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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: 811-07583

HSBC ADVISOR FUNDS TRUST
(Exact name of registrant as specified in charter)

452 FIFTH AVENUE
NEW YORK, NY 10018
(Address of principal executive offices) (Zip code)

CITI FUND SERVICES
3435 STELZER ROAD
COLUMBUS, OH 43219
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-782-8183

Date of fiscal year end: October 31

Date of reporting period: April 30, 2008

Item 1. Reports to Stockholders.

(FRONT COVER PAGE)

HSBC Investments (USA) Inc.

HSBC Investor Family of Funds

Semi-Annual Report

April 30, 2008

FIXED INCOME FUNDS:

HSBC Investor Core Plus Fixed Income Fund
(Advisor)

HSBC Investor Core Plus Fixed Income Fund

HSBC Investor High Yield Fixed Income Fund

HSBC Investor Intermediate Duration
Fixed Income Fund

HSBC Investor New York Tax-Free Bond Fund

EQUITY FUNDS:

HSBC Investor Growth Fund

HSBC Investor Growth and Income Fund

HSBC International Equity Fund

HSBC Investor Mid-Cap Fund

HSBC Investor Opportunity Fund

HSBC Investor Opportunity Fund (Advisor)

HSBC Investor Overseas Equity Fund

HSBC Investor Value Fund


Table of Contents


HSBC Investor Family of Funds
Semi Annual Report - April 30, 2008

Glossary of Terms
Chairman’s Message	1
Commentary From the Certain parties	2
Portfolio Reviews	3
Portfolio Composition	23
Schedules of Portfolio Investments
HSBC Investor New York Tax-Free Bond Fund	25
HSBC Investor Growth and Income Fund	27
HSBC Investor Mid-Cap Fund	28
Statements of Assets and Liabilities	30
Statements of Operations	33
Statements of Changes in Net Assets	36
Financial Highlights	50
Notes to Financial Statements	63
Investment Adviser Contract Approval	74
Table of Shareholder Expenses	75
HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Core Plus Fixed Income Portfolio	79
HSBC Investor High Yield Fixed Income Portfolio	83
HSBC Investor Intermediate Duration Fixed Income Portfolio	89
HSBC Investor Growth Portfolio	92
HSBC Investor International Equity Portfolio	93
HSBC Investor Opportunity Portfolio	95
HSBC Investor Value Portfolio	97
Statements of Assets and Liabilities	98
Statements of Operations	100
Statements of Changes in Net Assets	102
Financial Highlights	106
Notes to Financial Statements	107
Investment Adviser Contract Approval	114
Table of Shareholder Expenses	116
Other Information	118

[This Page Intentionally Left Blank]

Glossary of Terms

Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.

The Gross Domestic Product (“GDP”) is the measure of the market value of the goods and services produced by labor and property in the United States.

Lehman Brothers U.S. Aggregate Index is an unmanaged index generally representative of investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

Lehman Brothers Intermediate U.S. Aggregate Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.

Lehman Brothers New York Tax Exempt Index is an unmanaged index composed of investment grade New York tax-exempt securities, all having a $50 million minimum maturity value.

Lipper High Current Yield Funds Average is an average of managed mutual funds that aim at high (relative) current yield from fixed income securities, which have no quality or maturity restrictions, and tend to invest in lower grade debt issues.

Lipper Intermediate Investment-Grade Debt Funds Average is an average of managed mutual funds that invest at least 65% of their assets in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five- to ten-years.

Lipper International Large-Cap Core Funds Average is an average of managed mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper’s international large-cap floor. International large-cap core funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to their large-cap specific subset of the S&P/Citigroup World ex-U.S. BMI.

Lipper Large-Cap Core Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the Standard & Poor’s Mid-Cap 400 Index.

Lipper Large-Cap Growth Funds Average is an average of managed mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index.

Lipper Mid-Cap Growth Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) of less than 300% of the dollar-weighted median market capitalization of the Standard & Poor’s MidCap 400 Index.

Lipper Multi-Cap Value Funds Average is an average of managed mutual of managed funds that, by portfolio practice, invest in a variety of market capitalization ranges, without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap funds will generally have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the S&P MidCap 400 Index. Multi-Cap value funds seek long-term growth of capital by investing in companies that are considered to be undervalued relative to a major unmanaged stock index based on price-to-current earnings, book value, asset value, or other factors. These funds will normally have a below-average price-to-earnings ratio, price-to-book ratio, and three-year earnings growth figure, compared to the U.S. diversified multi-cap funds universe average.

Lipper New York Municipal Debt Funds Average is an average of managed mutual funds that invest at least 65% of their assets in municipal debt issues that are exempt from taxation in New York or a city in New York.

Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.

Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

The Russell Universe - Russell is a recognized leader in consulting, multi-manager investing and institutional investment management. Our consultants advise clients on more than $2 trillion in assets. We deliver investment programs to over 2,000 clients in 44 countries. With more than $230 billion in assets in our funds, Russell researchers meet with over 4,000 investment managers around the world to evaluate their investment process.

Russell 1000^® Growth Index is an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000^® Value Index is an unmanaged index which measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

Russell 2500™ Growth Index is an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.

Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”) is an unmanaged index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation.

Standard & Poor’s 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.

Lipper is an independent mutual fund performance monitor whose results are based on total return and do not reflect a sales charge.

Securities indexes assume reinvestment of all distributions and interest payments and do not take in account brokerage fees or expenses. Securities in the Fund do not match those in the indexes and performance of the Fund will differ. Investors cannot invest directly in an index.

Chairman’s Message

Dear Shareholder:

In a period of market volatility, mutual funds offer a “hedge” against extremes. Since the purpose of mutual funds is to provide a balance of investments and since fund advisers monitor performance of individual holdings in a portfolio, investors are generally protected against extremes. Over the long run, mutual funds have continued to be a wise investment.

The HSBC Investor Funds have performed in accordance with the swings of the equities and fixed income markets. Many of the HSBC Investor Funds have outperformed their industry benchmarks, most have equaled the benchmark and a few underperformed. Management and the board monitor performance continuously. While any Fund can underperform for a limited period of time, Funds that continue to underperform are put on a watch list, and if a downtrend continues, the board and management will re-evaluate the subadviser relationship.

With over 12 trillion dollars invested, mutual funds remain one of the best ways to sustain both value and growth of a portfolio. The diversity of the HSBC Fund Family provides a useful way to ride the wave of volatility. Please consult your financial adviser to determine the best mix of funds for your individual needs. We encourage you to be active in overseeing your own investments and welcome your comments about how we can provide the best service to you.

Thanks,

Larry M. Robbins, Chairman, HSBC Investor Funds


1	HSBC INVESTOR FAMILY OF FUNDS

Commentary From the Certain parties

HSBC Investments (USA) Inc.
Effective June 2, 2008, changed name to HSBC Global Asset Management (USA) Inc.

Economic review

Several factors weighed on the U.S. economy during the six-month period between November 1, 2007 and April 30, 2008. The ongoing decline in the housing market depressed activity in industries related both directly and indirectly to the housing market, including homebuilders, home improvement retailers and furniture makers. The housing slump also made it more difficult for consumers to borrow against their home equity. That development weakened consumer spending, even as rising prices on food and energy and a flagging employment picture caused Americans to cut back. Consumer spending accounts for more than two-thirds of U.S. economic activity. Therefore, the consumer slowdown posed a significant threat to economic growth.

The housing slump also contributed to rising defaults on subprime mortgages. Higher subprime mortgage defaults led to losses for securities backed by these low-quality home loans, which had become widely dispersed throughout the global financial system in recent years. Losses in subprime mortgage-backed securities forced a number of financial firms to write-down the value of their holdings by billions of dollars. Moreover, market participants became concerned about the possible extent of problems related to weak mortgages. Lenders, concerned that they could not accurately gauge prospective borrowers’ financial health, became extremely cautious about extending credit, resulting in a severe credit crunch that depressed economic growth.

The Federal Reserve Board (the “Fed”) acted aggressively as it attempted to ameliorate the credit situation and stimulate the economy. The Fed reduced the federal funds rate, its target short-term interest rate, from 4.50% to 2.00% during the six month period ended April 30, 2008 in order to inject liquidity into the financial markets. It also orchestrated a buyout of troubled securities firm Bear Stearns, to prevent problems at the company from undermining the broad financial system. The Fed also sought to improve financial institutions’ access to credit by accepting a wider variety of assets as collateral.

Exports helped the U.S. economy continue to expand despite the difficult environment during the early months of 2008. A weakening dollar made U.S. companies’ products and services more competitive overseas, while increasing the value of revenues earned in foreign currencies. The U.S. Gross Domestic Product¹ grew at annualized rates of 0.6% during the fourth quarter of 2007 and 0.9% during the first quarter of 2008.

The U.S. economy’s struggles led to signs of a global slowdown. Growth in Europe appeared to weaken, and evidence emerged that developing economies, which have generated powerful growth in recent years, were beginning to feel the effects of America’s problems as well. For example, China’s year-over-year exports grew 22.5% in December 2007, but just 6.5% in February 2008. Nevertheless, the global economy remained healthy and continued to expand more quickly than the U.S. economy during this period.

Market review

Investors during most of this six-month period responded to the uncertain economic environment by fleeing from the perceived risk of stocks and into the perceived safety of high-quality bonds. U.S. stock returns were exceptionally volatile during this time, as the lack of clarity about the direction of the economy; the subprime crisis and the credit crunch caused traders to react aggressively in response to emerging data. The U.S. market recovered somewhat between mid-March and the end of April, as investors anticipating improving economic and market conditions sought to capitalize on low valuations. For the six month period ended April 30, 2008, the S&P 500 returned -9.63%, while the small-cap sector as represented by the Russell 2000^® Index returned -12.92%.

Financial stocks suffered some of the U.S. market’s greatest declines, as shareholders sold financial stocks due to concerns about large write-downs and the potential for further damage from the subprime mortgage crisis. Stocks in the financial sector rebounded modestly toward the end of the period, as bargain-hunting investors began to believe that the market had priced in the worst of the subprime crisis.

Consumer discretionary stocks also performed poorly during this period, as investors worried that high food and energy prices and a weaker employment picture would reduce the money individuals had available to spend on non-essential items. Conversely, energy and materials stocks benefited from rising commodity prices, and posted some of the market’s strongest returns during this period.

Foreign stocks generally posted losses, with the MSCI EAFE Index of developed foreign stock markets returning -8.99% during the period under review. Investors sold foreign stocks due to a general aversion to risk and because of concerns about the repercussions from the turmoil in the credit markets. Emerging markets in Asia, which had performed exceptionally well in recent years, particularly struggled as investors sold assets they perceived to be risky. Developing markets in other parts of the world meanwhile held up relatively well, as they benefited from rising commodity prices.

Investors concerned about risk piled into bonds issued by the U.S. Treasury and foreign governments. Yields declined and prices rose on government bonds, causing the spread between the yield on government securities and corporate bonds to widen substantially. High-yield bonds—debt issued by companies with relatively weak finances—trailed other sectors of the fixed-income market, as investors favored the greater stability of higher-quality bonds. The Lehman Brothers U.S. Aggregate Index, which tracks the broad fixed-income market, returned 4.08% for the six months through April 30, 2008.

¹ For additional information, please refer to the Glossary of Terms.


HSBC INVESTOR FAMILY OF FUNDS	2

Portfolio Reviews

HSBC Investor Core Plus Fixed Income Fund
(Class A Shares, B Shares, C Shares and I Shares)
by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team

The HSBC Investor Core Plus Fixed Income Fund (the “Fund”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Fund utilizes a two-tier structure, commonly known as a “master-feeder,” in which the Fund invest all of its investable assets in the HSBC Investor Core Plus Fixed Income Portfolio (the “Portfolio”). The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.

The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.

Market Commentary

For the six month period ended April 30, 2008, the Class A Shares returned -1.04% (without sales charge) and the Class I Shares (previously the Advisor Class Shares) of the Fund produced a -0.81% total return. That compared to a total return of 4.08% and 1.75% for the Lehman Brothers U.S. Aggregate Index¹ and the Lipper Intermediate Investment-Grade Debt Funds Average¹, respectively.

Past performance is no guarantee of future results.

Portfolio Performance

The Fund held an overweight position in all non-Treasury sectors other than mortgage pass-through and government agency bonds. In particular, we held significantly overweight allocations to corporate bonds and collateralized mortgage-backed securities, which began the period offering historically attractive yields relative to Treasury issues. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Treasuries led the fixed-income markets by a wide margin during this period, however, ultimately the Fund’s emphasis on other sectors weighed on relative returns.*

Security selection also reduced the Fund’s relative performance during the period under review. Selection among asset-backed securities decreased returns against the benchmark, as certain bonds suffered from concerns about the financial health of companies that insured them. The Fund’s corporate bond allocation meanwhile had a somewhat lower credit quality than that of the index, including select below-investment-grade bonds, as we pursued attractive yields. That positioning weighed on relative performance, as investors sold lower-quality bonds indiscriminately.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.

3	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Core Plus Fixed Income Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	10 Year	Since Inception	Gross	Net

HSBC Investor Core Plus Fixed Income Fund Class A¹	8/26/96	-5.72	-3.92	2.51	4.43	5.13	1.41	0.70

HSBC Investor Core Plus Fixed Income Fund Class B²	1/6/98	-5.27	-3.68	2.75	4.48	4.43	2.16	1.45

HSBC Investor Core Plus Fixed Income Fund Class C³	11/4/98	-2.38	-0.89	2.72	—	4.18	2.16	1.45

HSBC Investor Core Plus Fixed Income Fund Class I**	1/9/95	-0.81	1.26	3.85	5.42	6.53	0.72	0.45

Lehman Brothers U.S. Aggregate Index⁴	—	4.08	6.87	4.37	5.96	N/A	N/A	N/A

Lipper Intermediate Investment-Grade Debt Funds Average⁴	—	1.75	3.39	3.36	5.06	N/A	N/A	N/A

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-800-782-8183.

The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2008 through March 1, 2009.

The total returns for Class A Shares, Class B Shares, Class C Shares and Class I Shares of the Fund for the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the period ended April 30, 2008 would have been lower.


**	The Class I Shares of the HSBC Core Plus Fixed Income Fund are part of the Advisor Funds Trust.

¹	Reflects the maximum sales charge of 4.75%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms. Effective July 2006, the Fund was reclassified from the Lipper General Bond Funds Average to the Lipper Intermediate Investment-Grade Debt Funds Average.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund’s performance is measured against the Lehman Brothers U.S. Aggregate Index, an unmanaged market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	4

Portfolio Reviews

HSBC Investor High Yield Fixed Income Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Halbis Capital Management (USA) Inc., High Yield Team

The HSBC Investor High Yield Fixed Income Fund (the “Fund”) seeks to provide a high level of current income and capital appreciation. HSBC Investments (USA) Inc. serves as investment adviser to the Fund. The Halbis High Yield Team provides the day to day management of the portfolio. The Team’s philosophy is focused on delivering sustainable value added performance in the high yield fixed income market. The investment approach is a combination of top-down sector/industry selection and bottom-up security/quality selection. The team rotates sectors and themes within the high yield universe during different market environments seeking to add value, endeavoring to take advantage of market inefficiencies in order to outperform in both up and down markets. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. High yield bonds are subject to greater risks than investment grade bonds, such as the increased risk of default because of the lower credit quality of the issues.

Market Commentary

The Fund delivered a total return of -1.65% (without sales charge) for Class A Shares and -1.53% for Class I Shares for the six month period ended April 30, 2008. That compared to -0.22% and -2.01% total return for the Fund’s benchmarks, the Citigroup U.S. High Yield Market Capped Index¹ and the Lipper High Current Yield Funds Average¹, respectively.

Past performance is no guarantee of future results.

Portfolio Performance

High-yield bond performance was volatile during the period under review, as investors tried to gauge the likely repercussions of the economic slowdown and the credit crunch. The Fund generated gains during three of the six months in this period ended April 30, 2008, and posted losses during the other three months.

The Fund held an overweight allocation to the energy sector. The relatively large position in energy lifted returns against the benchmark, as energy companies benefited from surging oil and gas prices. We also held underweight positions in the homebuilding and building products industries. Bonds issued by companies in those industries generally performed poorly due to the ongoing slump in the housing market, so the Fund’s smaller-than-benchmark stakes helped its performance against the index.*

A relatively large position in bonds of gaming companies hurt the Fund’s relative return. Consumers facing higher food and energy prices cut back on discretionary entertainment, thereby depressing revenues at these firms and causing their bonds to trade lower. The Fund held a smaller stake than the benchmark in bonds rated BBB, the lowest tier of the investment-grade bond universe, which also weighed on relative performance. BBB-rated bonds posted the benchmark’s strongest returns for the six month period as a whole, despite intermittent strength from lower-quality bonds.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


5	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor High Yield Fixed Income Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)		Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	Since Inception	Gross	Net

HSBC Investor High Yield Fixed Income Fund Class A¹	11/18/05	-6.33	-6.61	3.49	2.93	0.80

HSBC Investor High Yield Fixed Income Fund Class B²	11/21/05	-5.65	-6.26	4.11	3.68	1.55

HSBC Investor High Yield Fixed Income Fund Class C³	12/14/05	-2.96	-3.70	4.80	3.68	1.55

HSBC Investor High Yield Fixed Income Fund Class I	11/18/05	-1.53	-1.81	5.83	2.68	0.55

Citigroup U.S. High Yield Market Capped Index⁴	—	-0.22	-0.23	N/A	N/A	N/A

Merrill Lynch U.S. High Yield Master II Index⁴	—	-0.77	-0.83	N/A	N/A	N/A

Lipper High Current Yield Funds Average⁴	—	-2.01	-2.22	N/A	N/A	N/A


¹	Reflects the maximum sales charge of 4.75%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund has changed its standardized performance benchmark from the Merrill Lynch U.S. High Yield Master II Index to the Citigroup U.S. High Yield Market Capped Index to more closely reflect the management style of the Fund. The Citigroup U.S. High Yield Market Capped Index, the “U.S. High Yield Market Capped Index” uses the U.S. High-Yield Market Index as its foundation imposing a cap on the par amount of each issuer in order to limit the impact of large issuers while retaining the characteristics of the issuer’s distribution across different maturities. The U.S. High-Yield Market Index captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada. The Merrill Lynch U.S. High Yield Master II Index measures the performance of the broad high yield market. The Indexes are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	6

Portfolio Reviews

HSBC Investor Intermediate Duration Fixed Income Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team

The HSBC Investor Intermediate Duration Fixed Income Fund (the “Fund”) seeks to maximize total return, consistent with reasonable risk. The “total return’’ sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Fund utilizes a two tier structure, commonly known as “master-feeder,” in which the Fund invests all of its investable assets in the HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”). The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

The mortgage market in the U.S. recently experienced difficulties that may adversely affect the performance and market value of certain mortgage-related investments.

Market Commentary

The Fund returned -1.49% (without sales charge) for the Class A Shares and -1.26% for the Class I Shares during the six month period ended April 30, 2008. That compared to a total return of 4.22% and 1.75% for Lehman Brothers Intermediate U.S. Aggregate Index¹and the Lipper Intermediate Investment-Grade Debt Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


7	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Intermediate Duration Fixed Income Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	Since Inception	Gross	Net

HSBC Investor Intermediate Duration Fixed Income Fund Class A¹	2/7/01	-6.15	-4.54	2.38	3.79	1.67	0.65

HSBC Investor Intermediate Duration Fixed Income Fund Class B²	2/15/01	-5.68	-4.29	2.62	3.83	2.42	1.40

HSBC Investor Intermediate Duration Fixed Income Fund Class C³	2/13/01	-2.71	-1.43	2.63	3.69	2.42	1.40

HSBC Investor Intermediate Duration Fixed Income Fund Class I	1/23/01	-1.26	0.51	3.65	4.83	1.42	0.40

Lehman Brothers Intermediate U.S. Aggregate Index⁴	—	4.22	7.07	4.26	N/A	N/A	N/A

Lipper Intermediate Investment-Grade Debt Funds Average⁴	—	1.75	3.39	3.36	N/A	N/A	N/A

The total returns for Class A shares, Class B Shares, Class C Shares and Class I Shares of the Fund for the period ended April 30, 2008 included the receipt of a one-time payment in respect of a class action settlement. Without the receipt of this payment, the returns for the Fund for the period ended April 30, 2008 would have been lower.


¹	Reflects the maximum sales charge of 4.75%.

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	For additional information, please refer to the Glossary of Terms.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund’s performance is measured against the Lehman Brothers Intermediate U.S. Aggregate Index, an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	8

Portfolio Reviews

HSBC Investor New York Tax-Free Bond Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Halbis Capital Management (USA) Inc., Broad Markets Fixed Income Team

The HSBC Investor New York Tax-Free Bond Fund (the “Fund”) seeks to provide shareholders with income exempt from regular federal, New York State and New York City personal income taxes. The Fund employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

The Fund’s income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Regional funds may be subject to additional risks, since the issues they invest in are located in one geographical location.

Market Commentary

The Fund delivered a total return of 1.11% (without sales charge) for Class A Shares and 1.24% for Class I Shares for the six month period ended April 30, 2008. That compared to -0.37% and 0.15% for the Fund’s benchmarks, the Lehman Brothers New York Tax Exempt Index¹ and the Lipper New York Municipal Debt Funds Average¹, respectively.

Past performance is no guarantee of future results.

Portfolio Performance

The credit and liquidity crisis roiled the municipal bond markets during the period under review. Investors began to question whether bond insurers would have the financial resources to meet their obligations, and those concerns in turn hurt the performance of insured municipal bonds. The turmoil in the financial markets also caused certain financial institutions to sell large volumes of municipal bonds, driving up yields on New York tax-free securities during parts of the period.

Meanwhile, the yields on Treasury issues declined substantially, as the Federal Reserve Board (the “Fed”) reduced short-term interest-rates and investors fled to high-quality, liquid securities. As a result, New York municipal bonds paid unusually high yields relative to Treasury bonds with comparable maturities.

We maintained very high credit quality in the Fund’s portfolios. That strategy boosted the Fund’s performance relative to its benchmark, as the financial markets’ troubles caused investors to favor higher-quality issues. An overweight position in short-term bonds also benefited performance against the index, as the yield curve steepened during this period.

An overweight stake in insured paper reduced relative returns, as investors became concerned about the health of bond insurers. That said, we believe the generally high quality of the insured bonds in the Fund’s portfolio helped prevent some of the problems among bond insurers from having a larger impact on Fund return.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


9	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor New York Tax-Free Bond Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	10 Year	Since Inception	Gross	Net

HSBC Investor New York Tax-Free Bond Fund Class A¹	5/1/95	-3.68	-2.54	1.88	3.65	4.47	0.88	0.88

HSBC Investor New York Tax-Free Bond Fund Class B²	1/6/98	-3.23	-2.43	2.10	3.69	3.55	1.63	1.63

HSBC Investor New York Tax-Free Bond Fund Class C³	11/4/98	-0.26	0.52	2.09	—	3.07	1.63	1.63

HSBC Investor New York Tax-Free Bond Fund Class I	7/1/96	1.24	2.53	3.12	4.42	4.89	0.63	0.63

Lehman Brothers New York Tax Exempt Index⁴	—	-0.37	3.41	4.04	5.22	N/A	N/A	N/A

Lipper New York Municipal Debt Funds Average⁴	—	0.15	0.50	3.24	4.18	N/A	N/A	N/A

¹ Reflects the maximum sales charge of 4.75%.

² Reflects the contingent deferred sales charge, maximum of 4.00%.

³ Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴ For additional information, please refer to the Glossary of Terms.

⁵ Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^† Aggregate total return.

The Fund’s performance is measured against the Lehman Brothers New York Tax Exempt Index, an unmanaged index composed of investment-grade New York tax-exempt securities, all having a $50 million minimum maturity value. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	10

Portfolio Reviews

HSBC Investor Growth Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Philip J. Sanders, Senior Vice President/Portfolio Manager, CFA and

Daniel P. Becker, Senior Vice President/Portfolio Manager, CFA

Waddell & Reed Investment Management Company

The HSBC Investor Growth Fund (the “Fund”) seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the subadviser believes have the potential to generate superior levels of long-term profitability and growth. The Fund utilizes a two tier structure, commonly known as a “master-feeder”, and invests all of its investable assets in the HSBC Investor Growth Portfolio (the “Portfolio”), which acts as the master fund. Effective May 12, 2008, Winslow Capital Management Inc, replaced Waddell & Reed Investment Management Company (Waddell & Reed) as subadviser.

Investment Concerns

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Market Commentary

The Fund returned -8.65% (without sales charge) for the Class A Shares and -8.56% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.28% for the Russell 1000^® Growth Index¹ and a -10.15% return for the Lipper Large-Cap Growth Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance

The subprime mortgage crisis evolved into a credit and liquidity crisis during this period. Those developments had a substantially adverse impact on stocks of all sizes, both the U.S. and foreign markets.

The Fund benefited from strong stock selection relative to its benchmark. Security selection added to relative returns in four of the eight economic sectors in which the Fund invested during the period. In particular, certain holdings in the materials and energy sectors boosted the Fund and helped to outperform its benchmark. Overweight positions in the health care and industrials sectors also helped relative performance.*

The Fund’s positions in the information technology, consumer discretionary and financial sectors detracted from relative performance over the period, largely due to stock selection. Growth-oriented technology stocks generally were weak during the period, likely due to a faltering economy and cutbacks in technology spending. Consumer discretionary holdings were hurt by investors’ concerns that high-energy costs, a plunging housing market and a weakening employment picture would undermine consumer spending. Financial stocks suffered due to investors’ worries about the possible extent of the subprime mortgage crisis.*

* Portfolio composition is subject to change.

