,487,023 | ) |
| 21,217,023 |
|
| (49,030,266 | ) |
| 87,193,373 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 8,140,434 |
|
| 25,944,124 |
|
| 23,350,477 |
|
| 90,634,524 |
|
Value of withdrawals |
|
| (8,313,975 | ) |
| (17,303,034 | ) |
| (47,374,836 | ) |
| (56,520,981 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (173,541 | ) |
| 8,641,090 |
|
| (24,024,359 | ) |
| 34,113,543 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (7,660,564 | ) |
| 29,858,113 |
|
| (73,054,625 | ) |
| 121,306,916 |
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 89,685,877 |
|
| 59,827,764 |
|
| 455,061,609 |
|
| 333,754,693 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 82,025,313 |
| $ | 89,685,877 |
| $ | 382,006,984 |
| $ | 455,061,609 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 64 |
HSBC INVESTOR PORTFOLIOS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (440,276 | ) | $ | (1,201,508 | ) | $ | 533,162 |
| $ | 992,431 |
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| 19,546,781 |
|
| 58,390,322 |
|
| 638,240 |
|
| 6,083,399 |
|
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| (25,370,794 | ) |
| 1,890,389 |
|
| (9,799,293 | ) |
| 71,241 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (6,264,289 | ) |
| 59,079,203 |
|
| (8,627,891 | ) |
| 7,147,071 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 8,629,465 |
|
| 77,393,032 |
|
| 5,665,260 |
|
| 23,927,675 |
|
Value of withdrawals |
|
| (30,704,097 | ) |
| (153,698,612 | ) |
| (7,574,938 | ) |
| (15,848,601 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (22,074,632 | ) |
| (76,305,580 | ) |
| (1,909,678 | ) |
| 8,079,074 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (28,338,921 | ) |
| (17,226,377 | ) |
| (10,537,569 | ) |
| 15,226,145 |
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 224,268,466 |
|
| 241,494,843 |
|
| 82,658,240 |
|
| 67,432,095 |
|
�� |
|
|
|
|
| ||||||||
End of period |
| $ | 195,929,545 |
| $ | 224,268,466 |
| $ | 72,120,671 |
| $ | 82,658,240 |
|
|
|
|
|
|
|
|
|
|
65 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
|
|
|
| |||||||
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
CORE PLUS FIXED INCOME PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2003 |
| 5.80 | % |
| $ | 203,551 |
| 0.48 | % |
| 4.38 | % |
| 0.48 | % |
| 70.91 | % |
|
Year Ended October 31, 2004 |
| 5.56 | % |
|
| 169,459 |
| 0.52 | % |
| 4.31 | % |
| 0.52 | % |
| 34.88 | % |
|
Year Ended October 31, 2005 |
| 1.64 | %(d) |
|
| 122,530 |
| 0.40 | %(d) |
| 4.25 | %(d) |
| 0.53 | % |
| 176.60 | % |
|
Year Ended October 31, 2006 |
| 5.55 | % |
|
| 111,192 |
| 0.63 | % |
| 4.96 | % |
| 0.63 | % |
| 273.91 | % |
|
Year Ended October 31, 2007 |
| 6.94 | % |
|
| 119,812 |
| 0.59 | % |
| 4.99 | % |
| 0.59 | % |
| 252.56 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (0.87 | )% |
|
| 107,151 |
| 0.58 | % |
| 4.93 | % |
| 0.58 | % |
| 61.96 | % |
|
HIGH YIELD FIXED INCOME PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2006 (e) |
| 7.41 | % |
| $ | 12,719 |
| 1.86 | % |
| 6.33 | % |
| 1.86 | % |
| 13.61 | % |
|
Year Ended October 31, 2007 |
| 6.41 | % |
|
| 14,487 |
| 1.37 | % |
| 7.12 | % |
| 1.37 | % |
| 30.77 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (1.81 | )% |
|
| 14,022 |
| 1.23 | % |
| 7.90 | % |
| 1.23 | % |
| 14.28 | % |
|
INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2003 |
| 4.42 | % |
| $ | 84,488 |
| 0.53 | % |
| 3.70 | % |
| 0.53 | % |
| 98.42 | % |
|
Year Ended October 31, 2004 |
| 4.48 | % |
|
| 63,697 |
| 0.57 | % |
| 3.54 | % |
| 0.57 | % |
| 50.06 | % |
|
Year Ended October 31, 2005 |
| 0.76 | %(d) |
|
