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, 2011
Item 1. Reports to Stockholders.
HSBC Global Asset Management (USA) Inc.
April 30, 2011
HSBC World Selection Funds
Semi-Annual report
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| Class A |
| Class B |
| Class C |
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Aggressive Strategy Fund |
| HAAGX |
| HBAGX |
| HCAGX |
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Balanced Strategy Fund |
| HAGRX |
| HSBGX |
| HCGRX |
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Moderate Strategy Fund |
| HSAMX |
| HSBMX |
| HSCMX |
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Conservative Strategy Fund |
| HACGX |
| HBCGX |
| HCCGX |
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Table of Contents |
HSBC World Selection Funds
Semi-Annual Report - April 30, 2011
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HSBC Investor Portfolios |
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Barclays Capital U.S. Aggregate Bond Index is an unmanaged broad-based benchmark that measures the investment-grade, USD-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities. Mortgage-Backed Securities (agency fixed-rate and hybrid Adjustable-Rate Mortgage passthroughs), Asset-Backed Securities, and Commercial Mortgage-Backed Securities.
Barclays Capital U.S. Corporate Bond Index is an unmanaged index that includes publicly issued U.S. corporate and specified foreign debentures and secured notes, which meet the specified maturity, liquidity, and quality requirements and to qualify, bonds must be SEC-registered.
Barclays Capital U.S. High-Yield Corporate 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.
Citigroup U.S. Domestic 3-Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.
Gross Domestic Product (“GDP”) measures the market value of the goods and services produced by labor and property in the United States.
Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high-yield market.
Morgan Stanley Capital International Europe Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index consists of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Russell Midcap® Index is an unmanaged index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap® Index is a subset of the Russell 1000® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap® Index represents approximately 27% of the total market capitalization of the Russell 1000 companies.
Russell 1000® Growth Index is an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index is an unmanaged index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.
Russell 2000® Index is an unmanaged index that 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 8% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2500™ Growth Index is an unmanaged index that measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.
Standard & Poor’s 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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June 21, 2011
To Our Shareholders:
During the six months through April 30, 2011, the HSBC Investor Funds performed quite well, and for this we thank our managers and the Multi-manager team that monitors their results. The HSBC Investor Growth Fund and HSBC Investor Opportunity Fund significantly outperformed their benchmarks during the period. The Growth Fund (Class I Shares) returned 19.29% versus 16.96% for the Russell 1000® Growth Index1. The Opportunity Fund (Class I Shares) returned 30.43% versus 27.08% for the Russell 2500TM Growth Index1. Although they underperformed their respective benchmarks, the HSBC Investor International Equity Fund (Class I Shares) and the HSBC Investor Value Fund (Class I Shares) both provided respectable returns. The International Equity Fund returned 12.17% versus 12.95% for the MSCI EAFE Index1 and the Value Fund returned 16.65% versus 17.29% for the Russell 1000® Value Index1. The World Selection Funds (Class A Shares, without sales charge) also produced positive returns during the period: Aggressive Strategy returned 14.61%, Balanced Strategy returned 12.31%, Moderate Strategy returned 9.43% and Conservative Strategy returned 6.27%. These funds were beneficiaries of positive returns across a wide spectrum of asset classes.
Though clearly the board’s focus is on risk-adjusted performance, we also monitor asset trends. Here, to no one’s surprise, assets in our money market funds continue to decline. Today’s low rates remain the culprit, obliging the advisor and service providers to continue to waive fees. Such fee waivers amounted to $8.6 million for the six months ended April 30, and $22.4 million for the fiscal year ended October 31, 2010— tangible evidence of their commitment to maintaining a competitive return.
We are delighted to note that our other funds are seeing positive growth. Assets in the HSBC World Selection Funds increased during the period due to investment performance and shareholder subscriptions. The Investor Equity Funds also increased their assets during period, benefitting from strong performance in the global equity markets.
We are pleased that the advisor is taking steps to broaden the Funds’ product offerings, especially in those areas where HSBC enjoys competitively distinguishing experience and skill. The advisor launched two emerging market fixed income funds on April 7: the HSBC Emerging Markets Debt Fund and the HSBC Emerging Markets Local Debt Fund. Such funds are rising in popularity as investors seek the diversity and higher yields of foreign markets and currencies. We have included additional information on the advisor’s capabilities in emerging markets, and we look forward to working with the advisor to expand our emerging markets offerings within the fund family.
Among the issues troubling investors today are how the end of “QEII”—the U.S. Federal Reserve’s second round of quantitative easing measures—may affect markets this summer and prospects for inflation in the near term. The only positive thing one might say of inflation is that it enables politicians some surcease from the price of their follies, enabling them to pay old debt with new, less valuable money. Everything else is pernicious: inflation erodes savings, discourages investment, introduces price distortions, leads to tax bracket creep, increases labor strife and inevitably leads to an economic contraction when central bankers—usually late in the game—ratchet rates up.
The challenge for investors facing such concerns is to be proactive in their asset allocation, something with which our advisor assists investors all over the world. Our shareholders can learn more about these capabilities by visiting an HSBC Financial Advisor or by visiting the Funds’ website at http://investorfunds.us.hsbc.com. Investors can learn more about the Funds, including the World Selection Funds, which provide simple and efficient asset allocation within a single mutual fund investment.
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4 | HSBC INVESTOR FAMILY OF FUNDS |
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Chairman’s Message (continued) |
As a fund complex dominated (though to a declining extent) by money market fund offerings, we are following closely the U.S. President’s Working Group on Financial Markets and the Security & Exchange Commission’s effort to implement new reforms that will enhance the stability of the money market fund industry and seek to prevent crises like the one that occurred in September 2008, when the net asset value of the Reserve Primary Fund–a large money market fund–fell below $1 a share. One of the more interesting proposed reforms has come from HSBC. That proposal can be found on the SEC’s website, http://www.sec.gov/comments/4-619/4-619.shtml. We will continue to monitor all industry reform proposals put forth towards providing the best money market fund structures and products to meet the needs of our shareholders.
Cordially,
![-s- Michael Seely](https://capedge.com/proxy/N-CSRS/0000930413-11-004670/c65803002_v1.jpg)
Michael Seely
Chairman, HSBC Investor Funds
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1 | For additional information, please refer to the Glossary of Terms. |
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Emerging markets fixed income is a key investment strategy for HSBC Global Asset Management. Considered to be one of the largest emerging markets investment managers in the world, HSBC Global Asset Management currently manages US$145 billion, as at December 31, 2010, in emerging market assets globally. |
Emerging markets debt has grown into an important asset class over the last decade as legal, regulatory and economic climates within many emerging markets countries have improved.
Since 1990, the emerging markets debt investment universe has grown significantly to reach over US$11 trillion as at end of December 2010. Thanks to strong economic fundamentals and improving debt dynamics, emerging market countries have experienced credit upgrades for both corporate and government issuers. Today, more than half of the emerging market universe is investment grade, and emerging market bonds have substantially outperformed developed market bonds over the last 15 years.
Key factors influencing this growth include:
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• | High economic growth rates |
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• | Improving fundamentals through sound fiscal policies and responsible monetary policy |
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• | Strong demand for raw materials, goods and services |
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• | Positive long-term outlook |
The diversity among economies in more than 50 emerging market countries provides investors with a variety of risk/reward opportunities. Emerging Markets Debt can have a legitimate place in any portfolio as a strategic investment. As part of a broader portfolio, Emerging markets debt has the potential to enhance returns and provide diversification for investors. As these emerging market economies expand, governments and corporations alike look to local and international markets to finance growth.
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HSBC INVESTOR FAMILY OF FUNDS | 5 |
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Dear Shareholder,
Welcome to the HSBC Investor Funds semi-annual report, covering the period between November 1, 2010 and April 30, 2011. 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 comments on recent market developments. As always, the report includes the financial statements covering the first half of the fiscal year for each of the Funds. The report also includes 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 for comparative purposes.
Short-term interest rates continue to hover around record low levels. In response, HSBC has continued to waive a portion of its advisory and shareholder servicing fees from the various money market funds in order to maintain a positive yield for the Funds’ shareholders.
Our Multimanager team continues to review and monitor the subadvisers that manage the Equity Funds’ capabilities and during the fiscal period recommended to the Funds’ Board a change in the subadviser for the International Equity Portfolio. As a result, Lord, Abbett & Co. became the subadviser for that Portfolio effective at the close of business on January 12. The team also reviews and monitors the third party funds in which the World Selection Funds invest.
On April 7 of this year, we launched two emerging market fixed income funds, HSBC Emerging Markets Debt Fund and HSBC Emerging Markets Local Debt Fund. A description of our emerging markets capabilities is also included as part of this report; we hope you find it to be of interest. We believe that adding the emerging markets asset class to the HSBC fund family will provide shareholders with a broad range of investment options that capitalize on one of HSBC’s strengths — investing in emerging markets.
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/0000930413-11-004670/c65803003_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 global economy continued its recovery during the six-month period between November 1, 2010 and April 30, 2011. Moderate economic growth coincided with continued strength in emerging economies and better-than-expected corporate earnings. The economic recovery continued to benefit from the Federal Reserve Board’s decision to keep the federal funds rate—a key factor in lending rates—at a historically low target range between 0.00% and 0.25%.
The period began with renewed concerns about the risk of a sovereign debt default. Eurozone monetary stability appeared especially threatened by the sovereign debt crisis in Ireland and the possibility that the crisis would spread to weak peripheral economies, particularly Portugal and Spain. This threat was alleviated to some extent later in the period due to the approval of an economic rescue package for Ireland and successful debt auctions in Italy, Portugal and Spain.
Growth remained robust in many emerging economies, but inflationary pressures increased. Many governments tightened monetary policy in order to counter rising prices of food and other commodities. Oil prices rose sharply in the first quarter, a development that dampened economic growth during the last two months of the period.
The U.S. Gross Domestic Product (“GDP”)1 grew at 3.1% during the fourth quarter of 2010—a slowdown from the previous quarter but still ahead of expectations. GDP during the first quarter of 2011 experienced growth at 1.8%. U.S. consumer confidence returned to pre-recession levels, though it dipped somewhat toward the end of the period. Job creation picked up during the period, but unemployment remained a significant drag on the economic recovery. Home sales in the U. S. rose, but home prices remained low and foreclosure and delinquency rates hit record levels. Meanwhile, reports showed that manufacturing activity was robust, the services sector expanded and consumer confidence trended upward.
Market Review
Markets performed poorly throughout November due to a number of factors, including eurozone monetary instability, speculation about potential interest rate hikes, and geopolitical tensions involving North Korea. By the end of 2010, however, investors were reassured by economic rescue packages for several eurozone economies and improving U.S. economic data, sending stocks significantly higher.
Equities continued to perform strongly during the first two months of 2011 as a number of signs emerged that the U.S. economy was on surer footing. Data showed increasing consumer confidence, robust manufacturing, soaring home sales and substantial corporate earnings.
Numerous factors undermined investor confidence late in the period, including inflation in emerging economies and persistently high unemployment in the U.S. During the second half of the period, several dramatic and historic events threatened the stability of global markets. Unrest in the Middle East, most notably in Egypt and Libya, weighed on investor confidence. Then the earthquake and tsunami in Japan triggered a sharp dive in equities in mid-March. Rising oil and commodity prices also weighed on investor confidence and contributed to lagging returns during the last two months of the period.
Investors favored higher-risk areas of the equity market, helping emerging markets and small-cap stocks produce strong gains during the six months through April 2011. The Russell 2000® Index1 of small-company stocks returned 23.73% and the MSCI EAFE Index1 returned 12.95%.
Stocks in developed economies, with the notable exception of Japan, posted moderate gains during the period. European markets rose as governments coordinated a response to sovereign debt problems and economic activity increased. In the U.S., the energy and industrials sectors performed strongly due in part to rising commodity prices. The S&P 500 Index1 of large-company stocks returned 16.36% for the six months through April 30, 2011.
Among fixed-income securities, corporate bonds—particularly high-yield bonds—exhibited strength throughout the period as investors sought out additional yield in a low interest rate environment. The Barclays Capital U.S. Aggregate Bond Index1, which tracks the broad investment-grade fixed-income market, returned 0.02% for the six months through April 30, 2011, while the Barclays Capital U.S. High-Yield Corporate Bond Index1 returned 7.23%.
The pursuit of yield led to low demand for government bonds. U.S. Treasury yields ticked upward throughout much of the period, though they remained low by historical standards. Treasuries faced increasing pressure from both the growing U.S. debt burden and concerns about a demand shortfall after the current quantitative easing program ends.
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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 risk 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 (“Funds”) (without sales charge), generated the following total returns for the six-month period between November 1, 2010 and April 30, 2011:
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Aggressive Strategy Fund: 14.61% |
Balanced Strategy Fund: 12.31% |
Moderate Strategy Fund: 9.43% |
Conservative Strategy Fund: 6.27% |
The Funds’ benchmark/reference indices posted the following performance during the same period:
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S&P 500 Index1: 16.36% |
MSCI EAFE Index1: 12.95% |
Barclays Capital U.S. Aggregate Bond Index1: 0.02% |
Citigroup U.S. Domestic 3-Month T-Bill Index1: 0.07% |
The World Selection Funds aim to provide superior risk-adjusted returns for each Fund. The Funds’ broadly diversified investment approach across various asset classes and investment styles strongly contributes to achieving this objective.
Each World Selection Fund has a strategic asset allocation which represents a carefully constructed blend of asset classes, regions and currencies to meet the longer term investment goals. The Adviser shorter term views are reflected in tactical adjustments to the longer term allocations.
During the reporting period, several tactical changes were implemented in the Funds.
The period started with a modest underweight in equities, a preference for corporate bonds within fixed income and broadly neutral positions in alternative investments. Within developed market equities, there was a preference for defensive sectors.
At the broad asset class level, the exposure to equities was increased to a neutral position in November 2010 and to a moderately overweight position in January 2011. Those changes reflected the improved backdrop for riskier asset classes.
Within developed market equities, the overweight position in defensive sectors was brought back to neutral in December.
In the fixed income portion of the fund, the allocation to U.S. high yield bonds was further increased during the second half of 2010, mainly at the expense of U.S. government bonds and investment-grade corporate bonds as valuations for these bonds are considered less attractive.
All HSBC World Selection Funds performed strongly during the first two months of the period, mainly driven by the returns provided by riskier asset classes such as equities. Furthermore, within the fixed income segment of the fund, the increased allocation to high yield bonds made substantial contributions to the overall performance as the high-yield segment outperformed all other fixed income areas during the period.
The first quarter of 2011 was volatile with notable event risk. The World Selection Funds’ diversified investment approach helped smooth returns for investors during this challenging period and all Funds posted positive total returns over the quarter.
The Funds investment approach also includes various alternative asset classes. Some of these asset classes—for example, private equity and commodities—were among the best performing asset classes of 2010. The World Selection Funds benefited from those strong returns.
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1 | For additional information, please refer to the Glossary of Terms. |
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The Portfolio composition for the HSBC World Selection Funds is subject to change. | |
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8 | HSBC INVESTOR FAMILY OF FUNDS |
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Portfolio Reviews (Unaudited) |
Aggressive Strategy Fund |
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Fund Performance |
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| Average Annual |
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As of April 30, 2011 | Inception |
| Six |
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| Gross |
| Net |
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Aggressive Strategy Fund Class A1 | 2/14/05 |
| 8.91 |
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| 13.20 |
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| 2.42 |
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| 5.60 |
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| 2.34 |
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| 1.84 |
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Aggressive Strategy Fund Class B2 | 2/9/05 |
| 10.16 |
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| 14.36 |
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| 2.69 |
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| 5.74 |
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| 3.09 |
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| 2.59 |
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Aggressive Strategy Fund Class C3 | 6/9/05 |
| 13.26 |
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| 17.36 |
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| 2.74 |
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| 6.04 |
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| 3.09 |
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| 2.59 |
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S&P 500 Index5 | — |
| 16.36 |
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| 17.22 |
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| 2.95 |
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| 4.31 | 6 |
| N/A |
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| N/A |
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MSCI EAFE Index5 | — |
| 12.95 |
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| 19.70 |
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| 2.02 |
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| 6.38 | 6 |
| N/A |
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| N/A |
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Barclays Capital U.S. Aggregate Bond Index5 | — |
| 0.02 |
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| 5.36 |
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| 6.33 |
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| 5.10 | 6 |
| N/A |
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| N/A |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 | — |
| 0.07 |
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| 0.15 |
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| 2.02 |
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| 2.31 | 6 |
| N/A |
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| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. 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 for the Fund from March 1, 2011 through March 1, 2012.
During the years ended October 31, 2008, 2009 and 2010 and the period ended April 30, 2011, certain Underlying Funds received a one-time payment in respect of a class action settlement which had the result of increasing their total returns. By virtue of the Fund’s investments in these Underlying Funds, the total returns for the years ended October 31, 2008, 2009 and 2010 and period ended April 30, 2011 were higher than they would have been had these Underlying Funds not received the payments.
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* | Aggregate total return. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
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3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
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4 | Reflects the expense ratio as reported in the prospectus dated March 1, 2011. The Adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to an annual rate of 1.50%, 2.25%, and 2.25% for Class A Shares, Class B Shares and Class C Shares, respectively. The expense limitation shall be in effect until March 1, 2012. Additional information pertaining to the April 30, 2011 expense ratios can be found in the financial highlights. |
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5 | For additional information, please refer to the Glossary of Terms. |
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6 | Return for the period February 9, 2005 to April 30, 2011. |
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HSBC INVESTOR FAMILY OF FUNDS | 9 |
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Portfolio Reviews (Unaudited) |
Balanced Strategy Fund |
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Fund Performance |
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| Average Annual |
| Expense |
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As of April 30, 2011 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
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Balanced Strategy Fund Class A1 |
| 2/8/05 |
| 6.66 |
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| 12.40 |
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| 3.05 |
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| 5.77 |
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| 1.72 |
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| 1.72 |
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Balanced Strategy Fund Class B2 |
| 2/1/05 |
| 7.84 |
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| 13.40 |
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| 3.33 |
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| 6.05 |
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| 2.47 |
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| 2.47 |
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Balanced Strategy Fund Class C3 |
| 4/27/05 |
| 10.84 |
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| 16.38 |
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| 3.34 |
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| 6.34 |
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| 2.47 |
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| 2.47 |
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S&P 500 Index5 |
| — |
| 16.36 |
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| 17.22 |
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| 2.95 |
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| 4.35 | 6 |
| N/A |
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| N/A |
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MSCI EAFE Index5 |
| — |
| 12.95 |
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| 19.70 |
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| 2.02 |
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| 6.36 | 6 |
| N/A |
| �� | N/A |
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Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 0.02 |
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| 5.36 |
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| 6.33 |
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| 5.20 | 6 |
| N/A |
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| N/A |
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Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.07 |
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| 0.15 |
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| 2.02 |
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| 2.30 | 6 |
| N/A |
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| N/A |
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Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. 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 years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011, certain Underlying Funds received a onetime payment in respect of a class action settlement which had the result of increasing their total returns. By virtue of the Fund’s investments in these Underlying Funds, the total returns for the years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011 were higher than they would have been had these Underlying Funds not received the payments.
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* | Aggregate total return. |
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1 | Reflects the maximum sales charge of 5.00%. |
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2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
|
|
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
|
|
4 | Reflects the expense ratio as reported in the prospectus dated March 1, 2011. |
|
|
5 | For additional information, please refer to the Glossary of Terms. |
|
|
6 | Return for the period February 1, 2005 to April 30, 2011. |
|
|
10 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews (Unaudited) |
Moderate Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Performance |
|
|
|
|
| Average Annual |
| Expense |
| |||||||||||||
As of April 30, 2011 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
| |||||||
Moderate Strategy Fund Class A1 |
| 2/3/05 |
| 3.99 |
|
| 10.12 |
|
| 3.37 |
|
| 5.12 |
|
| 1.66 |
|
| 1.66 |
|
| |
Moderate Strategy Fund Class B2 |
| 2/1/05 |
| 5.05 |
|
| 11.03 |
|
| 3.64 |
|
| 5.32 |
|
| 2.41 |
|
| 2.41 |
|
| |
Moderate Strategy Fund Class C3 |
| 6/9/05 |
| 8.05 |
|
| 14.04 |
|
| 3.63 |
|
| 5.24 |
|
| 2.41 |
|
| 2.41 |
|
| |
S&P 500 Index5 |
| — |
| 16.36 |
|
| 17.22 |
|
| 2.95 |
|
| 4.35 | 6 |
| N/A |
|
| N/A |
|
| |
MSCI EAFE Index5 |
| — |
| 12.95 |
|
| 19.70 |
|
| 2.02 |
|
| 6.36 | 6 |
| N/A |
|
| N/A |
|
| |
Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 0.02 |
|
| 5.36 |
|
| 6.33 |
|
| 5.20 | 6 |
| N/A |
|
| N/A |
|
| |
Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.07 |
|
| 0.15 |
|
| 2.02 |
|
| 2.30 | 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. 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 years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011, certain Underlying Funds received a one-time payment in respect of a class action settlement which had the result of increasing their total returns. By virtue of the Fund’s investments in these Underlying Funds, the total returns for the years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011 were higher than they would have been had these Underlying Funds not received the payments.
|
|
* | Aggregate total return. |
|
|
1 | Reflects the maximum sales charge of 5.00%. |
|
|
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
|
|
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
|
|
4 | Reflects the expense ratio as reported in the prospectus dated March 1, 2011. |
|
|
5 | For additional information, please refer to Glossary of Terms. |
|
|
6 | Return for the period February 1, 2005 to April 30, 2011. |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 11 |
|
Portfolio Reviews (Unaudited) |
Conservative Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund Performance |
|
|
|
|
| Average Annual |
| Expense |
| |||||||||||||
As of April 30, 2011 |
| Inception |
| Six |
| 1 |
| 5 |
| Since |
| Gross |
| Net |
| |||||||
Conservative Strategy Fund Class A1 |
| 2/23/05 |
| 0.93 |
|
| 6.83 |
|
| 3.19 |
|
| 4.26 |
|
| 1.93 |
|
| 1.93 |
|
| |
Conservative Strategy Fund Class B2 |
| 2/17/05 |
| 1.98 |
|
| 7.71 |
|
| 3.50 |
|
| 4.31 |
|
| 2.68 |
|
| 2.68 |
|
| |
Conservative Strategy Fund Class C3 |
| 4/19/05 |
| 4.92 |
|
| 10.73 |
|
| 3.61 |
|
| 4.85 |
|
| 2.68 |
|
| 2.68 |
|
| |
S&P 500 Index5 |
| — |
| 16.36 |
|
| 17.22 |
|
| 2.95 |
|
| 4.20 | 6 |
| N/A |
|
| N/A |
|
| |
MSCI EAFE Index5 |
| — |
| 12.95 |
|
| 19.70 |
|
| 2.02 |
|
| 5.97 | 6 |
| N/A |
|
| N/A |
|
| |
Barclays Capital U.S. Aggregate Bond Index5 |
| — |
| 0.02 |
|
| 5.36 |
|
| 6.33 |
|
| 5.23 | 6 |
| N/A |
|
| N/A |
|
| |
Citigroup U.S. Domestic 3-Month Treasury Bill Index5 |
| — |
| 0.07 |
|
| 0.15 |
|
| 2.02 |
|
| 2.31 | 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. 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 years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011, certain Underlying Funds received a onetime payment in respect of a class action settlement which had the result of increasing their total returns. By virtue of the Fund’s investments in these Underlying Funds, the total returns for the years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011 were higher than they would have been had these Underlying Funds not received the payments.