¹ For additional information, please refer to the Glossary of Terms.


11	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Growth Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)⁶

As of April 30, 2008	Inception Date	Six Months^†	1 Year	3 Year	Since Inception	Gross	Net

HSBC Investor Growth Fund Class A¹	5/7/04⁵	-13.20	4.81	10.80	8.18	1.21	1.20

HSBC Investor Growth Fund Class B²	5/7/04⁵	-12.47	5.41	11.32	8.54	1.96	1.95

HSBC Investor Growth Fund Class C³	5/7/04⁵	-9.89	8.43	11.84	8.75	1.96	1.95

HSBC Investor Growth Fund Class I	5/7/04⁵	-8.56	10.53	12.97	9.83	0.96	0.95

Russell 1000^® Growth Index⁴	—	-9.28	-0.23	8.86	N/A	N/A	N/A

Lipper Large-Cap Growth Funds Average⁴	—	-10.15	1.73	8.76	N/A	N/A	N/A

¹ Reflects the maximum sales charge of 5.00%.

² Reflects the contingent deferred sales charge maximum of 4.00%.

³ Reflects the contingent deferred sales charge maximum of 1.00%.

⁴ For additional information, please refer to the Glossary of Terms.

⁵ The HSBC Investor Growth Fund was initially offered for purchase effective May 7, 2004, however, no shareholder activity occurred until May
10, 2004.

⁶ Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^† Aggregate total return.

The Fund’s performance is measured against the Russell 1000^® Growth Index, an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	12

Portfolio Reviews

HSBC Investor Growth and Income Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Gary U. Rollé, CFA, Principal/Chief Investment Officer and

Edward S. Han, Principal/Portfolio Manager and

Transamerica Investment Management, LLC

The HSBC Investor Growth and Income Fund (the “Fund”) seeks long-term growth of capital and current income by normally investing at least 65% of its assets in common stocks, preferred stocks, and convertible securities. The Fund may also invest in various types of fixed income securities and in money market instruments. The Fund employs Transamerica Investment Management, LLC as the subadviser to the Fund.

Investment Concerns

Market Commentary

The Fund returned -10.19% (without sales charge) for the Class A Shares and -10.14% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.63% return for the Standard & Poor’s 500 Index¹ and a -10.27% return for the Lipper Large-Cap Core Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance

During the period, U.S. stock markets struggled against the combined effects of a housing market correction, a credit and liquidity crisis, concerns about inflation and mounting signs of an economic slowdown. The financial services sector was particularly hard hit as companies with subprime-mortgage exposure took multibillion-dollar charges against earnings.

The Fund held an overweight position relative to its index in shares of materials and industrial firms. These companies performed well during the period, contributing to the majority of the Fund’s relative performance. An underweight position in health care and financial services stocks boosted relative performance as well, as these sectors performed poorly during the period.*

However, the Fund’s underweight position in the consumer staples and energy sectors detracted from performance against the index. Security selection in the consumer discretionary, consumer staples and energy sectors weighed on relative performance as well.*

* Portfolio composition is subject to change.

¹ For additional information, please refer to the Glossary of Terms.


13	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Growth and Income Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	Since Inception	Gross	Net

HSBC Investor Growth and Income Fund Class A¹	4/12/01	-14.68	0.97	10.35	2.67	1.32	1.20

HSBC Investor Growth and Income Fund Class B²	4/5/01	-14.19	1.44	10.63	3.18	2.07	1.95

HSBC Investor Growth and Income Fund Class C³	11/3/03	-11.42	4.48	—	8.92	2.07	1.95

HSBC Investor Growth and Income Fund Class I	4/2/01	-10.14	6.53	11.72	4.13	1.07	0.95

Standard & Poor’s 500 Index⁴	—	-9.63	-4.68	10.61	N/A	N/A	N/A

Lipper Large-Cap Core Funds Average⁴	—	-10.27	-4.98	9.61	N/A	N/A	N/A

¹ Reflects the maximum sales charge of 5.00%.

² Reflects the contingent deferred sales charge, maximum of 4.00%.

³ Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴ For additional information, please refer to the Glossary of Terms.

⁵ Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^† Aggregate total return.

The Fund’s performance is measured against the Standard & Poor’s 500 Index (“S&P 500”), 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. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	14

Portfolio Reviews

HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund
(Class A Shares, B Shares, C Shares, and I Shares)
by Kevin F. Simms
Co-CIO International Value Equities and Director of Research – Global and International Value Equities
AllianceBernstein Investment Research and Management

The HSBC Investor International Equity Fund and the HSBC Investor Overseas Equity Fund (the “Funds”) seek to provide their shareholders with long-term growth of capital and future income by investing at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. The Portfolio may invest up to 20% of its assets in equity securities of companies in emerging markets. The Funds employ a two-tier fund structure, known as “master-feeder,” in which the Funds invest all of their investable assets in the HSBC Investor International Equity Portfolio (the “Portfolio”). The Portfolio employs AllianceBernstein L.P. (“AllianceBernstein”), a unit of AllianceBernstein Investment Research and Management as subadviser.

The Portfolio invests primarily in equity securities of companies organized and domiciled in developed nations outside the U.S., or for which the principal trading market is outside the U.S., including Europe, Canada, Australia and the Far East.

Investment Concerns

There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates.

Market Commentary

For the six month period ended April 30, 2008, the Class I Shares (previously the Advisor Class Shares) of the HSBC Investor International Equity Fund produced a -10.82% return and the Class A Shares of the HSBC Investor Overseas Equity Fund returned -11.23% (without sales charge). That compared to a total return of -8.99% and -10.12% for the Funds’ benchmarks, the MSCI EAFE Index¹ and the Lipper International Large-Cap Core Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance

Investor worries about slowing global economic growth and further repercussions from the subprime mortgage crisis dominated financial markets during the period, contributing to the Fund’s negative performance. In addition, record oil prices weighed on investor sentiment. Central banks adopted more accommodative monetary policies, lowering interest rates and pumping money into the banking system. Global stocks fell sharply near the end of the period, as a major U.S. investment-banking firm neared bankruptcy.

The Fund’s sector selection enhanced relative returns, due primarily to overweight positions in shares of industrial commodities and energy firms. Security selection in the technology and utilities sectors also added to relative returns.*

Security selection hurt the Fund’s relative performance. Selection of stocks in the capital equipment and industrial commodities sectors particularly weighed on returns relative to the index. Key detractors from performance included shares of a large U.K. mortgage lender, which declined amid investor perceptions of deteriorating conditions in the country’s housing market. Meanwhile, stocks of French capital equipment companies in the Fund’s portfolio were hurt by weakening consumer confidence and rising raw materials costs.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


15	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	10 Year	Since Inception	Gross		Net

HSBC Investor International Equity Fund Class I**	1/9/95	-10.82	-2.39	20.93	8.50	10.50		0.89	0.89

HSBC Investor Overseas Equity Fund Class A¹	8/26/96	-15.68	-8.09	18.98	7.18	8.86		1.64	1.64

HSBC Investor Overseas Equity Fund Class B²	1/6/98	-14.42	-7.10	19.28	7.21	8.56		2.39	2.39

HSBC Investor Overseas Equity Fund Class C³	11/4/98	-12.33	-4.68	19.29	—	8.65		2.39	2.39

MSCI EAFE Index⁴	—	-8.99	-1.31	20.92	7.05	N/A		N/A	N/A

Lipper International Large-Cap Core Funds Average⁴	—	-10.12	0.23	18.53	5.62	N/A		N/A	N/A


**	The Class I Shares represent HSBC Investor International Equity Fund and are part of the Advisor Funds Trust.

¹	Reflects the maximum sales charge of 5.00%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund’s performance is measured against the Morgan Stanley Capital International (“MSCI”) Europe, Australasia and Far East (“EAFE”) Index, an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Funds’ performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	16

Portfolio Reviews

HSBC Investor Mid-Cap Fund
(Class A Shares, B Shares, C Shares and Class I Shares)
by Tony Y. Dong, CFA, Director, Mid-Cap Equity and Senior Portfolio Manager and
Brian S. Matuszak, CFA, Senior Equity Analyst and
Andy Y. Mui, CPA, Senior Equity Analyst
Munder Capital Management

The HSBC Investor Mid-Cap Fund (the “Fund”) seeks to achieve long-term growth of capital by investing at least 80% of its net assets in equity securities, i.e., common stocks, preferred stocks, convertible securities and rights and warrants of mid-capitalization companies. Mid-capitalization companies are those companies with market capitalization within the range of companies included in the S&P MidCap 400® Index, or within the range of companies included in the Russell Midcap Index. The Portfolio employs Munder Capital Management (“Munder”) as sub-investment adviser.

Investment Concerns

Mid capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.

Market Commentary

The Fund’s Class A Shares posted a return of -10.62% (without sales charge) and -10.48% for the Class I Shares (previously the Trust Class Shares) for the six month period ended April 30, 2008. That compares to -6.95% and -10.98% for the Fund’s benchmarks, the S&P MidCap 400 Index¹ and the Lipper Mid-Cap Growth Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance

Stock selection was the most prominent driver of strong absolute returns. The Fund produced double-digit gains in eight- of the ten-economic sectors represented in the index, while approximately 60% of the stocks in the portfolio generated double- or triple-digit gains. Mid-cap growth stocks performed especially well during this period. Investors moved up the market cap scale from more economically sensitive small-cap stocks in favor of shares of somewhat larger companies that could produce above-average earnings in a weakening economy.*

Stock selection was essential in helping the Fund outperform the benchmark index. Selection was beneficial across most sectors. For example, shares of a video-game retailer, a bank, an energy services and equipment provider and an engineering and construction firm all tripled in value during the six-month period. Likewise, there were three additional stocks in particular that tripled value for the period, an online advertising firm, a digital mapping company, a utility software enterprise, and a medical devices maker. A larger-than-benchmark position in industrials and an underweight stake in financials also boosted relative performance.*

Stock selection within the consumer staples sector represented the largest drag on relative performance, as two of the four consumer staples stocks in the portfolio posted negative returns. Losses of those two stocks reduced the Fund’s relative gain by only 0.74 percentage points.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


17	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Mid-Cap Fund - As of April 30, 2008


Fund Performance					Average Annual Total Return^† (%)								Expense Ratio (%)⁵

As of April 30, 2008	Inception Date		Six Months^†		1 Year		5 Year		10 Year		Since Inception		Gross		Net

HSBC Investor Mid-Cap Fund Class A¹		7/1/93		-15.10		-1.41		13.96		7.00		10.76		1.72		1.35

HSBC Investor Mid-Cap Fund Class B²		7/1/93		-14.04		-0.51		14.24		6.75		10.41		2.47		2.10

HSBC Investor Mid-Cap Fund Class C³		7/1/93		-11.71		2.17		14.39		6.81		10.36		2.47		2.10

HSBC Investor Mid-Cap Fund Class I		7/1/93		-10.48		4.15		15.39		7.80		11.42		1.47		1.10

S&P MidCap 400 Index⁴		—		-6.95		-2.76		15.20		9.64		N/A		N/A		N/A

Lipper Mid-Cap Growth Funds Average⁴		—		-10.98		0.59		13.78		5.59		N/A		N/A		N/A


¹	Reflects the maximum sales charge of 5.00%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

^†	For periods prior to July 1, 2000, the performance shown above includes the total return (adjusted for Fund expenses) generated by HSBC Investments (USA) Inc’s management of a pooled investment vehicle called a collective investment trust (“CIT”) with the same investment objective as the Fund. The assets from that CIT were converted into the HSBC Investor Mid-Cap Fund on July 1, 2000. The CIT was not registered with the Securities & Exchange Commission (SEC) and thus was not subject to certain investment restrictions that are imposed on the Fund. If the CIT had been registered with the SEC, its performance might have been adversely affected. Performance assumes reinvestment of dividends and distributions.

The Fund’s performance is measured against the S&P MidCap 400 Index, an unmanaged index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	18

Portfolio Reviews

HSBC Investor Opportunity Fund

(Advisor, Class A Shares, B Shares and C Shares)

by William A. Muggia

President–Chief Investment Officer

Westfield Capital Management

The HSBC Investor Opportunity Fund (“the Fund”) seeks to provide its shareholders with long-term growth of capital by investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Funds employ a two-tier structure, commonly referred to as “master-feeder.” The Fund invest all of its investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management Company, LLC as sub-investment adviser.

The Portfolio invests primarily in common stocks of small and medium-sized companies that may have the potential to become major enterprises.

Investment Concerns

Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.

Market Commentary

For the six month period ended April 30, 2008, the Class A Shares of the Fund produced a -3.00% return (without sales charge) and the Class I Shares (previously the Advisor Class Shares) produced a -2.69% return. The Funds’ benchmarks, the Russell 2500™ Growth Index¹ and the Lipper Mid-Cap Growth Funds Average¹, returned -11.37% and -10.98%, respectively.

Past performance is no guarantee of future results.

Portfolio Performance

Myriad macroeconomic ills plagued U.S. investors during the period. A downturn in the U.S. economy, increasing inflationary pressures and continuing tumult in the banking system weighed on the financial markets. Despite an unprecedented campaign of fiscal and monetary measures designed to alleviate the economy’s various troubles, U.S. equities posted double-digit losses across multiple economic sectors. Energy was the only economic sector to end of the six-month period in the positive territory in both the small- and mid-cap universes.

The Fund’s outperformance of its benchmark was driven in large part by healthcare, energy, and technology shares. In particular, the performance of the Fund’s health care allocation benefited from positive stock selection within pharmaceuticals, health care equipment and biotechnology. Rising crude oil prices boosted energy stocks, helping them advance to record-high levels during the first months of 2008. An overweight position in the energy sector enhanced relative results, as did selection of certain domestic natural gas and equipment and services stocks. Selection among information technology stocks boosted relative performance, in part because the Fund’s valuation discipline helped it to avoid holding some of the stocks that posted the sector’s weakest returns.*

The biggest drag on relative performance came from financials. While we believe the portfolios limited exposure to this troubled sector should have been a source of good performance, weakness in certain positions hampered the aggregate results of the Fund’s financial-sector allocation. Industrials also restrained the Fund’s results. Declines among shares of trading companies and distributors particularly weighed on returns.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


19	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Opportunity Fund - As of April 30, 2008


Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)⁵

As of April 30, 2008	Inception Date	Six Months^†	1 Year	5 Year	10 Year	Since Inception	Gross	Net

HSBC Investor Opportunity Fund Class A¹	9/23/96	-7.83	7.34	17.13	8.24	10.46	1.77	1.65

HSBC Investor Opportunity Fund Class B²	1/6/98	-5.78	9.29	17.43	8.32	9.89	2.52	2.40

HSBC Investor Opportunity Fund Class C³	11/4/98	-3.95	11.46	17.46	—	10.59	2.52	2.40

HSBC Investor Opportunity Fund Class I**	9/3/96	-2.69	12.31	18.71	9.32	12.23	1.03	1.03

Russell 2500™ Growth Index⁴	—	-11.37	-3.56	14.88	4.79	N/A	N/A	N/A

Lipper Mid-Cap Growth Funds Average⁴	—	-10.98	0.59	13.78	5.59	N/A	N/A	N/A


**	The Class I Shares of the HSBC Investor Opportunity Fund are part of the Advisor Funds Trust.

¹	Reflects the maximum sales charge of 5.00%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms.

⁵	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund’s performance is measured against the Russell 2500™ Growth Index, an unmanaged index which measures the performance of the small to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The performance for the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	20

Portfolio Reviews

HSBC Investor Value Fund

(Class A Shares, B Shares, C Shares and I Shares)

by Jon D. Bosse, CFA

Chief Investment Officer

NWQ Investment Management Co., LLC

The HSBC Investor Value Fund (the “Fund”) seeks long-term growth of capital and income by investing primarily in U.S. and foreign companies with large and medium capitalizations that possess hidden opportunities underpriced by the market. The Fund utilizes a two tier structure, commonly known as a “master-feeder” and invests all of its investable assets in the HSBC Investor Value Portfolio (the “Portfolio”), which acts as the master fund. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as subadviser.

Investment Concerns

Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.

Market Commentary

The Fund returned -15.17% (without sales charge) for the Class A Shares and -10.60% for the Class I Shares for the six month period ended April 30, 2008. That compared to a -9.83% return for the Russell 1000^® Value Index¹ and a -11.08% return for the Lipper Multi-Cap Value Funds Average¹.

Past performance is no guarantee of future results.

Portfolio Performance

Equity markets declined, both in the United States and worldwide, due to concerns about the outlook for the global economy and the unprecedented deterioration in the credit markets. Value stocks generally outperformed growth stocks, while U.S. equity markets demonstrated tremendous volatility. Stock prices appreciated materially near the end of the period—particularly among financial stocks—following the Federal Reserve’s aggressive actions to lower key interest rates.

The Fund’s absolute return was enhanced by strong performance from energy shares. Energy stocks performed well due to appreciation in oil prices and increasing production profiles. Select stocks in the steel and transportation industries also contributed to the Fund’s absolute return. The Fund’s exposure to the financial sector negatively influenced performance, as uncertainty about the extent of the problems related to the subprime mortgage crisis adversely affected stock prices within the sector.*

Although the Fund’s underweight position in the lagging financial sector helped performance relative to the index, selection among financial stocks caused the Fund’s allocation to that sector to weigh on relative returns. All but one of the Fund’s financial holdings declined in value during the period. An overweight position in the technology sector also hurt performance against the index, as technology shares were weighed down by concerns that continued economic weakness could lead to reduced corporate and consumer technology spending.*


*	Portfolio composition is subject to change.

¹	For additional information, please refer to the Glossary of Terms.


21	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Value Fund - As of April 30, 2008


Fund Performance				Average Annual Total Return (%)			Expense Ratio (%)⁶

As of April 30, 2008	Inception Date		Six Months^†	1 Year	3 Year	Since Inception	Gross	Net

HSBC Investor Value Fund Class A¹		5/7/04⁵	-15.17	-14.54	7.05	8.63	1.24	1.20

HSBC Investor Value Fund Class B²		5/7/04⁵	-14.28	-13.96	7.52	9.02	1.99	1.95

HSBC Investor Value Fund Class C³		5/7/04⁵	-11.88	-11.54	8.06	9.20	1.99	1.95

HSBC Investor Value Fund Class I		5/7/04⁵	-10.60	-9.80	9.13	10.32	0.99	0.95

Russell 1000^®Value Index⁴		—	-9.83	-8.97	8.36	N/A	N/A	N/A

Lipper Multi-Cap Value Funds Average⁴		—	-11.08	-10.13	7.22	N/A	N/A	N/A


¹	Reflects the maximum sales charge of 5.00%.

²	Reflects the contingent deferred sales charge, maximum of 4.00%.

³	Reflects the contingent deferred sales charge, maximum of 1.00%.

⁴	For additional information, please refer to the Glossary of Terms.

⁵	The HSBC Investor Value Fund was initially offered for purchase effective May 7, 2004, however, no shareholder activity occurred until May 10, 2004.

⁶	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.

^†	Aggregate total return.

The Fund’s performance is measured against the Russell 1000^®Value Index, an unmanaged index which measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The performance of the index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these value-added services. Investors cannot invest directly in an index.


HSBC INVESTOR FAMILY OF FUNDS	22

Portfolio Reviews

Portfolio Composition*

April 30, 2008

(Unaudited)


HSBC Investor Core Plus Fixed Income Portfolio

Investment Allocation	Percentage of Investments at Value

Corporate Bonds	27.6	%

Mortgage Backed Securities	23.5	%

U.S. Treasury Securities	13.9	%

Commercial Mortgage Backed Securities	10.3	%

Cash and Equivalents	9.4	%

Asset Backed Securities	7.8	%

Collateralized Mortgage Obligations	5.0	%

Foreign Bond	2.5	%

Total	100.0	%


HSBC Investor High Yield Fixed Income Portfolio

Investment Allocation	Percentage of Investments at Value

Corporate Bonds	98.0	%

Cash and Equivalents	2.0	%

Common Stock	0.0	%

Total	100.0	%


HSBC Investor Intermediate Duration Fixed Income Portfolio

Investment Allocation	Percentage of Investments at Value

Mortgage Backed Securities	27.0	%

Corporate Bond	26.5	%

U.S. Treasury Securities	11.4	%

Commercial Mortgage Backed Securities	10.0	%

Asset Backed Securities	7.5	%

Cash and Equivalents	7.5	%

Collateralized Mortgage Obligations	6.3	%

Foreign Bond	3.8	%

Total	100.0	%


HSBC Investor New York Tax-Free Bond Fund

Investment Allocation	Percentage of Investments at Value

Municipal Bonds	95.4	%

Cash and Equivalents	4.6	%

Total	100.0	%


HSBC Investor Growth Portfolio

Investment Allocation	Percentage of Investments at Value

Information Technology	18.7	%

Health Care	18.0	%

Industrials	20.2	%

Consumer Staples	11.2	%

Consumer Discretionary	4.9	%

Financials	7.7	%

Energy	9.5	%

Materials	4.4	%

Cash and Equivalents	5.4	%

Total	100.0	%


HSBC Investor Growth and Income Fund

Investment Allocation	Percentage of Investments at Value

Information Technology	24.4	%

Industrials	24.1	%

Consumer Discretionary	16.9	%

Financials	13.7	%

Materials	6.5	%

Energy	1.1	%

Consumer Staples	3.6	%

Telecommunications	3.3	%

Health Care	3.8	%

Cash and Equivalents	2.6	%

Total	100.0	%


HSBC International Equity Portfolio

Investment Allocation	Percentage of Investments at Value

Europe	65.2	%

Japan	21.8	%

Australia & Far East	6.1	%

Canada	4.8	%

Other	1.5	%

Cash and Equivalents	0.6	%

Total	100.0	%

* Portfolio composition is subject to change.


23	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

Portfolio Composition*
April 30, 2008
(Unaudited)


HSBC Investor Mid-Cap Fund

Investment Allocation	Percentage of Investments at Value

Industrials	16.3	%

Information Technology	9.8	%

Consumer Discretionary	12.6	%

Financials	15.7	%

Health Care	10.8	%

Materials	9.1	%

Energy	8.5	%

Utilities	7.6	%

Consumer Staples	3.3	%

Business Services	3.9	%

Cash & Equivalents	1.3	%

Telecommunications	1.1	%

Total	100.0	%


HSBC Investor Opportunity Portfolio

Investment Allocation	Percentage of Investments at Value

Health Care	23.4	%

Information Technology	17.2	%

Industrials	15.3	%

Energy	15.2	%

Consumer Discretionary	12.6	%

Business Services	7.4	%

Cash and Equivalents	4.6	%

Financials	2.2	%

Consumer Staples	2.1	%

Total	100.0	%


HSBC Investor Value Portfolio

Investment Allocation	Percentage of Investments at Value

Financials	19.6	%

Energy	14.1	%

Industrials	11.3	%

Information Technology	10.4	%

Consumer Discretionary	9.0	%

Consumer Staples	7.1	%

Materials	6.8	%

Health Care	5.4	%

Cash	5.3	%

Telecommunication Services	4.8	%

Miscellaneous	3.1	%

Transportation	3.1	%

Total	100.0	%

* Portfolio composition is subject to change.