| 32,810 |
| 0.49 | %(d) |
| 3.85 | %(d) |
| 0.58 | % |
| 107.26 | % |
|
Year Ended October 31, 2006 |
| 5.29 | % |
|
| 19,517 |
| 0.78 | % |
| 4.58 | % |
| 0.78 | % |
| 236.51 | % |
|
Year Ended October 31, 2007 |
| 8.38 | % |
|
| 15,059 |
| 0.84 | % |
| 4.68 | % |
| 0.84 | % |
| 219.76 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (1.53 | )% |
|
| 13,955 |
| 0.89 | % |
| 4.44 | % |
| 0.89 | % |
| 52.13 | % |
|
GROWTH PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2004 (e) |
| (0.86 | )% |
| $ | 49,680 |
| 0.72 | % |
| 0.06 | % |
| 0.72 | % |
| 53.08 | % |
|
Year Ended October 31, 2005 |
| 13.59 | %(d) |
|
| 49,415 |
| 0.63 | %(d) |
| 0.77 | %(d) |
| 0.68 | % |
| 79.54 | % |
|
Year Ended October 31, 2006 |
| 7.53 | % |
|
| 59,828 |
| 0.69 | % |
| 0.38 | % |
| 0.69 | % |
| 75.06 | % |
|
Year Ended October 31, 2007 |
| 31.11 | % |
|
| 89,686 |
| 0.62 | % |
| 0.45 | % |
| 0.62 | % |
| 57.04 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (8.33 | )% |
|
| 82,025 |
| 0.60 | % |
| 0.38 | % |
| 0.60 | % |
| 29.44 | % |
|
INTERNATIONAL EQUITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2003 |
| 23.70 | % |
| $ | 201,805 |
| 0.96 | % |
| 1.00 | % |
| 0.96 | % |
| 68.51 | % |
|
Year Ended October 31, 2004 |
| 20.29 | % |
|
| 220,025 |
| 0.94 | % |
| 1.53 | % |
| 0.94 | % |
| 106.11 | % |
|
Year Ended October 31, 2005 |
| 19.54 | % |
|
| 230,230 |
| 0.84 | % |
| 1.92 | % |
| 0.84 | % |
| 31.32 | % |
|
Year Ended October 31, 2006 |
| 32.79 | % |
|
| 333,755 |
| 0.86 | % |
| 2.03 | % |
| 0.86 | % |
| 33.39 | % |
|
Year Ended October 31, 2007 |
| 25.17 | % |
|
| 455,062 |
| 0.79 | % |
| 2.16 | % |
| 0.79 | % |
| 26.08 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (10.79 | )% |
|
| 382,007 |
| 0.78 | % |
| 2.11 | % |
| 0.78 | % |
| 13.91 | % |
|
OPPORTUNITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2003 |
| 33.30 | % |
| $ | 426,181 |
| 0.91 | % |
| (0.62 | )% |
| 0.91 | % |
| 152.05 | % |
|
Year Ended October 31, 2004 |
| 5.93 | % |
|
| 359,333 |
| 0.88 | % |
| (0.52 | )% |
| 0.88 | % |
| 81.75 | % |
|
Year Ended October 31, 2005 |
| 14.35 | %(d) |
|
| 218,778 |
| 0.85 | %(d) |
| (0.45 | )%(d) |
| 0.90 | % |
| 63.95 | % |
|
Year Ended October 31, 2006 |
| 19.54 | % |
|
| 241,495 |
| 0.91 | % |
| (0.40 | )% |
| 0.91 | % |
| 60.83 | % |
|
Year Ended October 31, 2007 |
| 30.54 | % |
|
| 224,268 |
| 0.91 | % |
| (0.55 | )% |
| 0.91 | % |
| 69.41 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (2.63 | )% |
|
| 195,930 |
| 0.87 | % |
| (0.46 | )% |
| 0.87 | % |
| 39.97 | % |
|
VALUE PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2004 (e) |
| 6.12 | % |
| $ | 61,414 |
| 0.71 | % |
| 1.28 | % |
| 0.71 | % |
| 10.33 | % |
|
Year Ended October 31, 2005 |
| 15.23 | %(d) |
|
| 54,150 |
| 0.64 | %(d) |
| 1.15 | %(d) |
| 0.69 | % |
| 16.45 | % |
|
Year Ended October 31, 2006 |
| 22.21 | % |
|
| 67,432 |
| 0.71 | % |
| 1.23 | % |
| 0.71 | % |
| 20.63 | % |
|
Year Ended October 31, 2007 |
| 10.28 | % |
|
| 82,658 |
| 0.66 | % |
| 1.29 | % |
| 0.66 | % |
| 18.67 | % |
|
Six Months Ended April 30, 2008 (Unaudited) |
| (10.38 | )% |
|
| 72,121 |
| 0.64 | % |
| 1.45 | % |
| 0.64 | % |
| 14.42 | % |
|
|
|
(a) | Not annualized for periods less than one year. |
|
|
(b) | Annualized for periods less than one year. |
|
|
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(d) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.12%, 0.09%, 0.05%, 0.04% and 0.05% for the Core Plus Fixed Income Portfolio, Intermediate Duration Fixed Income Portfolio, Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively. |
|
|
(e) | High Yield Fixed Income Portfolio commenced operations on November 18, 2005. |
