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, 2010
Item 1. Reports to Stockholders.
HSBC Global Asset Management (USA) Inc.
April 30, 2010
HSBC World Selection Funds
Semi-Annual Report
Aggressive Strategy Fund
Balanced Strategy Fund
Moderate Strategy Fund
Conservative Strategy Fund
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Table of Contents |
HSBC World Selection Funds
Semi-Annual Report - April 30, 2010
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HSBC Investor Portfolios |
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Barclays Capital Intermediate U.S. Aggregate Bond Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.
Barclays Capital U.S. Aggregate Bond Index is an unmanaged index generally representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.
Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.
Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped is an unmanaged market value-weighted index which covers the universe of fixed rate, non-investment grade debt.
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is an unmanaged index of three-month Treasury bills.
Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation, imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.
Group of 20 (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy.
MSCI EAFE Index (Europe, Australasia, Far East) which is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. The MSCI EAFE Index currently consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.
Russell 1000® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2000® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.
Securities indices assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Funds do not match those in the indices and performance of the Funds will differ. Investors cannot invest directly in an index.
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HSBC INVESTOR FAMILY OF FUNDS | 3 |
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June 3, 2010
To Our Shareholders:
Some calm prevailed in the U.S. financial markets in the first half of our current fiscal year. Signs of economic recovery, which included tentative upticks in consumer spending, housing, and continued very low interest rates soothed investors. After the tumult of the past two-plus years, this tranquility was most welcome. Then, however, the specter of sovereign defaults in the Southern Eurozone countries sparked a significant global sell-off in risk assets and a decline in the Euro, the countries’ common currency.
It reminded us again both of how inter-connected the world economy and markets truly are and of the importance of a global view even if one’s focus is largely on the U.S. market. One of your board’s most important duties is to monitor and analyze fund performance. We are immeasurably aided in this effort by the global MultiManager team of the Funds’ investment adviser, HSBC Global Asset Management (USA), Inc. With staff deployed around the world, they are equipped to assay events like those in the Eurozone area, to find and monitor superior managers, and to translate that into advantage for our fund offerings. In the section labeled “Finding the World’s Most Talented Investment Managers” we describe this valuable resource, which we believe significantly distinguishes our Funds from our competitors’.
Total assets in our Funds have declined slightly—a not-unexpected consequence of record low yields and investors’ somewhat renewed appetite for risk. Total assets declined to $24.9 billion at April 30, 2010, from $31.1 billion six months earlier, paced by a decline in our money market funds to $24.3 billion from $30.5 billion over the same period. Our investment advisor and service providers continue to waive a portion of their fees associated with the money market funds in order to limit expenses and maintain a competitive yield on these funds; these waivers amounted to approximately $13 million for the six months ended April 30, 2010.
Assets in our “long-term” funds, which include the HSBC World Selection Funds and the HSBC Investor equity funds, increased to $568.6 million as of April 30, 2010, from $521.0 million six months earlier. This increase reflects both shareholder activity and the change in value of the Funds’ investments. In general, the Funds performed very well. Of our five equity funds, three were in the top quartile of comparable funds, as measured by Lipper, Inc. for the five year period ended April 30, 2010. The four World Selection Funds converted from the previous LifeLine Funds with new asset allocation models and new underlying investments on January 19, 2010. Performance comparisons for the brief period of time from that date through April 30 are largely irrelevant, but all four funds posted positive returns for this brief period. More information on your funds’ performance is presented in the portfolio managers’ letters in this report.
Our annual report referred to the Jones v Harris Associates case that was then before the U.S. Supreme Court. We were pleased that in its ruling the Court essentially upheld the 25 year-old Gartenberg standard, which confirms the right of boards to set advisory fees.
In the regulatory area, the Securities and Exchange Commission (“SEC”) recently adopted several important amendments to Rule 2a-7, which governs money market funds. The changes, which relate in part to portfolio liquidity and increased transparency for investment holdings, are designed to help ensure that money market funds can meet redemption requirements, especially in a systemic crisis like that which afflicted The Reserve Fund in September 2008, causing it to “break the buck” and delay redemptions. The amendments also afford money market funds and their boards additional tools to help deal with such extraordinary circumstances. We are pleased to report that HSBC Global Asset Management, the investment advisor to the HSBC Investor money market funds, adopted internal investment policies that comply with the SEC’s new liquidity requirements in early 2009—well before they became law.
Also in the regulatory area, the SEC’s mutual fund chief has urged fund companies to consider enhancing their communications with shareholders, a directive we strongly support; we welcome shareholders’ input and suggestions on how we might do so. The SEC also has signaled its intent to review Rule 12b-1, which permits mutual funds to use a portion of their assets to promote sales of fund shares. We support this move and look forward to the Commission’s review.
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4 | HSBC INVESTOR FAMILY OF FUNDS |
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Chairman’s Message (continued) |
The advisor’s Chief Executive Officer recently retired from HSBC Global Asset Management (USA) Inc. and the Funds’ board of trustees. In light of this development, the independent trustees in April decided to keep the board at its current composition of six independent members.
Those of us who have managed money ourselves and served as fund directors for many years, evaluating the performance of our advisor and sub-advisors, are constantly reminded of how very hard it is to sustain superior investment performance—and how important it is to assure that above average results are being obtained without undue risk.
We believe that we have a great team of investment professionals working on your behalf and pledge our very best effort in seeing that they do their best for you.
Cordially,
![-s- Michael Seely](https://capedge.com/proxy/N-CSRS/0000930413-10-003803/c61784002_v1.jpg)
Michael Seely
Chairman, HSBC Investor Funds
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Finding the World’s Most Talented Investment Managers |
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Investors are faced with numerous decisions and literally thousands of choices when building their investment portfolio. Allocating among asset classes, investing directly in a security or selecting to invest in a fund, and choosing the right investment manager(s) are just a few of the decisions investors have to make. |
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HSBC Multimanager |
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Multimanager investment professionals research and recommend asset management firms on a full-time basis. They typically analyze numerous important factors, such as philosophy, process, team tenure, risk profiles and performance in order to recommend sound, talented investment management firms and teams. |
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Investors may want to consider employing the full-time expertise of a multimanager program. The knowledge and expertise of a dedicated team of specialists - who continuously evaluate local and global managers - can be very powerful. We believe HSBC Multimanager can assist investors in evaluating and recommending investment managers in order to help achieve long-term investment objectives. |
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*As of March 2010 |
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HSBC INVESTOR FAMILY OF FUNDS | 5 |
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Dear Shareholder,
Welcome to the HSBC Investor Funds semiannual report, covering the period between November 1, 2009 and April 30, 2010. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.
Inside these pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he describes developments in the Funds’ management and structure. The report also provides commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average.
We remain focused on providing value for shareholders. During this period we waived management and servicing fees on the HSBC Investor money market funds. This move enabled the funds to maintain positive yields for investors, despite the historically low level of short-term interest rates. Meanwhile, our Multimanager team continued to monitor the performance of the HSBC Investor equity funds’ sub-advisors and the underlying funds in the World Selection Funds. A description of our Multimanager team is also included as part of this report; we hope you find it to be of interest. We believe that Multimanager’s oversight has helped the Equity and World Selection Funds provide shareholders with competitive returns.
In closing, we would like to thank you for investing through the HSBC Investor Funds. We appreciate the trust you place in us, and will continue working to earn it. Please contact us at any time with questions or concerns.
Sincerely,
![-s- Richard A. Fabietti](https://capedge.com/proxy/N-CSRS/0000930413-10-003803/c61784003_v1.jpg)
Richard A. Fabietti
President
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6 | HSBC INVESTOR FAMILY OF FUNDS |
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HSBC Global Asset Management (USA) Inc. |
U.S. Economic Review
The six-month period ended April 30, 2010 began in the midst of a global economic recovery. Aggressive fiscal and monetary stimulus by governments around the world prior to the period laid the groundwork for a rebound. Indeed, the Federal Reserve Board held the federal funds rate at a historically low target range between 0.00% to 0.25%, and maintained that level throughout the period. At the beginning of the six months under review, encouraging corporate earnings results and improving consumer-spending levels suggested the rebound was gaining steam.
The global economic recovery experienced some setbacks during the period, however, primarily because of events in overseas markets such as the United Arab Emirates and the European Union. In the U.A.E., a government-owned holding company involved in prominent real estate projects unexpectedly announced a restructuring of its debt, shaking investor confidence in the credit markets. Later in the period economic difficulties in Greece and certain other E.U. countries spread through Europe, dampening the prospects for recovery in Europe and around the world.
U.S. and international economic data improved as the period progressed. However, as April drew to a close, rising unemployment figures and weakening consumer spending in some international markets led to questions about the stability of the global economic recovery.
Market Review
The economic recovery helped fuel a rally in the financial markets that lasted through much of the six months under review.
Investors early in the period became increasingly comfortable with investing in higher-risk areas of the financial markets, helping to fuel strong performance among emerging markets and small-cap stocks. While small-cap stocks continued to perform well during the period, mounting economic troubles in European countries including Greece, Portugal, Ireland, Italy and Spain halted the rally in international stocks, and emerging-markets stocks in particular resulting in a 2.68% return for the MSCI Europe, Australasia and Far East (EAFE) Index1.
During the period domestic stocks experienced much stronger returns. The S&P 500 Index1 of large-company stocks returned 15.66%, while the Russell 2000® Index1 of small-company stocks returned 28.17%. Early in the period investors were drawn to relatively low stock-market valuations. Subsequently, increased optimism about the strength and breadth of the U.S. economic recovery and improving corporate earnings drove the market’s strong gains.
Among fixed-income securities, the low interest rate environment in the beginning of the period led investors to seek out the additional yield available on higher-risk securities such as corporate bonds. The pursuit of higher yields initially led to low demand for government bonds. Demand increased slightly as the period wore on, but Treasuries still lagged the rest of the fixed-income market for the six months as a whole, in part because of concerns that the U.S. government would have to issue a significant amount of debt to cover the rising federal deficit.
The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad fixed-income market, returned 2.54% for the period, while the Barclays Capital U.S. Corporate High-Yield Bond Index1 returned 11.70%.
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1 | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 7 |
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Aggressive Strategy Fund |
Balanced Strategy Fund |
Moderate Strategy Fund |
Conservative Strategy Fund |
Investment Concerns
Allocation Risk: The risks that the Adviser’s target asset and sector allocations and changes in target asset and sector allocations cause a Fund to underperform other similar funds or cause you to lose money, and that a Fund may not achieve its target asset and sector allocations.
Underlying Fund Selection Risk: The risk that a Fund may invest in Underlying Funds that underperform other similar funds or the markets more generally, due to poor investment decisions by the investment adviser(s) for the Underlying Funds or otherwise. Underlying funds also have their own expenses, which the Funds bear in addition to their own expenses.
Equity Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in equity securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in equity securities.
Fixed Income Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in fixed-income securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in fixed-income securities.
Foreign Securities/Emerging Markets Risk: Foreign securities, including those of emerging market issuers, are subject to additional risks including international trade, currency, political, and regulatory risks. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed foreign markets.
Market Commentary
The HSBC World Selection Funds, Class A Shares (without sales charge), generated the following returns during the six-month period between November 1, 2009 and April 30, 2010:
Aggressive Strategy Fund: 13.43%
Balanced Strategy Fund: 11.85%
Moderate Strategy Fund: 9.96%
Conservative Strategy Fund: 7.62%
The Funds’ benchmark indices posted the following performance during the same period:
S&P 5001: 15.66%
MSCI EAFE1: 2.68%
Barclays Capital U.S. Aggregate Bond1: 2.54%
Citigroup U.S. Domestic 3-Month Treasury Bill1: 0.04%
The structure of the Funds changed during the period under review. We broadened their asset mix significantly: At the beginning of the period the four Funds, formerly known as the Lifeline Funds, offered exposure to a limited set of asset classes, including large and small-cap U.S. stocks, international stocks, fixed-income and short-term investments. As of January 19, 2010, we broadened the categories of asset classes used in each Fund to include enhancements such as emerging markets equity and debt, commodities and private equity. Our goal was to augment diversification and thereby improve the potential return each Fund offers at a given level of volatility.
The Funds’ manager selections within specific asset classes were the primary drivers of their returns for the six months through April, 2010. The managers of the Funds’ core fixed-income positions generally outperformed their respective benchmarks during the period. This development especially benefited the relative returns of World Selection Funds with larger fixed-income allocations, including the Conservative Strategy and Moderate Strategy Funds.
Meanwhile, the Funds’ underlying U.S. large and small/mid cap equity portfolios generally lagged their benchmarks. This trend reduced relative performance during the period, particularly for the Balanced Strategy and Aggressive Strategy Funds, which have sizable allocations to U.S. equities.
The Funds ended the period with equity allocations somewhat lighter than their neutral weightings, and with overweight stakes in defensive sectors such as health care and telecommunications. Their fixed-income allocations emphasized investment-grade and high-yield corporate debt over government bonds.
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1 | For additional information, please refer to the Glossary of Terms. |
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8 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
Aggressive Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2010 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
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World Selection Aggressive Strategy Fund Class A1 |
| 2/14/05 |
| 7.73 |
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| 31.63 |
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| 4.23 |
| 3.18 |
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| 2.16 |
| 1.50 |
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World Selection Aggressive Strategy Fund Class B2 |
| 2/9/05 |
| 8.88 |
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| 33.41 |
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| 4.51 |
| 3.45 |
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| 2.91 |
| 2.25 |
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World Selection Aggressive Strategy Fund Class C3 |
| 6/10/05 |
| 11.99 |
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| 36.58 |
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| — |
| 3.68 |
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| 2.91 |
| 2.25 |
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S&P 500 Index5 |
| — |
| 15.66 |
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| 38.85 |
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| 2.63 |
| 2.19 | 6 |
| N/A |
| N/A |
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MSCI EAFE Index5 |
| — |
| 2.68 |
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| 35.02 |
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| 4.34 |
| 4.03 | 6 |
| N/A |
| N/A |
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Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 2.54 |
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| 8.30 |
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| 5.38 |
| 5.16 | 6 |
| N/A |
| N/A |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.04 |
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| 0.12 |
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| 2.72 |
| 2.71 | 6 |
| N/A |
| N/A |
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Aggressive Growth Blended Portfolio Index5, 7 |
| — |
| 16.21 |
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| 41.28 |
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| 4.68 |
| 3.90 | 6 |
| N/A |
| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2010 through March 1, 2011.
During the periods ended October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
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5 | For additional information, please refer to the Glossary of Terms. |
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6 | Return for the period 1/31/05 to 4/30/10. |
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7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Aggressive Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Aggressive Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (34%) and the MSCI EAFE Index^ (23%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index. |
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^ | For additional information, please refer to the Glossary of Terms. |
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HSBC INVESTOR FAMILY OF FUNDS | 9 |
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Portfolio Reviews |
Balanced Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2010 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
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World Selection Balanced Strategy Fund Class A1 |
| 2/8/05 |
| 6.30 |
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| 28.08 |
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| 3.97 |
| 3.53 |
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| 1.60 |
| 1.60 |
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World Selection Balanced Strategy Fund Class B2 |
| 2/1/05 |
| 7.47 |
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| 29.79 |
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| 4.28 |
| 3.98 |
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| 2.35 |
| 2.35 |
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World Selection Balanced Strategy Fund Class C3 |
| 4/27/05 |
| 10.44 |
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| 32.81 |
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| 4.30 |
| 4.27 |
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| 2.35 |
| 2.35 |
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S&P 500 Index5 |
| — |
| 15.66 |
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| 38.85 |
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| 2.63 |
| 2.19 | 6 |
| N/A |
| N/A |
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MSCI EAFE Index5 |
| — |
| 2.68 |
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| 35.02 |
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| 4.34 |
| 4.03 | 6 |
| N/A |
| N/A |
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Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 2.54 |
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| 8.30 |
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| 5.38 |
| 5.16 | 6 |
| N/A |
| N/A |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.04 |
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| 0.12 |
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| 2.72 |
| 2.71 | 6 |
| N/A |
| N/A |
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Growth Blended Portfolio Index5, 7 |
| — |
| 13.18 |
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| 35.25 |
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| 4.76 |
| 4.17 | 6 |
| N/A |
| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.
The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower.
During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
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* | Aggregate total return. |
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** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
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5 | For additional information, please refer to the Glossary of Terms. |
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6 | Return for the period 1/31/05 to 4/30/10. |
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7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Citigroup U.S. High Yield Market Capped Index^ (2%); Barclays Capital U.S. Aggregate Bond Index^ (15%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (20%), and the MSCI EAFE Index^ (20%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index. |
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| The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 2% allocation for the Merrill Lynch U.S. High Yield Master II Index^. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
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^ | For additional information, please refer to the Glossary of Terms. |
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10 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews |
Moderate Strategy Fund |
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Fund Performance |
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| Expense |
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As of April 30, 2010 |
| Inception |
| Six |
| 1 |
| 5 |
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| Net |
| |||
World Selection Moderate Strategy Fund Class A1 |
| 2/3/05 |
| 4.47 |
|
| 23.03 |
|
| 3.61 |
| 3.17 |
|
| 1.58 |
| 1.58 |
|
World Selection Moderate Strategy Fund Class B2 |
| 2/1/05 |
| 5.59 |
|
| 24.58 |
|
| 3.89 |
| 3.53 |
|
| 2.33 |
| 2.33 |
|
World Selection Moderate Strategy Fund Class C3 |
| 6/10/05 |
| 8.54 |
|
| 27.61 |
|
| — |
| 3.34 |
|
| 2.33 |
| 2.33 |
|
S&P 500 Index5 |
| — |
| 15.66 |
|
| 38.85 |
|
| 2.63 |
| 2.19 | 6 |
| N/A |
| N/A |
|
MSCI EAFE Index5 |
| — |
| 2.68 |
|
| 35.02 |
|
| 4.34 |
| 4.03 | 6 |
| N/A |
| N/A |
|
Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 2.54 |
|
| 8.30 |
|
| 5.38 |
| 5.16 | 6 |
| N/A |
| N/A |
|
Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.04 |
|
| 0.12 |
|
| 2.72 |
| 2.71 | 6 |
| N/A |
| N/A |
|
Moderate Growth Blended Portfolio Index5, 7 |
| — |
| 10.54 |
|
| 29.01 |
|
| 4.84 |
| 4.38 | 6 |
| 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.
During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
|
|
* | Aggregate total return. |
|
|
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
|
|
1 | Reflects the maximum sales charge of 5.00%. |
|
|
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
|
|
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
|
|
4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
|
|
5 | For additional information, please refer to Glossary of Terms. |
|
|
6 | Return for the period 1/31/05 to 4/30/10. |
|
|
7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Moderate Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Moderate Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (6%); Barclays Capital U.S. Aggregate Bond Index^ (26%); Citigroup U.S. High Yield Market Capped Index^ (5%); Russell 1000® Growth Index^ (19%); Russell 1000® Value Index^ (18%); Russell 2500TM Growth Index^ (11%) and the MSCI EAFE Index^ (15%). |
|
|
| The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 5% allocation for the Merrill Lynch U.S. High Yield Master II Index^. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
|
|
^ | For additional information, please refer to the Glossary of Terms. |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 11 |
|
Portfolio Reviews |
Conservative Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Performance |
|
|
|
|
| Average Annual |
| Expense |
| |||||||||
As of April 30, 2010 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
| |||
World Selection Conservative Strategy Fund Class A1 |
| 2/23/05 |
| 2.21 |
|
| 16.76 |
|
| 3.16 |
| 2.76 |
|
| 1.79 |
| 1.79 |
|
World Selection Conservative Strategy Fund Class B2 |
| 2/17/05 |
| 3.14 |
|
| 17.75 |
|
| 3.46 |
| 2.91 |
|
| 2.54 |
| 2.54 |
|
World Selection Conservative Strategy Fund Class C3 |
| 4/19/05 |
| 6.19 |
|
| 20.74 |
|
| 3.66 |
| 3.53 |
|
| 2.54 |
| 2.54 |
|
S&P 500 Index7 |
| — |
| 15.66 |
|
| 38.85 |
|
| 2.63 |
| 2.19 | 6 |
| N/A |
| N/A |
|
MSCI EAFE Index5 |
| — |
| 2.68 |
|
| 35.02 |
|
| 4.34 |
| 4.03 | 6 |
| N/A |
| N/A |
|
Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 2.54 |
|
| 8.30 |
|
| 5.38 |
| 5.16 | 6 |
| N/A |
| N/A |
|
Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.04 |
|
| 0.12 |
|
| 2.72 |
| 2.71 | 6 |
| N/A |
| N/A |
|
Conservative Growth Blended Portfolio Index7, 8 |
| — |
| 7.69 |
|
| 21.83 |
|
| 4.74 |
| 4.40 | 6 |
| 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.