HSBC INVESTOR FAMILY OF FUNDS	24

HSBC INVESTOR NEW YORK TAX - FREE BOND FUND

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)

Variable Rate Demand Note – 1.7%


	Principal Amount($)		Value($)

New York – 1.7%
Long Island Power Authority Electrical Systems Revenue, Sub Series 3B, 2.29%, 5/1/33, (LOC Westdeutsche Landesbank) (a)		1,000,000		1,000,000


TOTAL VARIABLE RATE DEMAND NOTES (COST $1,000,000)				1,000,000


Municipal Bonds – 92.7%

New York – 81.3%
Buffalo, New York Fiscal Stability Authority Sales Tax & State Aid Revenue, 5.25%, 8/15/13, (MBIA Insured)		500,000		551,430
Long Island Power Authority Electrical Systems Revenue, 5.00%, 12/1/22, Callable 12/1/16 @ 100		500,000		515,465
Metropolitan Transportation Authority Revenue
5.25%, 11/15/11		1,000,000		1,068,770
5.75%, 7/1/13, Escrowed to Maturity		285,000		305,617
5.50%, 1/1/19, (MBIA Insured), Callable 7/1/12 @ 100		480,000		510,974
5.50%, 11/15/19, (FGIC Insured)		1,000,000		1,114,330
5.00%, 11/15/32, (FSA Insured), Callable 11/15/12 @ 100		1,625,000		1,648,010
Monroe County Airport Authority Revenue
5.63%, 1/1/10, AMT, (MBIA Insured)		1,240,000		1,277,820
5.75%, 1/1/14, AMT, (MBIA Insured)		750,000		799,875
New York City GO, 5.25%, 8/1/11
5.25%, 8/1/11		1,000,000		1,068,610
5.00%, 8/1/14		200,000		215,740
5.00%, 8/1/15		325,000		350,636
5.00%, 8/1/17		500,000		537,160
Series C, 5.00%, 8/1/16, (MBIA-IBC Insured), Callable 8/1/15 @ 100		500,000		543,145
New York City Housing Development Corp.
Revenue, 5.60%, 11/1/19, AMT, Callable 11/1/09 @ 101		100,000		101,995
New York City IDA Civic Facility Revenue, USTA National Tennis Center, 5.00%, 11/15/19, (FSA Insured), Callable 5/1/13 @ 100		1,000,000		1,050,360
New York City IDA Revenue, Queens Baseball Stadium, 5.00%, 1/1/18, (AMBAC Insured), Callable 1/1/17 @ 100		550,000		582,076
New York City IDA Special Facility Revenue, Terminal One Group Association, 5.00%, 1/1/09, AMT		1,000,000		1,011,190
New York City Municipal Water Finance Authority
5.00%, 6/15/34, Callable 6/15/13 @ 100		1,250,000		1,265,700
5.00%, 6/15/36, Callable 12/15/14 @ 100		1,000,000		1,014,580
New York City Transitional Finance Authority Building Aid Revenue
5.00%, 7/15/18, (FGIC Insured), Callable 1/15/17 @ 100		550,000		593,390
5.00%, 7/15/36, (FGIC Insured), Callable 1/15/17 @ 100		1,000,000		1,015,450

Municipal Bonds, continued


	Principal Amount($)		Value($)

New York, continued
New York City Transitional Finance Authority Revenue
5.25%, 5/1/17, Callable 5/1/11 @ 100		400,000		423,348
5.25%, 2/1/29, Callable 2/1/11 @ 100		1,540,000		1,611,333
New York State Dormitory Authority Revenue, Cooper Union, 6.00%, 7/1/19, (MBIA Insured), Callable 7/1/09 @ 101		350,000		368,883
New York State Dormitory Authority Revenue, Department of Health, 5.25%, 7/1/16, Callable 7/1/14 @ 100		500,000		542,950
New York State Dormitory Authority Revenue, Fashion Institute, 5.25%, 7/1/22, (FGIC Insured)		1,250,000		1,307,262
New York State Dormitory Authority Revenue, Master Boces PG, 5.25%, 8/15/19, (FSA Insured), Callable 8/15/12 @ 100		1,000,000		1,059,710
New York State Dormitory Authority Revenue, Mental Health
6.50%, 8/15/11		225,000		250,205
5.00%, 2/15/15, (FGIC Insured)		1,245,000		1,332,399
New York State Dormitory Authority Revenue, New York Presbyterian Hospital, 5.50%, 8/1/10, (AMBAC Insured)		750,000		793,507
New York State Dormitory Authority Revenue, New York University, 5.50%, 7/1/18, (AMBAC Insured)		500,000		569,305
New York State Dormitory Authority Revenue, NYSARC, Inc., 5.25%, 7/1/18, (FSA Insured), Callable 7/1/12 @ 101		1,460,000		1,557,397
New York State Dormitory Authority Revenue, Rockefeller University, 5.25%, 7/1/13, Callable 7/1/08 @ 101		500,000		507,210
New York State Dormitory Authority Revenue, Sloan Kettering Institute, 5.50%, 7/1/23, (MBIA Insured)		1,300,000		1,428,167
New York State Dormitory Authority Revenue, St. Johns University, 5.00%, 7/1/24, (MBIA Insured), Callable 7/1/17 @ 100		1,000,000		1,031,850
New York State Dormitory Authority Revenue, State Personal Income Tax Revenue, 5.00%, 3/15/23, Callable 3/15/15 @ 100		1,000,000		1,044,260
New York State Dormitory Authority Revenue, University of Rochester, 5.00%, 7/1/22, Callable 1/1/17 @100		500,000		512,695
New York State Environmental Facilities Corp.
5.70%, 1/15/14, Callable 7/15/09 @ 101		415,000		433,621
5.70%, 1/15/14		15,000		15,778
New York State Mortgage Agency Revenue, 5.60%, 10/1/14, AMT, Callable 5/5/08 @ 102		1,000,000		1,014,080
New York State Municipal Bond Bank Revenue, 5.50%, 12/1/12		850,000		932,178
New York State Thruway Authority Revenue, Personal Income Tax Revenue
5.00%, 3/15/19, (MBIA Insured), Callable 3/15/13 @ 100		1,400,000		1,456,350
5.00%, 3/15/21, (MBIA Insured), Callable 3/15/13 @ 100		500,000		514,780


25	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR NEW YORK TAX - FREE BOND FUND

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Municipal Bonds, continued


	Principal Amount($)		Value($)

New York, continued
New York State Thruway Authority Revenue, Second General Highway & Bridge,
5.00%, 4/1/22, (MBIA Insured), Callable 4/1/14 @ 100		1,000,000		1,043,890
New York State Thruway Authority Revenue, Service Contract Revenue, 5.50%, 4/1/11		1,000,000		1,077,200
New York State Urban Development Corp. Revenue
6.50%, 1/1/09, (MBIA Insured)		500,000		515,585
5.75%, 4/1/12		500,000		548,050
5.00%, 3/15/21, (FSA Insured), Callable 3/15/15 @100		1,000,000		1,052,410
5.13%, 1/1/22, Callable 7/1/14 @ 100		885,000		918,798
5.13%, 1/1/25, Prerefunded 1/1/11 @ 100		175,000		186,505
Onondaga County, Water Authority Revenue
5.00%, 9/15/14, (FSA Insured), Callable 9/15/10 @ 101		300,000		317,157
5.00%, 9/15/15, (FSA Insured), Callable 9/15/10 @ 101		665,000		701,455
Port Authority of New York & New Jersey Revenue
5.00%, 9/1/27, Callable 9/1/13 @ 100		795,000		816,552
5.38%, 3/1/28		1,100,000		1,185,965
Port Authority of New York & New Jersey
Special Obligation Revenue, 5.75%, 12/1/22, AMT, (MBIA Insured), Callable 5/19/08 @ 102		500,000		501,470
Suffolk County, New York GO
5.25%, 5/1/12, (FSA Insured)		515,000		560,629
5.25%, 5/1/15, (FSA Insured)		100,000		111,905
Syracuse Industrial Development Agency Revenue, 5.00%, 1/1/36, AMT, (XLCA Insured), Callable 1/1/17 @ 100		1,000,000		927,940
Tobacco Settlement Financing Corp., 5.50%, 6/1/21, Callable 6/1/13 @ 100		1,000,000		1,043,770
Webster, Central School District GO, 5.00%, 6/15/14, (FSA Insured)		500,000		548,605
Yonkers, New York, 5.00%, 12/1/14, (MBIA Insured)		750,000		814,950

				48,722,427

Puerto Rico – 11.4%
Puerto Rico Commonwealth, Highway & Transportation Authority Grant Antic Revenue
5.00%, 9/15/17, (MBIA Insured), Callable 3/15/14 @ 100		1,000,000		1,050,890
5.00%, 7/1/35, Prerefunded 7/1/15 @ 100		1,340,000		1,480,727
Puerto Rico Electric Power Authority Power Revenue, 5.25%, 7/1/22, (MBIA Insured)		1,000,000		1,061,690
Puerto Rico Municipal Finance Agency Revenue, 5.00%, 8/1/12		995,000		1,017,815
Puerto Rico Public Buildings Authority Revenue
5.25%, 7/1/33, (Commonwealth Guaranteed), Prerefunded 7/1/14 @ 100		10,000		10,940
5.25%, 7/1/33, (Commonwealth Guaranteed), Callable 7/1/14 @ 100		690,000		667,499

Municipal Bonds, continued


	Principal Amount($)		Value($)

Puerto Rico, continued
Puerto Rico Public Finance Corp. Revenue
5.25%, 8/1/29, (MBIA Insured), Callable 7/1/10 @ 101		1,000,000		1,024,900
5.38%, 6/1/18, (AMBAC Insured)		500,000		534,300

				6,848,761

TOTAL MUNICIPAL BONDS (COST $54,441,861)				55,571,188


Investment Companies – 4.5%

BlackRock Liquidity New York Money Fund Portfolio Institutional Shares, 2.27% (b)		2,711,423		2,711,423
Northern Institutional Diversified Assets Portfolio, Shares class, 2.33% (b)		15,210		15,210

TOTAL INVESTMENT COMPANIES (COST $2,726,633)				2,726,633

TOTAL INVESTMENTS (COST $58,168,494) — 98.9%				59,297,821

Percentages indicated are based on net assets of $59,939,627.


(a)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.

(b)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.


AMBAC	— American Municipal Bond Assurance Corp.
AMT	— Interest on security is subject to federal alternative minimum tax
FGIC	— Financial Guaranty Insurance Co.
FSA	— Financial Security Assurance
GO	— General Obligation
IDA	— Industrial Development Agency
LOC	— Letter of Credit
MBIA	— Municipal Bond Insurance Association
XLCA	— XL Capital Assurance


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	26

HSBC INVESTOR GROWTH AND INCOME FUND

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)

Common Stocks – 97.4%


	Shares		Value($)

Advertising – 0.6%
Lamar Advertising Co. (a)		6,400		253,056


Aerospace & Defense – 4.8%
The Boeing Co.		11,500		975,890
United Technologies Corp.		12,900		934,863

				1,910,753


Automotive & Transport – 11.4%
BorgWarner, Inc.		30,000		1,474,500
DaimlerChrysler AG		9,600		743,232
Johnson Controls, Inc.		32,000		1,128,320
PACCAR, Inc.		25,000		1,183,000

				4,529,052


Chemicals – 6.5%
Ecolab, Inc.		19,400		891,624
Monsanto Co.		7,800		889,356
Sigma-Aldrich Corp.		14,000		798,280

				2,579,260


Computer Software – 7.4%
Adobe Systems, Inc. (a)		15,500		577,995
Electronic Arts, Inc. (a)		19,400		998,518
Intuit, Inc. (a)		14,200		382,974
Salesforce.com, Inc. (a)		14,499		967,518

				2,927,005


Computers – 8.9%
Apple, Inc. (a)		13,000		2,261,350
Hewlett-Packard Co.		14,200		658,170
Intel Corp.		27,400		609,924

				3,529,444


Consumer Products – 4.3%
Nike, Inc., Class B		19,500		1,302,600
PepsiCo, Inc.		5,800		397,474

				1,700,074


Diversified Manufacturing Operations – 17.5%
Caterpillar, Inc.		12,000		982,560
Donaldson Co., Inc.		15,500		674,870
Jacobs Engineering Group, Inc. (a)		18,500		1,597,105
Kennametal, Inc.		27,800		966,606
Plum Creek Timber Co., Inc.		18,400		751,456
Tyco Electronics Ltd.		26,000		972,660
W. W. Grainger, Inc.		11,600		1,005,836

				6,951,093


Electronic Components & Semiconductors – 1.1%
NVIDIA Corp. (a)		22,500		462,375

Common Stocks, continued


	Shares		Value($)

Financial Services – 11.8%
American Express Co.		7,800		374,556
Ameriprise Financial, Inc.		7,000		332,430
BlackRock, Inc.		3,600		726,444
CME Group, Inc.		2,300		1,052,135
JP Morgan Chase & Co.		8,900		424,085
T. Rowe Price Group, Inc.		18,500		1,083,360
The Charles Schwab Corp.		31,800		686,880

				4,679,890


Health Care – 3.8%
Becton, Dickinson and Co.		6,000		536,400
Hologic, Inc. (a)		18,000		525,420
Zimmer Holdings, Inc. (a)		6,000		444,960

				1,506,780


Internet Related – 3.6%
Google, Inc., Class A (a)		2,500		1,435,725


Media – 2.4%
The Walt Disney Co.		30,000		972,900


Oil & Gas – 1.1%
Schlumberger Ltd.		4,300		432,365


Retail – 4.8%
Amazon.com, Inc. (a)		5,000		393,150
Costco Wholesale Corp.		9,000		641,250
Nordstrom, Inc.		13,000		458,380
Walgreen Co.		11,500		400,775

				1,893,555


Telecommunications – 4.3%
QUALCOMM, Inc.		9,000		388,710
Verizon Communications, Inc.		34,000		1,308,320

				1,697,030


Transportation – 3.1%
Burlington Northern Santa Fe Corp.		6,500		666,575
Expeditors International of Washington, Inc.		12,500		582,375

				1,248,950

TOTAL COMMON STOCKS (COST $29,928,431)				38,709,307


Investment Company – 2.6%

Northern Institutional Diversified
Assets Portfolio, Shares class, 2.33% (b)		1,013,743		1,013,743

TOTAL INVESTMENT COMPANY (COST $1,013,743)				1,013,743

TOTAL INVESTMENTS (COST $30,942,174) — 100.0%				39,723,050



Percentages indicated are based on net assets of $39,735,962.

(a)	Represents non-income producing security.

(b)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.


27	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR MID - CAP FUND

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Common Stocks – 97.7%


	Shares		Value($)

Advertising – 0.5%
Lamar Advertising Co. (a)		3,625		143,333

Aerospace & Defense – 2.3%
L-3 Communications Holdings, Inc.		5,500		612,975

Agricultural Chemicals – 2.9%
Compass Minerals International, Inc.		6,150		387,450
Syngenta AG ADR		6,375		377,272

				764,722

Banking – 1.3%
HDFC Bank Ltd. ADR		3,125		352,500

Biotechnology – 1.9%
BioMarin Pharmaceuticals, Inc. (a)		13,800		503,148

Business Services – 1.1%
Fidelity National Information Services, Inc.		6,300		227,178
Morningstar, Inc. (a)		1,050		60,879

				288,057

Chemicals – 5.3%
Airgas, Inc.		9,400		452,422
FMC Corp.		9,450		593,271
Praxair, Inc.		4,125		376,654

				1,422,347

Commercial Services – 2.6%
IHS, Inc., Class A (a)		5,850		386,393
Ritchie Brothers Auctioneers, Inc. ADR		12,675		316,241

				702,634

Communications – 1.7%
CommScope, Inc. (a)		9,650		458,857

Computer Services – 2.9%
Cognizant Technology Solutions Corp. (a)		9,025		291,056
FactSet Research Systems, Inc.		2,600		156,078
Wright Express Corp. (a)		9,825		324,225

				771,359

Computer Software – 3.1%
Akamai Technologies, Inc. (a)		5,150		184,216
Blackbaud, Inc.		12,750		299,497
MICROS Systems, Inc. (a)		7,600		270,940
VASCO Data Security International, Inc. (a)		5,125		51,711
VeriFone Holdings, Inc. (a)		2,200		24,618

				830,982

Computers – 0.9%
Logitech International S.A. (a)		8,400		253,428


Common Stocks, continued


	Shares		Value($)

Construction & Engineering – 1.5%
McDermott International, Inc. (a)		7,575		405,869

Consumer Products – 2.9%
Church & Dwight Co., Inc.		3,800		215,916
Gildan Activewear, Inc. (a)		6,825		175,607
Tempur-Pedic International, Inc.		9,950		110,545
Tupperware Brands Corp.		6,800		267,920

				769,988

Correctional Institutions – 1.4%
Corrections Corp. of America (a)		14,875		379,313

Distribution & Wholesale – 1.8%
LKQ Corp. (a)		21,875		476,000

Education – 1.0%
New Oriental Education & Technology Group, Inc. ADR (a)		3,450		258,957

Electronic Components & Semiconductors – 2.3%
Itron, Inc. (a)		4,200		390,936
Microchip Technology, Inc.		6,400		235,200

				626,136

Energy – 2.0%
Core Laboratories N.V. (a)		3,125		391,500
Foundation Coal Holdings, Inc.		2,400		143,952

				535,452

Environmental Services – 1.2%
Stericycle, Inc. (a)		6,225		332,291

Financial Services – 6.6%
Affiliated Managers Group, Inc. (a)		4,100		407,294
Annaly Capital Management, Inc.		24,850		416,486
BlackRock, Inc.		1,100		221,969
CME Group, Inc.		550		251,598
Eaton Vance Corp.		7,325		268,095
Jones Lang LaSalle, Inc.		2,425		188,204

				1,753,646

Food & Beverage – 3.3%
Central European Distribution Corp. (a)		7,525		458,423
Flowers Foods, Inc.		15,925		412,298

				870,721

Health Care – 9.0%
DaVita, Inc. (a)		3,800		199,158
Express Scripts, Inc. (a)		3,425		239,819
Hologic, Inc. (a)		12,026		351,039
Laboratory Corp. of America Holdings (a)		3,925		296,808
Psychiatric Solutions, Inc. (a)		6,725		233,425


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	28

HSBC INVESTOR MID - CAP FUND

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stocks, continued


	Shares		Value($)

Health Care, continued
ResMed, Inc. (a)		6,150		265,188
Techne Corp. (a)		925		67,081
VCA Antech, Inc. (a)		12,925		418,382
West Pharmaceutical Services, Inc.		6,950		326,024

				2,396,924

Industrial Manufacturing – 2.2%
Interface, Inc., Class A		8,025		103,041
Oshkosh Corp.		8,850		359,310
Snap-on, Inc.		2,100		124,551

				586,902

Insurance – 4.5%
Assurant, Inc.		5,050		328,250
Axis Capital Holdings Ltd.		10,350		350,968
Fidelity National Financial, Inc., Class A		14,100		225,459
Proassurance Corp. (a)		5,700		301,131

				1,205,808

Leisure – 1.1%
Penn National Gaming, Inc. (a)		7,200		307,584

Metal Processors & Fabrication – 1.0%
Carpenter Technology Corp.		5,050		258,964

Oil & Gas – 8.7%
Atlas America, Inc.		5,125		356,495
Enbridge, Inc.		3,300		135,894
FMC Technologies, Inc. (a)		8,775		589,680
Oil States International, Inc. (a)		4,575		229,025
Southwestern Energy Co. (a)		10,700		452,717
XTO Energy, Inc.		9,041		559,276

				2,323,087

Real Estate – 2.2%
Alexandria Real Estate Equities, Inc.		2,800		294,084
Essex Property Trust, Inc.		2,500		297,500

				591,584

Retail – 1.1%
Hanesbrands, Inc (a)		8,300		290,666

Specialty Retail – 4.2%
Dick’s Sporting Goods, Inc. (a)		11,750		336,050
GameStop Corp., Class A (a)		6,475		356,384
Penske Automotive Group, Inc.		7,425		155,405
Tiffany & Co.		6,250		272,125

				1,119,964

Telecommunications – 1.6%
American Tower Corp., Class A (a)		7,050		306,111
NII Holdings, Inc. (a)		2,850		130,359

				436,470


Common Stocks, continued


	Shares		Value($)

Transportation – 0.9%
Expeditors International of Washington, Inc.		5,000		232,950

Utilities – 7.6%
Equitable Resources, Inc.		10,025		665,359
ITC Holdings Corp.		7,925		442,057
Northeast Utilities		17,925		471,786
NorthWestern Corp.		4,750		117,895
Wisconsin Energy Corp.		6,950		329,847

				2,026,944

Wire & Cable Products – 3.1%
Belden, Inc.		6,575		221,840
General Cable Corp. (a)		9,000		603,000

				824,840

TOTAL COMMON STOCKS (COST $20,321,699)				26,115,402

Investment Companies – 2.5%

MidCap S&P Depositary Receipt Trust Series 1	2,160	328,860
Northern Institutional Diversified Assets Portfolio, 2.33% (b)	344,094	344,094

TOTAL INVESTMENT COMPANIES (COST $659,569)		672,954

TOTAL INVESTMENTS (COST $20,981,268) — 100.2%		26,788,356



Percentages indicated are based on net assets of $26,744,067.

(a)	Represents non-income producing security.

(b)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

ADR—American Depositary Receipt


29	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

[This Page Intentionally Left Blank]

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited)


	Core Plus Fixed Income Fund (Advisor)			Core Plus Fixed Income Fund			High Yield Fixed Income Fund			Intermediate Duration Fixed Income Fund			New York Tax-Free Bond Fund

Assets:
Investments in Affiliated Portfolios	$	69,849,813		$	15,487,284		$	9,029,258		$	13,051,798		$	—
Investments in non-affiliates, at value		—			—			—			—			59,297,821
Interest and dividends receivable		—			—			—			—			810,406
Receivable for capital shares issued		268,629			50,789			55,881			42,244			192,022
Receivable from Investment Adviser		15,258			9,441			14,434			12,219			—
Prepaid expenses and other assets		6,312			3,976			6,620			3,793			5,284

Total Assets		70,140,012			15,551,490			9,106,193			13,110,054			60,305,533

Liabilities:
Dividends payable		269,748			53,382			59,542			46,322			173,525
Payable for capital shares redeemed		111,018			31,947			10,558			100			138,247
Accrued expenses and other liabilities:
Investment Management		—			—			—			—			12,097
Administration		4,560			731			305			1,117			5,246
Distribution		—			3,057			1,653			2,936			4,530
Shareholder Servicing		—			3,171			1,246			755			7,827
Compliance Service		79			17			12			16			118
Transfer Agent		4,587			9,874			15,664			7,962			8,855
Other		27,193			55			—			1,520			15,461

Total Liabilities		417,185			102,234			88,980			60,728			365,906

Net Assets	$	69,722,827		$	15,449,256		$	9,017,213		$	13,049,326		$	59,939,627

Composition of Net Assets:
Capital	$	72,249,942		$	16,583,075		$	9,624,073		$	13,635,777		$	58,670,849
Accumulated net investment income (loss)		78,601			3,798			(2,958	)		15,346			2,892
Accumulated net realized gains (losses) from investment and foreign currency transactions		(310,925	)		(625,757	)		(30,309	)		(10,686	)		136,559
Unrealized appreciation (depreciation) from investments and foreign currencies		(2,294,791	)		(511,860	)		(573,593	)		(591,111	)		1,129,327

Net Assets	$	69,722,827		$	15,449,256		$	9,017,213		$	13,049,326		$	59,939,627

Net Assets:
Class A Shares	$	—		$	12,457,784		$	3,458,878		$	1,341,750		$	30,919,819
Class B Shares		—			2,887,821			2,327,944			2,049,631			6,491,537
Class C Shares		—			103,651			417,182			288,157			537,328
Class I Shares		69,722,827			—			2,813,209			9,369,788			21,990,943

	$	69,722,827		$	15,449,256		$	9,017,213		$	13,049,326		$	59,939,627

Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		—			1,230,544			370,189			139,269			2,820,790
Class B Shares		—			284,944			249,039			212,327			592,803
Class C Shares		—			10,259			44,548			29,860			48,885
Class I Shares		7,048,456			—			301,049			971,043			2,006,070

Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	—		$	10.12		$	9.34		$	9.63		$	10.96
Class B Shares*	$	—		$	10.13		$	9.35		$	9.65		$	10.95
Class C Shares*	$	—		$	10.10		$	9.36		$	9.65		$	10.99
Class I Shares	$	9.89		$	—		$	9.34		$	9.65		$	10.96
Maximum Sales Charge—Class A Shares		—	%		4.75	%		4.75	%		4.75	%		4.75	%

Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares	$	—		$	10.62		$	9.81		$	10.11		$	11.51

Total Investments, at cost													^$	58,168,494



* Redemption Price per share varies by length of time shares are held.