|
|
| Growth Portfolio commenced operations on May 7, 2004. |
|
|
| Value Portfolio commenced operations on May 7, 2004. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 66 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) |
|
|
1. | Organization: |
|
|
| The HSBC Investor Portfolios (the “Portfolio Trust”), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,” collectively the “Portfolios”): |
|
|
|
|
| Portfolio |
| Short Name |
|
| ||
| HSBC Investor Core Plus Fixed Income Portfolio |
| Core Plus Fixed Income Portfolio |
| HSBC Investor High Yield Fixed Income Portfolio |
| High Yield Fixed Income Portfolio |
| HSBC Investor Intermediate Duration Fixed Income Portfolio |
| Intermediate Duration Fixed Income Portfolio |
| HSBC Investor Growth Portfolio |
| Growth Portfolio |
| HSBC Investor International Equity Portfolio |
| International Equity Portfolio |
| HSBC Investor Opportunity Portfolio |
| Opportunity Portfolio |
| HSBC Investor Value Portfolio |
| Value Portfolio |
|
|
| The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest their investable assets in the Portfolios. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios. |
|
|
| The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
|
|
| Under the Portfolio Trust’s organizational documents, the Portfolios’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolios may enter into contracts with their service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolios expect that risk of loss to be remote. |
|
|
2. | Significant Accounting Policies: |
|
|
| The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. |
|
|
| Securities Valuation: |
|
|
| Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Portfolios’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security. |
|
|
| The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Portfolios’ Board of Trustees. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural |
|
|
67 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
|
|
| disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. |
|
|
| Investment Transactions and Related Income: |
|
|
| Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date. |
|
|
| Foreign Currency Translation: |
|
|
| The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. |
|
|
| Forward Foreign Currency Exchange Contracts: |
|
|
| The Portfolios may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. |
|
|
| Futures Contracts: |
|
|
| Each Portfolio may invest in futures contracts for the purpose of hedging their existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets. |
|
|
| Mortgage Dollar Roll Transactions: |
|
|
| The Core Plus Fixed Income Portfolio, the High Yield Fixed Income Portfolio and the Intermediate Duration Fixed Income Portfolio may engage in dollar roll transactions with respect to mortgage securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. In a dollar roll transaction, the Portfolio sells a mortgage-backed security and simultaneously agrees to repurchase a similar security on a specified future date at an agreed upon price. During the roll period, the Portfolio will not be entitled to receive any interest or principal paid on the securities sold. The Portfolio is compensated for the lost interest on the securities sold by the difference between the sales price and the lower price for the future repurchase as well as by the interest earned on the reinvestment of the sales proceeds. The Portfolio may also be compensated by receipt of a commitment fee. |
|
|
HSBC INVESTOR PORTFOLIOS | 68 |
|
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