During the periods October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.
|
|
* | Aggregate total return. |
|
|
** | The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. |
|
|
1 | Reflects the maximum sales charge of 5.00%. |
|
|
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
|
|
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
|
|
4 | Reflects the expense ratio as reported in the prospectus dated March 31, 2010. |
|
|
5 | For additional information, please refer to the Glossary of Terms. |
|
|
6 | Return for the period 1/31/05 to 4/30/10. |
|
|
7 | Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Conservative Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Conservative Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (21%); Citigroup U.S. High Yield Market Capped Index^ (8%); Barclays Capital U.S. Aggregate Bond Index^ (25%); Barclays Capital Intermediate U.S. Aggregate Bond Index^ (3%); Russell 1000® Growth Index^ (15%); Russell 1000® Value Index^ (14%); Russell 2500TM Growth Index^ (4%) and the MSCI EAFE Index^ (10%). |
|
|
| The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects an 8% allocation for the Merrill Lynch U.S. High Yield Master II Index^. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009. |
|
|
^ | For additional information, please refer to the Glossary of Terms. |
|
|
12 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews |
April 30, 2010 |
(Unaudited) |
|
|
|
Aggressive Strategy Fund |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Affiliated Investment Companies |
| 6.6% |
Affiliated Portfolios |
| 58.6% |
Unaffiliated Investment Companies |
| 28.5% |
Exchange Traded Funds |
| 6.3% |
Total |
| 100.0% |
|
|
|
Balanced Strategy Fund |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Affiliated Investment Companies |
| 5.3% |
Affiliated Portfolios |
| 41.0% |
Unaffiliated Investment Companies |
| 48.5% |
Exchange Traded Funds |
| 5.2% |
Total |
| 100.0% |
|
|
|
Moderate Strategy Fund |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Affiliated Investment Companies |
| 4.2% |
Affiliated Portfolios |
| 29.1% |
Unaffiliated Investment Companies |
| 63.5% |
Exchange Traded Funds |
| 3.2% |
Total |
| 100.0% |
|
|
|
Conservative Strategy Fund |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Affiliated Investment Companies |
| 3.7% |
Affiliated Portfolios |
| 19.8% |
Unaffiliated Investment Companies |
| 75.4% |
Exchange Traded Funds |
| 1.1% |
Total |
| 100.0% |
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Information Technology |
| 40.5% |
Industrials |
| 13.0% |
Consumer Discretionary |
| 10.5% |
Energy |
| 9.0% |
Health Care |
| 9.0% |
Financials |
| 7.1% |
Consumer Staples |
| 4.6% |
Materials |
| 3.3% |
Cash and Equivalents |
| 3.0% |
Total |
| 100.0% |
|
|
|
HSBC International Equity Portfolio |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Europe |
| 61.4% |
Japan |
| 23.4% |
Australia & Far East |
| 9.5% |
Canada |
| 4.2% |
Cash |
| 1.0% |
Other |
| 0.5% |
Total |
| 100.0% |
|
|
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Information Technology |
| 22.3% |
Health Care |
| 19.5% |
Consumer Discretionary |
| 14.8% |
Industrials |
| 14.1% |
Energy |
| 11.7% |
Financials |
| 4.8% |
Materials |
| 4.5% |
Consumer Staples |
| 3.4% |
Cash and Cash Equivalents |
| 2.8% |
Telecommunication Services |
| 2.1% |
Total |
| 100.0% |
|
|
|
HSBC Investor Value Portfolio |
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
Financials |
| 21.3% |
Energy |
| 17.0% |
Health Care |
| 13.0% |
Industrials |
| 10.3% |
Information Technology |
| 10.1% |
Materials |
| 8.4% |
Consumer Staples |
| 7.8% |
Consumer Discretionary |
| 4.8% |
Cash and Cash Equivalents |
| 3.0% |
Telecommunication Services |
| 2.7% |
Utilities |
| 1.6% |
Total |
| 100.0% |
* Portfolio composition is subject to change.
|
|
HSBC INVESTOR FAMILY OF FUNDS | 13 |
(This Page Intentionally Left Blank)
|
AGGRESSIVE STRATEGY FUND |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Companies—6.6% |
|
|
|
|
|
|
|
HSBC Investor Mid-Cap Fund, Class I Shares |
|
| 95,690 |
|
| 678,440 |
|
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) |
|
| 118,781 |
|
| 118,781 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 797,221 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Affiliated Portfolios—58.4% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 2,674,279 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 1,058,476 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 665,429 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 2,673,929 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 7,072,113 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Unaffiliated Investment Companies—28.4% |
|
|
|
|
|
|
|
BlackRock Latin America Fund, Inc., Institutional Shares |
|
| 2,599 |
|
| 169,020 |
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 865 |
|
| 16,988 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 41,116 |
|
| 574,798 |
|
EII Global Property Fund, Institutional Shares |
|
| 1,255 |
|
| 16,631 |
|
Franklin Total Return Fund, Advisor Shares |
|
| 23,708 |
|
| 236,738 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 5,840 |
|
| 70,824 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 71,458 |
|
| 516,078 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 62,287 |
|
| 505,940 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) |
|
|
|
|
| 30,630 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 6,676 |
|
| 54,075 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 33,742 |
|
| 376,435 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 66,274 |
|
| 870,838 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 3,438,995 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Exchange Traded Funds—6.3% |
|
|
|
|
|
|
|
Consumer Staples Select Sector SPDR Fund |
|
| 1,749 |
|
| 48,325 |
|
Health Care Select Sector SPDR Fund |
|
| 1,687 |
|
| 52,179 |
|
iShares MSCI Turkey Investable Market Index Fund |
|
|
|
|
| 35,171 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 51,060 |
|
| 514,685 |
|
SPDR S&P International Consumer Staples Sector ETF |
|
| 1,456 |
|
| 41,117 |
|
SPDR S&P International Health Care Sector ETF |
|
| 1,114 |
|
| 31,682 |
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Exchange Traded Funds, continued |
|
|
|
|
|
|
|
SPDR S&P International Telecommunications Sector ETF |
|
| 1,040 |
|
| 23,296 |
|
Vanguard Telecommunication Services ETF |
|
| 237 |
|
| 13,428 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 759,883 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS—99.7% |
|
|
|
|
| 12,068,212 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $12,107,121. | |
|
|
|
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. | |
|
|
|
ETF | — Exchange Traded Fund | |
SPDR | — Standard & Poor’s Depositary Receipt |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 15 |
|
BALANCED STRATEGY FUND |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Companies—5.3% |
|
|
|
|
|
|
|
HSBC Investor Mid-Cap Fund, Class I Shares |
|
| 192,005 |
|
| 1,361,315 |
|
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) |
|
| 443,604 |
|
| 443,604 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 1,804,919 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Affiliated Portfolios—41.0% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 5,388,603 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 1,800,275 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 1,354,730 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 5,445,218 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 13,988,826 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Unaffiliated Investment Companies—48.5% |
|
|
|
|
|
|
|
BlackRock Latin America Fund, Inc., Institutional Shares |
|
| 3,446 |
|
| 224,136 |
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 13,326 |
|
| 261,581 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 58,023 |
|
| 811,166 |
|
EII Global Property Fund, Institutional Shares |
|
| 19,342 |
|
| 256,275 |
|
Franklin Total Return Fund, Advisor Shares |
|
| 177,152 |
|
| 1,768,992 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 200,870 |
|
| 2,435,943 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 305,993 |
|
| 2,210,187 |
|
Highbridge Statistical Market Neutral Fund, Select Shares |
|
| 11,135 |
|
| 173,925 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 274,270 |
|
| 2,227,803 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) |
|
|
|
|
| 134,616 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 268,500 |
|
| 2,174,847 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 236,144 |
|
| 2,634,724 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 94,128 |
|
| 1,236,837 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 16,551,032 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Exchange Traded Funds—5.1% |
|
|
|
|
|
|
|
Consumer Staples Select Sector SPDR Fund |
|
| 5,185 |
|
| 143,262 |
|
Health Care Select Sector SPDR Fund |
|
| 5,041 |
|
| 155,918 |
|
iShares MSCI Turkey Investable Market Index Fund |
|
|
|
|
| 69,053 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 105,728 |
|
| 1,065,738 |
|
SPDR S&P International Consumer Staples Sector ETF |
|
| 4,322 |
|
| 122,053 |
|
SPDR S&P International Health Care Sector ETF |
|
| 3,342 |
|
| 95,047 |
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Exchange Traded Funds, continued |
|
|
|
|
|
|
|
SPDR S&P International Telecommunications Sector ETF |
|
| 3,058 |
|
| 68,499 |
|
Vanguard Telecommunication Services ETF |
|
| 696 |
|
| 39,435 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 1,759,005 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS—99.9% |
|
|
|
|
| 34,103,782 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $34,130,573. | |
|
|
|
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. | |
|
|
|
ETF | — Exchange Traded Fund | |
SPDR | — Standard & Poor’s Depositary Receipt |
|
|
|
16 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
MODERATE STRATEGY FUND |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Companies—4.2% |
|
|
|
|
|
|
|
HSBC Investor Mid-Cap Fund, Class I Shares |
|
| 135,821 |
|
| 962,974 |
|
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) |
|
| 563,546 |
|
| 563,546 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 1,526,520 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Affiliated Portfolios—29.1% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 3,833,817 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 1,940,842 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 957,949 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 3,838,140 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 10,570,748 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Unaffiliated Investment Companies—63.5% |
|
|
|
|
|
|
|
BlackRock Latin America Fund, Inc., Institutional Shares |
|
| 2,656 |
|
| 172,760 |
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 11,933 |
|
| 234,248 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 45,393 |
|
| 634,587 |
|
EII Global Property Fund, Institutional Shares |
|
| 17,314 |
|
| 229,416 |
|
Franklin Total Return Fund, Advisor Shares |
|
| 392,784 |
|
| 3,922,283 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 240,353 |
|
| 2,914,984 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 322,716 |
|
| 2,331,222 |
|
Highbridge Statistical Market Neutral Fund, Select Shares |
|
| 33,760 |
|
| 527,326 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 288,918 |
|
| 2,346,855 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) |
|
| 45,981 |
|
| 45,981 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 345,175 |
|
| 2,795,916 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 531,472 |
|
| 5,929,930 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 77,431 |
|
| 1,017,437 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 23,102,945 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Exchange Traded Funds—3.2% |
|
|
|
|
|
|
|
Consumer Staples Select Sector SPDR Fund |
|
| 4,138 |
|
| 114,333 |
|
Health Care Select Sector SPDR Fund |
|
| 3,999 |
|
| 123,689 |
|
iShares MSCI Turkey Investable Market Index Fund |
|
|
|
|
| 37,687 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 60,380 |
|
| 608,630 |
|
SPDR S&P International Consumer Staples Sector ETF |
|
| 3,440 |
|
| 97,146 |
|
SPDR S&P International Health Care Sector ETF |
|
| 2,673 |
|
| 76,020 |
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Exchange Traded Funds, continued |
|
|
|
|
|
|
|
SPDR S&P International Telecommunications Sector ETF |
|
| 2,474 |
|
| 55,418 |
|
Vanguard Telecommunication Services ETF |
|
| 569 |
|
| 32,239 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 1,145,162 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS—100.0% |
|
|
|
|
| 36,345,375 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $36,354,535. | |
|
| |
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. | |
|
|
|
ETF | — Exchange Traded Fund | |
SPDR | — Standard & Poor’s Depositary Receipt |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 17 |
|
CONSERVATIVE STRATEGY FUND |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Companies—3.7% |
|
|
|
|
|
|
|
HSBC Investor Mid-Cap Fund, Class I Shares |
|
| 29,628 |
|
| 210,066 |
|
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a) |
|
| 244,370 |
|
| 244,370 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 454,436 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Affiliated Portfolios—20.0% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 810,714 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 606,824 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 212,437 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 819,283 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 2,449,258 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Unaffiliated Investment Companies—76.2% |
|
|
|
|
|
|
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 945 |
|
| 18,543 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 3,202 |
|
| 44,765 |
|
EII Global Property Fund, Institutional Shares |
|
| 1,370 |
|
| 18,156 |
|
Franklin Total Return Fund, Advisor Shares |
|
| 220,227 |
|
| 2,199,164 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 80,158 |
|
| 972,087 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 100,143 |
|
| 723,347 |
|
Highbridge Statistical Market Neutral Fund, Select Shares |
|
| 21,565 |
|
| 336,839 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 89,924 |
|
| 730,386 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a) |
|
| 142,678 |
|
| 142,678 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 811,207 |
|
| 811,207 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 293,696 |
|
| 3,276,871 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 5,302 |
|
| 69,671 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 9,343,714 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Exchange Traded Funds—1.2% |
|
|
|
|
|
|
|
Consumer Staples Select Sector SPDR Fund |
|
| 887 |
|
| 24,508 |
|
Health Care Select Sector SPDR Fund |
|
| 856 |
|
| 26,476 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 3,681 |
|
| 37,105 |
|
SPDR S&P International Consumer Staples Sector ETF |
|
| 739 |
|
| 20,869 |
|
SPDR S&P International Health Care Sector ETF |
|
| 580 |
|
| 16,495 |
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Exchange Traded Funds, continued |
|
|
|
|
|
|
|
SPDR S&P International Telecommunications Sector ETF |
|
| 542 |
|
| 12,141 |
|
Vanguard Telecommunication Services ETF |
|
| 124 |
|
| 7,026 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 144,620 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS—101.1% |
|
|
|
|
| 12,392,028 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $12,261,419. | |
|
|
|
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. | |
|
|
|
ETF | — Exchange Traded Fund | |
SPDR | — Standard & Poor’s Depositary Receipt |
|
|
|
18 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
(This Page Intentionally Left Blank)
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Balanced |
| Moderate |
| Conservative |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in Affiliated Portfolios |
| $ | 7,072,113 |
| $ | 13,988,826 |
| $ | 10,570,748 |
| $ | 2,449,258 |
|
Investments in Affiliated Funds, at value (a) |
|
| 797,221 |
|
| 1,804,919 |
|
| 1,526,520 |
|
| 454,436 |
|
Investments in non-affiliates, at value |
|
| 4,198,878 |
|
| 18,310,037 |
|
| 24,248,107 |
|
| 9,488,334 |
|
|
|
|
|
|
| ||||||||
Total Investments |
|
| 12,068,212 |
|
| 34,103,782 |
|
| 36,345,375 |
|
| 12,392,028 |
|
|
|
|
|
|
| ||||||||
Receivable for capital shares issued |
|
| 128,457 |
|
| 195,961 |
|
| 104,209 |
|
| 25,756 |
|
Receivable for investments sold |
|
| — |
|
| — |
|
| 997 |
|
| — |
|
Reclaims receivable |
|
| 7,118 |
|
| 18,024 |
|
| 15,108 |
|
| 3,305 |
|
Receivable from Investment Adviser |
|
| 1,111 |
|
| 1,362 |
|
| 1,472 |
|
| 489 |
|
Prepaid expenses and other assets |
|
| 6,395 |
|
| 9,705 |
|
| 8,979 |
|
| 5,183 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 12,211,293 |
|
| 34,328,834 |
|
| 36,476,140 |
|
| 12,426,761 |
|
|
|
|
|
|
| ||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investments purchased |
|
| 30,502 |
|
| 133,687 |
|
| 46,092 |
|
| 142,331 |
|
Payable for capital shares redeemed |
|
| 55,029 |
|
| 19,253 |
|
| 20,492 |
|
| 1,828 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 482 |
|
| 1,362 |
|
| 1,472 |
|
| 489 |
|
Administration |
|
| 185 |
|
| 524 |
|
| 565 |
|
| 188 |
|
Distribution |
|
| 3,071 |
|
| 9,341 |
|
| 11,057 |
|
| 4,006 |
|
Shareholder Servicing |
|
| 2,412 |
|
| 6,809 |
|
| 7,361 |
|
| 2,446 |
|
Compliance Services |
|
| — |
|
| 2 |
|
| 9 |
|
| — |
|
Transfer Agent |
|
| 8,593 |
|
| 11,451 |
|
| 15,013 |
|
| 7,500 |
|
Trustee |
|
| 11 |
|
| 25 |
|
| 22 |
|
| 3 |
|
Other |
|
| 3,887 |
|
| 15,807 |
|
| 19,522 |
|
| 6,551 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 104,172 |
|
| 198,261 |
|
| 121,605 |
|
| 165,342 |
|
|
|
|
|
|
| ||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 12,107,121 |
| $ | 34,130,573 |
| $ | 36,354,535 |
| $ | 12,261,419 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
| $ | 13,007,068 |
| $ | 36,143,009 |
| $ | 38,308,365 |
| $ | 12,800,657 |
|
Accumulated net investment income (loss) |
|
| (19,607 | ) |
| 140,964 |
|
| 63,136 |
|
| 23,056 |
|
Accumulated net realized gains (losses) from investment and foreign currency transactions |
|
| (1,728,422 | ) |
| (4,401,806 | ) |
| (4,362,315 | ) |
| (1,214,633 | ) |
Unrealized appreciation/depreciation from investments and foreign currencies |
|
| 848,082 |
|
| 2,248,406 |
|
| 2,345,349 |
|
| 652,339 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 12,107,121 |
| $ | 34,130,573 |
| $ | 36,354,535 |
| $ | 12,261,419 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 6,976,779 |
| $ | 18,397,961 |
| $ | 18,183,475 |
| $ | 5,543,463 |
|
Class B Shares |
|
| 4,619,902 |
|
| 13,220,905 |
|
| 16,366,716 |
|
| 6,024,269 |
|
Class C Shares |
|
| 510,440 |
|
| 2,511,707 |
|
| 1,804,344 |
|
| 693,687 |
|
|
|
|
|
|
| ||||||||
|
| $ | 12,107,121 |
| $ | 34,130,573 |
| $ | 36,354,535 |
| $ | 12,261,419 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.001 par value, unlimited number of shares authorized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 603,124 |
|
| 1,602,778 |
|
| 1,655,559 |
|
| 519,736 |
|
Class B Shares |
|
| 414,906 |
|
| 1,151,654 |
|
| 1,491,172 |
|
| 570,772 |
|
Class C Shares |
|
| 45,858 |
|
| 218,018 |
|
| 168,490 |
|
| 63,964 |
|
Net Asset Value, Offering Price and Redemption Price per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 11.57 |
| $ | 11.48 |
| $ | 10.98 |
| $ | 10.67 |
|
Class B Shares(b) |
| $ | 11.13 |
| $ | 11.48 |
| $ | 10.98 |
| $ | 10.55 |
|
Class C Shares(b) |
| $ | 11.13 |
| $ | 11.52 |
| $ | 10.71 |
| $ | 10.84 |
|
Maximum Sales Charge—Class A Shares |
|
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
|
|
|
|
|
| ||||||||
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares |
| $ | 12.18 |
| $ | 12.08 |
| $ | 11.56 |
| $ | 11.23 |
|
|
|
|
|
|
| ||||||||
Investments in Affiliated Funds, at Cost |