|
|
* | Aggregate total return. |
|
|
1 | Reflects the maximum sales charge of 5.00%. |
|
|
2 | Reflects the applicable contingent deferred sales charge, maximum of 4.00%. |
|
|
3 | Reflects the applicable contingent deferred sales charge, maximum of 1.00%. |
|
|
4 | Reflects the expense ratio as reported in the prospectus dated March 1, 2011. |
|
|
5 | For additional information, please refer to the Glossary of Terms. |
|
|
6 | Return for the period February 17, 2005 to April 30, 2011. |
|
|
12 | HSBC INVESTOR FAMILY OF FUNDS |
|
Portfolio Reviews (Unaudited) |
Portfolio Composition*–As of April 30, 2011 |
HSBC World Selection Funds |
|
|
|
|
|
Aggressive Strategy Fund |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Domestic Equities |
| 59.0 | % |
|
International Equities |
| 24.4 | % |
|
Fixed Income |
| 11.0 | % |
|
Alternatives |
| 5.1 | % |
|
Cash |
| 0.5 | % |
|
|
| 100.0 | % |
|
|
|
|
|
|
Balanced Strategy Fund |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Domestic Equities |
| 44.5 | % |
|
Fixed Income |
| 28.2 | % |
|
International Equities |
| 14.5 | % |
|
Alternatives |
| 12.3 | % |
|
Cash |
| 0.5 | % |
|
|
| 100.0 | % |
|
|
|
|
|
|
Moderate Strategy Fund |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Fixed Income |
| 44.1 | % |
|
Domestic Equities |
| 29.7 | % |
|
Alternatives |
| 13.0 | % |
|
International Equities |
| 12.4 | % |
|
Cash |
| 0.8 | % |
|
|
| 100.0 | % |
|
|
|
|
|
|
Conservative Strategy Fund |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Fixed Income |
| 61.6 | % |
|
Domestic Equities |
| 18.4 | % |
|
Alternatives |
| 11.9 | % |
|
International Equities |
| 7.0 | % |
|
Cash |
| 1.1 | % |
|
|
| 100.0 | % |
|
|
|
|
|
|
HSBC Investor Portfolios |
|
|
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
| |||
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Software |
| 8.8 | % |
|
Computers & Peripherals |
| 8.4 | % |
|
Machinery |
| 6.3 | % |
|
Energy Equipment & Services |
| 5.5 | % |
|
Diversified Financial Services |
| 4.9 | % |
|
Capital Markets |
| 4.8 | % |
|
Internet & Catalog Retail |
| 4.8 | % |
|
Internet Software & Services |
| 4.6 | % |
|
IT Services |
| 4.2 | % |
|
Communications Equipment |
| 3.9 | % |
|
Hotels, Restaurants & Leisure |
| 3.6 | % |
|
Health Care Providers & Services |
| 3.4 | % |
|
Oil, Gas & Consumable Fuels |
| 3.1 | % |
|
Road & Rail |
| 3.0 | % |
|
Aerospace & Defense |
| 3.0 | % |
|
Pharmaceuticals |
| 2.7 | % |
|
Media |
| 2.5 | % |
|
Metals & Mining |
| 2.3 | % |
|
Health Care Equipment & Supplies |
| 2.3 | % |
|
Semiconductors & Semiconductor Equipment |
| 2.2 | % |
|
Investment Company |
| 2.2 | % |
|
Specialty Retail |
| 2.0 | % |
|
Construction & Engineering |
| 1.7 | % |
|
Wireless Telecommunication Services |
| 1.5 | % |
|
Personal Products |
| 1.2 | % |
|
Auto Components |
| 1.1 | % |
|
Air Freight & Logistics |
| 1.1 | % |
|
Health Care Technology |
| 1.1 | % |
|
Food & Staples Retailing |
| 1.0 | % |
|
Automobiles |
| 1.0 | % |
|
Food Products |
| 1.0 | % |
|
Chemicals |
| 0.8 | % |
|
Total |
| 100.0 | % |
|
|
|
|
|
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Europe |
| 60.9 | % |
|
Australia & Far East |
| 13.8 | % |
|
Japan |
| 12.7 | % |
|
Other |
| 6.8 | % |
|
Canada |
| 3.0 | % |
|
Investment Company |
| 1.6 | % |
|
Exchange Traded Fund |
| 1.2 | % |
|
Total |
| 100.0 | % |
|
|
|
* | Portfolio composition is subject to change. |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 13 |
|
Portfolio Reviews (Unaudited) |
Portfolio Composition*–As of April 30, 2011 |
HSBC Investor Portfolios |
|
|
|
|
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| ||||
Investment Allocation |
| Percentage of Investments at Value |
| |
Oil, Gas & Consumable Fuels |
| 10.2 | % |
|
Software |
| 5.7 | % |
|
Machinery |
| 5.3 | % |
|
Commercial Services & Supplies |
| 5.0 | % |
|
Life Sciences Tools & Services |
| 4.9 | % |
|
Semiconductors & Semiconductor Equipment |
| 4.7 | % |
|
Chemicals |
| 4.2 | % |
|
Health Care Equipment & Supplies |
| 3.7 | % |
|
Food Products |
| 3.7 | % |
|
Textiles, Apparel & Luxury Goods |
| 3.6 | % |
|
Electrical Equipment |
| 3.5 | % |
|
IT Services |
| 3.3 | % |
|
Health Care Providers & Services |
| 3.3 | % |
|
Containers & Packaging |
| 3.0 | % |
|
Capital Markets |
| 2.9 | % |
|
Wireless Telecommunication Services |
| 2.7 | % |
|
Auto Components |
| 2.4 | % |
|
Road & Rail |
| 2.1 | % |
|
Communications Equipment |
| 2.0 | % |
|
Biotechnology |
| 2.0 | % |
|
Media |
| 2.0 | % |
|
Electronic Components & Semiconductors |
| 1.9 | % |
|
Metals & Mining |
| 1.9 | % |
|
Aerospace & Defense |
| 1.8 | % |
|
Internet Software & Services |
| 1.7 | % |
|
Diversified Consumer Services |
| 1.7 | % |
|
Hotels, Restaurants & Leisure |
| 1.6 | % |
|
Investment Company |
| 1.6 | % |
|
Trading Companies & Distributors |
| 1.6 | % |
|
Real Estate Investment Trusts (REITs) |
| 1.5 | % |
|
Specialty Retail |
| 1.4 | % |
|
Pharmaceuticals |
| 1.3 | % |
|
Diversified Financial Services |
| 1.2 | % |
|
Commercial Banks |
| 0.6 | % |
|
Total |
| 100.0 | % |
|
|
|
|
|
|
HSBC Investor Value Portfolio |
|
|
|
|
|
|
|
|
|
Investment Allocation |
| Percentage of Investments at Value |
| |
Insurance |
| 17.6 | % |
|
Oil, Gas & Consumable Fuels |
| 14.8 | % |
|
Pharmaceuticals |
| 10.0 | % |
|
Metals & Mining |
| 7.2 | % |
|
Media |
| 7.0 | % |
|
Software |
| 6.8 | % |
|
Communications Equipment |
| 5.2 | % |
|
Diversified Financial Services |
| 4.5 | % |
|
Biotechnology |
| 3.6 | % |
|
Investment Company |
| 3.2 | % |
|
Food & Staples Retailing |
| 2.8 | % |
|
Aerospace & Defense |
| 2.7 | % |
|
Commercial Banks |
| 2.1 | % |
|
Machinery |
| 2.0 | % |
|
Auto Components |
| 1.8 | % |
|
Road & Rail |
| 1.7 | % |
|
Tobacco |
| 1.6 | % |
|
Commercial Services & Supplies |
| 1.5 | % |
|
Capital Markets |
| 1.4 | % |
|
Independent Power Producers & Energy Traders |
| 1.4 | % |
|
Energy Equipment & Services |
| 1.1 | % |
|
Total |
| 100.0 | % |
|
|
|
* | Portfolio composition is subject to change. |
|
|
|
14 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Company—0.3% | |||||||
HSBC Investor Prime Money Market Fund, Class I Shares, 0.11% (a) |
|
| 64,821 |
|
| 64,821 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANY |
|
|
|
|
| 64,821 |
|
|
|
|
|
|
| ||
Affiliated Portfolios—63.7% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 4,550,225 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 2,081,139 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 1,149,974 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 4,587,120 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 12,368,458 |
|
|
|
|
|
|
| ||
Unaffiliated Investment Companies—31.3% |
|
|
|
|
|
|
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 909 |
|
| 20,232 |
|
CRM Small/Mid Cap Value Fund, Institutional Shares |
|
| 69,097 |
|
| 1,137,342 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 62,025 |
|
| 1,063,109 |
|
EII Global Property Fund, Institutional Shares |
|
| 1,884 |
|
| 30,406 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 143,692 |
|
| 1,073,384 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 126,814 |
|
| 1,062,702 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (a) |
|
| 32,901 |
|
| 32,901 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 9,005 |
|
| 91,854 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 111,967 |
|
| 1,576,499 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 6,088,429 |
|
|
|
|
|
|
| ||
Exchange Traded Fund—4.3% |
|
|
|
|
|
|
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 67,709 |
|
| 830,789 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUND |
|
|
|
|
| 830,789 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES—99.6% |
|
|
|
|
| 19,352,497 |
|
|
|
|
|
|
|
|
|
|
| ||
| Percentages indicated are based on net assets of $19,432,630. | |
| ||
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. | |
| ||
ETF — Exchange Traded Fund |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 15 |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Company—0.5% |
|
|
|
|
|
|
|
HSBC Investor Prime Money Market Fund, Class I Shares, 0.11% (a) |
|
| 272,021 |
|
| 272,021 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANY |
|
|
|
|
| 272,021 |
|
|
|
|
|
|
| ||
Affiliated Portfolios—47.0% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 9,832,158 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 3,874,075 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 2,458,960 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 9,862,377 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 26,027,570 |
|
|
|
|
|
|
| ||
Unaffiliated Investment Companies—46.7% |
|
|
|
|
|
|
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 14,717 |
|
| 327,592 |
|
CRM Small/Mid Cap Value Fund, Institutional Shares |
|
| 147,958 |
|
| 2,435,395 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 96,543 |
|
| 1,654,754 |
|
EII Global Property Fund, Institutional Shares |
|
| 31,220 |
|
| 503,888 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 242,597 |
|
| 3,027,569 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 576,209 |
|
| 4,304,269 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 513,517 |
|
| 4,303,276 |
|
Lord Abbett Core Fixed Income Fund, Institutional Shares |
|
| 88,369 |
|
| 964,990 |
|
Metropolitan West Total Return Bond Fund, Institutional Shares |
|
| 92,058 |
|
| 965,695 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 354,906 |
|
| 3,620,042 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 117,873 |
|
| 1,300,038 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 175,877 |
|
| 2,476,352 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 25,883,860 |
|
|
|
|
|
|
| ||
Exchange Traded Funds—5.7% |
|
|
|
|
|
|
|
iShares iBoxx $ Investment Grade Corporate Bond Fund |
|
| 7,184 |
|
| 793,617 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 143,242 |
|
| 1,757,579 |
|
SPDR Gold Trust |
|
| 4,139 |
|
| 630,618 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 3,181,814 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES—99.9% |
|
|
|
|
| 55,365,265 |
|
|
|
|
|
|
|
|
|
|
| ||
| Percentages indicated are based on net assets of $55,428,432. | |
| ||
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. | |
| ||
ETF — Exchange Traded Fund | ||
SPDR — Standard & Poor’s Depositary Receipt |
|
|
|
16 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Company—0.7% |
|
|
|
|
| ||
HSBC Investor Prime Money Market Fund, Class I Shares, 0.11% (a) |
|
| 324,155 |
|
| 324,155 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANY |
|
|
|
|
| 324,155 |
|
|
|
|
|
|
| ||
Affiliated Portfolios—33.6% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 5,896,620 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 3,477,971 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 1,516,976 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 5,904,678 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 16,796,245 |
|
|
|
|
|
|
| ||
Unaffiliated Investment Companies—60.7% |
|
|
|
|
|
|
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 13,063 |
|
| 290,775 |
|
CRM Small/Mid Cap Value Fund, Institutional Shares |
|
| 89,639 |
|
| 1,475,462 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 63,860 |
|
| 1,094,556 |
|
EII Global Property Fund, Institutional Shares |
|
| 23,780 |
|
| 383,809 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 284,217 |
|
| 3,546,980 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 509,022 |
|
| 3,802,380 |
|
Highbridge Statistical Market Neutral Fund, Select Shares |
|
| 22,907 |
|
| 353,455 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 458,774 |
|
| 3,844,527 |
|
Lord Abbett Core Fixed Income Fund, Institutional Shares |
|
| 277,222 |
|
| 3,027,275 |
|
Metropolitan West Total Return Bond Fund, Institutional Shares |
|
| 288,794 |
|
| 3,029,476 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (a) |
|
| 62,336 |
|
| 62,338 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 370,551 |
|
| 3,779,623 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 368,009 |
|
| 4,058,834 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 114,043 |
|
| 1,605,729 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 30,355,219 |
|
|
|
|
|
|
| ||
Exchange Traded Funds—4.7% |
|
|
|
|
|
|
|
iShares iBoxx $Investment Grade Corporate Bond Fund |
|
| 6,348 |
|
| 701,263 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 69,695 |
|
| 855,158 |
|
SPDR Gold Trust |
|
| 5,281 |
|
| 804,613 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 2,361,034 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES—99.7% |
|
|
|
|
| 49,836,653 |
|
|
|
|
|
|
|
|
|
|
| ||
| Percentages indicated are based on net assets of $49,985,166. | |
| ||
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. | |
| ||
ETF — Exchange Traded Fund | ||
SPDR — Standard & Poor’s Depositary Receipt |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 17 |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Affiliated Investment Company—1.0% |
|
|
|
|
| ||
HSBC Investor Prime Money Market Fund, Class I Shares, 0.11% (a) |
|
| 204,978 |
|
| 204,978 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED INVESTMENT COMPANY |
|
|
|
|
| 204,978 |
|
|
|
|
|
|
| ||
Affiliated Portfolios—22.6% |
|
|
|
|
|
|
|
HSBC Investor Growth Portfolio |
|
|
|
|
| 1,476,212 |
|
HSBC Investor International Equity Portfolio |
|
|
|
|
| 1,185,681 |
|
HSBC Investor Opportunity Portfolio |
|
|
|
|
| 375,453 |
|
HSBC Investor Value Portfolio |
|
|
|
|
| 1,466,281 |
|
|
|
|
|
|
| ||
TOTAL AFFILIATED PORTFOLIOS |
|
|
|
|
| 4,503,627 |
|
|
|
|
|
|
| ||
Unaffiliated Investment Companies—73.4% |
|
|
|
|
|
|
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
|
| 1,010 |
|
| 22,493 |
|
CRM Small/Mid Cap Value Fund, Institutional Shares |
|
| 22,351 |
|
| 367,900 |
|
Delaware Emerging Markets Fund, Class I Shares |
|
| 5,000 |
|
| 85,702 |
|
EII Global Property Fund, Institutional Shares |
|
| 2,353 |
|
| 37,970 |
|
Goldman Sachs Emerging Markets Debt Fund, Class I Shares |
|
| 115,302 |
|
| 1,438,952 |
|
Goldman Sachs High Yield Fund, Institutional Shares |
|
| 184,126 |
|
| 1,375,420 |
|
Highbridge Statistical Market Neutral Fund, Select Shares |
|
| 35,815 |
|
| 552,624 |
|
JPMorgan High Yield Fund, Select Shares |
|
| 164,140 |
|
| 1,375,489 |
|
Lord Abbett Core Fixed Income Fund, Institutional Shares |
|
| 214,998 |
|
| 2,347,796 |
|
Metropolitan West Total Return Bond Fund, Institutional Shares |
|
| 223,954 |
|
| 2,349,311 |
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (a) |
|
| 19,379 |
|
| 19,380 |
|
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares |
|
| 137,382 |
|
| 1,401,301 |
|
PIMCO Total Return Fund, Institutional Shares |
|
| 285,276 |
|
| 3,146,359 |
|
Transamerica WMC Emerging Markets Fund, Class I Shares |
|
| 9,381 |
|
| 132,083 |
|
|
|
|
|
|
| ||
TOTAL UNAFFILIATED INVESTMENT COMPANIES |
|
|
|
|
| 14,652,780 |
|
|
|
|
|
|
| ||
Exchange Traded Funds—3.2% |
|
|
|
|
|
|
|
iShares iBoxx $Investment Grade Corporate Bond Fund |
|
| 2,632 |
|
| 290,757 |
|
PowerShares Global Listed Private Equity Portfolio ETF |
|
| 5,168 |
|
| 63,411 |
|
SPDR Gold Trust |
|
| 1,921 |
|
| 292,684 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUNDS |
|
|
|
|
| 646,852 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES—100.2% |
|
|
|
|
| 20,008,237 |
|
|
|
|
|
|
|
|
|
|
| ||
| Percentages indicated are based on net assets of $19,975,692. | |
| ||
(a) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. | |
| ||
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 WORLD SELECTION FUNDS
Statements of Assets and Liabilities—as of April 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Balanced |
| Moderate |
| Conservative |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in Affiliated Portfolios |
| $ | 12,368,458 |
| $ | 26,027,570 |
| $ | 16,796,245 |
| $ | 4,503,627 |
|
Investments in Affiliated Fund, at value |
|
| 64,821 |
|
| 272,021 |
|
| 324,155 |
|
| 204,978 |
|
Investments in non-affiliates, at value |
|
| 6,919,218 |
|
| 29,065,674 |
|
| 32,716,253 |
|
| 15,299,632 |
|
|
|
|
|
|
| ||||||||
Total Investments |
|
| 19,352,497 |
|
| 55,365,265 |
|
| 49,836,653 |
|
| 20,008,237 |
|
|
|
|
|
|
| ||||||||
Receivable for capital shares issued |
|
| 111,320 |
|
| 145,843 |
|
| 219,411 |
|
| 2,009 |
|
Reclaims receivable |
|
| 4,314 |
|
| 10,082 |
|
| 8,567 |
|
| 1,984 |
|
Receivable from Investment Adviser |
|
| 935 |
|
| — |
|
| — |
|
| — |
|
Prepaid expenses and other assets |
|
| 9,608 |
|
| 7,362 |
|
| 10,353 |
|
| 5,710 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 19,478,674 |
|
| 55,528,552 |
|
| 50,074,984 |
|
| 20,017,940 |
|
|
|
|
|
|
| ||||||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable for capital shares redeemed |
|
| 11,641 |
|
| 23,054 |
|
| 15,069 |
|
| 6,461 |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Administration |
|
| 348 |
|
| 1,000 |
|
| 902 |
|
| 362 |
|
Distribution |
|
| 5,320 |
|
| 15,445 |
|
| 15,710 |
|
| 6,834 |
|
Shareholder Servicing |
|
| 3,795 |
|
| 10,905 |
|
| 9,851 |
|
| 3,953 |
|
Compliance Services |
|
| 8 |
|
| 19 |
|
| 23 |
|
| 10 |
|
Accounting |
|
| 151 |
|
| 125 |
|
| 122 |
|
| 122 |
|
Custodian |
|
| 7,665 |
|
| 8,964 |
|
| 8,796 |
|
| 7,190 |
|
Transfer Agent |
|
| 9,159 |
|
| 14,502 |
|
| 15,273 |
|
| 6,982 |
|
Trustee |
|
| 42 |
|
| 85 |
|
| 115 |
|
| 77 |
|
Other |
|
| 7,915 |
|
| 26,021 |
|
| 23,957 |
|
| 10,257 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 46,044 |
|
| 100,120 |
|
| 89,818 |
|
| 42,248 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 19,432,630 |
| $ | 55,428,432 |
| $ | 49,985,166 |
| $ | 19,975,692 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
| $ | 17,288,644 |
| $ | 50,191,045 |
| $ | 46,415,564 |
| $ | 18,915,587 |
|
Accumulated net investment income (loss) |
|
| (41,928 | ) |
| 117,818 |
|
| (173,116 | ) |
| (125,030 | ) |
Accumulated net realized (losses) from investments |
|
| (600,928 | ) |
| (1,716,862 | ) |
| (1,541,445 | ) |
| (143,164 | ) |
Unrealized appreciation/depreciation on investments |
|
| 2,786,842 |
|
| 6,836,431 |
|
| 5,284,163 |
|
| 1,328,299 |
|
|
|
|
|
|
| ||||||||
Net Assets |
| $ | 19,432,630 |
| $ | 55,428,432 |
| $ | 49,985,166 |
| $ | 19,975,692 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 10,222,411 |
| $ | 28,923,247 |
| $ | 23,315,495 |
| $ | 8,457,931 |
|
Class B Shares |
|
| 7,723,928 |
|
| 20,745,822 |
|
| 22,794,057 |
|
| 9,512,604 |
|
Class C Shares |
|
| 1,486,291 |
|
| 5,759,363 |
|
| 3,875,614 |
|
| 2,005,157 |
|
|
|
|
|
|
| ||||||||
|
| $ | 19,432,630 |
| $ | 55,428,432 |
| $ | 49,985,166 |
| $ | 19,975,692 |
|
|
|
|
|
|
| ||||||||
Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
($0.001 par value, unlimited number of shares authorized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 747,107 |
|
| 2,178,116 |
|
| 1,894,808 |
|
| 731,616 |
|
Class B Shares |
|
| 587,728 |
|
| 1,564,467 |
|
| 1,854,513 |
|
| 832,362 |
|
Class C Shares |
|
| 113,317 |
|
| 432,930 |
|
| 323,691 |
|
| 170,708 |
|
Net Asset Value, Offering Price and Redemption Price per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
| $ | 13.68 |
| $ | 13.28 |
| $ | 12.30 |
| $ | 11.56 |
|
Class B Shares (a) |
| $ | 13.14 |
| $ | 13.26 |
| $ | 12.29 |
| $ | 11.43 |
|
Class C Shares (a) |
| $ | 13.12 |
| $ | 13.30 |
| $ | 11.97 |
| $ | 11.75 |
|
Maximum Sales Charge—Class A Shares |
|
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
| 5.00 | % |
|
|
|
|
|
| ||||||||
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares |
| $ | 14.40 |
| $ | 13.98 |
| $ | 12.95 |
| $ | 12.17 |
|
|
|
|
|
|
| ||||||||
Investments in Affiliated Fund, at cost |
| $ | 64,821 |
| $ | 272,021 |
| $ | 324,155 |
| $ | 204,978 |
|
Investments in non-affiliate funds, at cost |
| $ | 6,292,549 |
| $ | 26,824,353 |
| $ | 30,645,495 |
| $ | 14,797,028 |
|
|
|
|
|
|
|
|
|
|
| ||
(a) | Redemption Price per share varies by length of time shares are held. |
|
|
|
20 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC WORLD SELECTION FUNDS
Statements of Operations—For the six months ended April 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggressive |
| Balanced |
| Moderate |
| Conservative |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income from non-affiliates |
| $ | 108,375 |
| $ | 685,484 |
| $ | 774,691 |
| $ | 339,376 |
|
Investment Income from Affiliated Portfolios (a) |
|
| 72,886 |
|
| 147,644 |
|
| 106,354 |
|
| 30,307 |
|
Investment Income from Affiliated Fund |
|
| 58 |
|
| 284 |
|
| 249 |
|
| 137 |
|
Tax reclaims from Affiliated Portfolios (a) |
|
| 775 |
|
| 1,608 |
|
| 1,421 |
|
| 416 |
|
Foreign tax withholding from Affiliated Portfolios (a) |
|
| (2,777 | ) |
| (5,209 | ) |
| (4,581 | ) |
| (1,541 | ) |
Expenses from Affiliated Portfolios (a) |
|
| (40,037 | ) |
| (81,383 | ) |
| (57,184 | ) |
| (15,862 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income |
|
| 139,280 |
|
| 748,428 |
|
| 820,950 |
|
| 352,833 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 4,074 |
|
| 11,681 |
|
| 10,852 |
|
| 4,344 |
|
Administration: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 1,010 |
|
| 2,842 |
|
| 2,317 |
|
| 845 |
|
Class B Shares |
|
| 730 |
|
| 2,007 |
|
| 2,259 |
|
| 947 |
|
Class C Shares |
|
| 112 |
|
| 461 |
|
| 358 |
|
| 182 |
|
Distribution: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares |
|
| 24,134 |
|
| 66,394 |
|
| 74,609 |
|
| 31,326 |
|
Class C Shares |
|
| 3,729 |
|
| 15,289 |
|
| 11,869 |
|
| 6,047 |
|
Shareholder Servicing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| 11,117 |
|
| 31,304 |
|
| 25,505 |
|
| 9,281 |
|
Class B Shares |
|
| 8,045 |
|
| 22,131 |
|
| 24,878 |
|
| 10,442 |
|
Class C Shares |
|
| 1,243 |
|
| 5,096 |
|
| 3,956 |
|
| 2,016 |
|
Accounting |
|
| 9,746 |
|
| 9,751 |
|
| 9,751 |
|
| 9,751 |
|
Compliance Services |
|
| 49 |
|
| 136 |
|
| 135 |
|
| 54 |
|
Custodian |
|
| 12,870 |
|
| 17,506 |
|
| 17,206 |
|
| 14,712 |
|
Printing |
|
| 10,208 |
|
| 28,880 |
|
| 28,236 |
|
| 10,749 |
|
Professional |
|
| 1,548 |
|
| 5,799 |
|
| 5,546 |
|
| 1,754 |
|
Transfer Agent |
|
| 25,989 |
|
| 41,725 |
|
| 42,474 |
|
| 21,593 |
|
Trustee |
|
| 195 |
|
| 528 |
|
| 531 |
|
| 242 |
|
Registration fees |
|
| 8,317 |
|
| 9,320 |
|
| 9,503 |
|
| 6,432 |
|
Other |
|
| 317 |
|
| 666 |
|
| 607 |
|
| 398 |
|
|
|
|
|
|
| ||||||||
Total expenses before fee reductions |
|
| 123,433 |
|
| 271,516 |
|
| 270,592 |
|
| 131,115 |
|
Fees contractually reduced by Investment Adviser |
|
| (9,124 | ) |
| — |
|
| — |
|
| — |
|
Fees voluntarily reduced by Investment Adviser |
|
| (4,074 | ) |
| (11,681 | ) |
| (10,852 | ) |
| (4,344 | ) |
|
|
|
|
|
| ||||||||
Net Expenses |
|
| 110,235 |
|
| 259,835 |
|
| 259,740 |
|
| 126,771 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss) |
|
| 29,045 |
|
| 488,593 |
|
| 561,210 |
|
| 226,062 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Realized/Unrealized Gains (Losses) from Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from affiliated investment securities and foreign currency transactions (a) |
|
| 376,981 |
|
| 784,219 |
|
| 631,911 |
|
| 174,279 |
|
Net realized gains (losses) from investment securities and foreign currency transactions |