|
|
| Restricted and Illiquid Securities: |
|
|
| A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the investment adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At April 30, 2008 the HSBC Core Plus Fixed Income Portfolio held restricted securities that were illiquid, representing 0.02% of net assets, as follows: |
|
|
|
|
|
|
|
|
|
Security Name |
| Acquisition |
| Acquisition |
| Principal |
| Value($) |
|
|
|
| |||||
FHA Weyerhauser, 7.43%, 1/1/24 |
| 3/28/2002 |
| 25,228 |
| 26,696 |
| 26,696 |
|
|
| Repurchase Agreements: |
|
|
| The Portfolios may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Portfolio plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a fair value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Portfolios’ custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Portfolio has the right to use the collateral to offset losses incurred. There is a potential for loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Portfolio seeks to assert its rights. |
|
|
| Expense Allocations: |
|
|
| Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis. |
|
|
| Federal Income Taxes: |
|
|
| Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies. |
|
|
| In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Portfolio Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Portfolios’ net assets or results of operations. |
|
|
69 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
|
|
| New Accounting Pronouncements: |
|
|
| In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements”(“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period. |
|
|
| In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Portfolios financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures. |
|
|
3. | Related Party Transactions: |
|
|
| HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Waddell & Reed Investment Management Company, AllianceBernstein Investment Research and Management, Westfield Capital Management, LLC and NWQ Investment Management Co., LLC serve as Sub-Investment Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios. |
|
|
| For its services, the Investment Adviser receives a fee, accrued daily and paid monthly, at an annual rate of 0.60% of the High Yield Fixed Income Portfolio’s average daily net assets and 0.40% of the Intermediate Duration Fixed Income Portfolio’s average daily net assets. |
|
|
| For its services as Investment Adviser, HSBC receives, from the Core Plus Fixed Income Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| ||
Up to $50 million |
| 0.575% |
In excess of $50 million but not exceeding $95 million |
| 0.450% |
In excess of $95 million but not exceeding $150 million |
| 0.200% |
In excess of $150 million but not exceeding $250 million |
| 0.400% |
In excess of $250 million |
| 0.350% |
|
|
| For their services, the Investment Adviser and Waddell & Reed Investment Management Company receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| ||
Up to $50 million |
| 0.500% |
In excess of $50 million but not exceeding $100 million |
| 0.425% |
In excess of $100 million but not exceeding $200 million |
| 0.375% |
In excess of $200 million |
| 0.325% |
|
|
HSBC INVESTOR PORTFOLIOS | 70 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
|
|
| For their services, the Investment Adviser and AllianceBernstein Investment Research and Management receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
Based on Average Daily Net Assets of: |
| Fee Rate | |
| |||
Up to $10 million |
| 1.015 | % |
In excess of $10 million but not exceeding $25 million |
| 0.925 | % |
In excess of $25 million but not exceeding $50 million |