| $ | 779,317 |
| $ | 1,840,237 |
| $ | 1,500,323 |
| $ | 578,055 |
|
Investments in non-affiliates, at Cost |
| $ | 3,978,897 |
| $ | 17,168,347 |
| $ | 33,318,648 |
| $ | 6,886,985 |
|
|
|
|
|
|
|
|
|
(a) | The investment in the affiliated funds is the HSBC Investor Prime Money Market Fund, Class I Shares and HSBC Investor Mid-Cap Fund, Class I Shares (See Note 1). |
|
|
(b) | Redemption Price per share varies by length of time shares are held. |
|
|
|
20 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Operations—For the six months ended April 30, 2010 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Balanced |
| Moderate |
| Conservative |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income from non-affiliates |
| $ | 30,330 |
| $ | 283,769 |
| $ | 431,403 |
| $ | 166,134 |
|
Investment Income from Affiliated Portfolios (a) |
|
| 43,770 |
|
| 103,055 |
|
| 91,681 |
|
| 21,863 |
|
Investment Income from Affiliated Fund |
|
| 47 |
|
| 179 |
|
| 653 |
|
| 647 |
|
Tax reclaims (a) |
|
| 1,986 |
|
| (114 | ) |
| 541 |
|
| 2,509 |
|
Foreign tax withholding from Affiliated Portfolios (a) |
|
| (1,415 | ) |
| (3,141 | ) |
| (2,998 | ) |
| (779 | ) |
Expenses from Affiliated Portfolios (a) |
|
| (29,459 | ) |
| (65,849 | ) |
| (54,981 | ) |
| (12,150 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income (Loss) |
|
| 45,259 |
|
| 317,899 |
|
| 466,299 |
|
| 178,224 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 2,589 |
|
| 7,569 |
|
| 8,414 |
|
| 2,753 |
|
Administration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 587 |
|
| 1,609 |
|
| 1,668 |
|
| 507 |
|
Class B Shares |
|
| 400 |
|
| 1,158 |
|
| 1,480 |
|
| 519 |
|
Class C Shares |
|
| 34 |
|
| 175 |
|
| 164 |
|
| 57 |
|
Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares |
|
| 15,228 |
|
| 44,726 |
|
| 56,401 |
|
| 19,799 |
|
Class C Shares |
|
| 1,313 |
|
| 6,779 |
|
| 6,278 |
|
| 2,186 |
|
Shareholder Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 7,439 |
|
| 20,710 |
|
| 21,193 |
|
| 6,438 |
|
Class B Shares |
|
| 5,079 |
|
| 14,907 |
|
| 18,806 |
|
| 6,599 |
|
Class C Shares |
|
| 438 |
|
| 2,260 |
|
| 2,092 |
|
| 725 |
|
Accounting |
|
| 9,428 |
|
| 9,428 |
|
| 9,428 |
|
| 9,428 |
|
Compliance Service |
|
| 18 |
|
| 60 |
|
| 72 |
|
| 18 |
|
Printing |
|
| 6,471 |
|
| 17,711 |
|
| 18,404 |
|
| 6,978 |
|
Professional |
|
| 1,332 |
|
| 1,599 |
|
| 1,654 |
|
| 1,340 |
|
Transfer Agent |
|
| 24,280 |
|
| 36,896 |
|
| 37,278 |
|
| 19,908 |
|
Trustee |
|
| 63 |
|
| 185 |
|
| 203 |
|
| 63 |
|
Registration fees |
|
| 5,182 |
|
| 3,867 |
|
| 6,730 |
|
| 1,948 |
|
Other |
|
| 1,067 |
|
| 1,443 |
|
| 1,319 |
|
| 526 |
|
|
|
|
|
|
| ||||||||
Total expenses before fee reductions |
|
| 80,948 |
|
| 171,082 |
|
| 191,584 |
|
| 79,792 |
|
Fees reduced by Investment Adviser |
|
| (16,082 | ) |
| (7,569 | ) |
| (8,414 | ) |
| (2,753 | ) |
|
|
|
|
|
| ||||||||
Net Expenses |
|
| 64,866 |
|
| 163,513 |
|
| 183,170 |
|
| 77,039 |
|
|
|
|
|
|
| ||||||||
Net Investment Income (Loss) |
|
| (19,607 | ) |
| 154,386 |
|
| 283,129 |
|
| 101,185 |
|
|
|
|
|
|
| ||||||||
Net Realized/Unrealized Gains (Losses) from Investments: (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investments and foreign currency transactions |
|
| 392,904 |
|
| 947,576 |
|
| 823,970 |
|
| 184,663 |
|
Net realized gains (losses) from non-affiliates investment transactions |
|
| (3,913 | ) |
| 140,634 |
|
| 258,555 |
|
| 143,383 |
|
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 851,685 |
|
| 1,680,088 |
|
| 922,825 |
|
| 38,777 |
|
Change in unrealized appreciation/depreciation from non-affiliates investments |
|
| 31,593 |
|
| 377,067 |
|
| 801,949 |
|
| 319,546 |
|
|
|
|
|
|
| ||||||||
Net realized/unrealized gains from investments and foreign currency transactions |
|
| 1,272,269 |
|
| 3,145,365 |
|
| 2,807,299 |
|
| 686,369 |
|
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | 1,252,662 |
| $ | 3,299,751 |
| $ | 3,090,428 |
| $ | 787,554 |
|
|
|
|
|
|
|
|
|
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
|
|
|
See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 21 |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive Strategy Fund |
| Balanced Strategy Fund |
| ||||||||
|
| For the |
| For the |
| For the |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (19,607 | ) | $ | (19,050 | ) | $ | 154,386 |
| $ | 121,934 |
|
Net realized gains (losses) from investments transactions |
|
| 388,991 |
|
| (1,143,628 | ) |
| 1,088,210 |
|
| (3,219,284 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 883,278 |
|
| 2,619,167 |
|
| 2,057,155 |
|
| 7,340,545 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 1,252,662 |
|
| 1,456,489 |
|
| 3,299,751 |
|
| 4,243,195 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| — |
|
| — |
|
| (120,819 | ) |
| (139,550 | ) |
Class B Shares |
|
| — |
|
| — |
|
| (13,178 | ) |
| (7,901 | ) |
Class C Shares |
|
| — |
|
| — |
|
| (2,103 | ) |
| (1,544 | ) |
Net realized gains: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| — |
|
| — |
|
| (136,100 | ) |
| (148,995 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 1,372,170 |
|
| (31,438 | ) |
| 2,959,596 |
|
| (447,939 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 2,624,832 |
|
| 1,425,051 |
|
| 6,123,247 |
|
| 3,646,261 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 9,482,289 |
|
| 8,057,238 |
|
| 28,007,326 |
|
| 24,361,065 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 12,107,121 |
| $ | 9,482,289 |
| $ | 34,130,573 |
| $ | 28,007,326 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | (19,607 | ) | $ | — |
| $ | 140,964 |
| $ | 122,678 |
|
|
|
|
|
|
|
|
|
|
22 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive Strategy Fund |
| Balanced Strategy Fund |
| ||||||||
|
| For the |
| For the |
| For the |
| For the |
| ||||
CAPITAL TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
| $ | 1,361,849 |
| $ | 919,824 |
| $ | 2,238,678 |
| $ | 1,604,683 |
|
Dividends reinvested |
|
| — |
|
| — |
|
| 118,661 |
|
| 138,893 |
|
Value of shares redeemed |
|
| (538,750 | ) |
| (913,945 | ) |
| (975,785 | ) |
| (2,526,023 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 823,099 |
|
| 5,879 |
|
| 1,381,554 |
|
| (782,447 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 683,673 |
|
| 424,668 |
|
| 1,546,547 |
|
| 935,667 |
|
Dividends reinvested |
|
| — |
|
| — |
|
| 13,153 |
|
| 7,888 |
|
Value of shares redeemed |
|
| (319,561 | ) |
| (383,617 | ) |
| (805,807 | ) |
| (915,409 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 364,112 |
|
| 41,051 |
|
| 753,893 |
|
| 28,146 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 234,220 |
|
| 16,971 |
|
| 994,706 |
|
| 496,755 |
|
Dividends reinvested |
|
| — |
|
| — |
|
| 2,040 |
|
| 1,544 |
|
Value of shares redeemed |
|
| (49,261 | ) |
| (95,339 | ) |
| (172,597 | ) |
| (191,937 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 184,959 |
|
| (78,368 | ) |
| 824,149 |
|
| 306,362 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets resulting from capital transactions |
| $ | 1,372,170 |
| $ | (31,438 | ) | $ | 2,959,596 |
| $ | (447,939 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 119,591 |
|
| 108,502 |
|
| 198,538 |
|
| 177,228 |
|
Reinvested |
|
| — |
|
| — |
|
| 10,886 |
|
| 17,211 |
|
Redeemed |
|
| (48,338 | ) |
| (107,013 | ) |
| (87,354 | ) |
| (293,206 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 71,253 |
|
| 1,489 |
|
| 122,070 |
|
| (98,767 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 62,603 |
|
| 50,718 |
|
| 136,886 |
|
| 104,902 |
|
Reinvested |
|
| — |
|
| — |
|
| 1,203 |
|
| 973 |
|
Redeemed |
|
| (29,866 | ) |
| (45,783 | ) |
| (72,366 | ) |
| (105,971 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 32,737 |
|
| 4,935 |
|
| 65,723 |
|
| (96 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 21,113 |
|
| 2,243 |
|
| 87,730 |
|
| 58,266 |
|
Reinvested |
|
| — |
|
| — |
|
| 186 |
|
| 190 |
|
Redeemed |
|
| (4,566 | ) |
| (11,023 | ) |
| (15,511 | ) |
| (19,296 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 16,547 |
|
| (8,780 | ) |
| 72,405 |
|
| 39,160 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class I Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 23 |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Moderate Strategy Fund |
| Conservative Strategy Fund |
| ||||||||
|
| For the |
| For the |
| For the |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | 283,129 |
| $ | 304,905 |
| $ | 101,185 |
| $ | 110,589 |
|
Net realized gains (losses) from investments transactions |
|
| 1,082,525 |
|
| (3,357,874 | ) |
| 328,046 |
|
| (973,853 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 1,724,774 |
|
| 7,600,975 |
|
| 358,323 |
|
| 2,220,121 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 3,090,428 |
|
| 4,548,006 |
|
| 787,554 |
|
| 1,356,857 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (161,983 | ) |
| (193,616 | ) |
| (50,136 | ) |
| (71,561 | ) |
Class B Shares |
|
| (93,454 | ) |
| (84,484 | ) |
| (34,946 | ) |
| (34,422 | ) |
Class C Shares |
|
| (10,985 | ) |
| (9,513 | ) |
| (4,342 | ) |
| (3,180 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| (266,422 | ) |
| (287,613 | ) |
| (89,424 | ) |
| (109,163 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 1,903,069 |
|
| (620,407 | ) |
| 1,112,967 |
|
| (322,434 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 4,727,075 |
|
| 3,639,986 |
|
| 1,811,097 |
|
| 925,260 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 31,627,460 |
|
| 27,987,474 |
|
| 10,450,322 |
|
| 9,525,062 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 36,354,535 |
| $ | 31,627,460 |
| $ | 12,261,419 |
| $ | 10,450,322 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | 63,136 |
| $ | 46,429 |
| $ | 23,056 |
| $ | 11,295 |
|
|
|
|
|
|
|
|
|
|
24 | HSBC INVESTOR WORLD SELECTION FUNDS | See notes to financial statements |
HSBC INVESTOR WORLD SELECTION FUNDS
Statements of Changes in Net Assets (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Moderate Strategy Fund |
| Conservative Strategy Fund |
| ||||||||
|
| For the |
| For the |
| For the |
| For the |
| ||||
CAPITAL TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
| $ | 2,118,615 |
| $ | 1,737,577 |
| $ | 841,920 |
| $ | 845,986 |
|
Dividends reinvested |
|
| 161,115 |
|
| 193,104 |
|
| 48,013 |
|
| 69,473 |
|
Value of shares redeemed |
|
| (1,432,756 | ) |
| (2,409,781 | ) |
| (738,972 | ) |
| (1,218,686 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 846,974 |
|
| (479,100 | ) |
| 150,961 |
|
| (303,227 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 1,812,380 |
|
| 1,513,370 |
|
| 1,139,617 |
|
| 770,085 |
|
Dividends reinvested |
|
| 92,776 |
|
| 84,267 |
|
| 34,378 |
|
| 33,341 |
|
Value of shares redeemed |
|
| (1,030,345 | ) |
| (1,629,024 | ) |
| (385,380 | ) |
| (820,164 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 874,811 |
|
| (31,387 | ) |
| 788,615 |
|
| (16,738 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 407,233 |
|
| 297,893 |
|
| 287,457 |
|
| 79,844 |
|
Dividends reinvested |
|
| 10,888 |
|
| 9,424 |
|
| 4,172 |
|
| 3,101 |
|
Value of shares redeemed |
|
| (236,837 | ) |
| (417,237 | ) |
| (118,238 | ) |
| (85,414 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 181,284 |
|
| (109,920 | ) |
| 173,391 |
|
| (2,469 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets resulting from capital transactions |
| $ | 1,903,069 |
| $ | (620,407 | ) | $ | 1,112,967 |
| $ | (322,434 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 197,298 |
|
| 194,386 |
|
| 80,117 |
|
| 94,440 |
|
Reinvested |
|
| 15,013 |
|
| 22,198 |
|
| 4,583 |
|
| 7,802 |
|
Redeemed |
|
| (134,164 | ) |
| (275,784 | ) |
| (70,561 | ) |
| (133,563 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 78,147 |
|
| (59,200 | ) |
| 14,139 |
|
| (31,321 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 167,722 |
|
| 172,132 |
|
| 109,333 |
|
| 87,053 |
|
Reinvested |
|
| 8,631 |
|
| 9,836 |
|
| 3,310 |
|
| 3,828 |
|
Redeemed |
|
| (96,547 | ) |
| (191,599 | ) |
| (37,149 | ) |
| (91,989 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 79,806 |
|
| (9,631 | ) |
| 75,494 |
|
| (1,108 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 38,848 |
|
| 33,657 |
|
| 26,977 |
|
| 8,443 |
|
Reinvested |
|
| 1,038 |
|
| 1,125 |
|
| 391 |
|
| 348 |
|
Redeemed |
|
| (22,632 | ) |
| (49,433 | ) |
| (11,041 | ) |
| (8,952 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 17,254 |
|
| (14,651 | ) |
| 16,327 |
|
| (161 | ) |
|
|
|
|
|
|
|
|
|
See notes to financial statements | HSBC INVESTOR WORLD SELECTION FUNDS | 25 |
|
AGGRESSIVE STRATEGY FUND |
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| Investment Activities |
| Dividends |
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net Realized |
| Total |
| Net Asset |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(i) |
| $ | 10.00 |
|
| (0.01 | ) |
| 0.61 |
|
| 0.60 |
|
| — |
|
| — |
| $ | 10.60 |
|
Year Ended October 31, 2006 |
| $ | 10.60 |
|
| 0.01 |
|
| 2.01 |
|
| 2.02 |
|
| (0.05 | ) |
| (0.05 | ) |
| 12.57 |
|
Year Ended October 31, 2007 |
| $ | 12.57 |
|
| — | *(g) |
| 2.98 |
|
| 2.98 |
|
| — |
|
| — |
|
| 15.55 |
|
Year Ended October 31, 2008 |
| $ | 15.55 |
|
| 0.02 | * |
| (6.05 | ) |
| (6.03 | ) |
| (0.90 | ) |
| (0.90 | ) |
| 8.62 |
|
Year Ended October 31, 2009 |
| $ | 8.62 |
|
| 0.01 | * |
| 1.57 |
|
| 1.58 |
|
| — |
|
| — |
|
| 10.20 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.20 |
|
| — | *(g) |
| 1.37 |
|
| 1.37 |
|
| — |
|
| — |
|
| 11.57 |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
| $ | 10.00 |
|
| (0.04 | ) |
| 0.61 |
|
| 0.57 |
|
| — |
|
| — |
| $ | 10.57 |
|
Year Ended October 31, 2006 |
| $ | 10.57 |
|
| (0.05 | ) |
| 1.97 |
|
| 1.92 |
|
| (0.05 | ) |
| (0.05 | ) |
| 12.44 |
|
Year Ended October 31, 2007 |
| $ | 12.44 |
|
| (0.11 | )* |
| 2.94 |
|
| 2.83 |
|
| — |
|
| — |
|
| 15.27 |
|
Year Ended October 31, 2008 |
| $ | 15.27 |
|
| (0.08 | )* |
| (5.90 | ) |
| (5.98 | ) |
| (0.90 | ) |
| (0.90 | ) |
| 8.39 |
|
Year Ended October 31, 2009 |
| $ | 8.39 |
|
| (0.06 | )* |
| 1.53 |
|
| 1.47 |
|
| — |
|
| — |
|
| 9.86 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 9.86 |
|
| (0.04 | )* |
| 1.31 |
|
| 1.27 |
|
| — |
|
| — |
|
| 11.13 |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
| $ | 10.00 |
|
| (0.05 | ) |
| 0.60 |
|
| 0.55 |
|
| — |
|
| — |
| $ | 10.55 |
|
Year Ended October 31, 2006 |
| $ | 10.55 |
|
| (0.04 | ) |
| 1.95 |
|
| 1.91 |
|
| (0.05 | ) |
| (0.05 | ) |
| 12.41 |
|
Year Ended October 31, 2007 |
| $ | 12.41 |
|
| (0.11 | )* |
| 2.96 |
|
| 2.85 |
|
| — |
|
| — |
|
| 15.26 |
|
Year Ended October 31, 2008 |
| $ | 15.26 |
|
| (0.08 | )* |
| (5.89 | ) |
| (5.97 | ) |
| (0.90 | ) |
| (0.90 | ) |
| 8.39 |
|
Year Ended October 31, 2009 |
| $ | 8.39 |
|
| (0.05 | )* |
| 1.51 |
|
| 1.46 |
|
| — |
|
| — |
|
| 9.85 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 9.85 |
|
| (0.04 | )* |
| 1.32 |
|
| 1.28 |
|
| — |
|
| — |
|
| 11.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| ||||||||||||||
|
|
|
|
| ||||||||||||||||
|
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(i) |
|
|
| 6.00 | % | $ | 726 |
|
| 1.50 | % |
| (0.20 | )% |
| 11.72 | % |
| 49.10 | % |
Year Ended October 31, 2006 |
|
|
| 19.15 | % |
| 4,116 |
|
| 1.50 | % |
| 0.05 | % |
| 3.52 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
|
| 23.71 | % |
| 7,046 |
|
| 1.50 | % |
| (0.03 | )% |
| 2.27 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
|
| (40.92 | )%(f) |
| 4,572 |
|
| 1.50 | % |
| 0.13 | % |
| 1.98 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
|
| 18.33 | %(h) |
| 5,426 |
|
| 1.50 | % |
| 0.09 | % |
| 2.16 | % |
| 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 13.43 | % |
| 6,977 |
|
| 1.50 | % |
| (0.06 | )% |
| 1.81 | % |
| 22.38 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
|
|
| 5.70 | % | $ | 700 |
|
| 2.25 | % |
| (1.01 | )% |
| 11.63 | % |
| 49.10 | % |
Year Ended October 31, 2006 |
|
|
| 18.25 | % |
| 2,998 |
|
| 2.25 | % |
| (0.70 | )% |
| 4.33 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
|
| 22.75 | % |
| 4,942 |
|
| 2.25 | % |
| (0.77 | )% |
| 3.02 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
|
| (41.36 | )%(f) |
| 3,166 |
|
| 2.25 | % |
| (0.62 | )% |
| 2.73 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
|
| 17.52 | %(h) |
| 3,767 |
|
| 2.25 | % |
| (0.66 | )% |
| 2.91 | % |
| 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 12.88 | % |
| 4,620 |
|
| 2.25 | % |
| (0.81 | )% |
| 2.56 | % |
| 22.38 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
|
|
| 5.50 | % | $ | 21 |
|
| 2.25 | % |
| (1.15 | )% |
| 9.79 | % |
| 49.10 | % |
Year Ended October 31, 2006 |
|
|
| 18.19 | % |
| 229 |
|
| 2.25 | % |
| (0.69 | )% |
| 4.20 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
|
| 22.97 | % |
| 528 |
|
| 2.25 | % |
| (0.79 | )% |
| 2.99 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
|
| (41.32 | )%(f) |
| 319 |
|
| 2.25 | % |
| (0.64 | )% |
| 2.73 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
|
| 17.40 | %(h) |
| 289 |
|
| 2.25 | % |
| (0.59 | )% |
| 2.93 | % |
| 53.42 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 12.99 | % |
| 510 |
|
| 2.25 | % |
| (0.81 | )% |
| 2.56 | % |
| 22.38 | % |
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investments companies by their corresponding portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(g) | Rounds to less than $0.01 or $(0.01). |
|
|
(h) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | Class A Shares commenced operations on February 14, 2005. |
|
|
(j) | Class B Shares commenced operations on February 9, 2005. |
|
|
(k) | Class C Shares commenced operations on June 9, 2005. |
|
|
26 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
BALANCED STRATEGY FUND |
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| Investment Activities |
| Dividends |
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Total |
| Net Asset |
| ||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(i) |
| $ | 10.00 |
|
| 0.02 |
|
| 0.70 |
|
| 0.72 |
|
| — |
|
| — |
|
| — |
| $ | 10.72 |
|
Year Ended October 31, 2006 |
| $ | 10.72 |
|
| 0.07 |
|
| 1.69 |
|
| 1.76 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
| 12.45 |
|
Year Ended October 31, 2007 |
| $ | 12.45 |
|
| 0.11 | * |
| 2.34 |
|
| 2.45 |
|
| (0.08 | ) |
| (0.09 | ) |
| (0.17 |
|
| 14.73 |
|
Year Ended October 31, 2008 |
| $ | 14.73 |
|
| 0.12 | * |
| (5.21 | ) |
| (5.09 | ) |
| (0.09 | ) |
| (0.74 | ) |
| (0.83 | ) |
| 8.81 |
|
Year Ended October 31, 2009 |
| $ | 8.81 |
|
| 0.07 | * |
| 1.55 |
|
| 1.62 |
|
| (0.09 | ) |
| — |
|
| (0.09 | ) |
| 10.34 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.34 |
|
| 0.07 | * |
| 1.15 |
|
| 1.22 |
|
| (0.08 | ) |
| — |
|
| (0.08 | ) |
| 11.48 |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
| $ | 10.00 |
|
| (0.01 | ) |
| 0.79 |
|
| 0.78 |
|
| — |
|
| — |
|
| — |
| $ | 10.78 |
|
Year Ended October 31, 2006 |
| $ | 10.78 |
|
| 0.02 |
|
| 1.66 |
|
| 1.68 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
| 12.43 |
|
Year Ended October 31, 2007 |
| $ | 12.43 |
|
| 0.01 | * |
| 2.34 |
|
| 2.35 |
|
| (0.02 | ) |
| (0.09 | ) |
| (0.11 | ) |
| 14.67 |
|
Year Ended October 31, 2008 |
| $ | 14.67 |
|
| 0.03 | * |
| (5.20 | ) |
| (5.17 | ) |
| — | (l) |
| (0.74 | ) |
| (0.74 | ) |
| 8.76 |
|
Year Ended October 31, 2009 |
| $ | 8.76 |
|
| 0.01 | * |
| 1.55 |
|
| 1.56 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
| 10.31 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.31 |
|
| 0.03 | * |
| 1.15 |
|
| 1.18 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
| 11.48 |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
| $ | 10.00 |
|
| (0.02 | ) |
| 0.84 |
|
| 0.82 |
|
| — |
|
| — |
|
| — |
| $ | 10.82 |
|
Year Ended October 31, 2006 |
| $ | 10.82 |
|
| 0.02 |
|
| 1.67 |
|
| 1.69 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
| 12.48 |
|
Year Ended October 31, 2007 |
| $ | 12.48 |
|
| 0.01 | * |
| 2.35 |
|
| 2.36 |
|
| (0.01 | ) |
| (0.09 | ) |
| (0.10 | ) |
| 14.74 |
|
Year Ended October 31, 2008 |
| $ | 14.74 |
|
| 0.03 | * |
| (5.22 | ) |
| (5.19 | ) |
| (0.01 | ) |
| (0.74 | ) |
| (0.75 | ) |
| 8.80 |
|
Year Ended October 31, 2009 |
| $ | 8.80 |
|
| 0.01 | * |
| 1.55 |