|
| 245,090 |
|
| 629,564 |
|
| 651,676 |
|
| 303,423 |
|
Change in unrealized appreciation/depreciation on affiliated investments (a) |
|
| 1,256,427 |
|
| 2,601,092 |
|
| 1,625,855 |
|
| 416,802 |
|
Change in unrealized appreciation/depreciation on investments |
|
| 327,766 |
|
| 962,610 |
|
| 537,386 |
|
| (34,178 | ) |
|
|
|
|
|
| ||||||||
Net realized/unrealized gains (losses) from investments |
|
| 2,206,264 |
|
| 4,977,485 |
|
| 3,446,828 |
|
| 860,326 |
|
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | 2,235,309 |
| $ | 5,466,078 |
| $ | 4,008,038 |
| $ | 1,086,388 |
|
|
|
|
|
|
|
|
|
|
| ||
(a) | Represents amounts allocated from the respective Affiliated Portfolios. |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 21 |
HSBC 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) |
| $ | 29,045 |
| $ | (9,180 | ) | $ | 488,593 |
| $ | 458,898 |
|
Net realized gains (losses) from investments |
|
| 622,071 |
|
| 607,666 |
|
| 1,413,783 |
|
| 1,861,522 |
|
Change in unrealized appreciation/depreciation on investments |
|
| 1,584,193 |
|
| 1,237,845 |
|
| 3,563,702 |
|
| 3,081,478 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 2,235,309 |
|
| 1,836,331 |
|
| 5,466,078 |
|
| 5,401,898 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (68,444 | ) |
| — |
|
| (529,559 | ) |
| (120,819 | ) |
Class B Shares |
|
| (15,713 | ) |
| — |
|
| (273,352 | ) |
| (13,178 | ) |
Class C Shares |
|
| (3,532 | ) |
| — |
|
| (57,612 | ) |
| (2,104 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| (87,689 | ) |
| — |
|
| (860,523 | ) |
| (136,101 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 3,182,020 |
|
| 2,784,370 |
|
| 10,090,281 |
|
| 7,459,473 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 5,329,640 |
|
| 4,620,701 |
|
| 14,695,836 |
|
| 12,725,270 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 14,102,990 |
|
| 9,482,289 |
|
| 40,732,596 |
|
| 28,007,326 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 19,432,630 |
| $ | 14,102,990 |
| $ | 55,428,432 |
| $ | 40,732,596 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | (41,928 | ) | $ | 16,716 |
| $ | 117,818 |
| $ | 489,748 |
|
|
|
|
|
|
|
|
|
|
22 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC 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 |
| $ | 1,880,639 |
| $ | 2,263,565 |
| $ | 5,999,349 |
| $ | 5,390,506 |
|
Dividends reinvested |
|
| 67,390 |
|
| — |
|
| 519,067 |
|
| 118,661 |
|
Value of shares redeemed |
|
| (772,481 | ) |
| (860,729 | ) |
| (1,666,465 | ) |
| (2,048,014 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 1,175,548 |
|
| 1,402,836 |
|
| 4,851,951 |
|
| 3,461,153 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 1,813,996 |
|
| 1,549,215 |
|
| 4,084,356 |
|
| 4,043,666 |
|
Dividends reinvested |
|
| 15,477 |
|
| — |
|
| 271,439 |
|
| 13,153 |
|
Value of shares redeemed |
|
| (481,412 | ) |
| (509,274 | ) |
| (960,609 | ) |
| (1,683,420 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 1,348,061 |
|
| 1,039,941 |
|
| 3,395,186 |
|
| 2,373,399 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 699,166 |
|
| 470,488 |
|
| 2,209,987 |
|
| 1,889,455 |
|
Dividends reinvested |
|
| 3,495 |
|
| — |
|
| 55,493 |
|
| 2,040 |
|
Value of shares redeemed |
|
| (44,250 | ) |
| (128,895 | ) |
| (422,336 | ) |
| (266,574 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 658,411 |
|
| 341,593 |
|
| 1,843,144 |
|
| 1,624,921 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
| $ | 3,182,020 |
| $ | 2,784,370 |
| $ | 10,090,281 |
| $ | 7,459,473 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 146,755 |
|
| 200,993 |
|
| 478,344 |
|
| 480,315 |
|
Reinvested |
|
| 5,344 |
|
| — |
|
| 42,166 |
|
| 10,886 |
|
Redeemed |
|
| (60,550 | ) |
| (77,306 | ) |
| (131,893 | ) |
| (182,412 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 91,549 |
|
| 123,687 |
|
| 388,617 |
|
| 308,789 |
|
|
|
|
|
|
| ||||||||
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 147,218 |
|
| 144,296 |
|
| 324,557 |
|
| 358,138 |
|
Reinvested |
|
| 1,275 |
|
| — |
|
| 22,032 |
|
| 1,203 |
|
Redeemed |
|
| (39,220 | ) |
| (48,010 | ) |
| (76,111 | ) |
| (151,283 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 109,273 |
|
| 96,286 |
|
| 270,478 |
|
| 208,058 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 55,964 |
|
| 43,232 |
|
| 173,499 |
|
| 167,676 |
|
Reinvested |
|
| 288 |
|
| — |
|
| 4,490 |
|
| 186 |
|
Redeemed |
|
| (3,474 | ) |
| (12,008 | ) |
| (34,246 | ) |
| (24,287 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 52,778 |
|
| 31,224 |
|
| 143,743 |
|
| 143,575 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 23 |
HSBC 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) |
| $ | 561,210 |
| $ | 690,130 |
| $ | 226,062 |
| $ | 251,333 |
|
Net realized gains (losses) from investments |
|
| 1,283,587 |
|
| 2,030,264 |
|
| 477,702 |
|
| 726,450 |
|
Change in unrealized appreciation/depreciation on investments |
|
| 2,163,241 |
|
| 2,500,347 |
|
| 382,624 |
|
| 651,659 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 4,008,038 |
|
| 5,220,741 |
|
| 1,086,388 |
|
| 1,629,442 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares |
|
| (430,486 | ) |
| (395,383 | ) |
| (182,839 | ) |
| (127,525 | ) |
Class B Shares |
|
| (348,306 | ) |
| (254,802 | ) |
| (179,590 | ) |
| (93,624 | ) |
Class C Shares |
|
| (58,235 | ) |
| (32,803 | ) |
| (32,956 | ) |
| (14,198 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from shareholder dividends |
|
| (837,027 | ) |
| (682,988 | ) |
| (395,385 | ) |
| (235,347 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
|
| 6,986,545 |
|
| 3,662,397 |
|
| 3,412,167 |
|
| 4,028,105 |
|
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 10,157,556 |
|
| 8,200,150 |
|
| 4,103,170 |
|
| 5,422,200 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 39,827,610 |
|
| 31,627,460 |
|
| 15,872,522 |
|
| 10,450,322 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 49,985,166 |
| $ | 39,827,610 |
| $ | 19,975,692 |
| $ | 15,872,522 |
|
|
|
|
|
|
| ||||||||
Accumulated net investment income (loss) |
| $ | (173,116 | ) | $ | 102,701 |
| $ | (125,030 | ) | $ | 44,293 |
|
|
|
|
|
|
|
|
|
|
24 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
HSBC 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 |
| $ | 4,090,180 |
| $ | 3,956,868 |
| $ | 1,560,613 |
| $ | 2,330,836 |
|
Dividends reinvested |
|
| 425,559 |
|
| 392,648 |
|
| 172,900 |
|
| 121,984 |
|
Value of shares redeemed |
|
| (1,612,152 | ) |
| (3,557,464 | ) |
| (709,420 | ) |
| (1,021,219 | ) |
|
|
|
|
|
| ||||||||
Class A Shares capital transactions |
|
| 2,903,587 |
|
| 792,052 |
|
| 1,024,093 |
|
| 1,431,601 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 3,761,900 |
|
| 3,696,441 |
|
| 2,064,968 |
|
| 2,543,077 |
|
Dividends reinvested |
|
| 343,411 |
|
| 252,936 |
|
| 174,944 |
|
| 92,314 |
|
Value of shares redeemed |
|
| (1,122,787 | ) |
| (1,889,818 | ) |
| (465,644 | ) |
| (777,671 | ) |
|
|
|
|
|
| ||||||||
Class B Shares capital transactions |
|
| 2,982,524 |
|
| 2,059,559 |
|
| 1,774,268 |
|
| 1,857,720 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued |
|
| 1,509,414 |
|
| 1,048,351 |
|
| 709,604 |
|
| 973,280 |
|
Dividends reinvested |
|
| 57,439 |
|
| 32,527 |
|
| 32,431 |
|
| 13,686 |
|
Value of shares redeemed |
|
| (466,419 | ) |
| (270,092 | ) |
| (128,229 | ) |
| (248,182 | ) |
|
|
|
|
|
| ||||||||
Class C Shares capital transactions |
|
| 1,100,434 |
|
| 810,786 |
|
| 613,806 |
|
| 738,784 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from capital transactions |
| $ | 6,986,545 |
| $ | 3,662,397 |
| $ | 3,412,167 |
| $ | 4,028,105 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE TRANSACTIONS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 346,592 |
|
| 367,550 |
|
| 138,872 |
|
| 220,441 |
|
Reinvested |
|
| 36,346 |
|
| 36,767 |
|
| 15,542 |
|
| 11,600 |
|
Redeemed |
|
| (136,929 | ) |
| (332,930 | ) |
| (63,274 | ) |
| (97,162 | ) |
|
|
|
|
|
| ||||||||
Change in Class A Shares |
|
| 246,009 |
|
| 71,387 |
|
| 91,140 |
|
| 134,879 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class B Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 318,476 |
|
| 343,065 |
|
| 185,917 |
|
| 242,687 |
|
Reinvested |
|
| 29,360 |
|
| 23,691 |
|
| 15,908 |
|
| 8,875 |
|
Redeemed |
|
| (94,958 | ) |
| (176,487 | ) |
| (41,703 | ) |
| (74,600 | ) |
|
|
|
|
|
| ||||||||
Change in Class B Shares |
|
| 252,878 |
|
| 190,269 |
|
| 160,122 |
|
| 176,962 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued |
|
| 131,979 |
|
| 99,026 |
|
| 62,256 |
|
| 90,908 |
|
Reinvested |
|
| 5,041 |
|
| 3,116 |
|
| 2,867 |
|
| 1,280 |
|
Redeemed |
|
| (40,931 | ) |
| (25,776 | ) |
| (11,218 | ) |
| (23,022 | ) |
|
|
|
|
|
| ||||||||
Change in Class C Shares |
|
| 96,089 |
|
| 76,366 |
|
| 53,905 |
|
| 69,166 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 25 |
|
AGGRESSIVE STRATEGY FUND |
Selected data for a share outstanding throughout the periods indicated. (a)
|
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| Investment Activities |
| Dividends |
| |||||||||||||||
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|
| ||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Total |
| |||||||
CLASS A SHARES |
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|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.60 |
|
| 0.01 |
|
| 2.01 |
|
| 2.02 |
|
| — |
|
| (0.05 | ) |
| (0.05 | ) |
Year Ended October 31, 2007 |
|
| 12.57 |
|
| — | *(f) |
| 2.98 |
|
| 2.98 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.55 |
|
| 0.02 | * |
| (6.05 | ) |
| (6.03 | ) |
| — |
|
| (0.90 | ) |
| (0.90 | ) |
Year Ended October 31, 2009 |
|
| 8.62 |
|
| 0.01 | * |
| 1.57 |
|
| 1.58 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2010 |
|
| 10.20 |
|
| 0.03 | * |
| 1.80 |
|
| 1.83 |
|
| — |
|
| — |
|
| — |
|
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.03 |
|
| 0.04 |
|
| 1.71 |
|
| 1.75 |
|
| (0.10 | ) |
| — |
|
| (0.10 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.57 |
|
| (0.05 | ) |
| 1.97 |
|
| 1.92 |
|
| — |
|
| (0.05 | ) |
| (0.05 | ) |
Year Ended October 31, 2007 |
|
| 12.44 |
|
| (0.11 | )* |
| 2.94 |
|
| 2.83 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.27 |
|
| (0.08 | )* |
| (5.90 | ) |
| (5.98 | ) |
| — |
|
| (0.90 | ) |
| (0.90 | ) |
Year Ended October 31, 2009 |
|
| 8.39 |
|
| (0.06 | )* |
| 1.53 |
|
| 1.47 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2010 |
|
| 9.86 |
|
| (0.05 | )* |
| 1.73 |
|
| 1.68 |
|
| — |
|
| — |
|
| — |
|
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.54 |
|
| — | (f) |
| 1.63 |
|
| 1.63 |
|
| (0.03 | ) |
| — |
|
| (0.03 | ) |
CLASS C SHARES |
|
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|
|
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|
|
|
|
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|
|
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|
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|
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|
Year Ended October 31, 2006 |
| $ | 10.55 |
|
| (0.04 | ) |
| 1.95 |
|
| 1.91 |
|
| — |
|
| (0.05 | ) |
| (0.05 | ) |
Year Ended October 31, 2007 |
|
| 12.41 |
|
| (0.11 | )* |
| 2.96 |
|
| 2.85 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2008 |
|
| 15.26 |
|
| (0.08 | )* |
| (5.89 | ) |
| (5.97 | ) |
| — |
|
| (0.90 | ) |
| (0.90 | ) |
Year Ended October 31, 2009 |
|
| 8.39 |
|
| (0.05 | )* |
| 1.51 |
|
| 1.46 |
|
| — |
|
| — |
|
| — |
|
Year Ended October 31, 2010 |
|
| 9.85 |
|
| (0.05 | )* |
| 1.73 |
|
| 1.68 |
|
| — |
|
| — |
|
| — |
|
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.53 |
|
| (0.01 | ) |
| 1.65 |
|
| 1.64 |
|
| (0.05 | ) |
| — |
|
| (0.05 | ) |
|
|
|
|
|
|
|
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| Ratios/Supplementary Data |
| |||||||||||||||
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| |||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||
CLASS A SHARES |
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|
|
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|
|
Year Ended October 31, 2006 |
| $ | 12.57 |
|
| 19.15 | % | $ | 4,116 |
|
| 1.50 | % |
| 0.05 | % |
| 3.52 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
| 15.55 |
|
| 23.71 | % |
| 7,046 |
|
| 1.50 | % |
| (0.03 | )% |
| 2.27 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
| 8.62 |
|
| (40.92 | )%(g) |
| 4,572 |
|
| 1.50 | % |
| 0.13 | % |
| 1.98 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
| 10.20 |
|
| 18.33 | %(h) |
| 5,426 |
|
| 1.50 | % |
| 0.09 | % |
| 2.16 | % |
| 53.42 | % |
Year Ended October 31, 2010 |
|
| 12.03 |
|
| 17.94 | %(i) |
| 7,886 |
|
| 1.50 | % |
| 0.24 | % |
| 2.00 | % |
| 50.21 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.68 |
|
| 14.61 | %(j) |
| 10,222 |
|
| 1.50 | % |
| 0.70 | % |
| 1.66 | % |
| 39.32 | % |
CLASS B SHARES |
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|
|
Year Ended October 31, 2006 |
| $ | 12.44 |
|
| 18.25 | % | $ | 2,998 |
|
| 2.25 | % |
| (0.70 | )% |
| 4.33 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
| 15.27 |
|
| 22.75 | % |
| 4,942 |
|
| 2.25 | % |
| (0.77 | )% |
| 3.02 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
| 8.39 |
|
| (41.36 | )%(g) |
| 3,166 |
|
| 2.25 | % |
| (0.62 | )% |
| 2.73 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
| 9.86 |
|
| 17.52 | %(h) |
| 3,767 |
|
| 2.25 | % |
| (0.66 | )% |
| 2.91 | % |
| 53.42 | % |
Year Ended October 31, 2010 |
|
| 11.54 |
|
| 17.04 | %(i) |
| 5,519 |
|
| 2.25 | % |
| (0.51 | )% |
| 2.75 | % |
| 50.21 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.14 |
|
| 14.16 | %(j) |
| 7,724 |
|
| 2.25 | % |
| (0.05 | )% |
| 2.41 | % |
| 39.32 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 12.41 |
|
| 18.19 | % | $ | 229 |
|
| 2.25 | % |
| (0.69 | )% |
| 4.20 | % |
| 48.46 | % |
Year Ended October 31, 2007 |
|
| 15.26 |
|
| 22.97 | % |
| 528 |
|
| 2.25 | % |
| (0.79 | )% |
| 2.99 | % |
| 45.50 | % |
Year Ended October 31, 2008 |
|
| 8.39 |
|
| (41.32 | )%(g) |
| 319 |
|
| 2.25 | % |
| (0.64 | )% |
| 2.73 | % |
| 72.33 | % |
Year Ended October 31, 2009 |
|
| 9.85 |
|
| 17.40 | %(h) |
| 289 |
|
| 2.25 | % |
| (0.59 | )% |
| 2.93 | % |
| 53.42 | % |
Year Ended October 31, 2010 |
|
| 11.53 |
|
| 17.06 | %(i) |
| 698 |
|
| 2.25 | % |
| (0.47 | )% |
| 2.76 | % |
| 50.21 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.12 |
|
| 14.26 | %(j) |
| 1,486 |
|
| 2.25 | % |
| (0.09 | )% |
| 2.41 | % |
| 39.32 | % |
|
|
* | 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) | Excludes fee reductions. 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 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) | Rounds to less than $0.005 or $(0.005). |
|
|
(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 0.11%, 0.11% and 0.11% 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) | During the year ended October 31, 2010, 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) | During the period ended April 30, 2011, 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 0.04%, 0.04% and 0.04% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
|
26 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
BALANCED STRATEGY FUND |
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
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|
|
|
|
| Investment Activities |
| Dividends |
| |||||||||||||||
|
|
|
|
| ||||||||||||||||||
|
| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net Realized |
| Total |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.72 |
|
| 0.07 |
|
| 1.69 |
|
| 1.76 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
Year Ended October 31, 2007 |
|
| 12.45 |
|
| 0.11 | * |
| 2.34 |
|
| 2.45 |
|
| (0.08 | ) |
| (0.09 | ) |
| (0.17 | ) |
Year Ended October 31, 2008 |
|
| 14.73 |
|
| 0.12 | * |
| (5.21 | ) |
| (5.09 | ) |
| (0.09 | ) |
| (0.74 | ) |
| (0.83 | ) |
Year Ended October 31, 2009 |
|
| 8.81 |
|
| 0.07 | * |
| 1.55 |
|
| 1.62 |
|
| (0.09 | ) |
| — |
|
| (0.09 | ) |
Year Ended October 31, 2010 |
|
| 10.34 |
|
| 0.19 | * |
| 1.64 |
|
| 1.83 |
|
| (0.08 | ) |
| — |
|
| (0.08 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.09 |
|
| 0.15 |
|
| 1.32 |
|
| 1.47 |
|
| (0.28 | ) |
| — |
|
| (0.28 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.78 |
|
| 0.02 |
|
| 1.66 |
|
| 1.68 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
Year Ended October 31, 2007 |
|
| 12.43 |
|
| 0.01 | * |
| 2.34 |
|
| 2.35 |
|
| (0.02 | ) |
| (0.09 | ) |
| (0.11 | ) |
Year Ended October 31, 2008 |
|
| 14.67 |
|
| 0.03 | * |
| (5.20 | ) |
| (5.17 | ) |
| — | (k) |
| (0.74 | ) |
| (0.74 | ) |
Year Ended October 31, 2009 |
|
| 8.76 |
|
| 0.01 | * |
| 1.55 |
|
| 1.56 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
Year Ended October 31, 2010 |
|
| 10.31 |
|
| 0.11 | * |
| 1.64 |
|
| 1.75 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.05 |
|
| 0.10 |
|
| 1.31 |
|
| 1.41 |
|
| (0.20 | ) |
| — |
|
| (0.20 | ) |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.82 |
|
| 0.02 |
|
| 1.67 |
|
| 1.69 |
|
| — |
|
| (0.03 | ) |
| (0.03 | ) |
Year Ended October 31, 2007 |
|
| 12.48 |
|
| 0.01 | * |
| 2.35 |
|
| 2.36 |
|
| (0.01 | ) |
| (0.09 | ) |
| (0.10 | ) |
Year Ended October 31, 2008 |
|
| 14.74 |
|
| 0.03 | * |
| (5.22 | ) |
| (5.19 | ) |
| (0.01 | ) |
| (0.74 | ) |
| (0.75 | ) |
Year Ended October 31, 2009 |
|
| 8.80 |
|
| 0.01 | * |
| 1.55 |
|
| 1.56 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
Year Ended October 31, 2010 |
|
| 10.35 |
|
| 0.12 | * |
| 1.63 |
|
| 1.75 |
|
| (0.01 | ) |
| — |
|
| (0.01 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.09 |
|
| 0.10 |
|
| 1.32 |
|
| 1.42 |
|
| (0.21 | ) |
| — |
|
| (0.21 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| |||||||||||||||
|
|
|
|
|
| |||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 12.45 |
|
| 16.41 | % | $ | 12,562 |
|
| 1.50 | % |
| 0.87 | % |
| 2.19 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
| 14.73 |
|
| 19.92 | %(f) |
| 21,352 |
|
| 1.50 | % |
| 0.84 | % |
| 1.65 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
| 8.81 |
|
| (36.43 | )%(g) |
| 13,908 |
|
| 1.50 | % |
| 0.98 | % |
| 1.53 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
| 10.34 |
|
| 18.66 | %(h) |
| 15,304 |
|
| 1.50 | % |
| 0.84 | % |
| 1.57 | % |
| 47.74 | % |
Year Ended October 31, 2010 |
|
| 12.09 |
|
| 17.79 | %(i) |
| 21,642 |
|
| 1.25 | % |
| 1.72 | % |
| 1.30 | % |
| 52.81 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.28 |
|
| 12.31 | %(j) |
| 28,923 |
|
| 1.11 | % |
| 2.45 | % |
| 1.17 | % |
| 17.07 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 12.43 |
|
| 15.57 | % | $ | 8,702 |
|
| 2.25 | % |
| 0.11 | % |
| 2.94 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
| 14.67 |
|
| 18.98 | %(f) |
| 13,905 |
|
| 2.25 | % |
| 0.09 | % |
| 2.40 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
| 8.76 |
|
| (36.95 | )%(g) |
| 9,516 |
|
| 2.25 | % |
| 0.24 | % |
| 2.28 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
| 10.31 |
|
| 17.80 | %(h) |
| 11,196 |
|
| 2.25 | % |
| 0.07 | % |
| 2.31 | % |
| 47.74 | % |
Year Ended October 31, 2010 |
|
| 12.05 |
|
| 17.01 | %(i) |
| 15,593 |
|
| 2.00 | % |
| 0.97 | % |
| 2.05 | % |
| 52.81 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.26 |
|
| 11.84 | %(j) |
| 20,746 |
|
| 1.86 | % |
| 1.70 | % |
| 1.92 | % |
| 17.07 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 12.48 |
|
| 15.61 | % | $ | 585 |
|
| 2.25 | % |
| 0.14 | % |
| 2.90 | % |
| 80.30 | % |
Year Ended October 31, 2007 |
|
| 14.74 |
|
| 19.04 | %(f) |
| 1,273 |
|
| 2.25 | % |
| 0.07 | % |
| 2.39 | % |
| 73.45 | % |
Year Ended October 31, 2008 |
|
| 8.80 |
|
| (36.94 | )%(g) |
| 937 |
|
| 2.25 | % |
| 0.25 | % |
| 2.29 | % |
| 78.59 | % |
Year Ended October 31, 2009 |
|
| 10.35 |
|
| 17.81 | %(h) |
| 1,507 |
|
| 2.25 | % |
| 0.06 | % |
| 2.30 | % |
| 47.74 | % |
Year Ended October 31, 2010 |
|
| 12.09 |
|
| 16.96 | %(i) |
| 3,497 |
|
| 2.01 | % |
| 1.04 | % |
| 2.06 | % |
| 52.81 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 13.30 |
|
| 11.84 | %(j) |
| 5,759 |
|
| 1.86 | % |
| 1.68 | % |
| 1.92 | % |
| 17.07 | % |
|
|
* | 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) | Excludes fee reductions. 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 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) | During the year ended October 31, 2010, 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 0.07%, 0.07% and 0.07% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | During the period ended April 30, 2011, 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 0.03%, 0.03% and 0.03% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(k) | Rounds to less than $0.005 or $(0.005). |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 27 |
|
MODERATE STRATEGY FUND |
Financial Highlights |
Selected data for a share outstanding throughout the periods indicated. (a)
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| Investment Activities |
| Dividends |
| ||||||||||||||||||
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| |||||||||||||||||||||
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| Net Asset |
| Net |
| Net Realized |
| Total from |
| Net |
| Net |
| Return |
| Total |
| ||||||||
CLASS A SHARES |
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Year Ended October 31, 2006 |
| $ | 10.49 |
|
| 0.17 |
|
| 1.23 |
|
| 1.40 |
|
| (0.17 | ) |
| (0.01 | ) |
| — |
|
| (0.18 | ) |
Year Ended October 31, 2007 |
|
| 11.71 |
|
| 0.21 | * |
| 1.65 |
|
| 1.86 |
|
| (0.20 | ) |
| (0.10 | ) |
| — |
|
| (0.30 | ) |
Year Ended October 31, 2008 |
|
| 13.27 |
|
| 0.20 | * |
| (4.08 | ) |
| (3.88 | ) |
| (0.19 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.70 | ) |
Year Ended October 31, 2009 |
|
| 8.69 |
|
| 0.13 | * |
| 1.39 |
|
| 1.52 |
|
| (0.12 | ) |
| — |
|
| — |
|
| (0.12 | ) |
Year Ended October 31, 2010 |
|
| 10.09 |
|
| 0.25 | * |
| 1.38 |
|
| 1.63 |
|
| (0.24 | ) |
| — |
|
| — |
|
| (0.24 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.48 |
|
| 0.17 |
|
| 0.90 |
|
| 1.07 |
|
| (0.25 | ) |
| — |
|
| — |
|
| (0.25 | ) |
CLASS B SHARES |
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|
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|
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|
|
Year Ended October 31, 2006 |
| $ | 10.50 |
|
| 0.09 |
|
| 1.22 |
|
| 1.31 |
|
| (0.08 | ) |
| (0.01 | ) |
| — |
|
| (0.09 | ) |
Year Ended October 31, 2007 |
|
| 11.72 |
|
| 0.12 | * |
| 1.65 |
|
| 1.77 |
|
| (0.12 | ) |
| (0.10 | ) |
| — |
|
| (0.22 | ) |
Year Ended October 31, 2008 |
|
| 13.27 |
|
| 0.11 | * |
| (4.08 | ) |
| (3.97 | ) |
| (0.10 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.61 | ) |
Year Ended October 31, 2009 |
|
| 8.69 |
|
| 0.06 | * |
| 1.39 |
|
| 1.45 |
|
| (0.06 | ) |
| — |
|
| — |
|
| (0.06 | ) |
Year Ended October 31, 2010 |
|
| 10.08 |
|
| 0.17 | * |
| 1.38 |
|
| 1.55 |
|
| (0.17 | ) |
| — |
|
| — |
|
| (0.17 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.46 |
|
| 0.13 |
|
| 0.91 |
|
| 1.04 |
|
| (0.21 | ) |
| — |
|
| — |
|
| (0.21 | ) |
CLASS C SHARES |
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|
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|
