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, 2009
Item 1. Reports to Stockholders.
HSBC Global Asset Management (USA) Inc.
April 30th, 2009
HSBC Investor LifeLine FundsTM
Semi-Annual Report
HSBC Investor Aggressive Growth Strategy Fund
HSBC Investor Growth Strategy Fund
HSBC Investor Moderate Growth Strategy Fund
HSBC Investor Conservative Growth Strategy Fund
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Table of Contents |
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Semi-Annual Report - April 30, 2009
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HSBC Investor Portfolios |
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32 | |
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Schedules of Portfolio Investments |
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This page is intentionally left blank.
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Glossary of Terms |
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Barclays Capital Intermediate U.S. Aggregate Index (formerly Lehman Brothers U.S. Intermediate Aggregate Index) is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Citigroup U.S. Domestic Three Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.
Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation, imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
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.
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. Russell’s consultants advise clients on more than $2 trillion in assets. Russell delivers investment programs to over 2,000 clients in 44 countries. With more than $230 billion in assets in our funds, Russell researchers meet with over 4,000 investment managers around the world to evaluate their investment process.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2000® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s (“S&P 500”) 500 Index 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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The difficulties in the markets that I mentioned in my last letter continued for the period covered by this semi-annual financial report. In response, governments around the world announced programs of varying types designed to provide support to key industries and generally promote economic activity.
In the face of these market conditions, investors have seen the value of their portfolios decrease, in some cases dramatically. Even money market funds, which are considered by many to be “safe havens” have not been immune from these conditions. In October 2008, a large U.S.-registered money market fund experienced significant market depreciation of some of its portfolio holdings and announced that its price per share had sunk below $1.00.
The U.S. government has responded to this situation with a number of programs. Several were designed to support the credit markets by encouraging investments in money market instruments. Another program was specifically aimed at supporting investor confidence in money market funds. The U.S. Treasury offered money market funds the opportunity to participate in a temporary guarantee program under which a participating fund would receive financial support from the Treasury if its price per share were to depreciate below $1.00. Most money market funds in the U.S. participated in this program.
The Board of Trustees of the HSBC Investor Funds has actively monitored these developments and, along with the Funds’ adviser, has taken actions designed to support the financial interests of the Funds’ shareholders. For example, most of the HSBC Investor money market funds have participated in the Treasury’s Temporary Guarantee Program. The sole exception was the HSBC Investor U.S. Treasury Money Market Fund, which invests in obligations issued by the U.S. Treasury.
The Board continues to work with the Adviser on evaluating investment options and taking actions designed to benefit the shareholders. We remain committed to managing the HSBC Investor Funds in a prudent manner for long-term performance, while taking advantage of short-term market movements.
For commentary on the Funds’ investment results, please read the portfolio managers’ analysis of current market conditions.
After 22 years of serving as the Chairman of the Funds’ Board of Trustees, I will be stepping down, effective July 1, 2009; however, I will continue as a trustee. Michael Seely, who has also been a trustee of the funds since their inception, will be taking over as chairman on that date. I would like to take this time to thank you for the opportunity to serve as Chairman and for your continuing investments with the HSBC Investor Funds.
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Sincerely, |
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Larry M. Robbins, Chairman, HSBC Investor Funds |
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1 | HSBC INVESTOR FAMILY OF FUNDS |
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U.S. Economic Review
Several factors weighed on the U.S. economy during the six-month period between November 1, 2008 and April 30, 2009. Employment continued to decline, causing weakness in consumer spending. The decline in consumer spending also reflected falling prices for goods and services, particularly oil and gas. Consumer spending accounts for more than two-thirds of U.S. economic activity, so slower spending posed a significant threat to economic growth.
Housing values continued to decline in the wake of the subprime mortgage crisis. Foreclosures mounted, forcing financial firms to continue writing down the value of their assets in mortgage-related securities. The federal government responded by designating $1 trillion to help investors buy distressed loans and other assets from U.S. banks. Meanwhile, U.S. automakers struggled with a steep decline in sales and sought a federal bailout in order to avoid bankruptcy.
The Federal Reserve Board acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed in December reduced the federal funds rate, its target short-term interest rate, from 1.00% to a range between 0.00% and 0.25% in order to inject liquidity into the financial markets.
In addition, in December, the National Bureau of Economic Research announced that the United States had officially been in a recession since the previous December. The U.S. economy contracted substantially during the period under review: Gross domestic product decreased at annualized rates of 6.3% during the fourth quarter of 2008 and 5.7% in the first quarter of 2009.
Meanwhile, governments across the globe took unprecedented measures to fight the slowdown—the first synchronized global recession since World War II. The G-20, which includes 20 developed and emerging countries with some of the world’s largest economies, agreed on a $1.1 trillion program that the International Monetary Fund would use to help afflicted countries boost economic activity. Both the U.S. and U.K. governments attempted to stimulate lending via quantitative easing, in addition to maintaining target short-term interest rates near zero. Quantitative easing increases the amount of money in circulation by boosting the supply of credit and thus stimulating the flow of money around the economy.
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 volatile during this time, as grim economic news and the emerging federal response to the crisis caused traders to react aggressively in response to new data. The U.S. market recovered between early March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. The period ended with the stock market’s best six-week performance since 1938. For the period as a whole the S&P 500 Index1 returned -8.52%, while the small-cap Russell 2000® Index1 lost 8.40%.
Foreign stocks generally posted losses, with the MSCI EAFE Index1 of developed foreign stock markets falling -2.35% 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 were mixed during the period. These shares suffered as investors sold assets they perceived to be risky, then rebounded powerfully later in the period as risk aversion decreased and commodity prices rebounded.
The fixed-income markets experienced several distinct environments during the six-month period. The worsening global recession fueled a flight to quality in November as investors sought out the most conservative and secure fixed-income investments—in particular Treasury securities. As the financial crisis began to recede, demand rose for higher-risk fixed-income securities such as corporate and government agency issues. The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad fixed-income market, returned 7.74% for the six months through April.
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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
Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.
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 these Funds will fluctuate as the value of the securities in their portfolios change.
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. 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.
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 and a lower rate of return than longer-term bonds.
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the money market funds seek to preserve the value of your investment at $1.00.
The LifeLine Funds, through a fund of funds structure, provide an asset allocation option to investors who seek to diversify their investment across a variety of asset classes by allocating investments to different underlying mutual funds (“Underlying Funds”) in accordance with the LifeLine Funds’ asset allocation model. Each LifeLine Fund provides an asset allocation option corresponding to different investment objectives and risk tolerances.
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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 Funds according to the various target percentage weightings selected by the Adviser, approximately as set forth in the table below.
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Underlying Portfolio |
| HSBC Investor |
| HSBC Investor |
| HSBC Investor |
| HSBC Investor |
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Large Cap Growth Fund |
| 21% |
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| 21 | % |
| 19 | % |
| 15 | % |
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Large Cap Value Fund |
| 21% |
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| 21 | % |
| 18 | % |
| 14 | % |
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Small-Cap Fund |
| 34% |
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| 20 | % |
| 11 | % |
| 4 | % |
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International Equity Fund |
| 23% |
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| 20 | % |
| 15 | % |
| 10 | % |
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Fixed Income |
| None |
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| 15 | % |
| 26 | % |
| 28 | % |
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High Yield Fixed Income Fund |
| None |
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| 2 | % |
| 5 | % |
| 8 | % |
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Money Market Fund |
| 1% |
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| 1 | % |
| 6 | % |
| 21 | % |
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Total: |
| 100% |
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| 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, 2009 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Aggressive Growth Strategy Fund Class A1 |
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| 2/14/05 |
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| -7.75 |
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| -41.11 |
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| -11.96 |
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| -3.81 |
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| 1.98 |
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| 1.50 |
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HSBC Investor Aggressive Growth Strategy Fund Class B2 |
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| 2/9/05 |
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| -7.32 |
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| -40.91 |
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| -11.68 |
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| -3.29 |
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| 2.73 |
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| 2.25 |
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HSBC Investor Aggressive Growth Strategy Fund Class C3 |
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| 6/10/05 |
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| -4.54 |
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| -39.09 |
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| -11.08 |
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| -3.59 |
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| 2.73 |
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| 2.25 |
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Standard & Poor’s 500 Index |
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| — |
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| -8.52 |
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| -35.29 |
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| -10.76 |
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| N/A |
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| N/A |
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| N/A |
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Aggressive Growth Blended Portfolio Index5 |
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| — |
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| -3.40 |
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| -35.83 |
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| -11.03 |
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| N/A |
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| N/A |
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| 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, 2009 through March 1, 2010.
During the periods ended October 31, 2008 and April 30, 2009, the one or more Underlying Funds the Fund invests in received monies certain related to nonrecurring litigation settlements. Without the receipt of this payment, the returns for the applicable periods would be lower.
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† | Aggregate total return. |
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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 27, 2009. |
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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 90-Day T-Bill (1%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (34%) and the MSCI EAFE Index (23%), such as the 90 day T-Bill. 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. The Russell 1000® Growth Index measures the performance of those Russell companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of those Russell companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500™ Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE Index is a market capitalization-weighted equity index comprising 21 of the 48 countries in the MSCI universe and representing the developed world outside of North America. 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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5 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
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HSBC Investor Growth Strategy Fund
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2009 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
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| Net |
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HSBC Investor Growth Strategy Fund Class A1 |
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| 2/8/05 |
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| -6.43 |
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| -36.03 |
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| -10.01 |
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| -2.74 |
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| 1.53 |
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| 1.50 |
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HSBC Investor Growth Strategy Fund Class B2 |
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| 2/1/05 |
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| -5.77 |
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| -35.82 |
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| -9.71 |
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| -2.02 |
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| 2.28 |
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| 2.25 |
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HSBC Investor Growth Strategy Fund Class C3 |
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| 4/27/05 |
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| -2.86 |
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| -33.84 |
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| -9.13 |
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| -2.02 |
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| 2.28 |
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| 2.25 |
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Standard & Poor’s 500 Index |
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| — |
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| -8.52 |
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| -35.29 |
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| -10.76 |
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| N/A |
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| N/A |
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| N/A |
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Growth Blended Portfolio Index5 |
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| — |
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| -1.81 |
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| -30.38 |
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| -8.14 |
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| N/A |
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| N/A |
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| 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, 2009 through March 1, 2010.
During the periods ended October 31, 2007, October 31, 2008 and April 30, 2009 one or more Underlying Funds the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for the applicable periods would be lower.
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† | Aggregate total return. |
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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 27, 2009. |
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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 90-Day T-Bill (1%); Barclays Capital U.S. Aggregate Bond Fund 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. Due to the liquidation of the HSBC Investor High Yield Fixed Income Fund on March 31, 2009, the LifeLine Fund changed the underlying high yield index from Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped. Return and principal of stocks and bonds will vary with market conditions. Treasury bills such as the 90 day T-Bill 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. The Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped is a, market value-weighted index which covers the universe of fixed rate, non-investment grade debt. The Barclays Capital U.S. Aggregate Bond Fund Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one-year. The 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 is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada. The Russell 1000® Growth Index measures the performance of those Russell companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of those Russell companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2500™ Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE Index is a market capitalization-weighted equity index comprising 21 of the 48 countries in the MSCI universe and representing the developed world outside of North America. 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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HSBC INVESTOR FAMILY OF FUNDS | 6 |
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Portfolio Reviews |
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HSBC Investor Moderate Growth Strategy Fund
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2009 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
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HSBC Investor Moderate Growth Strategy Fund Class A1 |
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| 2/3/05 |
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| -4.06 |
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| -30.10 |
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| -7.71 |
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| -2.22 |
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| 1.48 |
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| 1.48 |
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HSBC Investor Moderate Growth Strategy Fund Class B2 |
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| 2/1/05 |
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| -4.39 |
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| -29.85 |
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| -7.43 |
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| -1.62 |
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| 2.23 |
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| 2.23 |
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HSBC Investor Moderate Growth Strategy Fund Class C3 |
|
| 6/10/05 |
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| -1.55 |
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| -27.72 |
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| -6.87 |
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| -2.31 |
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| 2.23 |
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| 2.23 |
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Standard & Poor’s 500 Index |
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| — |
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| -8.52 |
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| -35.29 |
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| -10.76 |
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| N/A |
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| N/A |
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| N/A |
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Moderate Growth Blended Portfolio Index5 |
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| — |
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| 0.06 |
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| -23.84 |
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| -5.12 |
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| N/A |
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| N/A |
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| 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, 2009 through March 1, 2010.
During the periods ended October 31, 2007, October 31, 2008 and April 30, 2009 one or more Underlying Funds the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for the applicable periods would be lower.
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† | Aggregate total return. |
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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 27, 2009. |
|
|
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 90-Day T-Bill (6%); Citigroup U.S. High Yield Market Capped Index (5%); Barclays Capital U.S. Aggregate Bond Fund 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. Due to the liquidation of the HSBC Investor High Yield Fixed Income Fund on March 31, 2009, the LifeLine Fund has changed the underlying high yield index from Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped. Return and principal of stocks and bonds will vary with market conditions. Treasury bills such as the 90 day T-Bill 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. The Barclays Capital U.S. Aggregate Bond Fund Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one-year. The 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 is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada. The Russell 1000® Growth Index measures the performance of those Russell companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of those Russell companies with lower price-to-book and lower forecasted growth values. The Russell 2500™ Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE Index is a market capitalization-weighted equity index comprising 21 of the 48 countries in the MSCI universe and representing the developed world outside of North America. 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. |
|
|
7 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
|
HSBC Investor Conservative Growth Strategy Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Performance |
|
|
|
|
| Average Annual |
| Expense |
| |||||||||||||
As of April 30, 2009 |
| Inception |
| Six |
| 1 |
| 3 |
| Since |
| Gross |
| Net |
| |||||||
HSBC Investor Conservative Growth Strategy Fund Class A1 |
|
| 2/23/05 |
|
| -4.37 |
|
| -23.32 |
|
| -5.38 |
|
| -1.54 |
|
| 1.72 |
|
| 1.50 |
|
HSBC Investor Conservative Growth Strategy Fund Class B2 |
|
| 2/17/05 |
|
| -3.63 |
|
| -22.96 |
|
| -5.01 |
|
| -1.13 |
|
| 2.47 |
|
| 2.25 |
|
HSBC Investor Conservative Growth Strategy Fund Class C3 |
|
| 4/19/05 |
|
| -0.65 |
|
| -20.66 |
|
| -4.25 |
|
| -0.54 |
|
| 2.47 |
|
| 2.25 |
|
Standard & Poor’s 500 Index |
|
| — |
|
| -8.52 |
|
| -35.29 |
|
| -10.76 |
|
| N/A |
|
| N/A |
|
| N/A |
|
Conservative Growth Blended Portfolio Index5 |
|
| — |
|
| 1.33 |
|
| -16.73 |
|
| -2.25 |
|
| 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, 2009 through March 1, 2010.
During the periods October 31, 2007, October 31, 2008 and April 30, 2009 one or more Underlying Funds the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for the applicable periods would be lower.
|
|
† | Aggregate total return. |
|
|
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 27, 2009. |
|
|
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 90-Day T-Bill (21%); Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped (8%); Barclays Capital U.S. Aggregate Bond Fund Index (25%); Barclays Capital 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. Due to the liquidation of the HSBC Investor High Yield Fixed Income Fund on March 31, 2009, the LifeLine Fund changed the underlying high yield index from Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped. Return and principal of stocks and bonds will vary with market conditions. Treasury bills such as the 90 day T-Bill 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. The Barclays Capital U.S. Corp. High Yield Bond Index, 2% Capped is a, market value-weighted index which covers the universe of fixed rate, non-investment grade debt. The 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 is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada. The Barclays Capital U.S. Aggregate Bond Fund Index is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one-year. The Barclays Capital U.S. Intermediate Aggregate Index is generally representative of investment-grade debt issues with maturities between three- and ten-years. The Russell 1000® Growth Index measures the performance of those Russell companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000® Value Index measures the performance of those Russell companies with lower price-to-book and lower forecasted growth values. The Russell 2500™ Growth Index measures the performance of those Russell 2500™ companies with higher price-to-book ratios and higher forecasted growth values. The MSCI EAFE Index is a market capitalization-weighted equity index comprising 21 of the 48 countries in the MSCI universe and representing the developed world outside of North America. 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. |
|
|
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 |
|
| 1.01 |
|
Barclays Capital U.S. Corporate High Yield Bond Index, 2% Capped |
|
| -12.55 |
|
Barclays Capital U.S. Aggregate Bond Index |
|
| 3.84 |
|
Barclays Capital U.S. Intermediate Aggregate Index |
|
| 4.30 |
|
MSCI EAFE Index |
|
| -42.42 |
|
Russell 1000® Growth Index |
|
| -31.57 |
|
Russell 1000® Value Index |
|
| -39.21 |
|
Russell 2500™ Growth Index |
|
| -32.98 |
|
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is is an unmanged index of three-month Treasury bills.
Barclays Capital U.S. Aggregate Bond Index (formerly 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.
Barclays Capital U.S. Corporate High Yield Bond Index, 2% Capped is an unmanaged market value-weighted index which covers the universe of fixed rate, non-investment grade debt.
Barclays Capital U.S. Intermediate Aggregate Bond Index (formerly 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.
|
|
9 | HSBC INVESTOR FAMILY OF FUNDS |
This page is intentionally left blank.