|
| 1.56 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
| 10.35 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.35 |
|
| 0.04 | * |
| 1.14 |
|
| 1.18 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
| 11.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| ||||||||||||||
|
|
|
|
|
| |||||||||||||||
|
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(i) |
|
|
| 7.20 | % | $ | 2,814 |
|
| 1.50 | % |
| 0.42 | % |
| 5.19 | % |
| 69.23 | % |
Year Ended October 31, 2006 |
|
|
| 16.41 | % |
| 12,562 |
|
| 1.50 | % |
| 0.87 | % |
| 2.19 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
|
| 19.92 | %(f) |
| 21,352 |
|
| 1.50 | % |
| 0.84 | % |
| 1.65 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
|
| (36.43 | )%(g) |
| 13,908 |
|
| 1.50 | % |
| 0.98 | % |
| 1.53 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
|
| 18.66 | %(h) |
| 15,304 |
|
| 1.50 | % |
| 0.84 | % |
| 1.57 | % |
| 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 11.85 | % |
| 18,398 |
|
| 1.18 | % |
| 1.35 | % |
| 1.23 | % |
| 26.86 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
|
|
| 7.80 | % | $ | 2,670 |
|
| 2.25 | % |
| (0.38 | )% |
| 5.74 | % |
| 69.23 | % |
Year Ended October 31, 2006 |
|
|
| 15.57 | % |
| 8,702 |
|
| 2.25 | % |
| 0.11 | % |
| 2.94 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
|
| 18.98 | %(f) |
| 13,905 |
|
| 2.25 | % |
| 0.09 | % |
| 2.40 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
|
| (36.95 | )%(g) |
| 9,516 |
|
| 2.25 | % |
| 0.24 | % |
| 2.28 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
|
| 17.80 | %(h) |
| 11,196 |
|
| 2.25 | % |
| 0.08 | % |
| 2.31 | % |
| 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 11.47 | % |
| 13,221 |
|
| 1.93 | % |
| 0.61 | % |
| 1.98 | % |
| 26.86 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
|
|
| 8.20 | % | $ | 106 |
|
| 2.25 | % |
| (0.55 | )% |
| 5.24 | % |
| 69.23 | % |
Year Ended October 31, 2006 |
|
|
| 15.61 | % |
| 585 |
|
| 2.25 | % |
| 0.14 | % |
| 2.90 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
|
| 19.04 | %(f) |
| 1,273 |
|
| 2.25 | % |
| 0.07 | % |
| 2.39 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
|
| (36.94 | )%(g) |
| 937 |
|
| 2.25 | % |
| 0.25 | % |
| 2.29 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
|
| 17.81 | %(h) |
| 1,507 |
|
| 2.25 | % |
| 0.06 | % |
| 2.30 | % |
| 47.74 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 11.44 | % |
| 2,512 |
|
| 1.92 | % |
| 0.64 | % |
| 1.97 | % |
| 26.86 | % |
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investment companies by their corresponding portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.23%, 0.24% and 0.23% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(g) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.15%, 0.15% and 0.15% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(h) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | Class A Shares commenced operations on February 8, 2005. |
|
|
(j) | Class B Shares commenced operations on February 1, 2005. |
|
|
(k) | Class C Shares commenced operations on April 27, 2005. |
|
|
(l) | Rounds to less than $0.01. |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 27 |
|
MODERATE STRATEGY FUND |
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
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| |
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| Investment Activities |
| Dividends |
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| ||||||||||||||||||
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| ||||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Return |
| Total |
| Net Asset |
| |||||||||
CLASS A SHARES |
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|
Period Ended October 31, 2005(j) |
| $ | 10.00 |
|
| 0.04 |
|
| 0.45 |
|
| 0.49 |
|
| — | (f) |
| — |
|
| — |
|
| — | (f) | $ | 10.49 |
|
Year Ended October 31, 2006 |
| $ | 10.49 |
|
| 0.17 |
|
| 1.23 |
|
| 1.40 |
|
| (0.17 | ) |
| (0.01 | ) |
| — |
|
| (0.18 | ) |
| 11.71 |
|
Year Ended October 31, 2007 |
| $ | 11.71 |
|
| 0.21 | * |
| 1.65 |
|
| 1.86 |
|
| (0.20 | ) |
| (0.10 | ) |
| — |
|
| (0.30 | ) |
| 13.27 |
|
Year Ended October 31, 2008 |
| $ | 13.27 |
|
| 0.20 | * |
| (4.08 | ) |
| (3.88 | ) |
| (0.19 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.70 | ) |
| 8.69 |
|
Year Ended October 31, 2009 |
| $ | 8.69 |
|
| 0.13 | * |
| 1.39 |
|
| 1.52 |
|
| (0.12 | ) |
| — |
|
| — |
|
| (0.12 | ) |
| 10.09 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.09 |
|
| 0.11 | * |
| 0.88 |
|
| 0.99 |
|
| (0.10 | ) |
| — |
|
| — |
|
| (0.10 | ) |
| 10.98 |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
| $ | 10.00 |
|
| 0.01 |
|
| 0.49 |
|
| 0.50 |
|
| — | (f) |
| — |
|
| — |
|
| —(f | ) | $ | 10.50 |
|
Year Ended October 31, 2006 |
| $ | 10.50 |
|
| 0.09 |
|
| 1.22 |
|
| 1.31 |
|
| (0.08 | ) |
| (0.01 | ) |
| — |
|
| (0.09 | ) |
| 11.72 |
|
Year Ended October 31, 2007 |
| $ | 11.72 |
|
| 0.12 | * |
| 1.65 |
|
| 1.77 |
|
| (0.12 | ) |
| (0.10 | ) |
| — |
|
| (0.22 | ) |
| 13.27 |
|
Year Ended October 31, 2008 |
| $ | 13.27 |
|
| 0.11 | * |
| (4.08 | ) |
| (3.97 | ) |
| (0.10 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.61 | ) |
| 8.69 |
|
Year Ended October 31, 2009 |
| $ | 8.69 |
|
| 0.06 | * |
| 1.39 |
|
| 1.45 |
|
| (0.06 | ) |
| — |
|
| — |
|
| (0.06 | ) |
| 10.08 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.08 |
|
| 0.07 | * |
| 0.90 |
|
| 0.97 |
|
| (0.07 | ) |
| — |
|
| — |
|
| (0.07 | ) |
| 10.98 |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(l) |
| $ | 10.00 |
|
| — | (f) |
| 0.28 |
|
| 0.28 |
|
| — |
|
| — |
|
| — |
|
| — |
| $ | 10.28 |
|
Year Ended October 31, 2006 |
| $ | 10.28 |
|
| 0.09 |
|
| 1.19 |
|
| 1.28 |
|
| (0.08 | ) |
| (0.01 | ) |
| — |
|
| (0.09 | ) |
| 11.47 |
|
Year Ended October 31, 2007 |
| $ | 11.47 |
|
| 0.12 | * |
| 1.60 |
|
| 1.72 |
|
| (0.12 | ) |
| (0.10 | ) |
| — |
|
| (0.22 | ) |
| 12.97 |
|
Year Ended October 31, 2008 |
| $ | 12.97 |
|
| 0.11 | * |
| (3.97 | ) |
| (3.86 | ) |
| (0.11 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.62 | ) |
| 8.49 |
|
Year Ended October 31, 2009 |
| $ | 8.49 |
|
| 0.06 | * |
| 1.35 |
|
| 1.41 |
|
| (0.06 | ) |
| — |
|
| — |
|
| (0.06 | ) |
| 9.84 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 9.84 |
|
| 0.07 | * |
| 0.87 |
|
| 0.94 |
|
| (0.07 | ) |
| — |
|
| — |
|
| (0.07 | ) |
| 10.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| ||||||||||||||
|
|
|
|
| ||||||||||||||||
|
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
|
|
| 4.94 | % | $ | 3,241 |
|
| 1.50 | % |
| 0.95 | % |
| 4.30 | % |
| 84.55 | % |
Year Ended October 31, 2006 |
|
|
| 13.40 | % |
| 11,973 |
|
| 1.50 | % |
| 1.65 | % |
| 2.12 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
|
| 16.12 | %(g) |
| 20,140 |
|
| 1.50 | % |
| 1.70 | % |
| 1.60 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
|
| (30.65 | )%(h) |
| 14,226 |
|
| 1.48 | % |
| 1.75 | % |
| 1.48 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
|
| 17.75 | %(i) |
| 15,909 |
|
| 1.44 | % |
| 1.47 | % |
| 1.49 | % |
| 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 9.96 | % |
| 18,183 |
|
| 1.04 | % |
| 2.05 | % |
| 1.09 | % |
| 30.01 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
|
|
| 5.03 | % | $ | 3,604 |
|
| 2.25 | % |
| 0.18 | % |
| 5.01 | % |
| 84.55 | % |
Year Ended October 31, 2006 |
|
|
| 12.45 | % |
| 10,731 |
|
| 2.25 | % |
| 0.91 | % |
| 2.87 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
|
| 15.25 | %(g) |
| 16,513 |
|
| 2.25 | % |
| 0.95 | % |
| 2.35 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
|
| (31.17 | )%(h) |
| 12,354 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
|
| 16.82 | %(i) |
| 14,230 |
|
| 2.19 | % |
| 0.71 | % |
| 2.24 | % |
| 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 9.59 | % |
| 16,367 |
|
| 1.79 | % |
| 1.31 | % |
| 1.84 | % |
| 30.01 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(l) |
|
|
| 2.80 | % | $ | 278 |
|
| 2.25 | % |
| 0.05 | % |
| 4.69 | % |
| 84.55 | % |
Year Ended October 31, 2006 |
|
|
| 12.53 | % |
| 763 |
|
| 2.25 | % |
| 0.87 | % |
| 2.83 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
|
| 15.20 | %(g) |
| 1,766 |
|
| 2.25 | % |
| 0.95 | % |
| 2.33 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
|
| (31.09 | )%(h) |
| 1,408 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
|
| 16.75 | %(i) |
| 1,488 |
|
| 2.19 | % |
| 0.72 | % |
| 2.24 | % |
| 41.29 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 9.54 | % |
| 1,804 |
|
| 1.79 | % |
| 1.31 | % |
| 1.84 | % |
| 30.01 | % |
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investment companies by their corresponding portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | Rounds to less than $0.01 or $(0.01). |
|
|
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.41%, 0.41% and 0.33% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(h) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.09%, 0.09% and 0.09% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | Class A Shares commenced operations on February 3, 2005. |
|
|
(k) | Class B Shares commenced operations on February 1, 2005. |
|
|
(l) | Class C Shares commenced operations on June 9, 2005. |
|
|
28 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
CONSERVATIVE STRATEGY FUND |
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| Investment Activities |
| Dividends |
|
|
|
| |||||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Total |
| Net Asset |
| ||||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
| $ | 10.00 |
|
| 0.04 |
|
| 0.26 |
|
| 0.30 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) | $ | 10.29 |
|
Year Ended October 31, 2006 |
| $ | 10.29 |
|
| 0.22 |
|
| 0.85 |
|
| 1.07 |
|
| (0.25 | ) |
| — |
|
| (0.25 | ) |
| 11.11 |
|
Year Ended October 31, 2007 |
| $ | 11.11 |
|
| 0.29 | * |
| 1.03 |
|
| 1.32 |
|
| (0.27 | ) |
| (0.12 | ) |
| (0.39 | ) |
| 12.04 |
|
Year Ended October 31, 2008 |
| $ | 12.04 |
|
| 0.24 | * |
| (2.93 | ) |
| (2.69 | ) |
| (0.25 | ) |
| (0.26 | ) |
| (0.51 | ) |
| 8.84 |
|
Year Ended October 31, 2009 |
| $ | 8.84 |
|
| 0.14 | * |
| 1.16 |
|
| 1.30 |
|
| (0.13 | ) |
| — |
|
| (0.13 | ) |
| 10.01 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.01 |
|
| 0.11 | * |
| 0.65 |
|
| 0.76 |
|
| (0.10 | ) |
| — |
|
| (0.10 | ) |
| 10.67 |
|
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
| $ | 10.00 |
|
| 0.03 |
|
| 0.16 |
|
| 0.19 |
|
| — | (f) |
| — |
|
| — | (f) | $ | 10.19 |
|
Year Ended October 31, 2006 |
| $ | 10.19 |
|
| 0.15 |
|
| 0.83 |
|
| 0.98 |
|
| (0.16 | ) |
| — |
|
| (0.16 | ) |
| 11.01 |
|
Year Ended October 31, 2007 |
| $ | 11.01 |
|
| 0.20 | * |
| 1.05 |
|
| 1.25 |
|
| (0.20 | ) |
| (0.12 | ) |
| (0.32 | ) |
| 11.94 |
|
Year Ended October 31, 2008 |
| $ | 11.94 |
|
| 0.16 | * |
| (2.91 | ) |
| (2.75 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
| 8.76 |
|
Year Ended October 31, 2009 |
| $ | 8.76 |
|
| 0.07 | * |
| 1.15 |
|
| 1.22 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
| 9.91 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 9.91 |
|
| 0.08 | * |
| 0.63 |
|
| 0.71 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
| 10.55 |
|
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(l) |
| $ | 10.00 |
|
| 0.03 |
|
| 0.38 |
|
| 0.41 |
|
| — |
|
| — |
|
| — |
| $ | 10.41 |
|
Year Ended October 31, 2006 |
| $ | 10.41 |
|
| 0.15 |
|
| 0.85 |
|
| 1.00 |
|
| (0.17 | ) |
| — |
|
| (0.17 | ) |
| 11.24 |
|
Year Ended October 31, 2007 |
| $ | 11.24 |
|
| 0.21 | * |
| 1.11 |
|
| 1.32 |
|
| (0.19 | ) |
| (0.12 | ) |
| (0.31 | ) |
| 12.25 |
|
Year Ended October 31, 2008 |
| $ | 12.25 |
|
| 0.16 | * |
| (2.98 | ) |
| (2.82 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
| 9.00 |
|
Year Ended October 31, 2009 |
| $ | 9.00 |
|
| 0.07 | * |
| 1.18 |
|
| 1.25 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
| 10.18 |
|
Six Months Ended April 30, 2010 (Unaudited) |
| $ | 10.18 |
|
| 0.08 | * |
| 0.65 |
|
| 0.73 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
| 10.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| ||||||||||||||
|
|
|
|
|
| |||||||||||||||
|
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(j) |
|
|
| 2.96 | % | $ | 1,054 |
|
| 1.50 | % |
| 1.28 | % |
| 8.01 | % |
| 72.14 | % |
Year Ended October 31, 2006 |
|
|
| 10.48 | % |
| 3,069 |
|
| 1.50 | % |
| 2.33 | % |
| 3.22 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
|
| 12.13 | %(g) |
| 6,669 |
|
| 1.50 | % |
| 2.52 | % |
| 2.06 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
|
| (23.17 | )%(h) |
| 4,747 |
|
| 1.50 | % |
| 2.24 | % |
| 1.72 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
|
| 14.95 | %(i) |
| 5,059 |
|
| 1.50 | % |
| 1.53 | % |
| 1.62 | % |
| 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 7.62 | % |
| 5,543 |
|
| 1.22 | % |
| 2.22 | % |
| 1.27 | % |
| 31.55 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(k) |
|
|
| 1.92 | % | $ | 1,306 |
|
| 2.25 | % |
| 0.53 | % |
| 9.21 | % |
| 72.14 | % |
Year Ended October 31, 2006 |
|
|
| 9.65 | % |
| 2,567 |
|
| 2.25 | % |
| 1.54 | % |
| 3.98 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
|
| 11.51 | %(g) |
| 4,928 |
|
| 2.25 | % |
| 1.77 | % |
| 2.82 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
|
| (23.76 | )%(h) |
| 4,348 |
|
| 2.25 | % |
| 1.48 | % |
| 2.48 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
|
| 14.05 | %(i) |
| 4,907 |
|
| 2.25 | % |
| 0.77 | % |
| 2.38 | % |
| 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 7.14 | % |
| 6,024 |
|
| 1.97 | % |
| 1.50 | % |
| 2.02 | % |
| 31.55 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended October 31, 2005(l) |
|
|
| 4.10 | % | $ | 82 |
|
| 2.25 | % |
| 0.66 | % |
| 7.94 | % |
| 72.14 | % |
Year Ended October 31, 2006 |
|
|
| 9.66 | % |
| 320 |
|
| 2.25 | % |
| 1.56 | % |
| 3.92 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
|
| 11.97 | %(g) |
| 437 |
|
| 2.25 | % |
| 1.78 | % |
| 2.85 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
|
| (23.73 | )%(h) |
| 430 |
|
| 2.25 | % |
| 1.46 | % |
| 2.48 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
|
| 13.97 | %(i) |
| 485 |
|
| 2.25 | % |
| 0.78 | % |
| 2.37 | % |
| 34.40 | % |
Six Months Ended April 30, 2010 (Unaudited) |
|
|
| 7.19 | % |
| 694 |
|
| 1.97 | % |
| 1.50 | % |
| 2.02 | % |
| 31.55 | % |
|
|
* | Calculated based on average shares outstanding. |
|
|
(a) | The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests. |
|
|
(b) | Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges. |
|
|
(c) | Annualized for periods less than one year. |
|
|
(d) | During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(e) | Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios affiliated and unaffiliated investment companies by their corresponding portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued. |
|
|
(f) | Rounds to less than $0.01. |
|
|
(g) | During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.44%, 0.47% and 0.48% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(h) | During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | Class A Shares commenced operations on February 23, 2005. |
|
|
(k) | Class B Shares commenced operations on February 17, 2005. |
|
|
(l) | Class C Shares commenced operations on April 19, 2005. |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 29 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) |
|
|
1. | Organization: |
|
|
| The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of April 30, 2010, the Trust is comprised of 15 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial statements are presented for the following 4 funds (individually a “Fund”, collectively the “World Selection Funds”): |
|
|
Fund | Short Name |
HSBC Investor Aggressive Strategy Fund | Aggressive Strategy Fund |
HSBC Investor Balanced Strategy Fund | Balanced Strategy Fund |
HSBC Investor Moderate Strategy Fund | Moderate Strategy Fund |
HSBC Investor Conservative Strategy Fund | Conservative Strategy Fund |
|
|
| The World Selection Funds are diversified series of the Trust and part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
|
|
| Each of the World Selection Funds is a “fund of funds,” meaning that it seeks to achieve its investment objective by investing primarily in a combination of mutual funds managed by HSBC Global Asset Management (USA) Inc. (the “Investment Adviser”) (the “Affiliated Underlying Funds”), as well as mutual funds managed by other investment advisers and exchange-traded funds (“Unaffiliated Underlying Funds” and, together with the Affiliated Underlying Funds, the “Underlying Funds”). Each Fund may also purchase and hold exchange-traded notes (“ETNs”). The Underlying Funds may include private equity funds and real estate funds that are organized as mutual funds or Exchange Traded Funds (“ETFs”). Each World Selection Fund invests according to the investment objectives and strategies described in its Prospectus. |
|
|
| The World Selection Funds currently invest in the HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio,” collectively the “Portfolios”), each of which is a diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements in addition to receiving investments from the World Selection Funds. |
|
|
| The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the World Selection Funds. |
|
|
| The World Selection Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. Each Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. Class A Shares of the World Selection Funds have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the World Selection Funds are offered without any front-end sales charge, but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the World Selection Funds are offered without any front-end sales charge, but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. Each class of shares in the World Selection Funds has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privileges of each class of shares. |
|
|
| Under the Trust’s organizational documents, the World Selection Funds’ Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the World Selection Funds. In addition, in the normal course of business, the Trust enters into contracts with its service providers, which also provide for indemnifications by the World Selection Funds. The World Selection Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the World Selection Funds. However, based on experience, the Trust expects the risk of loss to be remote. |
|
|
30 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
2. | Significant Accounting Policies: |
|
|
| The following is a summary of the significant accounting policies followed by the World Selection Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements. |
|
|
| Securities Valuation: |
|
|
| The World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds. The World Selection Funds record their investments in the Portfolios at fair value. The underlying securities of the Portfolios are recorded at fair value, respectively, as more fully discussed in the notes to those financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value in funds or portfolios in which the World Selection Funds are invested are described in their respective notes to financial statements. |
|
|
| Investment Transactions and Related Income: |
|
|
| The World Selection Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolios. Dividend income is recorded on the ex-dividend date for the Underlying Funds. Changes in holdings of the Underlying Funds for each World Selection Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Underlying Funds are reflected as of trade date. In addition, the World Selection Funds accrue their own expenses daily as incurred. |
|
|
| Allocations: |
|
|
| Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all funds within the HSBC Investor Family of Funds in relation to the net assets of each fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis. |
|
|
| Dividends to Shareholders: |
|
|
| Dividends to shareholders from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Strategy Fund and Conservative Strategy Fund, and annually in the case of the Aggressive Strategy Fund and Balanced Strategy Fund. |
|
|