30	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued)


	Growth Fund			Growth and Income Fund			International Equity Fund			Mid-Cap Fund			Opportunity Fund

Assets:
Investments in Affiliated Portfolios	$	52,689,294		$	—		$	318,224,539		$	—		$	17,018,708
Investments in non-affiliates, at value		—			39,723,050			—			26,788,356			—
Interest and dividends receivable		—			30,493			—			9,884			—
Receivable for capital shares issued		53,804			81			52,419			512			864
Receivable for investments sold		—			—			—			79,458			—
Reclaims receivable		—			—			412,118			—			—
Receivable from Investment Adviser		—			—			—			1,913			4,328
Prepaid expenses and other assets		12,316			23,370			9,849			8,955			4,522

Total Assets		52,755,414			39,776,994			318,698,925			26,889,078			17,028,422

Liabilities:
Payable for investments purchased		—			—			—			105,123			—
Payable for capital shares redeemed		221,474			3,088			136,033			4,674			27,855
Accrued expenses and other liabilities:
Investment Management		—			17,368			—			9,663			—
Administration		1,719			10,081			12,934			4,816			872
Distribution		899			2,438			—			2,858			1,712
Shareholder Servicing		5,316			1,210			—			1,964			3,368
Compliance Service		92			49			354			62			20
Transfer Agent		18,146			3,093			5,109			12,510			16,642
Other		17,171			3,705			133,264			3,341			710

Total Liabilities		264,817			41,032			287,694			145,011			51,179

Net Assets	$	52,490,597		$	39,735,962		$	318,411,231		$	26,744,067		$	16,977,243

Composition of Net Assets:
Capital	$	42,389,292		$	32,538,138		$	259,800,255		$	19,712,386		$	13,358,584
Accumulated net investment income (loss)		(27,628	)		37,709			2,525,389			(71,486	)		(113,681	)
Accumulated net realized gains (losses) from investment and foreign currency transactions		1,828,323			(1,620,761	)		17,640,385			1,296,079			2,215,826
Unrealized appreciation (depreciation) from investments and foreign currencies		8,300,610			8,780,876			38,445,202			5,807,088			1,516,514

Net Assets	$	52,490,597		$	39,735,962		$	318,411,231		$	26,744,067		$	16,977,243


Net Assets:
Class A Shares	$	24,248,248		$	2,097,895		$	—		$	5,121,769		$	12,863,013
Class B Shares		1,367,842			3,932,324			—			4,459,198			3,798,946
Class C Shares		79,891			29,828			—			69,233			315,284
Class I Shares		26,794,616			33,675,915			318,411,231			17,093,867			—

	$	52,490,597		$	39,735,962		$	318,411,231		$	26,744,067		$	16,977,243

Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,554,632			166,413			—			601,709			1,199,689
Class B Shares		93,678			321,948			—			570,322			410,303
Class C Shares		5,438			2,421			—			8,762			33,479
Class I Shares		1,708,322			2,659,784			16,000,058			1,960,580			—

Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	15.60		$	12.61		$	—		$	8.51		$	10.72
Class B Shares*	$	14.60		$	12.21		$	—		$	7.82		$	9.26
Class C Shares*	$	14.69		$	12.32		$	—		$	7.90		$	9.42
Class I Shares	$	15.68		$	12.66		$	19.90		$	8.72		$	—
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	$	16.42		$	13.27		$	—		$	8.96		$	11.28

Total Investments, at cost				$	30,942,174					$	20,981,268

* Redemption Price per share varies by length of time shares are held.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	31

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued)


	Opportunity Fund (Advisor)			Overseas Equity Fund			Value Fund

Assets:
Investments in Affiliated Portfolios	$	152,208,035		$	14,296,082		$	47,946,748
Receivable for capital shares issued		116,174			639			187,585
Reclaims receivable		—			67,503			—
Receivable from Investment Adviser		—			1,184			—
Prepaid expenses and other assets		4,830			5,014			7,819

Total Assets		152,329,039			14,370,422			48,142,152

Liabilities:
Payable for capital shares redeemed		31,207			43,531			188,658
Accrued expenses and other liabilities:
Administration		7,981			715			1,645
Distribution		—			1,839			950
Shareholder Servicing		—			2,948			4,664
Compliance Service		225			19			76
Transfer Agent		6,328			11,872			11,282
Other		50,941			1,394			5,842

Total Liabilities		96,682			62,318			213,117

Net Assets	$	152,232,357		$	14,308,104		$	47,929,035

Composition of Net Assets:
Capital	$	123,917,932		$	8,074,279		$	44,853,278
Accumulated net investment income (loss)		(417,404	)		45,460			123,798
Accumulated net realized gains (losses) from investment and foreign currency transactions		15,269,652			2,421,431			874,923
Unrealized appreciation (depreciation) from investments and foreign currencies		13,462,177			3,766,934			2,077,036

Net Assets	$	152,232,357		$	14,308,104		$	47,929,035

Net Assets:
Class A Shares	$	—		$	11,320,043		$	21,117,177
Class B Shares		—			2,858,873			1,405,672
Class C Shares		—			129,188			100,162
Class I Shares		152,232,357			—			25,306,024

	$	152,232,357		$	14,308,104		$	47,929,035

Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		—			769,755			1,567,698
Class B Shares		—			206,626			109,466
Class C Shares		—			9,035			7,734
Class I Shares		11,343,702			—			1,880,969

Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	—		$	14.71		$	13.47
Class B Shares*	$	—		$	13.84		$	12.84
Class C Shares*	$	—		$	14.30		$	12.95
Class I Shares	$	13.42		$	—		$	13.45
Maximum Sales Charge—Class A Shares		—	%		5.00	%		5.00	%

Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares	$	—		$	15.48		$	14.18

* Redemption Price per share varies by length of time shares are held.


32	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.


HSBC INVESTOR FAMILY OF FUNDS

Statements of Operations—For the six months ended April 30, 2008 (Unaudited)


	Core Plus Fixed Income Fund (Advisor)			Core Plus Fixed Income Fund			High Yield Fixed Income Fund			Intermediate Duration Fixed Income Fund			New York Tax-Free Bond Fund

Investment Income:
Interest	$	—		$	—		$	—		$	—		$	1,282,089
Dividends		—			—			—			—			17,307
Investment Income from Affiliated Portfolios (a)		2,031,955			454,866			398,910			367,447			—
Expenses from Affiliated Portfolios (a)		(212,661	)		(47,573	)		(53,763	)		(61,544	)		—

Total Investment Income (Loss)		1,819,294			407,293			345,147			305,903			1,299,396

Expenses:
Investment Management		—			—			—			—			74,525
Administration		8,422			1,882			996			1,571			13,623
Distribution:
Class B Shares		—			12,718			8,584			9,721			28,557
Class C Shares		—			344			1,096			1,104			2,304
Shareholder Servicing:
Class A Shares		—			16,205			4,344			1,182			39,210
Class B Shares		—			4,239			2,861			3,241			9,519
Class C Shares		—			115			365			368			768
Accounting		4,475			9,450			11,935			11,935			37,227
Compliance Service		205			45			27			37			312
Custodian		—			—			—			—			1,964
Printing		11,558			3,680			2,110			3,124			11,094
Professional		1,295			285			333			224			1,579
Transfer Agent		13,914			26,529			29,803			21,891			27,002
Trustee		439			96			68			78			683
Registration		—			39			141			—			139
Other		6,805			3,579			5,760			1,378			5,478

Total expenses before fee reductions		47,113			79,206			68,423			55,854			253,984
Fees reduced by Investment Adviser		(94,331	)		(56,274	)		(80,981	)		(74,363	)		—

Net Expenses (Recoveries)		(47,218	)		22,932			(12,558	)		(18,509	)		253,984


Net Investment Income (Loss)		1,866,512			384,361			357,705			324,412			1,045,412


Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment and foreign currency transactions		(225,447	)		(47,559	)		(30,309	)		(6,684	)		136,561
Change in unrealized appreciation (depreciation) from investment and foreign currencies		(2,213,350	)		(495,180	)		(475,496	)		(511,952	)		(525,303	)


Net realized/unrealized gains (losses) from investment and foreign currency transactions		(2,438,797	)		(542,739	)		(505,805	)		(518,636	)		(388,742	)

Change In Net Assets Resulting From Operations	$	(572,285	)	$	(158,378	)	$	(148,100	)	$	(194,224	)	$	656,670

(a) With the exception of New York Tax-Free Bond Fund, represents amounts allocated from the respective Affiliated Portfolios.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	33

HSBC INVESTOR FAMILY OF FUNDS

Statements of Operations—For the year ended April 30, 2008 (Unaudited) (continued)


	Growth Fund			Growth and Income Fund			International Equity Fund			Mid-Cap Fund			Opportunity Fund

Investment Income:
Dividends	$	—		$	244,389		$	—		$	109,249		$	—
Investment Income from Affiliated Portfolios (a)		270,181			—			5,134,477			—			35,352
Tax reclaims (a)		—			—			78,198			—			—
Foreign tax withholding from Affiliated Portfolios (a)		—			—			(523,931	)		—			—
Expenses from Affiliated Portfolios (a)		(165,376	)		—			(1,248,435	)		—			(74,690	)

Total Investment Income (Loss)		104,805			244,389			3,440,309			109,249			(39,338	)


Expenses:
Investment Management		—			121,424			—			101,625			—
Administration		6,325			9,257			36,692			6,195			1,954
Distribution:
Class B Shares		5,378			15,942			—			19,214			15,777
Class C Shares		325			143			—			261			1,135
Shareholder Servicing:
Class A Shares		32,747			2,278			—			6,146			15,725
Class B Shares		1,793			5,314			—			6,405			5,259
Class C Shares		108			48			—			87			378
Accounting		14,848			23,643			4,475			32,194			9,450
Compliance Service		196			188			910			148			48
Custodian		—			1,466			—			4,911			—
Printing		15,810			2,857			55,042			6,422			3,716
Professional		2,010			679			5,348			706			307
Transfer Agent		45,787			21,377			16,225			38,780			42,912
Trustee		451			509			1,955			330			103
Registration		175			—			—			—			—
Other		6,480			11,675			17,186			4,926			4,317

Total expenses before fee reductions		132,433			216,800			137,833			228,350			101,081
Fees reduced by Investment Adviser		—			(10,119	)		—			(47,615	)		(26,738	)

Net Expenses		132,433			206,681			137,833			180,735			74,343


Net Investment Income (Loss)		(27,628	)		37,708			3,302,476			(71,486	)		(113,681	)


Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment and foreign currency transactions		1,848,491			4,130,541			17,845,317			1,388,759			2,271,366
Change in unrealized appreciation (depreciation) from investment and foreign currencies		(7,229,514	)		(8,893,645	)		(62,897,453	)		(4,679,551	)		(2,867,229	)

Net realized/unrealized gains (losses) from investment and foreign currency transactions		(5,381,023	)		(4,763,104	)		(45,052,136	)		(3,290,792	)		(595,863	)

Change In Net Assets Resulting From Operations	$	(5,408,651	)	$	(4,725,396	)	$	(41,749,660	)	$	(3,362,278	)	$	(709,544	)

(a) With the exception of Growth & Income Fund and the Mid-Cap Fund, represents amounts allocated from the respective Affiliated Portfolios.


34	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Operations—For the six months ended April 30, 2008 (Unaudited) (continued)


	Opportunity Fund (Advisor)			Overseas Equity Fund			Value Fund

Investment Income:
Investment Income from Affiliated Portfolios (a)	$	309,900		$	240,248		$	527,151
Tax reclaims (a)		—			3,307			—
Foreign tax withholding from Affiliated Portfolios (a)		—			(24,334	)		—
Expenses from Affiliated Portfolios (a)		(653,014	)		(60,212	)		(160,749	)

Total Investment Income (Loss)		(343,114	)		159,009			366,402


Expenses:
Administration		17,105			1,772			5,744
Distribution:
Class B Shares		—			11,298			5,739
Class C Shares		—			478			411
Shareholder Servicing:
Class A Shares		—			15,431			28,581
Class B Shares		—			3,766			1,913
Class C Shares		—			159			137
Accounting		4,475			9,450			11,935
Compliance Service		390			44			155
Printing		22,122			3,269			10,009
Professional		2,446			277			840
Transfer Agent		17,106			33,158			39,156
Trustee		822			96			298
Registration		—			—			136
Other		9,824			5,937			6,340

Total expenses before fee reductions		74,290			85,135			111,394
Fees reduced by Investment Adviser		—			(2,380	)		—

Net Expenses		74,290			82,755			111,394

Net Investment Income (Loss)		(417,404	)		76,254			255,008

Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment and foreign currency transactions		15,667,251			2,434,573			702,973
Change in unrealized appreciation (depreciation) from investment and foreign currencies		(20,258,246	)		(4,768,662	)		(7,081,129	)

Net realized/unrealized gains (losses) from investment and foreign currency transactions		(4,590,995	)		(2,334,089	)		(6,378,156	)

Change In Net Assets Resulting From Operations	$	(5,008,399	)	$	(2,257,835	)	$	(6,123,148	)

(a) Represents amounts allocated from the respective Affiliated Portfolios.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	35

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets


	Core Plus Fixed Income Fund (Advisor)						Core Plus Fixed Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	1,866,512		$	4,349,066		$	384,361		$	875,944
Net realized gains (losses) from investment and foreign currency transactions		(225,447	)		2,097,739			(47,559	)		433,571
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(2,213,350	)		(740,498	)		(495,180	)		(152,977	)

Change in net assets resulting from operations		(572,285	)		5,706,307			(158,378	)		1,156,538

Dividends:
Net investment income:
Class A Shares		—			—			(320,512	)		(704,651	)
Class B Shares		—			—			(71,168	)		(172,434	)
Class C Shares		—			—			(1,891	)		(5,092	)
Class I Shares		(1,908,129	)		(4,321,491	)		—			—
Net realized gains:
Class I Shares		(562,425	)		—			—			—

Change in net assets resulting from shareholder dividends		(2,470,554	)		(4,321,491	)		(393,571	)		(882,177	)

Change in net assets resulting from capital transactions		(8,626,805	)		(968,500	)		(1,413,096	)		388,105

Change in net assets		(11,669,644	)		416,316			(1,965,045	)		662,466
Net Assets:
Beginning of period		81,392,471			80,976,155			17,414,301			16,751,835

End of period	$	69,722,827		$	81,392,471		$	15,449,256		$	17,414,301

Accumulated net investment income (loss)	$	78,601		$	120,218		$	3,798		$	13,008


36	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Core Plus Fixed Income Fund (Advisor)						Core Plus Fixed Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	—		$	—		$	887,736		$	4,557,268
Dividends reinvested		—			—			304,156			673,120
Value of shares redeemed		—			—			(1,896,040	)		(4,086,990	)

Class A Shares capital transactions		—			—			(704,148	)		1,143,398

Class B Shares:
Proceeds from shares issued		—			—			75,743			133,221
Dividends reinvested		—			—			65,261			152,515
Value of shares redeemed		—			—			(926,527	)		(832,273	)

Class B Shares capital transactions		—			—			(785,523	)		(546,537	)

Class C Shares:
Proceeds from shares issued		—			—			79,000			16,800
Dividends reinvested		—			—			1,787			4,727
Value of shares redeemed		—			—			(4,212	)		(230,283	)

Class C Shares capital transactions		—			—			76,575			(208,756	)

Class I Shares:
Proceeds from shares issued		8,330,714			16,414,081			—			—
Dividends reinvested		1,908,463			2,820,496			—			—
Value of shares redeemed		(18,865,982	)		(20,203,077	)		—			—

Class I Shares capital transactions		(8,626,805	)		(968,500	)		—			—

Change in net assets resulting from capital transactions	$	(8,626,805	)	$	(968,500	)	$	(1,413,096	)	$	388,105

SHARE TRANSACTIONS:
Class A Shares:
Issued		—			—			86,643			435,107
Reinvested		—			—			29,465			64,455
Redeemed		—			—			(182,949	)		(391,171	)

Change in Class A Shares		—			—			(66,841	)		108,391

Class B Shares:
Issued		—			—			7,365			12,712
Reinvested		—			—			6,310			14,586
Redeemed		—			—			(90,239	)		(79,589	)

Change in Class B Shares		—			—			(76,564	)		(52,291	)

Class C Shares:
Issued		—			—			7,588			1,628
Reinvested		—			—			174			453
Redeemed		—			—			(403	)		(22,120	)

Change in Class C Shares		—			—			7,359			(20,039	)

Class I Shares:
Issued		831,383			1,596,631			—			—
Reinvested		188,587			274,454			—			—
Redeemed		(1,864,188	)		(1,968,988	)		—			—

Change in Class I Shares		(844,218	)		(97,903	)		—			—


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	37

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	High Yield Fixed Income Fund						Intermediate Duration Fixed Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	357,705		$	664,670		$	324,412		$	875,888
Net realized gains (losses) from investment and foreign currency transactions		(30,309	)		94,442			(6,684	)		792,234
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(475,496	)		(167,829	)		(511,952	)		(170,042	)

Change in net assets resulting from operations		(148,100	)		591,283			(194,224	)		1,498,080

Dividends:
Net investment income:
Class A Shares		(146,430	)		(307,911	)		(22,452	)		(41,612	)
Class B Shares		(87,814	)		(163,518	)		(53,171	)		(145,985	)
Class C Shares		(11,097	)		(18,030	)		(5,977	)		(19,081	)
Class I Shares		(115,650	)		(181,367	)		(250,578	)		(666,493	)
Net realized gains:
Class A Shares		(38,586	)		(15,636	)		(3,193	)		—
Class B Shares		(24,882	)		(6,846	)		(10,717	)		—
Class C Shares		(2,297	)		(757	)		(1,145	)		—
Class I Shares		(28,677	)		(8,215	)		(38,243	)		—

Change in net assets resulting from shareholder dividends		(455,433	)		(702,280	)		(385,476	)		(873,171	)

Change in net assets resulting from capital transactions		608,256			(533,751	)		(416,510	)		(4,796,641	)

Change in net assets		4,723			(644,748	)		(996,210	)		(4,171,732	)
Net Assets:
Beginning of period		9,012,490			9,657,238			14,045,536			18,217,268

End of period	$	9,017,213		$	9,012,490		$	13,049,326		$	14,045,536

Accumulated net investment income (loss)	$	(2,958	)	$	328		$	15,346		$	23,112


38	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	High Yield Fixed Income Fund						Intermediate Duration Fixed Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	267,574		$	1,101,456		$	618,706		$	91,672
Dividends reinvested		135,852			261,982			22,654			37,106
Value of shares redeemed		(400,388	)		(2,360,652	)		(65,825	)		(335,287	)

Class A Shares capital transactions		3,038			(997,214	)		575,535			(206,509	)

Class B Shares:
Proceeds from shares issued		123,235			542,167			19,722			53,039
Dividends reinvested		80,107			113,890			56,966			129,255
Value of shares redeemed		(160,472	)		(279,180	)		(896,749	)		(1,060,828	)

Class B Shares capital transactions		42,870			376,877			(820,061	)		(878,534	)

Class C Shares:
Proceeds from shares issued		224,205			83,515			1,650			16,250
Dividends reinvested		5,792			15,343			7,015			18,729
Value of shares redeemed		(17,912	)		(112,155	)		(13,313	)		(248,148	)

Class C Shares capital transactions		212,085			(13,297	)		(4,648	)		(213,169	)

Class I Shares:
Proceeds from shares issued		495,855			1,158,432			1,309,541			2,137,921
Dividends reinvested		143,424			188,601			256,529			500,994
Value of shares redeemed		(289,016	)		(1,247,150	)		(1,733,406	)		(6,137,344	)

Class I Shares capital transactions		350,263			99,883			(167,336	)		(3,498,429	)

Change in net assets resulting from capital transactions	$	608,256		$	(533,751	)	$	(416,510	)	$	(4,796,641	)

SHARE TRANSACTIONS:
Class A Shares:
Issued		28,737			107,567			63,794			9,160
Reinvested		14,450			25,689			2,302			3,707
Redeemed		(43,319	)		(230,848	)		(6,758	)		(33,428	)

Change in Class A Shares		(132	)		(97,592	)		59,338			(20,561	)

Class B Shares:
Issued		13,260			52,978			1,992			5,264
Reinvested		8,517			11,185			5,756			12,882
Redeemed		(17,137	)		(27,507	)		(91,649	)		(105,990	)

Change in Class B Shares		4,640			36,656			(83,901	)		(87,844	)

Class C Shares:
Issued		24,185			7,961			166			1,608
Reinvested		614			1,498			710			1,868
Redeemed		(1,916	)		(11,490	)		(1,347	)		(24,816	)

Change in Class C Shares		22,883			(2,031	)		(471	)		(21,340	)

Class I Shares:
Issued		52,804			113,787			132,872			215,480
Reinvested		15,270			18,529			25,986			49,957
Redeemed		(30,915	)		(121,825	)		(177,097	)		(612,503	)

Change in Class I Shares		37,159			10,491			(18,239	)		(347,066	)


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	39

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	New York Tax-Free Bond Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	1,045,412		$	2,140,227
Net realized gains (losses) from investment transactions		136,561			79,494
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(525,303	)		(832,199	)

Change in net assets resulting from operations		656,670			1,387,522

Dividends:
Net investment income:
Class A Shares		(563,589	)		(1,173,859	)
Class B Shares		(108,170	)		(304,650	)
Class C Shares		(8,727	)		(26,272	)
Class I Shares		(383,575	)		(608,516	)
Net realized gains:
Class A Shares		(41,981	)		(11,494	)
Class B Shares		(10,694	)		(4,734	)
Class C Shares		(809	)		(438	)
Class I Shares		(26,013	)		(5,055	)

Change in net assets resulting from shareholder dividends		(1,143,558	)		(2,135,018	)

Change in net assets resulting from capital transactions		(603,039	)		323,731

Change in net assets		(1,089,927	)		(423,765	)
Net Assets:
Beginning of period		61,029,554			61,453,319

End of period	$	59,939,627		$	61,029,554

Accumulated net investment income (loss)	$	2,892		$	21,541


40	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	New York Tax-Free Bond Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,920,436		$	7,409,045
Dividends reinvested		553,559			1,075,105
Value of shares redeemed		(3,606,675	)		(8,495,178	)

Class A Shares capital transactions		(1,132,680	)		(11,028	)

Class B Shares:
Proceeds from shares issued		54,413			141,720
Dividends reinvested		87,491			227,620
Value of shares redeemed		(2,234,490	)		(5,321,458	)

Class B Shares capital transactions		(2,092,586	)		(4,952,118	)

Class C Shares:
Proceeds from shares issued		32,415			17,375
Dividends reinvested		6,551			14,700
Value of shares redeemed		(304,882	)		(456,298	)

Class C Shares capital transactions		(265,916	)		(424,223	)

Class I Shares:
Proceeds from shares issued		3,672,485			7,546,678
Dividends reinvested		150,653			144,401
Value of shares redeemed		(934,995	)		(1,979,979	)

Class I Shares capital transactions		2,888,143			5,711,100

Change in net assets resulting from capital transactions	$	(603,039	)	$	323,731

SHARE TRANSACTIONS:
Class A Shares:
Issued		173,479			667,129
Reinvested		50,356			97,101
Redeemed		(326,338	)		(768,451	)

Change in Class A Shares		(102,503	)		(4,221	)

Class B Shares:
Issued		4,882			12,842
Reinvested		7,968			20,557
Redeemed		(202,238	)		(481,133	)

Change in Class B Shares		(189,388	)		(447,734	)

Class C Shares:
Issued		2,916			1,555
Reinvested		594			1,336
Redeemed		(27,445	)		(41,171	)

Change in Class C Shares		(23,935	)		(38,280	)

Class I Shares:
Issued		332,435			681,820
Reinvested		13,716			13,084
Redeemed		(84,782	)		(179,624	)

Change in Class I Shares		261,369			515,280


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	41

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Growth Fund						Growth and Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	(27,628	)	$	25,419		$	37,708		$	132,052
Net realized gains (losses) from investment and foreign currency transactions		1,848,491			2,943,213			4,130,541			4,390,113
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(7,229,514	)		11,547,046			(8,893,645	)		7,796,554

Change in net assets resulting from operations		(5,408,651	)		14,515,678			(4,725,396	)		12,318,719

Dividends:
Net investment income:
Class A Shares		—			(9,938	)		—			(2,732	)
Class I Shares		—			(37,788	)		(5,573	)		(123,746	)
Net realized gains:
Class A Shares		(1,383,410	)		(1,670,738	)		—			—
Class B Shares		(79,801	)		(114,608	)		—			—
Class C Shares		(4,866	)		(8,469	)		—			—
Class I Shares		(1,424,277	)		(1,202,878	)		—			—

Change in net assets resulting from shareholder dividends		(2,892,354	)		(3,044,419	)		(5,573	)		(126,478	)

Change in net assets resulting from capital transactions		(2,090,352	)		12,667,797			(8,089,213	)		(6,527,061	)

Change in net assets		(10,391,357	)		24,139,056			(12,820,182	)		5,665,180

Net Assets:
Beginning of period		62,881,954			38,742,898			52,556,144			46,890,964

End of period	$	52,490,597		$	62,881,954		$	39,735,962		$	52,556,144

Accumulated net investment income (loss)	$	(27,628	)	$	—		$	37,709		$	5,574


42	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Growth Fund						Growth and Income Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	681,581		$	8,418,213		$	490,494		$	395,680
Dividends reinvested		1,365,451			1,668,294			—			2,678
Value of shares redeemed		(4,645,258	)		(7,016,198	)		(252,034	)		(160,534	)

Class A Shares capital transactions		(2,598,226	)		3,070,309			238,460			237,824

Class B Shares:
Proceeds from shares issued		52,298			61,125			107,674			255,981
Dividends reinvested		79,295			112,067			—			—
Value of shares redeemed		(167,010	)		(260,768	)		(673,471	)		(894,133	)

Class B Shares capital transactions		(35,417	)		(87,576	)		(565,797	)		(638,152	)

Class C Shares:
Proceeds from shares issued		50			54			2,700			32,070
Dividends reinvested		4,866			8,413			—			—
Value of shares redeemed		(9,203	)		(197,005	)		(24,900	)		(17,991	)

Class C Shares capital transactions		(4,287	)		(188,538	)		(22,200	)		14,079

Class I Shares:
Proceeds from shares issued		2,793,693			13,457,915			2,937,781			4,767,318
Dividends reinvested		1,334,114			1,190,246			1,695			8,085
Value of shares redeemed		(3,580,229	)		(4,774,559	)		(10,679,152	)		(10,916,215	)

Class I Shares capital transactions		547,578			9,873,602			(7,739,676	)		(6,140,812	)

Change in net assets resulting from capital transactions	$	(2,090,352	)	$	12,667,797		$	(8,089,213	)	$	(6,527,061	)

SHARE TRANSACTIONS:
Class A Shares:
Issued		41,822			581,862			40,032			32,198
Reinvested		82,554			117,196			—			217
Redeemed		(289,031	)		(458,934	)		(19,453	)		(13,518	)

Change in Class A Shares		(164,655	)		240,124			20,579			18,897

Class B Shares:
Issued		3,578			4,219			8,920			22,376
Reinvested		5,109			8,307			—			—
Redeemed		(11,338	)		(18,265	)		(56,813	)		(74,961	)

Change in Class B Shares		(2,651	)		(5,739	)		(47,893	)		(52,585	)

Class C Shares:
Issued		3			4			230			2,459
Reinvested		312			620			—			—
Redeemed		(651	)		(13,792	)		(2,000	)		(1,489	)

Change in Class C Shares		(336	)		(13,168	)		(1,770	)		970

Class I Shares:
Issued		174,231			901,736			246,940			403,086
Reinvested		80,320			83,266			125			654
Redeemed		(227,222	)		(313,430	)		(809,468	)		(901,425	)

Change in Class I Shares		27,329			671,572			(562,403	)		(497,685	)


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	43

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	International Equity Fund						Mid-Cap Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	3,302,476		$	7,281,046		$	(71,486	)	$	(136,947	)
Net realized gains (losses) from investment and foreign currency transactions		17,845,317			29,592,826			1,388,759			3,529,981
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(62,897,453	)		37,623,613			(4,679,551	)		4,694,868

Change in net assets resulting from operations		(41,749,660	)		74,497,485			(3,362,278	)		8,087,902