|
HSBC INVESTOR LIFELINE FUNDS |
|
Statements of Assets and Liabilities—As of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in Affiliated Portfolios |
| $ | 7,811,022 |
| $ | 22,818,944 |
| $ | 24,122,701 |
| $ | 6,806,581 |
|
Investments in Affiliated Fund, at value (a) |
|
| 76,439 |
|
| 233,314 |
|
| 1,596,039 |
|
| 1,974,567 |
|
Investments in non-affiliates, at value (b) |
|
| — |
|
| 468,632 |
|
| 1,355,220 |
|
| 769,262 |
|
|
|
|
|
|
| ||||||||
Total Investments |
|
| 7,887,461 |
|
| 23,520,890 |
|
| 27,073,960 |
|
| 9,550,410 |
|
|
|
|
|
|
| ||||||||
Receivable for capital shares issued |
|
| 4,176 |
|
| 10,047 |
|
| 35,383 |
|
| 95 |
|
Reclaims receivable |
|
| 3,681 |
|
| 12,418 |
|
| 9,990 |
|
| 490 |
|
Receivable from Investment Adviser |
|
| 4,529 |
|
| 1,032 |
|
| 1,071 |
|
| 1,116 |
|
Prepaid expenses and other assets |
|
| 6,612 |
|
| 4,799 |
|
| 10,217 |
|
| 2,298 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 7,906,459 |
|
| 23,549,186 |
|
| 27,130,621 |
|
| 9,554,409 |
|
|
|
|
|
|
| ||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for capital shares redeemed |
|
| 3,384 |
|
| — |
|
| 71,889 |
|
| 15,844 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 312 |
|
| 931 |
|
| 3,054 |
|
| 380 |
|
Administration |
|
| 139 |
|
| 416 |
|
| 478 |
|
| 169 |
|
Distribution |
|
| 2,020 |
|
| 6,237 |
|
| 7,875 |
|
| 2,861 |
|
Shareholder Servicing |
|
| 1,561 |
|
| 4,654 |
|
| 5,356 |
|
| 1,901 |
|
Compliance Service |
|
| 3 |
|
| 8 |
|
| 9 |
|
| 3 |
|
Transfer Agent |
|
| 13,042 |
|
| 23,285 |
|
| 25,332 |
|
| 10,129 |
|
Other |
|
| 7,403 |
|
| 23,923 |
|
| 26,349 |
|
| 7,604 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 27,864 |
|
| 59,454 |
|
| 140,342 |
|
| 38,891 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 7,878,595 |
| $ | 23,489,732 |
| $ | 26,990,279 |
| $ | 9,515,518 |
|
|
|
|
|
|
| ||||||||
Composition of Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
| $ | 11,759,082 |
| $ | 33,404,481 |
| $ | 36,359,295 |
| $ | 12,006,842 |
|
Accumulated net investment income (loss) |
|
| (3,941 | ) |
| 56,605 |
|
| 43,259 |
|
| 14,487 |
|
Accumulated net realized gains (losses) from investment |
|
| (2,183,492 | ) |
| (5,377,319 | ) |
| (5,159,539 | ) |
| (1,468,365 | ) |
Unrealized appreciation/depreciation from investments |
|
| (1,693,054 | ) |
| (4,594,035 | ) |
| (4,252,736 | ) |
| (1,037,446 | ) |
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 7,878,595 |
| $ | 23,489,732 |
| $ | 26,990,279 |
| $ | 9,515,518 |
|
|
|
|
|
|
| ||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 4,456,128 |
| $ | 12,971,261 |
| $ | 13,771,462 |
| $ | 4,729,511 |
|
Class B Shares |
|
| 3,109,156 |
|
| 9,259,502 |
|
| 11,919,950 |
|
| 4,340,680 |
|
Class C Shares |
|
| 313,311 |
|
| 1,258,969 |
|
| 1,298,867 |
|
| 445,327 |
|
|
|
|
|
|
| ||||||||
|
| $ | 7,878,595 |
| $ | 23,489,732 |
| $ | 26,990,279 |
| $ | 9,515,518 |
|
|
|
|
|
|
| ||||||||
Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.001 par value, unlimited number of shares authorized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 533,636 |
|
| 1,511,726 |
|
| 1,598,228 |
|
| 535,316 |
|
Class B Shares |
|
| 383,897 |
|
| 1,077,676 |
|
| 1,383,318 |
|
| 496,059 |
|
Class C Shares |
|
| 38,707 |
|
| 145,985 |
|
| 154,412 |
|
| 49,532 |
|
Net Asset Value, Offering Price and Redemption Price per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 8.35 |
| $ | 8.58 |
| $ | 8.62 |
| $ | 8.83 |
|
Class B Shares* |
| $ | 8.10 |
| $ | 8.59 |
| $ | 8.62 |
| $ | 8.75 |
|
Class C Shares* |
| $ | 8.09 |
| $ | 8.62 |
| $ | 8.41 |
| $ | 8.99 |
|
Maximum Sales Charge — Class A Shares |
|
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
|
|
|
|
|
| ||||||||
Maximum Offering Price per share (Net Asset Value/ |
| $ | 8.79 |
| $ | 9.03 |
| $ | 9.07 |
| $ | 9.29 |
|
|
|
|
|
|
| ||||||||
Investments in Affiliated Fund, at cost (a) |
| $ | 76,439 |
| $ | 233,314 |
| $ | 1,596,039 |
| $ | 1,974,567 |
|
|
|
|
|
|
| ||||||||
Investments in non-affiliates, at cost (b) |
| $ | — |
| $ | 431,683 |
| $ | 1,248,925 |
| $ | 708,853 |
|
|
|
|
|
|
|
|
|
* | 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 Prime 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. |
| |
(b) | The investment in the non-affiliated fund are holdings of the Goldman Sachs High Yield Fund Class I Shares (see Note 1). |
|
|
|
11 | HSBC INVESTOR LIFELINE FUNDS | See notes to financial statements. |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Statements of Operations—For the six months ended April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income from Affiliated Portfolios (a) |
| $ | 65,193 |
| $ | 295,474 |
| $ | 413,224 |
| $ | 141,568 |
|
Investment Income from Affiliated Fund |
|
| 403 |
|
| 1,250 |
|
| 8,753 |
|
| 10,638 |
|
Investment Income from non-affiliates |
|
| — |
|
| 3,628 |
|
| 10,418 |
|
| 5,963 |
|
Tax reclaims (a) |
|
| 731 |
|
| 2,256 |
|
| 2,031 |
|
| 251 |
|
Foreign tax withholding from Affiliated Portfolios (a) |
|
| (4,847 | ) |
| (12,668 | ) |
| (10,959 | ) |
| (2,570 | ) |
Expenses from Affiliated Portfolios (a) |
|
| (29,278 | ) |
| (87,168 | ) |
| (94,895 | ) |
| (28,420 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income (Loss) |
|
| 32,202 |
|
| 202,772 |
|
| 328,572 |
|
| 127,430 |
|
|
|
|
|
|
| ||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 1,791 |
|
| 5,503 |
|
| 6,368 |
|
| 2,225 |
|
Administration |
|
| 736 |
|
| 2,259 |
|
| 2,611 |
|
| 910 |
|
Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares |
|
| 10,497 |
|
| 32,019 |
|
| 42,147 |
|
| 15,009 |
|
Class C Shares |
|
| 1,067 |
|
| 4,006 |
|
| 4,658 |
|
| 1,533 |
|
Shareholder Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 5,060 |
|
| 15,399 |
|
| 16,119 |
|
| 5,568 |
|
Class B Shares |
|
| 3,509 |
|
| 10,700 |
|
| 14,082 |
|
| 5,009 |
|
Class C Shares |
|
| 358 |
|
| 1,337 |
|
| 1,558 |
|
| 512 |
|
Accounting |
|
| 10,348 |
|
| 10,348 |
|
| 10,348 |
|
| 10,348 |
|
Compliance Service |
|
| 4 |
|
| 16 |
|
| 16 |
|
| 8 |
|
Printing |
|
| 3,931 |
|
| 11,697 |
|
| 14,447 |
|
| 6,139 |
|
Professional fees |
|
| 56 |
|
| 345 |
|
| 357 |
|
| 90 |
|
Transfer Agent |
|
| 26,716 |
|
| 41,890 |
|
| 43,223 |
|
| 21,522 |
|
Trustee |
|
| 17 |
|
| 167 |
|
| 175 |
|
| 21 |
|
Registration fees |
|
| 3,720 |
|
| 3,548 |
|
| 4,906 |
|
| 2,444 |
|
Other |
|
| 805 |
|
| 2,477 |
|
| 2,796 |
|
| 819 |
|
|
|
|
|
|
| ||||||||
Total expenses before fee reductions |
|
| 68,615 |
|
| 141,711 |
|
| 163,811 |
|
| 72,157 |
|
Fees reduced by Investment Adviser |
|
| (32,472 | ) |
| (27,462 | ) |
| (20,487 | ) |
| (17,160 | ) |
|
|
|
|
|
| ||||||||
Net Expenses |
|
| 36,143 |
|
| 114,249 |
|
| 143,324 |
|
| 54,997 |
|
|
|
|
|
|
| ||||||||
Net Investment Income (Loss) |
|
| (3,941 | ) |
| 88,523 |
|
| 185,248 |
|
| 72,433 |
|
|
|
|
|
|
| ||||||||
Net Realized/Unrealized Gains (Losses) from Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investments and foreign currency |
|
| (1,221,396 | ) |
| (3,139,249 | ) |
| (3,101,710 | ) |
| (909,408 | ) |
Net realized gains (losses) from non-affiliates investment transactions |
|
| — |
|
| (1 | ) |
| — |
|
| — |
|
Change in unrealized appreciation/depreciation from Affiliated |
|
| 961,309 |
|
| 2,518,310 |
|
| 2,621,369 |
|
| 828,250 |
|
Change in unrealized appreciation/depreciation from non-affiliates investments |
|
| — |
|
| 36,949 |
|
| 106,295 |
|
| 60,409 |
|
|
|
|
|
|
| ||||||||
Net realized/unrealized gains (losses) from investments |
|
| (260,087 | ) |
| (583,991 | ) |
| (374,046 | ) |
| (20,749 | ) |
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | (264,028 | ) | $ | (495,468 | ) | $ | (188,798 | ) | $ | 51,684 |
|
|
|
|
|
|
|
|
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 12 |
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) |
| $ | (3,941 | ) | $ | (23,552 | ) | $ | 88,523 |
| $ | 225,539 |
|
Net realized gains (losses) from |
|
| (1,221,396 | ) |
| (1,008,442 | ) |
| (3,139,250 | ) |
| (2,323,453 | ) |
Change in unrealized appreciation/ |
|
| 961,309 |
|
| (4,611,582 | ) |
| 2,555,259 |
|
| (12,045,449 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (264,028 | ) |
| (5,643,576 | ) |
| (495,468 | ) |
| (14,143,363 | ) |
|
|
|
|
|
| ||||||||
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| — |
|
| (139,549 | ) |
| (137,880 | ) |
Class B Shares |
|
| — |
|
| — |
|
| (7,901 | ) |
| (1,259 | ) |
Class C Shares |
|
| — |
|
| — |
|
| (1,544 | ) |
| (816 | ) |
Net realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| (420,292 | ) |
| — |
|
| (1,103,525 | ) |
Class B Shares |
|
| — |
|
| (302,904 | ) |
| — |
|
| (702,526 | ) |
Class C Shares |
|
| — |
|
| (31,294 | ) |
| — |
|
| (63,975 | ) |
Return of Capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| (1,758 | ) |
| — |
|
| — |
|
Class B Shares |
|
| — |
|
| (1,250 | ) |
| — |
|
| — |
|
Class C Shares |
|
| — |
|
| (126 | ) |
| — |
|
| — |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| — |
|
| (757,624 | ) |
| (148,994 | ) |
| (2,009,981 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital |
|
| 85,385 |
|
| 1,942,878 |
|
| (226,871 | ) |
| 3,984,572 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (178,643 | ) |
| (4,458,322 | ) |
| (871,333 | ) |
| (12,168,772 | ) |
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 8,057,238 |
|
| 12,515,560 |
|
| 24,361,065 |
|
| 36,529,837 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 7,878,595 |
| $ | 8,057,238 |
| $ | 23,489,732 |
| $ | 24,361,065 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | (3,941 | ) | $ | — |
| $ | 56,605 |
| $ | 117,076 |
|
|
|
|
|
|
|
|
|
|
13 | 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 |
| $ | 481,954 |
| $ | 1,808,587 |
| $ | 657,446 |
| $ | 4,094,924 |
|
Dividends reinvested |
|
| — |
|
| 421,632 |
|
| 138,893 |
|
| 1,235,211 |
|
Value of shares redeemed |
|
| (456,772 | ) |
| (1,135,189 | ) |
| (1,291,849 | ) |
| (3,486,779 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 25,182 |
|
| 1,095,030 |
|
| (495,510 | ) |
| 1,843,356 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 207,473 |
|
| 1,075,628 |
|
| 480,537 |
|
| 2,700,023 |
|
Dividends reinvested |
|
| — |
|
| 303,827 |
|
| 7,888 |
|
| 701,613 |
|
Value of shares redeemed |
|
| (151,794 | ) |
| (597,445 | ) |
| (539,800 | ) |
| (1,552,870 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 55,679 |
|
| 782,010 |
|
| (51,375 | ) |
| 1,848,766 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 16,071 |
|
| 160,943 |
|
| 360,300 |
|
| 471,136 |
|
Dividends reinvested |
|
| — |
|
| 31,420 |
|
| 1,543 |
|
| 64,791 |
|
Value of shares redeemed |
|
| (11,547 | ) |
| (126,525 | ) |
| (41,829 | ) |
| (243,477 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 4,524 |
|
| 65,838 |
|
| 320,014 |
|
| 292,450 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital |
| $ | 85,385 |
| $ | 1,942,878 |
| $ | (226,871 | ) | $ | 3,984,572 |
|
|
|
|
|
|
| ||||||||
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 62,722 |
|
| 140,000 |
|
| 80,817 |
|
| 323,501 |
|
Reinvested |
|
| — |
|
| 30,686 |
|
| 17,211 |
|
| 93,719 |
|
Redeemed |
|
| (59,468 | ) |
| (93,561 | ) |
| (165,777 | ) |
| (287,477 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 3,254 |
|
| 77,125 |
|
| (67,749 | ) |
| 129,743 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 27,313 |
|
| 84,358 |
|
| 58,546 |
|
| 218,579 |
|
Reinvested |
|
| — |
|
| 22,556 |
|
| 973 |
|
| 53,152 |
|
Redeemed |
|
| (20,650 | ) |
| (53,351 | ) |
| (67,870 | ) |
| (133,643 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 6,663 |
|
| 53,563 |
|
| (8,351 | ) |
| 138,088 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 2,146 |
|
| 12,747 |
|
| 44,398 |
|
| 37,995 |
|
Reinvested |
|
| — |
|
| 2,334 |
|
| 190 |
|
| 4,890 |
|
Redeemed |
|
| (1,530 | ) |
| (11,560 | ) |
| (5,056 | ) |
| (22,815 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 616 |
|
| 3,521 |
|
| 39,532 |
|
| 20,070 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 14 |
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) |
| $ | 185,248 |
| $ | 510,248 |
| $ | 72,433 |
| $ | 224,175 |
|
Net realized gains (losses) from investment transactions |
|
| (3,101,710 | ) |
| (2,119,789 | ) |
| (909,408 | ) |
| (572,415 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 2,727,664 |
|
| (11,008,540 | ) |
| 888,659 |
|
| (2,729,503 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| (188,798 | ) |
| (12,618,081 | ) |
| 51,684 |
|
| (3,077,743 | ) |
|
|
|
|
|
| ||||||||
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (94,741 | ) |
| (306,761 | ) |
| (36,910 | ) |
| (141,579 | ) |
Class B Shares |
|
| (42,598 | ) |
| (139,765 | ) |
| (19,154 | ) |
| (79,044 | ) |
Class C Shares |
|
| (4,650 | ) |
| (16,616 | ) |
| (1,882 | ) |
| (7,481 | ) |
Net realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| (772,146 | ) |
| — |
|
| (146,067 | ) |
Class B Shares |
|
| — |
|
| (634,501 | ) |
| — |
|
| (110,864 | ) |
Class C Shares |
|
| — |
|
| (74,952 | ) |
| — |
|
| (9,305 | ) |
Return of capital: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| (20,619 | ) |
| — |
|
| (262 | ) |
Class B Shares |
|
| — |
|
| (17,902 | ) |
| — |
|
| (242 | ) |
Class C Shares |
|
| — |
|
| (2,090 | ) |
| — |
|
| (23 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (141,989 | ) |
| (1,985,352 | ) |
| (57,946 | ) |
| (494,867 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (666,408 | ) |
| 4,171,062 |
|
| (3,282 | ) |
| 1,063,369 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (997,195 | ) |
| (10,432,371 | ) |
| (9,544 | ) |
| (2,509,241 | ) |
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 27,987,474 |
|
| 38,419,845 |
|
| 9,525,062 |
|
| 12,034,303 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 26,990,279 |
| $ | 27,987,474 |
| $ | 9,515,518 |
| $ | 9,525,062 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | 43,259 |
| $ | — |
| $ | 14,487 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
15 | 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 |
| $ | 766,081 |
| $ | 4,477,845 |
| $ | 469,617 |
| $ | 1,702,567 |
|
Dividends reinvested |
|
| 94,601 |
|
| 1,096,649 |
|
| 35,845 |
|
| 277,201 |
|
Value of shares redeemed |
|
| (1,159,530 | ) |
| (3,953,091 | ) |
| (517,920 | ) |
| (2,025,309 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| (298,848 | ) |
| 1,621,403 |
|
| (12,458 | ) |
| (45,541 | ) |
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 729,145 |
|
| 3,948,083 |
|
| 424,827 |
|
| 1,595,118 |
|
Dividends reinvested |
|
| 42,488 |
|
| 790,250 |
|
| 18,530 |
|
| 183,107 |
|
Value of shares redeemed |
|
| (1,060,081 | ) |
| (2,551,316 | ) |
| (449,442 | ) |
| (813,124 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| (288,448 | ) |
| 2,187,017 |
|
| (6,085 | ) |
| 965,101 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 118,766 |
|
| 778,453 |
|
| 26,638 |
|
| 203,099 |
|
Dividends reinvested |
|
| 4,606 |
|
| 93,634 |
|
| 1,882 |
|
| 16,809 |
|
Value of shares redeemed |
|
| (202,484 | ) |
| (509,445 | ) |
| (13,259 | ) |
| (76,099 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| (79,112 | ) |
| 362,642 |
|
| 15,261 |
|
| 143,809 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
| $ | (666,408 | ) | $ | 4,171,062 |
| $ | (3,282 | ) | $ | 1,063,369 |
|
|
|
|
|
|
| ||||||||
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 93,599 |
|
| 382,474 |
|
| 55,977 |
|
| 157,831 |
|
Reinvested |
|
| 11,660 |
|
| 91,761 |
|
| 4,250 |
|
| 25,060 |
|
Redeemed |
|
| (143,643 | ) |
| (355,687 | ) |
| (61,829 | ) |
| (199,713 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| (38,384 | ) |
| 118,548 |
|
| (1,602 | ) |
| (16,822 | ) |
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 89,072 |
|
| 340,238 |
|
| 50,973 |
|
| 148,878 |
|
Reinvested |
|
| 5,229 |
|
| 65,629 |
|
| 2,218 |
|
| 16,609 |
|
Redeemed |
|
| (131,980 | ) |
| (229,160 | ) |
| (53,518 | ) |
| (81,932 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| (37,679 | ) |
| 176,707 |
|
| (327 | ) |
| 83,555 |
|
|
|
|
|
|
| ||||||||
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 14,545 |
|
| 68,169 |
|
| 3,050 |
|
| 18,026 |
|
Reinvested |
|
| 581 |
|
| 7,964 |
|
| 219 |
|
| 1,489 |
|
Redeemed |
|
| (26,601 | ) |
| (46,372 | ) |
| (1,535 | ) |
| (7,369 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| (11,475 | ) |
| 29,761 |
|
| 1,734 |
|
| 12,146 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 16 |
|
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 (i) |
| $ | 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 |
|
| — | *(h) |
| 2.98 |
|
| 2.98 |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.55 |
|
| 0.02 | * |
| (6.05 | ) |
| (6.03 | ) |
| (0.90 | ) |
| (0.90 | ) |
Six Months Ended April 30, 2009 |
|
| 8.62 |
|
| 0.01 | * |
| (0.28 | ) |
| (0.27 | ) |
| — |
|
| — |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
| $ | 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 |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.27 |
|
| (0.08 | )* |
| (5.90 | ) |
| (5.98 | ) |
| (0.90 | ) |
| (0.90 | ) |
Six Months Ended April 30, 2009 |
|
| 8.39 |
|
| (0.02 | )* |
| (0.27 | ) |
| (0.29 | ) |
| — |
|
| — |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.26 |
|
| (0.08 | )* |
| (5.89 | ) |
| (5.97 | ) |
| (0.90 | ) |
| (0.90 | ) |
Six Months Ended April 30, 2009 |
|
| 8.39 |
|
| (0.02 | )* |
| (0.28 | ) |
| (0.30 | ) |
| — |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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) |
| $ | 10.60 |
|
| 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 | % |
Year Ended October 31, 2008 |
|
| 8.62 |
|
| (40.92 | )%(f) |
| 4,572 |
|
| 1.50 | % |
| 0.13 | % |
| 1.98 | % |
| 72.33 | % |
Six Months Ended April 30, 2009 |
|
| 8.35 |
|
| (3.13 | )%(g) |
| 4,456 |
|
| 1.50 | % |
| 0.22 | % |
| 2.41 | % |
| 26.44 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.39 |
|
| (41.36 | )%(f) |
| 3,166 |
|
| 2.25 | % |
| (0.62 | )% |
| 2.73 | % |
| 72.33 | % |
Six Months Ended April 30, 2009 |
|
| 8.10 |
|
| (3.46 | )%(g) |
| 3,109 |
|
| 2.25 | % |
| (0.54 | )% |
| 3.15 | % |
| 26.44 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.39 |
|
| (41.32 | )%(f) |
| 319 |
|
| 2.25 | % |
| (0.64 | )% |
| 2.73 | % |
| 72.33 | % |
Six Months Ended April 30, 2009 |
|
| 8.09 |
|
| (3.58 | )%(g) |
| 313 |
|
| 2.25 | % |
| (0.54 | )% |
| 3.15 | % |
| 26.44 | % |
|
|
* | 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) | During the year ended October 31, 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 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(g) | During the period ended April 30, 2009, 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. |
|
|
(h) | Rounds to less than $0.01. |
|
|
(i) | Class A Shares commenced operations on February 14, 2005. |
|
|
(j) | Class B Shares commenced operations on February 9, 2005. |
|
|
(k) | Class C Shares commenced operations on June 9, 2005. |
|
|
|
17 | 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 | ) |
Year Ended October 31, 2008 |
|
| 14.73 |
|
| 0.12 | * |
| (5.21 | ) |
| (5.09 | ) |
| (0.09 | ) |
| (0.74 | ) |
| (0.83 | ) |
Six Months Ended April 30, 2009 |
|
| 8.81 |
|
| 0.05 | * |
| (0.19 | ) |
| (0.14 | ) |
| (0.09 | ) |
| — |
|
| (0.09 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 14.67 |
|
| 0.03 | * |
| (5.20 | ) |
| (5.17 | ) |
| — | (l) |
| (0.74 | ) |
| (0.74 | ) |
Six Months Ended April 30, 2009 |
|
| 8.76 |
|
| 0.02 | * |
| (0.18 | ) |
| (0.16 | ) |
| (0.01 | ) |
| — |
|
| (0.01 | ) |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 14.74 |
|
| 0.03 | * |
| (5.22 | ) |
| (5.19 | ) |
| (0.01 | ) |
| (0.74 | ) |
| (0.75 | ) |
Six Months Ended April 30, 2009 |
|
| 8.80 |
|
| 0.02 | * |
| (0.19 | ) |
| (0.17 | ) |
| (0.01 | ) |
| — |
|
| (0.01 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 | % |
Year Ended October 31, 2008 |
|
| 8.81 |
|
| (36.43 | )%(h) |
| 13,908 |
|
| 1.50 | % |
| 0.98 | % |
| 1.53 | % |
| 78.59 | % |
Six Months Ended April 30, 2009 |
|
| 8.58 |
|
| (1.54 | )%(i) |
| 12,971 |
|
| 1.50 | % |
| 1.13 | % |
| 1.75 | % |
| 24.25 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.76 |
|
| (36.95 | )%(h) |
| 9,516 |
|
| 2.25 | % |
| 0.24 | % |
| 2.28 | % |
| 78.59 | % |
Six Months Ended April 30, 2009 |
|
| 8.59 |
|
| (1.85 | )%(i) |
| 9,260 |
|
| 2.25 | % |
| 0.39 | % |
| 2.50 | % |
| 24.25 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.80 |
|
| (36.94 | )%(h) |
| 937 |
|
| 2.25 | % |
| 0.25 | % |
| 2.29 | % |
| 78.59 | % |
Six Months Ended April 30, 2009 |
|
| 8.62 |
|
| (1.88 | )%(i) |
| 1,259 |
|
| 2.25 | % |
| 0.39 | % |
| 2.49 | % |
| 24.25 | % |
* |
|
* | 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 year ended October 31, 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 0.15%, 0.15% and 0.15% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the period ended April 30, 2009, 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 April 27, 2005. |
|
|
(l) | Rounds to less than $0.01. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 18 |
|
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 |
| Return of |
| 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 | ) |
Year Ended October 31, 2008 |
|
| 13.27 |
|
| 0.20 | * |
| (4.08 | ) |
| (3.88 | ) |
| (0.19 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.70 | ) |
Six Months Ended April 30, 2009 |
|
| 8.69 |
|
| 0.07 | * |
| (0.08 | ) |
| (0.01 | ) |
| (0.06 | ) |
| — |
|
| — |
|
| (0.06 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 13.27 |
|
| 0.11 | * |
| (4.08 | ) |
| (3.97 | ) |
| (0.10 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.61 | ) |
Six Months Ended April 30, 2009 |
|
| 8.69 |
|
| 0.04 | * |
| (0.08 | ) |
| (0.04 | ) |
| (0.03 | ) |
| — |
|
| — |
|
| (0.03 | ) |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (l) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 12.97 |
|
| 0.11 | * |
| (3.97 | ) |
| (3.86 | ) |
| (0.11 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.62 | ) |
Six Months Ended April 30, 2009 |
|
| 8.49 |
|
| 0.04 | * |
| (0.09 | ) |
| (0.05 | ) |
| (0.03 | ) |
| — |
|
| — |
|
| (0.03 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 | % |
Year Ended October 31, 2008 |
|
| 8.69 |
|
| (30.65 | )%(i) |
| 14,226 |
|
| 1.48 | % |
| 1.75 | % |
| 1.48 | % |
| 79.86 | % |
Six Months Ended April 30, 2009 |
|
| 8.62 |
|
| (0.08 | )%(j) |
| 13,771 |
|
| 1.50 | % |
| 1.82 | % |
| 1.66 | % |
| 21.19 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.69 |
|
| (31.17 | )%(i) |
| 12,354 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Six Months Ended April 30, 2009 |
|
| 8.62 |
|
| (0.43 | )%(j) |
| 11,920 |
|
| 2.25 | % |
| 1.07 | % |
| 2.41 | % |
| 21.19 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (l) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.49 |
|
| (31.09 | )%(i) |
| 1,408 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Six Months Ended April 30, 2009 |
|
| 8.41 |
|
| (0.56 | )%(j) |
| 1,299 |
|
| 2.25 | % |
| 1.07 | % |
| 2.41 | % |
| 21.19 | % |
|
|
* | 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 year ended October 31, 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 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | During the period ended April 30, 2009, 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 0.09%, 0.09% and 0.09% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(k) | Class B Shares commenced operations on February 1, 2005. |
|
|
(l) | Class C Shares commenced operations on June 9, 2005. |
|
|
|
19 | 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
| Investment Activities |
| Dividends |
| ||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Total |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (j) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 12.04 |
|
| 0.24 | * |
| (2.93 | ) |
| (2.69 | ) |
| (0.25 | ) |
| (0.26 | ) |
| (0.51 | ) |
Six Months Ended April 30, 2009 |
|
| 8.84 |
|
| 0.08 | * |
| (0.02 | ) |
| 0.06 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 11.94 |
|
| 0.16 | * |
| (2.91 | ) |
| (2.75 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
Six Months Ended April 30, 2009 |
|
| 8.76 |
|
| 0.05 | * |
| (0.02 | ) |
| 0.03 |
|
| (0.04 | ) |
| — |
|
| (0.04 | ) |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (l) |
| $ | 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 | ) |
Year Ended October 31, 2008 |
|
| 12.25 |
|
| 0.16 | * |
| (2.98 | ) |
| (2.82 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
Six Months Ended April 30, 2009 |
|
| 9.00 |
|
| 0.05 | * |
| (0.02 | ) |
| 0.03 |
|
| (0.04 | ) |
| — |
|
| (0.04 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 (j) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.84 |
|
| (23.17 | )%(h) |
| 4,747 |
|
| 1.50 | % |
| 2.24 | % |
| 1.72 | % |
| 68.74 | % |
Six Months Ended April 30, 2009 |
|
| 8.83 |
|
| 0.71 | %(i) |
| 4,730 |
|
| 1.50 | % |
| 2.00 | % |
| 1.89 | % |
| 21.30 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (k) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 8.76 |
|
| (23.76 | )%(h) |
| 4,348 |
|
| 2.25 | % |
| 1.48 | % |
| 2.48 | % |
| 68.74 | % |
Six Months Ended April 30, 2009 |
|
| 8.75 |
|
| 0.36 | %(i) |
| 4,341 |
|
| 2.25 | % |
| 1.25 | % |
| 2.63 | % |
| 21.30 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005 (l) |
| $ | 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 | % |
Year Ended October 31, 2008 |
|
| 9.00 |
|
| (23.73 | )%(h) |
| 430 |
|
| 2.25 | % |
| 1.46 | % |
| 2.48 | % |
| 68.74 | % |
Six Months Ended April 30, 2009 |
|
| 8.99 |
|
| 0.35 | %(i) |
| 445 |
|
| 2.25 | % |
| 1.25 | % |
| 2.64 | % |
| 21.30 | % |
|
|
* | 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 year ended October 31, 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 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the period ended April 30, 2009, 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 0.07%, 0.07% and 0.07% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | Class A Shares commenced operations on February 23, 2005. |
|
|
(k) | Class B Shares commenced operations on February 17, 2005. |
|
|
(l) | Class C Shares commenced operations on April 19, 2005. |
|
|
|
See notes to financial statements. | HSBC INVESTOR LIFELINE FUNDS | 20 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (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, 2009, the Trust is comprised of 18 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 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 are fund of funds that invest in other funds in the HSBC Investor Family of Funds as well as mutual funds that are not affiliated with the HSBC Investor Family of Funds (collectively the “Underlying Funds”). The LifeLine Funds currently invest in the HSBC Investor Core Plus 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”) which are each diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements, in addition to receiving investments from the LifeLine Funds. Prior to February 9, 2009, the applicable LifeLine Funds invested in the HSBC Investor High Yield Fixed Income Portfolio for any LifeLine Fund that had an allocation to High Yield Fixed Income. |
|
|
| The LifeLine Funds also invest in the HSBC Investor Prime Money Market Fund (the “Prime Money Market Fund”) which is an open-end management investment company that is a diversified series of the Trust. In addition, effective February 9, 2009, the applicable LifeLine Funds began investing in the Goldman Sachs High Yield Fund, Class I, as a replacement to the HSBC Investor High Yield Fixed Income Portfolio. The Goldman Sachs High Yield Fund is also an open-end management investment company within the Goldman Sachs 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 portfolio weightings and summary of Underlying Funds are as follows: |
|
|
| LifeLine Funds Portfolio Weightings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Class of Underlying Funds |
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
|
|
|
|
| |||||||||
Large Cap Growth |
|
| 21 | % |
| 21 | % |
| 19 | % |
| 15 | % |
Large Cap Value |
|
| 21 | % |
| 21 | % |
| 18 | % |
| 14 | % |