| The World Selection Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the World Selection Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net capital gains of regulated investment companies. |
|
|
| The amount and character of net investment income and net realized gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and certain distributions), such amounts are reclassified within the composition of net assets; temporary differences (e.g., wash losses and post-October loss deferrals) do not require reclassification. The World Selection Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. To the extent distributions to shareholders from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 31 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| Redemption Fee: |
|
|
| Prior to February 28, 2010 a redemption fee of 2.00% was charged and recorded as paid-in-capital for any shares redeemed or exchanged after being held for less than 30 days. This fee did not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that could not implement the fee. The Trustees have approved the removal of such redemption fee effective February 28, 2010. For the fiscal years ended October 31, 2009 and period ended April 30, 2010, respectively, the following World Selection Funds collected redemption fees as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
| Fees Collected |
| Fees Collected |
| ||||||
|
|
| |||||||||
Aggressive Strategy Fund |
|
| $ | 47 |
|
|
| $ | 3 |
|
|
Balanced Strategy Fund |
|
|
| 431 |
|
|
|
| 11 |
|
|
Moderate Strategy Fund |
|
|
| 259 |
|
|
|
| 10 |
|
|
Conservative Strategy Fund |
|
|
| 63 |
|
|
|
| 1 |
|
|
|
|
|
|
| Federal Income Taxes: | ||
|
|
|
|
| Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required. | ||
|
|
|
|
| Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. | ||
|
|
|
|
| New Accounting Pronouncements: | ||
|
|
|
|
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trust’s financial statements and related disclosures. | ||
|
|
|
|
3. | Investment Valuation Summary: | ||
|
|
|
|
| The valuation techniques employed by the World Selection Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the World Selection Funds’ investments are summarized in the three broad levels listed below: | ||
|
|
|
|
|
| • Level 1: | quoted prices in active markets for identical assets |
|
|
|
|
|
| • Level 2: | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
|
|
|
|
|
| • Level 3: | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments) |
|
|
|
|
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. | ||
|
|
|
|
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the World Selection Funds’ investments based upon the three levels defined above: |
|
|
32 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Aggressive Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Companies |
| $ | 797,221 |
| $ | — |
| $ | — |
| $ | 797,221 |
|
Affiliated Portfolios (a) |
|
| — |
|
| 7,072,113 |
|
| — |
|
| 7,072,113 |
|
Unaffiliated Investment Companies |
|
| 3,438,995 |
|
| — |
|
| — |
|
| 3,438,995 |
|
Exchange Traded Funds |
|
| 759,883 |
|
| — |
|
| — |
|
| 759,883 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 4,996,099 |
| $ | 7,072,113 |
| $ | — |
| $ | 12,068,212 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balanced Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Companies |
| $ | 1,804,919 |
| $ | — |
| $ | — |
| $ | 1,804,919 |
|
Affiliated Portfolios (a) |
|
| — |
|
| 13,988,826 |
|
| — |
|
| 13,988,826 |
|
Unaffiliated Investment Companies |
|
| 16,551,032 |
|
| — |
|
| — |
|
| 16,551,032 |
|
Exchange Traded Funds |
|
| 1,759,005 |
|
| — |
|
| — |
|
| 1,759,005 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 20,114,956 |
| $ | 13,988,826 |
| $ | — |
| $ | 34,103,782 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Moderate Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Companies |
| $ | 1,526,520 |
| $ | — |
| $ | — |
| $ | 1,526,520 |
|
Affiliated Portfolios (a) |
|
| — |
|
| 10,570,748 |
|
| — |
|
| 10,570,748 |
|
Unaffiliated Investment Companies |
|
| 23,102,945 |
|
| — |
|
| — |
|
| 23,102,945 |
|
Exchange Traded Funds |
|
| 1,145,162 |
|
| — |
|
| — |
|
| 1,145,162 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 25,774,627 |
| $ | 10,570,748 |
| $ | — |
| $ | 36,345,375 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Companies |
| $ | 454,436 |
| $ | — |
| $ | — |
| $ | 454,436 |
|
Affiliated Portfolios (a) |
|
| — |
|
| 2,449,258 |
|
| — |
|
| 2,449,258 |
|
Unaffiliated Investment Companies |
|
| 9,343,714 |
|
| — |
|
| — |
|
| 9,343,714 |
|
Exchange Traded Funds |
|
| 144,620 |
|
| — |
|
| — |
|
| 144,620 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 9,942,770 |
| $ | 2,449,258 |
| $ | — |
| $ | 12,392,028 |
|
|
|
|
|
|
|
|
|
(a) | Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder fund structure, the inputs used for valuing these investments are categorized as Level 2. |
|
|
4. | Related Party Transactions: |
|
|
| Investment Management: |
|
|
| The Investment Adviser, a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the World Selection Funds. As Investment Adviser, HSBC manages the investments of the World Selection Funds and continuously reviews, supervises and administers the World Selection Funds’ investments. For its services as Investment Adviser, HSBC is entitled to receive a fee, computed daily and paid monthly, based on average daily net assets, at an annual rate of 0.05% for each Fund. The Investment Adviser is voluntarily waiving all of the fee for each of the World Selection Funds. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/ reimbursements may be stopped at any time. |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 33 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| Administration: |
|
|
| HSBC serves the World Selection Funds as Administrator. Under the terms of the Administration Agreement, HSBC received from the World Selection Funds (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate |
| |
|
| |||
Up to $10 billion |
|
| 0.0550% |
|
In excess of $10 billion but not exceeding $20 billion |
|
| 0.0350% |
|
In excess of $20 billion but not exceeding $50 billion |
|
| 0.0275% |
|
In excess of $50 billion |
|
| 0.0250% |
|
|
|
| The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in underlying Portfolios by World Selection Funds, the Portfolios pay half of the administration fee and the World Selection Funds pay half, for a combination of the total fee rate above. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios in master-feeder structures. An amount equal to 50% of the administration fees is deemed to be class-specific. |
|
|
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Sub-Administrator for the Trust and the HSBC Investor Family of Funds (collectively, the “Trusts”) subject to the general supervision of the Trusts’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $134,557 for the period ended April 30, 2010, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Services.” Citi Ohio pays the salary and other compensation earned by individuals performing these services, as employees of Citi Ohio. |
|
|
| Distribution Arrangements: |
|
|
| Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Distribution Plan”) pursuant to Rule 12b-1 of the Act. The Distribution Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the World Selection Funds, respectively. As of the most recent fiscal period, Foreside, as Distributor, also received $284,730, $198,003, and $19,382 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $30, $6, and $— were reallocated to HSBC-affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively. |
|
|
| Shareholder Servicing: |
|
|
| The Trust has adopted a Shareholder Services Plan which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee that is computed daily and paid monthly up to 0.25%, 0.25% and 0.25% of the average daily net assets of Class A Shares, Class B Shares and Class C Shares of the World Selection Funds, respectively. The fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Shareholder Services Plan currently are not intended to exceed, in the aggregate, 0.25% of the average daily net assets of Class A Shares and 1.00% of the average daily net assets of Class B Shares and Class C Shares. |
|
|
| Fund Accounting, Transfer Agency and Trustees: |
|
|
| Citi Ohio provides fund accounting and transfer agency services for the Trusts. As transfer agent, Citi Ohio receives a fee based on the number of funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant, Citi Ohio receives an annual fee per fund and share class, subject to minimums and reimbursement of certain expenses. |
|
|
34 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| Each non-interested Trustees is compensated with a $60,000 annual Board retainer for service as a Trustee of the Trusts and Portfolio Trust, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts and Portfolio Trust. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
| Fee Reductions: |
|
|
| The Investment Adviser has agreed to contractually limit through March 1, 2011 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the World Selection Funds. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: Class A Shares 1.50%, Class B Shares 2.25%, Class C Shares 2.25%. |
|
|
| Any amounts contractually waived or reimbursed by the Investment Adviser will be subject to repayment by the Fund to the Investment Adviser within three years to the extent that the repayment will not cause the Fund’s operating expenses to exceed the contractual expense limit that was in effect at the time of such waiver or reimbursement. During the period ended April 30, 2010, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2010, the repayments that may potentially be made by the Funds are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
| 2013($)* |
|
| 2012($)* |
|
| 2011($)* |
|
| 2010($)* |
|
|
|
|
|
|
|
|
| |||||
Aggressive Strategy Fund |
| 13,496 |
|
| 49,257 |
|
| 51,467 |
|
| 71,425 |
|
Balanced Strategy Fund |
| — |
|
| 3,289 |
|
| — |
|
| 29,729 |
|
Moderate Strategy Fund |
| — |
|
| — |
|
| — |
|
| 14,225 |
|
Conservative Strategy Fund |
| — |
|
| 6,592 |
|
| 20,961 |
|
| 40,321 |
|
|
|
* | The year listed above the amounts is the fiscal year ending in which the amounts will no longer be recoupable. |
|
|
| The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of each Fund. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable. |
|
|
5. | Investment Transactions: |
|
|
| Aggregate contributions and withdrawals of the Underlying Portfolios for the period ended April 30, 2010 totaled: |
|
|
|
|
|
|
|
|
Fund |
| Contributions |
| Withdrawals |
| ||
|
|
| |||||
Aggressive Strategy Fund |
| $ | 1,427,048 |
| $ | 5,040,551 |
|
Balanced Strategy Fund |
|
| 1,639,768 |
|
| 13,533,820 |
|
Moderate Strategy Fund |
|
| 1,386,799 |
|
| 13,050,346 |
|
Conservative Strategy Fund |
|
| 488,079 |
|
| 3,010,495 |
|
|
|
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
|
|
|
|
|
|
|
|
|
Fund |
| Purchases |
|
| Sales |
| ||
|
|
|
| |||||
Aggressive Strategy Fund |
| $ | 5,061,167 |
|
| $ | 299,877 |
|
Balanced Strategy Fund |
| $ | 17,465,017 |
|
| $ | 3,105,697 |
|
Moderate Strategy Fund |
| $ | 20,564,129 |
|
| $ | 5,766,023 |
|
Conservative Strategy Fund |
| $ | 7,506,754 |
|
| $ | 1,998,280 |
|
|
|
6. | Federal Tax Information: |
|
|
| At April 30, 2010, the cost basis of securities (which excludes investments in the Affiliated Portfolios) for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows: |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 35 |
|
HSBC INVESTOR WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
| Tax Cost |
|
| Tax |
|
| Tax |
|
| Net Unrealized |
| |
|
|
|
|
|
|
|
|
| ||||||
Aggressive Strategy Fund |
| 11,189,629 |
|
| 878,392 |
|
| (30,310 | ) |
|
| 848,082 |
| |
Balanced Strategy Fund |
| 33,970,095 |
|
| 2,299,221 |
|
| (50,815 | ) |
|
| 2,248,406 |
| |
Moderate Strategy Fund |
| 33,954,931 |
|
| 2,400,493 |
|
| (55,145 | ) |
|
| 2,245,348 |
| |
Conservative Strategy Fund |
| 11,597,358 |
|
| 669,477 |
|
| (17,138 | ) |
|
| 652,339 |
|
The tax character of dividends paid by the World Selection Funds as of the latest tax year ended October 31, 2009 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid from |
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
| |||||||||||||
Fund |
|
|
| Ordinary |
|
| Net |
|
| Total |
|
|
| Total |
| ||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Aggressive Strategy Fund |
|
| $ | — |
|
| $ |
|
| — |
|
| $ | — |
|
|
| $ | — |
| |
Balanced Strategy Fund |
|
|
| 148,995 |
|
|
|
|
| — |
|
|
| 148,995 |
|
|
|
| 148,995 |
| |
Moderate Strategy Fund |
|
|
| 287,613 |
|
|
|
|
| — |
|
|
| 287,613 |
|
|
|
| 287,613 |
| |
Conservative Strategy Fund |
|
|
| 109,163 |
|
|
|
|
| — |
|
|
| 109,163 |
|
|
|
| 109,163 |
|
|
|
|
| ||
| * | Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
|
|
|
| As of the latest tax year ended October 31, 2009, the components of accumulated earnings/(deficit) on a tax basis for the World Selection Funds were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
|
| Undistributed |
|
| Undistributed |
|
| Accumulated |
|
|
| Accumulated |
|
|
| Unrealized |
|
|
| Total |
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Aggressive Strategy Fund |
|
| $ | — |
|
| $ |
|
| — |
|
| $ | — |
|
|
| $ | (2,039,823 | ) |
|
| $ | (112,786 | ) |
|
| $ | (2,152,609 | ) |
| |
Balanced Strategy Fund |
|
|
| 122,678 |
|
|
|
|
| — |
|
|
| 122,678 |
|
|
|
| (5,334,226 | ) |
|
|
| 35,461 |
|
|
|
| (5,176,087 | ) |
| |
Moderate Strategy Fund |
|
|
| 46,429 |
|
|
|
|
| — |
|
|
| 46,429 |
|
|
|
| (5,325,093 | ) |
|
|
| 500,828 |
|
|
|
| (4,777,836 | ) |
| |
Conservative Strategy Fund |
|
|
| 11,295 |
|
|
|
|
| — |
|
|
| 11,295 |
|
|
|
| (1,518,116 | ) |
|
|
| 269,453 |
|
|
|
| (1,237,368 | ) |
|
|
|
|
| ||
| (1) | The differences between book-basis and tax-basis unrealized appreciation/depreciation are attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain derivative instruments, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts. |
|
|
|
| As of the latest tax year ended October 31, 2009, the following World Selection Funds have net capital loss carryfor-wards, which are available to offset future realized gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders. |
|
|
|
|
|
|
| ||
Fund |
|
| Amount |
| Expires |
| ||
|
|
|
| |||||
Aggressive Strategy Fund |
| $ | 911,837 |
|
| 2016 |
| |
Aggressive Strategy Fund |
|
| 1,127,986 |
|
| 2017 |
| |
Balanced Strategy Fund |
|
| 2,102,771 |
|
| 2016 |
| |
Balanced Strategy Fund |
|
| 3,231,455 |
|
| 2017 |
| |
Moderate Strategy Fund |
|
| 1,920,789 |
|
| 2016 |
| |
Moderate Strategy Fund |
|
| 3,404,304 |
|
| 2017 |
| |
Conservative Strategy Fund |
|
| 522,074 |
|
| 2016 |
| |
Conservative Strategy Fund |
|
| 996,042 |
|
| 2017 |
|
|
|
7. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Funds. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Funds will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Fund will be disclosed in the Financial Highlights after the date of payment. |
|
|
36 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
|
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
|
|
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
|
|
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
|
|
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
|
|
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others: |
|
|
|
|
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 37 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
|
|
| Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also took note of the long-term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
|
|
|
|
| With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
|
|
|
|
| The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
|
|
|
|
| The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
|
|
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
|
|
|
|
| Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
|
|
|
|
| The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
|
|
|
|
| With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
|
|
|
|
| The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
|
|
|
|
| The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
|
|
|
38 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
|
|
| Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
|
|
|
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 39 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 |
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases or redemptions of shares; and exchange fees; (2) ongoing costs, including management fees; distribution and/or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples do not include expenses from the underlying investment companies in which the Funds’ invests.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Example
The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
|
| Annualized |
| |||||||||
|
|
|
|
|
|
|
|
| |||||||||||||
Aggressive Strategy Fund |
| Class A Shares |
|
| $ | 1,000.00 |
|
|
| $ | 1,134.30 |
|
|
| $ | 7.94 |
|
|
| 1.50% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,128.80 |
|
|
|
| 11.88 |
|
|
| 2.25% |
|
| �� | Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,129.90 |
|
|
|
| 11.88 |
|
|
| 2.25% |
|
Balanced Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,118.50 |
|
|
|
| 6.15 |
|
|
| 1.17% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,114.70 |
|
|
|
| 10.07 |
|
|
| 1.92% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,114.40 |
|
|
|
| 10.07 |
|
|
| 1.92% |
|
Moderate Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,099.60 |
|
|
|
| 5.41 |
|
|
| 1.04% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,095.90 |
|
|
|
| 9.30 |
|
|
| 1.79% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,095.40 |
|
|
|
| 9.30 |
|
|
| 1.79% |
|
Conservative Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,076.20 |
|
|
|
| 6.28 |
|
|
| 1.22% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,071.40 |
|
|
|
| 10.12 |
|
|
| 1.97% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,071.90 |
|
|
|
| 10.12 |
|
|
| 1.97% |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
40 | HSBC INVESTOR WORLD SELECTION FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 (continued) |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchases and redemptions of shares (if applicable). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses Paid |
|
| Annualized |
| |||||||||
|
|
|
|
|
|
|
|
| |||||||||||||
Aggressive Strategy Fund |
| Class A Shares |
|
| $ | 1,000.00 |
|
|
| $ | 1,017.36 |
|
|
| $ | 7.50 |
|
|
| 1.50% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.64 |
|
|
|
| 11.23 |
|
|
| 2.25% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,013.64 |
|
|
|
| 11.23 |
|
|
| 2.25% |
|
Balanced Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,018.99 |
|
|
|
| 5.86 |
|
|
| 1.17% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.27 |
|
|
|
| 9.59 |
|
|
| 1.92% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.27 |
|
|
|
| 9.59 |
|
|
| 1.92% |
|
Moderate Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,019.64 |
|
|
|
| 5.21 |
|
|
| 1.04% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.92 |
|
|
|
| 8.95 |
|
|
| 1.79% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.92 |
|
|
|
| 8.95 |
|
|
| 1.79% |
|
Conservative Strategy Fund |
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,018.74 |
|
|
|
| 6.11 |
|
|
| 1.22% |
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.03 |
|
|
|
| 9.84 |
|
|
| 1.97% |
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.03 |
|
|
|
| 9.84 |
|
|
| 1.97% |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Funds’ annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
|
|
HSBC INVESTOR WORLD SELECTION FUNDS | 41 |
Information regarding how the Funds and Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Funds and Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Funds’ and Portfolios’ Forms N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Funds’ and Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Funds’ and Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com.