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|
|
Year Ended October 31, 2006 |
| $ | 10.28 |
|
| 0.09 |
|
| 1.19 |
|
| 1.28 |
|
| (0.08 | ) |
| (0.01 | ) |
| — |
|
| (0.09 | ) |
Year Ended October 31, 2007 |
|
| 11.47 |
|
| 0.12 | * |
| 1.60 |
|
| 1.72 |
|
| (0.12 | ) |
| (0.10 | ) |
| — |
|
| (0.22 | ) |
Year Ended October 31, 2008 |
|
| 12.97 |
|
| 0.11 | * |
| (3.97 | ) |
| (3.86 | ) |
| (0.11 | ) |
| (0.50 | ) |
| (0.01 | ) |
| (0.62 | ) |
Year Ended October 31, 2009 |
|
| 8.49 |
|
| 0.06 | * |
| 1.35 |
|
| 1.41 |
|
| (0.06 | ) |
| — |
|
| — |
|
| (0.06 | ) |
Year Ended October 31, 2010 |
|
| 9.84 |
|
| 0.17 | * |
| 1.35 |
|
| 1.52 |
|
| (0.18 | ) |
| — |
|
| — |
|
| (0.18 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.18 |
|
| 0.13 |
|
| 0.87 |
|
| 1.00 |
|
| (0.21 | ) |
| — |
|
| — |
|
| (0.21 | ) |
|
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|
|
| Ratios/Supplementary Data |
| |||||||||||||||
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|
|
| |||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||
CLASS A SHARES |
|
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|
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|
|
|
|
|
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|
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|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 11.71 |
|
| 13.40 | % | $ | 11,973 |
|
| 1.50 | % |
| 1.65 | % |
| 2.12 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
| 13.27 |
|
| 16.12 | %(f) |
| 20,140 |
|
| 1.50 | % |
| 1.70 | % |
| 1.60 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
| 8.69 |
|
| (30.65 | )%(g) |
| 14,226 |
|
| 1.48 | % |
| 1.75 | % |
| 1.48 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
| 10.09 |
|
| 17.75 | %(h) |
| 15,909 |
|
| 1.44 | % |
| 1.47 | % |
| 1.49 | % |
| 41.29 | % |
Year Ended October 31, 2010 |
|
| 11.48 |
|
| 16.39 | %(i) |
| 18,921 |
|
| 1.14 | % |
| 2.33 | % |
| 1.19 | % |
| 66.98 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.30 |
|
| 9.43 | %(j) |
| 23,315 |
|
| 1.06 | % |
| 2.99 | % |
| 1.12 | % |
| 14.41 | % |
CLASS B SHARES |
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|
|
Year Ended October 31, 2006 |
| $ | 11.72 |
|
| 12.45 | % | $ | 10,731 |
|
| 2.25 | % |
| 0.91 | % |
| 2.87 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
| 13.27 |
|
| 15.25 | %(f) |
| 16,513 |
|
| 2.25 | % |
| 0.95 | % |
| 2.35 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
| 8.69 |
|
| (31.17 | )%(g) |
| 12,354 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
| 10.08 |
|
| 16.82 | %(h) |
| 14,230 |
|
| 2.19 | % |
| 0.71 | % |
| 2.24 | % |
| 41.29 | % |
Year Ended October 31, 2010 |
|
| 11.46 |
|
| 15.61 | %(i) |
| 18,362 |
|
| 1.89 | % |
| 1.59 | % |
| 1.94 | % |
| 66.98 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.29 |
|
| 9.05 | %(j) |
| 22,794 |
|
| 1.81 | % |
| 2.24 | % |
| 1.87 | % |
| 14.41 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 11.47 |
|
| 12.53 | % | $ | 763 |
|
| 2.25 | % |
| 0.87 | % |
| 2.83 | % |
| 101.57 | % |
Year Ended October 31, 2007 |
|
| 12.97 |
|
| 15.20 | %(f) |
| 1,766 |
|
| 2.25 | % |
| 0.95 | % |
| 2.33 | % |
| 92.87 | % |
Year Ended October 31, 2008 |
|
| 8.49 |
|
| (31.09 | )%(g) |
| 1,408 |
|
| 2.23 | % |
| 1.00 | % |
| 2.23 | % |
| 79.86 | % |
Year Ended October 31, 2009 |
|
| 9.84 |
|
| 16.75 | %(h) |
| 1,488 |
|
| 2.19 | % |
| 0.72 | % |
| 2.24 | % |
| 41.29 | % |
Year Ended October 31, 2010 |
|
| 11.18 |
|
| 15.55 | %(i) |
| 2,544 |
|
| 1.90 | % |
| 1.59 | % |
| 1.95 | % |
| 66.98 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.97 |
|
| 9.05 | %(j) |
| 3,876 |
|
| 1.81 | % |
| 2.23 | % |
| 1.87 | % |
| 14.41 | % |
|
|
* | 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) | Excludes fee reductions. 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 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 0.41%, 0.41% and 0.33% 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 0.19%, 0.19% and 0.19% 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 0.09%, 0.09% and 0.09% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the year ended October 31, 2010, 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 0.06%, 0.06% and 0.06% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | During the period ended April 30, 2011, 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 0.02%, 0.02% and 0.02% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
|
28 | HSBC INVESTOR FAMILY OF FUNDS | See notes to financial statements |
|
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 |
| Total |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.29 |
|
| 0.22 |
|
| 0.85 |
|
| 1.07 |
|
| (0.25 | ) |
| — |
|
| (0.25 | ) |
Year Ended October 31, 2007 |
|
| 11.11 |
|
| 0.29 | * |
| 1.03 |
|
| 1.32 |
|
| (0.27 | ) |
| (0.12 | ) |
| (0.39 | ) |
Year Ended October 31, 2008 |
|
| 12.04 |
|
| 0.24 | * |
| (2.93 | ) |
| (2.69 | ) |
| (0.25 | ) |
| (0.26 | ) |
| (0.51 | ) |
Year Ended October 31, 2009 |
|
| 8.84 |
|
| 0.14 | * |
| 1.16 |
|
| 1.30 |
|
| (0.13 | ) |
| — |
|
| (0.13 | ) |
Year Ended October 31, 2010 |
|
| 10.01 |
|
| 0.26 | * |
| 1.11 |
|
| 1.37 |
|
| (0.23 | ) |
| — |
|
| (0.23 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.15 |
|
| 0.17 |
|
| 0.52 |
|
| 0.69 |
|
| (0.28 | ) |
| — |
|
| (0.28 | ) |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.19 |
|
| 0.15 |
|
| 0.83 |
|
| 0.98 |
|
| (0.16 | ) |
| — |
|
| (0.16 | ) |
Year Ended October 31, 2007 |
|
| 11.01 |
|
| 0.20 | * |
| 1.05 |
|
| 1.25 |
|
| (0.20 | ) |
| (0.12 | ) |
| (0.32 | ) |
Year Ended October 31, 2008 |
|
| 11.94 |
|
| 0.16 | * |
| (2.91 | ) |
| (2.75 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
Year Ended October 31, 2009 |
|
| 8.76 |
|
| 0.07 | * |
| 1.15 |
|
| 1.22 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
Year Ended October 31, 2010 |
|
| 9.91 |
|
| 0.17 | * |
| 1.10 |
|
| 1.27 |
|
| (0.16 | ) |
| — |
|
| (0.16 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.02 |
|
| 0.13 |
|
| 0.52 |
|
| 0.65 |
|
| (0.24 | ) |
| — |
|
| (0.24 | ) |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 10.41 |
|
| 0.15 |
|
| 0.85 |
|
| 1.00 |
|
| (0.17 | ) |
| — |
|
| (0.17 | ) |
Year Ended October 31, 2007 |
|
| 11.24 |
|
| 0.21 | * |
| 1.11 |
|
| 1.32 |
|
| (0.19 | ) |
| (0.12 | ) |
| (0.31 | ) |
Year Ended October 31, 2008 |
|
| 12.25 |
|
| 0.16 | * |
| (2.98 | ) |
| (2.82 | ) |
| (0.17 | ) |
| (0.26 | ) |
| (0.43 | ) |
Year Ended October 31, 2009 |
|
| 9.00 |
|
| 0.07 | * |
| 1.18 |
|
| 1.25 |
|
| (0.07 | ) |
| — |
|
| (0.07 | ) |
Year Ended October 31, 2010 |
|
| 10.18 |
|
| 0.18 | * |
| 1.14 |
|
| 1.32 |
|
| (0.17 | ) |
| — |
|
| (0.17 | ) |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.33 |
|
| 0.13 |
|
| 0.53 |
|
| 0.66 |
|
| (0.24 | ) |
| — |
|
| (0.24 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratios/Supplementary Data |
| |||||||||||||||
|
|
|
|
|
| |||||||||||||||||
|
| Net Asset |
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| |||||||
CLASS A SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 11.11 |
|
| 10.48 | % | $ | 3,069 |
|
| 1.50 | % |
| 2.33 | % |
| 3.22 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
| 12.04 |
|
| 12.13 | %(f) |
| 6,669 |
|
| 1.50 | % |
| 2.52 | % |
| 2.06 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
| 8.84 |
|
| (23.17 | )%(g) |
| 4,747 |
|
| 1.50 | % |
| 2.24 | % |
| 1.72 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
| 10.01 |
|
| 14.95 | %(h) |
| 5,059 |
|
| 1.50 | % |
| 1.53 | % |
| 1.62 | % |
| 34.40 | % |
Year Ended October 31, 2010 |
|
| 11.15 |
|
| 13.86 | %(i) |
| 7,139 |
|
| 1.38 | % |
| 2.42 | % |
| 1.43 | % |
| 78.48 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.56 |
|
| 6.27 | %(j) |
| 8,458 |
|
| 1.21 | % |
| 3.03 | % |
| 1.26 | % |
| 10.98 | % |
CLASS B SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 11.01 |
|
| 9.65 | % | $ | 2,567 |
|
| 2.25 | % |
| 1.54 | % |
| 3.98 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
| 11.94 |
|
| 11.51 | %(f) |
| 4,928 |
|
| 2.25 | % |
| 1.77 | % |
| 2.82 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
| 8.76 |
|
| (23.76 | )%(g) |
| 4,348 |
|
| 2.25 | % |
| 1.48 | % |
| 2.48 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
| 9.91 |
|
| 14.05 | %(h) |
| 4,907 |
|
| 2.25 | % |
| 0.77 | % |
| 2.38 | % |
| 34.40 | % |
Year Ended October 31, 2010 |
|
| 11.02 |
|
| 12.94 | %(i) |
| 7,411 |
|
| 2.14 | % |
| 1.68 | % |
| 2.19 | % |
| 78.48 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.43 |
|
| 5.98 | %(j) |
| 9,513 |
|
| 1.96 | % |
| 2.28 | % |
| 2.01 | % |
| 10.98 | % |
CLASS C SHARES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended October 31, 2006 |
| $ | 11.24 |
|
| 9.66 | % | $ | 320 |
|
| 2.25 | % |
| 1.56 | % |
| 3.92 | % |
| 96.58 | % |
Year Ended October 31, 2007 |
|
| 12.25 |
|
| 11.97 | %(f) |
| 437 |
|
| 2.25 | % |
| 1.78 | % |
| 2.85 | % |
| 88.67 | % |
Year Ended October 31, 2008 |
|
| 9.00 |
|
| (23.73 | )%(g) |
| 430 |
|
| 2.25 | % |
| 1.46 | % |
| 2.48 | % |
| 68.74 | % |
Year Ended October 31, 2009 |
|
| 10.18 |
|
| 13.97 | %(h) |
| 485 |
|
| 2.25 | % |
| 0.78 | % |
| 2.37 | % |
| 34.40 | % |
Year Ended October 31, 2010 |
|
| 11.33 |
|
| 13.07 | %(i) |
| 1,323 |
|
| 2.16 | % |
| 1.71 | % |
| 2.21 | % |
| 78.48 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 11.75 |
|
| 5.92 | %(j) |
| 2,005 |
|
| 1.96 | % |
| 2.29 | % |
| 2.01 | % |
| 10.98 | % |
|
|
* | 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 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 0.44%, 0.47% and 0.48% 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 0.19%, 0.19% and 0.19% 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 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(i) | During the year ended October 31, 2010, 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 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
(j) | During the period ended April 30, 2011, 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 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares and Class C Shares, respectively. |
|
|
|
See notes to financial statements | HSBC INVESTOR FAMILY OF FUNDS | 29 |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (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, 2011, 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 |
|
| |
Aggressive Strategy Fund |
|
Balanced Strategy Fund |
|
Moderate 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. (“HSBC” or 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 FAMILY OF FUNDS |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (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 available to be issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report. |
|
|
| 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 the applicable 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 FAMILY OF FUNDS | 31 |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
|
|
| 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 its taxable net investment income and net realized gains, if any, to its 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. | ||
|
|
|
|
3. | Investment Valuation Summary: | ||
|
|
|
|
| The valuation techniques employed by the World Selection Funds, 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 the 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 World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds and are typically categorized as Level 1 in the fair value hierarchy. The World Selection Funds record their investments in their respective Portfolios at fair value and are typically categorized as a Level 2 in the fair value hierarchy. The underlying securities of the Portfolios are recorded at fair value, as discussed more fully in the Notes to Financial Statements of the Portfolios included in this report. | ||
|
| ||
| For the period ended April 30, 2011, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value. | ||
|
| ||
| The following is a summary of the valuation inputs used as of April 30, 2011 in valuing the World Selection Funds’ investments based upon the three levels defined above: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Aggressive Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Company |
| $ | 64,821 |
| $ | — |
| $ | — |
| $ | 64,821 |
|
Affiliated Porfolios (a) |
|
| — |
|
| 12,368,458 |
|
| — |
|
| 12,368,458 |
|
Unaffiliated Investment Companies |
|
| 6,088,429 |
|
| — |
|
| — |
|
| 6,088,429 |
|
Exchange Traded Fund |
|
| 830,789 |
|
| — |
|
| — |
|
| 830,789 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 6,984,039 |
| $ | 12,368,458 |
| $ | — |
| $ | 19,352,497 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balanced Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Company |
| $ | 272,021 |
| $ | — |
| $ | — |
| $ | 272,021 |
|
Affiliated Porfolios (a) |
|
| — |
|
| 26,027,570 |
|
| — |
|
| 26,027,570 |
|
Unaffiliated Investment Companies |
|
| 25,883,860 |
|
| — |
|
| — |
|
| 25,883,860 |
|
Exchange Traded Funds |
|
| 3,181,814 |
|
| — |
|
| — |
|
| 3,181,814 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 29,337,695 |
| $ | 26,027,570 |
| $ | — |
| $ | 55,365,265 |
|
|
|
|
|
|
|
|
|
32 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Moderate Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Company |
| $ | 324,155 |
| $ | — |
| $ | — |
| $ | 324,155 |
|
Affiliated Porfolios (a) |
|
| — |
|
| 16,796,245 |
|
| — |
|
| 16,796,245 |
|
Unaffiliated Investment Companies |
|
| 30,355,219 |
|
| — |
|
| — |
|
| 30,355,219 |
|
Exchange Traded Funds |
|
| 2,361,034 |
|
| — |
|
| — |
|
| 2,361,034 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 33,040,408 |
| $ | 16,796,245 |
| $ | — |
| $ | 49,836,653 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conservative Strategy Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Companies: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliated Investment Company |
| $ | 204,978 |
| $ | — |
| $ | — |
| $ | 204,978 |
|
Affiliated Porfolios (a) |
|
| — |
|
| 4,503,627 |
|
| — |
|
| 4,503,627 |
|
Unaffiliated Investment Companies |
|
| 14,652,780 |
|
| — |
|
| — |
|
| 14,652,780 |
|
Exchange Traded Funds |
|
| 646,852 |
|
| — |
|
| — |
|
| 646,852 |
|
|
|
|
|
|
| ||||||||
Total Investment Companies |
| $ | 15,504,610 |
| $ | 4,503,627 |
| $ | — |
| $ | 20,008,237 |
|
|
|
|
|
|
|
|
|
|
| ||
(a) | Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder structure, the inputs used for valuing these instruments are categorized as Level 2. |
|
|
| The Trust recognizes significant transfers between fair value hierarchy levels at the reporting period end. There were no significant transfers between Levels 1, 2 or 3 as of April 30, 2011. |
|
|
| In May 2011, the Financial Accounting Standards Board issued an Accounting Standards Update No. 2011-04 (“ASU 2011-04”), “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined. |
|
|
4. | Related Party Transactions: |
|
|
| HSBC Global Asset Management (USA), Inc., 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 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 pursuant to an Investment Advisory Contract. 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. During the period ended April 30, 2011, the Investment Adviser voluntarily waived 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. |
|
|
| 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% |
|
|
|
HSBC INVESTOR FAMILY OF FUNDS | 33 |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| 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 the 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”), 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 is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02%, which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Trusts and Citi (the “CCO Agreement”), Citi makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi 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 $137,025 for the period ended April 30, 2011, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Services.” Citi pays the salary and other compensation earned by individuals performing these services, as employees of Citi. |
|
|
| 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 end, Foreside, as Distributor, also received $563,987, $466,210, and $49,225 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 and Transfer Agency: |
|
|
| Citi provides fund accounting and transfer agency services for the Trusts. As transfer agent, Citi 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 receives an annual fee per Fund and share class, subject to minimums and reimbursement of certain expenses. Citi receives additional fees paid by the Trust for blue sky exemption services. |
|
|
| Independent Trustees: |
|
|
| Each non-interested Trustee is compensated with a $63,000 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. 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. Any emeritus Trustees will be compensated for their services in accordance with a predetermined portion of the non-interested Trustee compensation schedule approved by the Board of Trustees. |
|
|
34 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| Fee Reductions: |
|
|
| The Investment Adviser has agreed to contractually limit through March 1, 2012 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, 2011, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2011, the repayments that may potentially be made by the Funds are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
| 2014* |
| 2013* |
| 2012* |
| 2011* |
| ||||
|
|
|
|
| |||||||||
Aggressive Strategy Fund |
| $ | 9,124 |
| $ | 56,869 |
| $ | 49,257 |
| $ | 51,467 |
|
Balanced Strategy Fund |
|
| — |
|
| — |
|
| 3,289 |
|
| — |
|
Moderate Strategy Fund |
|
| — |
|
| — |
|
| — |
|
| — |
|
Conservative Strategy Fund |
|
| — |
|
| — |
|
| 6,592 |
|
| 20,961 |
|
|
|
* | The year listed above the amounts is the fiscal year ending in which the amounts will no longer be recoupable. |
|
|
| The Administrator and Citi 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 are reported separately on the Statements of Operations, as applicable. |
|
|
5. | Investment Transactions: |
|
|
| Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2011 were as follows: |
|
|
|
|
|
|
|
|
Fund |
| Purchases |
| Sales |
| ||
|
|
| |||||
Aggressive Strategy Fund |
| $ | 3,459,857 |
| $ | 2,437,511 |
|
Balanced Strategy Fund |
|
| 11,767,477 |
|
| 6,900,965 |
|
Moderate Strategy Fund |
|
| 8,920,026 |
|
| 4,433,527 |
|
Conservative Strategy Fund |
|
| 4,357,545 |
|
| 1,348,839 |
|
|
|
| Contributions and withdrawals of the respective Portfolios for the period ended April 30, 2011 totaled: |
|
|
|
|
|
|
|
|
Fund |
| Contributions |
| Withdrawals |
| ||
|
|
| |||||
Aggressive Strategy Fund |
| $ | 3,308,836 |
| $ | 1,032,606 |
|
Balanced Strategy Fund |
|
| 7,663,393 |
|
| 2,226,506 |
|
Moderate Strategy Fund |
|
| 3,662,837 |
|
| 1,181,206 |
|
Conservative Strategy Fund |
|
| 1,028,734 |
|
| 465,224 |
|
|
|
6. | Federal Tax Information: |
|
|
| At April 30, 2011, 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: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fund |
| Tax Cost |
| Tax |
| Tax |
| Net Unrealized |
| ||||
|
|
|
|
| |||||||||
Aggressive Strategy Fund |
| $ | 6,372,964 |
| $ | 626,669 |
| $ | (15,594 | ) | $ | 611,075 |
|
Balanced Strategy Fund |
|
| 27,119,343 |
|
| 2,298,715 |
|
| (80,363 | ) |
| 2,218,352 |
|
Moderate Strategy Fund |
|
| 31,013,998 |
|
| 2,263,375 |
|
| (236,965 | ) |
| 2,026,410 |
|
Conservative Strategy Fund |
|
| 15,025,104 |
|
| 658,356 |
|
| (178,850 | ) |
| 479,506 |
|
|
|
HSBC INVESTOR FAMILY OF FUNDS | 35 |
|
HSBC WORLD SELECTION FUNDS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
The tax character of dividends paid by the World Selection Funds as of the latest tax year ended October 31, 2010 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid from |
| ||||||||||
|
|
| |||||||||||
|
| Ordinary |
| Net |
| Total |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Aggressive Strategy Fund |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|
Balanced Strategy Fund |
|
| 136,101 |
|
| — |
|
| 136,101 |
|
| 136,101 |
|
Moderate Strategy Fund |
|
| 682,988 |
|
| — |
|
| 682,988 |
|
| 682,988 |
|
Conservative Strategy Fund |
|
| 235,347 |
|
| — |
|
| 235,347 |
|
| 235,347 |
|
|
|
|
| ||
| (1) | Total dividends paid may differ from the amount reported in the Statetment of Changes in Net Assets because dividends are recognized when actually paid for tax purposes. |
|
|
|
| As of the latest tax year ended October 31, 2010, the components of accumulated earnings/(deficit) on a tax basis for the World Selection Funds were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Undistributed |
| Undistributed |
| Accumulated |
| Accumulated |
| Unrealized |
| Total |
| ||||||
|
|
|
|
|
|
|
| ||||||||||||
Aggressive Strategy Fund |
| $ | 20,370 |
| $ | — |
| $ | 20,370 |
| $ | (1,154,845 | ) | $ | 1,130,841 |
| $ | (3,634 | ) |
Balanced Strategy Fund |
|
| 496,268 |
|
| — |
|
| 496,268 |
|
| (2,994,043 | ) |
| 3,129,607 |
|
| 631,832 |
|
Moderate Strategy Fund |
|
| 109,080 |
|
| — |
|
| 109,080 |
|
| (2,722,436 | ) |
| 3,011,947 |
|
| 398,591 |
|
Conservative Strategy Fund |
|
| 46,886 |
|
| — |
|
| 46,886 |
|
| (600,432 | ) |
| 922,648 |
|
| 369,102 |
|
|
|
|
| ||
| (1) | The difference 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 investments from real estate investment trusts. |
|
|
|
| As of the latest tax year ended October 31, 2010, 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. |
|
|
|
|
|
|
|
|
Fund |
| Amount |
| Expires |
| ||
|
|
| |||||
Aggressive Strategy Fund |
| $ | 26,859 |
|
| 2016 |
|
Aggressive Strategy Fund |
|
| 1,127,986 |
|
| 2017 |
|
Balanced Strategy Fund |
|
| 2,994,043 |
|
| 2017 |
|
Moderate Strategy Fund |
|
| 2,722,436 |
|
| 2017 |
|
Conservative Strategy Fund |
|
| 600,432 |
|
| 2017 |
|
|
|
| During the latest tax year ended October 31, 2010, the following Funds utilized capital loss carryforwards to offset capital gains realized: |
|
|
|
|
|
Fund |
| Amount |
| |
|
| |||
Aggressive Strategy Fund |
| $ | 884,978 |
|
Balanced Strategy Fund |
|
| 2,306,769 |
|
Moderate Strategy Fund |
|
| 2,545,342 |
|
Conservative Strategy Fund |
|
| 901,943 |
|
|
|
| The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) was enacted on December 22, 2010. The RIC Modernization Act makes changes to several tax rules impacting the Funds. In general, the provisions of the RIC Modernization Act will be effective for the Funds’ fiscal year ending October 31, 2012. Although the RIC Modernization Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers, if any, may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers. Relevant information regarding the impact of the RIC Modernization Act on a Fund, if any, will be contained within the “Federal Taxes” section of the financial statement notes for the fiscal year ending October 31, 2012. |
|
|
36 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
|
|
| Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), generally requires that a majority of the trustees of a mutual fund who are not parties to an investment advisory agreement for the fund or “interested persons” of the fund, as defined in the 1940 Act (the “Independent Trustees”) review and approve the investment advisory agreement at an in person meeting for an initial period of up to two years and thereafter on an annual basis. A summary of the material factors considered by the Independent Trustees and the Boards of Trustees (the “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (each, a “Trust”) in connection with approving investment advisory and sub-advisory agreements for the series of the Trusts (each, a “Fund”) during the semi-annual period ended April 30, 2011 and the conclusions the Independent Trustees and Board made as a result of those considerations are set forth below. | |
|
| |
| I. Annual Continuation of Advisory and Sub-Advisory Agreements | |
|
| |
| The Board met in person on December 7, 2010 and the Contracts and Expense Committee thereof, which consists of the Independent Trustees of the Trusts (the “Contracts Committee”), met on November 22 and December 6, 2010 to consider, among other things: | |
|
|
|
| • | the approval of the continuation of the: (i) Investment Advisory Contracts and related Supplements (“Advisory Contracts”) between the Trusts and HSBC Global Asset Management (USA) Inc. (the “Adviser”) and (ii) Sub-Advisory Agreements (“Sub-Advisory Contracts”) between the Adviser and each investment sub-adviser (“Sub-Adviser”) to one or more Funds; and |
|
|
|
| • | the approval of the continuation of certain other ancillary agreements to which the Adviser is a party that obligate the Adviser to provide the Funds with administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (each, an “Ancillary Agreement”). |
|
| |
| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Advisory Contracts, Sub-Advisory Contracts and Ancillary Agreements (collectively, the “Agreements”). This information included, among other things, information about: (i) the services that the Adviser and Sub-Advisers provide; (ii) the personnel who provide such services; (iii) investment performance; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc.; (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 Contracts 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 their fiduciary obligations under Section 15(c) of the 1940 Act. | |
|
| |
| On November 22, 2010, the Contracts Committee convened and its members reviewed the information provided in advance of the meeting and discussed, among other things: (i) the Ancillary Agreements; (ii) the Trusts’ arrangements with the Sub-Advisers and the Funds advised by the Sub-Advisers; and (iii) the Adviser’s investment advisory arrangements with respect to the World Selection Funds. At the conclusion of the meeting, the Committee requested certain additional information from the Adviser with respect to the services provided or proposed to be provided under the Ancillary Agreements, among other matters. The Contracts Committee also convened on December 6, 2010 to discuss, among other things: (i) the Adviser’s advisory services with respect to the Funds that are money market funds (“Money Market Funds”); (ii) the Adviser’s profitability; and (iii) the Adviser’s response to the follow-up questions posed by the Contracts Committee following the November 22, 2010 Contracts Committee meeting. Following the December 6 Contracts Committee meeting, the members of the Contracts Committee determined to recommend to the Board, including the Independent Trustees, that the Agreements be continued for an additional one-year period. | |
|
| |
| At the in-person meeting held on December 7, 2010, the Board, including the Independent Trustees, reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the previous deliberations and recommendation of the Contracts Committee. As a result of this process, the Board and Independent Trustees determined to approve the continuation of the Agreements with respect to each 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 Independent Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 37 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| the Funds, as well as the quality and experience of the Adviser’s personnel. In this regard, the Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit with respect to the World Selection Funds and the equity Funds, as well as the capabilities and performance of the Adviser’s portfolio management and credit review teams with respect to the Money Market Funds. The Independent Trustees also considered the nature, quality and extent of the administrative support services that the Adviser provides to the Funds, including the Adviser’s oversight and management of the Funds’ other service providers. |
|
|
| The Independent Trustees also took note of: (i) the long-term relationship between the Adviser and the Funds; (ii) the Adviser’s reputation and financial condition; and (iii) the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. With respect to the Money Market Funds, the Independent Trustees considered the financial support the Adviser and its affiliates have afforded the Money Market Funds, in terms of both the actions taken with respect to structured investment vehicle investments in 2008 and the fee waivers and reimbursements made to maintain a non-negative yield for the Money Market Funds more recently. In addition, the Independent Trustees considered the Adviser’s performance in fulfilling its responsibilities for overseeing its own and the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. |
|
|
| The Independent Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide to their respective Funds. In this regard, the Independent Trustees considered the investment performance and the portfolio risk characteristics achieved by the Sub-Advisers and the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, among other factors. In the context of the HSBC Investor International Equity Portfolio (“International Equity Portfolio” or “Portfolio”), the Independent Trustees considered that, although they were not satisfied with the performance of the Portfolio, the Adviser had taken steps to address the Portfolio’s performance, including proposing the approval of Lord, Abbett & Co. LLC (“Lord Abbett”) to replace AllianceBernstein L.P. (“AllianceBernstein”) as investment sub-adviser to the Portfolio at the Board meeting held on December 7, and that AllianceBernstein’s services should be evaluated on the basis that AllianceBernstein likely would be replaced by Lord Abbett early in 2011. |
|
|
| Based on these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers, and that the services provided supported continuance of the Agreements. |
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered the investment performance of each Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. In the case of the International Equity Portfolio, as noted above, the Independent Trustees considered that the Adviser had taken steps to address performance that the Independent Trustees did not deem satisfactory, including proposing that Lord Abbett become the investment sub-adviser of the Fund in place of AllianceBernstein. In the context of the Money Market Funds, the Independent Trustees considered the yield support that the Adviser had provided in order for the Money Market Funds to retain non-negative performance. The Independent Trustees determined that the Funds’ investment performance and the Adviser’s actions to improve investment performance, where applicable, supported continuance of the Agreements. |
|
|
| Costs of Services and Profits Realized by the Adviser and Sub-Advisers. The Independent Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. The Independent Trustees considered the Adviser’s profitability and costs, including by means of an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Independent Trustees also considered the advisory fees under the Advisory Contracts and compared those fees to the fees of similar funds, which had been compiled and provided by Lipper Inc. The Independent Trustees determined that the Funds had advisory fees competitive with those of similar funds, noting the resources, expertise and experience provided to the Funds. |
|
|
| The Independent 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 Independent 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. |
|
|
|
|
38 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| With respect to the administrative support services provided by the Adviser, the Independent 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 Independent 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 Independent Trustees also considered information on profitability where provided by the Sub-Advisers. |
|
|
| The Independent Trustees concluded that the advisory fees payable to the Adviser and the Funds’ Sub-Advisers were fair and reasonable in light of the factors set forth above. |
|
|
| Other Relevant Considerations. The Independent Trustees 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 Independent 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 or control the overall operating expenses of those Funds. The Independent 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. |
|
|
| In light of the above considerations and such other factors and information it considered relevant, the Board 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 the continuation of each Agreement. |
|
|
| II. Approval of Sub-Advisory Agreement for the HSBC Investor International Equity Fund |
|
|
| The Valuation and Investment Oversight Committee of the Board (the “Investment Committee”), which consists of the Independent Trustees, and the Board met in person and considered the initial approval of the Investment Sub-Advisory Agreement between the Adviser and Lord Abbett with respect to the International Equity Portfolio on December 6 and 7, 2010, respectively. The HSBC Investor International Equity Fund series of HSBC Advisor Funds Trust and the HSBC Investor Overseas Fund series of HSBC Investor Funds each invests all of its investable assets in the International Equity Portfolio in a master-feeder structure. |
|
|
| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Investment Sub-Advisory Agreement. This information included, among other things, information about: (i) the services that Lord Abbett would provide; (ii) the personnel who would provide such services; (iii) investment performance; (iv) fees that would be received by Lord Abbett, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; and (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the 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 their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| At the meeting of the Investment Committee, the Committee members received a presentation by Lord Abbett and discussed the information presented at and the materials provided in advance of the meeting. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that Lord Abbett replace AllianceBernstein as the Sub-Adviser of the Portfolio. At the meeting of the Board, the Independent Trustees considered the recommendation of the Investment Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the Investment Sub-Advisory Agreement with respect to the Portfolio for an initial term of two years. |
|
|
| The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others: |
|
|
| Nature, Extent, and Quality of Services to be Provided by the Sub-Adviser. The Independent Trustees considered information provided by the Adviser on Lord Abbett’s history, investment selection process, style tilt and flexibility, performance and tracking error. The Independent Trustees considered Lord Abbett’s organizational structure and biographical information on key employees of the firm. The Independent Trustees noted the Adviser’s view that Lord Abbett has |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 39 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
|
| competitive advantages in the strong team dynamic of its core international strategy team members, the risk management framework used in managing portfolios, and the collaboration between the portfolio management team and others within the firm. The Independent Trustees also noted the Adviser’s comparison of Lord Abbett’s investment process to that of AllianceBernstein and the Adviser’s belief that Lord Abbett’s investment process had produced more stable returns over the longer term than that of AllianceBernstein. The Independent Trustees concluded that the nature, extent and quality of the services that Lord Abbett appeared able to provide supported engaging Lord Abbett to be the Portfolio’s Sub-Adviser. | |
|
| |
| Investment Performance of the Sub-Adviser. The Independent Trustees considered Lord Abbett’s performance with respect to its international equity strategy over various time periods, including one, three, five and ten years. The Independent Trustees noted that the firm’s 2009 performance for the international equity strategy had been negatively affected by its fourth quarter results, but that its three year and five year performance had remained strong. The Independent Trustees also noted the consistency of Lord Abbett’s investment performance over the past five calendar years, noting that 2006 was the only year where the firm had underperformed versus the MSCI EAFE Large Cap Core Index. The Independent Trustees also noted that Lord Abbett’s consistent performance was demonstrated by its scoring in the top quartile for relative and absolute risk efficiency during that period. The Independent Trustees concluded that Lord Abbett’s investment performance for its international strategy supported its engagement as Sub-Adviser to the Portfolio. | |
|
| |
| Costs of Services and Profits Realized by the Sub-Adviser. The Independent Trustees considered the proposed fee for providing sub-advisory services to the Portfolio and the fact that the fee was identical to the fee currently paid to AllianceBernstein. The Independent Trustees considered the information presented regarding the competitiveness of the International Equity Portfolio’s advisory fees and the total expense ratios of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund more generally in light of the proposed sub-advisory fee. The Independent Trustees concluded that the fee proposed to be paid to Lord Abbett is fair and reasonable. | |
|
| |
| Other Relevant Considerations. Among other factors, the Independent Trustees considered the needs of the shareholders of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund in terms of investment performance, as determined by the Multimanager team of the Adviser, the Adviser’s efforts to locate one or more investment sub-advisers that had a track record of producing investment performance with the desired attributes, individually or as a group, and the relative difficulty in interesting potential candidates to pursue the sub-advisory relationship with the Portfolio, given its relatively small asset size. The Independent Trustees also considered the extent to which the Portfolio’s expense structure may permit economies of scale to be shared with the Portfolio’s shareholders and the extent to which the Portfolio’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses for the HSBC Investor Overseas Fund in order to reduce or control the overall operating expenses of the Fund. | |
|
| |
| In light of the above considerations and such other factors and information it considered relevant, the Board 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 the proposed Sub-Advisory Agreement with respect to the International Equity Portfolio for an initial term of two years. | |
|
| |
| III. Approval of an Advisory Contract Supplement and Sub-Advisory Agreement for the HSBC Investor Risk Managed Fund | |
|
| |
| On February 28, 2011, the Contracts Committee and the Board met in person to consider the expansion of the HSBC Investor Funds family to include a new series of HSBC Investor Funds, the HSBC Investor Risk Managed Fund (“Risk Managed Fund”) and, in connection therewith, approving: | |
|
|
|
| • | the Advisory Contract between the Adviser and the Trust with respect to the Risk Managed Fund and the related Contract Supplement applicable to the Risk Managed Fund (“RM Advisory Agreement”); |
|
|
|
| • | a Sub-Advisory Agreement between the Adviser and Sinopia Asset Management (“Sinopia”) with respect to the Risk Managed Fund (“RM Sub-Advisory Agreement”); and |
|
|
|
| • | the Trust’s Ancillary Agreements applicable to the Risk Managed Fund |
|
| |
| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the RM Advisory Agreement, the RM Sub-Advisory Agreement and the Ancillary Agreements applicable to the Risk Managed Fund (collectively, the “RM Agreements”). This information included, among other things, information about: (i) the services the Adviser and Sinopia would provide to the Risk Managed Fund; (ii) per- |
|
|
40 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| sonnel who provide such services; (iii) relevant past investment performance of Sinopia; and (iv) fees proposed to be received by the Adviser and Sinopia with respect to the Risk Managed Fund in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Contracts 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 their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| At its meeting, the Contracts Committee reviewed and discussed the information provided in advance of the meeting and received a presentation about Sinopia. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that the RM Agreements be approved with respect to the Risk Managed Fund, subject to the completion by the Funds’ Chief Compliance Officer of his review of Sinopia’s compliance program and final confirmation that the Adviser and Sinopia wished for the sub-advisory fee to be split evenly as proposed. At the meeting of the Board, the Independent Trustees considered the recommendation of the Contracts Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the RM Agreements with respect to the Risk Managed Fund, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program and final confirmation by the Adviser and Sinopia as to the sub-advisory fee. Subsequent to the meeting, the Chief Compliance Officer completed his review and indicated to the Board that he was satisfied with Sinopia’s compliance program and the sub-advisory fee was finalized as proposed. |
|
|
| 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 Sinopia. The Independent Trustees considered the nature, quality and extent of the investment advisory services to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. With respect to the Adviser, the Independent Trustees considered that the services provided would be consistent with those provided to other Funds, and therefore considered the same points as they did in considering the annual renewal of the Advisory Contract in December 2010 as set forth above. |
|
|
| With respect to Sinopia, the Independent Trustees considered the scope of Sinopia’s business and Sinopia’s experience with respect to the proposed investment strategy for the Risk Managed Fund. The Independent Trustees also considered the quality and experience of the personnel proposed to manage the Risk Managed Fund’s assets and information about the past investment performance of an account managed by Sinopia using an investment strategy substantially similar to that proposed for the Risk Managed Fund (the “Performance Information”). |
|
|
| Based upon these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services proposed to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. |
|
|
| Investment Performance of Sinopia. The Independent Trustees considered performance information provided by the Adviser regarding an account managed by Sinopia in accordance with an investment objective and strategy substantially similar to that proposed for the Risk Managed Fund, including how the account in question had performed in both bull and bear markets and how the performance had compared to a benchmark. The Independent Trustees concluded that the investment performance presented supported the initial approval of the RM Sub-Advisory Agreement. |
|
|
| Costs of Proposed Services and Profits to be Realized by the Adviser and Sinopia. The Independent Trustees considered the costs of the proposed services to be provided by the Adviser and Sinopia to the Risk Managed Fund. In this regard, the Independent Trustees considered information pertaining to the proposed advisory fees and the projected total expense ratios as compared to other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. The Independent Trustees also considered certain information on the Adviser’s profitability with respect to its relationship with the Funds that had been presented at the December 7, 2010 meeting of the Board of Trustees, as set forth above. The Independent Trustees concluded that the advisory fees proposed to be payable to the Adviser and Sinopia are fair and reasonable in light of the factors set forth above. |
|
|
| Other Relevant Considerations. The Independent Trustees also considered the extent to which the Risk Managed Fund’s expense structure may permit economies of scale to be shared with the Fund’s shareholders and the extent to which the Risk Managed Fund’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses proposed to be provided by the Adviser with respect to the Funds in order to reduce or control the overall operating expenses of the Fund. |
|
|
HSBC INVESTOR FAMILY OF FUNDS | 41 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| 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 the RM Agreements, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program. |
|
|
42 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC WORLD SELECTION FUNDS |
Table of Shareholder Expenses—as of April 30, 2011 (Unaudited) |
|
|
| As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and/or shareholder servicing fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. |
|
|
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2010 through April 30, 2011. |
|
|
| 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 |
|
|
| $ | 1,146.10 |
|
|
| $ | 7.98 |
|
|
|
| 1.50 | % |
|
|
|
| Class B Shares |
|
| 1,000.00 |
|
|
|
| 1,141.60 |
|
|
|
| 11.95 |
|
|
|
| 2.25 | % |
|
|
|
| Class C Shares |
|
| 1,000.00 |
|
|
|
| 1,142.60 |
|
|
|
| 11.95 |
|
|
|
| 2.25 | % |
|
Balanced Strategy Fund |
|
| Class A Shares |
|
| 1,000.00 |
|
|
|
| 1,123.10 |
|
|
|
| 5.84 |
|
|
|
| 1.11 | % |
|
|
|
| Class B Shares |
|
| 1,000.00 |
|
|
|
| 1,118.40 |
|
|
|
| 9.77 |
|
|
|
| 1.86 | % |
|
|
|
| Class C Shares |
|
| 1,000.00 |
|
|
|
| 1,118.40 |
|
|
|
| 9.77 |
|
|
|
| 1.86 | % |
|
Moderate Strategy Fund |
|
| Class A Shares |
|
| 1,000.00 |
|
|
|
| 1,094.30 |
|
|
|
| 5.50 |
|
|
|
| 1.06 | % |
|
|
|
| Class B Shares |
|
| 1,000.00 |
|
|
|
| 1,090.50 |
|
|
|
| 9.38 |
|
|
|
| 1.81 | % |
|
|
|
| Class C Shares |
|
| 1,000.00 |
|
|
|
| 1,090.50 |
|
|
|
| 9.38 |
|
|
|
| 1.81 | % |
|
Conservative Strategy Fund |
|
| Class A Shares |
|
| 1,000.00 |
|
|
|
| 1,062.70 |
|
|
|
| 6.19 |
|
|
|