Small-cap |
|
| 34 | % |
| 20 | % |
| 11 | % |
| 4 | % |
International Equity |
|
| 23 | % |
| 20 | % |
| 15 | % |
| 10 | % |
Fixed Income |
|
| None |
|
| 15 | % |
| 26 | % |
| 28 | % |
High Yield Fixed Income |
|
| None |
|
| 2 | % |
| 5 | % |
| 8 | % |
Money Market |
|
| 1 | % |
| 1 | % |
| 6 | % |
| 21 | % |
|
|
|
|
|
| ||||||||
Total |
|
| 100 | % |
| 100 | % |
| 100 | % |
| 100 | % |
|
|
|
|
|
|
|
|
21 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
LifeLine Funds Portfolio Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying Funds |
| Aggressive |
| Growth |
| Moderate |
| Conservative |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
| $ | — |
| $ | 3,455,630 |
| $ | 6,928,570 |
| $ | 2,363,599 |
|
Intermediate Duration Fixed Income Portfolio |
|
| — |
|
| — |
|
| — |
|
| 283,513 |
|
Growth Portfolio |
|
| 1,649,493 |
|
| 4,941,303 |
|
| 5,171,458 |
|
| 1,448,495 |
|
International Equity Portfolio |
|
| 1,833,899 |
|
| 4,777,137 |
|
| 4,144,451 |
|
| 980,264 |
|
Opportunity Portfolio |
|
| 2,690,843 |
|
| 4,741,644 |
|
| 3,016,686 |
|
| 389,192 |
|
Value Portfolio |
|
| 1,636,787 |
|
| 4,903,230 |
|
| 4,861,536 |
|
| 1,341,518 |
|
Prime Money Market Fund |
|
| 76,439 |
|
| 233,314 |
|
| 1,596,039 |
|
| 1,974,567 |
|
Goldman Sachs High Yield Fund, Class I |
|
| — |
|
| 468,632 |
|
| 1,355,220 |
|
| 769,262 |
|
|
|
|
|
|
| ||||||||
Total |
| $ | 7,887,461 |
| $ | 23,520,890 |
| $ | 27,073,960 |
| $ | 9,550,410 |
|
|
|
|
|
|
|
|
|
| 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 three classes of shares: Class A Shares, Class B Shares and Class C Shares. Class A Shares of the LifeLine Funds 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. 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 Trust enters 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 Trust expects 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: |
|
|
| Effective November 1, 2008, the Trust adopted Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” There was no impact to the Funds net assets or results of operations upon adoption. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. |
|
|
| The LifeLine Funds record their investments in the Portfolios at fair value. The LifeLine Funds record their investments in the Prime Money Market Fund and Goldman Sachs High Yield Fund at the net asset value reported by the funds. The underlying securities of the Underlying Funds are recorded at fair value and at amortized cost, respectively, as more fully discussed in the notes to those financial statements. |
|
|
HSBC INVESTOR LIFELINE FUNDS | 22 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
|
|
| 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 Prime Money Market Fund and Goldman Sachs High Yield Fund. Changes in holdings of the Prime Money Market Fund and Goldman Sachs High Yield 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 Prime Money Market Fund are reflected as of trade date. In addition, the LifeLine Funds accrue their own expenses daily as incurred. |
|
|
| Allocations: |
|
|
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all funds within the HSBC Investor Family of Funds in relation to the net assets of each fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
|
|
| Dividends to Shareholders: |
|
|
| Dividends 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 ended October 31, 2008 and period ended April 30, 2009, the following LifeLine Funds collected redemption fees as follows: |
|
|
|
|
|
|
|
|
Fund |
| October 31, 2008 |
| April 30, 2009 |
| ||
|
|
| |||||
Aggressive Growth Fund |
| $ | 119 |
| $ | 38 |
|
Growth Strategy Fund |
|
| 1,152 |
|
| 190 |
|
Moderate Growth Fund |
|
| 187 |
|
| 246 |
|
Conservative Growth Fund |
|
| 2,849 |
|
| 63 |
|
|
|
| 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, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“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 |
|
|
23 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
|
|
|
| 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. The FIN 48 analysis included a review of tax positions taken in tax years that remain subject to examination by tax authorities in all major tax jurisdictions, including federal (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). FIN 48 did not impact the Funds’ net assets or results of operation during the period. | |
|
| |
| New Accounting Pronouncements: | |
|
| |
| In March 2008, the Financial Accounting Standards Board (“FASB”) issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 will be effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Funds’ derivative and hedging activities, including how such activities are accounted for and their effect on the Funds’ financial position, performance and cash flows. Management is currently evaluating the impact the adoption of SFAS 161 will have on the Funds’ financial statements and related disclosures. | |
|
| |
| In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157, when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Funds’ financial statement disclosures. | |
|
| |
3. | Investment Valuation Summary | |
|
| |
| The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below: |
|
|
|
|
|
| • | Level 1: quoted prices in active markets for identical assets |
|
|
|
|
|
| • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
|
|
|
|
|
| • | Level 3: significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
|
|
|
| The inputs or methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments. For example, short-term debt securities of sufficient credit quality maturing in sixty days or less are generally valued at amortized cost, which approximates fair value. Generally, amortized cost approximates the current fair value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2. | |
|
| |
| The following is a summary of the valuation as of April 30, 2009 for each Fund based upon the three levels defined above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 - Quoted Prices |
| LEVEL 2 - Other Significant |
| ||||||||
|
|
|
| ||||||||||
Fund Name |
| Investment |
| Other Financial |
| Investment |
| Other Financial |
| ||||
|
|
|
|
| |||||||||
Aggressive Growth Strategy Fund |
| $ | 76,439 |
| $ | — |
| $ | 7,811,022 |
| $ | — |
|
Growth Strategy Fund |
|
| 701,946 |
|
| — |
|
| 22,818,944 |
|
| — |
|
Moderate Growth Strategy Fund |
|
| 2,951,259 |
|
| — |
|
| 24,122,701 |
|
| — |
|
Conservative Growth Strategy Fund |
|
| 2,743,829 |
|
| — |
|
| 6,806,581 |
|
| — |
|
|
|
HSBC INVESTOR LIFELINE FUNDS | 24 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 3 - Significant |
| Total |
| ||||||||
|
|
|
| ||||||||||
Fund Name |
| Investment |
| Other Financial |
| Investment |
| Other Financial |
| ||||
|
|
|
|
| |||||||||
Aggressive Growth Strategy Fund |
| $ | — |
| $ | — |
| $ | 7,887,461 |
| $ | — |
|
Growth Strategy Fund |
|
| — |
|
| — |
|
| 23,520,890 |
|
| — |
|
Moderate Growth Strategy Fund |
|
| — |
|
| — |
|
| 27,073,960 |
|
| — |
|
Conservative Growth Strategy Fund |
|
| — |
|
| — |
|
| 9,550,410 |
|
| — |
|
|
|
* | Other financial instruments would include any derivative instruments, such as any futures, forwards, and swap agreements. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. |
|
|
4. | Related Party Transactions: |
|
|
| Investment Management: |
|
|
| HSBC Global Asset Management (USA) Inc. (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the 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. The Investment Adviser is waiving all of the fee for each of the Funds’. 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. |
|
|
| Administration: |
|
|
| HSBC serves the LifeLine Funds as Administrator. Under the terms of the Administration Agreement, HSBC received from the Lifeline Funds (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, during the period November 1, 2008 to December 31, 2008, 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 | % |
|
|
| Effective January 1, 2009, under the terms of the Administration Agreement, HSBC receives from the LifeLine Funds (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| |
|
| |||
Up to $10 billion |
|
| 0.0550 | % |
In excess of $10 billion but not exceeding $20 billion |
|
| 0.0350 | % |
In excess of $20 billion but not exceeding $50 billion |
|
| 0.0275 | % |
In excess of $50 billion |
|
| 0.0250 | % |
|
|
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in Underlying Portfolios by 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. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios in master-feeder structures. |
|
|
25 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
|
|
| 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 |
| $ | 417 |
| $ | 1,268 |
| $ | 1,326 |
| $ | 457 |
|
Class B |
|
| 289 |
|
| 881 |
|
| 1,157 |
|
| 411 |
|
Class C |
|
| 30 |
|
| 110 |
|
| 128 |
|
| 42 |
|
|
|
|
|
|
| ||||||||
Total |
| $ | 736 |
| $ | 2,259 |
| $ | 2,611 |
| $ | 910 |
|
|
|
|
|
|
|
|
|
| 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 Trust’s and other HSBC Investor Funds (collectively, the “Trusts”) Sub-Administrator subject to the general supervision of the Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Funds’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the 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 $133,049 for the period ended April 30, 2009, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio. |
|
|
| Distribution Plan: |
|
|
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, 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 $106,503, $76,505 and $5,366 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $40, $6, and $0 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% and 0.25% that is computed daily and paid monthly equal to a percentage of average daily net assets of Class A Shares, Class B Shares and Class C 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 the Trusts. As Transfer Agent, Citi Ohio receives a fee based on the number of funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As Fund Accountant, Citi Ohio receives an annual fee per Fund and share class, subject to minimums and reimbursement of certain expenses. |
|
|
| Each of the non-interested Trustees is compensated with a $60,000 annual Board retainer for services as a Trustee of the Trusts, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. Each non-interested Trustee |
|
|
HSBC INVESTOR LIFELINE FUNDS | 26 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
|
|
| 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. |
|
|
| Fee Reductions: |
|
|
| The Investment Adviser has agreed to contractually limit through March 1, 2010 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 its 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. |
|
|
5. | Investment Transactions: |
|
|
| Aggregate contributions and withdrawals of the Underlying Portfolios by the Funds for the period ended April 30, 2009 totaled: |
|
|
|
|
|
|
|
|
|
|
|
| Contributions |
| Withdrawals |
| ||
|
|
|
|
| ||||
| Aggressive Growth Fund |
| $ | 708,145 |
| $ | 659,805 |
|
| Growth Strategy Fund |
|
| 1,382,057 |
|
| 2,315,480 |
|
| Moderate Growth Fund |
|
| 1,400,639 |
|
| 3,608,831 |
|
| Conservative Growth Fund |
|
| 789,148 |
|
| 1,581,990 |
|
|
|
6. | Federal Tax Information: |
|
|
| The tax characteristics of dividends paid by the LifeLine Funds during the latest tax year ended as of October 31, 2008 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid from |
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
| Ordinary |
| Net Long |
| Total |
| Return of |
| Total |
| |||||
|
|
|
|
|
|
|
| ||||||||||
| Aggressive Growth Fund |
| $ | 87,226 |
| $ | 667,264 |
| $ | 754,490 |
| $ | 3,134 |
| $ | 757,624 |
|
| Growth Strategy Fund |
|
| 434,489 |
|
| 1,575,492 |
|
| 2,009,981 |
|
| — |
|
| 2,009,981 |
|
| Moderate Growth Fund |
|
| 686,794 |
|
| 1,257,947 |
|
| 1,944,741 |
|
| 40,611 |
|
| 1,985,352 |
|
| Conservative Growth Fund |
|
| 265,882 |
|
| 228,458 |
|
| 494,340 |
|
| 527 |
|
| 494,867 |
|
|
|
|
| ||
| * | 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. |
|
|
|
| As of the latest tax year end October 31, 2008, the components of accumulated earnings/(deficit) on a tax basis for the Lifeline Funds were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Undistributed |
| Accumulated |
| Dividends |
| Accumulated |
| Unrealized |
| Total |
| |||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Aggressive Growth Fund |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | (911,837 | ) | $ | (2,704,622 | ) | $ | (3,616,459 | ) |
| Growth Strategy Fund |
|
| 117,076 |
|
| — |
|
| 117,076 |
|
| — |
|
| (2,102,770 | ) |
| (7,284,593 | ) |
| (9,270,287 | ) |
| Moderate Growth Fund |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (1,920,789 | ) |
| (7,117,440 | ) |
| (9,038,229 | ) |
| Conservative Growth Fund |
|
| — |
|
| — |
|
| — |
|
| — |
|
| (522,075 | ) |
| (1,962,987 | ) |
| (2,485,062 | ) |
|
|
|
| ||
| ** | 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. |
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27 | HSBC INVESTOR LIFELINE FUNDS |
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HSBC INVESTOR LIFELINE FUNDS |
|
Notes to Financial Statements—As of April 30, 2009 (Unaudited) (continued) |
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|
| As of the latest tax year ended of October 31, 2008, the following Funds have net capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders. |
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|
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|
|
|
|
| Amount |
| Expires |
| ||
|
|
|
|
| ||||
| Aggressive Growth Fund |
| $ | 911,837 |
|
| 2016 |
|
| Growth Strategy Fund |
|
| 2,102,771 |
|
| 2016 |
|
| Moderate Growth Fund |
|
| 1,920,789 |
|
| 2016 |
|
| Conservative Growth Fund |
|
| 522,075 |
|
| 2016 |
|
|
|
| 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, 2009. |
|
|
7. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provides various services to the LifeLine Funds as described in footnote 3, 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 LifeLine Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the LifeLine Funds’ management is currently unable to determine the impact, if any, of such matters on the Portfolios or the LifeLine Funds’ financial statements, management does not anticipate a material, adverse impact to the LifeLine Funds or the LifeLine Funds’ financial statements. |
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|
HSBC INVESTOR LIFELINE FUNDS | 28 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Investment Adviser Contract Approval—April 30, 2009 (Unaudited) |
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|
|
| The Board of Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees (“Independent Trustees”), voting separately, approved the renewal, for a year, of the Investment Advisory Agreements and, where applicable Sub-Advisory Agreements (other than the Sub-Advisory Agreement with Halbis Capital Management (USA) Inc. (“Halbis”)), with respect to the respective series of the Trusts then existing (“Funds”) at an in-person meeting held on December 8, 2008. At that meeting, as well as at the regular meeting of the Board held on March 30, 2009, the Independent Trustees also reviewed and approved short-term extensions to the Sub-Advisory Agreement between the HSBC Global Asset Management (USA) Inc. (“Adviser”) and Halbis with respect to the HSBC Investor Core Plus Fixed Income Fund, HSBC Investor High Yield Fixed Income Fund, HSBC Investor Intermediate Duration Fixed Income Fund, and the HSBC Investor New York-Tax Free Bond Fund (the “Fixed Income Funds”) (the Investment Advisory Agreements and Sub-Advisory Agreements are collectively referred to as the “Agreements”). | |
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|
|
| In determining whether it was appropriate to approve the Agreements for the Funds, the Independent Trustees requested information from the Adviser and the various subadvisers that they believed to be reasonably necessary to reach their 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 their 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 enabled the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees, along with the entire Board of Trustees, made these determinations on the basis of the following considerations, among others: | |
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|
|
|
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the subadvisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Trustees considered the commitment of the Adviser to the successful operations of the Funds. The Trustees considered the historical performance of the Funds and the level of expenses of the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain Funds. The Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, the Independent Trustees also considered the Adviser’s and Halbis’ plans for the Fixed Income Funds. The Trustees also considered the extent to which the Adviser and investment Sub-Advisers had achieved economies of scale and the extent to which shareholders benefited from those economies of scale. |
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|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The 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 Trustees took note of performance information for one, three and five year periods and since inception as relevant. In addition, the 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. |
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|
|
| Costs of Services and Profits Realized by the Adviser. The 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 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 Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ 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 Funds, and the comparability of the advisory fee to similar fees paid by comparable mutual funds. |
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|
|
| 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 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 Trustees considered the overall favorable investment performance of the Funds. |
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|
|
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meetings), approved the Agreements. |
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|
29 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Table of Shareholders Expenses (Unaudited)—As of April 30, 2009 |
|
|
| 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, 2008 through April 30, 2009. |
|
|
| 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. |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
| Aggressive Growth |
| Class A Shares |
| $ | 1,000.00 |
| $ | 968.70 |
| $ | 7.32 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 965.40 |
|
| 10.96 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 964.20 |
|
| 10.96 |
|
| 2.25 | % |
| Growth Strategy Fund |
| Class A Shares |
|
| 1,000.00 |
|
| 984.60 |
|
| 7.38 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 981.50 |
|
| 11.05 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 981.20 |
|
| 11.05 |
|
| 2.25 | % |
| Moderate Growth |
| Class A Shares |
|
| 1,000.00 |
|
| 999.20 |
|
| 7.44 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 995.70 |
|
| 11.13 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 994.40 |
|
| 11.13 |
|
| 2.25 | % |
| Conservative Growth |
| Class A Shares |
|
| 1,000.00 |
|
| 1,007.10 |
|
| 7.46 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 1,003.60 |
|
| 11.18 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 1,003.50 |
|
| 11.18 |
|
| 2.25 | % |
|
|
|
| ||
| * | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
HSBC INVESTOR LIFELINE FUNDS | 30 |
|
HSBC INVESTOR LIFELINE FUNDS |
|
Table of Shareholders Expenses (Unaudited)—As of April 30, 2009 (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. |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
| Aggressive Growth |
| Class A Shares |
| $ | 1,000.00 |
| $ | 1,017.36 |
| $ | 7.50 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
| Growth Strategy Fund |
| Class A Shares |
|
| 1,000.00 |
|
| 1,017.36 |
|
| 7.50 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
| Moderate Growth |
| Class A Shares |
|
| 1,000.00 |
|
| 1,017.36 |
|
| 7.50 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
| Conservative Growth |
| Class A Shares |
|
| 1,000.00 |
|
| 1,017.36 |
|
| 7.50 |
|
| 1.50 | % |
|
|
| Class B Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
|
|
| Class C Shares |
|
| 1,000.00 |
|
| 1,013.64 |
|
| 11.23 |
|
| 2.25 | % |
|
|
|
| ||
| * | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
31 | HSBC INVESTOR LIFELINE FUNDS |
|
HSBC Investor Core Plus Fixed Income Portfolio
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team
The HSBC Investor Core Plus Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Portfolio consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Portfolio employs Halbis Capital Management (USA) Inc. as subadviser.
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 and a lower rate of return than longer-term bonds.
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Market Commentary
The fixed-income markets experienced several distinct environments during the six-month period. The worsening global recession fueled a flight to quality in November as investors sought out the most conservative and secure fixed-income investments—in particular Treasury securities, followed by a significant rally in December. The market came under heavy pressure in February, followed by a strong rally in March and April. As the financial crisis began to recede, demand rose for higher-risk fixed-income securities such as corporate and government agency issues.
The Portfolio held a relatively heavy weighting in corporate and other non-Treasury bonds. We saw opportunities among such bonds, which we believed were not properly valued in the early part of the period. That focus on corporate bonds and other non-Treasury securities initially weighed on relative performance, but boosted returns against the benchmark as investors became less risk-averse during the second half of the period. The Portfolio maintained a high credit rating throughout the period, though it did have a modest exposure to securities rated below investment grade.*
We maintained an average maturity that was neutral to that of the benchmark. We focused the portfolio largely on intermediate-term securities, which in our estimation offered the most compelling values among corporate issues.*,1
|
|
* | Portfolio composition is subject to change. |
|
|
1 | The current management team took over management of the Fund on February 1, 2009. |
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 PORTFOLIOS | 32 |
|
Portfolio Reviews |
HSBC Investor Intermediate Duration Fixed Income Portfolio
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team
The HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Portfolio consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. Under normal market conditions, the Portfolio invest at least 80% of its net assets in fixed income securities. The Portfolio expects to maintain an average portfolio duration with respect to fixed income securities of 3 to 6 years. The Portfolio employs Halbis Capital Management (USA) Inc. as subadviser.
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 and a lower rate of return than longer-term bonds.
The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.
Market Commentary
The fixed-income markets were turbulent to begin the period as the global economic recession continued to worsen. Seeking safety, investors in the fixed-income market favored high-quality securities such as Treasuries. A year-end rally was followed by a significant decline in credit markets in February. A more sustained rally began in March. As the period continued, the financial crisis diminished and investors began seeking higher-risk fixed-income securities such as corporate and government agency issues.
We positioned the Portfolio with a heavy exposure to corporate and other non-Treasury bonds, as such, securities offered strong yields compared to Treasuries. That strategy dragged on relative performance early in the period, but boosted Portfolio returns against the benchmarks as demand for higher-risk securities increased later in the period. Issues with high credit ratings made up the bulk of the portfolio throughout the period, though it did have a modest exposure to securities rated below investment grade.
The Portfolio’s average maturity was positioned close to that of its benchmark, and its portfolio was focused largely on intermediate-term securities. We believed such securities offered the most compelling values among corporate issues.*, 1
|
|
* | Portfolio composition is subject to change. |
|
|
1 | The current management team took over management of the Fund on February 1, 2009. |
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.
|
|
33 | HSBC INVESTOR PORTFOLIOS |
|
Portfolio Reviews |
HSBC Investor Growth Portfolio
by Clark J. Winslow, Chief Executive Officer/Portfolio Manager
Justin H. Kelly, CFA, Managing Director/Portfolio Manager
R. Bart Wear CFA, Managing Director/Portfolio Manager
The HSBC Investor Growth Portfolio (the “Portfolio”) seeks long-term growth of capital. Under normal market conditions, the Portfolio invests primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the subadviser believes have the potential to generate superior levels of long-term profitability and growth. The Portfolio employs Winslow Capital Management Inc. as subadviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
The market experienced a great deal of volatility during the period under review. Stocks fell in November on fears about the health of the financial sector. The market then rebounded on optimism the new administration would take swift action to address the country’s economic and financial problems. But stocks slumped in February after the U.S. Treasury Department announced a financial rescue plan with few details. By early March the Russell 1000® Growth Index’ had declined 18% for the year.
Then some signs of economic recovery began to appear: Consumer sentiment improved; some major banks indicated earnings would be better than expected; and the U.S. Treasury Department provided details on key parts of its financial rescue plan. Stocks rallied strongly, ending the period with the best six-week performance since 1938.
Stock selection in the technology and financials sectors helped the Portfolio outperform its benchmark. Shares of two Internet stocks led performance in the Portfolio’s technology allocation, while stocks of major credit card companies boosted the returns of the Portfolio’s financials stake. An overweight position in the financials sector also contributed to outperformance. The Portfolio’s healthcare and industrials holdings helped relative performance as well. They produced negative returns, in aggregate, but outperformed the respective sectors in the benchmark.*
An underweight position in consumer discretionary stocks held back performance relative to the index. Stock selection within this sector also weighed on relative returns. The Portfolio’s smaller-than-benchmark stake in energy stocks likewise weighed on relative performance.*
|
|
* | 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 PORTFOLIOS | 34 |
|
Portfolio Reviews |
HSBC Investor International Equity Portfolio
by Kevin F. Simms
Co-CIO International Value Equities and Director of Research – Global and International Value Equities
AllianceBernstein Investment Research and Management
The HSBC Investor International Equity Portfolio (the “Portfolio”) seeks to provide its shareholders with long-term growth of capital and future income. Under normal market conditions, the Portfolio invests at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. 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.