An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
|
|
42 | HSBC INVESTOR FAMILY OF FUNDS |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—96.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Consumer Discretionary – 10.4% |
|
|
|
|
|
|
|
Amazon.com, Inc. (a) |
|
| 11,900 |
|
| 1,631,014 |
|
Kohl’s Corp. (a) |
|
| 20,100 |
|
| 1,105,299 |
|
New Oriental Education & |
|
| 7,600 |
|
| 711,132 |
|
O’Reilly Automotive, Inc. (a) |
|
| 22,300 |
|
| 1,090,247 |
|
Priceline.com, Inc. (a) |
|
| 7,600 |
|
| 1,991,580 |
|
Target Corp. |
|
| 18,300 |
|
| 1,040,721 |
|
The Estee Lauder Cos., Inc., Class A |
|
| 9,400 |
|
| 619,648 |
|
Urban Outfitters, Inc. (a) |
|
| 38,800 |
|
| 1,455,388 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,645,029 |
|
|
|
|
|
|
| ||
Consumer Staples – 4.5% |
|
|
|
|
|
|
|
Costco Wholesale Corp. |
|
| 22,300 |
|
| 1,317,484 |
|
PepsiCo, Inc. |
|
| 14,800 |
|
| 965,256 |
|
Staples, Inc. |
|
| 38,400 |
|
| 903,552 |
|
Yum! Brands, Inc. |
|
| 22,900 |
|
| 971,418 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,157,710 |
|
|
|
|
|
|
| ||
Energy – 9.0% |
|
|
|
|
|
|
|
Dresser-Rand Group, Inc. (a) |
|
| 29,500 |
|
| 1,040,760 |
|
EOG Resources, Inc. |
|
| 8,500 |
|
| 953,020 |
|
First Solar, Inc. (a) |
|
| 4,800 |
|
| 689,040 |
|
FMC Technologies, Inc. (a) |
|
| 14,500 |
|
| 981,505 |
|
Occidental Petroleum Corp. |
|
| 10,900 |
|
| 966,394 |
|
Peabody Energy Corp. |
|
| 24,500 |
|
| 1,144,640 |
|
Schlumberger Ltd. |
|
| 35,900 |
|
| 2,563,978 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,339,337 |
|
|
|
|
|
|
| ||
Financials – 7.1% |
|
|
|
|
|
|
|
Goldman Sachs Group, Inc. |
|
| 12,500 |
|
| 1,815,000 |
|
IntercontinentalExchange, Inc. (a) |
|
| 7,700 |
|
| 898,051 |
|
Invesco Ltd. |
|
| 16,800 |
|
| 386,232 |
|
JP Morgan Chase & Co. |
|
| 61,000 |
|
| 2,597,380 |
|
The Charles Schwab Corp. |
|
| 46,400 |
|
| 895,056 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,591,719 |
|
|
|
|
|
|
| ||
Health Care – 8.9% |
|
|
|
|
|
|
|
Celgene Corp. (a) |
|
| 22,400 |
|
| 1,387,680 |
|
Express Scripts, Inc. (a) |
|
| 12,800 |
|
| 1,281,664 |
|
Gilead Sciences, Inc. (a) |
|
| 11,600 |
|
| 460,172 |
|
Medco Health Solutions, Inc. (a) |
|
| 40,600 |
|
| 2,392,152 |
|
Shire plc ADR |
|
| 13,700 |
|
| 902,008 |
|
Teva Pharmaceutical Industries Ltd. ADR |
|
| 31,600 |
|
| 1,855,868 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,279,544 |
|
|
|
|
|
|
| ||
Industrials – 12.9% |
|
|
|
|
|
|
|
C.H. Robinson Worldwide, Inc. |
|
| 16,100 |
|
| 970,830 |
|
Danaher Corp. |
|
| 29,400 |
|
| 2,477,832 |
|
Deere & Co. |
|
| 16,000 |
|
| 957,120 |
|
Flowserve Corp. |
|
| 7,900 |
|
| 905,182 |
|
Fluor Corp. |
|
| 16,600 |
|
| 877,144 |
|
Illinois Tool Works, Inc. |
|
| 27,600 |
|
| 1,410,360 |
|
Union Pacific Corp. |
|
| 33,600 |
|
| 2,542,176 |
|
United Technologies Corp. |
|
| 25,200 |
|
| 1,888,740 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 12,029,384 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Information Technology – 40.2% |
|
|
|
|
|
|
|
Agilent Technologies, Inc. (a) |
|
| 23,400 |
|
| 848,484 |
|
Apple, Inc. (a) |
|
| 16,800 |
|
| 4,386,816 |
|
Baidu, Inc. ADR (a) |
|
| 1,565 |
|
| 1,078,755 |
|
Broadcom Corp., Class A |
|
| 27,400 |
|
| 945,026 |
|
Cisco Systems, Inc. (a) |
|
| 100,200 |
|
| 2,697,384 |
|
Citrix Systems, Inc. (a) |
|
| 19,300 |
|
| 907,100 |
|
Cognizant Technology Solutions Corp. (a) |
|
| 59,700 |
|
| 3,055,446 |
|
Dell, Inc. (a) |
|
| 60,100 |
|
| 972,418 |
|
EMC Corp. (a) |
|
| 58,600 |
|
| 1,113,986 |
|
Equinix, Inc. (a) |
|
| 13,900 |
|
| 1,399,035 |
|
Google, Inc., Class A (a) |
|
| 4,000 |
|
| 2,101,760 |
|
Hewlett-Packard Co. |
|
| 63,000 |
|
| 3,274,110 |
|
Juniper Networks, Inc. (a) |
|
| 17,700 |
|
| 502,857 |
|
Lam Research Corp. (a) |
|
| 24,800 |
|
| 1,005,640 |
|
Linear Technology Corp. |
|
| 27,400 |
|
| 823,644 |
|
Marvell Technology Group Ltd. (a) |
|
| 65,000 |
|
| 1,342,250 |
|
MasterCard, Inc., Class A |
|
| 5,000 |
|
| 1,240,200 |
|
Microsoft Corp. |
|
| 51,500 |
|
| 1,572,810 |
|
Oracle Corp. |
|
| 72,500 |
|
| 1,873,400 |
|
QUALCOMM, Inc. |
|
| 54,300 |
|
| 2,103,582 |
|
Salesforce.com, Inc. (a) |
|
| 5,400 |
|
| 462,240 |
|
Visa, Inc., Class A |
|
| 35,600 |
|
| 3,212,188 |
|
VMware, Inc., Class A (a) |
|
| 7,900 |
|
| 486,956 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 37,406,087 |
|
|
|
|
|
|
| ||
Materials – 3.3% |
|
|
|
|
|
|
|
Cliffs Natural Resources, Inc. |
|
| 20,900 |
|
| 1,306,877 |
|
Ecolab, Inc. |
|
| 17,900 |
|
| 874,236 |
|
Freeport-McMoRan Copper & Gold, Inc. |
|
| 11,700 |
|
| 883,701 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,064,814 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 89,513,624 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Investment Companies—3.0% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 2,770,934 |
|
| 2,770,934 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANIES |
|
|
|
|
| 2,770,934 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 92,284,558 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $92,928,102. |
|
|
ADR — American Depositary Receipt | |
PLC — Public Limited Company | |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 43 |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—97.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Australia – 4.6% |
|
|
|
|
|
|
|
Australia & New Zealand Banking |
|
| 122,800 |
|
| 2,719,353 |
|
BHP Billiton Ltd. |
|
| 36,500 |
|
| 1,334,019 |
|
Boral Ltd. |
|
| 53,500 |
|
| 289,161 |
|
Macquarie Group Ltd. |
|
| 18,300 |
|
| 834,303 |
|
National Australia Bank Ltd. |
|
| 113,565 |
|
| 2,900,842 |
|
Telstra Corp. Ltd. |
|
| 513,500 |
|
| 1,504,179 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,581,857 |
|
|
|
|
|
|
| ||
Austria – 0.4% |
|
|
|
|
|
|
|
OMV AG |
|
| 21,700 |
|
| 775,309 |
|
|
|
|
|
|
| ||
Belgium – 0.3% |
|
|
|
|
|
|
|
KBC Groep NV (a) |
|
| 15,200 |
|
| 679,995 |
|
|
|
|
|
|
| ||
Brazil – 0.5% |
|
|
|
|
|
|
|
Banco Do Brasil SA |
|
| 60,000 |
|
| 1,035,579 |
|
|
|
|
|
|
| ||
Canada – 4.2% |
|
|
|
|
|
|
|
Encana Corp. |
|
| 16,000 |
|
| 529,394 |
|
Industrial Alliance Insurance and |
|
| 26,100 |
|
| 900,585 |
|
National Bank of Canada |
|
| 26,600 |
|
| 1,626,647 |
|
Nexen, Inc. |
|
| 78,892 |
|
| 1,918,890 |
|
Penn West Energy Trust |
|
| 35,660 |
|
| 718,818 |
|
Suncor Energy, Inc. |
|
| 62,428 |
|
| 2,136,261 |
|
WestJet Airlines Ltd. (a) |
|
| 59,300 |
|
| 788,331 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,618,926 |
|
|
|
|
|
|
| ||
Denmark – 2.1% |
|
|
|
|
|
|
|
Carlsberg A/S, Class B |
|
| 25,625 |
|
| 2,071,326 |
|
Danske Bank A/S (a) |
|
| 84,800 |
|
| 2,214,274 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,285,600 |
|
|
|
|
|
|
| ||
Finland – 1.8% |
|
|
|
|
|
|
|
Nokia Oyj |
|
| 296,400 |
|
| 3,623,217 |
|
|
|
|
|
|
| ||
France – 13.3% |
|
|
|
|
|
|
|
BNP Paribas SA |
|
| 60,698 |
|
| 4,168,618 |
|
Bouygues SA |
|
| 20,200 |
|
| 1,000,787 |
|
Casino Guichard-Perrachon SA |
|
| 17,000 |
|
| 1,500,466 |
|
Compagnie de Saint-Gobain |
|
| 45,800 |
|
| 2,260,669 |
|
Compagnie Generale de |
|
| 31,800 |
|
| 957,266 |
|
Credit Agricole SA |
|
| 60,739 |
|
| 868,163 |
|
Electricite de France |
|
| 42,900 |
|
| 2,298,902 |
|
France Telecom SA |
|
| 113,600 |
|
| 2,486,598 |
|
Klepierre |
|
| 25,400 |
|
| 875,190 |
|
Lagardere S.C.A. |
|
| 46,400 |
|
| 1,871,226 |
|
Sanofi-Aventis |
|
| 52,700 |
|
| 3,594,690 |
|
Societe Generale |
|
| 38,481 |
|
| 2,054,612 |
|
Vallourec SA |
|
| 4,772 |
|
| 950,390 |
|
Vivendi |
|
| 100,220 |
|
| 2,628,703 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 27,516,280 |
|
|
|
|
|
|
| ||
Germany – 8.5% |
|
|
|
|
|
|
|
Allianz SE |
|
| 35,000 |
|
| 4,001,898 |
|
Bayer AG |
|
| 45,800 |
|
| 2,935,568 |
|
Bayerische Motoren Werke AG |
|
| 60,400 |
|
| 2,983,631 |
|
Deutsche Bank AG |
|
| 38,200 |
|
| 2,637,899 |
|
E.ON AG |
|
| 91,100 |
|
| 3,368,846 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Germany, continued |
|
|
|
|
|
|
|
Muenchener Rueckversicherungs- |
|
| 5,100 |
|
| 720,030 |
|
Thyssenkrupp AG |
|
| 29,000 |
|
| 942,886 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,590,758 |
|
|
|
|
|
|
| ||
Hong Kong – 1.5% |
|
|
|
|
|
|
|
Esprit Holdings Ltd. |
|
| 259,477 |
|
| 1,858,754 |
|
New World Development Co. Ltd. |
|
| 720,509 |
|
| 1,278,015 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,136,769 |
|
|
|
|
|
|
| ||
India – 0.0% |
|
|
|
|
|
|
|
State Bank of India GDR |
|
| 450 |
|
| 45,812 |
|
|
|
|
|
|
| ||
Italy – 3.6% |
|
|
|
|
|
|
|
ENI SpA |
|
| 81,100 |
|
| 1,812,315 |
|
Telecom Italia RSP (a) |
|
| 920,000 |
|
| 1,038,109 |
|
Telecom Italia SpA (a) |
|
| 1,289,400 |
|
| 1,802,496 |
|
UniCredit SpA (a) |
|
| 1,048,600 |
|
| 2,747,742 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,400,662 |
|
|
|
|
|
|
| ||
Japan – 23.0% |
|
|
|
|
|
|
|
AEON Co. Ltd. |
|
| 81,200 |
|
| 929,864 |
|
Air Water, Inc. |
|
| 26,000 |
|
| 287,744 |
|
Asahi Breweries Ltd. |
|
| 73,000 |
|
| 1,311,537 |
|
Dowa Holdings Co. Ltd. |
|
| 89,000 |
|
| 494,163 |
|
East Japan Railway Co. |
|
| 11,800 |
|
| 789,473 |
|
Elpida Memory, Inc. (a) |
|
| 47,200 |
|
| 1,005,648 |
|
Isuzu Motors Ltd. (a) |
|
| 382,000 |
|
| 1,215,582 |
|
ITOCHU Corp. |
|
| 179,000 |
|
| 1,551,043 |
|
Japan Tobacco, Inc. |
|
| 743 |
|
| 2,575,237 |
|
JFE Holdings, Inc. |
|
| 44,000 |
|
| 1,569,374 |
|
JX Holdings, Inc. (a) |
|
| 187,000 |
|
| 1,043,314 |
|
KDDI Corp. |
|
| 279 |
|
| 1,345,420 |
|
KONAMI Corp. |
|
| 11,700 |
|
| 227,028 |
|
Konica Minolta Holdings, Inc. |
|
| 48,000 |
|
| 607,259 |
|
Mitsubishi Corp. |
|
| 110,900 |
|
| 2,627,407 |
|
Mitsubishi Gas Chemical Co., Inc. |
|
| 148,000 |
|
| 892,577 |
|
Mitsubishi Materials Corp. (a) |
|
| 245,000 |
|
| 734,465 |
|
Mitsui & Co. Ltd. |
|
| 149,000 |
|
| 2,239,693 |
|
Mitsui Fudosan Co. Ltd. |
|
| 142,000 |
|
| 2,630,156 |
|
Murata Manufacturing Co. Ltd. |
|
| 37,200 |
|
| 2,201,798 |
|
NAMCO BANDAI Holdings, Inc. |
|
| 102,800 |
|
| 1,025,935 |
|
NGK Spark Plug Co. Ltd. |
|
| 66,000 |
|
| 895,726 |
|
Nippon Telegraph & Telephone Corp. |
|
| 63,000 |
|
| 2,564,735 |
|
Nissan Motor Co. Ltd. (a) |
|
| 371,400 |
|
| 3,232,126 |
|
Sharp Corp. |
|
| 134,000 |
|
| 1,735,847 |
|
Sony Corp. |
|
| 59,110 |
|
| 2,024,190 |
|
Sumitomo Mitsui Financial Group, Inc. |
|
| 69,800 |
|
| 2,308,783 |
|
Sumitomo Realty & Development Co. Ltd. |
|
| 27,000 |
|
| 554,100 |
|
Takashimaya Co. Ltd. |
|
| 101,000 |
|
| 957,692 |
|
The Furukawa Electric Co. Ltd. |
|
| 123,000 |
|
| 609,791 |
|
The Tokyo Electric Power Co., Inc. |
|
| 72,700 |
|
| 1,824,800 |
|
Tokyo Gas Co. Ltd. |
|
| 221,000 |
|
| 939,302 |
|
Toshiba Corp. (a) |
|
| 441,000 |
|
| 2,542,570 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 47,494,379 |
|
|
|
|
|
|
| ||
Jersey – 0.3% |
|
|
|
|
|
|
|
Informa plc |
|
| 94,200 |
|
| 568,462 |
|
|
|
|
|
|
|
|
|
|
44 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Kazakhstan – 0.4% |
|
|
|
|
|
|
|
KazMunaiGas Exploration Production GDR |
|
| 31,650 |
|
| 773,883 |
|
|
|
|
|
|
| ||
Netherlands – 2.1% |
|
|
|
|
|
|
|
Koninklijke DSM NV |
|
| 28,200 |
|
| 1,259,455 |
|
Randstad Holding NV (a) |
|
| 60,200 |
|
| 3,049,905 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,309,360 |
|
|
|
|
|
|
| ||
New Zealand – 0.3% |
|
|
|
|
|
|
|
Telecom Corp. of New Zealand Ltd. |
|
| 442,923 |
|
| 686,556 |
|
|
|
|
|
|
| ||
Norway – 0.4% |
|
|
|
|
|
|
|
Petroleum Geo-Services ASA (a) |
|
| 54,750 |
|
| 753,837 |
|
|
|
|
|
|
| ||
Russian Federation – 0.3% |
|
|
|
|
|
|
|
Gazprom OAO ADR |
|
| 25,100 |
|
| 576,201 |
|
|
|
|
|
|
| ||
South Korea – 2.0% |
|
|
|
|
|
|
|
Hynix Semiconductor, Inc. (a) |
|
| 40,400 |
|
| 1,022,683 |
|
KB Financial Group, Inc. ADR |
|
| 35,779 |
|
| 1,746,015 |
|
Samsung Electronics Co. Ltd., Preferred |
|
| 2,900 |
|
| 1,370,739 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,139,437 |
|
|
|
|
|
|
| ||
Spain – 3.2% |
|
|
|
|
|
|
|
Banco Santander SA |
|
| 325,469 |
|
| 4,137,960 |
|
Telefonica SA |
|
| 106,700 |
|
| 2,414,892 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,552,852 |
|
|
|
|
|
|
| ||
Sweden – 0.7% |
|
|
|
|
|
|
|
Electrolux AB, B Shares |
|
| 58,600 |
|
| 1,507,596 |
|
|
|
|
|
|
| ||
Switzerland – 1.6% |
|
|
|
|
|
|
|
Novartis AG |
|
| 63,940 |
|
| 3,261,026 |
|
|
|
|
|
|
| ||
Taiwan – 1.0% |
|
|
|
|
|
|
|
AU Optronics Corp. |
|
| 1,134,030 |
|
| 1,306,945 |
|
Compal Electronics, Inc. |
|
| 804 |
|
| 1,118 |
|
United Microelectronics Corp. (a) |
|
| 1,470,000 |
|
| 739,773 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,047,836 |
|
|
|
|
|
|
| ||
Turkey – 0.7% |
|
|
|
|
|
|
|
Turkiye Garanti Bankasi AS |
|
| 308,700 |
|
| 1,496,110 |
|
|
|
|
|
|
| ||
United Kingdom – 20.8% |
|
|
|
|
|
|
|
AstraZeneca plc |
|
| 77,900 |
|
| 3,441,577 |
|
BAE Systems plc |
|
| 248,700 |
|
| 1,303,277 |
|
Barclays plc |
|
| 553,900 |
|
| 2,844,814 |
|
BP plc |
|
| 544,700 |
|
| 4,750,039 |
|
Imperial Tobacco Group plc |
|
| 33,300 |
|
| 948,495 |
|
Inchcape plc (a) |
|
| 1,239,400 |
|
| 648,853 |
|
Kazakhmys plc |
|
| 52,000 |
|
| 1,101,476 |
|
Marks & Spencer Group plc |
|
| 370,600 |
|
| 2,072,053 |
|
Old Mutual plc (a) |
|
| 1,161,500 |
|
| 2,049,562 |
|
Rentokil Initial plc (a) |
|
| 273,400 |
|
| 530,160 |
|
Rio Tinto plc |
|
| 62,900 |
|
| 3,251,424 |
|
Rolls-Royce Group plc |
|
| 289,600 |
|
| 2,551,380 |
|
Royal Dutch Shell plc, A Shares |
|
| 200,987 |
|
| 6,305,823 |
|
Thomas Cook Group plc |
|
| 175,500 |
|
| 665,648 |
|
Travis Perkins plc (a) |
|
| 65,900 |
|
| 850,987 |
|
Tui Travel plc |
|
| 208,700 |
|
| 890,202 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
United Kingdom, continued |
|
|
|
|
|
|
|
Vodafone Group plc |
|
| 2,629,958 |
|
| 5,826,644 |
|
Xstrata plc |
|
| 181,550 |
|
| 2,977,634 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 43,010,048 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 201,468,347 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Investment Company—1.0% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets |
|
| 2,025,228 |
|
| 2,025,228 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANIES |
|
|
|
|
| 2,025,228 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 203,493,575 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $206,344,851. |
|
|
ADR — American Depositary Receipt | |
GDR — Global Depositary Receipt | |
PLC — Public Limited Company | |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 45 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued) |
At April 30, 2010 the portfolio’s open foreign currency contracts were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
| Delivery |
| Amount |
| Contract |
| Value |
| Unrealized |
| |||||||
|
|
|
|
|
| |||||||||||||
SHORT CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Euro |
| 7/15/2010 |
|
| 3,283,000 |
|
|
| 4,415,537 |
|
|
| 4,371,540 |
|
| 43,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 43,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2010:
|
|
|
|
|
Industry |
|
| Percent of | |
|
| |||
Aerospace & Defense |
|
| 1.9% |
|
Airlines |
|
| 0.4% |
|
Auto Components |
|
| 0.4% |
|
Automobiles |
|
| 3.6% |
|
Beverages |
|
| 1.6% |
|
Building Products |
|
| 1.1% |
|
Capital Markets |
|
| 1.7% |
|
Chemicals |
|
| 1.2% |
|
Commercial Banks |
|
| 15.2% |
|
Commercial Services & Supplies |
|
| 0.3% |
|
Communications Equipment |
|
| 1.8% |
|
Computers & Peripherals |
|
| 1.2% |
|
Construction & Engineering |
|
| 0.5% |
|
Construction Materials |
|
| 0.1% |
|
Distributors |
|
| 0.3% |
|
Diversified Financial Services |
|
| 0.8% |
|
Diversified Telecommunication Services |
|
| 6.1% |
|
Electric Utilities |
|
| 3.6% |
|
Electrical Equipment |
|
| 0.3% |
|
Electronic Equipment, Instruments & Components |
|
| 1.7% |
|
Energy Equipment & Services |
|
| 0.8% |
|
Food & Staples Retailing |
|
| 1.2% |
|
Gas Utilities |
|
| 0.5% |
|
Hotels, Restaurants & Leisure |
|
| 0.8% |
|
Household Durables |
|
| 2.6% |
|
Insurance |
|
| 3.7% |
|
Leisure Equipment & Products |
|
| 0.5% |
|
Machinery |
|
| 0.5% |
|
Media |
|
| 2.5% |
|
Metals & Mining |
|
| 6.0% |
|
Investment Companies |
|
| 1.0% |
|
Multiline Retail |
|
| 1.5% |
|
Office Electronics |
|
| 0.3% |
|
Oil, Gas & Consumable Fuels |
|
| 10.3% |
|
Pharmaceuticals |
|
| 6.4% |
|
Professional Services |
|
| 1.5% |
|
Real Estate Investment Trusts (REITS) |
|
| 0.4% |
|
Real Estate Management & Development |
|
| 2.2% |
|
Road & Rail |
|
| 0.4% |
|
Semiconductors & Semiconductor Equipment |
|
| 2.0% |
|
Software |
|
| 0.1% |
|
Specialty Retail |
|
| 0.9% |
|
Tobacco |
|
| 1.7% |
|
Trading Companies & Distributors |
|
| 3.5% |
|
Wireless Telecommunication Services |
|
| 3.5% |
|
|
|
| ||
Total Investments |
|
| 98.6% |
|
|
|
|
|
|
|
46 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—96.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Consumer Discretionary – 14.7% |
|
|
|
|
|
|
|
American Eagle Outfitters, Inc. |
|
| 135,050 |
|
| 2,270,190 |
|
Ctrip.com International Ltd. ADR (a) |
|
| 61,500 |
|
| 2,245,980 |
|
DeVry, Inc. |
|
| 22,550 |
|
| 1,406,895 |
|
Discovery Communications, Inc., Class A (a) |
|
| 56,950 |
|
| 2,203,965 |
|
Gentex Corp. |
|
| 99,000 |
|
| 2,127,510 |
|
Hibbett Sports, Inc. (a) |
|
| 81,550 |
|
| 2,242,625 |
|
Hospitality Properties Trust |
|
| 53,300 |
|
| 1,411,917 |
|
O’Reilly Automotive, Inc. (a) |
|
| 44,200 |
|
| 2,160,938 |
|
Scientific Games Corp., Class A (a) |
|
| 139,700 |
|
| 2,054,987 |
|
WMS Industries, Inc. (a) |
|
| 48,550 |
|
| 2,428,471 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 20,553,478 |
|
|
|
|
|
|
| ||
Consumer Staples – 3.4% |
|
|
|
|
|
|
|
Church & Dwight Co., Inc. |
|
| 33,500 |
|
| 2,319,875 |
|
Ralcorp Holdings, Inc. (a) |
|
| 35,600 |
|
| 2,369,180 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,689,055 |
|
|
|
|
|
|
| ||
Energy – 11.7% |
|
|
|
|
|
|
|
Consol Energy, Inc. |
|
| 77,880 |
|
| 3,479,678 |
|
Denbury Resources, Inc. (a) |
|
| 173,900 |
|
| 3,330,185 |
|
Ensco International plc ADR |
|
| 57,700 |
|
| 2,722,286 |
|
Exterran Holdings, Inc. (a) |
|
| 99,800 |
|
| 2,909,170 |
|
Massey Energy Co. |
|
| 105,350 |
|
| 3,858,971 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 16,300,290 |
|
|
|
|
|
|
| ||
Financials – 4.7% |
|
|
|
|
|
|
|
Credicorp Ltd. |
|
| 22,550 |
|
| 1,958,693 |
|
First Horizon National Corp. (a) |
|
| 1 |
|
| 13 |
|
Huntington Bancshares, Inc. |
|
| 93,800 |
|
| 635,026 |
|
MSCI, Inc., Class A (a) |
|
| 43,400 |
|
| 1,503,810 |
|
Waddell & Reed Financial, Inc., Class A |
|
| 68,000 |
|
| 2,524,160 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,621,702 |
|
|
|
|
|
|
| ||
Health Care – 19.5% |
|
|
|
|
|
|
|
Alexion Pharmaceuticals, Inc. (a) |
|
| 92,250 |
|
| 5,062,680 |
|
Charles River Laboratories |
|
| 69,400 |
|
| 2,323,512 |
|
DaVita, Inc. (a) |
|
| 48,800 |
|
| 3,046,584 |
|
Elan Corp. plc ADR (a) |
|
| 272,300 |
|
| 1,829,856 |
|
Hill-Rom Holdings, Inc. |
|
| 70,150 |
|
| 2,224,456 |
|
IDEXX Laboratories, Inc. (a) |
|
| 45,200 |
|
| 2,989,528 |
|
Illumina, Inc. (a) |
|
| 33,100 |
|
| 1,385,897 |
|
Life Technologies Corp. (a) |
|
| 47,000 |
|
| 2,571,370 |
|
MEDNAX, Inc. (a) |
|
| 24,237 |
|
| 1,331,581 |
|
Mettler-Toledo International, Inc. (a) |
|
| 25,950 |
|
| 3,256,206 |
|
Santarus, Inc. (a) |
|
| 186,000 |
|
| 610,080 |
|
Skilled Healthcare Group, Inc., Class A (a) |
|
| 103,400 |
|
| 691,746 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 27,323,496 |
|
|
|
|
|
|
| ||
Industrials – 14.1% |
|
|
|
|
|
|
|
AMETEK, Inc. |
|
| 55,600 |
|
| 2,404,700 |
|
BE Aerospace, Inc. (a) |
|
| 108,600 |
|
| 3,226,506 |
|
Crane Co. |
|
| 63,200 |
|
| 2,271,408 |
|
IDEX Corp. |
|
| 74,800 |
|
| 2,513,280 |
|
Joy Global, Inc. |
|
| 27,450 |
|
| 1,559,435 |
|
Landstar System, Inc. |
|
| 47,000 |
|
| 2,078,340 |
|
Navigant Consulting, Inc. (a) |
|
| 125,450 |
|
| 1,615,796 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Industrials, continued |
|
|
|
|
|
|
|
Waste Connections, Inc. (a) |
|
| 57,300 |
|