Dividends:
Net investment income:
Class I Shares		(5,964,290	)		(7,179,951	)		—			—
Net realized gains:
Class A Shares		—			—			(598,216	)		(258,695	)
Class B Shares		—			—			(737,487	)		(522,684	)
Class C Shares		—			—			(9,380	)		(6,914	)
Class I Shares		(28,980,345	)		(24,089,605	)		(2,185,201	)		(1,159,580	)

Change in net assets resulting from shareholder dividends		(34,944,635	)		(31,269,556	)		(3,530,284	)		(1,947,873	)

Change in net assets resulting from capital transactions		9,388,419			58,740,573			704,930			(942,082	)

Change in net assets		(67,305,876	)		101,968,502			(6,187,632	)		5,197,947
Net Assets:
Beginning of period		385,717,107			283,748,605			32,931,699			27,733,752

End of period	$	318,411,231		$	385,717,107		$	26,744,067		$	32,931,699

Accumulated net investment income (loss)	$	2,525,389		$	5,187,203		$	(71,486	)	$	—


44	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	International Equity Fund						Mid-Cap Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	—		$	—		$	1,174,077		$	3,918,143
Dividends reinvested		—			—			592,760			256,489
Value of shares redeemed		—			—			(1,360,161	)		(2,634,591	)

Class A Shares capital transactions		—			—			406,676			1,540,041

Class B Shares:
Proceeds from shares issued		—			—			97,740			235,774
Dividends reinvested		—			—			721,029			514,297
Value of shares redeemed		—			—			(1,216,446	)		(3,072,777	)

Class B Shares capital transactions		—			—			(397,677	)		(2,322,706	)

Class C Shares:
Proceeds from shares issued		—			—			—			11,496
Dividends reinvested		—			—			9,380			6,914
Value of shares redeemed		—			—			(944	)		(49,388	)

Class C Shares capital transactions		—			—			8,436			(30,978	)

Class I Shares:
Proceeds from shares issued		23,554,365			84,946,485			1,492,450			5,100,905
Dividends reinvested		26,918,243			22,576,471			1,405,125			581,066
Value of shares redeemed		(41,084,189	)		(48,782,383	)		(2,210,080	)		(5,810,410	)

Class I Shares capital transactions		9,388,419			58,740,573			687,495			(128,439	)

Change in net assets resulting from capital transactions	$	9,388,419		$	58,740,573		$	704,930		$	(942,082	)

SHARE TRANSACTIONS:
Class A Shares:
Issued		—			—			132,741			421,403
Reinvested		—			—			65,426			29,999
Redeemed		—			—			(141,931	)		(264,389	)

Change in Class A Shares		—			—			56,236			187,013

Class B Shares:
Issued		—			—			12,387			27,574
Reinvested		—			—			86,351			64,127
Redeemed		—			—			(152,577	)		(354,120	)

Change in Class B Shares		—			—			(53,839	)		(262,419	)

Class C Shares:
Issued		—			—			—			1,231
Reinvested		—			—			1,113			855
Redeemed		—			—			(99	)		(5,550	)

Change in Class C Shares		—			—			1,014			(3,464	)

Class I Shares:
Issued		1,203,752			3,750,486			168,928			522,495
Reinvested		1,358,821			1,070,482			151,578			66,712
Redeemed		(2,055,706	)		(2,166,669	)		(234,026	)		(600,816	)

Change in Class I Shares		506,867			2,654,299			86,480			(11,609	)


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	45

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Opportunity Fund						Opportunity Fund (Advisor)

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	(113,681	)	$	(302,009	)	$	(417,404	)	$	(1,033,815	)
Net realized gains (losses) from investment and foreign currency transactions		2,271,366			6,380,550			15,667,251			46,538,426
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(2,867,229	)		(180,853	)		(20,258,246	)		1,172,860

Change in net assets resulting from operations		(709,544	)		5,897,688			(5,008,399	)		46,677,471

Dividends:
Net realized gains:
Class A Shares		(4,275,970	)		(2,977,887	)		—			—
Class B Shares		(1,656,407	)		(619,431	)		—			—
Class C Shares		(112,933	)		(38,717	)		—			—
Class I Shares		—			—			(45,200,235	)		(29,938,816	)

Change in net assets resulting from shareholder dividends		(6,045,310	)		(3,636,035	)		(45,200,235	)		(29,938,816	)

Change in net assets resulting from capital transactions		3,413,338			(11,472,973	)		25,848,113			(32,269,549	)

Change in net assets		(3,341,516	)		(9,211,320	)		(24,360,521	)		(15,530,894	)
Net Assets:
Beginning of period		20,318,759			29,530,079			176,592,878			192,123,772

End of period	$	16,977,243		$	20,318,759		$	152,232,357		$	176,592,878

Accumulated net investment income (loss)	$	(113,681	)	$	—		$	(417,404	)	$	—


46	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Opportunity Fund						Opportunity Fund (Advisor)

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,228,312		$	1,869,751		$	—		$	—
Dividends reinvested		4,182,326			2,944,516			—			—
Value of shares redeemed		(2,846,515	)		(15,806,644	)		—			—

Class A Shares capital transactions		2,564,123			(10,992,377	)		—			—

Class B Shares:
Proceeds from shares issued		95,655			187,082			—			—
Dividends reinvested		1,634,480			612,160			—			—
Value of shares redeemed		(986,801	)		(1,272,389	)		—			—

Class B Shares capital transactions		743,334			(473,147	)		—			—

Class C Shares:
Dividends reinvested		111,644			38,284			—			—
Value of shares redeemed		(5,763	)		(45,733	)		—			—

Class C Shares capital transactions		105,881			(7,449	)		—			—

Class I Shares:
Proceeds from shares issued		—			—			8,607,545			43,767,538
Dividends reinvested		—			—			33,936,218			12,322,958
Value of shares redeemed		—			—			(16,695,650	)		(88,360,045	)

Class I Shares capital transactions		—			—			25,848,113			(32,269,549	)

Change in net assets resulting from capital transactions	$	3,413,338		$	(11,472,973	)	$	25,848,113		$	(32,269,549	)

SHARE TRANSACTIONS:
Class A Shares:
Issued		113,626			131,660			—			—
Reinvested		393,076			228,434			—			—
Redeemed		(224,675	)		(1,154,412	)		—			—

Change in Class A Shares		282,027			(794,318	)		—			—

Class B Shares:
Issued		9,462			14,236			—			—
Reinvested		177,468			51,790			—			—
Redeemed		(106,367	)		(96,076	)		—			—

Change in Class B Shares		80,563			(30,050	)		—			—

Class C Shares:
Reinvested		11,915			3,204			—			—
Redeemed		(539	)		(3,443	)		—			—

Change in Class C Shares		11,376			(239	)		—			—

Class I Shares:
Issued		—			—			653,042			2,507,207
Reinvested		—			—			2,551,595			822,079
Redeemed		—			—			(1,184,331	)		(5,122,696	)

Change in Class I Shares		—			—			2,020,306			(1,793,410	)


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	47

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Overseas Equity Fund						Value Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	76,254		$	218,504		$	255,008		$	507,210
Net realized gains (losses) from investment and foreign currency transactions		2,434,573			3,031,889			702,973			4,408,682
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(4,768,662	)		1,272,896			(7,081,129	)		12,266

Change in net assets resulting from operations		(2,257,835	)		4,523,289			(6,123,148	)		4,928,158

Dividends:
Net investment income:
Class A Shares		(105,065	)		(474,482	)		(106,407	)		(213,752	)
Class B Shares		(4,715	)		(48,615	)		(1,460	)		(1,937	)
Class C Shares		(123	)		(2,106	)		(42	)		(113	)
Class I Shares		—			—			(154,878	)		(240,365	)
Net realized gains:
Class A Shares		(2,297,440	)		(2,532,363	)		(2,036,989	)		(2,315,837	)
Class B Shares		(617,609	)		(377,205	)		(144,385	)		(187,844	)
Class C Shares		(24,923	)		(18,983	)		(10,272	)		(14,732	)
Class I Shares		—			—			(2,265,906	)		(1,767,244	)

Change in net assets resulting from shareholder dividends		(3,049,875	)		(3,453,754	)		(4,720,339	)		(4,741,824	)

Change in net assets resulting from capital transactions		(306,949	)		(7,305,261	)		957,207			12,809,994

Change in net assets		(5,614,659	)		(6,235,726	)		(9,886,280	)		12,996,328
Net Assets:
Beginning of period		19,922,763			26,158,489			57,815,315			44,818,987

End of period	$	14,308,104		$	19,922,763		$	47,929,035		$	57,815,315

Accumulated net investment income (loss)	$	45,460		$	79,109		$	123,798		$	131,577


48	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMIY OF FUNDS

Statements of Changes in Net Assets (continued)


	Overseas Equity Fund						Value Fund

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	576,095		$	1,927,533		$	652,243		$	6,834,608
Dividends reinvested		2,383,150			2,979,338			2,132,056			2,504,967
Value of shares redeemed		(3,516,558	)		(12,347,048	)		(3,879,083	)		(6,945,162	)

Class A Shares capital transactions		(557,313	)		(7,440,177	)		(1,094,784	)		2,394,413

Class B Shares:
Proceeds from shares issued		109,672			299,816			66,633			81,743
Dividends reinvested		599,255			417,884			145,046			185,697
Value of shares redeemed		(483,573	)		(551,790	)		(235,344	)		(410,699	)

Class B Shares capital transactions		225,354			165,910			(23,665	)		(143,259	)

Class C Shares:
Proceeds from shares issued		3,001			28,000			50			—
Dividends reinvested		25,046			20,910			10,314			14,746
Value of shares redeemed		(3,037	)		(79,904	)		(11,826	)		(42,494	)

Class C Shares capital transactions		25,010			(30,994	)		(1,462	)		(27,748	)

Class I Shares:
Proceeds from shares issued		—			—			2,727,901			13,481,595
Dividends reinvested		—			—			2,320,088			1,920,064
Value of shares redeemed		—			—			(2,970,871	)		(4,815,071	)

Class I Shares capital transactions		—			—			2,077,118			10,586,588

Change in net assets resulting from capital transactions	$	(306,949	)	$	(7,305,261	)	$	957,207		$	12,809,994

SHARE TRANSACTIONS:
Class A Shares:
Issued		37,947			102,880			46,585			433,376
Reinvested		162,229			170,248			150,357			160,308
Redeemed		(215,305	)		(695,566	)		(275,606	)		(424,086	)

Change in Class A Shares		(15,129	)		(422,438	)		(78,664	)		169,598

Class B Shares:
Issued		7,771			16,784			4,996			5,175
Reinvested		43,236			25,023			10,704			12,417
Redeemed		(34,796	)		(31,048	)		(18,196	)		(26,217	)

Change in Class B Shares		16,211			10,759			(2,496	)		(8,625	)

Class C Shares:
Issued		165			1,618			4			—
Reinvested		1,749			1,221			755			979
Redeemed		(237	)		(4,376	)		(935	)		(2,761	)

Change in Class C Shares		1,677			(1,537	)		(176	)		(1,782	)

Class I Shares:
Issued		—			—			196,797			831,134
Reinvested		—			—			163,964			122,918
Redeemed		—			—			(216,544	)		(297,127	)

Change in Class I Shares		—			—			144,217			656,925


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	49

HSBC INVESTOR ADVISOR FUNDS TRUST—CORE PLUS FIXED INCOME FUND (ADVISOR)

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities								Dividends

	Net Asset Value, Beginning of Period			Net Investment Income		Net Realized and Unrealized Gains (Losses) from Investment Transactions			Total from Investment Activities			Net Investment Income			Net Realized Gains from Investment Transactions			Total Dividends

CLASS I SHARES
Year Ended October 31, 2003		$	10.63		0.41		0.19			0.60			(0.50	)		—			(0.50	)
Year Ended October 31, 2004			10.73		0.45		0.12			0.57			(0.45	)		—			(0.45	)
Year Ended October 31, 2005			10.85		0.44		(0.27	)		0.17			(0.47	)		—			(0.47	)
Year Ended October 31, 2006			10.55		0.53		0.02			0.55			(0.51	)		(0.46	)		(0.97	)
Year Ended October 31, 2007			10.13		0.54		0.17			0.71			(0.53	)		—			(0.53	)
Six Months Ended April 30, 2008 (Unaudited)			10.31		0.25		(0.33	)		(0.08	)		(0.26	)		(0.08	)		(0.34	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS I SHARES
Year Ended October 31, 2003		$	10.73	5.71	%		$	110,968	0.56	%	4.30	%	0.56	%	70.91	%
Year Ended October 31, 2004			10.85	5.46	%			109,518	0.64	%	4.20	%	0.64	%	34.88	%
Year Ended October 31, 2005			10.55	1.55	%(f)			89,743	0.52	%(f)	4.15	%(f)	0.52	%(f)	176.60	%
Year Ended October 31, 2006			10.13	5.56	%			80,976	0.56	%	5.05	%	0.80	%	273.91	%
Year Ended October 31, 2007			10.31	7.20	%(g)(h)			81,392	0.35	%(g)	5.24	%(g)	0.72	%	252.26	%
Six Months Ended April 30, 2008 (Unaudited)			9.89	(0.81	)%(i)			69,723	0.45	%	5.08	%	0.71	%	61.96	%


(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Core Plus Fixed Income Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.11% for the Class I Shares.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total return were 0.10% for the Class I Shares.

(h)	During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to total return was 1.80%.

(i)	During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to total return was 0.38%.


50	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FUNDS—CORE PLUS FIXED INCOME FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities							Dividends

	Net Asset Value, Beginning of Period				Net Investment Income		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends

CLASS A SHARES
Year Ended October 31, 2003		$	10.38		0.40		0.13		0.53		(0.43	)	—		(0.43	)
Year Ended October 31, 2004			10.48		0.40		0.12		0.52		(0.40	)	—		(0.40	)
Year Ended October 31, 2005			10.60		0.39		(0.27	)	0.12		(0.42	)	—		(0.42	)
Year Ended October 31, 2006			10.30		0.49	*	0.05		0.54		(0.49	)	(0.05	)	(0.54	)
Year Ended October 31, 2007			10.30		0.51	*	0.19		0.70		(0.52	)	—		(0.52	)
Six Months Ended April 30, 2008 (Unaudited)			10.48		0.25	*	(0.36	)	(0.11	)	(0.25	)	—		(0.25	)

CLASS B SHARES
Year Ended October 31, 2003		$	10.39		0.32		0.13		0.45		(0.35	)	—		(0.35	)
Year Ended October 31, 2004			10.49		0.32		0.11		0.43		(0.32	)	—		(0.32	)
Year Ended October 31, 2005			10.60		0.32		(0.27	)	0.05		(0.34	)	—		(0.34	)
Year Ended October 31, 2006			10.31		0.41	*	0.06		0.47		(0.42	)	(0.05	)	(0.47	)
Year Ended October 31, 2007			10.31		0.44	*	0.18		0.62		(0.44	)	—		(0.44	)
Six Months Ended April 30, 2008 (Unaudited)			10.49		0.21	*	(0.36	)	(0.15	)	(0.21	)	—		(0.21	)

CLASS C SHARES
Year Ended October 31, 2003		$	10.38		0.32		0.13		0.45		(0.35	)	—		(0.35	)
Year Ended October 31, 2004			10.48		0.32		0.11		0.43		(0.32	)	—		(0.32	)
Year Ended October 31, 2005			10.59		0.32		(0.27	)	0.05		(0.34	)	—		(0.34	)
Year Ended October 31, 2006			10.30		0.41	*	0.06		0.47		(0.42	)	(0.05	)	(0.47	)
Year Ended October 31, 2007			10.30		0.44	*	0.16		0.60		(0.44	)	—		(0.44	)
Six Months Ended April 30, 2008 (Unaudited)			10.46		0.20	*	(0.35	)	(0.15	)	(0.21	)	—		(0.21	)



						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Year Ended October 31, 2003		$	10.48	5.17	%		$	14,143	1.10	%	3.76	%	1.21	%	70.91	%
Year Ended October 31, 2004			10.60	5.07	%			17,248	1.04	%	3.78	%	1.26	%	34.88	%
Year Ended October 31, 2005			10.30	1.16	%(f)			17,646	0.84	%(f)	3.82	%(f)	1.15	%(f)	176.60	%
Year Ended October 31, 2006			10.30	5.45	%			12,248	0.79	%	4.82	%	1.43	%	273.91	%
Year Ended October 31, 2007			10.48	6.90	%(g)(h)			13,592	0.67	%(g)	4.93	%(g)	1.41	%	252.26	%
Six Months Ended April 30, 2008 (Unaudited)			10.12	(1.04	)%(i)			12,458	0.70	%	4.84	%	1.39	%	61.96	%

CLASS B SHARES
Year Ended October 31, 2003		$	10.49	4.38	%		$	7,430	1.85	%	3.01	%	1.96	%	70.91	%
Year Ended October 31, 2004			10.60	4.19	%			7,017	1.79	%	3.05	%	2.01	%	34.88	%
Year Ended October 31, 2005			10.31	0.50	%(f)			6,168	1.59	%(f)	3.08	%(f)	1.90	%(f)	176.90	%
Year Ended October 31, 2006			10.31	4.67	%			4,267	1.54	%	4.06	%	2.19	%	273.91	%
Year Ended October 31, 2007			10.49	6.10	%(g)(h)			3,792	1.42	%(g)	4.18	%(g)	2.12	%	252.26	%
Six Months Ended April 30, 2008 (Unaudited)			10.13	(1.41	)%(i)			2,888	1.45	%	4.09	%	2.13	%	61.96	%

CLASS C SHARES
Year Ended October 31, 2003		$	10.48	4.39	%		$	606	1.85	%	3.06	%	1.97	%	70.91	%
Year Ended October 31, 2004			10.59	4.20	%			377	1.80	%	3.07	%	2.02	%	34.88	%
Year Ended October 31, 2005			10.30	0.51	%(f)			285	1.58	%(f)	3.14	%(f)	1.89	%(f)	176.90	%
Year Ended October 31, 2006			10.30	4.67	%			236	1.54	%	4.07	%	2.19	%	273.91	%
Year Ended October 31, 2007			10.46	5.92	%(g)(h)			30	1.43	%(g)	4.24	%(g)	2.19	%	252.26	%
Six Months Ended April 30, 2008 (Unaudited)			10.10	(1.41	)%(i)			104	1.45	%	3.99	%	2.13	%	61.96	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Core Plus Fixed Income Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.11%, 0.11% and 0.12% for Class A Shares, Class B Shares and Class C Shares, respectively.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.03%, 0.03%, and 0.02% for Class A Shares, Class B Shares, and Class C Shares, respectively.

(h)	During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 1.77%, 1.76% and 1.77% for Class A Shares, Class B Shares and Class C Shares, respectively.

(i)	During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.38%, 0.38% and 0.38% for Class A Shares, Class B Shares and Class C Shares, respectively.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	51

HSBC INVESTOR FUNDS—HIGH YIELD FIXED INCOME FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends

CLASS A SHARES
Period Ended October 31, 2006(f)		$	10.00	0.69		0.12		0.81		(0.68	)	—		(0.68	)
Year Ended October 31, 2007			10.13	0.79	*	(0.09	)	0.70		(0.79	)	(0.03	)	(0.82	)
Six Months Ended April 30, 2008 (Unaudited)			10.01	0.39	*	(0.57	)	(0.18	)	(0.39	)	(0.10	)	(0.49	)

CLASS B SHARES
Period Ended October 31, 2006(g)		$	10.00	0.62		0.13		0.75		(0.61	)	—		(0.61	)
Year Ended October 31, 2007			10.14	0.71	*	(0.09	)	0.62		(0.72	)	(0.03	)	(0.75	)
Six Months Ended April 30, 2008 (Unaudited)			10.01	0.35	*	(0.55	)	(0.20	)	(0.36	)	(0.10	)	(0.46	)

CLASS C SHARES
Period Ended October 31, 2006(h)		$	10.01	0.58		0.15		0.73		(0.58	)	—		(0.58	)
Year Ended October 31, 2007			10.16	0.71	*	(0.09	)	0.62		(0.72	)	(0.03	)	(0.75	)
Six Months Ended April 30, 2008 (Unaudited)			10.03	0.35	*	(0.56	)	(0.21	)	(0.36	)	(0.10	)	(0.46	)

CLASS I SHARES
Period Ended October 31, 2006(i)		$	10.00	0.71		0.14		0.85		(0.71	)	—		(0.71	)
Year Ended October 31, 2007			10.14	0.81	*	(0.09	)	0.72		(0.82	)	(0.03	)	(0.85	)
Six Months Ended April 30, 2008 (Unaudited)			10.01	0.40	*	(0.57	)	(0.17	)	(0.40	)	(0.10	)	(0.50	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Period Ended October 31, 2006(f)		$	10.13	8.38	%		$	4,742	0.80	%	7.27	%	3.53	%	13.61	%
Year Ended October 31, 2007			10.01	7.13	%			3,706	0.80	%	7.71	%	2.97	%	30.77	%
Six Months Ended April 30, 2008 (Unaudited)			9.34	(1.65	)%			3,459	0.80	%	8.36	%	2.66	%	14.28	%

CLASS B SHARES
Period Ended October 31, 2006(g)		$	10.14	7.68	%		$	2,106	1.55	%	6.65	%	4.26	%	13.61	%
Year Ended October 31, 2007			10.01	6.22	%			2,447	1.55	%	6.95	%	3.69	%	30.77	%
Six Months Ended April 30, 2008 (Unaudited)			9.35	(1.92	)%			2,328	1.55	%	7.61	%	3.41	%	14.28	%

CLASS C SHARES
Period Ended October 31, 2006(h)		$	10.16	7.42	%		$	241	1.55	%	6.65	%	4.29	%	13.61	%
Year Ended October 31, 2007			10.03	6.20	%			217	1.55	%	6.90	%	3.69	%	30.77	%
Six Months Ended April 30, 2008 (Unaudited)			9.36	(2.03	)%			417	1.55	%	7.49	%	3.41	%	14.28	%

CLASS I SHARES
Period Ended October 31, 2006(i)		$	10.14	8.73	%		$	2,568	0.55	%	7.53	%	3.29	%	13.61	%
Year Ended October 31, 2007			10.01	7.29	%			2,642	0.55	%	7.95	%	2.68	%	30.77	%
Six Months Ended April 30, 2008 (Unaudited)			9.34	(1.53	)%			2,813	0.55	%	8.60	%	2.41	%	14.28	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor High Yield Fixed Income Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets.

(f)	Class A Shares commenced operations on November 18, 2005.

(g)	Class B Shares commenced operations on November 21, 2005.

(h)	Class C Shares commenced operations on December 14, 2005.

(i)	Class I Shares commenced operations on November 18, 2005.