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 Portfolio will fluctuate as the value of the securities in the portfolio changes.
Market Commentary
Investors’ fears about the length and severity of the global economic recession, as well as the extent of the trouble in the global banking system, dominated financial markets from the beginning of the period through late February. This period of sustained weakness contributed to the Portfolio’s negative performance. In the latter portion of the period under review, investors believed that both the global economy and the global financial system had stabilized, and financial markets worldwide largely recovered from their prior underperformance. International stocks generally followed this trend.
The Portfolio’s overweight position in energy shares boosted performance relative to its benchmark index, as did stock selection within the sector. Stock selection among financial firms also boosted relative performance. By the period’s end, investors began to discriminate between those financial firms that had a great deal of exposure to significant credit losses and those that did not. The Portfolio’s holdings among the latter group contributed positively to relative performance.*
The Portfolio’s overweight position in telecommunications shares hurt relative performance. As investors’ appetite for risk increased at the end of the period, defensive sectors including telecom underperformed. Stock selection in industrial commodities also dragged on relative performance, as the Portfolio’s limited exposure to metals and mining firms benefiting from renewed economic growth in China, relative to that of the benchmark, hurt 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.
|
|
35 | HSBC INVESTOR PORTFOLIOS |
|
Portfolio Reviews |
HSBC Investor Opportunity Portfolio
by William A. Muggia
President–Chief Investment Officer
Westfield Capital Management, LLC
The HSBC Investor Opportunity Portfolio (the “Portfolio”) seeks to provide its shareholders with long-term growth of capital by investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index1. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Portfolio employs Westfield Capital Management Company, LLC as subadviser.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Portfolio 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
The six-month period was punctuated by both periods of negative performance and periods of positive performance. Early in the period, the global recession significantly weighed down stock market performance. However, early signs of an economic recovery began to show toward the end of the period, fueling a broad and relatively strong rally among stocks that continued through April 30.
The Portfolio’s relative return benefited from a larger-than-benchmark position in the technology sector. Investors sought out higher-risk investments such as technology stocks as the economy improved toward the end of the period, resulting in relatively strong net gains for such stocks during the six months through April. Selection among technology stocks also helped the Portfolio’s performance relative to its benchmark.
The Portfolio also benefited in relative terms from its positioning in the energy sector. The subadviser identified a number of attractive investments in energy sub-sectors such as oil exploration and production, and those holdings helped boost relative performance.*
Stock selection within the financial sector was the largest drag on the Portfolio’s relative performance during the period. The subadviser focused much of the Portfolio’s investments among regional banks. Though shares of such firms rebounded late in the period, the Portfolio’s allocation to shares of regional banks early in the period hurt relative performance. The Portfolio’s relative performance also suffered from holding a smaller position than its benchmark in the consumer discretionary sector, which was the top-performing sector during the period. Selection of certain media stocks and shares of education services firms also negatively affected relative performance.*
|
|
1 | For additional information, please refer to the Glossary of Terms. |
|
|
* | 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 PORTFOLIOS | 36 |
|
Portfolio Reviews |
HSBC Investor Value Portfolio
by Jon D. Bosse, CFA
Chief Investment Officer
NWQ Investment Management Company, LLC
The HSBC Investor Value Portfolio (the “Portfolio”) seeks long-term growth of capital and income. Under normal market conditions, the Portfolio invests primarily in U.S. and foreign companies with large and medium capitalizations that the subadviser believes possess opportunities underappreciated or misperceived by the market. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as subadviser.
Investment Concerns
Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Portfolio will fluctuate as the value of the securities in the Portfolio changes.
Market Commentary
The largest contributors to the Portfolio’s absolute and relative return were stocks of two gold companies. The shares benefited from a rise in gold prices as well as from improved business fundamentals, particularly for one South Africa-based company. The Portfolio’s overweight technology position was a positive contributor to both absolute and relative performance, as technology stocks appreciated from their very depressed levels experienced at the beginning of the period. The sub-advisor early in the period sold shares of a large forest products company and purchased stock of a fertilizer firm; those trades also boosted returns.
An underweight position in financial services versus the Russell 1000® Value Index1 helped the Portfolio’s relative performance. Some of the Portfolio’s holdings in the sector performed quite poorly, however. In particular, the Portfolio’s worst performing stock during the period was a money center bank. Concerns about the health of the U.S. and global financial system—and how the system’s problems would affect companies—adversely affected valuations in the sector.
The Portfolio’s positions in the consumer discretionary, consumer staples and healthcare sectors hurt its performance during the period. Continued economic weakness weighed heavily on these sectors. Uncertainty about the size and scope of the government’s future role in the U.S. healthcare system had a particularly large effect on healthcare stocks during this period.*
|
|
1 | For additional information, please refer to the Glossary of Terms. |
|
|
* | 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.
|
|
37 | HSBC INVESTOR PORTFOLIOS |
|
Portfolio Reviews |
|
April 30, 2009
(Unaudited)
|
|
|
HSBC Investor Core Plus Fixed Income Portfolio | ||
|
| |
Investment Allocation | Percentage of Investments at Value | |
U.S. Government and Government | 36.5% |
|
Corporate Obligations | 29.6% |
|
Asset Backed Securities | 12.2% |
|
Cash and Equivalents | 8.2% |
|
Commercial Mortgage Backed | 6.7% |
|
Collateralized Mortgage Obligations | 4.6% |
|
Municipal Bonds | 1.7% |
|
Foreign Bonds | 0.4% |
|
Certificates of Deposit | 0.1% |
|
Total | 100.0% |
|
|
| |
HSBC Investor Intermediate Duration | ||
|
| |
Investment Allocation | Percentage of Investments at Value | |
U.S. Government and Government | 39.6% |
|
Corporate Obligations | 23.8% |
|
Cash and Equivalents | 18.9% |
|
Asset Backed Securities | 8.8% |
|
Commercial Mortgage Backed | 4.4% |
|
Collateralized Mortgage Obligations | 3.7% |
|
Certificates of Deposit | 0.5% |
|
Foreign Bonds | 0.3% |
|
Total | 100.0% |
|
|
|
|
HSBC Investor Growth Portfolio | ||
|
| |
Investment Allocation | Percentage of Investments at Value | |
Software Services | 10.4% |
|
Telecommunications | 7.5% |
|
Industrial Conglomerates | 7.0% |
|
Investment Management | 6.4% |
|
Medical Products | 6.0% |
|
Credit Card | 5.6% |
|
Communication Equipment | 5.6% |
|
Hardware & Peripherals | 5.3% |
|
Retail | 5.1% |
|
Internet | 4.5% |
|
Medical Services & Distributors | 4.4% |
|
Biotechnology | 3.8% |
|
Travel & Leisure | 3.2% |
|
Business Services | 3.1% |
|
Agriculture | 3.0% |
|
Oil & Gas Exploration & Production | 3.0% |
|
Railroad | 3.0% |
|
Pharmaceuticals | 2.5% |
|
Aerospace & Defense | 2.4% |
|
Retail Pharmacy | 2.0% |
|
Distribution & Wholesale | 1.8% |
|
Transportation | 1.6% |
|
Exchanges | 1.3% |
|
Oil & Gas Drill & Equipment | 1.2% |
|
Cash and Equivalents | 0.3% |
|
Total | 100.0% |
|
|
| |
HSBC International Equity Portfolio | ||
| ||
Investment Allocation | Percentage of Investments at Value | |
Europe | 65.8% |
|
Japan | 17.5% |
|
Australia & Far East | 8.7% |
|
Canada | 5.4% |
|
Other | 1.7% |
|
Cash and Equivalents | 0.9% |
|
Total | 100.0% |
|
|
|
* | Portfolio composition is subject to change. |
|
|
HSBC INVESTOR PORTFOLIOS | 38 |
|
Portfolio Reviews |
|
April 30, 2009
(Unaudited)
|
|
|
HSBC Investor Opportunity Portfolio | ||
|
| |
Investment Allocation | Percentage of Investments at Value | |
Computer Software | 16.3% |
|
Oil & Gas | 11.8% |
|
Pharmaceuticals | 10.7% |
|
Retail | 6.9% |
|
Health Care | 6.5% |
|
Industrial Manufacturing | 6.0% |
|
Biotechnology | 5.8% |
|
Diversified Manufacturing Operations | 5.1% |
|
Financial Services | 4.5% |
|
Consumer Products | 4.4% |
|
Telecommunications | 3.9% |
|
Business Services | 3.1% |
|
Electronic Components & | 3.0% |
|
Cash and Equivalents | 2.6% |
|
Education | 1.7% |
|
Environmental Services | 1.5% |
|
Aerospace & Defense | 1.4% |
|
Internet Related | 1.4% |
|
Insurance | 1.3% |
|
Gaming | 1.1% |
|
Communications | 1.0% |
|
Total | 100.0% |
|
|
|
|
HSBC Investor Value Portfolio | ||
|
| |
Investment Allocation | Percentage of Investments at Value | |
Oil & Gas | 14.3% |
|
Computer Software | 8.6% |
|
Insurance | 8.0% |
|
Metals & Mining | 8.0% |
|
Telecommunications | 8.0% |
|
Pharmaceuticals | 7.6% |
|
Media | 6.5% |
|
Aerospace & Defense | 5.8% |
|
Consumer Products | 4.2% |
|
Tobacco | 3.9% |
|
Business Services | 3.7% |
|
Financial Services | 3.4% |
|
Conglomerates | 3.0% |
|
Energy | 2.8% |
|
Cash and Equivalents | 2.6% |
|
Electronic Components & | 2.5% |
|
Banking | 2.4% |
|
Transportation | 2.1% |
|
Diversified Manufacturing Operations | 1.5% |
|
Agricultural Chemicals | 1.1% |
|
Total | 100.0% |
|
|
|
* | Portfolio composition is subject to change. |
|
|
39 | HSBC INVESTOR PORTFOLIOS |
This page is intentionally left blank.
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited)
|
Certificates of Deposit—0.2% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Banking – 0.2% |
|
|
|
|
|
|
|
First Tennessee Bank, 1.46%, 12/17/09 (a) |
|
| 100,000 |
|
| 99,507 |
|
|
|
|
|
|
| ||
TOTAL CERTIFICATES OF DEPOSIT |
|
|
|
|
| 99,507 |
|
|
|
|
|
|
|
|
U.S. Government and Government Agency Obligations—49.3% |
|
|
|
|
|
|
|
|
Federal Home Loan Mortgage Corp. – 5.3% |
|
|
|
|
|
|
|
Pool #1B2655, 4.96%, 12/1/34 (a)(h) |
|
| 382,161 |
|
| 391,497 |
|
Pool #1J1313, 6.34%, 6/1/36 (a) |
|
| 983,117 |
|
| 1,014,181 |
|
Pool #847557, 4.41%, 7/1/34 (a)(h) |
|
| 541,992 |
|
| 549,783 |
|
Pool #C00368, 8.50%, 10/1/24 |
|
| 23,119 |
|
| 25,355 |
|
Pool #C00922, 8.00%, 2/1/30 |
|
| 138,704 |
|
| 152,195 |
|
Pool #C54447, 7.00%, 7/1/31 |
|
| 25,275 |
|
| 27,111 |
|
Pool #C60712, 6.50%, 11/1/31 |
|
| 439,261 |
|
| 470,497 |
|
Pool #C80387, 6.50%, 4/1/26 |
|
| 21,248 |
|
| 22,799 |
|
Pool #D62926, 6.50%, 8/1/25 |
|
| 18,636 |
|
| 19,979 |
|
Pool #G01317, 7.00%, 10/1/31 |
|
| 103,172 |
|
| 110,666 |
|
Pool #G02981, 6.00%, 6/1/37 |
|
| 884,805 |
|
| 924,569 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,708,632 |
|
|
|
|
|
|
| ||
Federal National Mortgage Association – 39.3% |
|
|
|
|
|
|
|
Pool #253438, 8.50%, 9/1/30 |
|
| 27,567 |
|
| 30,159 |
|
Pool #256723, 6.50%, 5/1/37 |
|
| 885,426 |
|
| 939,346 |
|
Pool #329530, 7.00%, 12/1/25 |
|
| 45,795 |
|
| 49,666 |
|
Pool #329655, 7.00%, 11/1/25 |
|
| 7,011 |
|
| 7,604 |
|
Pool #356905, 5.13%, 10/1/36 (a) |
|
| 138,656 |
|
| 141,245 |
|
Pool #398958, 6.50%, 10/1/12 |
|
| 16,626 |
|
| 17,579 |
|
Pool #535332, 8.50%, 4/1/30 |
|
| 32,053 |
|
| 35,048 |
|
Pool #535440, 8.50%, 8/1/30 |
|
| 36,405 |
|
| 39,827 |
|
Pool #548965, 8.50%, 7/1/30 |
|
| 35,223 |
|
| 38,534 |
|
Pool #568486, 7.00%, 1/1/31 |
|
| 37,580 |
|
| 40,558 |
|
Pool #573752, 8.50%, 2/1/31 |
|
| 26,969 |
|
| 29,504 |
|
Pool #575328, 6.50%, 4/1/31 |
|
| 47,454 |
|
| 50,903 |
|
Pool #922090, 5.91%, 3/1/37 (a) |
|
| 1,107,779 |
|
| 1,159,723 |
|
TBA May, 5.50%, 5/12/39 |
|
| 13,655,000 |
|
| 14,145,733 |
|
TBA June |
|
|
|
|
|
|
|
5.50%, 6/18/16 |
|
| 5,750,000 |
|
| 5,972,812 |
|
5.00%, 6/11/39 |
|
| 4,500,000 |
|
| 4,615,313 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 27,313,554 |
|
|
|
|
|
|
| ||
Government National Mortgage Association – 0.3% |
|
|
|
|
|
|
|
Pool #346406, 7.50%, 2/15/23 |
|
| 39,834 |
|
| 43,084 |
|
Pool #412530, 7.50%, 12/15/25 |
|
| 61,981 |
|
| 66,930 |
|
Pool #781300, 7.00%, 6/15/31 |
|
| 101,933 |
|
| 109,545 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 219,559 |
|
|
|
|
|
|
| ||
U.S. Treasury Bonds – 3.3% |
|
|
|
|
|
|
|
5.00%, 5/15/37 |
|
| 1,685,000 |
|
| 1,945,122 |
|
4.50%, 5/15/38 |
|
| 300,000 |
|
| 322,828 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,267,950 |
|
|
|
|
|
|
| ||
U.S. Treasury Notes – 1.1% |
|
|
|
|
|
|
|
4.00%, 8/15/18 |
|
| 715,000 |
|
| 767,061 |
|
|
|
|
|
|
| ||
TOTAL U.S. GOVERNMENT AND |
|
|
|
|
| 34,276,756 |
|
|
|
|
|
|
|
|
Corporate Obligations—39.8% |
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Agricultural Chemicals – 1.6% |
|
|
|
|
|
|
|
Agrium, Inc., 6.75%, 1/15/19 |
|
| 600,000 |
|
| 546,066 |
|
Cargill, Inc., 5.60%, 9/15/12 (b) |
|
| 600,000 |
|
| 594,287 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,140,353 |
|
|
|
|
|
|
| ||
Banking – 0.9% |
|
|
|
|
|
|
|
American Express Centurion Bank, |
|
| 700,000 |
|
| 599,626 |
|
|
|
|
|
|
| ||
Building & Construction Products – 1.6% |
|
|
|
|
|
|
|
Martin Marietta Materials, Inc., |
|
| 600,000 |
|
| 573,450 |
|
Masco Corp., 1.63%, 3/12/10 (a)(h) |
|
| 550,000 |
|
| 524,300 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,097,750 |
|
|
|
|
|
|
| ||
Cable Television – 0.9% |
|
|
|
|
|
|
|
Time Warner Cable, Inc., 7.30%, 7/1/38 |
|
| 625,000 |
|
| 624,762 |
|
|
|
|
|
|
| ||
Computer Services – 1.1% |
|
|
|
|
|
|
|
Electronic Data Systems, Series B, |
|
| 700,000 |
|
| 748,689 |
|
|
|
|
|
|
| ||
Consumer Products – 1.4% |
|
|
|
|
|
|
|
Clorox Co. (The), 5.45%, 10/15/12 |
|
| 900,000 |
|
| 942,021 |
|
|
|
|
|
|
| ||
Electric – 5.2% |
|
|
|
|
|
|
|
Commonwealth Edison Co., |
|
| 700,000 |
|
| 624,840 |
|
Dominion Resources, Inc., 6.40%, 6/15/18 |
|
| 250,000 |
|
| 258,266 |
|
Duke Energy Corp., 5.65%, 6/15/13 |
|
| 450,000 |
|
| 462,555 |
|
MidAmerican Energy Co., 5.95%, 7/15/17 |
|
| 1,900,000 |
|
| 1,965,236 |
|
Puget Sound Energy, Inc., 6.97%, 6/1/67, |
|
| 600,000 |
|
| 313,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,624,397 |
|
|
|
|
|
|
| ||
Finance – 9.7% |
|
|
|
|
|
|
|
American Honda Finance Corp., |
|
| 250,000 |
|
| 223,445 |
|
Bear Stearns Co., Inc., 4.50%, 10/28/10 |
|
| 600,000 |
|
| 605,533 |
|
Bear Stearns Co., Inc., Series B, |
|
| 950,000 |
|
| 1,000,171 |
|
Citigroup, Inc., 6.50%, 8/19/13 |
|
| 225,000 |
|
| 205,336 |
|
Countrywide Home Loans, Series L, |
|
| 1,150,000 |
|
| 1,078,238 |
|
Ford Motor Credit Co., LLC, |
|
| 750,000 |
|
| 675,033 |
|
General Electric Capital Corp., |
|
| 400,000 |
|
| 348,974 |
|
Lehman Brothers Holdings, Series I, |
|
| 500,000 |
|
| 74,375 |
|
Morgan Stanley, Series F, |
|
| 565,000 |
|
| 533,707 |
|
Preferred Term Securities Ltd., 8.79%, |
|
| 741,202 |
|
| 392,837 |
|
Wells Fargo Financial, 5.50%, 8/1/12 |
|
| 850,000 |
|
| 846,303 |
|
XTRA Finance Corp., 5.15%, 4/1/17 |
|
| 750,000 |
|
| 727,693 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,711,645 |
|
|
|
|
|
|
| ||
Forestry/Paper – 0.3% |
|
|
|
|
|
|
|
Georgia-Pacific Corp., 7.70%, 6/15/15 |
|
| 250,000 |
|
| 235,000 |
|
|
|
|
|
|
|
|
|
|
41 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Health Services – 0.2% |
|
|
|
|
|
|
|
Community Health Systems, Inc., 8.88%, |
|
| 175,000 |
|
| 174,125 |
|
|
|
|
|
|
| ||
Hospitals – 1.7% |
|
|
|
|
|
|
|
Covidien International Finance SA, |
|
| 550,000 |
|
| 570,908 |
|
HCA, Inc., 5.75%, 3/15/14 |
|
| 750,000 |
|
| 592,500 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,163,408 |
|
|
|
|
|
|
| ||
Media – 1.0% |
|
|
|
|
|
|
|
News America Holdings, 7.90%, 12/1/95 |
|
| 500,000 |
|
| 392,997 |
|
Vivendi, 5.75%, 4/4/13 (b) |
|
| 350,000 |
|
| 335,324 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 728,321 |
|
|
|
|
|
|
| ||
Media - Cable – 0.2% |
|
|
|
|
|
|
|
Cablevision Systems Corp., Series B, |
|
| 175,000 |
|
| 174,125 |
|
|
|
|
|
|
| ||
Office Equipment & Services – 0.8% |
|
|
|
|
|
|
|
Xerox Corp., 2.06%, 12/18/09 (a)(h) |
|
| 550,000 |
|
| 536,810 |
|
|
|
|
|
|
| ||
Oil & Gas – 0.2% |
|
|
|
|
|
|
|
Pioneer Natural Resources Co., |
|
| 175,000 |
|
| 145,048 |
|
|
|
|
|
|
| ||
Pipelines – 0.8% |
|
|
|
|
|
|
|
Dynegy Holdings, Inc., 7.75%, 6/1/19 |
|
| 175,000 |
|
| 128,625 |
|
Transcontinental Gas Pipeline Corp., |
|
| 450,000 |
|
| 417,969 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 546,594 |
|
|
|
|
|
|
| ||
Retail – 1.1% |
|
|
|
|
|
|
|
Kohl’s Corp., 6.25%, 12/15/17 |
|
| 550,000 |
|
| 531,516 |
|
Kroger Co. (The), 5.00%, 4/15/13 |
|
| 250,000 |
|
| 252,488 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 784,004 |
|
|
|
|
|
|
| ||
Support - Services – 0.5% |
|
|
|
|
|
|
|
Aramark Services, Inc., 8.50%, |
|
| 175,000 |
|
| 167,125 |
|
Iron Mountain, Inc., 8.00%, |
|
| 175,000 |
|
| 168,875 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 336,000 |
|
|
|
|
|
|
| ||
Telecom - Integrated/Services – 0.2% |
|
|
|
|
|
|
|
Qwest Corp., 7.63%, 6/15/15 |
|
| 175,000 |
|
| 165,813 |
|
|
|
|
|
|
| ||
Telecommunications – 3.9% |
|
|
|
|
|
|
|
AOL Time Warner, Inc. |
|
|
|
|
|
|
|
6.88%, 5/1/12 |
|
| 600,000 |
|
| 631,026 |
|
7.70%, 5/1/32 |
|
| 550,000 |
|
| 500,638 |
|
GTE Corp., 6.84%, 4/15/18 |
|
| 750,000 |
|
| 753,238 |
|
Time Warner Entertainment Co., |
|
| 800,000 |
|
| 821,215 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,706,117 |
|
|
|
|
|
|
| ||
Transportation – 6.5% |
|
|
|
|
|
|
|
American Airlines, Inc., Series 2001-2 |
|
|
|
|
|
|
|
Class A1, 6.98%, 4/1/11 |
|
| 369,844 |
|
| 338,407 |
|
Class A2, 7.86%, 10/1/11 |
|
| 1,250,000 |
|
| 1,037,500 |
|
Burlington North Santa Fe, 7.57%, 1/2/21 |
|
| 261,280 |
|
| 267,224 |
|
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Transportation, continued |
|
|
|
|
|
|
|
Continental Airlines, Inc., 5.98%, 4/19/22 |
|
| 750,000 |
|
| 592,500 |
|
Union Pacific Corp. |
|
|
|
|
|
|
|
5.75%, 11/15/17 |
|
| 1,200,000 |
|
| 1,155,888 |
|
6.85%, 1/2/19 |
|
| 1,038,106 |
|
| 1,102,977 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,494,496 |
|
|
|
|
|
|
| ||
TOTAL CORPORATE OBLIGATIONS |
|
|
|
|
| 27,679,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Backed Securities—16.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Backed Funding Certificates, |
|
| 738,743 |
|
| 386,043 |
|
Cairn Mezzanine plc, Series 2007-3A, |
|
| 905,000 |
|
| 0 |
|
Capital Auto Receivables Asset Trust |
|
| 376,167 |
|
| 373,524 |
|
Series 2007-SN1, Class A3A, |
|
| 416,899 |
|
| 410,283 |
|
Series 2007-SN1, Class A3B, |
|
| 484,505 |
|
| 472,418 |
|
Capital One Prime Auto Receivables Trust |
|
| 239,168 |
|
| 236,534 |
|
Series 2006-1, Class A3, |
|
| 110,553 |
|
| 110,744 |
|
Carmax Auto Owner Trust, |
|
| 1,251,645 |
|
| 1,245,440 |
|
Countrywide Asset-Backed Certificates |
|
| 994,380 |
|
| 299,209 |
|
Series 2006-S4, Class A3, |
|
| 1,021,754 |
|
| 332,382 |
|
Dominos Pizza Master Issuer LLC, |
|
| 1,200,000 |
|
| 646,555 |
|
Duane Street CLO, Series 2007-4A, |
|
| 850,000 |
|
| 68,000 |
|
GE Business Loan Trust, Series 2006-2A, |
|
| 1,340,071 |
|
| 855,351 |
|
GMAC Mortgage Corp., Loan Trust, |
|
| 900,000 |
|
| 269,559 |
|
Hyundai Auto Receivables Trust, |
|
| 915,578 |
|
| 923,974 |
|
National Collegiate Student Loan Trust, |
|
| 408,375 |
|
| 391,839 |
|
Preferred Term Securities XXII Ltd., |
|
| 1,062,623 |
|
| 329,413 |
|
Residential Funding Mortgage Securities, |
|
| 474,293 |
|
| 139,945 |
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 42 |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Asset Backed Securities, continued |
|
|
|
|
|
|
|
| |||||||
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
SLM Student Loan Trust |
|
|
|
|
|
|
|
Series 2005-4, Class A2, |
|
| 490,000 |
|
| 476,542 |
|
Series 2005-9, Class A4, |
|
| 1,360,000 |
|
| 1,331,783 |
|
Series 2006-7, Class A2, |
|
| 326,568 |
|
| 326,170 |
|
Series 2006-9, Class A2, |
|
| 208,721 |
|