| 0.79 | % |
In excess of $50 million but not exceeding $100 million |
| 0.70 | % |
In excess of $100 million |
| 0.61 | % |
|
|
| For their services, the Investment Adviser and Westfield Capital Management, LLC receive in aggregate, a fee, accrued daily and paid monthly, at an annual rate of 0.80% of the Opportunity Portfolio’s average daily net assets. |
|
|
| For their services, the Investment Adviser and NWQ Investment Management Co., LLC receive in aggregate, from the Value Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| ||
Up to $500 million |
| 0.525% |
In excess of $500 million but not exceeding $1 billion |
| 0.475% |
In excess of $1 billion |
| 0.425% |
|
|
| Administration: |
|
|
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| ||
Up to $12 billion |
| 0.0525% |
In excess of $12 billion |
| 0.0350% |
|
|
| The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and Feeder Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half of the administration fee, for a combination of the total fee rate set forth above. |
|
|
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of The Citigroup, Inc., serves as the Portfolio Trust’s sub-administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Portfolios and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Portfolios’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
|
|
| Fund Accounting, Custodian and Trustee: |
|
|
| Citi Ohio provides fund accounting services for the Portfolios. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly. |
|
|
| Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee |
|
|
71 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) |
|
|
| Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
| Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
4. | Investment Transactions: |
|
|
| Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2008 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Name |
| Purchases |
| Sales |
| Purchases |
| Sales |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
| $ | 25,839,917 |
| $ | 44,373,528 |
| $ | 38,241,573 |
| $ | 29,287,671 |
|
High Yield Fixed Income Portfolio |
|
| 1,909,068 |
|
| 1,874,639 |
|
| — |
|
| — |
|
Intermediate Duration Fixed Income Portfolio |
|
| 1,981,553 |
|
| 5,467,875 |
|
| 4,902,753 |
|
| 2,961,503 |
|
Growth Portfolio |
|
| 23,757,509 |
|
| 26,341,429 |
|
| — |
|
| — |
|
International Equity Portfolio |
|
| 53,593,082 |
|
| 64,674,325 |
|
| — |
|
| — |
|
Opportunity Portfolio |
|
| 76,590,560 |
|
| 101,410,149 |
|
| — |
|
| — |
|
Value Portfolio |
|
| 10,064,290 |
|
| 10,311,265 |
|
| — |
|
| — |
|
|
|
5. | Federal Income Tax Information: |
|
|
| At April 30, 2008, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Name |
| Tax Cost |
| Tax |
| Tax |
| Net |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
| $ | 131,318,596 |
| $ | 909,519 |
| $ | (4,369,349 | ) | $ | (3,459,830 | ) |
High Yield Fixed Income Portfolio |
|
| 14,615,217 |
|
| 172,528 |
|
| (1,119,408 | ) |
| (946,880 | ) |
Intermediate Duration Fixed Income Portfolio |
|
| 17,506,162 |
|
| 82,336 |
|
| (717,122 | ) |
| (634,786 | ) |
Growth Portfolio |
|
| 69,983,120 |
|
| 14,085,129 |
|
| (2,327,355 | ) |
| 11,757,774 |
|
International Equity Portfolio |
|
| 332,759,907 |
|
| 72,693,893 |
|
| (26,511,532 | ) |
| 46,182,361 |
|
Opportunity Portfolio |
|
| 181,435,446 |
|
| 30,998,404 |
|
| (14,190,834 | ) |
| 16,807,570 |
|
Value Portfolio |
|
| 68,683,585 |
|
| 13,285,531 |
|
| (10,164,395 | ) |
| 3,121,136 |
|
|
|
6. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC’’) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements. |