| 1.21 | % |
|
|
|
| Class B Shares |
|
| 1,000.00 |
|
|
|
| 1,059.80 |
|
|
|
| 10.01 |
|
|
|
| 1.96 | % |
|
|
|
| Class C Shares |
|
| 1,000.00 |
|
|
|
| 1,059.20 |
|
|
|
| 10.01 |
|
|
|
| 1.96 | % |
|
|
|
|
| ||
* | 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 FAMILY OF FUNDS | 43 |
|
HSBC WORLD SELECTION FUNDS |
Table of Shareholder Expenses—as of April 30, 2011 (Unaudited) (continued) |
|
|
| Hypothetical Example for Comparison Purposes |
|
|
| The table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
|
|
| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| 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 |
|
|
|
| 1,019.29 |
|
|
|
| 5.56 |
|
|
|
| 1.11 | % |
|
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.57 |
|
|
|
| 9.30 |
|
|
|
| 1.86 | % |
|
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.57 |
|
|
|
| 9.30 |
|
|
|
| 1.86 | % |
|
Moderate Strategy Fund |
|
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,019.54 |
|
|
|
| 5.31 |
|
|
|
| 1.06 | % |
|
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.82 |
|
|
|
| 9.05 |
|
|
|
| 1.81 | % |
|
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.82 |
|
|
|
| 9.05 |
|
|
|
| 1.81 | % |
|
Conservative Strategy Fund |
|
| Class A Shares |
|
|
| 1,000.00 |
|
|
|
| 1,018.79 |
|
|
|
| 6.06 |
|
|
|
| 1.21 | % |
|
|
|
| Class B Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.08 |
|
|
|
| 9.79 |
|
|
|
| 1.96 | % |
|
|
|
| Class C Shares |
|
|
| 1,000.00 |
|
|
|
| 1,015.08 |
|
|
|
| 9.79 |
|
|
|
| 1.96 | % |
|
|
|
|
| ||
* | 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). |
|
|
44 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
|
| A Special Meeting of Shareholders |
|
|
| A meeting of shareholders of the HSBC Investor Funds was held on June 15, 2011. At the meeting the shareholders voted and approved the following proposal: |
|
|
| Proposal 1: To elect each of the following six nominees to serve as a Trustee on the Boards of Trustees of the Trusts until his or her successor is duly elected and qualify. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| No. of Shares |
|
| % of Outstanding |
|
| % of Shares |
| ||||||
|
|
|
|
| ||||||||||||
|
|
|
| Marcia L. Beck |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,013,741,245.100 |
|
|
|
| 43.325 | % |
|
|
| 86.413 | % |
|
Withhold |
|
|
| 1,260,049,503.170 |
|
|
|
| 6.812 | % |
|
|
| 13.587 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sylvia Coutinho |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,013,782,283.636 |
|
|
|
| 43.325 | % |
|
|
| 86.413 | % |
|
Withhold |
|
|
| 1,260,008,464.634 |
|
|
|
| 6.812 | % |
|
|
| 13.587 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Susan S. Huang |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,013,758,594.267 |
|
|
|
| 43.325 | % |
|
|
| 86.413 | % |
|
Withhold |
|
|
| 1,260,032,154.003 |
|
|
|
| 6.812 | % |
|
|
| 13.587 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Alan S. Parsow |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,014,028,515.450 |
|
|
|
| 43.326 | % |
|
|
| 86.416 | % |
|
Withhold |
|
|
| 1,259,762,232.820 |
|
|
|
| 6.811 | % |
|
|
| 13.584 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Thomas F. Robards |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,009,688,698.670 |
|
|
|
| 43.303 | % |
|
|
| 86.369 | % |
|
Withhold |
|
|
| 1,264,102,049.600 |
|
|
|
| 6.834 | % |
|
|
| 13.631 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Michael Seely |
|
|
|
|
|
|
|
|
|
|
|
|
Affirmative |
|
|
| 8,014,132,476.900 |
|
|
|
| 43.327 | % |
|
|
| 86.417 | % |
|
Withhold |
|
|
| 1,259,658,271.370 |
|
|
|
| 6.810 | % |
|
|
| 13.583 | % |
|
TOTAL |
|
|
| 9,273,790,748.270 |
|
|
|
| 50.137 | % |
|
|
| 100.000 | % |
|
|
|
HSBC INVESTOR FAMILY OF FUNDS | 45 |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—98.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 3.0% |
|
|
|
|
|
|
|
Goodrich Corp. |
|
| 12,900 |
|
| 1,139,973 |
|
United Technologies Corp. |
|
| 24,300 |
|
| 2,176,794 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,316,767 |
|
|
|
|
|
|
| ||
Air Freight & Logistics – 1.1% |
|
|
|
|
|
|
|
C.H. Robinson Worldwide, Inc. |
|
| 15,400 |
|
| 1,234,772 |
|
|
|
|
|
|
| ||
Auto Components – 1.1% |
|
|
|
|
|
|
|
BorgWarner, Inc. (a) |
|
| 16,200 |
|
| 1,251,288 |
|
|
|
|
|
|
| ||
Automobiles – 1.0% |
|
|
|
|
|
|
|
Ford Motor Co. (a) |
|
| 73,700 |
|
| 1,140,139 |
|
|
|
|
|
|
| ||
Capital Markets – 4.9% |
|
|
|
|
|
|
|
Franklin Resources, Inc. |
|
| 12,500 |
|
| 1,614,000 |
|
Goldman Sachs Group, Inc. |
|
| 11,000 |
|
| 1,661,110 |
|
TD Ameritrade Holding Corp. |
|
| 49,100 |
|
| 1,057,614 |
|
The Charles Schwab Corp. |
|
| 59,100 |
|
| 1,082,121 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,414,845 |
|
|
|
|
|
|
| ||
Chemicals – 0.8% |
|
|
|
|
|
|
|
Ecolab, Inc. |
|
| 17,000 |
|
| 896,920 |
|
|
|
|
|
|
| ||
Communications Equipment – 3.9% |
|
|
|
|
|
|
|
Juniper Networks, Inc. (a) |
|
| 23,200 |
|
| 889,256 |
|
QUALCOMM, Inc. |
|
| 60,600 |
|
| 3,444,504 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,333,760 |
|
|
|
|
|
|
| ||
Computers & Peripherals – 8.4% |
|
|
|
|
|
|
|
Apple, Inc. (a) |
|
| 15,050 |
|
| 5,240,862 |
|
EMC Corp. (a) |
|
| 103,300 |
|
| 2,927,522 |
|
NetApp, Inc. (a) |
|
| 22,700 |
|
| 1,179,946 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,348,330 |
|
|
|
|
|
|
| ||
Construction & Engineering – 1.7% |
|
|
|
|
|
|
|
Fluor Corp. |
|
| 26,900 |
|
| 1,881,386 |
|
|
|
|
|
|
| ||
Diversified Financial Services – 4.9% |
|
|
|
|
|
|
|
CME Group, Inc. |
|
| 3,500 |
|
| 1,035,195 |
|
IntercontinentalExchange, Inc. (a) |
|
| 8,500 |
|
| 1,022,975 |
|
JPMorgan Chase & Co. |
|
| 38,000 |
|
| 1,733,940 |
|
Visa, Inc., Class A |
|
| 22,000 |
|
| 1,718,640 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,510,750 |
|
|
|
|
|
|
| ||
Energy Equipment & Services – 5.5% |
|
|
|
|
|
|
|
FMC Technologies, Inc. (a) |
|
| 47,500 |
|
| 2,207,800 |
|
Halliburton Co. |
|
| 22,700 |
|
| 1,145,896 |
|
Schlumberger Ltd. |
|
| 31,100 |
|
| 2,791,225 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,144,921 |
|
|
|
|
|
|
| ||
Food & Staples Retailing – 1.0% |
|
|
|
|
|
|
|
Costco Wholesale Corp. |
|
| 14,400 |
|
| 1,165,248 |
|
|
|
|
|
|
| ||
Food Products – 1.0% |
|
|
|
|
|
|
|
Green Mountain Coffee Roasters, Inc. (a) |
|
| 16,400 |
|
| 1,098,144 |
|
|
|
|
|
|
| ||
Health Care Equipment & Supplies – 2.3% |
|
|
|
|
|
|
|
Edwards Lifesciences Corp. (a) |
|
| 6,800 |
|
| 587,180 |
|
Intuitive Surgical, Inc. (a) |
|
| 2,500 |
|
| 874,250 |
|
Varian Medical Systems, Inc. (a) |
|
| 15,100 |
|
| 1,060,020 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,521,450 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Health Care Providers & Services – 3.4% |
|
|
|
|
|
|
|
Express Scripts, Inc. (a) |
|
| 53,100 |
|
| 3,012,894 |
|
UnitedHealth Group, Inc. |
|
| 16,900 |
|
| 831,987 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,844,881 |
|
|
|
|
|
|
| ||
Health Care Technology – 1.1% |
|
|
|
|
|
|
|
Cerner Corp. (a) |
|
| 10,000 |
|
| 1,201,800 |
|
|
|
|
|
|
| ||
Hotels, Restaurants & Leisure – 3.6% |
|
|
|
|
|
|
|
Ctrip.com International Ltd. ADR (a) |
|
| 22,900 |
|
| 1,115,688 |
|
Las Vegas Sands Corp. (a) |
|
| 36,800 |
|
| 1,729,968 |
|
Yum! Brands, Inc. |
|
| 22,100 |
|
| 1,185,444 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,031,100 |
|
|
|
|
|
|
| ||
Internet & Catalog Retail – 4.8% |
|
|
|
|
|
|
|
Amazon.com, Inc. (a) |
|
| 14,000 |
|
| 2,751,000 |
|
Priceline.com, Inc. (a) |
|
| 4,830 |
|
| 2,642,058 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,393,058 |
|
|
|
|
|
|
| ||
Internet Software & Services – 4.6% |
|
|
|
|
|
|
|
Baidu, Inc. ADR (a) |
|
| 11,925 |
|
| 1,771,101 |
|
Google, Inc., Class A (a) |
|
| 4,180 |
|
| 2,274,338 |
|
VeriSign, Inc. |
|
| 29,700 |
|
| 1,097,712 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,143,151 |
|
|
|
|
|
|
| ||
IT Services – 4.2% |
|
|
|
|
|
|
|
Cognizant Technology Solutions Corp. (a) |
|
| 56,700 |
|
| 4,700,430 |
|
|
|
|
|
|
| ||
Machinery – 6.4% |
|
|
|
|
|
|
|
Danaher Corp. |
|
| 55,200 |
|
| 3,049,248 |
|
Deere & Co. |
|
| 21,500 |
|
| 2,096,250 |
|
Illinois Tool Works, Inc. |
|
| 33,000 |
|
| 1,927,530 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,073,028 |
|
|
|
|
|
|
| ||
Media – 2.5% |
|
|
|
|
|
|
|
Scripps Networks Interactive, Inc., Class A |
|
| 21,700 |
|
| 1,115,814 |
|
The Walt Disney Co. |
|
| 38,400 |
|
| 1,655,040 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,770,854 |
|
|
|
|
|
|
| ||
Metals & Mining – 2.3% |
|
|
|
|
|
|
|
Cliffs Natural Resources, Inc. |
|
| 14,510 |
|
| 1,359,877 |
|
Walter Energy, Inc. |
|
| 8,900 |
|
| 1,230,158 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,590,035 |
|
|
|
|
|
|
| ||
Oil, Gas & Consumable Fuels – 3.1% |
|
|
|
|
|
|
|
Concho Resources, Inc. (a) |
|
| 10,500 |
|
| 1,121,925 |
|
Occidental Petroleum Corp. |
|
| 20,100 |
|
| 2,297,229 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,419,154 |
|
|
|
|
|
|
| ||
Personal Products – 1.2% |
|
|
|
|
|
|
|
The Estee Lauder Cos., Inc., Class A |
|
| 14,000 |
|
| 1,358,000 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 2.8% |
|
|
|
|
|
|
|
Shire plc ADR |
|
| 17,400 |
|
| 1,621,854 |
|
Mylan, Inc. (a) |
|
| 44,000 |
|
| 1,096,480 |
|
Perrigo Co. |
|
| 3,800 |
|
| 343,368 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,061,702 |
|
|
|
|
|
|
| ||
Road & Rail – 3.0% |
|
|
|
|
|
|
|
Union Pacific Corp. |
|
| 32,100 |
|
| 3,321,387 |
|
|
|
|
|
|
|
|
|
|
46 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR GROWTH PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Semiconductors & Semiconductor Equipment – 2.2% |
|
|
|
|
|
|
|
Altera Corp. |
|
| 28,300 |
|
| 1,378,210 |
|
Texas Instruments, Inc. |
|
| 29,800 |
|
| 1,058,794 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,437,004 |
|
|
|
|
|
|
| ||
Software – 8.9% |
|
|
|
|
|
|
|
Autodesk, Inc. (a) |
|
| 34,800 |
|
| 1,565,304 |
|
Citrix Systems, Inc. (a) |
|
| 21,700 |
|
| 1,830,178 |
|
Intuit, Inc. (a) |
|
| 22,100 |
|
| 1,227,876 |
|
Oracle Corp. |
|
| 89,600 |
|
| 3,230,080 |
|
Salesforce.com, Inc. (a) |
|
| 10,500 |
|
| 1,455,300 |
|
VMware, Inc., Class A (a) |
|
| 6,900 |
|
| 658,467 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,967,205 |
|
|
|
|
|
|
| ||
Specialty Retail – 2.0% |
|
|
|
|
|
|
|
Dollar General Corp. (a) |
|
| 31,800 |
|
| 1,036,362 |
|
O’Reilly Automotive, Inc. (a) |
|
| 21,000 |
|
| 1,240,260 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,276,622 |
|
|
|
|
|
|
| ||
Wireless Telecommunication Services – 1.5% |
|
|
|
|
|
|
|
American Tower Corp., Class A (a) |
|
| 31,600 |
|
| 1,652,996 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 109,501,127 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Investment Company—2.2% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (b) |
|
| 2,419,179 |
|
| 2,419,179 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 2,419,179 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES |
|
|
|
|
| 111,920,306 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $111,461,201. |
|
|
ADR | — American Depositary Receipt |
plc | — Public Limited Company |
|
|
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 47 |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—95.4% |
|
|
|
|
|
|
|
| |||||||
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Belgium – 1.4% |
|
|
|
|
|
|
|
Anheuser-Busch InBev NV |
|
| 9,900 |
|
| 631,194 |
|
|
|
|
|
|
| ||
Brazil – 2.9% |
|
|
|
|
|
|
|
Banco Do Brasil SA |
|
| 21,600 |
|
| 396,922 |
|
Cia de Saneamento Basico do Estado de Sao Paulo ADR |
|
| 5,800 |
|
| 339,416 |
|
Companhia Energetica de Sao Paulo, Preferred B Shares |
|
| 11,500 |
|
| 221,708 |
|
PDG Realty SA |
|
| 58,900 |
|
| 346,801 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,304,847 |
|
|
|
|
|
|
| ||
Canada – 2.9% |
|
|
|
|
|
|
|
Bankers Petroleum Ltd. (a) |
|
| 38,400 |
|
| 336,949 |
|
Canadian Oil Sands Ltd. |
|
| 13,100 |
|
| 452,039 |
|
First Quantum Minerals Ltd. |
|
| 3,700 |
|
| 527,404 |
|
Questerre Energy Corp. (a) |
|
| 18,422 |
|
| 21,272 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,337,664 |
|
|
|
|
|
|
| ||
Cayman Islands – 0.6% |
|
|
|
|
|
|
|
Minth Group Ltd. |
|
| 190,000 |
|
| 292,119 |
|
|
|
|
|
|
| ||
China – 0.6% |
|
|
|
|
|
|
|
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd., Class H (a) |
|
| 109,400 |
|
| 290,193 |
|
|
|
|
|
|
| ||
Denmark – 0.9% |
|
|
|
|
|
|
|
Carlsberg A/S, Class B |
|
| 3,610 |
|
| 428,806 |
|
|
|
|
|
|
| ||
France – 8.2% |
|
|
|
|
|
|
|
Alstom SA |
|
| 6,407 |
|
| 425,998 |
|
AXA SA |
|
| 22,846 |
|
| 512,599 |
|
Credit Agricole SA |
|
| 54,300 |
|
| 903,901 |
|
PPR |
|
| 2,777 |
|
| 496,612 |
|
Safran SA |
|
| 16,534 |
|
| 641,555 |
|
Vinci SA |
|
| 10,988 |
|
| 733,922 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,714,587 |
|
|
|
|
|
|
| ||
Germany – 7.1% |
|
|
|
|
|
|
|
Daimler AG, Registered |
|
| 2,300 |
|
| 176,755 |
|
Deutsche Post AG (a) |
|
| 29,724 |
|
| 586,803 |
|
Deutsche Telekom AG |
|
| 15,906 |
|
| 264,896 |
|
Fresenius SE & Co. KGaA |
|
| 5,893 |
|
| 619,480 |
|
GEA Group AG |
|
| 9,062 |
|
| 328,541 |
|
Henkel AG & Co. KGaA |
|
| 9,444 |
|
| 536,034 |
|
SAP AG |
|
| 11,109 |
|
| 715,598 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,228,107 |
|
|
|
|
|
|
| ||
Greece – 0.6% |
|
|
|
|
|
|
|
Public Power Corp. |
|
| 17,497 |
|
| 289,449 |
|
|
|
|
|
|
| ||
Hong Kong – 2.8% |
|
|
|
|
|
|
|
Guangdong Investment Ltd. |
|
| 542,000 |
|
| 280,561 |
|
Huabao International Holdings Ltd. |
|
| 231,000 |
|
| 342,663 |
|
Hysan Development Co. Ltd. |
|
| 41,000 |
|
| 191,379 |
|
The Wharf Holdings Ltd. |
|
| 60,300 |
|
| 441,030 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,255,633 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Indonesia – 1.9% |
|
|
|
|
|
|
|
PT Bank Negara Indonesia (Persero) Tbk |
|
| 712,500 |
|
| 336,988 |
|
PT Bumi Resources Tbk |
|
| 1,286,000 |
|
| 514,370 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 851,358 |
|
|
|
|
|
|
| ||
Ireland (Republic of) – 1.2% |
|
|
|
|
|
|
|
Accenture plc, Class A |
|
| 9,900 |
|
| 565,587 |
|
|
|
|
|
|
| ||
Israel – 2.2% |
|
|
|
|
|
|
|
Israel Chemicals Ltd. |
|
| 26,937 |
|
| 475,265 |
|
Teva Pharmaceutical Industries Ltd. ADR |
|
| 11,900 |
|
| 544,187 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,019,452 |
|
|
|
|
|
|
| ||
Italy – 3.6% |
|
|
|
|
|
|
|
Enel SpA |
|
| 99,064 |
|
| 706,279 |
|
Intesa Sanpaolo SpA |
|
| 163,164 |
|
| 541,770 |
|
Telecom Italia SpA |
|
| 244,907 |
|
| 368,873 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,616,922 |
|
|
|
|
|
|
| ||
Japan – 12.5% |
|
|
|
|
|
|
|
Asahi Kasei Corp. |
|
| 76,000 |
|
| 519,161 |
|
Bridgestone Corp. |
|
| 26,900 |
|
| 587,090 |
|
Honda Motor Co. Ltd. |
|
| 15,600 |
|
| 613,613 |
|
JX Holdings, Inc. |
|
| 77,900 |
|
| 539,825 |
|
Mitsui & Co. Ltd. |
|
| 31,700 |
|
| 559,733 |
|
Nippon Electric Glass Co. Ltd. |
|
| 36,000 |
|
| 542,885 |
|
Nippon Telegraph & Telephone Corp. |
|
| 7,900 |
|
| 364,803 |
|
NSK Ltd. |
|
| 13,000 |
|
| 114,772 |
|
ORIX Corp. |
|
| 3,530 |
|
| 344,295 |
|
Sony Corp. |
|
| 11,310 |
|
| 315,174 |
|
Sumitomo Corp. |
|
| 45,000 |
|
| 614,242 |
|
The Bank of Yokohama Ltd. |
|
| 120,000 |
|
| 591,862 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,707,455 |
|
|
|
|
|
|
| ||
Luxembourg – 0.8% |
|
|
|
|
|
|
|
ArcelorMittal |
|
| 9,410 |
|
| 346,175 |
|
|
|
|
|
|
| ||
Netherlands – 3.5% |
|
|
|
|
|
|
|
ING Groep NV (a) |
|
| 55,399 |
|
| 730,208 |
|
Koninklijke (Royal) Philips Electronics NV |
|
| 18,141 |
|
| 537,873 |
|
Koninklijke Ahold NV |
|
| 24,343 |
|
| 341,737 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,609,818 |
|
|
|
|
|
|
| ||
Norway – 2.1% |
|
|
|
|
|
|
|
DnB NOR ASA |
|
| 24,069 |
|
| 391,534 |
|
Yara International ASA |
|
| 9,346 |
|
| 547,710 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 939,244 |
|
|
|
|
|
|
| ||
Russian Federation – 0.9% |
|
|
|
|
|
|
|
Gazprom OAO ADR |
|
| 25,400 |
|
| 428,498 |
|
|
|
|
|
|
| ||
Singapore – 3.1% |
|
|
|
|
|
|
|
DBS Group Holdings Ltd. |
|
| 46,000 |
|
| 563,112 |
|
Keppel Corp. Ltd. |
|
| 57,200 |
|
| 556,248 |
|
Singapore Airlines Ltd. |
|
| 27,000 |
|
| 310,664 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,430,024 |
|
|
|
|
|
|
|
|
|
|
48 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INTERNATIONAL EQUITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
South Korea – 3.5% |
|
|
|
|
|
|
|
Daegu Bank |
|
| 19,390 |
|
| 323,951 |
|
Hyundai Mobis |
|
| 2,449 |
|
| 820,600 |
|
KT Corp. ADR |
|
| 11,500 |
|
| 233,450 |
|
Samsung Electronics Co. Ltd. |
|
| 267 |
|
| 222,542 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,600,543 |
|
|
|
|
|
|
| ||
Spain – 1.4% |
|
|
|
|
|
|
|
Abertis Infraestructuras SA |
|
| 27,300 |
|
| 646,698 |
|
|
|
|
|
|
| ||
Sweden – 1.8% |
|
|
|
|
|
|
|
Telefonaktiebolaget LM Ericsson ADR |
|
| 54,400 |
|
| 826,880 |
|
|
|
|
|
|
| ||
Switzerland – 4.1% |
|
|
|
|
|
|
|
Nestle SA |
|
| 7,784 |
|
| 483,350 |
|
Novartis AG |
|
| 9,589 |
|
| 569,375 |
|
Swiss Reinsurance Co. Ltd., Registered |
|
| 5,823 |
|
| 347,104 |
|
Syngenta AG, Registered |
|
| 1,338 |
|
| 473,591 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,873,420 |
|
|
|
|
|
|
| ||
Taiwan – 0.6% |
|
|
|
|
|
|
|
Wistron Corp. |
|
| 161,000 |
|
| 289,943 |
|
|
|
|
|
|
| ||
Thailand – 1.0% |
|
|
|
|
|
|
|
Bangkok Bank Public Co. Ltd., Foreign Registered |
|
| 77,200 |
|
| 439,960 |
|
|
|
|
|
|
| ||
Turkey – 1.0% |
|
|
|
|
|
|
|
Turk Telekomunikasyon AS |
|
| 83,452 |
|
| 434,686 |
|
|
|
|
|
|
| ||
United Kingdom – 22.2% |
|
|
|
|
|
|
|
Anglo American plc |
|
| 11,326 |
|
| 590,256 |
|
Aviva plc |
|
| 43,995 |
|
| 328,289 |
|
Barclays plc |
|
| 122,537 |
|
| 577,721 |
|
BG Group plc |
|
| 29,244 |
|
| 748,963 |
|
British American Tobacco plc |
|
| 9,346 |
|
| 407,542 |
|
Dialog Semiconductor plc (a) |
|
| 10,336 |
|
| 217,291 |
|
GlaxoSmithKline plc ADR |
|
| 14,800 |
|
| 646,168 |
|
Imperial Tobacco Group plc |
|
| 15,757 |
|
| 554,470 |
|
National Grid plc |
|
| 58,678 |
|
| 601,705 |
|
Pearson plc |
|
| 29,400 |
|
| 565,149 |
|
Prudential plc |
|
| 43,811 |
|
| 565,591 |
|
Reed Elsevier plc |
|
| 40,469 |
|
| 358,211 |
|
Tesco plc |
|
| 72,601 |
|
| 489,305 |
|
Tullow Oil plc |
|
| 42,856 |
|
| 1,025,647 |
|
Vedanta Resources plc |
|
| 14,508 |
|
| 563,340 |
|
Vodafone Group plc |
|
| 278,041 |
|
| 796,831 |
|
WPP plc |
|
| 34,887 |
|
| 455,337 |
|
Xstrata plc |
|
| 25,206 |
|
| 640,495 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 10,132,311 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 43,531,573 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Exchange Traded Fund—1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
United States – 1.2% |
|
|
|
|
|
|
|
iShares MSCI Japan Index Fund |
|
| 50,622 |
|
| 533,049 |
|
|
|
|
|
|
| ||
TOTAL EXCHANGE TRADED FUND |
|
|
|
|
| 533,049 |
|
|
|
|
|
|
| ||
Investment Company – 1.5% |
|
|
|
|
|
|
|
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (b) |
|
| 712,670 |
|
| 712,670 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 712,670 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES |
|
|
|
|
| 44,777,292 |
|
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $45,626,877. |
|
|
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, 2011. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 49 |
|
HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (Continued) |
At April 30, 2011, the Portfolio’s open forward foreign currency contracts were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short Contracts |
| Delivery |
| Contract |
| Contract |
| Value |
| Unrealized |
| |||||
|
|
|
|
|
| |||||||||||
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Norwegian Krone |
|
| 05/02/11 |
|
| 27,805 |
|
| 5,268 |
|
| 5,303 |
|
| (35 | ) |
Norwegian Krone |
|
| 05/03/11 |
|
| 45,653 |
|
| 8,707 |
|
| 8,705 |
|
| 2 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
| 13,975 |
|
| 14,008 |
|
| (33 | ) |
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Contracts |
| Delivery |
| Contract |
| Contract |
| Value |
| Unrealized |
| |||||
|
|
|
|
|
| |||||||||||
CURRENCY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Japanese Yen |
|
| 05/06/11 |
|
| 1,108,844 |
|
| 13,602 |
|
| 13,673 |
|
| 71 |
|
Japanese Yen |
|
| 05/06/11 |
|
| 2,358,853 |
|
| 28,936 |
|
| 29,087 |
|
| 151 |
|
Japanese Yen |
|
| 05/06/11 |
|
| 2,415,199 |
|
| 29,627 |
|
| 29,781 |
|
| 154 |
|
Japanese Yen |
|
| 05/06/11 |
|
| 621,205 |
|
| 7,620 |
|
| 7,660 |
|
| 40 |
|
Japanese Yen |
|
| 05/09/11 |
|
| 1,272,431 |
|
| 15,646 |
|
| 15,690 |
|
| 44 |
|
Japanese Yen |
|
| 05/09/11 |
|
| 3,643,443 |
|
| 44,799 |
|
| 44,927 |
|
| 128 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
| 140,230 |
|
| 140,818 |
|
| 588 |
|
|
|
|
|
|
|
|
|
|
|
|
The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2011:
|
|
|
|
|
|
|
Industry |
| Percent of |
| |||
|
| |||||
Commercial Banks |
|
|
| 11.1 | % |
|
Metals & Mining |
|
|
| 7.9 | % |
|
Oil, Gas & Consumable Fuels |
|
|
| 7.8 | % |
|
Chemicals |
|
|
| 6.3 | % |
|
Insurance |
|
|
| 4.7 | % |
|
Pharmaceuticals |
|
|
| 3.9 | % |
|
Electronic Equipment, Instruments & Components |
|
|
| 3.8 | % |
|
Diversified Telecommunication Services |
|
|
| 3.7 | % |
|
Industrial Conglomerates |
|
|
| 2.8 | % |
|
Trading Companies & Distributors |
|
|
| 2.6 | % |
|
Electric Utilities |
|
|
| 2.4 | % |
|
Construction & Engineering |
|
|
| 2.3 | % |
|
Beverages |
|
|
| 2.3 | % |
|
Media |
|
|
| 2.2 | % |
|
Energy Equipment & Services |
|
|
| 2.2 | % |
|
Tobacco |
|
|
| 2.1 | % |
|
Food & Staples Retailing |
|
|
| 1.8 | % |
|
Communications Equipment |
|
|
| 1.8 | % |
|
Auto Parts & Equipment |
|
|
| 1.8 | % |
|
Wireless Telecommunication Services |
|
|
| 1.7 | % |
|
Automobiles |
|
|
| 1.7 | % |
|
Machinery |
|
|
| 1.6 | % |
|
Software |
|
|
| 1.6 | % |
|
Investment Company |
|
|
| 1.5 | % |
|
Transportation Infrastructure |
|
|
| 1.4 | % |
|
Health Care Equipment & Supplies |
|
|
| 1.4 | % |
|
Auto Components |
|
|
| 1.3 | % |
|
Air Freight & Logistics |
|
|
| 1.3 | % |
|
IT Services |
|
|
| 1.2 | % |
|
Exchange Traded Fund |
|
|
| 1.2 | % |
|
Real Estate Management & Development |
|
|
| 1.2 | % |
|
Multiline Retail |
|
|
| 1.1 | % |
|
Food Products |
|
|
| 1.1 | % |
|
Semiconductors & Semiconductor Equipment |
|
|
| 1.0 | % |
|
Diversified Consumer Services |
|
|
| 0.8 | % |
|
Diversified Financial Services |
|
|
| 0.8 | % |
|
Water Utilities |
|
|
| 0.7 | % |
|
Household Durables |
|
|
| 0.7 | % |
|
Airlines |
|
|
| 0.7 | % |
|
Computers & Peripherals |
|
|
| 0.6 | % |
|
|
|
| ||||
Total Investments |
|
|
| 98.1 | % |
|
|
|
|
|
|
|
50 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—98.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 1.8% |
|
|
|
|
|
|
|
BE Aerospace, Inc. (a) |
|
| 82,000 |
|
| 3,164,380 |
|
|
|
|
|
|
| ||
Auto Components – 2.4% |
|
|
|
|
|
|
|
The Goodyear Tire & Rubber Co. (a) |
|
| 234,500 |
|
| 4,256,175 |
|
|
|
|
|
|
| ||
Biotechnology – 2.0% |
|
|
|
|
|
|
|
Alexion Pharmaceuticals, Inc. (a) |
|
| 37,150 |
|
| 3,599,463 |
|
|
|
|
|
|
| ||
Capital Markets – 2.9% |
|
|
|
|
|
|
|
MF Global Holdings Ltd. (a) |
|
| 201,200 |
|
| 1,692,092 |
|
Waddell & Reed Financial, Inc., Class A |
|