| 207,761 |
|
Series 2006-B, Class A1, |
|
| 942,875 |
|
| 896,632 |
|
South Carolina Student Loan Corp., |
|
| 718,648 |
|
| 709,737 |
|
|
|
|
|
|
| ||
TOTAL ASSET BACKED SECURITIES |
|
|
|
|
| 11,439,838 |
|
|
|
|
|
|
| ||
Collateralized Mortgage Obligations—6.1% |
|
|
|
|
|
|
|
Banc of America Mortgage Securities, |
|
| 767,738 |
|
| 724,925 |
|
Deutsche Mortgage Securities, Inc., |
|
| 629,341 |
|
| 625,743 |
|
Fannie Mae IO |
|
|
|
|
|
|
|
Series 270, Class 2, 8.50%, 9/1/23 (e) |
|
| 34,703 |
|
| 5,896 |
|
Series 296, Class 2, 8.00%, 4/1/24 (e) |
|
| 41,477 |
|
| 6,904 |
|
Series 306, Class IO, 8.00%, 5/1/30 (e) |
|
| 50,438 |
|
| 7,368 |
|
Series 2000-16, Class PS, |
|
| 21,735 |
|
| 856 |
|
Series 2001-4, Class SA, |
|
| 158,614 |
|
| 14,248 |
|
FHA Weyerhauser, 7.43%, 1/1/24 (g)(i) |
|
| 25,711 |
|
| 25,711 |
|
Freddie Mac |
|
|
|
|
|
|
|
Series 2988, Class AF, 0.75%, 6/15/35 (a)(h) |
|
| 922,891 |
|
| 903,503 |
|
Series 3212, Class BK, 5.40%, 9/15/36 |
|
| 900,000 |
|
| 945,939 |
|
Freddie Mac IO |
|
|
|
|
|
|
|
Series 1534, Class K, 6.90%, 6/15/23 (a) |
|
| 110,136 |
|
| 12,420 |
|
Series 2141, Class SD, 7.70%, 4/15/29 (a) |
|
| 90,678 |
|
| 9,944 |
|
Series 2247, Class SC, 7.05%, 8/15/30 (a) |
|
| 46,250 |
|
| 4,064 |
|
Government National Mortgage |
|
|
|
|
|
|
|
Series 1999-30, Class S, |
|
| 40,958 |
|
| 4,326 |
|
Series 1999-30, Class SA, |
|
| 55,284 |
|
| 4,257 |
|
Residential Asset Securitization Trust, |
|
| 1,177,046 |
|
| 963,170 |
|
|
|
|
|
|
| ||
TOTAL COLLATERALIZED MORTAGE |
|
|
|
|
| 4,259,274 |
|
|
|
|
|
|
| ||
Commercial Mortgage Backed Securities—9.0% |
|
|
|
|
|
|
|
Citigroup Commercial Mortgage Trust, |
|
| 1,100,000 |
|
| 997,929 |
|
Commercial Mortgage Pass-Through Certificate, |
|
| 1,422,841 |
|
| 996,926 |
|
|
|
|
|
|
|
|
|
Commercial Mortgage Backed Securities, continued |
|
|
| ||||
|
|
|
|
|
|
|
|
|
| Shares or |
| Value($) |
| ||
|
|
|
| ||||
CWCapital Cobalt, |
|
| 1,232,000 |
|
| 1,086,906 |
|
DLJ Mortgage Acceptance Corp., IO, |
|
| 16,850 |
|
| 1 |
|
Greenwich Capital Commercial Funding Corp. |
|
| 640,000 |
|
| 598,744 |
|
Series 2006-GG7, Class A4, |
|
| 1,040,000 |
|
| 869,400 |
|
GS Mortgage Securities Corp., IO, |
|
| 35,251 |
|
| 373 |
|
Morgan Stanley Capital I, Series 2007-IQ14, |
|
| 1,380,000 |
|
| 1,199,206 |
|
Washington Mutual Commercial |
|
| 935,175 |
|
| 514,346 |
|
|
|
|
|
|
| ||
TOTAL COMMERCIAL MORTGAGE |
|
|
|
|
| 6,263,831 |
|
|
|
|
|
|
| ||
Foreign Bonds—0.5% |
|
|
|
|
|
|
|
United Kingdom – 0.5% |
|
|
|
|
|
|
|
Barclays Bank plc, 5.93%, 12/31/49 (b) |
|
| 850,000 |
|
| 339,643 |
|
|
|
|
|
|
| ||
TOTAL FOREIGN BONDS |
|
|
|
|
| 339,643 |
|
|
|
|
|
|
| ||
Municipal Bonds—2.2% |
|
|
|
|
|
|
|
Chicago Transit Authority Sales & Transfer |
|
| 800,000 |
|
| 799,488 |
|
Connecticut State, GO, Series B, |
|
| 650,000 |
|
| 756,294 |
|
|
|
|
|
|
| ||
TOTAL MUNICIPAL BONDS |
|
|
|
|
| 1,555,782 |
|
|
|
|
|
|
| ||
Investment Company��11.1% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 7,693,048 |
|
| 7,693,048 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 7,693,048 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 93,606,783 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $69,482,704. |
|
|
(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, 2009. 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. |
|
|
|
43 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
(c) | Non-Income Producing; Defaulted Bond. |
|
|
(d) | In connection with the Lehman Brothers Holdings, Inc. bankruptcy filing announcement on September 15, 2008, the Fund stopped accruing prospective interests amounts on that date. |
|
|
(e) | 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, 2009. The principal amount shown is the notional amount of the underlying mortgages. |
|
|
(f) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
(g) | 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 0.04% of net assets. |
|
|
(h) | Security held as collateral for to be announced securities. |
|
|
(i) | Security was fair valued as of April 20, 2009. Represents 0.04% of net assets. |
|
|
AMT | — Interest on security is subject to federal alternative minimum tax |
FHA | — Federal Housing Administration |
GO | — General Obligation |
IO | — Interest-Only security. Represents 0.10% 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 35.6% of net assets. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 44 |
|
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
Certificates of Deposit—0.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Banking – 0.8% |
|
|
|
|
|
|
|
First Tennessee Bank, |
|
| 100,000 |
|
| 99,507 |
|
|
|
|
|
|
| ||
TOTAL CERTIFICATES OF DEPOSIT |
|
|
|
|
| 99,507 |
|
|
|
|
|
|
| ||
U.S. Government and Government Agency Obligations—56.9% |
| ||||||
Federal Home Loan Mortgage Corp. – 7.5% |
|
|
|
|
|
|
|
5.13%, 11/17/17 |
|
| 400,000 |
|
| 445,810 |
|
Pool #1B2655, 4.96%, 12/1/34 (a)(f) |
|
| 70,771 |
|
| 72,499 |
|
Pool #1J1313, 6.34%, 6/1/36 (a) |
|
| 182,906 |
|
| 188,685 |
|
Pool #847557, 4.41%, 7/1/34 (a)(f) |
|
| 86,236 |
|
| 87,476 |
|
Pool #G02981, 6.00%, 6/1/37 |
|
| 142,711 |
|
| 149,124 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 943,594 |
|
|
|
|
|
|
| ||
Federal National Mortgage Association – 42.4% |
|
|
|
|
|
|
|
3.25%, 8/12/10 |
|
| 150,000 |
|
| 154,295 |
|
Pool #922090, 5.91%, 3/1/37 (a) |
|
| 177,433 |
|
| 185,753 |
|
TBA May, 5.50%, 5/12/39 |
|
| 2,535,000 |
|
| 2,626,103 |
|
TBA June |
|
|
|
|
|
|
|
5.50%, 6/18/16 |
|
| 1,675,000 |
|
| 1,739,906 |
|
5.00%, 6/11/39 |
|
| 640,000 |
|
| 656,400 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,362,457 |
|
|
|
|
|
|
| ||
U.S. Treasury Notes – 7.0% |
|
|
|
|
|
|
|
3.38%, 7/31/13 |
|
| 185,000 |
|
| 197,242 |
|
1.88%, 4/30/14 |
|
| 650,000 |
|
| 645,580 |
|
3.88%, 5/15/18 |
|
| 45,000 |
|
| 47,956 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 890,778 |
|
|
|
|
|
|
| ||
TOTAL U.S. GOVERNMENT AND |
|
|
|
|
| 7,196,829 |
|
|
|
|
|
|
| ||
Corporate Obligations—34.3% |
|
|
|
|
|
|
|
Agricultural Chemicals – 0.7% |
|
|
|
|
|
|
|
Agrium, Inc., 6.75%, 1/15/19 |
|
| 100,000 |
|
| 91,011 |
|
|
|
|
|
|
| ||
Banking – 0.7% |
|
|
|
|
|
|
|
American Express Centurion Bank, |
|
| 100,000 |
|
| 85,661 |
|
|
|
|
|
|
| ||
Building & Construction Products – 1.5% |
|
|
|
|
|
|
|
Martin Marietta Materials, Inc., |
|
| 100,000 |
|
| 95,575 |
|
Masco Corp., 1.63%, 3/12/10 (a)(f) |
|
| 100,000 |
|
| 95,327 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 190,902 |
|
|
|
|
|
|
| ||
Computer Services – 0.8% |
|
|
|
|
|
|
|
Electronic Data Systems, Series B, |
|
| 100,000 |
|
| 106,955 |
|
|
|
|
|
|
| ||
Electric – 3.5% |
|
|
|
|
|
|
|
Duke Energy Corp., 5.65%, 6/15/13 |
|
| 75,000 |
|
| 77,093 |
|
MidAmerican Energy Co., 5.95%, 7/15/17 |
|
| 300,000 |
|
| 310,300 |
|
Puget Sound Energy, Inc., 6.97%, 6/1/67, |
|
| 100,000 |
|
| 52,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 439,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Finance – 10.3% |
|
|
|
|
|
|
|
Bear Stearns Co., Inc., 4.50%, 10/28/10 |
|
| 75,000 |
|
| 75,692 |
|
Bear Stearns Co., Inc., Series B, |
|
| 150,000 |
|
| 157,922 |
|
Citigroup, Inc., 6.50%, 8/19/13 |
|
| 25,000 |
|
| 22,815 |
|
Countrywide Home Loans, Series L, |
|
| 150,000 |
|
| 140,640 |
|
Ford Motor Credit Co., LLC, |
|
| 100,000 |
|
| 90,004 |
|
General Electric Capital Corp., |
|
| 100,000 |
|
| 87,244 |
|
Lehman Brothers Holdings, Series I, |
|
| 75,000 |
|
| 11,156 |
|
Morgan Stanley, 1.95%, 6/20/12 |
|
| 500,000 |
|
| 497,751 |
|
Morgan Stanley, Series F, |
|
| 75,000 |
|
| 70,846 |
|
XTRA Finance Corp., 5.15%, 4/1/17 |
|
| 150,000 |
|
| 145,538 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,299,608 |
|
|
|
|
|
|
| ||
Forestry/Paper – 0.2% |
|
|
|
|
|
|
|
Georgia-Pacific Corp., 7.70%, 6/15/15 |
|
| 25,000 |
|
| 23,500 |
|
|
|
|
|
|
| ||
Health Services – 0.2% |
|
|
|
|
|
|
|
Community Health Systems, Inc., 8.88%, |
|
| 25,000 |
|
| 24,875 |
|
|
|
|
|
|
| ||
Hospitals – 0.6% |
|
|
|
|
|
|
|
HCA, Inc., 5.75%, 3/15/14 |
|
| 100,000 |
|
| 79,000 |
|
|
|
|
|
|
| ||
Media – 3.4% |
|
|
|
|
|
|
|
Time Warner Entertainment, 8.88%, 10/1/12 |
|
| 350,000 |
|
| 377,860 |
|
Vivendi, 5.75%, 4/4/13 (d) |
|
| 50,000 |
|
| 47,903 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 425,763 |
|
|
|
|
|
|
| ||
Media - Cable – 0.2% |
|
|
|
|
|
|
|
Cablevision Systems Corp., Series B, |
|
| 25,000 |
|
| 24,875 |
|
|
|
|
|
|
| ||
Medical – 0.2% |
|
|
|
|
|
|
|
Glaxosmithkline Capital, Inc., |
|
| 25,000 |
|
| 25,934 |
|
|
|
|
|
|
| ||
Office Equipment & Services – 0.8% |
|
|
|
|
|
|
|
Xerox Corp., 2.06%, 12/18/09 (a)(f) |
|
| 100,000 |
|
| 97,602 |
|
|
|
|
|
|
| ||
Oil & Gas – 0.1% |
|
|
|
|
|
|
|
Pioneer Natural Resources Co., |
|
| 25,000 |
|
| 20,721 |
|
|
|
|
|
|
| ||
Pipelines – 0.9% |
|
|
|
|
|
|
|
Dynegy Holdings, Inc., 7.75%, 6/1/19 |
|
| 25,000 |
|
| 18,375 |
|
Transcontinental Gas Pipeline Corp., |
|
| 100,000 |
|
| 92,882 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 111,257 |
|
|
|
|
|
|
| ||
Retail – 0.2% |
|
|
|
|
|
|
|
Kroger Co. (The), 5.00%, 4/15/13 |
|
| 25,000 |
|
| 25,249 |
|
|
|
|
|
|
| ||
Support - Services – 0.4% |
|
|
|
|
|
|
|
Aramark Services, Inc., 8.50%, 2/1/15, |
|
| 25,000 |
|
| 23,875 |
|
|
|
|
45 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Corporate Obligations, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Support - Services, continued |
|
|
|
|
|
|
|
Iron Mountain, Inc., 8.00%, 6/15/20, |
|
| 25,000 |
|
| 24,125 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 48,000 |
|
|
|
|
|
|
| ||
Telecom - Integrated/Services – 0.2% |
|
|
|
|
|
|
|
Qwest Corp., 7.63%, 6/15/15 |
|
| 25,000 |
|
| 23,688 |
|
|
|
|
|
|
| ||
Telecommunications – 2.2% |
|
|
|
|
|
|
|
Verizon Pennsylvania, Inc., 5.65%, 11/15/11 |
|
| 275,000 |
|
| 283,965 |
|
|
|
|
|
|
| ||
Transportation – 7.2% |
|
|
|
|
|
|
|
American Airlines, Inc., Series 2001-2 |
|
|
|
|
|
|
|
Class A1, 6.98%, 4/1/11 |
|
| 54,389 |
|
| 49,766 |
|
Class A2, 7.86%, 10/1/11 |
|
| 200,000 |
|
| 166,000 |
|
Burlington Northern Santa Fe Railway Co., |
|
| 214,072 |
|
| 194,615 |
|
Continental Airlines, Inc., 5.98%, 4/19/22 |
|
| 100,000 |
|
| 79,000 |
|
Union Pacific Corp., 5.75%, 11/15/17 |
|
| 150,000 |
|
| 144,486 |
|
Union Pacific Railroad, 5.08%, 1/2/29 |
|
| 289,577 |
|
| 280,212 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 914,079 |
|
|
|
|
|
|
| ||
TOTAL CORPORATE OBLIGATIONS |
|
|
|
|
| 4,342,288 |
|
|
|
|
|
|
| ||
Asset Backed Securities—12.7% |
|
|
|
|
|
|
|
Asset Backed Funding Certificates, |
|
| 210,318 |
|
| 109,905 |
|
Cairn Mezzanine plc, Series 2007-3A, |
|
| 145,000 |
|
| 0 |
|
Capital Auto Receivables Asset Trust |
|
| 69,661 |
|
| 69,171 |
|
Series 2007-SN1, Class A3A, |
|
| 56,338 |
|
| 55,444 |
|
Series 2007-SN1, Class A3B, |
|
| 61,972 |
|
| 60,425 |
|
Capital One Prime Auto Receivables Trust |
|
| 34,167 |
|
| 33,791 |
|
Series 2006-1, Class A3, |
|
| 16,461 |
|
| 16,489 |
|
Carmax Auto Owner Trust, Series 2008-2, |
|
| 169,866 |
|
| 169,024 |
|
Countrywide Asset-Backed Certificates |
|
|
|
|
|
|
|
5.75%, 7/25/27 (a) |
|
| 130,251 |
|
| 39,193 |
|
Series 2006-S4, Class A3, |
|
| 202,423 |
|
| 65,849 |
|
GE Business Loan Trust, Series 2006-2A, |
|
| 229,223 |
|
| 146,310 |
|
GMAC Mortgage Corp., Loan Trust, |
|
| 170,000 |
|
| 50,917 |
|
Hyundai Auto Receivables Trust, |
|
| 125,668 |
|
| 126,820 |
|
National Collegiate Student Loan Trust, |
|
| 56,328 |
|
| 54,047 |
|
|
|
|
|
|
|
|
|
Asset Backed Securities, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Principal |
| Value($) |
| ||
|
|
|
| ||||
Preferred Term Securities XXII Ltd., 1.66%, |
|
| 193,204 |
|
| 59,893 |
|
Residential Funding Mortgage Securities, |
|
| 62,916 |
|
| 18,564 |
|
SLM Student Loan Trust |
|
| 60,000 |
|
| 58,352 |
|
Series 2005-9, Class A4, |
|
| 190,000 |
|
| 186,058 |
|
Series 2006-7, Class A2, |
|
| 45,056 |
|
| 45,001 |
|
Series 2006-9, Class A2, |
|
| 26,504 |
|
| 26,382 |
|
Series 2006-B, Class A1, |
|
| 128,045 |
|
| 121,765 |
|
South Carolina Student Loan Corp., |
|
| 96,404 |
|
| 95,209 |
|
|
|
|
|
|
| ||
TOTAL ASSET BACKED SECURITIES |
|
|
|
|
| 1,608,609 |
|
|
|
|
|
|
| ||
Collateralized Mortgage Obligations—5.3% |
|
|
|
|
|
|
|
Banc of America Mortgage Securities, |
|
| 139,589 |
|
| 131,805 |
|
Deutsche Mortgage Securities, Inc., |
|
| 95,769 |
|
| 95,222 |
|
Freddie Mac |
|
|
|
|
|
|
|
Series 2988, Class AF, 0.75%, 6/15/35 (a)(f) |
|
| 138,434 |
|
| 135,525 |
|
Series 3212, Class BK, 5.40%, 9/15/36 |
|
| 150,000 |
|
| 157,656 |
|
Residential Asset Securitization Trust, |
|
| 190,872 |
|
| 156,190 |
|
|
|
|
|
|
| ||
TOTAL COLLATERALIZED MORTGAGE |
|
|
|
|
| 676,398 |
|
|
|
|
|
|
| ||
Commercial Mortgage Backed Securities—6.4% |
|
|
|
|
|
|
|
Citigroup/Deutsche Bank Commercial |
|
| 200,000 |
|
| 174,457 |
|
Commercial Mortgage Pass-Through |
|
| 236,062 |
|
| 165,399 |
|
Greenwich Capital Commercial Funding Corp. |
|
| 90,000 |
|
| 84,198 |
|
Series 2006-GG7, Class A4, |
|
| 140,000 |
|
| 117,035 |
|
Morgan Stanley Capital I, Series 2007-IQ14, |
|
| 220,000 |
|
| 191,178 |
|
Washington Mutual Commercial Mortgage |
|
| 140,276 |
|
| 77,152 |
|
|
|
|
|
|
| ||
TOTAL COMMERCIAL MORTGAGE |
|
|
|
|
| 809,419 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 46 |
|
HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Foreign Bonds—0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares or |
| Value($) |
| ||
|
|
|
| ||||
United Kingdom – 0.5% |
|
|
|
|
|
|
|
Barclays Bank plc, 5.93%, 12/31/49 (d) |
|
| 150,000 |
|
| 59,937 |
|
|
|
|
|
|
| ||
TOTAL FOREIGN BONDS |
|
|
|
|
| 59,937 |
|
|
|
|
|
|
| ||
Investment Company—27.3% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 3,448,598 |
|
| 3,448,598 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 3,448,598 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 18,241,585 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $12,648,664. |
|
|
(a) | Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2009. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually. |
|
|
(b) | In connection with the Lehman Brothers Holdings, Inc. bankruptcy filing announcement on September 15, 2008, the Fund stopped accruing prospective interests amounts on that date. |
|
|
(c) | Non-Income Producing; Defaulted Bond. |
|
|
(d) | Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees. |
|
|
(e) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
(f) | Security held as collateral for to be announced securities. |
|
|
LLC | — Limited Liability Co. |
MTN | — Medium Term Note |
PLC | — Public Limited Co. |
TBA | — Security was traded on a “to be announced” basis. Represents 39.7% of net assets. |
|
|
|
47 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—99.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 2.3% |
|
|
|
|
|
|
|
Lockheed Martin Corp. |
|
| 9,400 |
|
| 738,182 |
|
Precision Castparts Corp. |
|
| 14,800 |
|
| 1,107,928 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,846,110 |
|
|
|
|
|
|
| ||
Agriculture – 3.0% |
|
|
|
|
|
|
|
Monsanto Co. |
|
| 28,100 |
|
| 2,385,409 |
|
|
|
|
|
|
| ||
Biotechnology – 3.8% |
|
|
|
|
|
|
|
Gilead Sciences, Inc. (a) |
|
| 49,000 |
|
| 2,244,200 |
|
Illumina, Inc. (a) |
|
| 20,600 |
|
| 769,410 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,013,610 |
|
|
|
|
|
|
| ||
Business Services – 3.1% |
|
|
|
|
|
|
|
Apollo Group, Inc., Class A (a) |
|
| 12,200 |
|
| 767,990 |
|
Ecolab, Inc. |
|
| 20,100 |
|
| 774,855 |
|
ITT Educational Services, Inc. (a) |
|
| 9,200 |
|
| 927,084 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,469,929 |
|
|
|
|
|
|
| ||
Communication Equipment – 5.6% |
|
|
|
|
|
|
|
American Tower Corp., Class A (a) |
|
| 25,900 |
|
| 822,584 |
|
Cisco Systems, Inc. (a) |
|
| 109,000 |
|
| 2,105,880 |
|
Juniper Networks, Inc. (a) |
|
| 30,000 |
|
| 649,500 |
|
Research In Motion Ltd. (a) |
|
| 11,500 |
|
| 799,250 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,377,214 |
|
|
|
|
|
|
| ||
Credit Card – 5.7% |
|
|
|
|
|
|
|
MasterCard, Inc., Class A |
|
| 9,500 |
|
| 1,742,775 |
|
Visa, Inc., Class A |
|
| 41,800 |
|
| 2,715,328 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,458,103 |
|
|
|
|
|
|
| ||
Distribution & Wholesale – 1.8% |
|
|
|
|
|
|
|
Fastenal Co. |
|
| 36,000 |
|
| 1,380,960 |
|
|
|
|
|
|
| ||
Exchanges – 1.3% |
|
|
|
|
|
|
|
IntercontinentalExchange, Inc. (a) |
|
| 12,100 |
|
| 1,059,960 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Hardware & Peripherals – 5.3% |
|
|
|
|
|
|
|
Apple, Inc. (a) |
|
| 18,100 |
|
| 2,277,523 |
|
Hewlett-Packard Co. |
|
| 51,701 |
|
| 1,860,202 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,137,725 |
|
|
|
|
|
|
| ||
Industrial Conglomerates – 7.0% |
|
|
|
|
|
|
|
Danaher Corp. |
|
| 39,500 |
|
| 2,308,380 |
|
General Mills, Inc. |
|
| 21,700 |
|
| 1,099,973 |
|
Lam Research Corp. (a) |
|
| 13,900 |
|
| 387,532 |
|
United Technologies Corp. |
|
| 34,400 |
|
| 1,680,096 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,475,981 |
|
|
|
|
|
|
| ||
Internet – 4.5% |
|
|
|
|
|
|
|
Baidu, Inc. ADR (a) |
|
| 5,200 |
|
| 1,211,080 |
|
Google, Inc., Class A (a) |
|
| 5,950 |
|
| 2,356,021 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,567,101 |
|
|
|
|
|
|
| ||
Investment Management – 6.4% |
|
|
|
|
|
|
|
BlackRock, Inc. |
|
| 8,250 |
|
| 1,208,790 |
|
Goldman Sachs Group, Inc. |
|
| 3,300 |
|
| 424,050 |
|
JP Morgan Chase & Co. |
|
| 41,700 |
|
| 1,376,100 |
|
The Charles Schwab Corp. |
|
| 110,600 |
|
| 2,043,888 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,052,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Medical Products – 5.9% |
|
|
|
|
|
|
|
Baxter International, Inc. |
|
| 30,700 |
|
| 1,488,950 |
|
Cephalon, Inc. (a) |
|
| 14,100 |
|
| 925,101 |
|
Mindray Medical International Ltd. ADR |
|
| 37,490 |
|
| 855,522 |
|
St. Jude Medical, Inc. (a) |
|
| 42,200 |
|
| 1,414,544 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,684,117 |
|
|
|
|
|
|
| ||
Medical Services & Distributors – 4.4% |
|
|
|
|
|
|
|
Medco Health Solutions, Inc. (a) |
|
| 79,600 |
|
| 3,466,580 |
|
|
|
|
|
|
| ||
Oil & Gas Drill & Equipment – 1.2% |
|
|
|
|
|
|
|
FMC Technologies, Inc. (a) |
|
| 28,100 |
|
| 961,863 |
|
|
|
|
|
|
| ||
Oil & Gas Exploration & Production – 3.0% |
|
|
|
|
|
|
|
Petro-Canada |
|
| 25,000 |
|
| 788,250 |
|
Petroleo Brasileiro SA ADR |
|
| 21,500 |
|
| 721,755 |
|
Southwestern Energy Co. (a) |
|
| 22,800 |
|
| 817,608 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,327,613 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 2.5% |
|
|
|
|
|
|
|
Teva Pharmaceutical Industries Ltd. ADR |
|
| 44,500 |
|
| 1,953,105 |
|
|
|
|
|
|
| ||
Railroad – 2.9% |
|
|
|
|
|
|
|
Union Pacific Corp. |
|
| 47,200 |
|
| 2,319,408 |
|
|
|
|
|
|
| ||
Retail – 5.1% |
|
|
|
|
|
|
|
Best Buy Co., Inc. |
|
| 15,300 |
|
| 587,214 |
|
Kohl’s Corp. (a) |
|
| 23,300 |
|
| 1,056,655 |
|
Lowe’s Cos., Inc. |
|
| 36,500 |
|
| 784,750 |
|
Wal-Mart Stores, Inc. |
|
| 30,800 |
|
| 1,552,320 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,980,939 |
|
|
|
|
|
|
| ||
Retail Pharmacy – 2.0% |
|
|
|
|
|
|
|
CVS Caremark Corp. |
|
| 48,900 |
|
| 1,554,042 |
|
|
|
|
|
|
| ||
Software Services – 10.4% |
|
|
|
|
|
|
|
Adobe Systems, Inc. (a) |
|
| 20,900 |
|
| 571,615 |
|
Autodesk, Inc. (a) |
|
| 20,100 |
|
| 400,794 |
|
Cognizant Technology Solutions Corp. (a) |
|
| 83,600 |
|
| 2,072,444 |
|
Dolby Laboratories, Inc., Class A (a) |
|
| 28,600 |
|
| 1,147,718 |
|
McAfee, Inc. (a) |
|
| 17,500 |
|
| 656,950 |
|
Microsoft Corp. |
|
| 86,300 |
|
| 1,748,438 |
|
Oracle Corp. |
|
| 81,000 |
|
| 1,566,540 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,164,499 |
|
|
|
|
|
|
| ||
Telecommunications – 7.4% |
|
|
|
|
|
|
|
American Movil SAB de C.V. ADR, Seies L |
|
| 23,400 |
|
| 768,690 |
|
Equinix, Inc. (a) |
|
| 17,600 |
|
| 1,236,048 |
|
MetroPCS Communications, Inc. (a) |
|
| 42,900 |
|
| 733,161 |
|
QUALCOMM, Inc. |
|
| 73,600 |
|
| 3,114,752 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,852,651 |
|
|
|
|
|
|
| ||
Transportation – 1.6% |
|
|
|
|
|
|
|
C.H. Robinson Worldwide, Inc. |
|
| 14,800 |
|
| 786,768 |
|
Expeditors International of Washington, Inc. |
|
| 13,200 |
|
| 458,172 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,244,940 |
|
|
|
|
|
|
| ||
Travel & Leisure – 3.3% |
|
|
|
|
|
|
|
Carnival Corp. |
|
| 43,900 |
|
| 1,180,032 |
|
Priceline.com, Inc. (a) |
|
| 14,800 |
|
| 1,436,932 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,616,964 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 48 |
|
HSBC INVESTOR GROWTH PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
TOTAL COMMON STOCKS |
|
|
|
|
| 78,351,651 |
|
|
|
|
|
|
| ||