52	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FUNDS—INTERMEDIATE DURATION FIXED INCOME FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends

CLASS A SHARES
Year Ended October 31, 2003		$	10.43	0.33		0.08		0.41		(0.37	)	—		(0.37	)
Year Ended October 31, 2004			10.47	0.32	*	0.06		0.38		(0.33	)	(0.46	)	(0.79	)
Year Ended October 31, 2005			10.06	0.33		(0.29	)	0.04		(0.37	)	(0.06	)	(0.43	)
Year Ended October 31, 2006			9.67	0.45		0.05		0.50		(0.45	)	—		(0.45	)
Year Ended October 31, 2007			9.72	0.50	*	0.33		0.83		(0.50	)	—		(0.50	)
Six Months Ended April 30, 2008 (Unaudited)			10.05	0.23	*	(0.37	)	(0.14	)	(0.24	)	(0.04	)	(0.28	)

CLASS B SHARES
Year Ended October 31, 2003		$	10.45	0.25		0.08		0.33		(0.29	)	—		(0.29	)
Year Ended October 31, 2004			10.49	0.23		0.08		0.31		(0.26	)	(0.46	)	(0.72	)
Year Ended October 31, 2005			10.08	0.25		(0.29	)	(0.04	)	(0.29	)	(0.06	)	(0.35	)
Year Ended October 31, 2006			9.69	0.38		0.04		0.42		(0.38	)	—		(0.38	)
Year Ended October 31, 2007			9.73	0.43	*	0.33		0.76		(0.42	)	—		(0.42	)
Six Months Ended April 30, 2008 (Unaudited)			10.07	0.20	*	(0.38	)	(0.18	)	(0.20	)	(0.04	)	(0.24	)

CLASS C SHARES
Year Ended October 31, 2003		$	10.44	0.25		0.09		0.34		(0.29	)	—		(0.29	)
Year Ended October 31, 2004			10.49	0.22	*	0.08		0.30		(0.26	)	(0.46	)	(0.72	)
Year Ended October 31, 2005			10.07	0.25		(0.29	)	(0.04	)	(0.29	)	(0.06	)	(0.35	)
Year Ended October 31, 2006			9.68	0.38		0.05		0.43		(0.38	)	—		(0.38	)
Year Ended October 31, 2007			9.73	0.43	*	0.33		0.76		(0.43	)	—		(0.43	)
Six Months Ended April 30, 2008 (Unaudited)			10.06	0.19	*	(0.36	)	(0.17	)	(0.20	)	(0.04	)	(0.24	)

CLASS I SHARES
Year Ended October 31, 2003		$	10.45	0.33		0.10		0.43		(0.40	)	—		(0.40	)
Year Ended October 31, 2004			10.48	0.33		0.09		0.42		(0.36	)	(0.46	)	(0.82	)
Year Ended October 31, 2005			10.08	0.35		(0.30	)	0.05		(0.39	)	(0.06	)	(0.45	)
Year Ended October 31, 2006			9.68	0.47		0.05		0.52		(0.47	)	—		(0.47	)
Year Ended October 31, 2007			9.73	0.53	*	0.32		0.85		(0.52	)	—		(0.52	)
Six Months Ended April 30, 2008 (Unaudited)			10.06	0.24	*	(0.36	)	(0.12	)	(0.25	)	(0.04	)	(0.29	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Year Ended October 31, 2003		$	10.47	3.97	%		$	3,309	1.01	%	2.99	%	1.01	%	98.42	%
Year Ended October 31, 2004			10.06	3.90	%			1,558	1.10	%	3.01	%	1.21	%	50.06	%
Year Ended October 31, 2005			9.67	0.31	%(f)			1,055	1.01	%(f)	3.37	%(f)	1.10	%(f)	107.26	%
Year Ended October 31, 2006			9.72	5.30	%			976	0.80	%	4.61	%	1.65	%	236.51	%
Year Ended October 31, 2007			10.05	8.67	%(g)(h)			803	0.53	%(g)	5.02	%(g)	1.67	%	219.76	%
Six Months Ended April 30, 2008 (Unaudited)			9.63	(1.49	)%(i)			1,342	0.65	%	4.63	%	1.74	%	52.13	%

CLASS B SHARES
Year Ended October 31, 2003		$	10.49	3.19	%		$	6,443	1.73	%	2.30	%	1.73	%	98.42	%
Year Ended October 31, 2004			10.08	3.11	%			6,321	1.85	%	2.28	%	1.96	%	50.06	%
Year Ended October 31, 2005			9.69	(0.44	)%(f)			4,852	1.76	%(f)	2.60	%(f)	1.85	%(f)	107.26	%
Year Ended October 31, 2006			9.73	4.40	%			3,738	1.56	%	3.84	%	2.40	%	236.51	%
Year Ended October 31, 2007			10.07	7.96	%(g)(h)			2,982	1.28	%(g)	4.26	%(g)	2.41	%	219.76	%
Six Months Ended April 30, 2008 (Unaudited)			9.65	(1.85	)%(i)			2,050	1.40	%	4.00	%	2.49	%	52.13	%

CLASS C SHARES
Year Ended October 31, 2003		$	10.49	3.29	%		$	2,544	1.73	%	2.31	%	1.73	%	98.42	%
Year Ended October 31, 2004			10.07	3.03	%			679	1.85	%	2.25	%	1.96	%	50.06	%
Year Ended October 31, 2005			9.68	(0.44	)%(f)			527	1.77	%(f)	2.60	%(f)	1.86	%(f)	107.26	%
Year Ended October 31, 2006			9.73	4.51	%			503	1.55	%	3.86	%	2.40	%	236.51	%
Year Ended October 31, 2007			10.06	7.86	%(g)(h)			305	1.27	%(g)	4.27	%(g)	2.43	%	219.76	%
Six Months Ended April 30, 2008 (Unaudited)			9.65	(1.75	)%(i)			288	1.40	%	3.95	%	2.48	%	52.13	%

CLASS I SHARES
Year Ended October 31, 2003		$	10.48	4.12	%		$	31,368	0.69	%	3.62	%	0.69	%	98.42	%
Year Ended October 31, 2004			10.08	4.25	%			31,217	0.85	%	3.28	%	0.96	%	50.06	%
Year Ended October 31, 2005			9.68	0.45	%(f)			24,744	0.76	%(f)	3.60	%(f)	0.85	%(f)	107.26	%
Year Ended October 31, 2006			9.73	5.56	%			13,000	0.58	%	4.77	%	1.38	%	236.51	%
Year Ended October 31, 2007			10.06	8.93	%(g)(h)			9,955	0.28	%(g)	5.25	%(g)	1.42	%	219.76	%
Six Months Ended April 30, 2008 (Unaudited)			9.65	(1.26	)%(i)			9,370	0.40	%	4.95	%	1.48	%	52.13	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Intermediate Duration Fixed Income Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.09%, 0.09%, 0.09% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.12%, 0.12%, 0.13%, and 0.12% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(h)	During the year ended October 31, 2007, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 3.75%, 3.74%, 3.74% and 3.75% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(i)	During the period ended April 30, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 1.05%, 1.05%, 1.05% and 1.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	53

HSBC INVESTOR FUNDS — NEW YORK TAX-FREE BOND FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.


			Investment Activities								Dividends

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gains (Losses) from Investment Transactions			Total from Investment Activities		Net Investment Income			Net Realized Gains from Investment Transactions			Total Dividends

CLASS A SHARES
Year Ended October 31, 2003	$	11.09		0.38			0.12			0.50		(0.38	)		—			(0.38	)
Year Ended October 31, 2004		11.21		0.34			0.17			0.51		(0.34	)		(0.06	)		(0.40	)
Year Ended October 31, 2005		11.32		0.34			(0.22	)		0.12		(0.34	)		(0.02	)		(0.36	)
Year Ended October 31, 2006		11.08		0.37			0.12			0.49		(0.37	)		(0.02	)		(0.39	)
Year Ended October 31, 2007		11.18		0.39	*		(0.14	)		0.25		(0.38	)		—			(0.38	)
Six Months Ended April 30, 2008 (Unaudited)		11.05		0.19	*		(0.07	)		0.12		(0.20	)		(0.01	)		(0.21	)

CLASS B SHARES
Year Ended October 31, 2003	$	11.08		0.30			0.12			0.42		(0.30	)		—			(0.30	)
Year Ended October 31, 2004		11.20		0.25			0.17			0.42		(0.25	)		(0.06	)		(0.31	)
Year Ended October 31, 2005		11.31		0.25			(0.22	)		0.03		(0.25	)		(0.02	)		(0.27	)
Year Ended October 31, 2006		11.07		0.28			0.12			0.40		(0.28	)		(0.02	)		(0.30	)
Year Ended October 31, 2007		11.17		0.30	*		(0.13	)		0.17		(0.30	)		—			(0.30	)
Six Months Ended April 30, 2008 (Unaudited)		11.04		0.15	*		(0.07	)		0.08		(0.16	)		(0.01	)		(0.17	)

CLASS C SHARES
Year Ended October 31, 2003	$	11.12		0.30			0.13			0.43		(0.30	)		—			(0.30	)
Year Ended October 31, 2004		11.25		0.25			0.16			0.41		(0.25	)		(0.06	)		(0.31	)
Year Ended October 31, 2005		11.35		0.25			(0.22	)		0.03		(0.25	)		(0.02	)		(0.27	)
Year Ended October 31, 2006		11.11		0.28			0.12			0.40		(0.28	)		(0.02	)		(0.30	)
Year Ended October 31, 2007		11.21		0.31	*		(0.14	)		0.17		(0.30	)		—			(0.30	)
Six Months Ended April 30, 2008 (Unaudited)		11.08		0.15	*		(0.07	)		0.08		(0.16	)		(0.01	)		(0.17	)

CLASS I SHARES
Year Ended October 31, 2003	$	11.09		0.41			0.12			0.53		(0.41	)		—			(0.41	)
Year Ended October 31, 2004		11.21		0.37			0.17			0.54		(0.37	)		(0.06	)		(0.43	)
Year Ended October 31, 2005		11.32		0.37			(0.22	)		0.15		(0.37	)		(0.02	)		(0.39	)
Year Ended October 31, 2006		11.08		0.39			0.12			0.51		(0.39	)		(0.02	)		(0.41	)
Year Ended October 31, 2007		11.18		0.41	*		(0.13	)		0.28		(0.41	)		—			(0.41	)
Six Months Ended April 30, 2008 (Unaudited)		11.05		0.21	*		(0.08	)		0.13		(0.21	)		(0.01	)		(0.22	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period		Total Return(a)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(b)			Ratio of Net Investment Income (Loss) to Average Net Assets(b)			Ratio of Expenses to Average Net Assets(b)(c)			Portfolio Turnover Rate(d)

CLASS A SHARES
Year Ended October 31, 2003	$	11.21		4.57	%	$	22,326		0.91	%		3.39	%		0.91	%		29.79	%
Year Ended October 31, 2004		11.32		4.57	%		32,889		0.87	%		3.01	%		0.87	%		26.96	%
Year Ended October 31, 2005		11.08		1.03	%(e)		34,441		0.88	%(e)		3.02	%(e)		0.89	%		13.87	%
Year Ended October 31, 2006		11.18		4.45	%		32,727		0.93	%		3.30	%		0.93	%		12.69	%
Year Ended October 31, 2007		11.05		2.34	%(f)		32,305		0.86	%(f)		3.50	%(f)		0.89	%		17.03	%
Six Months Ended April 30, 2008 (Unaudited)		10.96		1.11	%		30,920		0.83	%		3.53	%		0.83	%		—

CLASS B SHARES
Year Ended October 31, 2003	$	11.20		3.80	%	$	18,352		1.66	%		2.64	%		1.66	%		29.79	%
Year Ended October 31, 2004		11.31		3.80	%		17,457		1.62	%		2.27	%		1.62	%		26.96	%
Year Ended October 31, 2005		11.07		0.28	%(e)		16,258		1.63	%(e)		2.27	%(e)		1.64	%		13.87	%
Year Ended October 31, 2006		11.17		3.67	%		13,735		1.68	%		2.56	%		1.68	%		12.69	%
Year Ended October 31, 2007		11.04		1.58	%(f)		8,635		1.61	%(f)		2.75	%(f)		1.64	%		17.03	%
Six Months Ended April 30, 2008 (Unaudited)		10.95		0.74	%		6,492		1.59	%		2.79	%		1.59	%		—

CLASS C SHARES
Year Ended October 31, 2003	$	11.25		3.87	%	$	3,252		1.66	%		2.64	%		1.66	%		29.79	%
Year Ended October 31, 2004		11.35		3.69	%		2,340		1.62	%		2.26	%		1.62	%		26.96	%
Year Ended October 31, 2005		11.11		0.28	%(e)		1,782		1.63	%(e)		2.26	%(e)		1.64	%		13.87	%
Year Ended October 31, 2006		11.21		3.66	%		1,246		1.68	%		2.55	%		1.68	%		12.69	%
Year Ended October 31, 2007		11.08		1.57	%(f)		807		1.60	%(f)		2.75	%(f)		1.63	%		17.03	%
Six Months Ended April 30, 2008 (Unaudited)		10.99		0.73	%		537		1.59	%		2.79	%		1.59	%		—

CLASS I SHARES
Year Ended October 31, 2003	$	11.21		4.84	%	$	20,290		0.67	%		3.67	%		0.67	%		29.79	%
Year Ended October 31, 2004		11.32		4.83	%		19,908		0.62	%		3.27	%		0.62	%		26.96	%
Year Ended October 31, 2005		11.08		1.28	%(e)		16,981		0.63	%(e)		3.27	%(e)		0.64	%		13.87	%
Year Ended October 31, 2006		11.18		4.71	%		13,746		0.68	%		3.55	%		0.68	%		12.69	%
Year Ended October 31, 2007		11.05		2.59	%(f)		19,282		0.60	%(f)		3.74	%(f)		0.63	%		17.03	%
Six Months Ended April 30, 2008 (Unaudited)		10.96		1.24	%		21,991		0.58	%		3.77	%		0.58	%		—


*	Calculated based on average shares outstanding.

(a)	Not Annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(b)	Annualized for periods less than one year.

(c)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(d)	Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued.

(e)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.01%, 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(f)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.03%, 0.04%, 0.03% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.


54	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FUNDS — GROWTH FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


			Investment Activities									Dividends

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gains (Losses) from Investment Transactions			Total from Investment Activities			Net Investment Income			Net Realized Gains from Investment Transactions			Total Dividends

CLASS A SHARES
Period Ended October 31, 2004(f)	$	12.68		(0.02	)		(0.11	)		(0.13	)		—			—			—
Year Ended October 31, 2005		12.55		0.03			1.59			1.62			(0.05	)		—			(0.05	)
Year Ended October 31, 2006		14.12		(0.02	)*		0.99			0.97			—			(0.23	)		(0.23	)
Year Ended October 31, 2007		14.86		—	*(i)		4.23			4.23			(0.01	)		(1.13	)		(1.14	)
Six Months Ended April 30, 2008 (Unaudited)		17.95		(0.02	)*		(1.49	)		(1.51	)		—			(0.84	)		(0.84	)

CLASS B SHARES
Period Ended October 31, 2004(f)	$	12.28		(0.07	)		(0.10	)		(0.17	)		—			—			—
Year Ended October 31, 2005		12.11		(0.07	)		1.53			1.46			—			—			—
Year Ended October 31, 2006		13.57		(0.12	)*		0.95			0.83			—			(0.23	)		(0.23	)
Year Ended October 31, 2007		14.17		(0.11	)*		3.99			3.88			—			(1.13	)		(1.13	)
Six Months Ended April 30, 2008 (Unaudited)		16.92		(0.07	)*		(1.41	)		(1.48	)		—			(0.84	)		(0.84	)

CLASS C SHARES
Year Ended October 31, 2004(f)	$	12.35		(0.06	)		(0.12	)		(0.18	)		—			—			—
Year Ended October 31, 2005		12.17		(0.07	)		1.54			1.47			—			—			—
Year Ended October 31, 2006		13.64		(0.13	)*		0.99			0.83			—			(0.23	)		(0.23	)
Year Ended October 31, 2007		14.24		(0.11	)*		4.02			3.91			—			(1.13	)		(1.13	)
Six Months Ended April 30, 2008 (Unaudited)		17.02		(0.07	)*		(1.42	)		(1.49	)		—			(0.84	)		(0.84	)

CLASS I SHARES
Period Ended October 31, 2004(f)	$	12.67		(0.01	)		(0.11	)		(0.12	)		—			—			—
Year Ended October 31, 2005		12.55		0.06			1.59			1.65			(0.08	)		—			(0.08	)
Year Ended October 31, 2006		14.12		0.02	*		0.99			1.01			—			(0.23	)		(0.23	)
Year Ended October 31, 2007		14.90		0.03	*		4.24			4.27			(0.02	)		(1.13	)		(1.15	)
Six Months Ended April 30, 2008 (Unaudited)		18.02		—	*(i)		(1.50	)		(1.50	)		—			(0.84	)		(0.84	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period		Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income (Loss) to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)

CLASS A SHARES
Period Ended October 31, 2004(f)	$	12.55		(1.03	)%	$	17,372		1.20	%		(0.42	)%		1.31	%		53.08	%
Year Ended October 31, 2005		14.12		12.91	%(g)		21,866		1.15	%(g)		0.19	%(g)		1.35	%(g)		79.54	%
Year Ended October 31, 2006		14.86		6.92	%		21,985		1.20	%		(0.14	)%		1.44	%		75.06	%
Year Ended October 31, 2007		17.95		30.45	%(h)		30,858		1.11	%(h)		(0.03	)%(h)		1.22	%		57.04	%
Six Months Ended April 30, 2008 (Unaudited)		15.60		(8.65	)%		24,248		1.18	%		(0.20	) %		1.18	%		29.44	%

CLASS B SHARES
Period Ended October 31, 2004(f)	$	12.11		(1.38	)%	$	1,402		1.95	%		(1.17	)%		2.06	%		53.08	%
Year Ended October 31, 2005		13.57		12.06	%(g)		1,317		1.90	%(g)		(0.48	)%(g)		2.09	%(g)		79.54	%
Year Ended October 31, 2006		14.17		6.16	%		1,446		1.95	%		(0.88	)%		2.19	%		75.06	%
Year Ended October 31, 2007		16.92		29.43	%(h)		1,630		1.86	%(h)		(0.78	)%(h)		1.98	%		57.04	%
Six Months Ended April 30, 2008 (Unaudited)		14.60		(9.02	)%		1,368		1.94	%		(0.97	)%		1.94	%		29.44	%

CLASS C SHARES
Year Ended October 31, 2004(f)	$	12.17		(1.46	)%	$	309		1.95	%		(1.18	)%		2.06	%		53.08	%
Year Ended October 31, 2005		13.64		12.08	%(g)		344		1.90	%(g)		(0.51	)%(g)		2.10	%(g)		79.54	%
Year Ended October 31, 2006		14.24		6.13	%		270		1.95	%		(0.89	)%		2.18	%		75.06	%
Year Ended October 31, 2007		17.02		29.49	%(h)		98		1.86	%(h)		(0.79	)%(h)		1.96	%		57.04	%
Six Months Ended April 30, 2008 (Unaudited)		14.69		(9.02	)%		80		1.93	%		(0.95	)%		1.93	%		29.44	%

CLASS I SHARES
Period Ended October 31, 2004(f)	$	12.55		0.95	%	$	19,115		0.95	%		(0.17	)%		1.06	%		53.08	%
Year Ended October 31, 2005		14.12		13.17	%(g)		13,107		0.90	%(g)		0.56	%(g)		1.07	%(g)		79.54	%
Year Ended October 31, 2006		14.90		7.21	%		15,042		0.95	%		0.12	%		1.19	%		75.06	%
Year Ended October 31, 2007		18.02		30.73	%(h)		30,295		0.87	%(h)		0.20	%(h)		0.96	%		57.04	%
Six Months Ended April 30, 2008 (Unaudited)		15.68		(8.56	)%		26,795		0.93	%		0.05	%		0.93	%		29.44	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Growth Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets.

(f)	Class A Shares, Class B Shares, Class C Shares and Class I Shares commenced operations on May 10, 2004.

(g)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.05%, 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(h)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.09%, 0.09%, 0.09% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(i)	Represents less than $0.005.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	55

HSBC INVESTOR FUNDS—GROWTH AND INCOME FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Total Dividends

CLASS A SHARES
Year Ended October 31, 2003		$	7.21	0.06		1.18		1.24		(0.06	)	(0.06	)
Year Ended October 31, 2004			8.39	0.05		0.36		0.41		(0.04	)	(0.04	)
Year Ended October 31, 2005			8.76	0.07		1.01		1.08		(0.09	)	(0.09	)
Year Ended October 31, 2006			9.75	(0.02	)*	1.25		1.23		—		—
Year Ended October 31, 2007			10.98	0.01	*	3.07		3.08		(0.02	)	(0.02	)
Six Months Ended April 30, 2008 (Unaudited)			14.04	—	*>	(1.43	)	(1.43	)	—		—

CLASS B SHARES
Year Ended October 31, 2003		$	7.14	(0.01	)	1.18		1.17		(0.01	)	(0.01	)
Year Ended October 31, 2004			8.30	(0.02	)*	0.36		0.34		(0.00	)>	(0.00	) >
Year Ended October 31, 2005			8.64	(0.01	)	1.01		1.00		(0.03	)	(0.03	)
Year Ended October 31, 2006			9.61	(0.10	)*	1.23		1.13		—		—
Year Ended October 31, 2007			10.74	(0.07	)*	2.99		2.92		—		—
Six Months Ended April 30, 2008 (Unaudited)			13.66	(0.04	)*	(1.41	)	(1.45	)	—		—


CLASS C SHARES
Period Ended October 31, 2004		$	8.40	(0.02	)*	0.38		0.36		(0.03	)	(0.03	)
Year Ended October 31, 2005			8.73	(0.01	)	1.02		1.01		(0.04	)	(0.04	)
Year Ended October 31, 2006			9.70	(0.09	)	1.22		1.13		—		—
Year Ended October 31, 2007			10.83	(0.08	)*	3.02		2.94		—		—
Six Months Ended April 30, 2008 (Unaudited)			13.77	(0.04	)*	(1.41	)	(1.45	)	—		—


CLASS I SHARES
Year Ended October 31, 2003		$	7.22	0.07		1.19		1.26		(0.08	)	(0.08	)
Year Ended October 31, 2004			8.40	0.07		0.36		0.43		(0.06	)	(0.06	)
Year Ended October 31, 2005			8.77	0.10		0.99		1.10		(0.12	)	(0.12	)
Year Ended October 31, 2006			9.75	0.01	*	1.25		1.26		(0.01	)	(0.01	)
Year Ended October 31, 2007			11.00	0.05	*	3.08		3.13		(0.04	)	(0.04	)
Six Months Ended April 30, 2008 (Unaudited)			14.09	0.02	*	(1.45	)	(1.43	)	—		—


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(b)		Ratio of Net Investment Income (Loss) to Average Net Assets(b)		Ratio of Expenses to Average Net Assets(b)(c)		Portfolio Turnover Rate(d)

CLASS A SHARES
Year Ended October 31, 2003		$	8.39	17.26	%		$	1,827	1.04	%	0.70	%	1.04	%	64.52	%
Year Ended October 31, 2004			8.76	4.94	%			1,500	1.02	%	0.50	%	1.02	%	73.68	%
Year Ended October 31, 2005			9.75	12.36	%(e)			1,260	1.11	%(e)	0.73	%(e)	1.16	%	106.49	%
Year Ended October 31, 2006			10.98	12.62	%			1,394	1.26	%	(0.22	)%	1.47	%	34.85	%
Year Ended October 31, 2007			14.04	28.09	%(g)			2,048	1.08	%(g)	0.10	%(g)	1.32	%	26.76	%
Six Months Ended April 30, 2008 (Unaudited)			12.61	(10.19	)%			2,098	1.15	%	0.02	%	1.20	%	16.06	%

CLASS B SHARES
Year Ended October 31, 2003		$	8.30	16.40	%		$	2,235	1.79	%	(0.07	)%	1.79	%	64.52	%
Year Ended October 31, 2004			8.64	4.13	%			3,820	1.77	%	(0.25	)%	1.77	%	73.68	%
Year Ended October 31, 2005			9.61	11.61	%(e)			4,194	1.87	%(e)	(0.10	%(e)	1.93	%	106.49	%
Year Ended October 31, 2006			10.74	11.76	%			4,537	2.01	%	(0.97	)%	2.22	%	34.85	%
Year Ended October 31, 2007			13.66	27.19	%(g)			5,051	1.83	%(g)	(0.62	%(g)	2.07	%	26.76	%
Six Months Ended April 30, 2008 (Unaudited)			12.21	(10.61	)%			3,932	1.91	%	(0.69	)%	1.96	%	16.06	%

CLASS C SHARES
Period Ended October 31, 2004		$	8.73	3.57	%		$	41	1.77	%	(0.28	)%	1.77	%	73.68	%
Year Ended October 31, 2005			9.70	11.59	%(e)			49	1.88	%(e)	(0.13	%(e)	1.93	%	106.49	%
Year Ended October 31, 2006			10.83	11.65	%			35	2.01	%	(0.90	)%	2.21	%	34.85	%
Year Ended October 31, 2007			13.77	27.15	%(g)			58	1.82	%(g)	(0.64	%(g)	2.07	%	26.76	%
Six Months Ended April 30, 2008 (Unaudited)			12.32	(10.53	)%			30	1.92	%	(0.62	)%	1.97	%	16.06	%

CLASS I SHARES
Year Ended October 31, 2003		$	8.40	17.63	%		$	203,458	0.79	%	0.96	%	0.79	%	64.52	%
Year Ended October 31, 2004			8.77	5.18	%			196,219	0.77	%	0.77	%	0.77	%	73.68	%
Year Ended October 31, 2005			9.75	12.61	%(e)			46,888	0.80	%(e)	1.20	%(e)	0.86	%	106.49	%
Year Ended October 31, 2006			11.00	12.88	%			40,925	1.01	%	0.04	%	1.22	%	34.85	%
Year Ended October 31, 2007			14.09	28.46	%(g)			45,399	0.83	%(g)	0.38	%(g)	1.07	%	26.76	%
Six Months Ended April 30, 2008 (Unaudited)			12.66	(10.14	)%			33,676	0.91	%	0.31	%	0.96	%	16.06	%


>	Less than $0.005 per share.

*	Calculated based on average shares outstanding.

(a)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(b)	Annualized for periods less than one year.

(c)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been indicated.

(d)	Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued.

(e)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.02%, 0.02%, 0.02% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(f)	Class C shares commenced operations on November 3, 2003.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.12%, 0.12%, 0.13% and 0.12% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.


56	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR ADVISOR FUNDS TRUST—INTERNATIONAL EQUITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities					Dividends

	Net Asset Value, Beginning of Period			Net Investment Income	Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends

CLASS I SHARES
Year Ended October 31, 2003		$	10.73	0.20	2.02		2.22		(0.19	)	—		(0.19	)
Year Ended October 31, 2004			12.76	0.18	2.32		2.50		(0.39	)	—		(0.39	)
Year Ended October 31, 2005			14.87	0.31	2.59		2.90		(0.23	)	—		(0.23	)
Year Ended October 31, 2006			17.54	0.38	5.14		5.52		(0.36	)	(0.60	)	(0.96	)
Year Ended October 31, 2007			22.10	0.50	4.69		5.19		(0.55	)	(1.84	)	(2.39	)
Six Months Ended April 30, 2008 (Unaudited)			24.90	0.22	(2.93	)	(2.71	)	(0.39	)	(1.90	)	(2.29	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS I SHARES
Year Ended October 31, 2003		$	12.76	21.03	%		$	123,658	1.07	%	1.16	%	1.07	%	68.51	%
Year Ended October 31, 2004			14.87	20.06	%			148,317	1.05	%	1.39	%	1.05	%	106.11	%
Year Ended October 31, 2005			17.54	19.69	%			193,144	0.92	%	2.01	%	0.92	%	31.32	%
Year Ended October 31, 2006			22.10	32.70	%			283,749	0.97	%	2.02	%	0.97	%	33.39	%
Year Ended October 31, 2007			24.90	25.41	%(e)(f)			385,717	0.87	%(e)	2.15	%(e)	0.89	%	26.08	%
Six Months Ended April 30, 2008 (Unaudited)			19.90	(10.82	) %			318,411	0.87	%	2.06	%	0.87	%	13.91	%


(a)	The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor International Portfolio.