|
|
HSBC INVESTOR PORTFOLIOS | 72 |
|
|
HSBC INVESTOR PORTFOLIOS | |
Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued) | |
|
|
7. | Subsequent Event for Sub-Adviser Change: |
|
|
| Effective May 12, 2008, Winslow Capital Management Inc. (“Winslow”) serves as the Sub-Adviser to the Growth Portfolio. |
|
|
| Effective May 12, 2008, the Investment Adviser and Winslow receives in aggregate, from the HSBC Investor Family of Funds, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
|
Based on Sub-Advised HSBC Investor Family of Funds Average Daily Net Assets of: |
| Fee Rate |
| |
|
| |||
Up to $250 million |
|
| 0.40 | % |
In excess of $250 million but not exceeding $500 million |
|
| 0.35 | % |
In excess of $500 million but not exceeding $750 million |
|
| 0.30 | % |
In excess of $750 million but not exceeding $1 billion |
|
| 0.25 | % |
In excess $1 billion |
|
| 0.20 | % |
|
|
73 | HSBC INVESTOR PORTFOLIOS |
|
|
HSBC INVESTOR PORTFOLIOS | 74 |
|
|
|
HSBC INVESTOR PORTFOLIOS | ||
Investment Adviser Contract Approval—as of April 30, 2008 (Unaudited) (continued) | ||
|
|
|
|
| provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds. |
|
| |
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements. |
|
|
75 | HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| |||||||||||
|
|
|
|
|
| |||||||||||||||
Core Plus Fixed Income Portfolio |
|
| $ | 1,000.00 |
|
|
| $ | 991.30 |
|
|
| $ | 2.87 |
|
|
| 0.58 | % |
|
High Yield Fixed Income Portfolio |
|
|
| 1,000.00 |
|
|
|
| 981.90 |
|
|
|
| 6.06 |
|
|
| 1.23 | % |
|
Intermediate Duration Fixed Income Portfolio |
|
|
| 1,000.00 |
|
|
|
| 984.70 |
|
|
|
| 4.39 |
|
|
| 0.89 | % |
|
Growth Portfolio |
|
|
| 1,000.00 |
|
|
|
| 916.70 |
|
|
|
| 2.86 |
|
|
| 0.60 | % |
|
International Equity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 892.10 |
|
|
|
| 3.67 |
|
|
| 0.78 | % |
|
Opportunity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 973.70 |
|
|
|
| 4.27 |
|
|
| 0.87 | % |
|
Value Portfolio |
|
|
| 1,000.00 |
|
|
|
| 896.20 |
|
|
|
| 3.02 |
|
|
| 0.64 | % |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
HSBC INVESTOR PORTFOLIOS | 76 |
|
|
HSBC INVESTOR PORTFOLIOS | |
Table of Shareholder Expenses (unaudited)—as of April 30, 2008 (continued) | |
|
|
| Hypothetical Example for Comparison Purposes |
|
|
| The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
|
|
| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||||||
|
|
|
|
|
| ||||||||||||
Core Plus Fixed Income Portfolio |
| $ | 1,000.00 |
| $ | 1,021.98 |
|
| $ | 2.92 |
|
|
|
| 0.58 | % |
|
High Yield Fixed Income Portfolio |
|
| 1,000.00 |
|
| 1,018.75 |
|
|
| 6.17 |
|
|
|
| 1.23 | % |
|
Intermediate Duration Fixed Income Portfolio |
|
| 1,000.00 |
|
| 1,020.44 |
|
|
| 4.47 |
|
|
|
| 0.89 | % |
|
Growth Portfolio |
|
| 1,000.00 |
|
| 1,021.88 |
|
|
| 3.02 |
|
|
|
| 0.60 | % |
|
International Equity Portfolio |
|
| 1,000.00 |
|
| 1,020.98 |
|
|
| 3.92 |
|
|
|
| 0.78 | % |
|
Opportunity Portfolio |
|
| 1,000.00 |
|
| 1,020.54 |
|
|
| 4.37 |
|
|
|
| 0.87 | % |
|
Value Portfolio |
|
| 1,000.00 |
|
| 1,021.68 |
|
|
| 3.22 |
|
|
|
| 0.64 | % |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
77 | HSBC INVESTOR PORTFOLIOS |
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities is available without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders or on the Fund’s website at www.investorfunds.us.hsbc.com and the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. A copy of the Fund’s voting record for the most recent 12 month period ending June 30 is available at the Commission’s website at http://www.sec.gov.