| 2,050,767 |
|
WESCO International, Inc. (a) |
|
| 47,250 |
|
| 1,919,295 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 19,639,527 |
|
|
|
|
|
|
| ||
Information Technology – 22.3% |
|
|
|
|
|
|
|
Alliance Data Systems Corp. (a) |
|
| 45,600 |
|
| 3,422,736 |
|
Altera Corp. |
|
| 73,400 |
|
| 1,861,424 |
|
BMC Software, Inc. (a) |
|
| 66,550 |
|
| 2,619,408 |
|
Brocade Communications Systems, Inc. (a) |
|
| 291,500 |
|
| 1,891,835 |
|
Check Point Software Technologies Ltd. (a) |
|
| 77,250 |
|
| 2,751,645 |
|
Citrix Systems, Inc. (a) |
|
| 44,200 |
|
| 2,077,400 |
|
Comverse Technology, Inc. (a) |
|
| 161,400 |
|
| 1,481,652 |
|
LSI Corp. (a) |
|
| 434,000 |
|
| 2,612,680 |
|
Maxim Integrated Products, Inc. |
|
| 27,150 |
|
| 527,253 |
|
Nuance Communications, Inc. (a) |
|
| 200,250 |
|
| 3,658,567 |
|
ON Semiconductor Corp. (a) |
|
| 156,800 |
|
| 1,244,992 |
|
Polycom, Inc. (a) |
|
| 44,150 |
|
| 1,437,083 |
|
Salesforce.com, Inc. (a) |
|
| 33,075 |
|
| 2,831,220 |
|
VeriFone Systems, Inc. (a) |
|
| 64,500 |
|
| 1,227,435 |
|
VeriSign, Inc. (a) |
|
| 55,950 |
|
| 1,525,756 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 31,171,086 |
|
|
|
|
|
|
| ||
Materials – 4.4% |
|
|
|
|
|
|
|
Celanese Corp., Series A |
|
| 69,100 |
|
| 2,210,509 |
|
Compass Minerals International, Inc. |
|
| 16,800 |
|
| 1,265,208 |
|
Crown Holdings, Inc. (a) |
|
| 104,600 |
|
| 2,719,600 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,195,317 |
|
|
|
|
|
|
| ||
Telecommunication Services – 2.1% |
|
|
|
|
|
|
|
NII Holdings, Inc. (a) |
|
| 67,700 |
|
| 2,871,834 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 135,365,785 |
|
|
|
|
|
|
| ||
Investment Companies—2.7% |
|
|
|
|
|
|
|
Northern Institutional Government Select |
|
| 3,832,877 |
|
| 3,832,877 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANIES |
|
|
|
|
| 3,832,877 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 139,198,662 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $139,767,158. |
|
|
ADR | — American Depositary Receipt |
PLC | — Public Limited Company |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 47 |
|
Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—96.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Consumer Discretionary – 4.8% |
|
|
|
|
|
|
|
CBS Corp., Class B |
|
| 24,450 |
|
| 396,335 |
|
Viacom, Inc., Class B (a) |
|
| 56,500 |
|
| 1,996,145 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,392,480 |
|
|
|
|
|
|
| ||
Consumer Staples – 7.8% |
|
|
|
|
|
|
|
CVS Caremark Corp. |
|
| 25,900 |
|
| 956,487 |
|
Kimberly-Clark Corp. |
|
| 19,900 |
|
| 1,219,074 |
|
Kroger Co. (The) |
|
| 28,200 |
|
| 626,886 |
|
Philip Morris International, Inc. |
|
| 22,600 |
|
| 1,109,208 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,911,655 |
|
|
|
|
|
|
| ||
Energy – 17.0% |
|
|
|
|
|
|
|
Apache Corp. |
|
| 19,400 |
|
| 1,974,144 |
|
Canadian Natural Resources Ltd. |
|
| 16,000 |
|
| 1,231,040 |
|
ConocoPhillips |
|
| 9,471 |
|
| 560,588 |
|
Halliburton Co. |
|
| 21,500 |
|
| 658,975 |
|
Hess Corp. |
|
| 12,100 |
|
| 768,955 |
|
Noble Energy, Inc. |
|
| 19,500 |
|
| 1,489,800 |
|
Occidental Petroleum Corp. |
|
| 12,000 |
|
| 1,063,920 |
|
Talisman Energy, Inc. |
|
| 46,600 |
|
| 794,064 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,541,486 |
|
|
|
|
|
|
| ||
Financials – 21.3% |
|
|
|
|
|
|
|
Aon Corp. |
|
| 38,500 |
|
| 1,634,710 |
|
Citigroup, Inc. (a) |
|
| 277,000 |
|
| 1,210,490 |
|
Genworth Financial, Inc., Class A (a) |
|
| 50,800 |
|
| 839,216 |
|
JP Morgan Chase & Co. |
|
| 22,150 |
|
| 943,147 |
|
Loews Corp. |
|
| 41,240 |
|
| 1,535,778 |
|
MetLife, Inc. |
|
| 42,000 |
|
| 1,914,360 |
|
The Hartford Financial Services Group, Inc. |
|
| 43,900 |
|
| 1,254,223 |
|
Wells Fargo & Co. |
|
| 42,700 |
|
| 1,413,797 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 10,745,721 |
|
|
|
|
|
|
| ||
Health Care – 12.9% |
|
|
|
|
|
|
|
Aetna, Inc. |
|
| 20,800 |
|
| 614,640 |
|
Amgen, Inc. (a) |
|
| 33,700 |
|
| 1,933,032 |
|
Merck & Co., Inc. |
|
| 37,600 |
|
| 1,317,504 |
|
Pfizer, Inc. |
|
| 92,000 |
|
| 1,538,240 |
|
Sanofi-Aventis ADR |
|
| 33,000 |
|
| 1,125,630 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,529,046 |
|
|
|
|
|
|
| ||
Industrials – 10.3% |
|
|
|
|
|
|
|
Ingersoll-Rand plc |
|
| 23,900 |
|
| 883,822 |
|
Lockheed Martin Corp. |
|
| 18,400 |
|
| 1,561,976 |
|
Pitney Bowes, Inc. |
|
| 39,500 |
|
| 1,003,300 |
|
Raytheon Co. |
|
| 16,900 |
|
| 985,270 |
|
Union Pacific Corp. |
|
| 10,000 |
|
| 756,600 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,190,968 |
|
|
|
|
|
|
| ||
Information Technology – 10.1% |
|
|
|
|
|
|
|
CA, Inc. |
|
| 101,200 |
|
| 2,308,372 |
|
Microsoft Corp. |
|
| 21,700 |
|
| 662,718 |
|
Motorola, Inc. (a) |
|
| 297,700 |
|
| 2,104,739 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,075,829 |
|
|
|
|
|
|
| ||
Materials – 8.4% |
|
|
|
|
|
|
|
AngloGold Ashanti Ltd. ADR |
|
| 40,727 |
|
| 1,704,832 |
|
Barrick Gold Corp. |
|
| 48,000 |
|
| 2,090,400 |
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Materials, continued |
|
|
|
|
|
|
|
The Mosaic Co. |
|
| 8,600 |
|
| 439,804 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,235,036 |
|
|
|
|
|
|
| ||
Telecommunication Services – 2.7% |
|
|
|
|
|
|
|
AT&T, Inc. |
|
| 26,600 |
|
| 693,196 |
|
Verizon Communications, Inc. |
|
| 22,700 |
|
| 655,803 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,348,999 |
|
|
|
|
|
|
| ||
Utilities – 1.6% |
|
|
|
|
|
|
|
NRG Energy, Inc. (a) |
|
| 33,800 |
|
| 816,946 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 48,788,166 |
|
|
|
|
|
|
| ||
Investment Companies—3.0% |
|
|
|
|
|
|
|
Northern Institutional Government Select |
|
| 1,485,961 |
|
| 1,485,961 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANIES |
|
|
|
|
| 1,485,961 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENTS |
|
|
|
|
| 50,274,127 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $50,438,531. |
|
|
ADR | — American Depositary Receipt |
PLC | — Public Limited Company |
|
|
(a) | Represents non-income producing security. |
|
|
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2010. |
|
|
|
48 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
(This Page Intentionally Left Blank)
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International |
| Opportunity |
| Value |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 92,284,558 |
| $ | 203,493,575 |
| $ | 139,198,662 |
| $ | 50,274,127 |
|
Foreign currency, at value |
|
| — |
|
| 1,027,557 |
|
| — |
|
| — |
|
Unrealized appreciation on foreign currency exchange contracts |
|
| — |
|
| 43,997 |
|
| — |
|
| — |
|
Dividends receivable |
|
| 13,904 |
|
| 519,836 |
|
| 67,656 |
|
| 32,935 |
|
Receivable for investments sold |
|
| 2,544,074 |
|
| 1,591,410 |
|
| 698,473 |
|
| 162,668 |
|
Prepaid expenses and other assets |
|
| 441 |
|
| 68 |
|
| 886 |
|
| 231 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 94,842,977 |
|
| 206,676,443 |
|
| 139,965,677 |
|
| 50,469,961 |
|
|
|
|
|
|
| ||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for investments purchased |
|
| 1,857,669 |
|
| 156,907 |
|
| 86,396 |
|
| — |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 44,465 |
|
| 122,845 |
|
| 93,325 |
|
| 21,826 |
|
Administration |
|
| 1,596 |
|
| 3,664 |
|
| 2,408 |
|
| 859 |
|
Compliance Services |
|
| 17 |
|
| 235 |
|
| 19 |
|
| 9 |
|
Custodian |
|
| 1,825 |
|
| 22,589 |
|
| 2,359 |
|
| 706 |
|
Trustee |
|
| 75 |
|
| 237 |
|
| 107 |
|
| 42 |
|
Other |
|
| 9,228 |
|
| 25,115 |
|
| 13,905 |
|
| 7,988 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 1,914,875 |
|
| 331,592 |
|
| 198,519 |
|
| 31,430 |
|
|
|
|
|
|
| ||||||||
Applicable to investors’ beneficial interest |
| $ | 92,928,102 |
| $ | 206,344,851 |
| $ | 139,767,158 |
| $ | 50,438,531 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments, at cost |
| $ | 77,240,469 |
| $ | 209,523,380 |
| $ | 116,929,366 |
| $ | 47,782,069 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at cost |
| $ | — |
| $ | 1,030,180 |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
50 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Operations—For the six months ended April 30, 2010 (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International |
| Opportunity |
| Value |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
| $ | 293,975 |
| $ | 2,400,128 |
| $ | 300,881 |
| $ | 380,676 |
|
Foreign tax withholding |
|
| — |
|
| (216,269 | ) |
| — |
|
| (1,578 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income (Loss) |
|
| 293,975 |
|
| 2,183,859 |
|
| 300,881 |
|
| 379,098 |
|
|
|
|
|
|
| ||||||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 260,336 |
|
| 740,820 |
|
| 542,314 |
|
| 130,387 |
|
Administration |
|
| 9,314 |
|
| 22,048 |
|
| 13,977 |
|
| 5,114 |
|
Accounting |
|
| 21,877 |
|
| 43,508 |
|
| 22,042 |
|
| 21,986 |
|
Compliance Services |
|
| 188 |
|
| 307 |
|
| 274 |
|
| 103 |
|
Custodian |
|
| 3,785 |
|
| 94,317 |
|
| 6,190 |
|
| 1,592 |
|
Printing |
|
| 2,282 |
|
| 5,457 |
|
| 3,161 |
|
| 1,260 |
|
Professional |
|
| 2,356 |
|
| 3,988 |
|
| 3,511 |
|
| 1,660 |
|
Trustee |
|
| 557 |
|
| 1,358 |
|
| 817 |
|
| 310 |
|
Other |
|
| 1,503 |
|
| 3,301 |
|
| 2,252 |
|
| 850 |
|
|
|
|
|
|
| ||||||||
Total Expenses |
|
| 302,198 |
|
| 915,104 |
|
| 594,538 |
|
| 163,262 |
|
|
|
|
|
|
| ||||||||
Net Investment Income (Loss) |
|
| (8,223 | ) |
| 1,268,755 |
|
| (293,657 | ) |
| 215,836 |
|
|
|
|
|
|
| ||||||||
Net Realized/Unrealized Gains (Losses) from Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investments and foreign currency transactions |
|
| 4,524,536 |
|
| (2,839,558 | ) |
| 9,087,545 |
|
| 299,115 |
|
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 8,343,374 |
|
| 5,787,247 |
|
| 21,086,436 |
|
| 6,091,061 |
|
|
|
|
|
|
| ||||||||
Net realized/unrealized gains/(losses) from investments and foreign currency transactions |
|
| 12,867,910 |
|
| 2,947,689 |
|
| 30,173,981 |
|
| 6,390,176 |
|
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | 12,859,687 |
| $ | 4,216,444 |
| $ | 29,880,324 |
| $ | 6,606,012 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 51 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International Equity |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (8,223 | ) | $ | 136,286 |
| $ | 1,268,755 |
| $ | 4,063,044 |
|
Net realized gains (losses) from investments and foreign currency transactions |
|
| 4,524,536 |
|
| (12,681,042 | ) |
| (2,839,558 | ) |
| (72,712,532 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 8,343,374 |
|
| 26,751,782 |
|
| 5,787,247 |
|
| 109,291,830 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 12,859,687 |
|
| 14,207,026 |
|
| 4,216,444 |
|
| 40,642,342 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 4,565,447 |
|
| 8,763,453 |
|
| 11,526,713 |
|
| 23,984,676 |
|
Value of withdrawals |
|
| (12,659,916 | ) |
| (16,749,107 | ) |
| (26,546,511 | ) |
| (46,787,723 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (8,094,469 | ) |
| (7,985,654 | ) |
| (15,019,798 | ) |
| (22,803,047 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 4,765,218 |
|
| 6,221,372 |
|
| (10,803,354 | ) |
| 17,839,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 88,162,884 |
|
| 81,941,512 |
|
| 217,148,205 |
|
| 199,308,910 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 92,928,102 |
| $ | 88,162,884 |
| $ | 206,344,851 |
| $ | 217,148,205 |
|
|
|
|
|
|
|
|
|
|
52 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
|
Statements of Changes in Net Assets (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Opportunity |
| Value |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (293,657 | ) | $ | (424,078 | ) | $ | 215,836 |
| $ | 644,544 |
|
Net realized gains (losses) from investment and foreign currency transactions |
|
| 9,087,545 |
|
| (15,580,861 | ) |
| 299,115 |
|
| (1,577,886 | ) |
Change in unrealized appreciation/depreciation from investments and foreign currencies |
|
| 21,086,436 |
|
| 31,798,950 |
|
| 6,091,061 |
|
| 9,018,297 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 29,880,324 |
|
| 15,794,011 |
|
| 6,606,012 |
|
| 8,084,955 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 4,576,029 |
|
| 8,367,302 |
|
| 2,934,777 |
|
| 4,852,585 |
|
Value of withdrawals |
|
| (24,437,516 | ) |
| (22,382,631 | ) |
| (8,788,414 | ) |
| (12,914,556 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (19,861,487 | ) |
| (14,015,329 | ) |
| (5,853,637 | ) |
| (8,061,971 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 10,018,837 |
|
| 1,778,682 |
|
| 752,375 |
|
| 22,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 129,748,321 |
|
| 127,969,639 |
|
| 49,686,156 |
|
| 49,663,172 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 139,767,158 |
| $ | 129,748,321 |
| $ | 50,438,531 |
| $ | 49,686,156 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 53 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratio/Supplementary Data |
| ||||||||||||||||
|
|
|
| ||||||||||||||||||
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||||
GROWTH PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2005 |
| 13.59 | %(d) |
|
| $ | 49,415 |
|
| 0.63 | %(d) |
| 0.77 | %(d) |
| 0.68 | % |
| 79.54 | % |
|
Year Ended October 31, 2006 |
| 7.53 | % |
|
|
| 59,828 |
|
| 0.69 | % |
| 0.38 | % |
| 0.69 | % |
| 75.06 | % |
|
Year Ended October 31, 2007 |
| 31.11 | % |
|
|
| 89,686 |
|
| 0.62 | % |
| 0.45 | % |
| 0.62 | % |
| 57.04 | % |
|
Year Ended October 31, 2008 |
| (37.75 | )%(e) |
|
|
| 81,942 |
|
| 0.62 | % |
| 0.19 | % |
| 0.62 | % |
| 157.87 | % |
|
Year Ended October 31, 2009 |
| 19.31 | % |
|
|
| 88,163 |
|
| 0.69 | % |
| 0.17 | % |
| 0.69 | % |
| 65.67 | % |
|
Six Months Ended April 30, 2010 (Unaudited) |
| 15.11 | % |
|
|
| 92,928 |
|
| 0.67 | % |
| (0.02 | )% |
| 0.67 | % |
| 42.87 | % |
|
INTERNATIONAL EQUITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2005 |
| 19.54 | % |
|
| $ | 230,230 |
|
| 0.84 | % |
| 1.92 | % |
| 0.84 | % |
| 31.32 | % |
|
Year Ended October 31, 2006 |
| 32.79 | % |
|
|
| 333,755 |
|
| 0.86 | % |
| 2.03 | % |
| 0.86 | % |
| 33.39 | % |
|
Year Ended October 31, 2007 |
| 25.17 | % |
|
|
| 455,062 |
|
| 0.79 | % |
| 2.16 | % |
| 0.79 | % |
| 26.08 | % |
|
Year Ended October 31, 2008 |
| (51.79 | )% |
|
|
| 199,309 |
|
| 0.76 | % |
| 2.65 | % |
| 0.76 | % |
| 28.98 | % |
|
Year Ended October 31, 2009 |
| 24.16 | % |
|
|
| 217,148 |
|
| 0.88 | % |
| 2.23 | % |
| 0.88 | % |
| 58.31 | % |
|
Six Months Ended April 30, 2010 (Unaudited) |
| 1.62 | % |
|
|
| 206,345 |
|
| 0.86 | % |
| 1.19 | % |
| 0.86 | % |
| 35.03 | % |
|
OPPORTUNITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2005 |
| 14.35 | %(d) |
|
| $ | 218,778 |
|
| 0.85 | %(d) |
| (0.45 | )%(d) |
| 0.90 | % |
| 63.95 | % |
|
Year Ended October 31, 2006 |
| 19.54 | % |
|
|
| 241,495 |
|
| 0.91 | % |
| (0.40 | )% |
| 0.91 | % |
| 60.83 | % |
|
Year Ended October 31, 2007 |
| 30.54 | % |
|
|
| 224,268 |
|
| 0.91 | % |
| (0.55 | )% |
| 0.91 | % |
| 69.41 | % |
|
Year Ended October 31, 2008 |
| (35.30 | )% |
|
|
| 127,970 |
|
| 0.87 | % |
| (0.46 | )% |
| 0.87 | % |
| 80.42 | % |
|
Year Ended October 31, 2009 |
| 15.41 | % |
|
|
| 129,748 |
|
| 0.90 | % |
| (0.37 | )% |
| 0.90 | % |
| 64.91 | % |
|
Six Months Ended April 30, 2010 (Unaudited) |
| 24.35 | % |
|
|
| 139,767 |
|
| 0.88 | % |
| (0.43 | )% |
| 0.88 | % |
| 26.31 | % |
|
VALUE PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2005 |
| 15.23 | %(d) |
|
| $ | 54,150 |
|
| 0.64 | %(d) |
| 1.15 | %(d) |
| 0.69 | % |
| 16.45 | % |
|
Year Ended October 31, 2006 |
| 22.21 | % |
|
|
| 67,432 |
|
| 0.71 | % |
| 1.23 | % |
| 0.71 | % |
| 20.63 | % |
|
Year Ended October 31, 2007 |
| 10.28 | % |
|
|
| 82,658 |
|
| 0.66 | % |
| 1.29 | % |
| 0.66 | % |
| 18.67 | % |
|
Year Ended October 31, 2008 |
| (39.91 | )% |
|
|
| 49,663 |
|
| 0.64 | % |
| 1.54 | % |
| 0.64 | % |
| 24.61 | % |
|
Year Ended October 31, 2009 |
| 20.05 | % |
|
|
| 49,686 |
|
| 0.68 | % |
| 1.41 | % |
| 0.68 | % |
| 19.77 | % |
|
Six Months Ended April 30, 2010 (Unaudited) |
| 13.96 | % |
|
|
| 50,439 |
|
| 0.66 | % |
| 0.87 | % |
| 0.66 | % |
| 14.64 | % |
|
|
|
(a) | Not annualized for period less than one year. |
|
|
(b) | Annualized for periods less than one year. |
|
|
(c) | During each period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(d) | During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.05%, 0.04% and 0.05% for the Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively. |
|
|
(e) | During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Growth Portfolio related to violations of certain investment policies and limitations. The corresponding impact to total return was 0.08%. |
|
|
|
54 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) |
|
|
1. | Organization: |
|
|
| The HSBC Investor Portfolios (the “Portfolio Trust’’), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,’’ collectively the “Portfolios’’): |
|
|
|
| Portfolio | Short Name |
| ||
| HSBC Investor Growth Portfolio | Growth Portfolio |
| HSBC Investor International Equity Portfolio | International Equity Portfolio |
| HSBC Investor Opportunity Portfolio | Opportunity Portfolio |
| HSBC Investor Value Portfolio | Value Portfolio |
|
|
| The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios. |
|
|
| The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. |
|
|
| Under the Portfolio Trust’s organizational documents, the Portfolio Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolio Trust may enter into contracts with its service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolio Trust expects the risk of loss to be remote. |
|
|
2. | Significant Accounting Policies: |
|
|
| The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP’’). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
|
|
| Securities Valuation: |
|
|
| The Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below. |
|
|
| Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market. Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity |
|
|
HSBC INVESTOR PORTFOLIOS | 55 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges. |
|
|
| Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. Repurchase agreements are valued at original cost. |
|
|
| Investment Transactions and Related Income: |
|
|
| Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date. |
|
|
| Foreign Currency Translation: |
|
|
| The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. |
|
|
| Expense Allocations: |
|
|
| Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis. |
|
|
| Federal Income Taxes: |
|
|
| Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies. |
|
|
| Management of the Portfolios has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken. |
|
|
| New Accounting Pronouncements: |
|
|
| In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Portfolio Trust’s financial statements and related disclosures. |
|
|
| Derivative Instruments |
|
|
| All open derivative positions at period end are reflected on the Portfolio’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Portfolios, including the primary underlying risk exposures related to each instrument type. |
|
|
56 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| Foreign Currency Exchange Contracts: |
|
|
| Each Portfolio may enter into foreign currency exchange contracts. The Portfolios enter into foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. The contract amount of foreign currency exchange contracts outstanding was $4.4 million as of April 30, 2010. The monthly average contract amount for these contracts was $2.8 million for the period ended April 30, 2010. |
|
|
| Futures Contracts: |
|
|
| Each Portfolio may invest in futures contracts. The Portfolios use futures contracts for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,’’ are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. A Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolios and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Portfolios did not hold any futures contracts. |