(b)	Total return calculations do not include any sales or redemption charges.

(c)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(d)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(e)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.02% for the Class I Shares.

(f)	During the year ended October 31, 2007, the Fund received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.18%.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	57

HSBC INVESTOR FUNDS—MID-CAP FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Realized Gains from Investment Transactions		Total Dividends

CLASS A SHARES
Year Ended October 31, 2003		$	6.30	(0.03	)*	1.68		1.65		—		—
Year Ended October 31, 2004			7.95	(0.04	)*	0.53		0.49		—		—
Year Ended October 31, 2005			8.44	(0.06	)*	1.49		1.43		—		—
Year Ended October 31, 2006			9.87	(0.00	)>	1.19		1.19		(2.18	)	(2.18	)
Year Ended October 31, 2007			8.88	(0.04	)*	2.59		2.55		(0.62	)	(0.62	)
Six Months Ended April 30, 2008 (Unaudited)			10.81	(0.02	)*	(1.05	)	(1.07	)	(1.23	)	(1.23	)

CLASS B SHARES
Year Ended October 31, 2003		$	6.19	(0.08	)	1.64		1.56		—		—
Year Ended October 31, 2004			7.75	(0.10	)*	0.51		0.41		—		—
Year Ended October 31, 2005			8.16	(0.13	)*	1.45		1.32		—		—
Year Ended October 31, 2006			9.48	(0.06	)*	1.13		1.07		(2.18	)	(2.18	)
Year Ended October 31, 2007			8.37	(0.10	)*	2.42		2.32		(0.62	)	(0.62	)
Six Months Ended April 30, 2008 (Unaudited)			10.07	(0.05	)*	(0.97	)	(1.02	)	(1.23	)	(1.23	)

CLASS C SHARES
Year Ended October 31, 2003		$	6.20	(0.08	)	1.68		1.60		—		—
Year Ended October 31, 2004			7.80	(0.10	)*	0.52		0.42		—		—
Year Ended October 31, 2005			8.22	(0.13	)*	1.45		1.32		—		—
Year Ended October 31, 2006			9.54	(0.06	)*	1.15		1.09		(2.18	)	(2.18	)
Year Ended October 31, 2007			8.45	(0.10	)*	2.43		2.33		(0.62	)	(0.62	)
Six Months Ended April 30, 2008 (Unaudited)			10.16	(0.05	)*	(0.98	)	(1.03	)	(1.23	)	(1.23	)

CLASS I SHARES
Year Ended October 31, 2003		$	6.33	(0.01	)	1.69		1.68		—		—
Year Ended October 31, 2004			8.01	(0.02	)*	0.53		0.51		—		—
Year Ended October 31, 2005			8.52	(0.02	)*	1.48		1.46		—		—
Year Ended October 31, 2006			9.98	0.03	*	1.20		1.23		(2.18	)	(2.18	)
Year Ended October 31, 2007			9.03	(0.02	)*	2.64		2.62		(0.62	)	(0.62	)
Six Months Ended April 30, 2008 (Unaudited)			11.03	(0.01	)*	(1.07	)	(1.08	)	(1.23	)	(1.23	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(b)		Ratio of Net Investment Income (Loss) to Average Net Assets(b)		Ratio of Expenses to Average Net Assets(b)(c)		Portfolio Turnover Rate(d)

CLASS A SHARES
Year Ended October 31, 2003		$	7.95	26.19	%		$	1,539	1.10	%	(0.43	)%	1.10	%	100.86	%
Year Ended October 31, 2004			8.44	6.16	%			1,878	1.09	%	(0.54	)%	1.09	%	106.72	%
Year Ended October 31, 2005			9.87	16.94	%(e)			2,151	1.38	%(e)	(0.65	)%(e)	1.53	%	169.62	%
Year Ended October 31, 2006			8.88	13.66	%			3,185	1.48	%	(0.01	)%	1.85	%	53.16	%
Year Ended October 31, 2007			10.81	30.51	%(f)			5,897	1.19	%(f)	(0.45	)%(f)	1.70	%	66.16	%
Six Months Ended April 30, 2008 (Unaudited)			8.51	(10.62	)%			5,122	1.35	%	(0.54	)%	1.70	%	27.41	%

CLASS B SHARES
Year Ended October 31, 2003		$	7.75	25.20	%		$	6,009	1.85	%	(1.16	)%	1.85	%	100.86	%
Year Ended October 31, 2004			8.16	5.29	%			7,037	1.84	%	(1.29	)%	1.84	%	106.72	%
Year Ended October 31, 2005			9.48	16.18	%(e)			7,415	2.11	%(e)	(1.38	)%(e)	2.27	%	169.62	%
Year Ended October 31, 2006			8.37	12.78	%			7,425	2.25	%	(0.72	)%	2.60	%	53.16	%
Year Ended October 31, 2007			10.07	29.56	%(f)			6,285	1.92	%(f)	(1.15	)%(f)	2.48	%	66.16	%
Six Months Ended April 30, 2008 (Unaudited)			7.82	(10.94	)%			4,459	2.10	%	(1.30	)%	2.45	%	27.41	%

CLASS C SHARES
Year Ended October 31, 2003		$	7.80	25.81	%		$	54	1.85	%	(1.23	)%	1.85	%	100.86	%
Year Ended October 31, 2004			8.22	5.38	%			94	1.84	%	(1.29	)%	1.84	%	106.72	%
Year Ended October 31, 2005			9.54	16.06	%(e)			111	2.13	%(e)	(1.40	)%(e)	2.28	%	169.62	%
Year Ended October 31, 2006			8.45	12.93	%			95	2.25	%	(0.72	)%	2.60	%	53.16	%
Year Ended October 31, 2007			10.16	29.40	%(f)			79	1.93	%(f)	(1.16	)%(f)	2.46	%	66.16	%
Six Months Ended April 30, 2008 (Unaudited)			7.90	(10.93	)%			69	2.10	%	(1.29	)%	2.46	%	27.41	%

CLASS I SHARES
Year Ended October 31, 2003		$	8.01	26.54	%		$	160,621	0.85	%	(0.17	)%	0.85	%	100.86	%
Year Ended October 31, 2004			8.52	6.37	%			117,354	0.84	%	(0.28	)%	0.84	%	106.72	%
Year Ended October 31, 2005			9.98	17.14	%(e)			19,618	0.89	%(e)	(0.19	)%(e)	1.02	%	169.62	%
Year Ended October 31, 2006			9.03	13.97	%			17,029	1.26	%	0.29	%	1.60	%	53.16	%
Year Ended October 31, 2007			11.03	30.80	%(f)			20,671	0.93	%(f)	(0.19	)%(f)	1.47	%	66.16	%
Six Months Ended April 30, 2008 (Unaudited)			8.72	(10.48	)%			17,094	1.10	%	(0.29	)%	1.45	%	27.41	%


*	Calculated based on average shares outstanding.

>	Less than $0.005 per share.

(a)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(b)	Annualized for periods less than one year.

(c)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been indicated.

(d)	Portfolio turnover rate is calculated on the basis of the Fund as a whole, without the distinguishing between the classes of shares issued.

(e)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Fund related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio and net income ratio were 0.10%, 0.10%, 0.10% and 0.09% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. The corresponding impact to the total return was 0.57%, 0.57%, 0.57% and 0.56% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.


58	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FUNDS—OPPORTUNITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Realized Gains from Investment Transactions		Total Dividends

CLASS A SHARES
Year Ended October 31, 2003		$	7.83	(0.10	)	2.63		2.53		—		—
Year Ended October 31, 2004			10.36	(0.13	)	0.68		0.55		—		—
Year Ended October 31, 2005			10.91	(0.14	)	1.62		1.48		—		—
Year Ended October 31, 2006			12.39	(0.14	)*	2.43		2.29		(0.39	)	(0.39	)
Year Ended October 31, 2007			14.29	(0.16	)*	4.01		3.85		(1.73	)	(1.73	)
Six Months Ended April 30, 2008 (Unaudited)			16.41	(0.06	)*	(0.47	)	(0.53	)	(5.16	)	(5.16	)

CLASS B SHARES
Year Ended October 31, 2003		$	7.51	(0.18	)*	2.52		2.34		—		—
Year Ended October 31, 2004			9.85	(0.20	)	0.64		0.44		—		—
Year Ended October 31, 2005			10.29	(0.22	)	1.53		1.31		—		—
Year Ended October 31, 2006			11.60	(0.23	)*	2.27		2.04		(0.39	)	(0.39	)
Year Ended October 31, 2007			13.25	(0.25	)*	3.67		3.42		(1.73	)	(1.73	)
Six Months Ended April 30, 2008 (Unaudited)			14.94	(0.09	)*	(0.43	)	(0.52	)	(5.16	)	(5.16	)

CLASS C SHARES
Year Ended October 31, 2003		$	7.57	(0.18	)	2.55		2.37		—		—
Year Ended October 31, 2004			9.94	(0.22	)	0.67		0.45		—		—
Year Ended October 31, 2005			10.39	(0.21	)	1.53		1.32		—		—
Year Ended October 31, 2006			11.71	(0.23	)*	2.29		2.06		(0.39	)	(0.39	)
Year Ended October 31, 2007			13.38	(0.26	)*	3.72		3.46		(1.73	)	(1.73	)
Six Months Ended April 30, 2008 (Unaudited)			15.11	(0.09	)*	(0.44	)	(0.53	)	(5.16	)	(5.16	)


						Ratios/Supplementary Data

	Net Asset Value, End of Period			Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Year Ended October 31, 2003		$	10.36	32.31	%		$	16,695	1.65	%	(1.36	)%	2.09	%	152.05	%
Year Ended October 31, 2004			10.91	5.31	%			20,902	1.61	%	(1.24	)%	1.72	%	81.75	%
Year Ended October 31, 2005			12.39	13.57	%(f)			22,875	1.51	%(f)	(1.11	)%(f)	1.69	%(f)	63.95	%
Year Ended October 31, 2006			14.29	18.81	%			24,463	1.55	%	(1.04	)%	1.70	%	60.83	%
Year Ended October 31, 2007			16.41	30.28	%(g)			15,057	1.52	%(g)	(1.13	)%(g)	1.77	%	69.41	%
Six Months Ended April 30, 2008 (Unaudited)			10.72	(3.00	)%			12,863	1.55	%	(1.14	)%	1.86	%	39.97	%

CLASS B SHARES
Year Ended October 31, 2003		$	9.85	31.16	%		$	3,952	2.40	%	(2.11	)%	2.83	%	152.05	%
Year Ended October 31, 2004			10.29	4.47	%			4,611	2.36	%	(2.00	)%	2.47	%	81.75	%
Year Ended October 31, 2005			11.60	12.73	%(f)			4,539	2.26	%(f)	(1.86	)%(f)	2.44	%(f)	63.95	%
Year Ended October 31, 2006			13.25	17.91	%			4,768	2.30	%	(1.79	)%	2.45	%	60.83	%
Year Ended October 31, 2007			14.94	29.30	%(g)			4,928	2.26	%(g)	(1.91	)%(g)	2.52	%	69.41	%
Six Months Ended April 30, 2008 (Unaudited)			9.26	(3.30	)%			3,799	2.30	%	(1.88	)%	2.62	%	39.97	%

CLASS C SHARES
Year Ended October 31, 2003		$	9.94	31.31	%		$	395	2.40	%	(2.11	)%	2.84	%	152.05	%
Year Ended October 31, 2004			10.39	4.53	%			344	2.37	%	(2.00	)%	2.48	%	81.75	%
Year Ended October 31, 2005			11.71	12.70	%(f)			306	2.26	%(f)	(1.86	)%(f)	2.44	%(f)	63.95	%
Year Ended October 31, 2006			13.38	17.92	%			299	2.30	%	(1.78	)%	2.45	%	60.83	%
Year Ended October 31, 2007			15.11	29.32	%(g)			334	2.27	%(g)	(1.91	)%(g)	2.50	%	69.41	%
Six Months Ended April 30, 2008 (Unaudited)			9.42	(3.33	)%			315	2.30	%	(1.88	)%	2.62	%	39.97	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Opportunity Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.04%, 0.04% and 0.04% for Class A Shares, Class B Shares and Class C Shares, respectively.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.03%, 0.04% and 0.03% for Class A Shares, Class B Shares and Class C Shares, respectively.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	59

HSBC INVESTOR ADVISOR FUNDS TRUST—OPPORTUNITY FUND (ADVISOR)

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities						Dividends

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Realized Gains from Investment Transactions		Total Dividends		Net Asset Value, End of Period

CLASS I SHARES
Year Ended October 31, 2003		$	9.27	(0.06	)	3.15		3.09		—		—			$	12.36
Year Ended October 31, 2004			12.36	(0.08	)	0.79		0.71		—		—				13.07
Year Ended October 31, 2005			13.07	(0.10	)	1.97		1.87		—		—				14.94
Year Ended October 31, 2006			14.94	(0.09	)	2.93		2.84		(0.50	)	(0.50	)			17.28
Year Ended October 31, 2007			17.28	(0.11	)	4.48		4.37		(2.71	)	(2.71	)			18.94
Six Months Ended April 30, 2008 (Unaudited)			18.94	(0.04	)	(0.51	)	(0.55	)	(4.97	)	(4.97	)			13.42


			Ratios/Supplementary Data

	Total Return(b)		Net Assets at End of Period (000’s)	Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS I SHARES
Year Ended October 31, 2003	33.33	%	$326,072	1.01	%	(0.72	)%	1.01	%	152.05	%
Year Ended October 31, 2004	5.74	%	279,669	0.98	%	(0.62	)%	0.98	%	81.75	%
Year Ended October 31, 2005	14.31	%(f)	177,519	0.94	%(f)	(0.54	)%(f)	0.94	%(f)	63.95	%
Year Ended October 31, 2006	19.40	%	192,124	1.03	%	(0.51	)%	1.03	%	60.83	%
Year Ended October 31, 2007	29.42	%(g)	176,593	0.96	%(g)	(0.60	%(g)	1.03	%	69.41	%
Six Months Ended April 30, 2008 (Unaudited)	(2.69	)%	152,232	0.97	%	(0.56	)%	0.97	%	39.97	%


(a)	The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Opportunity Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return was 0.04% for the Class I Shares.

(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total return were 0.07% for the Class I Shares.


60	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FUNDS—OVERSEAS EQUITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment and Foreign Currency Transactions		Total from Investment Activities

CLASS A SHARES
Year Ended October 31, 2003		$	9.87	0.01		1.95		1.96
Year Ended October 31, 2004			11.73	0.08		2.19		2.27
Year Ended October 31, 2005			13.93	0.18		2.33		2.51
Year Ended October 31, 2006			15.59	0.22		4.45		4.67
Year Ended October 31, 2007			18.85	0.22	*	3.92		4.14
Six Months Ended April 30, 2008 (Unaudited)			20.48	0.09	*	(2.40	)	(2.31	)

CLASS B SHARES
Year Ended October 31, 2003		$	9.56	(0.06	)	1.89		1.83
Year Ended October 31, 2004			11.34	0.01	*	2.08		2.09
Year Ended October 31, 2005			13.43	0.07		2.24		2.31
Year Ended October 31, 2006			14.95	0.09		4.26		4.35
Year Ended October 31, 2007			18.00	0.10	*	3.70		3.80
Six Months Ended April 30, 2008 (Unaudited)			19.42	0.03	*	(2.27	)	(2.24	)

CLASS C SHARES
Year Ended October 31, 2003		$	9.68	(0.06	)	1.93		1.87
Year Ended October 31, 2004			11.54	(0.01	)	2.14		2.13
Year Ended October 31, 2005			13.67	0.06		2.29		2.35
Year Ended October 31, 2006			15.23	0.11		4.33		4.44
Year Ended October 31, 2007			18.37	0.11	*	3.80		3.91
Six Months Ended April 30, 2008 (Unaudited)			19.94	0.04	*	(2.35	)	(2.31	)


	Dividends

	Net Investment Income		Net Realized Gains from Investment and Foreign Currency Transactions		Total Dividends		Net Asset Value, End of Period			Total Return(b)

CLASS A SHARES
Year Ended October 31, 2003	(0.10	)	—		(0.10	)		$	11.73	20.09	%
Year Ended October 31, 2004	(0.07	)	—		(0.07	)			13.93	19.40	%
Year Ended October 31, 2005	(0.06	)	(0.79	)	(0.85	)			15.59	18.64	%
Year Ended October 31, 2006	(0.25	)	(1.16	)	(1.41	)			18.85	31.85	%
Year Ended October 31, 2007	(0.40	)	(2.11	)	(2.51	)			20.48	24.19	%(f)
Six Months Ended April 30, 2008 (Unaudited)	(0.15	)	(3.31	)	(3.46	)			14.71	(11.23	)%

CLASS B SHARES
Year Ended October 31, 2003	(0.05	)	—		(0.05	)		$	11.34	19.26	%
Year Ended October 31, 2004	—		—		—				13.43	18.43	%
Year Ended October 31, 2005	—		(0.79	)	(0.79	)			14.95	17.72	%
Year Ended October 31, 2006	(0.14	)	(1.16	)	(1.30	)			18.00	30.87	%
Year Ended October 31, 2007	(0.27	)	(2.11	)	(2.38	)			19.42	23.26	%(f)
Six Months Ended April 30, 2008 (Unaudited)	(0.03	)	(3.31	)	(3.34	)			13.84	(11.57	)%

CLASS C SHARES
Year Ended October 31, 2003	(0.01	)	—		(0.01	)		$	11.54	19.28	%
Year Ended October 31, 2004	—		—		—				13.67	18.46	%
Year Ended October 31, 2005	—		(0.79	)	(0.79	)			15.23	17.70	%
Year Ended October 31, 2006	(0.14	)	(1.16	)	(1.30	)			18.37	30.92	%
Year Ended October 31, 2007	(0.23	)	(2.11	)	(2.34	)			19.94	23.39	%(f)
Six Months Ended April 30, 2008 (Unaudited)	(0.02	)	(3.31	)	(3.33	)			14.30	(11.61	)%


	Ratios/Supplementary Data

	Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Year Ended October 31, 2003		$	10,096	1.85	%	0.07	%	2.34	%	68.51	%
Year Ended October 31, 2004			17,721	1.78	%	0.79	%	1.88	%	106.11	%
Year Ended October 31, 2005			20,680	1.66	%	1.21	%	1.66	%	31.32	%
Year Ended October 31, 2006			22,761	1.67	%	1.24	%	1.67	%	33.39	%
Year Ended October 31, 2007			16,078	1.62	%(f)	1.15	%(f)	1.64	%	26.08	%
Six Months Ended April 30, 2008 (Unaudited)			11,320	1.70	%	1.13	%	1.73	%	13.91	%

CLASS B SHARES
Year Ended October 31, 2003		$	1,076	2.60	%	(0.62	)%	3.16	%	68.51	%
Year Ended October 31, 2004			2,061	2.53	%	0.05	%	2.63	%	106.11	%
Year Ended October 31, 2005			2,403	2.41	%	0.47	%	2.41	%	31.32	%
Year Ended October 31, 2006			3,234	2.42	%	0.58	%	2.42	%	33.39	%
Year Ended October 31, 2007			3,698	2.37	%(f)	0.59	%(f)	2.40	%	26.08	%
Six Months Ended April 30, 2008 (Unaudited)			2,859	2.45	%	0.41	%	2.48	%	13.91	%

CLASS C SHARES
Year Ended October 31, 2003		$	121	2.60	%	(0.64	)%	3.17	%	68.51	%
Year Ended October 31, 2004			137	2.54	%	(0.10	)%	2.66	%	106.11	%
Year Ended October 31, 2005			164	2.41	%	0.48	%	2.41	%	31.32	%
Year Ended October 31, 2006			163	2.41	%	0.58	%	2.41	%	33.39	%
Year Ended October 31, 2007			147	2.30	%(f)	0.59	%(f)	2.32	%	26.08	%
Six Months Ended April 30, 2008 (Unaudited)			129	2.45	%	0.49	%	2.49	%	13.91	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expense assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor International Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.02%, 0.03% and 0.02% for Class A Shares, Class B Shares and Class C Shares, respectively.


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	61

HSBC INVESTOR FUNDS—VALUE FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated. (a)


				Investment Activities

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities

CLASS A SHARES
Period Ended October 31, 2004(f)		$	12.68	0.05		0.69		0.74
Year Ended October 31, 2005			13.38	0.10		1.86		1.96
Year Ended October 31, 2006			15.13	0.12	*	2.95		3.07
Year Ended October 31, 2007			16.72	0.14	*	1.38		1.52
Six Months Ended April 30, 2008 (Unaudited)			16.54	0.06	*	(1.76	)	(1.70	)

CLASS B SHARES
Period Ended October 31, 2004(f)		$	12.28	—		0.68		0.68
Year Ended October 31, 2005			12.95	(0.02	)	1.80		1.78
Year Ended October 31, 2006			14.60	—	*	2.84		2.84
Year Ended October 31, 2007			16.08	0.02	*	1.32		1.34
Six Months Ended April 30, 2008 (Unaudited)			15.83	0.01	*	(1.69	)	(1.68	)

CLASS C SHARES
Period Ended October 31, 2004(f)		$	12.35	0.01		0.67		0.68
Year Ended October 31, 2005			13.01	(0.02	)	1.82		1.80
Year Ended October 31, 2006			14.67	—	*	2.85		2.85
Year Ended October 31, 2007			16.18	0.02	*	1.32		1.34
Six Months Ended April 30, 2008 (Unaudited)			15.94	0.02	*	(1.70	)	(1.68	)

CLASS I SHARES
Period Ended October 31, 2004(f)		$	12.67	0.07		0.70		0.77
Year Ended October 31, 2005			13.38	0.13		1.86		1.99
Year Ended October 31, 2006			15.13	0.15	*	2.94		3.09
Year Ended October 31, 2007			16.70	0.18	*	1.38		1.56
Six Months Ended April 30, 2008 (Unaudited)			16.52	0.08	*	(1.76	)	(1.68	)


	Dividends

	Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends		Net Asset Value, End of Period			Total Return(b)

CLASS A SHARES
Period Ended October 31, 2004(f)	(0.04	)	—		(0.04	)		$	13.38	7.79	%
Year Ended October 31, 2005	(0.08	)	(0.13	)	(0.21	)			15.13	14.69	%(g)
Year Ended October 31, 2006	(0.19	)	(1.29	)	(1.48	)			16.72	21.70	%
Year Ended October 31, 2007	(0.13	)	(1.57	)	(1.70	)			16.54	9.77	%(h)
Six Months Ended April 30, 2008 (Unaudited)	(0.07	)	(1.30	)	(1.37	)			13.47	(10.71	)%

CLASS B SHARES
Period Ended October 31, 2004(f)	(0.01	)	—		(0.01	)		$	12.95	9.06	%
Year Ended October 31, 2005	—		(0.13	)	(0.13	)			14.60	13.78	%(g)
Year Ended October 31, 2006	(0.07	)	(1.29	)	(1.36	)			16.08	20.78	%
Year Ended October 31, 2007	(0.02	)	(1.57	)	(1.59	)			15.83	8.92	%(h)
Six Months Ended April 30, 2008 (Unaudited)	(0.01	)	(1.30	)	(1.31	)			12.84	(11.04	)%

CLASS C SHARES
Period Ended October 31, 2004(f)	(0.02	)	—		(0.02	)		$	13.01	8.47	%
Year Ended October 31, 2005	(0.01	)	(0.13	)	(0.14	)			14.67	13.86	%(g)
Year Ended October 31, 2006	(0.05	)	(1.29	)	(1.34	)			16.18	20.72	%
Year Ended October 31, 2007	(0.01	)	(1.57	)	(1.58	)			15.94	8.95	%(h)
Six Months Ended April 30, 2008 (Unaudited)	(0.01	)	(1.30	)	(1.31	)			12.95	(11.06	)%

CLASS I SHARES
Period Ended October 31, 2004(f)	(0.06	)	—		(0.06	)		$	13.38	6.05	%
Year Ended October 31, 2005	(0.11	)	(0.13	)	(0.24	)			15.13	14.96	%(g)
Year Ended October 31, 2006	(0.23	)	(1.29	)	(1.52	)			16.70	21.90	%
Year Ended October 31, 2007	(0.17	)	(1.57	)	(1.74	)			16.52	10.04	%(h)
Six Months Ended April 30, 2008 (Unaudited)	(0.09	)	(1.30	)	(1.39	)			13.45	(10.60	)%


	Ratios/Supplementary Data

	Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)

CLASS A SHARES
Period Ended October 31, 2004(f)		$	20,933	1.20	%	0.81	%	1.25	%	10.33	%
Year Ended October 31, 2005			23,315	1.15	%(g)	0.64	%(g)	1.30	%(g)	16.45	%
Year Ended October 31, 2006			24,688	1.20	%	0.74	%	1.43	%	20.63	%
Year Ended October 31, 2007			27,225	1.11	%(h)	0.84	%(h)	1.25	%	18.67	%
Six Months Ended April 30, 2008 (Unaudited)			21,117	1.19	%	0.92	%	1.19	%	14.42	%

CLASS B SHARES
Period Ended October 31, 2004(f)		$	1,938	1.95	%	0.05	%	2.00	%	10.33	%
Year Ended October 31, 2005			1,767	1.90	%(g)	(0.10	)%(g)	2.04	%(g)	16.45	%
Year Ended October 31, 2006			1,939	1.95	%	(0.01	)%	2.18	%	20.63	%
Year Ended October 31, 2007			1,772	1.87	%(h)	0.10	%(h)	2.00	%	18.67	%
Six Months Ended April 30, 2008 (Unaudited)			1,406	1.94	%	0.16	%	1.94	%	14.42	%

CLASS C SHARES
Period Ended October 31, 2004(f)		$	399	1.95	%	0.04	%	2.00	%	10.33	%
Year Ended October 31, 2005			388	1.90	%(g)	(0.12	)%(g)	2.05	%(g)	16.45	%
Year Ended October 31, 2006			157	1.95	%	0.01	%	2.17	%	20.63	%
Year Ended October 31, 2007			126	1.87	%(h)	0.11	%(h)	1.99	%	18.67	%
Six Months Ended April 30, 2008 (Unaudited)			100	1.94	%	0.17	%	1.94	%	14.42	%

CLASS I SHARES
Period Ended October 31, 2004(f)		$	25,600	0.95	%	1.05	%	1.00	%	10.33	%
Year Ended October 31, 2005			15,044	0.90	%(g)	0.91	%(g)	1.02	%(g)	16.45	%
Year Ended October 31, 2006			18,036	0.95	%	0.99	%	1.18	%	20.63	%
Year Ended October 31, 2007			28,692	0.87	%(h)	1.07	%(h)	0.99	%	18.67	%
Six Months Ended April 30, 2008 (Unaudited)			25,306	0.94	%	1.16	%	0.94	%	14.42	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Value Portfolio.