Investment Company—0.3% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 203,165 |
|
| 203,165 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 203,165 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 78,554,816 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $78,715,834. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
ADR — American Depositary Receipt |
|
|
|
49 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—98.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Australia – 4.5% |
|
|
|
|
|
|
|
Australia & New Zealand |
|
| 199,300 |
|
| 2,302,188 |
|
BHP Billiton Ltd. |
|
| 36,500 |
|
| 882,230 |
|
Commonwealth Bank of Australia |
|
| 48,200 |
|
| 1,229,460 |
|
Lend Lease Corp., Ltd. |
|
| 143,700 |
|
| 753,755 |
|
National Australia Bank Ltd. |
|
| 113,565 |
|
| 1,702,081 |
|
Qantas Airways Ltd. |
|
| 412,833 |
|
| 593,849 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,463,563 |
|
|
|
|
|
|
| ||
Belgium – 0.9% |
|
|
|
|
|
|
|
Delhaize Group SA |
|
| 22,100 |
|
| 1,496,878 |
|
|
|
|
|
|
| ||
Brazil – 0.3% |
|
|
|
|
|
|
|
Banco Do Brasil SA |
|
| 60,000 |
|
| 514,686 |
|
|
|
|
|
|
| ||
Canada – 5.4% |
|
|
|
|
|
|
|
BCE, Inc. |
|
| 58,900 |
|
| 1,259,463 |
|
Fairfax Financial Holdings Ltd. |
|
| 5,200 |
|
| 1,375,624 |
|
Industrial Alliance Insurance and |
|
| 26,100 |
|
| 523,313 |
|
National Bank of Canada |
|
| 26,600 |
|
| 973,252 |
|
Nexen, Inc. |
|
| 40,490 |
|
| 771,109 |
|
Petro-Canada |
|
| 60,100 |
|
| 1,897,205 |
|
Royal Bank of Canada |
|
| 30,300 |
|
| 1,074,342 |
|
Telus Corp. |
|
| 19,700 |
|
| 458,236 |
|
WestJet Airlines Ltd. |
|
| 59,300 |
|
| 580,573 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,913,117 |
|
|
|
|
|
|
| ||
China – 0.9% |
|
|
|
|
|
|
|
China Petroleum & Chemical Corp. |
|
| 1,920,000 |
|
| 1,506,310 |
|
|
|
|
|
|
| ||
Czech Republic – 0.5% |
|
|
|
|
|
|
|
CEZ |
|
| 20,900 |
|
| 864,120 |
|
|
|
|
|
|
| ||
Finland – 1.1% |
|
|
|
|
|
|
|
Nokia Oyj |
|
| 129,400 |
|
| 1,871,021 |
|
|
|
|
|
|
| ||
France – 12.8% |
|
|
|
|
|
|
|
BNP Paribas SA |
|
| 55,180 |
|
| 2,938,135 |
|
Credit Agricole SA |
|
| 185,402 |
|
| 2,746,987 |
|
France Telecom SA |
|
| 63,200 |
|
| 1,410,445 |
|
Lagardere S.C.A. |
|
| 46,400 |
|
| 1,467,340 |
|
Renault SA |
|
| 68,700 |
|
| 2,232,986 |
|
Sanofi-Aventis |
|
| 52,700 |
|
| 3,051,486 |
|
Societe Generale |
|
| 58,231 |
|
| 3,017,009 |
|
Total SA |
|
| 76,100 |
|
| 3,860,269 |
|
Vallourec SA |
|
| 4,500 |
|
| 496,422 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 21,221,079 |
|
|
|
|
|
|
| ||
Germany – 13.0% |
|
|
|
|
|
|
|
Allianz SE |
|
| 27,200 |
|
| 2,505,471 |
|
BASF AG (a) |
|
| 64,800 |
|
| 2,455,117 |
|
Bayer AG (a) |
|
| 29,100 |
|
| 1,445,530 |
|
Deutsche Bank AG |
|
| 52,800 |
|
| 2,807,916 |
|
Deutsche Lufthansa AG |
|
| 81,300 |
|
| 1,024,424 |
|
Deutsche Post AG |
|
| 132,950 |
|
| 1,523,107 |
|
Deutsche Telekom AG |
|
| 150,900 |
|
| 1,841,534 |
|
E.ON AG |
|
| 91,100 |
|
| 3,067,117 |
|
Fresenius Medical Care AG & Co. KGaA |
|
| 18,100 |
|
| 711,147 |
|
Metro AG |
|
| 10,000 |
|
| 425,971 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Germany, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Muenchener Rueckversicherungs- |
|
| 17,600 |
|
| 2,402,794 |
|
RWE AG |
|
| 11,170 |
|
| 806,069 |
|
Siemens AG |
|
| 10,000 |
|
| 668,986 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 21,685,183 |
|
|
|
|
|
|
| ||
India – 0.6% |
|
|
|
|
|
|
|
State Bank of India GDR |
|
| 17,600 |
|
| 985,600 |
|
|
|
|
|
|
| ||
Italy – 4.4% |
|
|
|
|
|
|
|
ENI SpA |
|
| 139,700 |
|
| 3,040,090 |
|
Intesa Sanpaolo SpA |
|
| 650,300 |
|
| 2,096,923 |
|
Telecom Italia SpA |
|
| 1,036,200 |
|
| 1,320,061 |
|
Telecom Italia RSP |
|
| 920,000 |
|
| 827,601 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,284,675 |
|
|
|
|
|
|
| ||
Japan – 17.3% |
|
|
|
|
|
|
|
Canon, Inc. |
|
| 29,800 |
|
| 891,582 |
|
FUJITSU Ltd. |
|
| 424,000 |
|
| 1,806,085 |
|
Hitachi Ltd. |
|
| 332,000 |
|
| 1,148,195 |
|
Honda Motor Co., Ltd. |
|
| 27,600 |
|
| 796,369 |
|
JFE Holdings, Inc. |
|
| 26,800 |
|
| 727,079 |
|
KDDI Corp. |
|
| 279 |
|
| 1,250,690 |
|
Kyocera Corp. |
|
| 24,500 |
|
| 1,893,408 |
|
Mitsubishi Chemical Holdings Corp. |
|
| 303,000 |
|
| 1,146,237 |
|
Mitsubishi Corp. |
|
| 129,000 |
|
| 1,975,558 |
|
Mitsui & Co., Ltd. |
|
| 149,000 |
|
| 1,568,580 |
|
Mitsui Fudosan Co. Ltd. |
|
| 49,000 |
|
| 614,239 |
|
NAMCO BANDAI Holdings, Inc. |
|
| 123,800 |
|
| 1,229,211 |
|
Nippon Mining Holdings, Inc. |
|
| 187,000 |
|
| 849,655 |
|
Nippon Telegraph & Telephone Corp. |
|
| 63,000 |
|
| 2,351,318 |
|
Nissan Motor Co., Ltd. |
|
| 371,400 |
|
| 1,921,035 |
|
Sharp Corp. |
|
| 203,000 |
|
| 2,112,353 |
|
Sony Corp. |
|
| 37,910 |
|
| 972,741 |
|
Sumitomo Mitsui Financial Group, Inc. |
|
| 46,900 |
|
| 1,617,241 |
|
The Furukawa Electric Co. Ltd. |
|
| 123,000 |
|
| 366,755 |
|
The Tokyo Electric Power Co., Inc. |
|
| 28,000 |
|
| 655,984 |
|
Toshiba Corp. |
|
| 543,000 |
|
| 1,850,385 |
|
Toyota Motor Corp. |
|
| 25,500 |
|
| 995,690 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 28,740,390 |
|
|
|
|
|
|
| ||
Netherlands – 3.9% |
|
|
|
|
|
|
|
ArcelorMittal |
|
| 59,952 |
|
| 1,427,580 |
|
ING Groep NV |
|
| 155,768 |
|
| 1,460,170 |
|
Koninklijke (Royal) Philips Electronics NV |
|
| 62,210 |
|
| 1,132,408 |
|
Koninklijke Ahold NV |
|
| 223,020 |
|
| 2,458,200 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,478,358 |
|
|
|
|
|
|
| ||
New Zealand – 0.4% |
|
|
|
|
|
|
|
Telecom Corp. of New Zealand Ltd. |
|
| 456,800 |
|
| 730,105 |
|
|
|
|
|
|
| ||
Norway – 1.5% |
|
|
|
|
|
|
|
StatoilHydro ASA |
|
| 128,500 |
|
| 2,444,448 |
|
|
|
|
|
|
| ||
Russian Federation – 0.8% |
|
|
|
|
|
|
|
JSC MMC Norilsk Nickel ADR |
|
| 67,789 |
|
| 564,682 |
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 50 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Russian Federation, continued |
|
|
|
|
|
|
|
LUKOIL ADR |
|
| 16,550 |
|
| 738,130 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,302,812 |
|
|
|
|
|
|
| ||
Singapore – 0.2% |
|
|
|
|
|
|
|
Neptune Orient Lines Ltd. |
|
| 427,000 |
|
| 375,144 |
|
|
|
|
|
|
| ||
South Africa – 0.8% |
|
|
|
|
|
|
|
Sanlam Ltd. |
|
| 554,040 |
|
| 1,041,588 |
|
Standard Bank Group Ltd. |
|
| 31,023 |
|
| 302,619 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,344,207 |
|
|
|
|
|
|
| ||
South Korea – 1.1% |
|
|
|
|
|
|
|
KB Financial Group, Inc. ADR (a) |
|
| 33,200 |
|
| 1,058,416 |
|
Samsung Electronics Co., Ltd., Preferred |
|
| 2,900 |
|
| 751,073 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,809,489 |
|
|
|
|
|
|
| ||
Spain – 1.8% |
|
|
|
|
|
|
|
Telefonica SA (a) |
|
| 161,400 |
|
| 3,076,746 |
|
|
|
|
|
|
| ||
Sweden – 2.8% |
|
|
|
|
|
|
|
Ericsson LM, B Shares |
|
| 153,000 |
|
| 1,351,035 |
|
Nordea Bank AB |
|
| 114,080 |
|
| 859,803 |
|
Svenska Cellusoa AB (SCA), B Shares |
|
| 189,700 |
|
| 1,852,055 |
|
Volvo AB, B Shares |
|
| 86,500 |
|
| 572,866 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,635,759 |
|
|
|
|
|
|
| ||
Switzerland – 3.4% |
|
|
|
|
|
|
|
Credit Suisse Group |
|
| 81,100 |
|
| 3,170,079 |
|
Novartis AG |
|
| 63,940 |
|
| 2,432,073 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,602,152 |
|
|
|
|
|
|
| ||
Taiwan – 1.5% |
|
|
|
|
|
|
|
AU Optronics Corp. |
|
| 1,101,000 |
|
| 1,140,734 |
|
China Steel Corp. GDR |
|
| 40,044 |
|
| 618,279 |
|
Compal Electronics, Inc. |
|
| 581,895 |
|
| 494,638 |
|
United Microelectronics Corp. |
|
| 862,805 |
|
| 323,647 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,577,298 |
|
|
|
|
|
|
| ||
Thailand – 0.4% |
|
|
|
|
|
|
|
PTT Public Co., Ltd. |
|
| 121,400 |
|
| 652,448 |
|
|
|
|
|
|
| ||
United Kingdom – 17.7% |
|
|
|
|
|
|
|
Associated British Foods plc |
|
| 199,300 |
|
| 2,116,262 |
|
AstraZeneca plc |
|
| 43,100 |
|
| 1,520,209 |
|
Aviva plc |
|
| 352,191 |
|
| 1,643,294 |
|
Barclays plc |
|
| 451,300 |
|
| 1,878,804 |
|
BP plc |
|
| 532,500 |
|
| 3,799,746 |
|
Centrica plc |
|
| 618,000 |
|
| 2,074,684 |
|
Drax Group plc |
|
| 51,100 |
|
| 389,950 |
|
GlaxoSmithKline plc |
|
| 213,800 |
|
| 3,316,812 |
|
Lloyds Banking Group plc |
|
| 886,507 |
|
| 1,468,378 |
|
Royal Dutch Shell plc, A Shares |
|
| 200,987 |
|
| 4,671,581 |
|
RSA Insurance Group plc |
|
| 505,627 |
|
| 981,074 |
|
Thomas Cook Group plc |
|
| 175,500 |
|
| 681,958 |
|
Tui Travel plc |
|
| 208,700 |
|
| 781,645 |
|
Vodafone Group plc |
|
| 2,240,458 |
|
| 4,131,816 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 29,456,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
TOTAL COMMON STOCKS |
|
|
|
|
| 163,031,801 |
|
|
|
|
|
|
| ||
Right—0.0% |
|
|
|
|
|
|
|
Belgium – 0.0% |
|
|
|
|
|
|
|
Fortis (a) |
|
| 121,532 |
|
| 0 |
|
|
|
|
|
|
| ||
TOTAL RIGHTS |
|
|
|
|
| 0 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Investment Company—0.9% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 1,401,968 |
|
| 1,401,968 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 1,401,968 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 164,433,769 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $166,309,015. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
ADR — American Depositary Receipt | |
GDR — Global Depositary Receipt | |
PLC — Public Limited Co. | |
SPA — Standby Purchase Agreement |
|
|
|
|
|
|
|
Schedule of Portfolio Investments—April 30, 2009 |
|
|
|
| ||
|
|
|
|
|
|
|
Industry |
| Percent of Net Assets |
| |||
|
| |||||
Automotive |
|
|
| 3.6 | % |
|
Banking & Financial Services |
|
|
| 23.9 | % |
|
Building & Construction |
|
|
| 1.1 | % |
|
Cash & Cash Equivalents |
|
|
| 0.8 | % |
|
Chemicals |
|
|
| 2.2 | % |
|
Drugs - Medical |
|
|
| 6.6 | % |
|
Electrical |
|
|
| 4.7 | % |
|
Electronic Components & Semiconductors |
|
|
| 5.0 | % |
|
Food & Beverage |
|
|
| 2.2 | % |
|
Import/Export |
|
|
| 0.9 | % |
|
Insurance |
|
|
| 4.0 | % |
|
Manufacturing |
|
|
| 7.1 | % |
|
Metals & Mining |
|
|
| 2.0 | % |
|
Oil & Gas |
|
|
| 15.8 | % |
|
Publishing |
|
|
| 0.9 | % |
|
Real Estate |
|
|
| 0.8 | % |
|
Retail |
|
|
| 1.7 | % |
|
Telecommunications |
|
|
| 13.2 | % |
|
Transportation Services |
|
|
| 2.4 | % |
|
|
|
|
|
| ||
Total Investments |
|
|
| 98.9 | % |
|
|
|
|
|
|
|
|
|
51 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
At April 30, 2009 the portfolio’s open forward currency contracts were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
| Delivery |
| Amount |
| Contract |
| Value |
| Unrealized |
| |||||
|
|
|
|
| ||||||||||||
SHORT CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Sterling Pound |
|
| 06/15/09 |
|
| 2,338,000 |
|
| 3,291,436 |
|
| 3,457,533 |
|
| (166,097 | ) |
British Sterling Pound |
|
| 07/15/09 |
|
| 930,000 |
|
| 1,386,463 |
|
| 1,375,377 |
|
| 11,086 |
|
British Sterling Pound |
|
| 07/15/09 |
|
| 379,000 |
|
| 555,466 |
|
| 560,503 |
|
| (5,037 | ) |
Canadian Dollar |
|
| 06/15/09 |
|
| 1,988,000 |
|
| 1,571,467 |
|
| 1,666,805 |
|
| (95,338 | ) |
Canadian Dollar |
|
| 06/15/09 |
|
| 4,930,000 |
|
| 3,860,762 |
|
| 4,133,473 |
|
| (272,711 | ) |
Canadian Dollar |
|
| 06/15/09 |
|
| 933,000 |
|
| 733,808 |
|
| 782,258 |
|
| (48,450 | ) |
Canadian Dollar |
|
| 06/15/09 |
|
| 1,158,000 |
|
| 934,776 |
|
| 970,905 |
|
| (36,129 | ) |
Canadian Dollar |
|
| 07/15/09 |
|
| 9,009,000 |
|
| 7,276,766 |
|
| 7,555,630 |
|
| (278,864 | ) |
Swedish Krone |
|
| 06/15/09 |
|
| 28,436,000 |
|
| 3,242,750 |
|
| 3,536,838 |
|
| (294,088 | ) |
|
|
|
|
|
|
|
|
| ||||||||
Total |
|
|
|
|
| 50,101,000 |
|
| 22,853,694 |
|
| 24,039,322 |
|
| (1,185,628 | ) |
|
|
|
|
|
|
|
|
| ||||||||
LONG CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Dollar |
|
| 06/15/09 |
|
| 9,009,000 |
|
| 7,275,591 |
|
| 7,553,442 |
|
| 277,851 |
|
British Sterling Pound |
|
| 06/15/09 |
|
| 1,959,000 |
|
| 2,899,320 |
|
| 2,897,052 |
|
| (2,268 | ) |
British Sterling Pound |
|
| 06/15/09 |
|
| 379,000 |
|
| 555,489 |
|
| 560,481 |
|
| 4,992 |
|
Swedish Krone |
|
| 06/15/09 |
|
| 3,116,000 |
|
| 350,242 |
|
| 387,565 |
|
| 37,323 |
|
Swedish Krone |
|
| 06/15/09 |
|
| 25,320,000 |
|
| 2,993,085 |
|
| 3,149,273 |
|
| 156,188 |
|
|
|
|
|
|
|
|
|
| ||||||||
Total |
|
|
|
|
| 39,783,000 |
|
| 14,073,727 |
|
| 14,547,813 |
|
| 474,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 52 |
|
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks—97.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 1.3% |
|
|
|
|
|
|
|
BE Aerospace, Inc. (a) |
|
| 138,700 |
|
| 1,496,573 |
|
|
|
|
|
|
| ||
Biotechnology – 5.8% |
|
|
|
|
|
|
|
Illumina, Inc. (a) |
|
| 103,350 |
|
| 3,860,122 |
|
Life Technologies Corp. (a) |
|
| 68,900 |
|
| 2,569,970 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,430,092 |
|
|
|
|
|
|
| ||
Business Services – 3.1% |
|
|
|
|
|
|
|
MSCI, Inc., Class A (a) |
|
| 61,700 |
|
| 1,295,083 |
|
Navigant Consulting, Inc. (a) |
|
| 148,650 |
|
| 2,186,642 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,481,725 |
|
|
|
|
|
|
| ||
Communications – 1.0% |
|
|
|
|
|
|
|
Discovery Communications, Inc., |
|
| 58,800 |
|
| 1,116,612 |
|
|
|
|
|
|
| ||
Computer Software – 16.3% |
|
|
|
|
|
|
|
ACI Worldwide, Inc. (a) |
|
| 73,200 |
|
| 1,264,164 |
|
BMC Software, Inc. (a) |
|
| 98,400 |
|
| 3,411,528 |
|
Brocade Communications Systems, Inc. (a) |
|
| 306,600 |
|
| 1,772,148 |
|
Check Point Software Technologies Ltd. (a) |
|
| 139,250 |
|
| 3,226,422 |
|
Citrix Systems, Inc. (a) |
|
| 73,200 |
|
| 2,088,396 |
|
Nuance Communications, Inc. (a) |
|
| 235,450 |
|
| 3,143,257 |
|
Salesforce.com, Inc. (a) |
|
| 38,050 |
|
| 1,628,921 |
|
VeriFone Holdings, Inc. (a) |
|
| 200,300 |
|
| 1,504,253 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 18,039,089 |
|
|
|
|
|
|
| ||
Consumer Products – 4.4% |
|
|
|
|
|
|
|
Church & Dwight Co., Inc. |
|
| 39,800 |
|
| 2,165,518 |
|
Crown Holdings, Inc. (a) |
|
| 121,300 |
|
| 2,674,665 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,840,183 |
|
|
|
|
|
|
| ||
Diversified Manufacturing Operations – 5.1% |
|
|
|
|
|
|
|
Actuant Corp., Class A |
|
| 113,400 |
|
| 1,390,284 |
|
AMETEK, Inc. |
|
| 66,800 |
|
| 2,151,628 |
|
Joy Global, Inc. |
|
| 84,050 |
|
| 2,143,275 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,685,187 |
|
|
|
|
|
|
| ||
Education – 1.7% |
|
|
|
|
|
|
|
Corinthian Colleges, Inc. (a) |
|
| 609 |
|
| 9,379 |
|
DeVry, Inc. |
|
| 44,400 |
|
| 1,889,664 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,899,043 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 3.0% |
|
|
|
|
|
|
|
Maxim Integrated Products, Inc. |
|
| 77,400 |
|
| 1,048,770 |
|
National Semiconductor Corp. |
|
| 83,350 |
|
| 1,031,040 |
|
Xilinx, Inc. |
|
| 63,550 |
|
| 1,298,962 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,378,772 |
|
|
|
|
|
|
| ||
Environmental Services – 1.5% |
|
|
|
|
|
|
|
Stericycle, Inc. (a) |
|
| 34,700 |
|
| 1,633,676 |
|
|
|
|
|
|
| ||
Financial Services – 4.5% |
|
|
|
|
|
|
|
Annaly Capital Management, Inc. |
|
| 106,950 |
|
| 1,504,787 |
|
PrivateBancorp, Inc. |
|
| 83,300 |
|
| 1,686,825 |
|
Waddell & Reed Financial, Inc., Class A |
|
| 81,000 |
|
| 1,815,210 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,006,822 |
|
|
|
|
|
|
| ||
Gaming – 1.1% |
|
|
|
|
|
|
|
Scientific Games Corp., Class A (a) |
|
| 71,600 |
|
| 1,252,284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued | |||||||
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Health Care – 6.5% |
|
|
|
|
|
|
|
DaVita, Inc. (a) |
|
| 63,900 |
|
| 2,963,043 |
|
IDEXX Laboratories, Inc. (a) |
|
| 62,500 |
|
| 2,456,250 |
|
MEDNAX, Inc. (a) |
|
| 36,250 |
|
| 1,301,375 |
|
Skilled Healthcare Group, Inc., Class A (a) |
|
| 54,600 |
|
| 476,658 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,197,326 |
|
|
|
|
|
|
| ||
Industrial Manufacturing – 6.0% |
|
|
|
|
|
|
|
IDEX Corp. |
|
| 89,000 |
|
| 2,247,250 |
|
Mettler-Toledo International, Inc. (a) |
|
| 44,550 |
|
| 2,745,616 |
|
WESCO International, Inc. (a) |
|
| 62,500 |
|
| 1,625,000 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,617,866 |
|
|
|
|
|
|
| ||
Insurance – 1.3% |
|
|
|
|
|
|
|
HCC Insurance Holdings, Inc. |
|
| 62,100 |
|
| 1,485,432 |
|
|
|
|
|
|
| ||
Internet Related – 1.4% |
|
|
|
|
|
|
|
VeriSign, Inc. (a) |
|
| 76,100 |
|
| 1,566,138 |
|
|
|
|
|
|
| ||
| |||||||
Oil & Gas – 11.8% |
|
|
|
|
|
|
|
Consol Energy, Inc. |
|
| 69,700 |
|
| 2,180,216 |
|
Denbury Resources, Inc. (a) |
|
| 221,800 |
|
| 3,610,904 |
|
EQT Corp. |
|
| 47,400 |
|
| 1,594,062 |
|
Exterran Holdings, Inc. (a) |
|
| 104,600 |
|
| 2,159,990 |
|
Massey Energy Co. |
|
| 179,450 |
|
| 2,855,049 |
|
Range Resources Corp. |
|
| 17,000 |
|
| 679,490 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 13,079,711 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 10.7% |
|
|
|
|
|
|
|
Alexion Pharmaceuticals, Inc. (a) |
|
| 108,650 |
|
| 3,631,083 |
|
Elan Corp. plc ADR (a) |
|
| 235,500 |
|
| 1,391,805 |
|
OSI Pharmaceuticals, Inc. (a) |
|
| 89,300 |
|
| 2,997,801 |
|
Santarus, Inc. (a) |
|
| 211,800 |
|
| 372,768 |
|
Shire plc ADR |
|
| 91,900 |
|
| 3,425,113 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 11,818,570 |
|
|
|
|
|
|
| ||
Retail – 6.9% |
|
|
|
|
|
|
|
American Eagle Outfitters, Inc. |
|
| 201,350 |
|
| 2,984,007 |
|
O’Reilly Automotive, Inc. (a) |
|
| 72,500 |
|
| 2,816,625 |
|
PetSmart, Inc. |
|
| 79,700 |
|
| 1,823,536 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,624,168 |
|
|
|
|
|
|
| ||
Telecommunications – 3.9% |
|
|
|
|
|
|
|
Comverse Technology, Inc. (a) |
|
| 196,000 |
|
| 1,401,400 |
|
Equinix, Inc. (a) |
|
| 10,850 |
|
| 761,996 |
|
Polycom, Inc. (a) |
|
| 114,300 |
|
| 2,130,552 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,293,948 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 107,943,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company—2.6% |
|
|
|
|
|
|
|
Northern Institutional Government Select |
|
| 2,842,694 |
|
| 2,842,694 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 2,842,694 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 110,785,911 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $110,888,905. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
ADR — American Depositary Receipt | |
PLC — Public Limited Co. |
|
|
|
53 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
|
Schedule of Portfolio Investments—as of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—97.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 5.8% |
|
|
|
|
|
|
|
Lockheed Martin Corp. |
|
| 14,900 |
|
| 1,170,097 |
|
Raytheon Co. |
|
| 29,100 |
|
| 1,316,193 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,486,290 |
|
|
|
|
|
|
| ||
Agricultural Chemicals – 1.1% |
|
|
|
|
|
|
|
The Mosaic Co. |
|
| 11,500 |
|
| 465,175 |
|
|
|
|
|
|
| ||
Banking – 2.4% |
|
|
|
|
|
|
|
Wells Fargo & Co. |
|
| 50,700 |
|
| 1,014,507 |
|
|
|
|
|
|
| ||
Business Services – 3.7% |
|
|
|
|
|
|
|
Pitney Bowes, Inc. |
|
| 65,700 |
|
| 1,612,278 |
|
|
|
|
|
|
| ||
Computer Software – 8.6% |
|
|
|
|
|
|
|
CA, Inc. |
|
| 120,200 |
|
| 2,073,450 |
|
Microsoft Corp. |
|
| 81,500 |
|
| 1,651,190 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,724,640 |
|
|
|
|
|
|
| ||
Conglomerates – 3.0% |
|
|
|
|
|
|
|
Loews Corp. |
|
| 51,240 |
|
| 1,275,364 |
|
|
|
|
|
|
| ||
Consumer Products – 4.2% |
|
|
|
|
|
|
|
Kimberly-Clark Corp. |
|
| 24,600 |
|
| 1,208,844 |
|
Kraft Foods, Inc. |
|
| 25,069 |
|
| 586,615 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,795,459 |
|
|
|
|
|
|
| ||
Diversified Manufacturing Operations – 1.5% |
|
|
|
|
|
|
|
Ingersoll-Rand Co., Class A |
|
| 30,100 |
|
| 655,277 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 2.5% |
|
|
|
|
|
|
|
Agilent Technologies, Inc. (a) |
|
| 58,800 |
|
| 1,073,688 |
|
|
|
|
|
|
| ||
Energy – 2.8% |
|
|
|
|
|
|
|
Halliburton Co. |
|
| 30,600 |
|
| 618,732 |
|
NRG Energy, Inc. (a) |
|
| 33,800 |
|
| 607,724 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,226,456 |
|
|
|
|
|
|
| ||
Financial Services – 3.4% |
|
|
|
|
|
|
|
JP Morgan Chase & Co. |
|
| 44,250 |
|
| 1,460,250 |
|
|
|
|
|
|
| ||
Insurance – 8.0% |
|
|
|
|
|
|
|
Aetna, Inc. |
|
| 20,800 |
|
| 457,808 |
|
Aon Corp. |
|
| 30,400 |
|
| 1,282,880 |
|
Genworth Financial, Inc., Class A |
|
| 93,500 |
|
| 220,660 |
|
MetLife, Inc. |
|
| 35,200 |
|
| 1,047,200 |
|
The Hartford Financial |
|
| 37,300 |
|
| 427,831 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,436,379 |
|
|
|
|
|
|
| ||
Media – 6.5% |
|
|
|
|
|
|
|
CBS Corp., Class B |
|
| 34,350 |
|
| 241,824 |
|
Comcast Corp., Class A |
|
| 51,650 |
|
| 758,222 |
|
Viacom, Inc., Class B (a) |
|
| 94,000 |
|
| 1,808,560 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,808,606 |
|
|
|
|
|
|
| ||
Metals & Mining – 8.0% |
|
|
|
|
|
|
|
AngloGold Ashanti Ltd. ADR |
|