|
|
| Summary of Derivative Instruments: |
|
|
| The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of April 30, 2010: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Derivatives |
| Liability Derivatives |
| ||||||
|
|
|
| ||||||||
Primary Risk Exposure |
| Statements of Assets |
| Total Fair |
| Statements of Assets |
| Total Fair |
| ||
|
|
|
|
| |||||||
Foreign Currency Exchange Contracts |
| Unrealized appreciation on foreign currency exchange contracts |
|
| $43,997 |
| Unrealized depreciation on foreign currency exchange contracts |
|
| $— |
|
|
|
|
| ||
* | Total Fair Value is presented by Primary Risk Exposure. For foreign currency exchange contracts, such amounts represent the unrealized gain/appreciation (for asset derivatives) or loss/depreciation (for liability derivatives). |
|
|
| The derivative instruments had the following impact on the Statements of Operations for the International Equity Portfolio for the period ended April 30, 2010: |
|
|
|
|
|
|
|
|
|
|
Primary Risk Exposure |
| Location of |
| Realized |
| Change in Unrealized |
| ||
|
|
|
| ||||||
Foreign Currency Exchange Contracts |
| Net realized gains (losses) from investments and foreign currency transactions/change in unrealized appreciation/ depreciation from investments and foreign currencies |
|
| $(22,708) |
|
| $49,058 |
|
|
|
HSBC INVESTOR PORTFOLIOS | 57 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
3. | Investment Valuation Summary: |
|
|
|
|
| The valuation techniques employed by the Portfolios, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Portfolios’ investments are summarized in the three broad levels listed below: | ||
|
|
|
|
|
| • | Level 1: quoted prices in active markets for identical assets |
|
|
|
|
|
| • | Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.) |
|
|
|
|
|
| • | Level 3: significant unobservable inputs (including a Portfolio’s own assumptions in determining the fair value of investments) |
|
|
|
|
| The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. | ||
|
| ||
| The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Portfolios’ investments based upon three levels defined above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Growth Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (a) |
| $ | 89,513,624 |
| $ | — |
| $ | — |
| $ | 89,513,624 |
|
Investment Companies |
|
| 2,770,934 |
|
| — |
|
| — |
|
| 2,770,934 |
|
|
|
|
|
|
| ||||||||
Total Investments |
| $ | 92,284,558 |
| $ | — |
| $ | — |
| $ | 92,284,558 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks: (+) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
| $ | 1,035,579 |
| $ | — |
| $ | — |
| $ | 1,035,579 |
|
Canada |
|
| 8,618,926 |
|
| — |
|
| — |
|
| 8,618,926 |
|
South Korea |
|
| 1,746,015 |
|
| 2,393,422 |
|
| — |
|
| 4,139,437 |
|
Spain |
|
| 4,137,960 |
|
| 2,414,892 |
|
| — |
|
| 6,552,852 |
|
United Kingdom |
|
| 3,251,424 |
|
| 39,758,624 |
|
| — |
|
| 43,010,048 |
|
All other Common Stocks (a)(b) |
|
| — |
|
| 138,111,505 |
|
| — |
|
| 138,111,505 |
|
Investment Companies |
|
| 2,025,228 |
|
| — |
|
| — |
|
| 2,025,228 |
|
|
|
|
|
|
| ||||||||
Total Investment Securities |
|
| 20,815,132 |
|
| 182,678,443 |
|
| — |
|
| 203,493,575 |
|
|
|
|
|
|
| ||||||||
Other Financial Instruments* |
|
| — |
|
| 43,997 |
|
| — |
|
| 43,997 |
|
|
|
|
|
|
| ||||||||
Total Investments |
| $ | 20,815,132 |
| $ | 182,722,440 |
| $ | — |
| $ | 203,537,572 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opportunity Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (a) |
| $ | 135,365,785 |
| $ | — |
| $ | — |
| $ | 135,365,785 |
|
Investment Companies |
|
| 3,832,877 |
|
| — |
|
| — |
|
| 3,832,877 |
|
|
|
|
|
|
| ||||||||
Total Investments |
| $ | 139,198,662 |
| $ | — |
| $ | — |
| $ | 139,198,662 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (a) |
| $ | 48,788,166 |
| $ | — |
| $ | — |
| $ | 48,788,166 |
|
Investment Companies |
|
| 1,485,961 |
|
| — |
|
| — |
|
| 1,485,961 |
|
|
|
|
|
|
| ||||||||
Total Investments |
| $ | 50,274,127 |
| $ | — |
| $ | — |
| $ | 50,274,127 |
|
|
|
|
|
|
|
|
|
|
| ||
* | Other financial instruments would include any derivative instruments, such as any currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. | |
|
| |
(a) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. | |
|
| |
(b) | For detailed country descriptions, see the accompanying Schedules of Portfolio Investments. | |
|
| |
(+) | Based on the domicile of the security issuer. |
|
|
58 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
4. | Related Party Transactions and Other Agreements: |
|
|
| Investment Management: |
|
|
| HSBC Global Asset Management (USA) Inc. (“HSBC’’ or the “Investment Adviser’’), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Winslow Capital Management, Inc., AllianceBernstein L.P., Westfield Capital Management Company, L.P. and NWQ Investment Management Company, LLC serve as Investment Sub-Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios. |
|
|
| For their services, the Investment Adviser and Winslow Capital Management, Inc. (“Winslow”) receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
Based on Average Daily Net Assets of all Sub-Adviser serviced funds and separate accounts affiliated with HSBC: |
| Fee Rate* | |
| |||
Up to $250 million |
| 0.575 | % |
In excess of $250 million but not exceeding $500 million |
| 0.525 | % |
In excess of $500 million but not exceeding $750 million |
| 0.475 | % |
In excess of $750 million but not exceeding $1 billion |
| 0.425 | % |
In excess of $1 billion |
| 0.375 | % |
|
|
|
|
|
| ||
| * | The Growth Portfolio may pay the Investment Adviser and Winslow an aggregate maximum fee of up to 0.68%. Currently, the Investment Adviser’s contractual fee is 0.175% and Winslow’s maximum contractual fee is 0.40%. Accordingly, the current aggregate maximum fee rate is 0.575%. |
|
|
| For their services, the Investment Adviser and AllianceBernstein L.P. receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
Based on Average Daily Net Assets of: |
| Fee Rate | |
| |||
Up to $10 million |
| 1.015 | % |
In excess of $10 million but not exceeding $25 million |
| 0.925 | % |
In excess of $25 million but not exceeding $50 million |
| 0.79 | % |
In excess of $50 million but not exceeding $100 million |
| 0.70 | % |
In excess of $100 million |
| 0.61 | % |
|
|
| For their services, the Investment Adviser and Westfield Capital Management Company, L.P. receive in aggregate, a fee, accrued daily and paid monthly, at an annual rate of 0.80% of the Opportunity Portfolio’s average daily net assets. |
|
|
| For their services, the Investment Adviser and NWQ Investment Management Company, LLC receive in aggregate, from the Value Portfolio, a fee, accrued daily and paid monthly, at an annual rate of: |
|
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate | |
| |||
Up to $500 million |
| 0.525 | % |
In excess of $500 million but not exceeding $1 billion |
| 0.475 | % |
In excess of $1 billion |
| 0.425 | % |
|
|
| Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time. |
|
|
| Administration: |
|
|
| HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly at annual rate of: |
|
|
|
|
Based on Average Daily Net Assets of |
| Fee Rate | |
| |||
Up to $10 billion |
| 0.0550 | % |
In excess of $10 billion but not exceeding $20 billion |
| 0.0350 | % |
In excess of $20 billion but not exceeding $50 billion |
| 0.0275 | % |
In excess of $50 billion |
| 0.0250 | % |
|
|
HSBC INVESTOR PORTFOLIOS | 59 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
| The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and HSBC Investor Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by the HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios a master-feeder structure. |
|
|
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio’’), a wholly-owned subsidiary of Citigroup, Inc., serves as the Portfolio Trust’s Sub-Administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points), which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Portfolio Trust and the other HSBC Investor Funds (the “Trusts”) and Citi Ohio (the “CCO Agreement’’), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $134,557 for the period ended April 30, 2010, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.’’ Citi Ohio pays the salary and other compensation earned by individuals as employees of Citi Ohio. |
|
|
| Fund Accounting and Trustees: |
|
|
| Citi Ohio provides fund accounting services for the Portfolio Trust. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses that is accrued daily and paid monthly. |
|
|
| Each non-interested Trustee is compensated with a $60,000 annual Board retainer for services as a Trustee of the HSBC Investor Family of Funds (or the “Trusts”), as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. |
|
|
5. | Investment Transactions: |
|
|
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Name |
|
|
| Purchases |
|
|
| Sales |
|
| ||
|
|
|
|
|
|
|
| |||||
Growth Portfolio |
|
| $ | 37,816,332 |
|
|
| $ | 45,869,435 |
|
| |
International Equity Portfolio |
|
|
| 72,692,064 |
|
|
|
| 87,789,444 |
|
| |
Opportunity Portfolio |
|
|
| 34,452,098 |
|
|
|
| 52,088,364 |
|
| |
Value Portfolio |
|
|
| 7,090,251 |
|
|
|
| 12,990,458 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
For the period ended April 30, 2010, there were no long-term U.S. Government securities held by the Portfolio Trust. |
|
|
60 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued) |
|
|
6. | Federal Income Tax Information: |
|
|
| At April 30, 2010, the cost basis of securities for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
|
| Tax Cost($) |
|
| Tax Unrealized |
|
| Tax Unrealized |
|
| Net Unrealized |
|
|
|
|
|
|
|
|
|
| |||||
Growth Portfolio |
| 75,227,448 |
|
| 18,506,843 |
|
| (1,449,733 | ) |
| 17,057,110 |
| |
International Equity Portfolio |
| 210,390,549 |
|
| 16,398,271 |
|
| (23,295,245 | ) |
| (6,896,974 | ) | |
Opportunity Portfolio |
| 119,573,400 |
|
| 30,466,172 |
|
| (10,840,910 | ) |
| 19,625,262 |
| |
Value Portfolio |
| 47,766,607 |
|
| 7,769,399 |
|
| (5,261,879 | ) |
| 2,507,520 |
|
|
|
* | The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales. |
|
|
7. | Legal and Regulatory Matters: |
|
|
| On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Portfolios. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Portfolios will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Portfolio will be disclosed in the Financial Highlights after the date of payment. |
|
|
HSBC INVESTOR PORTFOLIOS | 61 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
| Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis. |
|
|
| The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”). |
|
|
| Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| �� On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds. |
|
|
| The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate. |
|
|
| The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others: |
|
|
|
|
| Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the |
|
|
|
62 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
|
|
| Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also took note of the long-term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year. |
|
|
|
|
| With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts. |
|
|
|
|
| The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year. |
|
|
|
|
| The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers. |
|
|
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund. |
|
|
|
|
| Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds. |
|
|
|
|
| The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts. |
|
|
|
|
| With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds. |
|
|
|
|
| The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers. |
|
|
|
|
| The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above. |
|
|
HSBC INVESTOR PORTFOLIOS | 63 |
|
HSBC INVESTOR PORTFOLIOS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
|
|
| Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services. |
|
|
|
| Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement. |
|
|
64 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Table of Shareholder Expenses (unaudited)—as of April 30, 2010 |
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| As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Portfolio expenses. |
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| 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. |
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| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 through April 30, 2010. |
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Actual Example | |
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| 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 |
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| Annualized |
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Growth Portfolio |
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| $ | 1,000.00 |
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| $ | 1,151.10 |
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| $ | 3.57 |
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| 0.67% |
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International Equity Portfolio |
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| 1,000.00 |
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| 1,016.20 |
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| 4.30 |
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| 0.86% |
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Opportunity Portfolio |
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| 1,000.00 |
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| 1,243.50 |
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| 4.90 |
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| 0.88% |
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Value Portfolio |
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| 1,000.00 |
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| 1,139.60 |
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| 3.50 |
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| 0.66% |
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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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Hypothetical Example for Comparison Purposes | |
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| The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
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| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), on purchases and redemptions of shares (if applicable). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
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| Ending |
| Expenses Paid |
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Growth Portfolio |
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| $ | 1,000.00 |
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| $ | 1,021.47 |
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| $ | 3.36 |
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| 0.67% |
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International Equity Portfolio |
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| 1,000.00 |
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| 1,020.53 |
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| 4.31 |
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| 0.86% |
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Opportunity Portfolio |
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| 1,000.00 |
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| 1,020.43 |
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| 4.41 |
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| 0.88% |
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Value Portfolio |
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| 1,000.00 |
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| 1,021.52 |
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| 3.31 |
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| 0.66% |
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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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HSBC INVESTOR PORTFOLIOS | 65 |
Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders; (ii) on the HSBC Investor Family of Funds’ web-site at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.
(i) The Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Portfolios’ Form N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the HSBC Investor Family of Funds’ website at www.investorfunds.us.hsbc.com.
An investment in a Portfolio is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
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66 | HSBC INVESTOR PORTFOLIOS |
(This Page Intentionally Left Blank)
(This Page Intentionally Left Blank)
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HSBC INVESTOR FAMILY OF FUNDS: |
| SHAREHOLDER SERVICING AGENTS |
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| For HSBC Bank USA, N.A. and |
INVESTMENT ADVISER AND ADMINISTRATOR |
| HSBC Securities (USA) Inc. Clients |
HSBC Global Asset Management (USA) Inc. |
| HSBC Bank USA, N.A. |
452 Fifth Avenue |
| 452 Fifth Avenue |
New York, NY 10018 |
| New York, NY 10018 |
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| 1-888-525-5757 |
SUB-ADVISERS |
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HSBC Investor Growth Portfolio |
| For All Other Shareholders |
Winslow Capital Management, Inc. |
| HSBC Investor Funds |
4720 IDS Tower |
| P.O. Box 182845 |
80th South Eighth Street |
| Columbus, OH 43218-2845 |
Minneapolis, MN 55402 |
| 1-800-782-8183 |
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HSBC Investor International Equity Portfolio |
| TRANSFER AGENT |
AllianceBernstein L.P. |
| Citi Fund Services |
1345 Avenue of the Americas, 39th Floor |
| 3435 Stelzer Road |
New York, NY 10105 |
| Columbus, OH 43219 |
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HSBC Investor Opportunity Portfolio |
| DISTRIBUTOR |
Westfield Capital Management Company, L.P. |
| Foreside Distribution Services, L.P. |
One Financial Center |
| 690 Taylor Road, Suite 150 |
Boston, MA 02111 |
| Gahanna, OH 43230-3202 |
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HSBC Investor Value Portfolio |
| CUSTODIAN |
NWQ Investment Management Company,LLC |
| The Northern Trust Company |
2049 Century Park East, 16th Floor |
| 50 South LaSalle Street |
Los Angeles, CA 90067 |
| Chicago, IL 60603 |
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| INDEPENDENT REGISTERED PUBLIC |
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| ACCOUNTING FIRM |
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| KPMG LLP |
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| 191 West Nationwide Blvd., Suite 500 |
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| Columbus, OH 43215 |
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| LEGAL COUNSEL |
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| Dechert LLP |
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| 1775 I Street, N.W. |
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| 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-WS | 6/10 |
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 23, 2010 |
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 23, 2010 |
By (Signature and Title)* | /s/ Ty Edwards | |
Ty Edwards | ||
Treasurer |
Date | June 23, 2010 | |
* Print the name and title of each signing officer under his or her signature. |