Schedules of Portfolio Investments for fiscal quarters ending January 31 and July 31 will be available no later than 60 days after each period end, without charge, on the Fund’s website at www.investorfunds.us.hsbc.com and on the Commission’s website at http://www.sec.gov.
An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
|
|
HSBC INVESTOR PORTFOLIOS | 78 |
HSBC Investor LifeLine Funds: |
|
INVESTMENT ADVISER AND ADMINISTRATOR |
HSBC Investments (USA) Inc. |
452 Fifth Avenue |
New York, NY 10018 |
Effective June 2, 2008, changed name to |
HSBC Global Asset Management (USA) Inc. |
|
SUB-ADVISERS |
HSBC Investor Growth Portfolio |
Waddell & Reed Investment Management Company |
6300 Lamar Avenue |
Overland Park, KS 66202 |
Through May 12, 2008 |
|
HSBC Investor Growth Portfolio |
Winslow Capital Management, Inc. |
4720 IDS Tower |
80th South Eighth Street |
Minneapolis, MN 55402 |
Effective May 13, 2008 |
|
HSBC Investor International Equity Portfolio |
AllianceBernstein Investment Research and Management |
1345 Avenue of the Americas, 39th Floor |
New York, NY 10105 |
|
HSBC Investor Small Cap Equity Portfolio |
Westfield Capital Management, LLC |
One Financial Center |
Boston, MA 02111 |
|
HSBC Investor Value Portfolio |
NWQ Investment Management Co., LLC |
2049 Century Park East, 16th Floor |
Los Angeles, CA 90067 |
|
SHAREHOLDER SERVICING AGENTS |
For HSBC Bank USA, N.A. and |
HSBC Securities (USA) Inc. Clients |
HSBC Bank USA, N.A. |
452 Fifth Avenue |
New York, NY 10018 |
1-888-525-5757 |
|
For All Other Shareholders |
HSBC Investor Funds |
P.O. Box 182845 |
Columbus, OH 43218-2845 |
1-800-782-8183 |
|
TRANSFER AGENT AND SPONSOR |
Citi Fund Services |
3435 Stelzer Road |
Columbus, OH 43219 |
|
DISTRIBUTOR |
Foreside Distribution Services. L.P. |
3435 Stelzer Road |
Columbus, OH 43219 |
|
CUSTODIAN |
HSBC Investor Core Plus Fixed Income Portfolio |
HSBC Investor High Yield Fixed Income Portfolio |
HSBC Investor Intermediate Duration Fixed Income Portfolio |
HSBC Investor Growth Portfolio |
HSBC Investor International Equity Portfolio |
HSBC Investor Opportunity Portfolio |
HSBC Investor Value Portfolio |
The Northern Trust Company |
50 South LaSalle Street |
Chicago, IL 60603 |
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING |
FIRM |
KPMG LLP |
191 West Nationwide Blvd., Suite 500 |
Columbus, OH 43215 |
|
LEGAL COUNSEL |
Dechert LLP |
1775 I Street, N.W. |
Washington, D.C. 20006 |
The HSBC LifeLine 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-SR-LL |
| 04/08 |
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 PORTFOLIOS |
By (Signature and Title)* | /s/Richard A. Fabietti | ||
Richard A. Fabietti | |||
President | |||
Date July 2, 2008 |
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 | |||
Date July 2, 2008 | |||
By (Signature and Title)* | /s/Troy A. Sheets | ||
Troy A. Sheets | |||
Treasurer | |||
Date July 2, 2008 | |||
* Print the name and title of each signing officer under his or her signature. |