| 47,327 |
|
| 1,457,671 |
|
Barrick Gold Corp. |
|
| 55,800 |
|
| 1,623,780 |
|
United States Steel Corp. |
|
| 13,800 |
|
| 366,390 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,447,841 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued | |||||||
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Oil & Gas – 14.4% |
|
|
|
|
|
|
|
Apache Corp. |
|
| 24,400 |
|
| 1,777,784 |
|
ConocoPhillips |
|
| 9,571 |
|
| 392,411 |
|
EOG Resources, Inc. |
|
| 9,075 |
|
| 576,081 |
|
Hess Corp. |
|
| 13,600 |
|
| 745,144 |
|
Noble Energy, Inc. |
|
| 35,900 |
|
| 2,037,325 |
|
Talisman Energy, Inc. |
|
| 55,200 |
|
| 692,208 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,220,953 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 7.6% |
|
|
|
|
|
|
|
Amgen, Inc. (a) |
|
| 31,100 |
|
| 1,507,417 |
|
Merck & Co., Inc. |
|
| 30,600 |
|
| 741,744 |
|
Sanofi-Aventis ADR |
|
| 36,200 |
|
| 1,039,664 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,288,825 |
|
|
|
|
|
|
| ||
Telecommunications – 8.0% |
|
|
|
|
|
|
|
AT&T, Inc. |
|
| 33,000 |
|
| 845,460 |
|
Motorola, Inc. |
|
| 319,000 |
|
| 1,764,070 |
|
Verizon Communications, Inc. |
|
| 27,800 |
|
| 843,452 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,452,982 |
|
|
|
|
|
|
| ||
Tobacco – 3.9% |
|
|
|
|
|
|
|
Lorillard, Inc. |
|
| 9,927 |
|
| 626,691 |
|
Philip Morris International, Inc. |
|
| 28,700 |
|
| 1,038,940 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,665,631 |
|
|
|
|
|
|
| ||
Transportation – 2.0% |
|
|
|
|
|
|
|
Union Pacific Corp. |
|
| 18,000 |
|
| 884,520 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS |
|
|
|
|
| 41,995,121 |
|
|
|
|
|
|
| ||
Investment Company—2.5% |
|
|
|
|
|
|
|
Northern Institutional Government Select |
|
| 1,071,696 |
|
| 1,071,696 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 1,071,696 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 43,066,817 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $43,127,664. |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rates presented represent the annualized one day yield that was in effect on April 30, 2009. |
|
|
ADR — American Depositary Receipt |
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 54 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| Intermediate |
| Growth |
| International |
| ||||
| |||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 93,606,783 |
| $ | 18,241,585 |
| $ | 78,554,816 |
| $ | 164,433,769 |
|
Foreign currency, at value |
|
| — |
|
| — |
|
| — |
|
| 2,521,711 |
|
Unrealized appreciation on forward foreign currency |
|
| — |
|
| — |
|
| — |
|
| 487,440 |
|
Interest and dividends receivable |
|
| 632,107 |
|
| 91,144 |
|
| 30,209 |
|
| 662,006 |
|
Receivable for investments sold |
|
| 10,729,803 |
|
| 3,095,685 |
|
| 1,182,861 |
|
| 339,018 |
|
Prepaid expenses and other assets |
|
| 7 |
|
| 170 |
|
| 746 |
|
| 1,470 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 104,968,700 |
|
| 21,428,584 |
|
| 79,768,632 |
|
| 168,445,414 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash overdraft |
|
| 3,873 |
|
| 6,131 |
|
| — |
|
| — |
|
Unrealized depreciation on forward foreign |
|
| — |
|
| — |
|
| — |
|
| 1,198,982 |
|
Payable for investments purchased |
|
| 35,443,151 |
|
| 8,763,180 |
|
| 1,010,356 |
|
| 815,275 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 30,671 |
|
| 4,151 |
|
| 36,044 |
|
| 94,281 |
|
Administration |
|
| 1,241 |
|
| 226 |
|
| 1,356 |
|
| 2,889 |
|
Compliance Service |
|
| 24 |
|
| 4 |
|
| 27 |
|
| 56 |
|
Other |
|
| 7,036 |
|
| 6,228 |
|
| 5,015 |
|
| 24,916 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 35,485,996 |
|
| 8,779,920 |
|
| 1,052,798 |
|
| 2,136,399 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Applicable to investors’ beneficial interest |
| $ | 69,482,704 |
| $ | 12,648,664 |
| $ | 78,715,834 |
| $ | 166,309,015 |
|
|
|
|
|
|
| ||||||||
Total Investments, at cost |
| $ | 103,226,664 |
| $ | 19,536,796 |
| $ | 84,735,372 |
| $ | 240,011,755 |
|
|
|
|
|
|
| ||||||||
Foreign currency, at cost |
| $ | — |
| $ | — |
| $ | — |
| $ | 2,504,392 |
|
|
|
|
|
|
|
|
|
|
55 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||
| |||||||
Assets: |
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 110,785,911 |
| $ | 43,066,817 |
|
Dividend income |
|
| 2,825 |
|
| 82,117 |
|
Receivable for investments sold |
|
| 1,231,827 |
|
| — |
|
Prepaid expenses and other assets |
|
| — |
|
| 889 |
|
|
|
|
| ||||
Total Assets |
|
| 112,020,563 |
|
| 43,149,823 |
|
|
|
|
| ||||
| |||||||
Liabilities: |
|
|
|
|
|
|
|
Payable for investments purchased |
|
| 1,047,632 |
|
| — |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
Investment Management |
|
| 70,435 |
|
| 18,009 |
|
Administration |
|
| 1,921 |
|
| 760 |
|
Compliance Service |
|
| 38 |
|
| 15 |
|
Other |
|
| 11,632 |
|
| 3,375 |
|
|
|
|
| ||||
Total Liabilities |
|
| 1,131,658 |
|
| 22,159 |
|
|
|
|
| ||||
| |||||||
Net Assets: |
|
|
|
|
|
|
|
Applicable to investors’ beneficial interest |
| $ | 110,888,905 |
| $ | 43,127,664 |
|
|
|
|
| ||||
Total Investments, at cost |
| $ | 128,985,437 |
| $ | 57,191,135 |
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 56 |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2009 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| Intermediate |
| Growth |
| International |
| ||||
| |||||||||||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
| $ | 2,118,629 |
| $ | 304,397 |
| $ | — |
| $ | 3,441 |
|
Dividends |
|
| 5,734 |
|
| 4,879 |
|
| 363,478 |
|
| 2,937,928 |
|
Foreign tax withholding |
|
| — |
|
| — |
|
| — |
|
| (453,901 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income (Loss) |
|
| 2,124,363 |
|
| 309,276 |
|
| 363,478 |
|
| 2,487,468 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 196,009 |
|
| 25,771 |
|
| 209,638 |
|
| 576,888 |
|
Administration |
|
| 7,500 |
|
| 1,315 |
|
| 7,447 |
|
| 16,550 |
|
Accounting |
|
| 32,290 |
|
| 29,135 |
|
| 24,861 |
|
| 45,159 |
|
Compliance Service |
|
| 127 |
|
| 8 |
|
| 169 |
|
| 340 |
|
Custodian |
|
| 2,266 |
|
| 872 |
|
| 4,129 |
|
| 81,166 |
|
Printing |
|
| 132 |
|
| 553 |
|
| 480 |
|
| 1,788 |
|
Professional fees |
|
| 618 |
|
| 260 |
|
| 1,203 |
|
| 2,035 |
|
Trustee |
|
| 532 |
|
| 59 |
|
| 518 |
|
| 1,227 |
|
Other |
|
| 8,389 |
|
| 605 |
|
| 8,149 |
|
| 19,270 |
|
|
|
|
|
|
| ||||||||
Total Expenses |
|
| 247,863 |
|
| 58,578 |
|
| 256,594 |
|
| 744,423 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net Investment Income (Loss) |
|
| 1,876,500 |
|
| 250,698 |
|
| 106,884 |
|
| 1,743,045 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net Realized/Unrealized Gains (Losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investments and |
|
| 51,411 |
|
| 177,985 |
|
| (12,863,368 | ) |
| (56,073,611 | ) |
Net realized gains (losses) from futures transactions |
|
| (380,711 | ) |
| (57,805 | ) |
| — |
|
| — |
|
Change in unrealized appreciation/depreciation from |
|
| 2,779,601 |
|
| 305,872 |
|
| 13,870,510 |
|
| 44,805,697 |
|
|
|
|
|
|
| ||||||||
| |||||||||||||
Net realized/unrealized gains (losses) from |
|
| 2,450,301 |
|
| 426,052 |
|
| 1,007,142 |
|
| (11,267,914 | ) |
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From |
| $ | 4,326,801 |
| $ | 676,750 |
| $ | 1,114,026 |
| $ | (9,524,869 | ) |
|
|
|
|
|
|
|
|
|
57 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||
| |||||||
Investment Income: |
|
|
|
|
|
|
|
Dividends |
| $ | 292,719 |
| $ | 567,167 |
|
|
|
|
| ||||
Total Investment Income (Loss) |
|
| 292,719 |
|
| 567,167 |
|
|
|
|
| ||||
| |||||||
Expenses: |
|
|
|
|
|
|
|
Investment Management |
|
| 418,743 |
|
| 112,278 |
|
Administration |
|
| 10,754 |
|
| 4,396 |
|
Accounting |
|
| 24,621 |
|
| 24,275 |
|
Compliance Service |
|
| 184 |
|
| 115 |
|
Custodian |
|
| 7,505 |
|
| 1,662 |
|
Printing |
|
| 221 |
|
| 397 |
|
Professional fees |
|
| 403 |
|
| 519 |
|
Trustee |
|
| 820 |
|
| 239 |
|
Other |
|
| 12,910 |
|
| 4,691 |
|
|
|
|
| ||||
Total Expenses |
|
| 476,161 |
|
| 148,572 |
|
|
|
|
| ||||
| |||||||
Net Investment Income (Loss) |
|
| (183,442 | ) |
| 418,595 |
|
|
|
|
| ||||
| |||||||
Net Realized/Unrealized Gains (Losses) |
|
|
|
|
|
|
|
Net realized losses from investment transactions |
|
| (18,090,240 | ) |
| (1,624,297 | ) |
Change in unrealized appreciation/depreciation |
|
| 12,416,564 |
|
| (1,507,018 | ) |
|
|
|
| ||||
| |||||||
Net realized/unrealized gains (losses) from |
|
| (5,673,676 | ) |
| (3,131,315 | ) |
|
|
|
| ||||
Change In Net Assets Resulting From Operations |
| $ | (5,857,118 | ) | $ | (2,712,720 | ) |
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 58 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Core Plus |
| Intermediate Duration |
| ||||||||
| |||||||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
| |||||||||||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 1,876,500 |
| $ | 5,103,577 |
| $ | 250,698 |
| $ | 602,838 |
|
Net realized gains (losses) from |
|
| (329,300 | ) |
| (1,760,929 | ) |
| 120,180 |
|
| (137,944 | ) |
Change in unrealized |
|
| 2,779,601 |
|
| (12,280,378 | ) |
| 305,872 |
|
| (1,515,259 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting |
|
| 4,326,801 |
|
| (8,937,730 | ) |
| 676,750 |
|
| (1,050,365 | ) |
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 779,241 |
|
| 13,894,668 |
|
| 293,480 |
|
| 3,554,894 |
|
Value of withdrawals |
|
| (17,351,215 | ) |
| (43,040,969 | ) |
| (1,852,552 | ) |
| (4,032,112 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (16,571,974 | ) |
| (29,146,301 | ) |
| (1,559,072 | ) |
| (477,218 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (12,245,173 | ) |
| (38,084,031 | ) |
| (882,322 | ) |
| (1,527,583 | ) |
| |||||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 81,727,877 |
|
| 119,811,908 |
|
| 13,530,986 |
|
| 15,058,569 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 69,482,704 |
| $ | 81,727,877 |
| $ | 12,648,664 |
| $ | 13,530,986 |
|
|
|
|
|
|
|
|
|
|
59 | 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) |
| $ | 106,884 |
| $ | 158,253 |
| $ | 1,743,045 |
| $ | 9,312,232 |
|
Net realized gains (losses) from |
|
| (12,863,368 | ) |
| (80,608 | ) |
| (56,073,611 | ) |
| 10,348,234 |
|
Change in unrealized |
|
| 13,870,510 |
|
| (42,269,939 | ) |
| 44,805,697 |
|
| (242,760,619 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| 1,114,026 |
|
| (42,192,294 | ) |
| (9,524,869 | ) |
| (223,100,153 | ) |
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 6,048,952 |
|
| 50,198,227 |
|
| 10,790,392 |
|
| 43,694,202 |
|
Value of withdrawals |
|
| (10,388,656 | ) |
| (15,750,298 | ) |
| (34,265,418 | ) |
| (76,346,748 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (4,339,704 | ) |
| 34,447,929 |
|
| (23,475,026 | ) |
| (32,652,546 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (3,225,678 | ) |
| (7,744,365 | ) |
| (32,999,895 | ) |
| (255,752,699 | ) |
| |||||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 81,941,512 |
|
| 89,685,877 |
|
| 199,308,910 |
|
| 455,061,609 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 78,715,834 |
| $ | 81,941,512 |
| $ | 166,309,015 |
| $ | 199,308,910 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 60 |
|
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) |
| $ | (183,442 | ) | $ | (854,296 | ) | $ | 418,595 |
| $ | 1,062,396 |
|
Net realized gains (losses) from |
|
| (18,090,240 | ) |
| 2,354,698 |
|
| (1,624,297 | ) |
| (7,776,127 | ) |
Change in unrealized |
|
| 12,416,564 |
|
| (73,360,727 | ) |
| (1,507,018 | ) |
| (25,258,253 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (5,857,118 | ) |
| (71,860,325 | ) |
| (2,712,720 | ) |
| (31,971,984 | ) |
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 4,180,538 |
|
| 20,402,348 |
|
| 3,017,348 |
|
| 12,224,588 |
|
Value of withdrawals |
|
| (15,404,154 | ) |
| (44,840,850 | ) |
| (6,840,136 | ) |
| (13,247,672 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from |
|
| (11,223,616 | ) |
| (24,438,502 | ) |
| (3,822,788 | ) |
| (1,023,084 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| (17,080,734 | ) |
| (96,298,827 | ) |
| (6,535,508 | ) |
| (32,995,068 | ) |
| |||||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 127,969,639 |
|
| 224,268,466 |
|
| 49,663,172 |
|
| 82,658,240 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 110,888,905 |
| $ | 127,969,639 |
| $ | 43,127,664 |
| $ | 49,663,172 |
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61 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
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HSBC INVESTOR PORTFOLIOS |
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| Ratio/Supplementary Data |
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| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||||
CORE PLUS FIXED INCOME PORTFOLIO |
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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 | % |
|
Year Ended October 31, 2008 |
| (8.78 | )% |
|
|
| 81,728 |
|
| 0.59 | % |
| 4.80 | % |
| 0.59 | % |
| 119.38 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| 6.05 | % |
|
|
| 69,483 |
|
| 0.68 | % |
| 5.11 | % |
| 0.68 | % |
| 17.88 | % |
|
INTERMEDIATE DURATION FIXED INCOME PORTFOLIO |
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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 | % |
|
Year Ended October 31, 2008 |
| (7.08 | )% |
|
|
| 13,531 |
|
| 0.91 | % |
| 4.15 | % |
| 0.91 | % |
| 124.23 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| 5.37 | % |
|
|
| 12,649 |
|
| 0.91 | % |
| 3.89 | % |
| 0.91 | % |
| 62.22 | % |
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GROWTH PORTFOLIO |
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Period Ended October 31, 2004 (f) |
| (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 | % |
|
Year Ended October 31, 2008 |
| (37.75 | )%(e) |
|
|
| 81,942 |
|
| 0.62 | % |
| 0.19 | % |
| 0.62 | % |
| 157.87 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| 2.05 | % |
|
|
| 78,716 |
|
| 0.70 | % |
| 0.29 | % |
| 0.70 | % |
| 33.58 | % |
|
INTERNATIONAL EQUITY PORTFOLIO |
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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 | % |
|
Year Ended October 31, 2008 |
| (51.95 | )% |
|
|
| 199,309 |
|
| 0.76 | % |
| 2.65 | % |
| 0.76 | % |
| 28.98 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| (4.47 | )% |
|
|
| 166,309 |
|
| 0.93 | % |
| 2.17 | % |
| 0.93 | % |
| 29.46 | % |
|
OPPORTUNITY PORTFOLIO |
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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 | % |
|
Year Ended October 31, 2008 |
| (35.30 | )% |
|
|
| 127,970 |
|
| 0.87 | % |
| (0.46 | )% |
| 0.87 | % |
| 80.42 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| (3.69 | )% |
|
|
| 110,889 |
|
| 0.91 | % |
| (0.35 | )% |
| 0.91 | % |
| 29.04 | % |
|
VALUE PORTFOLIO |
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Period Ended October 31, 2004 (f) |
| 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 | % |
|
Year Ended October 31, 2008 |
| (39.91 | )% |
|
|
| 49,663 |
|
| 0.64 | % |
| 1.54 | % |
| 0.64 | % |
| 24.61 | % |
|
Six Months Ended April 30, 2009 (Unaudited) |
| (4.59 | )% |
|
|
| 43,128 |
|
| 0.69 | % |
| 1.96 | % |
| 0.69 | % |
| 13.02 | % |
|
|
|
(a) | Not annualized for periods less than one year. |
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|
(b) | Annualized for periods less than one year. |
|
|
(c) | During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(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. |
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(e) | During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Portfolio related to violations of certain investment policies and limitations. The corresponding impact to the total return was 0.08%. |
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(f) | Growth Portfolio commenced operations on May 7, 2004. |
| Value Portfolio commenced operations on May 7, 2004. |
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63 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) |
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1. | Organization: |
|
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| The HSBC Investor Portfolios (the “Portfolio Trust”), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,” collectively the “Portfolios”): |
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|
Portfolio | Short Name |
HSBC Investor Core Plus Fixed Income Portfolio | Core Plus 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 all of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios. |
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|
| The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
|
|
| Under the Portfolio Trust’s organizational documents, the Portfolio Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolio Trust may enter into contracts with its service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolio Trust expects that risk of loss to be remote. |
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|
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. |
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| Securities Valuation: |
|
|
| Effective November 1, 2008, the Portfolio Trust adopted Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements.” There was no impact to the Portfolios’ net assets or results of operations upon adoption. SFAS 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. |
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|
| 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. |
|
|
| 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 Portfolio Trusts’ 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. |
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|
HSBC INVESTOR PORTFOLIOS | 64 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
| Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. |
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|
| Exchange traded futures contracts are valued at the last sales price as of the close of the primary exchange. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. |
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| 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. |
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|
| 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. |
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| Forward Foreign Currency Exchange Contracts: |
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|
| 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. |
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| Futures Contracts: |
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|
| Each Portfolio may invest in futures contracts for the purpose of hedging its 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. |
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|
| Mortgage Dollar Roll Transactions: |
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|
| The Core Plus 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 |
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65 | HSBC INVESTOR PORTFOLIOS |
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HSBC INVESTOR PORTFOLIOS |
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Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
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| date at an agreed upon price. During the roll period, the Portfolio will not be entitled to receive any interest or principal paid on the securities sold. The Portfolio is compensated for the lost interest on the securities sold by the difference between the sales price and the lower price for the future repurchase as well as by the interest earned on the reinvestment of the sales proceeds. The Portfolio may also be compensated by receipt of a commitment fee. |
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|
| Restricted and Illiquid Securities: |
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| 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 another exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the investment adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At April 30, 2009 the HSBC Core Plus Fixed Income Portfolio held restricted securities that were illiquid, representing 0.04% of net assets, as follows: |
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Security Name |
| Acquisition |
| Acquisition |
| Principal |
| Value($) |
| ||||
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|
|
|
| |||||||||
DLJ Mortgage Acceptance Corp. IO, Series 1997, |
| 5/15/1997 |
|
| 1,168 |
|
| 16,850 |
|
| 1 |
| |