| 84,000 |
|
| 3,444,840 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,136,932 |
|
|
|
|
|
|
| ||
Chemicals – 4.3% |
|
|
|
|
|
|
|
Celanese Corp., Series A |
|
| 72,700 |
|
| 3,629,184 |
|
Westlake Chemical Corp. |
|
| 59,225 |
|
| 3,888,121 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 7,517,305 |
|
|
|
|
|
|
| ||
Commercial Banks – 0.6% |
|
|
|
|
|
|
|
First Horizon National Corp. |
|
| 1 |
|
| 11 |
|
First Republic Bank (a) |
|
| 31,480 |
|
| 986,898 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 986,909 |
|
|
|
|
|
|
| ||
Commercial Services & Supplies – 5.0% |
|
|
|
|
|
|
|
FleetCor Technologies, Inc. (a) |
|
| 48,850 |
|
| 1,832,364 |
|
Hertz Global Holdings, Inc. (a) |
|
| 268,800 |
|
| 4,626,048 |
|
Waste Connections, Inc. |
|
| 76,025 |
|
| 2,339,289 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,797,701 |
|
|
|
|
|
|
| ||
Communications Equipment – 2.1% |
|
|
|
|
|
|
|
Brocade Communications Systems, Inc. (a) |
|
| 324,100 |
|
| 2,025,625 |
|
Polycom, Inc. (a) |
|
| 26,750 |
|
| 1,600,452 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,626,077 |
|
|
|
|
|
|
| ||
Containers & Packaging – 3.0% |
|
|
|
|
|
|
|
Crown Holdings, Inc. (a) |
|
| 75,080 |
|
| 2,807,992 |
|
Packaging Corp. of America |
|
| 89,840 |
|
| 2,563,135 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,371,127 |
|
|
|
|
|
|
| ||
Diversified Consumer Services – 1.7% |
|
|
|
|
|
|
|
New Oriental Education & Technology |
|
|
|
|
|
|
|
Group, Inc. ADR (a) |
|
| 24,580 |
|
| 3,063,651 |
|
|
|
|
|
|
| ||
Diversified Financial Services – 1.2% |
|
|
|
|
|
|
|
MSCI, Inc., Class A (a) |
|
| 58,400 |
|
| 2,071,448 |
|
|
|
|
|
|
| ||
Electrical Equipment – 3.5% |
|
|
|
|
|
|
|
AMETEK, Inc. |
|
| 76,400 |
|
| 3,517,456 |
|
Hubbell, Inc., Class B |
|
| 38,300 |
|
| 2,680,617 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,198,073 |
|
|
|
|
|
|
| ||
Electronic Components & Semiconductors – 1.9% |
|
|
|
|
|
|
|
Harman International Industries, Inc. |
|
| 70,400 |
|
| 3,416,512 |
|
|
|
|
|
|
| ||
Food Products – 3.7% |
|
|
|
|
|
|
|
Green Mountain Coffee Roasters, Inc. (a) |
|
| 39,680 |
|
| 2,656,973 |
|
Ralcorp Holdings, Inc. (a) |
|
| 49,560 |
|
| 3,855,768 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,512,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Health Care Equipment & Supplies – 3.7% |
|
|
|
|
|
|
|
Hill-Rom Holdings, Inc. |
|
| 97,320 |
|
| 4,380,373 |
|
IDEXX Laboratories, Inc. (a) |
|
| 26,290 |
|
| 2,140,795 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,521,168 |
|
|
|
|
|
|
| ||
Health Care Providers & Services – 3.3% |
|
|
|
|
|
|
|
Community Health Systems, Inc. (a) |
|
| 80,350 |
|
| 2,469,156 |
|
Coventry Health Care, Inc. (a) |
|
| 85,900 |
|
| 2,771,993 |
|
Skilled Healthcare Group, Inc., Class A (a) |
|
| 48,710 |
|
| 590,365 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,831,514 |
|
|
|
|
|
|
| ||
Hotels, Restaurants & Leisure – 1.6% |
|
|
|
|
|
|
|
Ctrip.com International Ltd. ADR (a) |
|
| 59,700 |
|
| 2,908,584 |
|
|
|
|
|
|
| ||
Internet Software & Services – 1.8% |
|
|
|
|
|
|
|
VeriSign, Inc. |
|
| 83,600 |
|
| 3,089,856 |
|
|
|
|
|
|
| ||
IT Services – 3.3% |
|
|
|
|
|
|
|
Alliance Data Systems Corp. (a) |
|
| 36,300 |
|
| 3,448,500 |
|
Syntel, Inc. |
|
| 44,350 |
|
| 2,425,058 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 5,873,558 |
|
|
|
|
|
|
| ||
Life Sciences Tools & Services – 4.9% |
|
|
|
|
|
|
|
Illumina, Inc. (a) |
|
| 30,250 |
|
| 2,147,145 |
|
Life Technologies Corp. (a) |
|
| 48,100 |
|
| 2,655,120 |
|
Mettler-Toledo International, Inc. (a) |
|
| 20,580 |
|
| 3,856,692 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,658,957 |
|
|
|
|
|
|
| ||
Machinery – 5.3% |
|
|
|
|
|
|
|
Crane Co. |
|
| 74,554 |
|
| 3,720,990 |
|
IDEX Corp. |
|
| 68,700 |
|
| 3,223,404 |
|
Snap-on, Inc. |
|
| 40,350 |
|
| 2,492,420 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 9,436,814 |
|
|
|
|
|
|
| ||
Media – 2.0% |
|
|
|
|
|
|
|
DreamWorks Animation SKG, Inc. (a) |
|
| 71,650 |
|
| 1,898,009 |
|
Lamar Advertising Co., Class A (a) |
|
| 50,700 |
|
| 1,648,764 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,546,773 |
|
|
|
|
|
|
| ||
Metals & Mining – 1.9% |
|
|
|
|
|
|
|
Compass Minerals International, Inc. |
|
| 34,430 |
|
| 3,360,712 |
|
|
|
|
|
|
| ||
Oil, Gas & Consumable Fuels – 10.2% |
|
|
|
|
|
|
|
Consol Energy, Inc. |
|
| 81,080 |
|
| 4,385,617 |
|
Denbury Resources, Inc. (a) |
|
| 142,100 |
|
| 3,207,197 |
|
Ensco International plc ADR |
|
| 62,250 |
|
| 3,711,345 |
|
Massey Energy Co. |
|
| 49,850 |
|
| 3,401,764 |
|
Tesoro Corp. (a) |
|
| 120,750 |
|
| 3,274,740 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 17,980,663 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 1.4% |
|
|
|
|
|
|
|
Elan Corp. plc ADR (a) |
|
| 252,400 |
|
| 2,044,440 |
|
Santarus, Inc. (a) |
|
| 108,140 |
|
| 336,315 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,380,755 |
|
|
|
|
|
|
| ||
Real Estate Investment Trusts (REITs) – 1.5% |
|
|
|
|
|
|
|
Hospitality Properties Trust |
|
| 109,200 |
|
| 2,637,180 |
|
|
|
|
|
|
| ||
Road & Rail – 2.1% |
|
|
|
|
|
|
|
Landstar System, Inc. |
|
| 76,550 |
|
| 3,628,470 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 51 |
|
HSBC INVESTOR OPPORTUNITY PORTFOLIO |
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Semiconductors & Semiconductor Equipment – 4.7% |
|
|
|
|
|
|
|
LSI Corp. (a) |
|
| 403,200 |
|
| 2,955,456 |
|
ON Semiconductor Corp. (a) |
|
| 341,100 |
|
| 3,584,961 |
|
Skyworks Solutions, Inc. (a) |
|
| 56,680 |
|
| 1,783,153 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,323,570 |
|
|
|
|
|
|
| ||
Software – 5.7% |
|
|
|
|
|
|
|
BMC Software, Inc. (a) |
|
| 45,250 |
|
| 2,272,908 |
|
Check Point Software Technologies Ltd. (a) |
|
| 72,450 |
|
| 3,979,678 |
|
Nuance Communications, Inc. (a) |
|
| 186,950 |
|
| 3,869,865 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 10,122,451 |
|
|
|
|
|
|
| ||
Specialty Retail – 1.4% |
|
|
|
|
|
|
|
O’Reilly Automotive, Inc. (a) |
|
| 40,950 |
|
| 2,418,507 |
|
|
|
|
|
|
| ||
Textiles, Apparel & Luxury Goods – 3.6% |
|
|
|
|
|
|
|
Foot Locker, Inc. |
|
| 167,050 |
|
| 3,594,916 |
|
Fossil, Inc. (a) |
|
| 29,450 |
|
| 2,820,721 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,415,637 |
|
|
|
|
|
|
| ||
Trading Companies & Distributors – 1.6% |
|
|
|
|
|
|
|
WESCO International, Inc. (a) |
|
| 44,250 |
|
| 2,741,288 |
|
|
|
|
|
|
| ||
Wireless Telecommunication Services – 2.7% |
|
|
|
|
|
|
|
Finisar Corp. (a) |
|
| 66,410 |
|
| 1,865,457 |
|
NII Holdings, Inc. (a) |
|
| 68,400 |
|
| 2,844,072 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,709,529 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCKS |
|
|
|
|
| 174,304,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Company—1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Northern Institutional Government Select Portfolio, Institutional Shares, 0.01% (b) |
|
| 2,781,151 |
|
| 2,781,151 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 2,781,151 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES |
|
|
|
|
| 177,085,631 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $176,454,639. |
|
|
ADR | — American Depositary Receipt |
plc | — Public Limited Company |
|
|
(a) | Represents non-income producing security. |
| |
(b) | The rate represents the annualized one-day yield that was in effect on April 30, 2011. |
|
|
|
52 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) |
|
|
|
|
|
|
|
|
Common Stocks—95.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Aerospace & Defense – 2.7% |
|
|
|
|
|
|
|
Lockheed Martin Corp. |
|
| 12,400 |
|
| 982,700 |
|
Raytheon Co. |
|
| 13,400 |
|
| 650,570 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,633,270 |
|
|
|
|
|
|
| ||
Auto Components – 1.8% |
|
|
|
|
|
|
|
General Motors Co. (a) |
|
| 33,800 |
|
| 1,084,642 |
|
|
|
|
|
|
| ||
Biotechnology – 3.6% |
|
|
|
|
|
|
|
Amgen, Inc. (a) |
|
| 38,400 |
|
| 2,183,040 |
|
|
|
|
|
|
| ||
Capital Markets – 1.4% |
|
|
|
|
|
|
|
Goldman Sachs Group, Inc. |
|
| 5,700 |
|
| 860,757 |
|
|
|
|
|
|
| ||
Commercial Banks – 2.0% |
|
|
|
|
|
|
|
Wells Fargo & Co. |
|
| 42,700 |
|
| 1,242,997 |
|
|
|
|
|
|
| ||
Commercial Services & Supplies – 1.5% |
|
|
|
|
|
|
|
Pitney Bowes, Inc. |
|
| 36,500 |
|
| 896,440 |
|
|
|
|
|
|
| ||
Communications Equipment – 5.1% |
|
|
|
|
|
|
|
Motorola Mobility Holdings, Inc. (a) |
|
| 55,025 |
|
| 1,433,951 |
|
Motorola Solutions, Inc. (a) |
|
| 36,328 |
|
| 1,666,729 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 3,100,680 |
|
|
|
|
|
|
| ||
Diversified Financial Services – 4.4% |
|
|
|
|
|
|
|
Citigroup, Inc. (a) |
|
| 367,200 |
|
| 1,685,448 |
|
JPMorgan Chase & Co. |
|
| 22,150 |
|
| 1,010,705 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 2,696,153 |
|
|
|
|
|
|
| ||
Energy Equipment & Services – 1.1% |
|
|
|
|
|
|
|
Halliburton Co. |
|
| 13,500 |
|
| 681,480 |
|
|
|
|
|
|
| ||
Food & Staples Retailing – 2.8% |
|
|
|
|
|
|
|
CVS Caremark Corp. |
|
| 31,400 |
|
| 1,137,936 |
|
Kroger Co. (The) |
|
| 21,900 |
|
| 532,389 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 1,670,325 |
|
|
|
|
|
|
| ||
Independent Power Producers & Energy Traders – 1.4% |
|
|
|
|
|
|
|
NRG Energy, Inc. (a) |
|
| 33,800 |
|
| 817,960 |
|
|
|
|
|
|
| ||
Insurance – 17.2% |
|
|
|
|
|
|
|
Aon Corp. |
|
| 38,500 |
|
| 2,008,545 |
|
Genworth Financial, Inc., Class A (a) |
|
| 117,900 |
|
| 1,437,201 |
|
Lincoln National Corp. |
|
| 25,900 |
|
| 808,857 |
|
Loews Corp. |
|
| 34,440 |
|
| 1,524,314 |
|
MetLife, Inc. |
|
| 42,000 |
|
| 1,965,180 |
|
The Hartford Financial Services Group, Inc. |
|
| 43,900 |
|
| 1,271,783 |
|
Unum Group |
|
| 56,100 |
|
| 1,485,528 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 10,501,408 |
|
|
|
|
|
|
| ||
Machinery – 2.0% |
|
|
|
|
|
|
|
Ingersoll-Rand plc |
|
| 23,900 |
|
| 1,206,950 |
|
|
|
|
|
|
| ||
Media – 6.9% |
|
|
|
|
|
|
|
Time Warner, Inc. |
|
| 34,950 |
|
| 1,323,207 |
|
Viacom, Inc., Class B |
|
| 56,500 |
|
| 2,890,540 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,213,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks, continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Value($) |
| ||
|
|
|
| ||||
Metals & Mining – 7.1% |
|
|
|
|
|
|
|
AngloGold Ashanti Ltd. ADR |
|
| 51,527 |
|
| 2,626,846 |
|
Barrick Gold Corp. |
|
| 33,600 |
|
| 1,713,936 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,340,782 |
|
|
|
|
|
|
| ||
Oil, Gas & Consumable Fuels – 14.6% |
|
|
|
|
|
|
|
Apache Corp. |
|
| 19,400 |
|
| 2,587,378 |
|
Canadian Natural Resources Ltd. |
|
| 32,000 |
|
| 1,502,720 |
|
Hess Corp. |
|
| 12,100 |
|
| 1,040,116 |
|
Noble Energy, Inc. |
|
| 13,310 |
|
| 1,281,354 |
|
Occidental Petroleum Corp. |
|
| 12,000 |
|
| 1,371,480 |
|
Talisman Energy, Inc. |
|
| 46,600 |
|
| 1,123,060 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 8,906,108 |
|
|
|
|
|
|
| ||
Pharmaceuticals – 9.9% |
|
|
|
|
|
|
|
Merck & Co., Inc. |
|
| 22,800 |
|
| 819,660 |
|
Pfizer, Inc. |
|
| 138,200 |
|
| 2,896,672 |
|
Sanofi-Aventis ADR |
|
| 58,200 |
|
| 2,300,064 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 6,016,396 |
|
|
|
|
|
|
| ||
Road & Rail – 1.7% |
|
|
|
|
|
|
|
Union Pacific Corp. |
|
| 10,000 |
|
| 1,034,700 |
|
|
|
|
|
|
| ||
Software – 6.7% |
|
|
|
|
|
|
|
CA, Inc. |
|
| 123,500 |
|
| 3,036,865 |
|
Microsoft Corp. |
|
| 40,900 |
|
| 1,064,218 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| 4,101,083 |
|
|
|
|
|
|
| ||
Tobacco – 1.6% |
|
|
|
|
|
|
|
Philip Morris International, Inc. |
|
| 14,200 |
|
| 986,048 |
|
|
|
|
|
|
| ||
TOTAL COMMON STOCK |
|
|
|
|
| 58,174,966 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Investment Company—3.2% |
|
|
|
|
|
|
|
Northern Institutional Government Select Portfolio, Institutional Shares, 0.01% (b) |
|
| 1,944,264 |
|
| 1,944,264 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT COMPANY |
|
|
|
|
| 1,944,264 |
|
|
|
|
|
|
| ||
TOTAL INVESTMENT SECURITIES |
|
|
|
|
| 60,119,230 |
|
|
|
|
|
|
|
|
|
| Percentages indicated are based on net assets of $60,941,551. |
|
|
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, 2011. |
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 53 |
Statements of Assets and Liabilities—as of April 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International |
| Opportunity |
| Value |
| ||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in non-affiliates, at value |
| $ | 111,920,306 |
| $ | 44,777,292 |
| $ | 177,085,631 |
| $ | 60,119,230 |
|
Foreign currency, at value |
|
| — |
|
| 72,605 |
|
| — |
|
| — |
|
Unrealized appreciation on forward foreign currency contracts |
|
| — |
|
| 590 |
|
| — |
|
| — |
|
Dividends receivable |
|
| 36,348 |
|
| 255,608 |
|
| 69,604 |
|
| 24,639 |
|
Receivable for investments sold |
|
| 784,435 |
|
| 823,408 |
|
| 494,059 |
|
| 836,077 |
|
Prepaid expenses and other assets |
|
| 96 |
|
| 15,164 |
|
| 135 |
|
| 52 |
|
|
|
|
|
|
| ||||||||
Total Assets |
|
| 112,741,185 |
|
| 45,944,667 |
|
| 177,649,429 |
|
| 60,979,998 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized depreciation on forward foreign currency contracts |
|
| — |
|
| 35 |
|
| — |
|
| — |
|
Payable for investments purchased |
|
| 1,205,819 |
|
| 253,363 |
|
| 1,053,296 |
|
| — |
|
Accrued expenses and other liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 54,773 |
|
| 32,226 |
|
| 112,195 |
|
| 25,524 |
|
Administration |
|
| 2,271 |
|
| 922 |
|
| 3,576 |
|
| 1,240 |
|
Compliance Services |
|
| 50 |
|
| 20 |
|
| 77 |
|
| 24 |
|
Accounting |
|
| — |
|
| 919 |
|
| — |
|
| 231 |
|
Custodian |
|
| 2,105 |
|
| 28,323 |
|
| 4,782 |
|
| 1,116 |
|
Trustee |
|
| 343 |
|
| 198 |
|
| 473 |
|
| 178 |
|
Other |
|
| 14,623 |
|
| 1,784 |
|
| 20,391 |
|
| 10,134 |
|
|
|
|
|
|
| ||||||||
Total Liabilities |
|
| 1,279,984 |
|
| 317,790 |
|
| 1,194,790 |
|
| 38,447 |
|
|
|
|
|
|
| ||||||||
Applicable to investors’ beneficial interest |
| $ | 111,461,201 |
| $ | 45,626,877 |
| $ | 176,454,639 |
| $ | 60,941,551 |
|
|
|
|
|
|
| ||||||||
Total Investments, at cost |
| $ | 79,871,769 |
| $ | 41,376,120 |
| $ | 130,540,376 |
| $ | 50,267,716 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency, at cost |
| $ | — |
| $ | 71,897 |
| $ | — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
54 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
HSBC INVESTOR PORTFOLIOS
Statements of Operations—For the six months ended April 30, 2011 (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International |
| Opportunity |
| Value |
| ||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends |
| $ | 338,144 |
| $ | 583,823 |
| $ | 736,798 |
| $ | 379,390 |
|
Foreign tax withholding |
|
| (313 | ) |
| (59,469 | ) |
| — |
|
| (3,411 | ) |
|
|
|
|
|
| ||||||||
Total Investment Income |
|
| 337,831 |
|
| 524,354 |
|
| 736,798 |
|
| 375,979 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Management |
|
| 301,028 |
|
| 188,737 |
|
| 630,984 |
|
| 148,274 |
|
Administration fees |
|
| 13,327 |
|
| 5,380 |
|
| 19,960 |
|
| 7,149 |
|
Accounting |
|
| 22,584 |
|
| 39,810 |
|
| 22,580 |
|
| 22,161 |
|
Compliance Services |
|
| 329 |
|
| 133 |
|
| 482 |
|
| 172 |
|
Custodian |
|
| 5,110 |
|
| 28,484 |
|
| 9,732 |
|
| 2,824 |
|
Printing |
|
| 226 |
|
| 99 |
|
| 319 |
|
| 116 |
|
Professional |
|
| 4,717 |
|
| 3,350 |
|
| 7,051 |
|
| 2,059 |
|
Trustee |
|
| 1,352 |
|
| 685 |
|
| 1,956 |
|
| 719 |
|
Other |
|
| 1,493 |
|
| 2,387 |
|
| 2,064 |
|
| 775 |
|
|
|
|
|
|
| ||||||||
Total Expenses |
|
| 350,166 |
|
| 269,065 |
|
| 695,128 |
|
| 184,249 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss) |
|
| (12,335 | ) |
| 255,289 |
|
| 41,670 |
|
| 191,730 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Realized/Unrealized Gains (Losses) from Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from investment securities and foreign currency transactions |
|
| 6,244,997 |
|
| 3,089,020 |
|
| 13,813,276 |
|
| 177,193 |
|
Net realized gains (losses) from forward foreign currency contracts |
|
| — |
|
| (44,425 | ) |
| — |
|
| — |
|
Payments by affiliates for the violation of certain investment policies and limitations |
|
| — |
|
| 5,235 |
|
| — |
|
| — |
|
Change in unrealized appreciation/depreciation on investments |
|
| 12,596,447 |
|
| 1,771,202 |
|
| 28,345,662 |
|
| 8,407,254 |
|
|
|
|
|
|
| ||||||||
Net realized/unrealized gains (losses) from investments |
|
| 18,841,444 |
|
| 4,821,032 |
|
| 42,158,938 |
|
| 8,584,447 |
|
|
|
|
|
|
| ||||||||
Change In Net Assets Resulting From Operations |
| $ | 18,829,109 |
| $ | 5,076,321 |
| $ | 42,200,608 |
| $ | 8,776,177 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 55 |
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Growth |
| International Equity |
| ||||||||
|
| For the six |
| For the |
| For the six |
| For the |
| ||||
Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (loss) |
| $ | (12,335 | ) | $ | (34,003 | ) | $ | 255,289 |
| $ | 3,219,961 |
|
Net realized gains (losses) from investments |
|
| 6,244,997 |
|
| 4,569,747 |
|
| 3,044,595 |
|
| (24,730,645 | ) |
Payments by affiliates for the violation of certain investment policies and limitations |
|
| — |
|
| — |
|
| 5,235 |
|
| — |
|
Change in unrealized appreciation/depreciation on investments |
|
| 12,596,447 |
|
| 12,751,375 |
|
| 1,771,202 |
|
| 13,409,621 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 18,829,109 |
|
| 17,287,119 |
|
| 5,076,321 |
|
| (8,101,063 | ) |
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 8,636,280 |
|
| 10,138,077 |
|
| 4,863,572 |
|
| 15,234,642 |
|
Value of withdrawals |
|
| (14,754,989 | ) |
| (16,837,279 | ) |
| (6,130,610 | ) |
| (182,464,190 | ) |
|
|
|
|
|
| ||||||||
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (6,118,709 | ) |
| (6,699,202 | ) |
| (1,267,038 | ) |
| (167,229,548 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 12,710,400 |
|
| 10,587,917 |
|
| 3,809,283 |
|
| (175,330,611 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 98,750,801 |
|
| 88,162,884 |
|
| 41,817,594 |
|
| 217,148,205 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 111,461,201 |
| $ | 98,750,801 |
| $ | 45,626,877 |
| $ | 41,817,594 |
|
|
|
|
|
|
|
|
|
|
56 | 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) |
| $ | 41,670 |
| $ | (461,786 | ) | $ | 191,730 |
| $ | 429,922 |
|
Net realized gains (losses) from investments |
|
| 13,813,276 |
|
| 17,836,311 |
|
| 177,193 |
|
| 1,033,776 |
|
Change in unrealized appreciation/depreciation on investments |
|
| 28,345,662 |
|
| 17,016,734 |
|
| 8,407,254 |
|
| 5,043,263 |
|
|
|
|
|
|
| ||||||||
Change in net assets resulting from operations |
|
| 42,200,608 |
|
| 34,391,259 |
|
| 8,776,177 |
|
| 6,506,961 |
|
|
|
|
|
|
| ||||||||
Proceeds from contributions |
|
| 9,182,478 |
|
| 10,306,391 |
|
| 7,152,248 |
|
| 6,794,273 |
|
Value of withdrawals |
|
| (14,329,999 | ) |
| (35,044,419 | ) |
| (6,729,526 | ) |
| (11,244,738 | ) |
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in net assets resulting from transactions in investors’ beneficial interest |
|
| (5,147,521 | ) |
| (24,738,028 | ) |
| 422,722 |
|
| (4,450,465 | ) |
|
|
|
|
|
| ||||||||
Change in net assets |
|
| 37,053,087 |
|
| 9,653,231 |
|
| 9,198,899 |
|
| 2,056,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
| 139,401,552 |
|
| 129,748,321 |
|
| 51,742,652 |
|
| 49,686,156 |
|
|
|
|
|
|
| ||||||||
End of period |
| $ | 176,454,639 |
| $ | 139,401,552 |
| $ | 60,941,551 |
| $ | 51,742,652 |
|
|
|
|
|
|
|
|
|
|
See notes to financial statements. | HSBC INVESTOR PORTFOLIOS | 57 |
|
HSBC INVESTOR PORTFOLIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ratio/Supplementary Data |
| ||||||||||||||
|
|
|
| ||||||||||||||||
|
| Total |
| Net Assets |
| Ratio of Net |
| Ratio of Net |
| Ratio of |
| Portfolio |
| ||||||
GROWTH PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | )%(d) |
| 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 | % |
Year Ended October 31, 2010 |
|
| 20.34 | % |
| 98,751 |
|
| 0.68 | % |
| (0.04 | )% |
| 0.68 | % |
| 89.14 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 19.46 | % |
| 111,461 |
|
| 0.66 | % |
| 0.34 | % |
| 0.66 | % |
| 27.13 | % |
INTERNATIONAL EQUITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | % |
Year Ended October 31, 2010 |
|
| 6.15 | % |
| 41,818 |
|
| 0.87 | % |
| 2.07 | % |
| 0.87 | % |
| 63.35 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 12.34 | %(e) |
| 45,627 |
|
| 1.27 | % |
| 1.20 | % |
| 1.27 | % |
| 129.61 | %(f) |
OPPORTUNITY PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | % |
Year Ended October 31, 2010 |
|
| 28.74 | % |
| 139,402 |
|
| 0.89 | % |
| (0.35 | )% |
| 0.89 | % |
| 67.62 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 30.54 | % |
| 176,455 |
|
| 0.88 | % |
| 0.05 | % |
| 0.88 | % |
| 29.52 | % |
VALUE PORTFOLIO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | % |
Year Ended October 31, 2010 |
|
| 13.56 | % |
| 51,743 |
|
| 0.67 | % |
| 0.87 | % |
| 0.67 | % |
| 26.36 | % |
Six Months Ended April 30, 2011 (Unaudited) |
|
| 16.73 | % |
| 60,942 |
|
| 0.65 | % |
| 0.68 | % |
| 0.65 | % |
| 10.48 | % |
|
|
(a) | Not annualized for period less than one year. |
|
|
(b) | Annualized for periods less than one year. |
|
|
(c) | Excluding fee reductions. If such fee reductions had not occurred, the ratio would have been as indicated. |
|
|
(d) | 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%. |
|
|
(e) | During the period ended April 30, 2011, amounts were reimbursed to the HSBC Investor International Equity Portfolio in connection with violations of certain investment policies and limitations. The corresponding impact to the total return was 0.01%. |
|
|
(f) | Effective at the close of business on January 12, 2011, the HSBC Investor International Equity Portfolio changed its subadviser from AllianceBernstein L.P. to Lord, Abbett & Co. LLC. As a result, the portfolio turnover rate was higher than historic rates. |
|
|
|
58 | HSBC INVESTOR PORTFOLIOS | See notes to financial statements. |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (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 that risk of loss to be remote.
|
|
2. | Significant Accounting Policies: |
The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make 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 available to be 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 in Note 3 below.
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.
|
|
HSBC INVESTOR PORTFOLIOS | 59 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
Expense Allocations:
Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among the applicable 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.
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 Fund, including the primary underlying risk exposures related to each instrument type.
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. For the period ended April 30, 2011, the International Equity Portfolio entered into foreign currency contracts in connection with planned purchases and sales of securities. The contract amount of forward foreign currency contracts outstanding was $0.26 million as of April 30, 2011. The monthly average contract amount for these contracts was $0.04 million.