FHA Weyerhauser, 7.43%, 1/1/24 |
| 3/28/2002 |
|
| 24,528 |
|
| 25,711 |
|
| 25,711 |
| |
GS Mortgage Securities Corp. IO, Series 1997-GL, |
| 8/14/1997 |
|
| 1,192 |
|
| 35,320 |
|
| 373 |
|
|
|
| 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 counter-party 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, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“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 |
|
|
HSBC INVESTOR PORTFOLIOS | 66 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
| reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. The FIN 48 analysis included a review of tax positions taken in tax years that remain subject to examination by tax authorities in all major tax jurisdictions, including federal (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). FIN 48 did not impact the Portfolios’ net assets or results of operations during the period. | ||
|
| ||
| New Accounting Pronouncements: | ||
|
| ||
| In March 2008, the Financial Accounting Standards Board (“FASB”) issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 will be effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Portfolios’ 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 Portfolios’ financial statements and related disclosures. | ||
|
| ||
| In April 2009, the FASB issued FASB Staff Position No. 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (“FSP 157-4”). FSP 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157, when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal years and interim periods ending after June 15, 2009. Management is currently evaluating the impact the adoption of FSP 157-4 will have on the Portfolios’ financial statement disclosures. | ||
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| ||
3. | Investment Valuation Summary | ||
|
| ||
|
| The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below: | |
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| |
|
| • | Level 1: quoted prices in active markets for identical assets |
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|
|
| • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
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|
|
| • | Level 3: significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
|
|
|
|
| The inputs or methodology used for valuing investments is not necessarily an indication of the risk associated with investing in those investments. For example, short-term debt securities of sufficient credit quality maturing in sixty days or less are generally valued at amortized cost, which approximates fair value. Generally, amortized cost approximates the current fair value of a security, but since the valuation is not obtained from a quoted price in an active market, such securities are reflected as Level 2. | ||
|
| ||
| The following is a summary of the valuation as of April 30, 2009 for each Fund based upon the three levels defined above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 – Quoted Prices |
| LEVEL 2 – Other Significant |
| ||||||||
|
|
|
| ||||||||||
Fund Name |
| Investment |
| Other Financial |
| Investment |
| Other Financial |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
|
| 7,693,048 |
|
| — |
|
| 85,888,024 |
|
| — |
|
Intermediate Duration Fixed Income Portfolio |
|
| 3,448,598 |
|
| — |
|
| 14,792,987 |
|
| — |
|
Growth Portfolio |
|
| 78,554,816 |
|
| — |
|
| — |
|
| — |
|
International Equity Portfolio |
|
| 14,280,193 |
|
| — |
|
| 150,153,576 |
|
| (711,542 | ) |
Opportunity Portfolio |
|
| 110,785,911 |
|
| — |
|
| — |
|
| — |
|
Value Portfolio |
|
| 43,066,817 |
|
| — |
|
| — |
|
| — |
|
|
|
67 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 3 – Significant |
| Total |
| ||||||||
|
|
|
| ||||||||||
Fund Name |
| Investment |
| Other Financial |
| Investment |
| Other Financial |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
|
| 25,711 |
|
| — |
|
| 93,606,783 |
|
| — |
|
Intermediate Duration Fixed |
|
| — |
|
| — |
|
| 18,241,585 |
|
| — |
|
Growth Portfolio |
|
| — |
|
| — |
|
| 78,554,816 |
|
| — |
|
International Equity Portfolio |
|
| — |
|
| — |
|
| 164,433,769 |
|
| (711,542 | ) |
Opportunity Portfolio |
|
| — |
|
| — |
|
| 110,785,911 |
|
| — |
|
Value Portfolio |
|
| — |
|
| — |
|
| 43,066,817 |
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
|
|
|
|
|
|
|
|
Core Plus Fixed Income Portfolio |
| Investment |
| Other Financial |
| ||
|
|
| |||||
Balance as of October 31, 2008 |
| $ | 26,158 |
| $ | — |
|
Realized gain (loss) |
|
| (27 | ) |
| — |
|
Change in unrealized appreciation/(depreciation) |
|
| (21 | ) |
| — |
|
Net purchases (sales) |
|
| (399 | ) |
| — |
|
Transfers in (out) of Level 3 |
|
| — |
|
| — |
|
|
|
|
| ||||
Balance as of April 30, 2009 |
| $ | 25,711 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intermediate Duration Fixed Income Portfolio |
| Investment |
| Other Financial |
| ||
|
|
| |||||
Balance as of October 31, 2008 |
| $ | — |
| $ | — |
|
Realized gain (loss) |
|
| — |
|
| — |
|
Change in unrealized appreciation/(depreciation) |
|
| — |
|
| — |
|
Net purchases (sales) |
|
| — |
|
| — |
|
Transfers in (out) of Level 3 |
|
| — |
|
| — |
|
|
|
|
| ||||
Balance as of April 30, 2009 |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
| * | Other financial instruments would include any derivative instruments, such as any futures, forwards, and swap agreements. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. |
|
|
|
|
|
|
4. | Related Party Transactions: | ||||
|
| ||||
| Investment Management: | ||||
|
| ||||
| HSBC Global Asset Management (USA) Inc. (“HSBC’’ or the “Investment Adviser’’), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Winslow Capital Management, Inc., AllianceBernstein 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 0.40% of the Intermediate Duration Fixed Income Portfolio’s average daily net assets. Halbis Capital Management, a wholly owned subsidiary of Halbis Capital Management (UK) Limited an affiliate of the Investment Adviser, serves as the Sub-Investment Advisor and is paid by the Investment Adviser. |
|
|
HSBC INVESTOR PORTFOLIOS | 68 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
| For its services, the Investment Adviser 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 Winslow Capital Management, Inc. (“Winslow”) receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
|
Based on Sub-Advised HSBC Investor Family of Funds Average Daily Net Assets of |
|
| Fee Rate* |
|
|
|
| ||
Up to $250 million |
|
| 0.575% |
|
In excess of $250 million but not exceeding $500 million |
|
| 0.525% |
|
In excess of $500 million but not exceeding $750 million |
|
| 0.475% |
|
In excess of $750 million but not exceeding $1 billion |
|
| 0.425% |
|
In excess of $1 billion |
|
| 0.375% |
|
|
|
|
| |
|
| |||
|
| * | The investment advisory contract provides that the Growth Portfolio may pay the Investment Adviser an aggregate maximum fee of 0.68%. Currently, the Investment Adviser’s share of the aggregate maximum fee rate is capped at 0.175%. Accordingly, the aggregate maximum fee rate is 0.575%. | |
|
|
|
| |
| 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% |
|
|
|
| All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time. |
|
|
|
|
69 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
| Administration: |
|
|
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC received from the Portfolios (as well as the other funds in the HSBC Investor Funds) a fee, accrued daily and paid monthly, during the period November 1, 2008 to December 31, 2008, 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% |
|
|
|
| Effective January 1, 2009, 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 $10 billion |
|
| 0.0550% |
|
In excess of $10 billion but not exceeding $20 billion |
|
| 0.0350% |
|
In excess of $20 billion but not exceeding $50 billion |
|
| 0.0275% |
|
In excess of $50 billion |
|
| 0.0250% |
|
|
|
| The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and HSBC Investor Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be received by treating them as apportioned in part to other funds makes investments in the Portfolios a master-feeder structures. |
|
|
| 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 Portfolio Trust as the other HSBC Investor Funds (the “Trusts”) and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $133,049 for the period ended April 30, 2009, 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 Trusts. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly. |
|
|
| Each of the non-interested Trustees is compensated with a $60,000 annual Board retainer for services as a Trustee of the Trusts and the other HSBC Investor Funds, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts and other HSBC Investor Funds. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
HSBC INVESTOR PORTFOLIOS | 70 |
|
HSBC INVESTOR PORTFOLIOS |
|
Notes to Financial Statements—as of April 30, 2009 (Unaudited) (continued) |
|
|
5. | Investment Transactions: |
|
|
| Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2009 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Name |
| Purchases |
| Sales |
| Purchases |
| Sales |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
| $ | 11,803,002 |
| $ | 50,830,863 |
| $ | 1,076,886 |
| $ | 265,202 |
|
Intermediate Duration Fixed Income Portfolio |
|
| 6,093,970 |
|
| 10,230,505 |
|
| 752,233 |
|
| 1,120,765 |
|
Growth Portfolio |
|
| 24,756,762 |
|
| 26,642,330 |
|
| — |
|
| — |
|
International Equity Portfolio |
|
| 47,378,470 |
|
| 66,117,358 |
|
| — |
|
| — |
|
Opportunity Portfolio |
|
| 30,428,251 |
|
| 40,680,839 |
|
| — |
|
| — |
|
Value Portfolio |
|
| 9,255,213 |
|
| 5,537,209 |
|
| — |
|
| — |
|
|
|
6. | Federal Income Tax Information: |
|
|
| At April 30, 2009, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
| Tax Cost of |
| Tax Unrealized |
| Tax Unrealized |
| Net Unrealized |
| ||||
|
|
|
|
| |||||||||
Core Plus Fixed Income Portfolio |
|
| 103,264,397 |
|
| 832,138 |
|
| (10,489,752 | ) |
| (9,657,614 | ) |
Intermediate Duration Portfolio |
|
| 19,536,927 |
|
| 115,226 |
|
| (1,410,568 | ) |
| (1,295,342 | ) |
Growth Portfolio |
|
| 84,398,334 |
|
| 4,783,687 |
|
| (10,627,205 | ) |
| (5,843,518 | ) |
International Equity Portfolio |
|
| 240,920,820 |
|
| 5,284,841 |
|
| (81,771,892 | ) |
| (76,487,051 | ) |
Opportunity Portfolio |
|
| 131,926,987 |
|
| 7,847,417 |
|
| (28,988,493 | ) |
| (21,141,076 | ) |
Value Portfolio |
|
| 57,029,091 |
|
| 2,994,252 |
|
| (16,956,526 | ) |
| (13,962,274 | ) |
|
|
* | The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales. |
|
|
|
|
7. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provides various services to the Portfolios as described in footnote 3, 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 Portfolios’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Portfolios’ management is currently unable to determine the impact, if any, of such matters on the Portfolios or the Portfolios’ financial statements, management does not anticipate a material, adverse impact to the Portfolios or the Portfolios’ financial statements. |
|
|
|
|
71 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
|
Investment Adviser Contract Approval—as of April 30, 2009 (Unaudited) |
|
|
|
| The Board of Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees (“Independent Trustees”), voting separately, approved the renewal, for a year, of the Investment Advisory Agreements and, where applicable Sub-Advisory Agreements (other than the Sub-Advisory Agreement with Halbis Capital Management (USA) Inc. (“Halbis”)), with respect to the respective series of the Trusts then existing (“Funds”) at an in-person meeting held on December 8, 2008. At that meeting, as well as at the regular meeting of the Board held on March 30, 2009, the Independent Trustees also reviewed and approved short-term extensions to the Sub-Advisory Agreement between the HSBC Global Asset Management (USA) Inc. (“Adviser”) and Halbis with respect to the HSBC Investor Core Plus Fixed Income Fund, HSBC Investor High Yield Fixed Income Fund, HSBC Investor Intermediate Duration Fixed Income Fund, and the HSBC Investor New York-Tax Free Bond Fund (the “Fixed Income Funds”) (the Investment Advisory Agreements and Sub-Advisory Agreements 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 subadvisers that they believed to be reasonably necessary to reach their 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 their 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 enabled the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees, along with the entire Board of Trustees, made these determinations on the basis of the following considerations, among others: | |
|
|
|
|
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the subadvisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Trustees considered the commitment of the Adviser to the successful operations of the Funds. The Trustees considered the historical performance of the Funds and the level of expenses of the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain Funds. The Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, the Independent Trustees also considered the Adviser’s and Halbis’ plans for the Fixed Income Funds. The Trustees also considered the extent to which the Adviser and investment Sub-Advisers had achieved economies of scale and the extent to which shareholders benefited from those economies of scale. |
|
|
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The 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 Trustees took note of performance information for one, three and five year periods and since inception as relevant. In addition, the 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 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 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 Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ 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 Funds, 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 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 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 Board of 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 meetings), approved the Agreements. |
|
|
HSBC INVESTOR PORTFOLIOS | 72 |
|
HSBC INVESTOR PORTFOLIOS |
|
Table of Shareholder Expenses (unaudited)—as of April 30, 2009 |
|
|
| As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Fund expenses. |
|
|
| These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds. |
|
|
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2008 through April 30, 2009. |
|
|
| 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 |
|
|
| Expenses Paid |
|
| Annualized |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Core Plus Fixed Income Portfolio |
|
| $ | 1,000.00 |
|
|
| $ | 1,060.50 |
|
|
| $ | 3.47 |
|
|
| 0.68 | % |
Intermediate Duration Fixed Income Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,053.70 |
|
|
|
| 4.63 |
|
|
| 0.91 | % |
Growth Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,020.50 |
|
|
|
| 3.51 |
|
|
| 0.70 | % |
International Equity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 955.30 |
|
|
|
| 4.51 |
|
|
| 0.93 | % |
Opportunity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 963.10 |
|
|
|
| 4.43 |
|
|
| 0.91 | % |
Value Portfolio |
|
|
| 1,000.00 |
|
|
|
| 954.10 |
|
|
|
| 3.34 |
|
|
| 0.69 | % |
|
|
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
|
|
| Hypothetical Example for Comparison Purposes |
|
|
| The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare 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. |
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| Beginning |
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| Ending |
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| Expenses Paid |
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| Annualized |
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Core Plus Fixed Income Portfolio |
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| $ | 1,000.00 |
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| $ | 1,021.42 |
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| $ | 3.41 |
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| 0.68 | % |
Intermediate Duration Fixed Income Portfolio |
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| 1,000.00 |
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| 1,020.28 |
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| 4.56 |
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| 0.91 | % |
Growth Portfolio |
|
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| 1,000.00 |
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|
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| 1,021.32 |
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| 3.51 |
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| 0.70 | % |
International Equity Portfolio |
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| 1,000.00 |
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| 1,020.18 |
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| 4.66 |
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| 0.93 | % |
Opportunity Portfolio |
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| 1,000.00 |
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| 1,020.28 |
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| 4.56 |
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| 0.91 | % |
Value Portfolio |
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| 1,000.00 |
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| 1,021.37 |
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| 3.46 |
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| 0.69 | % |
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* | 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). |
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73 | HSBC INVESTOR PORTFOLIOS |
A description of the policies and procedures that the Funds and Portfolios 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 Funds’ 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 Funds’ and Portfolios’ voting records for the most recent 12 month period ending June 30 are 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 Funds’ 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.
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HSBC INVESTOR PORTFOLIOS | 74 |
This page is intentionally left blank.
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HSBC INVESTOR FAMILY OF FUNDS: |
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INVESTMENT ADVISER AND ADMINISTRATOR |
HSBC Global Asset Management (USA) Inc. |
452 Fifth Avenue |
New York, NY 10018 |
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SUB-ADVISERS |
HSBC Investor Growth Portfolio |
Winslow Capital Management, Inc. |
4720 IDS Tower |
80th South Eighth Street |
Minneapolis, MN 55402 |
|
HSBC Investor International Equity Portfolio |
AllianceBernstein Investment Research and Management |
1345 Avenue of the Americas, 39th Floor |
New York, NY 10105 |
|
HSBC Investor Opportunity Portfolio |
Westfield Capital Management, LLC |
One Financial Center |
Boston, MA 02111 |
|
HSBC Investor Value Portfolio |
NWQ Investment Management Co., LLC |
2049 Century Park East, 16th Floor |
Los Angeles, CA 90067 |
|
HSBC Investor Core Plus Fixed Income Portfolio |
HSBC Investor Intermediate Duration Fixed |
Income Portfolio |
Halbis Capital Management (USA) Inc. |
452 Fifth Avenue, 18th Floor |
New York, NY 10018 |
|
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 |
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DISTRIBUTOR |
Foreside Distribution Services, L.P. |
690 Taylor Road, Suite 150 |
Gahanna, Ohio 43230-3202 |
|
CUSTODIAN |
The Northern Trust Company |
50 South LaSalle Street |
Chicago, IL 60603 |
|
INDEPENDENT REGISTERED PUBLIC |
ACCOUNTING FIRM |
KPMG LLP |
191 West Nationwide Blvd., Suite 500 |
Columbus, OH 43215 |
|
LEGAL COUNSEL |
Dechert LLP |
1775 I Street, N.W. |
Washington, D.C. 20006 |
The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.
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— NOT FDIC INSURED | — NO BANK GUARANTEE | — MAY LOSE VALUE |
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HSB-SR-LL | 06/09 |
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 | June 30, 2009 |
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 | June 30, 2009 |
By (Signature and Title)* | /s/ Troy A. Sheets |
Troy A. Sheets | |
Treasurer |
Date | June 30, 2009 |
* Print the name and title of each signing officer under his or her signature.