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, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. 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, 2011, the Portfolios did not hold any futures contracts.
|
|
60 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| 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, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Derivatives |
| Liability Derivatives |
| ||||||
|
|
|
| ||||||||
Primary Risk Exposure |
| Statements of Assets |
| Total Fair |
| Statements of Assets |
| Total Fair |
| ||
|
|
|
|
| |||||||
Foreign Currency Contracts |
| Unrealized appreciation on forward foreign currency contracts |
| $ | 590 |
| Unrealized depreciation on forward foreign currency contracts |
| $ | 35 |
|
|
|
|
|
|
| ||
|
| * | 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, 2011: |
|
|
|
|
|
|
|
|
|
|
Primary Risk Exposure |
| Location of |
| Realized |
| Change in Unrealized |
| ||
|
|
|
| ||||||
Foreign Currency Contracts |
| Net realized gains (losses) on forward foreign currency contracts/Change in unrealized appreciation/depreciation on investments |
| ($ | 44,425 | ) | $ | 555 |
|
|
|
3. | Investment Valuation Summary: |
|
|
| The valuation techniques employed by the Portfolios, as described below, 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 the 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. |
|
|
| 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 and are typically categorized as Level 1 in the fair value hierarchy. |
|
|
| Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price and are typically categorized as Level 1 in the fair value hierarchy. 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 and are typically categorized as Level 2 in the fair value hierarchy. |
|
|
HSBC INVESTOR PORTFOLIOS | 61 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| Shares of exchange traded funds and closed-end registered investment companies are valued in the same manner as other equity securities and are typically categorized as Level 1 in the fair value hierarchy. Mutual funds are valued at their net asset values, as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy. |
|
|
| Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded and are typically categorized as Level 1 in the fair value hierarchy. |
|
|
| Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange and are typically categorized as Level 2 in the fair value hierarchy. |
|
|
| Repurchase agreements are valued at original cost and are typically categorized as Level 2 in the fair value hierarchy. |
|
|
| Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event, are valued pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees (“Procedures”). Depending on the source and relative significance of valuation inputs, these instruments may be classified as Level 2 or Level 3 in the fair value hierarchy. 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 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 and are typically categorized as Level 2 in the fair value hierarchy. The valuation of these securities may represent a transfer between Levels 1 and 2. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the International Equity Portfolio to a significant extent. |
|
|
| For the period ended April 30, 2011, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value. |
|
|
| The following is a summary of the valuation inputs used as of April 30, 2011 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) |
| $ | 109,501,127 |
| $ | — |
| $ | — |
| $ | 109,501,127 |
|
Investment Company |
|
| 2,419,179 |
|
| — |
|
| — |
|
| 2,419,179 |
|
|
|
|
|
|
| ||||||||
Total Investment Securities |
| $ | 111,920,306 |
| $ | — |
| $ | — |
| $ | 111,920,306 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Equity Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (b) |
| $ | 43,531,573 |
| $ | — |
| $ | — |
| $ | 43,531,573 |
|
Exchange Traded Funds |
|
| 533,049 |
|
| — |
|
| — |
|
| 533,049 |
|
Investment Company |
|
| 712,670 |
|
| — |
|
| — |
|
| 712,670 |
|
|
|
|
|
|
| ||||||||
Total Investment Securities |
| $ | 44,777,292 |
| $ | — |
| $ | — |
| $ | 44,777,292 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments (c): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Foreign Currency Contracts |
|
| — |
|
| 555 |
|
| — |
|
| 555 |
|
|
|
|
|
|
| ||||||||
Total Investments |
| $ | 44,777,292 |
| $ | 555 |
| $ | — |
| $ | 44,777,847 |
|
|
|
|
|
|
|
|
|
62 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LEVEL 1 |
| LEVEL 2 |
| LEVEL 3 |
| Total |
| ||||
|
|
|
|
|
| ||||||||
Opportunity Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (a) |
| $ | 174,304,480 |
| $ | — |
| $ | — |
| $ | 174,304,480 |
|
Investment Company |
|
| 2,781,151 |
|
| — |
|
| — |
|
| 2,781,151 |
|
|
|
|
|
|
| ||||||||
Total Investment Securities |
| $ | 177,085,631 |
| $ | — |
| $ | — |
| $ | 177,085,631 |
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Value Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks (a) |
| $ | 58,174,966 |
| $ | — |
| $ | — |
| $ | 58,174,966 |
|
Investment Company |
|
| 1,944,264 |
|
| — |
|
| — |
|
| 1,944,264 |
|
|
|
|
|
|
| ||||||||
Total Investment Securities |
| $ | 60,119,230 |
| $ | — |
| $ | — |
| $ | 60,119,230 |
|
|
|
|
|
|
|
|
|
|
| ||
| (a) | For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments. |
|
|
|
| (b) | For detailed country descriptions, see the accompanying Schedules of Portfolio Investments. |
|
|
|
| (c) | Other financial instruments would include any derivative instruments, such as forward foreign currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment. |
|
|
| The Trust recognizes significant transfers between fair value hierarchy levels at the reporting period end. The only significant transfers between Levels 1, 2 or 3 as of April 30, 2011 are related to the use of the systematic valuation model to value foreign securities in the International Equity Portfolio. |
|
|
| In May 2011, the Financial Accounting Standards Board issued an Accounting Standards Update No. 2011-04 (“ASU 2011-04”), “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined. |
|
|
4. | Related Party Transactions and Other Agreements: |
|
|
| 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. Winslow Capital Management, Inc. (“Winslow”), Lord, Abbett & Co. LLC (“Lord, Abbett”), Westfield Capital Management Company, L.P. (“Westfield”) and NWQ Investment Management Company, LLC (“NWQ”) serve as subadvisers 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. Effective at the close of business on January 12, 2011, Lord, Abbett replaced AllianceBernstein L.P. (“AllianceBernstein”) as subadviser to the International Equity Portfolio. |
|
|
| For their services, the Investment Adviser and 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%. |
|
|
HSBC INVESTOR PORTFOLIOS | 63 |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| For their services, the Investment Adviser and Lord, Abbett (and AllianceBernstein, prior to January 12, 2011) 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 |
|
| 0.790% |
|
In excess of $50 million but not exceeding $100 million |
|
| 0.700% |
|
In excess of $100 million |
|
| 0.610% |
|
|
|
| For their services, the Investment Adviser and Westfield 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 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% |
|
|
|
| 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 HSBC Investor 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. |
|
|
| During the period ended April 30, 2011, Lord, Abbett reimbursed $5,235 to the International Equity Portfolio related to violations of certain investment policies and limitations. The impact to the total return is disclosed in the Financial Highlights. |
|
|
| Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi”), 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 is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02%, which is retained by HSBC. |
|
|
| Under a Compliance Services Agreement between the Portfolio Trust and the other HSBC Investor Funds (the “Trusts”) and Citi (the “CCO Agreement”), Citi makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi 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 $137,025 for the period ended April 30, 2011, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Services.” Citi pays the salary and other compensation earned by individuals as employees of Citi. |
|
|
64 | HSBC INVESTOR PORTFOLIOS |
|
HSBC INVESTOR PORTFOLIOS |
Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued) |
|
|
| Fund Accounting: |
|
|
| Citi provides fund accounting services for the Portfolio Trust. For its services to the Portfolios, Citi receives an annual fee per portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly. |
|
|
| Independent Trustees: |
|
|
| Each non-interested Trustee is compensated with a $63,000 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. Any emeritus Trustees will be compensated for their services in accordance with a predetermined portion of the non-interested Trustee compensation schedule approved by the Board of Trustees. |
|
|
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, 2011 were as follows: |
|
|
|
|
|
|
|
|
Portfolio Name |
| Purchases |
| Sales |
| ||
|
|
| |||||
Growth Portfolio |
| $ | 28,253,407 |
| $ | 34,245,625 |
|
International Equity Portfolio |
|
| 53,773,544 |
|
| 54,990,084 |
|
Opportunity Portfolio |
|
| 45,561,541 |
|
| 48,726,052 |
|
Value Portfolio |
|
| 6,543,440 |
|
| 5,670,279 |
|
|
|
| For the period ended April 30, 2011, there were no long-term U.S. Government securities held by the Portfolio Trust. |
|
|
6. | Federal Income Tax Information: |
|
|
| At April 30, 2011, 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 |
| $ | 80,411,230 |
| $ | 32,360,739 |
| $ | (851,663 | ) | $ | 31,509,076 |
|
International Equity Portfolio |
|
| 41,578,264 |
|
| 4,167,364 |
|
| (968,336 | ) |
| 3,199,028 |
|
Opportunity Portfolio |
|
| 133,174,429 |
|
| 51,906,147 |
|
| (7,994,945 | ) |
| 43,911,202 |
|
Value Portfolio |
|
| 50,434,347 |
|
| 12,918,165 |
|
| (3,233,282 | ) |
| 9,684,883 |
|
|
|
* | The difference between book-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales. |
|
|
HSBC INVESTOR PORTFOLIOS | 65 |
|
HSBC INVESTOR FAMILY OF FUNDS |
|
|
| Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), generally requires that a majority of the trustees of a mutual fund who are not parties to an investment advisory agreement for the fund or “interested persons” of the fund, as defined in the 1940 Act (the “Independent Trustees”) review and approve the investment advisory agreement at an in person meeting for an initial period of up to two years and thereafter on an annual basis. A summary of the material factors considered by the Independent Trustees and the Boards of Trustees (the “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (each, a “Trust”) in connection with approving investment advisory and sub-advisory agreements for the series of the Trusts (each, a “Fund”) during the semi-annual period ended April 30, 2011 and the conclusions the Independent Trustees and Board made as a result of those considerations are set forth below. |
|
|
| I. Annual Continuation of Advisory and Sub-Advisory Agreements |
|
|
| The Board met in person on December 7, 2010 and the Contracts and Expense Committee thereof, which consists of the Independent Trustees of the Trusts (the “Contracts Committee”), met on November 22 and December 6, 2010 to consider, among other things: |
|
|
|
|
|
| • | the approval of the continuation of the: (i) Investment Advisory Contracts and related Supplements (“Advisory Contracts”) between the Trusts and HSBC Global Asset Management (USA) Inc. (the “Adviser”) and (ii) Sub-Advisory Agreements (“Sub-Advisory Contracts”) between the Adviser and each investment sub-adviser (“Sub-Adviser”) to one or more Funds; and |
|
|
|
|
|
| • | the approval of the continuation of certain other ancillary agreements to which the Adviser is a party that obligate the Adviser to provide the Funds with administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (each, an “Ancillary Agreement”). |
|
|
| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Advisory Contracts, Sub-Advisory Contracts and Ancillary Agreements (collectively, the “Agreements”). This information included, among other things, information about: (i) the services that the Adviser and Sub-Advisers provide; (ii) the personnel who provide such services; (iii) investment performance; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc.; (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 Contracts 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 their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| On November 22, 2010, the Contracts Committee convened and its members reviewed the information provided in advance of the meeting and discussed, among other things: (i) the Ancillary Agreements; (ii) the Trusts’ arrangements with the Sub-Advisers and the Funds advised by the Sub-Advisers; and (iii) the Adviser’s investment advisory arrangements with respect to the World Selection Funds. At the conclusion of the meeting, the Committee requested certain additional information from the Adviser with respect to the services provided or proposed to be provided under the Ancillary Agreements, among other matters. The Contracts Committee also convened on December 6, 2010 to discuss, among other things: (i) the Adviser’s advisory services with respect to the Funds that are money market funds (“Money Market Funds”); (ii) the Adviser’s profitability; and (iii) the Adviser’s response to the follow-up questions posed by the Contracts Committee following the November 22, 2010 Contracts Committee meeting. Following the December 6 Contracts Committee meeting, the members of the Contracts Committee determined to recommend to the Board, including the Independent Trustees, that the Agreements be continued for an additional one-year period. |
|
|
| At the in-person meeting held on December 7, 2010, the Board, including the Independent Trustees, reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the previous deliberations and recommendation of the Contracts Committee. As a result of this process, the Board and Independent Trustees determined to approve the continuation of the Agreements with respect to each 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 Independent Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to |
|
|
66 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| the Funds, as well as the quality and experience of the Adviser’s personnel. In this regard, the Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit with respect to the World Selection Funds and the equity Funds, as well as the capabilities and performance of the Adviser’s portfolio management and credit review teams with respect to the Money Market Funds. The Independent Trustees also considered the nature, quality and extent of the administrative support services that the Adviser provides to the Funds, including the Adviser’s oversight and management of the Funds’ other service providers. |
|
|
| The Independent Trustees also took note of: (i) the long-term relationship between the Adviser and the Funds; (ii) the Adviser’s reputation and financial condition; and (iii) the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. With respect to the Money Market Funds, the Independent Trustees considered the financial support the Adviser and its affiliates have afforded the Money Market Funds, in terms of both the actions taken with respect to structured investment vehicle investments in 2008 and the fee waivers and reimbursements made to maintain a non-negative yield for the Money Market Funds more recently. In addition, the Independent Trustees considered the Adviser’s performance in fulfilling its responsibilities for overseeing its own and the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. |
|
|
| The Independent Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide to their respective Funds. In this regard, the Independent Trustees considered the investment performance and the portfolio risk characteristics achieved by the Sub-Advisers and the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, among other factors. In the context of the HSBC Investor International Equity Portfolio (“International Equity Portfolio” or “Portfolio”), the Independent Trustees considered that, although they were not satisfied with the performance of the Portfolio, the Adviser had taken steps to address the Portfolio’s performance, including proposing the approval of Lord, Abbett & Co. LLC (“Lord Abbett”) to replace AllianceBernstein L.P. (“AllianceBernstein”) as investment sub-adviser to the Portfolio at the Board meeting held on December 7, and that AllianceBernstein’s services should be evaluated on the basis that AllianceBernstein likely would be replaced by Lord Abbett early in 2011. |
|
|
| Based on these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers, and that the services provided supported continuance of the Agreements. |
|
|
| Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered the investment performance of each Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. In the case of the International Equity Portfolio, as noted above, the Independent Trustees considered that the Adviser had taken steps to address performance that the Independent Trustees did not deem satisfactory, including proposing that Lord Abbett become the investment sub-adviser of the Fund in place of AllianceBernstein. In the context of the Money Market Funds, the Independent Trustees considered the yield support that the Adviser had provided in order for the Money Market Funds to retain non-negative performance. The Independent Trustees determined that the Funds’ investment performance and the Adviser’s actions to improve investment performance, where applicable, supported continuance of the Agreements. |
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|
| Costs of Services and Profits Realized by the Adviser and Sub-Advisers. The Independent Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. The Independent Trustees considered the Adviser’s profitability and costs, including by means of an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Independent Trustees also considered the advisory fees under the Advisory Contracts and compared those fees to the fees of similar funds, which had been compiled and provided by Lipper Inc. The Independent Trustees determined that the Funds had advisory fees competitive with those of similar funds, noting the resources, expertise and experience provided to the Funds. |
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| The Independent 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 Independent 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. |
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|
HSBC INVESTOR FAMILY OF FUNDS | 67 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
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| With respect to the administrative support services provided by the Adviser, the Independent 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. |
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|
| The Independent 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 Independent Trustees also considered information on profitability where provided by the Sub-Advisers. |
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|
| The Independent Trustees concluded that the advisory fees payable to the Adviser and the Funds’ Sub-Advisers were fair and reasonable in light of the factors set forth above. |
|
|
| Other Relevant Considerations. The Independent Trustees 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 Independent 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 or control the overall operating expenses of those Funds. The Independent 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. |
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|
| In light of the above considerations and such other factors and information it considered relevant, the Board 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 the continuation of each Agreement. |
|
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| II. Approval of Sub-Advisory Agreement for the HSBC Investor International Equity Fund |
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|
| The Valuation and Investment Oversight Committee of the Board (the “Investment Committee”), which consists of the Independent Trustees, and the Board met in person and considered the initial approval of the Investment Sub-Advisory Agreement between the Adviser and Lord Abbett with respect to the International Equity Portfolio on December 6 and 7, 2010, respectively. The HSBC Investor International Equity Fund series of HSBC Advisor Funds Trust and the HSBC Investor Overseas Fund series of HSBC Investor Funds each invests all of its investable assets in the International Equity Portfolio in a master-feeder structure. |
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| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Investment Sub-Advisory Agreement. This information included, among other things, information about: (i) the services that Lord Abbett would provide; (ii) the personnel who would provide such services; (iii) investment performance; (iv) fees that would be received by Lord Abbett, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; and (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the 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 their fiduciary obligations under Section 15(c) of the 1940 Act. |
|
|
| At the meeting of the Investment Committee, the Committee members received a presentation by Lord Abbett and discussed the information presented at and the materials provided in advance of the meeting. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that Lord Abbett replace AllianceBernstein as the Sub-Adviser of the Portfolio. At the meeting of the Board, the Independent Trustees considered the recommendation of the Investment Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the Investment Sub-Advisory Agreement with respect to the Portfolio for an initial term of two years. |
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| The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others: |
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|
| Nature, Extent, and Quality of Services to be Provided by the Sub-Adviser. The Independent Trustees considered information provided by the Adviser on Lord Abbett’s history, investment selection process, style tilt and flexibility, performance and tracking error. The Independent Trustees considered Lord Abbett’s organizational structure and biographical information on key employees of the firm. The Independent Trustees noted the Adviser’s view that Lord Abbett has |
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68 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
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| competitive advantages in the strong team dynamic of its core international strategy team members, the risk management framework used in managing portfolios, and the collaboration between the portfolio management team and others within the firm. The Independent Trustees also noted the Adviser’s comparison of Lord Abbett’s investment process to that of AllianceBernstein and the Adviser’s belief that Lord Abbett’s investment process had produced more stable returns over the longer term than that of AllianceBernstein. The Independent Trustees concluded that the nature, extent and quality of the services that Lord Abbett appeared able to provide supported engaging Lord Abbett to be the Portfolio’s Sub-Adviser. |
|
|
| Investment Performance of the Sub-Adviser. The Independent Trustees considered Lord Abbett’s performance with respect to its international equity strategy over various time periods, including one, three, five and ten years. The Independent Trustees noted that the firm’s 2009 performance for the international equity strategy had been negatively affected by its fourth quarter results, but that its three year and five year performance had remained strong. The Independent Trustees also noted the consistency of Lord Abbett’s investment performance over the past five calendar years, noting that 2006 was the only year where the firm had underperformed versus the MSCI EAFE Large Cap Core Index. The Independent Trustees also noted that Lord Abbett’s consistent performance was demonstrated by its scoring in the top quartile for relative and absolute risk efficiency during that period. The Independent Trustees concluded that Lord Abbett’s investment performance for its international strategy supported its engagement as Sub-Adviser to the Portfolio. |
|
|
| Costs of Services and Profits Realized by the Sub-Adviser. The Independent Trustees considered the proposed fee for providing sub-advisory services to the Portfolio and the fact that the fee was identical to the fee currently paid to AllianceBernstein. The Independent Trustees considered the information presented regarding the competitiveness of the International Equity Portfolio’s advisory fees and the total expense ratios of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund more generally in light of the proposed sub-advisory fee. The Independent Trustees concluded that the fee proposed to be paid to Lord Abbett is fair and reasonable. |
|
|
| Other Relevant Considerations. Among other factors, the Independent Trustees considered the needs of the shareholders of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund in terms of investment performance, as determined by the Multimanager team of the Adviser, the Adviser’s efforts to locate one or more investment sub-advisers that had a track record of producing investment performance with the desired attributes, individually or as a group, and the relative difficulty in interesting potential candidates to pursue the sub-advisory relationship with the Portfolio, given its relatively small asset size. The Independent Trustees also considered the extent to which the Portfolio’s expense structure may permit economies of scale to be shared with the Portfolio’s shareholders and the extent to which the Portfolio’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses for the HSBC Investor Overseas Fund in order to reduce or control the overall operating expenses of the Fund. |
|
|
| In light of the above considerations and such other factors and information it considered relevant, the Board 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 the proposed Sub-Advisory Agreement with respect to the International Equity Portfolio for an initial term of two years. |
|
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| III. Approval of an Advisory Contract Supplement and Sub-Advisory Agreement for the HSBC Investor Risk Managed Fund |
|
|
| On February 28, 2011, the Contracts Committee and the Board met in person to consider the expansion of the HSBC Investor Funds family to include a new series of HSBC Investor Funds, the HSBC Investor Risk Managed Fund (“Risk Managed Fund”) and, in connection therewith, approving: |
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| • | the Advisory Contract between the Adviser and the Trust with respect to the Risk Managed Fund and the related Contract Supplement applicable to the Risk Managed Fund (“RM Advisory Agreement”); |
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| • | a Sub-Advisory Agreement between the Adviser and Sinopia Asset Management (“Sinopia”) with respect to the Risk Managed Fund (“RM Sub-Advisory Agreement”); and |
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| • | the Trust’s Ancillary Agreements applicable to the Risk Managed Fund |
|
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| Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the RM Advisory Agreement, the RM Sub-Advisory Agreement and the Ancillary Agreements applicable to the Risk Managed Fund (collectively, the “RM Agreements”). This information included, among other things, information about: (i) the services the Adviser and Sinopia would provide to the Risk Managed Fund; (ii) per- |
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HSBC INVESTOR FAMILY OF FUNDS | 69 |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| sonnel who provide such services; (iii) relevant past investment performance of Sinopia; and (iv) fees proposed to be received by the Adviser and Sinopia with respect to the Risk Managed Fund in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Contracts 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 their fiduciary obligations under Section 15(c) of the 1940 Act. |
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| At its meeting, the Contracts Committee reviewed and discussed the information provided in advance of the meeting and received a presentation about Sinopia. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that the RM Agreements be approved with respect to the Risk Managed Fund, subject to the completion by the Funds’ Chief Compliance Officer of his review of Sinopia’s compliance program and final confirmation that the Adviser and Sinopia wished for the sub-advisory fee to be split evenly as proposed. At the meeting of the Board, the Independent Trustees considered the recommendation of the Contracts Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the RM Agreements with respect to the Risk Managed Fund, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program and final confirmation by the Adviser and Sinopia as to the sub-advisory fee. Subsequent to the meeting, the Chief Compliance Officer completed his review and indicated to the Board that he was satisfied with Sinopia’s compliance program and the sub-advisory fee was finalized as proposed. |
|
|
| 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 Sinopia. The Independent Trustees considered the nature, quality and extent of the investment advisory services to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. With respect to the Adviser, the Independent Trustees considered that the services provided would be consistent with those provided to other Funds, and therefore considered the same points as they did in considering the annual renewal of the Advisory Contract in December 2010 as set forth above. |
|
|
| With respect to Sinopia, the Independent Trustees considered the scope of Sinopia’s business and Sinopia’s experience with respect to the proposed investment strategy for the Risk Managed Fund. The Independent Trustees also considered the quality and experience of the personnel proposed to manage the Risk Managed Fund’s assets and information about the past investment performance of an account managed by Sinopia using an investment strategy substantially similar to that proposed for the Risk Managed Fund (the “Performance Information”). |
|
|
| Based upon these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services proposed to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. |
|
|
| Investment Performance of Sinopia. The Independent Trustees considered performance information provided by the Adviser regarding an account managed by Sinopia in accordance with an investment objective and strategy substantially similar to that proposed for the Risk Managed Fund, including how the account in question had performed in both bull and bear markets and how the performance had compared to a benchmark. The Independent Trustees concluded that the investment performance presented supported the initial approval of the RM Sub-Advisory Agreement. |
|
|
| Costs of Proposed Services and Profits to be Realized by the Adviser and Sinopia. The Independent Trustees considered the costs of the proposed services to be provided by the Adviser and Sinopia to the Risk Managed Fund. In this regard, the Independent Trustees considered information pertaining to the proposed advisory fees and the projected total expense ratios as compared to other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. The Independent Trustees also considered certain information on the Adviser’s profitability with respect to its relationship with the Funds that had been presented at the December 7, 2010 meeting of the Board of Trustees, as set forth above. The Independent Trustees concluded that the advisory fees proposed to be payable to the Adviser and Sinopia are fair and reasonable in light of the factors set forth above. |
|
|
| Other Relevant Considerations. The Independent Trustees also considered the extent to which the Risk Managed Fund’s expense structure may permit economies of scale to be shared with the Fund’s shareholders and the extent to which the Risk Managed Fund’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses proposed to be provided by the Adviser with respect to the Funds in order to reduce or control the overall operating expenses of the Fund. |
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|
70 | HSBC INVESTOR FAMILY OF FUNDS |
|
HSBC INVESTOR FAMILY OF FUNDS |
Investment Adviser Contract Approval (Unaudited) (continued) |
|
|
| 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 the RM Agreements, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program. |
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|
HSBC INVESTOR FAMILY OF FUNDS | 71 |
|
HSBC INVESTOR PORTFOLIOS |
Table of Shareholder Expenses—as of April 30, 2011 (Unaudited) |
|
|
| As a shareholder of the Portfolios, you incur ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds. |
|
|
| These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2010 through April 30, 2011. |
|
|
Actual Example | |
| |
| The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. |
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|
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|
|
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|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||||||||||
|
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| ||||||||||||||||
Growth Portfolio |
|
| $ | 1,000.00 |
|
|
| $ | 1,194.60 |
|
|
| $ | 3.59 |
|
|
|
| 0.66 | % |
|
International Equity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,123.40 |
|
|
|
| 6.69 |
|
|
|
| 1.27 | % |
|
Opportunity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,305.40 |
|
|
|
| 5.03 |
|
|
|
| 0.88 | % |
|
Value Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,167.30 |
|
|
|
| 3.49 |
|
|
|
| 0.65 | % |
|
|
|
* | Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period). |
Hypothetical Example for Comparison Purposes
|
|
| The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. |
|
|
| Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. |
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|
|
| Beginning |
| Ending |
| Expenses Paid |
| Annualized |
| ||||||||||||
|
|
|
|
|
| ||||||||||||||||
Growth Portfolio |
|
| $ | 1,000.00 |
|
|
| $ | 1,021.52 |
|
|
| $ | 3.31 |
|
|
|
| 0.66 | % |
|
International Equity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,018.50 |
|
|
|
| 6.36 |
|
|
|
| 1.27 | % |
|
Opportunity Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,020.43 |
|
|
|
| 4.41 |
|
|
|
| 0.88 | % |
|
Value Portfolio |
|
|
| 1,000.00 |
|
|
|
| 1,021.57 |
|
|
|
| 3.26 |
|
|
|
| 0.65 | % |
|
|
|
* | 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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|
72 | HSBC INVESTOR PORTFOLIOS |
|
|
| |
| Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. |
|
|
| The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ web-site at www.investorfunds.us.hsbc.com. |
|
|
| An investment in a Fund is not a deposit of HSBC Bank USA, N.A., and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. |
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|
HSBC INVESTOR PORTFOLIOS | 73 |
|
|
HSBC INVESTOR FAMILY OF FUNDS: | SHAREHOLDER SERVICING AGENTS |
| For HSBC Bank USA, N.A. and |
INVESTMENT ADVISER AND ADMINISTRATOR | HSBC Securities (USA) Inc. Clients |
HSBC Global Asset Management (USA) Inc. | HSBC Bank USA, N.A. |
452 Fifth Avenue | 452 Fifth Avenue |
New York, NY 10018 | New York, NY 10018 |
| 1-888-525-5757 |
SUB-ADVISERS |
|
HSBC Investor Growth Portfolio | For All Other Shareholders |
Winslow Capital Management, Inc. | HSBC Investor Funds |
4720 IDS Tower | P.O. Box 182845 |
80th South Eighth Street | Columbus, OH 43218-2845 |
Minneapolis, MN 55402 | 1-800-782-8183 |
|
|
HSBC Investor International Equity Portfolio | TRANSFER AGENT |
Lord, Abbett & Co. LLC | Citi Fund Services |
90 Hudson Street | 3435 Stelzer Road |
Jersey City, NJ 07302 | Columbus, OH 43219 |
|
|
HSBC Investor Opportunity Portfolio | DISTRIBUTOR |
Westfield Capital Management Company, L.P. | Foreside Distribution Services, L.P. |
One Financial Center | 690 Taylor Road, Suite 150 |
Boston, MA 02111 | Gahanna, OH 43230-3202 |
|
|
HSBC Investor Value Portfolio | CUSTODIAN |
NWQ Investment Management Company, LLC | The Northern Trust Company |
2049 Century Park East, 16th Floor | 50 South LaSalle Street |
Los Angeles, CA 90067 | Chicago, IL 60603 |
|
|
| INDEPENDENT REGISTERED PUBLIC |
| ACCOUNTING FIRM |
| KPMG LLP |
| 191 West Nationwide Blvd., Suite 500 |
| Columbus, OH 43215 |
|
|
| LEGAL COUNSEL |
| Dechert LLP |
| 1775 I Street, N.W. |
| Washington, D.C. 20006 |
The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.
|
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|
— NOT FDIC INSURED | — NO BANK GUARANTEE | — MAY LOSE VALUE |
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|
HSB-SR-WS-0611 |
| 6/11 |
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.
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(Registrant) | HSBC INVESTOR PORTFOLIOS |
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|
By (Signature and Title) | /s/ Richard A. Fabietti | |
| ||
|
| Richard A. Fabietti |
|
| President |
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|
|
Date | June 21, 2011 |
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|
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.
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By (Signature and Title) | /s/ Richard A. Fabietti | |
| ||
|
| Richard A. Fabietti |
|
| President |
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|
|
Date | June 21, 2011 |
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By (Signature and Title) | /s/ Ty Edwards | |
| ||
|
| Ty Edwards |
|
| Treasurer |
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|
Date | June 21, 2011 |
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