(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.

(c)	Annualized for periods less than one year.

(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets.

(f)	Class A Shares, Class B Shares, Class C Shares and Class I Shares commenced operations on May 10, 2004.

(g)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to violation of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio, gross expense ratio and total return were 0.05%, 0.05%, 0.05% and 0.05% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(h)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.09%, 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.


62	HSBC INVESTOR FAMILY OF FUNDS	See notes to financial statements.

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2008 (Unaudited)


1.	Organization:

	The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, and the HSBC Advisor Funds Trust (the “Advisor Trust”), a Massachusetts business trust organized on April 5, 1996, are registered under the Investment Company Act of 1940, as amended (the “Act”), as open-end management investment companies. As of April 30, 2008, the Trust is comprised of 20 separate operational funds and the Advisor Trust is comprised of 3 separate operational funds. The accompanying financial statements are presented for the following 13 funds (individually a “Fund”, collectively the “Funds”) of the Trust and Advisor Trust (collectively the “Trusts”):


Fund	Short Name	Trust

HSBC Investor Core Plus Fixed Income Fund	Core Plus Fixed Income	Advisor Trust
(Advisor)	Fund (Advisor)
HSBC Investor Core Plus Fixed Income Fund	Core Plus Fixed Income Fund	Trust
HSBC Investor High Yield Fixed Income Fund	High Yield Fixed	Trust
	Income Fund
HSBC Investor Intermediate Duration Fixed	Intermediate Duration
Income Fund	Fixed Income Fund	Trust
HSBC Investor New York Tax-Free Bond Fund	New York Tax-Free	Trust
	Bond Fund
HSBC Investor Growth Fund	Growth Fund	Trust
HSBC Investor Growth and Income Fund	Growth and Income Fund	Trust
HSBC Investor International Equity Fund	International Equity Fund	Advisor Trust
HSBC Investor Mid-Cap Fund	Mid-Cap Fund	Trust
HSBC Investor Opportunity Fund	Opportunity Fund	Trust
HSBC Investor Opportunity Fund (Advisor)	Opportunity Fund (Advisor)	Advisor Trust
HSBC Investor Overseas Equity Fund	Overseas Fund	Trust
HSBC Investor Value Fund	Value Fund	Trust


	All the funds in the Trusts’, except the New York Tax-Free Bond Fund are diversified funds. The New York Tax-Free Bond Fund is a non-diversified fund which means they may concentrate their investments in the securities of a limited number of issuers. Each Fund is a part of the HSBC Family of Funds.

	Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. The Core Plus Fixed Income Fund (Advisor), Core Plus Fixed Income Fund, High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, Growth Fund, International Equity Fund, Opportunity Fund, Opportunity Fund (Advisor), Overseas Equity Fund, and the Value Fund (individually a “Feeder Fund”, collectively the “Feeder Funds”) utilize the master-feeder fund structure and seek to achieve their investment objectives by investing all of their investable assets in their respective Portfolios (as defined below).


Fund	Respective Portfolio	Proportionate Interest on April 30, 2008

Core Plus Fixed Income Fund	HSBC Investor Core Plus Fixed Income Portfolio	65.1	%
Fund (Advisor)
Core Plus Fixed Income Fund	HSBC Investor Core Plus Fixed Income Portfolio	14.4	%
High Yield Fixed Income Fund	HSBC Investor High Yield Fixed Income Portfolio	64.3	%
Intermediate Duration	HSBC Investor Intermediate Duration	93.5	%
Fixed Income Fund	Fixed Income Portfolio
Growth Fund	HSBC Investor Growth Portfolio	64.0	%
International Equity Fund	HSBC Investor International Equity Portfolio	83.4	%
Opportunity Fund	HSBC Investor Opportunity Portfolio	77.7	%
Opportunity Fund (Advisor)	HSBC Investor Opportunity Portfolio	8.7	%
Overseas Equity Fund	HSBC Investor International Equity Portfolio	3.7	%
Value Fund	HSBC Investor Value Portfolio	66.5	%


HSBC INVESTOR FAMILY OF FUNDS	63

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. The HSBC Investor Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio”, collectively the “Portfolios”) are diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements.

	The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the Feeder Funds.

	The Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. The High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, New York Tax-Free Bond Fund, Growth Fund, Growth and Income Fund, Mid-Cap Fund, and the Value Fund each offer four classes of shares: Class A Shares, Class B Shares, Class C Shares, and Class I Shares. The Core Plus Fixed Income Fund (Advisor), International Equity Fund, and the Opportunity Fund (Advisor) each offer one class of shares: Class I Shares. The Core Plus Fixed Income Fund, Opportunity Fund, and the Overseas Equity Fund each offer three classes of shares: Class A Shares, Class B Shares, and Class C Shares. Class A Shares of the Growth Fund, Growth and Income Fund, Mid-Cap Fund, Opportunity Fund, Overseas Fund, and Value Fund have a maximum sales charge of 5.00% as a percentage of the original purchase price while Class A Shares of the Core Plus Fixed Income Fund, High Yield Fixed Income Fund, Intermediate Duration Fixed Income Fund, and New York Tax-Free Bond Fund have a maximum sales charge of 4.75% as a percentage of the original purchase price. The Class B Shares of the Funds are offered without any front-end sales charge but will be subject to a contingent deferred sales charge (“CDSC”) ranging from a maximum of 4.00% if redeemed less than one year after purchase to 0.00% if redeemed more than four years after purchase. Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% if redeemed less than one year after purchase. No sales charges are assessed with respect to Class I Shares of the Funds. Each class of shares in the Funds has identical rights and privileges except with respect to arrangements pertaining to shareholder servicing or distribution, class-related expenses, voting rights on matters affecting a single class of shares, and the exchange privilege of each class of shares.

	Under the Trusts’ organizational documents, the Funds’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts with service providers, which also provide for indemnifications by the Funds. The Funds’ maximum exposure under these arrangements is unknown, as this would involve any future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.

2.	Significant Accounting Policies:

	The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

	Securities Valuation:

	A. New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund

	Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Funds’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as the institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security.


64	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Funds’ Board of Trustees. In addition, specific securities may need to be valued by or at the direction of the Funds’ Board of Trustees due to potentially significant events. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters and litigation. Examples of potentially significant events that could affect multiple securities held by a Fund include governmental actions, natural disasters and armed conflicts.

	B. Feeder Funds

	The Feeder Funds record their investments in their respective Portfolios at fair value. Securities of the Portfolios are recorded at fair value as more fully discussed in the notes to those financial statements.

	Investment Transactions and Related Income:

	A. New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund

	Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.

	B. Feeder Funds

	The Feeder Funds record daily their pro-rata share of income, expenses, changes in unrealized appreciation and depreciation and realized gains and losses derived from their respective portfolios. In addition, the Feeder Funds accrue their own expenses daily as incurred.

	Futures Contracts:

	The New York Tax-Free Bond Fund, Growth and Income Fund, and Mid-Cap Fund may invest in futures contracts for the purpose of hedging existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made each day, depending on the daily fluctuations in the fair value of the underlying security. A gain or loss equal to the daily variation margin is recognized on a daily basis.

	Should market conditions move unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. As of April 30, 2008, the Funds did not hold any investments in futures contracts.

	Options:

	The Growth and Income Fund and the Mid-Cap Fund may write covered call options against some of the securities in their portfolios provided the securities are listed on a national securities exchange. A call option is “covered” if the Fund owns the underlying securities covered by the call. The premium received is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain or loss. If the call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining a realized gain or loss. For the period ended April 30, 2008, the Funds did not write any covered call options.

	Allocations:

	Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the HSBC Investor Family of Funds in relation to the net assets of each Fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	expense. In addition, income, expenses (other than class specific expenses), and realized and unrealized gains and losses in investments are allocated to each class of shares based on its relative net assets on a daily basis.

	Dividends to Shareholders:

	The Core Plus Fixed Income Fund (Advisor), Core Plus Fixed Income Fund, High Yield Fixed Income, Intermediate Duration Fixed Income Fund, and the New York Tax-Free Bond Fund declare all net investment income daily as dividends to their shareholders and distribute such dividends monthly. Dividends from net investment income, if any, are declared and distributed semi-annually in the case of the Growth Fund, Growth and Income Fund, Opportunity Fund, Opportunity (Advisor) and the Value Fund, and annually in the case of the International Equity Fund, Mid-Cap Fund, and Overseas Fund.

	The Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the Funds’ shareholders to the extent necessary to avoid the federal excise tax on certain undistributed income and net capital gains of regulated investment companies.

	The amount and character of net investment income and net realized gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., reclassification of market discounts, certain gain/loss, paydowns, and certain distributions), such amounts are reclassified within the composition of net assets; temporary differences (e.g., wash losses and post-october loss deferrals) do not require reclassification. The Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. To the extent distributions from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital.

	Redemption Fee:

	A redemption fee of 2.00% is charged and recorded as paid-in-capital for any shares redeemed or exchanged after holding them for less than 30 days. This fee does not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that cannot implement the fee. For the fiscal year and period ended October 31, 2007 and April 30, 2008, the following Funds collected redemption fees as follows:


Fund	Fees Collected October 31, 2007			Fees Collected April 30, 2008

Core Plus Fixed Income Fund (Advisor)		$	12		$	1,055
Core Plus Fixed Income Fund			356			1
High Yield Fixed Income Fund			66			69
Intermediate Duration Fixed Income Fund			46			1
New York Tax-Free Bond Fund			2,570			2
Growth Fund			1,191			875
Growth and Income Fund			14			45
International Equity Fund			9,912			2,530
Mid-Cap Fund			110			14
Opportunity Fund (Advisor)			—			943
Opportunity Fund			158			100
Overseas Equity Fund			396			87
Value Fund			550			764


	Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required.

	In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition

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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations.

	New Accounting Pronouncements:

	In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

	In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Funds derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures.

3.	Related Party Transactions

	Investment Management:

	HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the New York Tax-Free Bond Fund, Growth and Income Fund, and the Mid-Cap Fund. As Investment Adviser, HSBC manages the investments of the Funds and continuously reviews, supervises, and administers the Funds’ investments. Sub-Investment Adviser services are provided by Transamerica Investment Management, LLC (“Transamerica”) and Munder Capital Management (“Munder”) for the Growth and Income Fund and Mid-Cap Fund, respectively.

	For its services as Investment Adviser, HSBC is entitled to receive a fee, accrued daily and paid monthly, at an annual rate of 0.25% of the average daily net assets of the New York Tax-Free Bond Fund.

	For its services as Investment Adviser and Sub-Investment Adviser, respectively, HSBC and Transamerica receive, in the aggregate, a fee, accrued daily and paid monthly at an annual rate of 0.60% of the Growth and Income Fund’s average daily net assets.

	For its services as Investment Adviser and Sub-Investment Adviser, respectively, HSBC and Munder receive, in the aggregate, a fee, accrued daily and paid monthly at an annual rate of 0.75% of the Mid-Cap Fund’s average daily net assets.

	Feeder Funds are not directly charged any investment management fees.

	Administration:

	HSBC serves the Funds as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Funds a fee, accrued daily and paid monthly, at an annual rate of:


	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


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	of net assets for each class. For assets invested in the underlying Portfolios by the Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half, for a combination of the total fee rate above.

	The administration fees accrued for each class by fund, of which 50% of such fees are deemed to be class specific, are as follows:


	Core Plus Fixed Income Fund (Advisor)		Core Plus Fixed Income Fund		High Yield Fixed Income Fund		Intermediate Duration Fixed Income Fund		New York Tax-Free Bond Fund		Growth Fund		Growth and Income Fund

Class A	$	—	$	1,486	$	422	$	129	$	7,175	$	2,996	$	416
Class B		—		386		251		293		1,747		164		974
Class C		—		10		31		33		141		10		9
Class I		8,422		—		292		1,116		4,560		3,155		7,858

Total	$	8,422	$	1,882	$	996	$	1,571	$	13,623	$	6,325	$	9,257


	International Equity Fund		Mid-Cap Fund		Opportunity Fund		Opportunity Fund (Advisor)		Overseas Equity Fund		Value Fund

Class A	$	—	$	1,122	$	1,438	$	—	$	1,413	$	2,615
Class B		—		1,174		482		—		345		175
Class C		—		16		34		—		14		13
Class I		36,692		3,883		—		17,105		—		2,941

Total	$	36,692	$	6,195	$	1,954	$	17,105	$	1,772	$	5,744


	Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trust’s sub-administrator, subject to the general supervision of the Funds’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC.

	Under a Compliance Services Agreement between the Funds and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Funds’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain expenses. Expenses incurred by each fund are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio.

	Distribution Plan:

	Prior to August 1, 2007, BISYS Fund Services Limited Partnership (“BISYS”), a wholly-owned subsidiary of BISYS Fund Services, Inc., served the Trust as Distributor. Since August 1, 2007, Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trust as Distributor (the “Distributor”). The Trusts have adopted a non-compensatory Distribution Plan and Agreement (the “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the Funds, respectively. Foreside, as Distributor, also received $405,635, $247,179 and $12,433 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $396,664, $246,553 and $12,419 were reallowed to HSBC affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively.

	Shareholder Servicing:

	The Trusts have adopted a Shareholder Services Plan which provides for payments to shareholder servicing agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee up to 0.25%, 0.25%, and 0.25% that is computed daily and paid monthly


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	equal to a percentage of average daily net assets of Class A Shares, Class B Shares, and Class C Shares of the Funds, respectively. The aggregate fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Administrative Services Plans currently are not intended to exceed 0.25% of the average daily net assets of Class A Shares, and 1.00% of the average daily net assets of Class B Shares and Class C Shares.

	Fund Accounting, Transfer Agency, Custodian and Trustee:

	Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent for the Funds, Citi Ohio receives a fee based on the number of Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant for the Funds, Citi Ohio receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses.

	Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.

	Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	Fee Reductions:

	The Investment Adviser has agreed to contractually waive 0.05% of its management fee, computed daily and paid monthly, and based on the average daily net assets of the Growth and Income Fund and the Mid-Cap Fund.

	The Investment Adviser has also agreed to contractually limit, through March 1, 2009, the total expenses, exclusive of interest, taxes, brokerage commissions and extraordinary expenses, of certain Funds. Each affected Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows:


Fund	Class	Current Contractual Expense Limitation

Core Plus Fixed Income Fund (Advisor)	I	0.45%
Core Plus Fixed Income Fund	A	0.70%
Core Plus Fixed Income Fund	B	1.45%
Core Plus Fixed Income Fund	C	1.45%
High Yield Fixed Income Fund	A	0.80%
High Yield Fixed Income Fund	B	1.55%
High Yield Fixed Income Fund	C	1.55%
High Yield Fixed Income Fund	I	0.55%
Intermediate Duration Fixed Income Fund	A	0.65%
Intermediate Duration Fixed Income Fund	B	1.40%
Intermediate Duration Fixed Income Fund	C	1.40%
Intermediate Duration Fixed Income Fund	I	0.40%
Growth Fund	A	1.20%
Growth Fund	B	1.95%
Growth Fund	C	1.95%
Growth Fund	I	0.95%
Growth and Income Fund	A	1.20%
Growth and Income Fund	B	1.95%
Growth and Income Fund	C	1.95%
Growth and Income Fund	I	0.95%
Mid-Cap Fund	A	1.35%
Mid-Cap Fund	B	2.10%
Mid-Cap Fund	C	2.10%
Mid-Cap Fund	I	1.10%
Overseas Equity Fund	A	1.85%
Overseas Equity Fund	B	2.60%
Overseas Equity Fund	C	2.60%
Opportunity Fund	A	1.65%
Opportunity Fund	B	2.40%
Opportunity Fund	C	2.40%
Value Fund	A	1.20%
Value Fund	B	1.95%
Value Fund	C	1.95%
Value Fund	I	0.95%

The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of the Funds. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time.


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


4.	Investment Transactions

	Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2008 were as follows:


Fund	Purchases		Sales

New York Tax-Free Bond Fund	$	—	$	3,346,426
Growth and Income Fund		6,674,231		15,700,795
Mid-Cap Fund		7,579,766		10,352,377


	There were no long-term U.S. Government securities held during the period ended April 30, 2008.

	Contributions and withdrawals of the respective Portfolios for the year ended April 30, 2008 totaled:


Fund		Contributions		Withdrawals

Core Plus Fixed Income Fund (Advisor)	$	6,950,400	$	18,018,143
Core Plus Fixed Income Fund		278,523		2,118,054
High Yield Fixed Income Fund		889,031		701,696
Intermediate Duration Fixed Income Fund		1,304,962		2,148,158
Growth Fund		1,494,914		6,509,435
International Equity Fund		15,075,675		41,184,448
Opportunity Fund		555,838		3,556,621
Opportunity Fund (Advisor)		5,119,887		24,652,274
Overseas Equity Fund		189,328		3,594,616
Value Fund		1,710,164		5,601,376


5.	Concentration of Credit Risk

	The New York Tax-Free Bond Fund invests primarily in debt obligations issued by the State of New York and its respective political subdivisions, agencies, and public authorities. The Fund is more susceptible to economic and political factors adversely affecting issuers of New York specific municipal securities than are municipal bond funds that are not concentrated in these issuers to the same extent.

6.	Federal Income Tax Information:

	At April 30, 2008, the cost basis for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:



Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)

New York Tax-Free Bond Fund	$	58,168,494	$	1,514,445	$	(385,118	)	$	1,129,327
Growth and Income Fund		30,945,757		9,652,907		(875,614	)		8,777,293
Mid-Cap Fund		21,071,342		6,916,975		(1,199,961	)		5,717,014


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	The tax character of dividends paid by the Funds as of the latest tax year ended year ended October 31, 2007 were as follows:


	Dividends paid from

	Ordinary Income		Net Long Term Capital Gains		Total Taxable Dividends		Tax Exempt Distributions		Total Dividends Paid(1)

Core Plus Fixed Income Fund (Advisor)	$	4,297,819	$	—	$	4,297,819	$	—	$	4,297,819
Core Plus Fixed Income Fund		873,677		—		873,677		—		873,677
High Yield Fixed Income Fund		704,138		—		704,138		—		704,138
Intermediate Duration Fixed Income Fund		866,868		—		886,868		—		886,868
New York Tax-Free Bond Fund		19,599		9,094		28,693		2,085,602		2,114,295
Growth Fund		25,419		3,019,000		3,044,419		—		3,044,419
Growth and Income Fund		126,478		—		126,478		—		126,478
International Equity Fund		8,337,987		22,931,569		31,267,556		—		31,269,556
Mid-Cap Fund		647,121		1,300,752		1947,873		—		1,947,873
Opportunity Fund		75,818		3,560,217		3,636,035		—		3,636,035
Opportunity Fund (Advisor)		3,149,480		26,789,336		29,938,816		—		29,938,816
Overseas Equity Fund		667,589		2,786,165		3,453,754		—		3,453,754
Value Fund		677,034		4,064,790		4,741,824		—		4,741,824


	As of the latest tax year ended October 31, 2007, the components of accumulated earnings/(deficit) on a tax basis for the Funds were as follows:


	Undistributed Ordinary Income		Undistributed Tax Exempt Income		Undistributed Long Term Capital Gains		Accumulated Earnings		Dividends Payable			Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)(2)			Total Accumulated Earnings/ (Deficit)

Core Plus Fixed Income Fund (Advisor)	$	502,414	$	—	$	562,425	$	1,064,839	$	(382,197	)	$	—		$	(166,918	)	$	515,724
Core Plus Fixed Income Fund		89,455		—		—		89,455		(76,447	)		(577,978	)		(36,900	)		(581,870	)
High Yield Fixed Income Fund		84,276		—		69,024		153,300		(58,530	)		—			(98,097	)		(3,327	)
Intermediate Duration Fixed Income Fund		87,279		—		53,298		140,577		(64,168	)		—			(83,160	)		(6,751	)
New York Tax-Free Bond Fund		23,394		205,608		56,101		285,103		(184,067	)		—			1,654,630			1,755,666
Growth Fund		—		—		2,892,354		2,892,354		—			—			15,509,956			18,402,310
Growth and Income Fund		5,574		—		—		5,574		—			(5,725,929	)		17,649,148			11,928,793
International Equity Fund		10,638,534		—		24,126,978		34,765,512		—			—			100,539,759			135,305,271
Mid-Cap Fund		—		—		3,530,284		3,530,284		—			—			10,393,959			13,924,243
Opportunity Fund		1,084,596		—		4,953,733		6,038,329		—			—			4,335,184			10,373,513
Opportunity Fund (Advisor)		9,223,734		—		35,976,501		45,200,235		—			—			33,322,824			78,523,059
Overseas Equity Fund		562,242		—		2,487,633		3,049,875		—			—			8,491,660			11,541,535
Value Fund		503,590		—		4,085,539		4,589,129		—			—			9,330,115			13,919,244


	The tax character of current year distributions paid and the tax basis of the current components of accumulated earnings and any capital loss carryforwards will be determined at the end of the current tax year ending October 31, 2008.

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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	As of the latest tax year ended October 31, 2007, the following Funds have net capital carryforwards, which are available to offset future realized gains.


Fund	Amount		Expires

Core Plus Fixed Income Fund	$	185,453		2012
		372,525		2014
Growth and Income Fund		5,725,929		2011


7.	Legal and Regulatory Matters:

	On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements.

8.	Subsequent Event:

	At a board meeting in June 2008, the Board of Trustees approved a reorganization whereby, subject shareholder approval, the Growth Fund will acquire the assets and liabilities of the Growth and Income Fund. The reorganization is scheduled to be completed in the third quarter of 2008.


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Investment Adviser Contract Approval—April 30, 2008 (Unaudited)

The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”).

In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others:


	Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale.

	Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size.

	Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds.

	Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds.

Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements.


74	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of April 30, 2008

As a shareholder of the HSBC Investor Funds (“Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and /or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these cost with the ongoing costs of investing in other mutual funds.

These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008.

Actual Example

The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.


		Beginning Account Value 11/1/07			Ending Account Value 4/30/08			Expenses Paid During Period* 11/1/07 - 4/30/08			Annualized Expense Ratio During Period 11/1/07 - 4/30/08

Core Plus Fixed Income Fund (Advisor)	Class I Shares		$	1,000.00		$	991.90		$	2.23		0.45	%
Core Plus Fixed Income Fund	Class A Shares			1,000.00			989.60			3.46		0.70	%
	Class B Shares			1,000.00			985.90			7.16		1.45	%
	Class C Shares			1,000.00			985.90			7.16		1.45	%
High Yield Fixed Income Fund	Class A Shares			1,000.00			983.50			3.95		0.80	%
	Class B Shares			1,000.00			980.80			7.63		1.55	%
	Class C Shares			1,000.00			979.70			7.63		1.55	%
	Class I Shares			1,000.00			984.70			2.71		0.55	%
Intermediate Duration Fixed Income Fund	Class A Shares			1,000.00			985.10			3.21		0.65	%
	Class B Shares			1,000.00			981.50			6.90		1.40	%
	Class C Shares			1,000.00			982.50			6.90		1.40	%
	Class I Shares			1,000.00			987.40			1.98		0.40	%
New York Tax-Free Bond Fund	Class A Shares			1,000.00			1,011.10			4.15		0.83	%
	Class B Shares			1,000.00			1,007.40			7.94		1.59	%
	Class C Shares			1,000.00			1,007.30			7.94		1.59	%
	Class I Shares			1,000.00			1,012.40			2.90		0.58	%
Growth Fund	Class A Shares			1,000.00			913.50			5.61		1.18	%
	Class B Shares			1,000.00			909.80			9.21		1.94	%
	Class C Shares			1,000.00			909.80			9.16		1.93	%
	Class I Shares			1,000.00			914.40			4.43		0.93	%
Growth & Income Fund	Class A Shares			1,000.00			898.10			5.43		1.15	%
	Class B Shares			1,000.00			893.90			8.99		1.91	%
	Class C Shares			1,000.00			894.70			9.04		1.92	%
	Class I Shares			1,000.00			898.60			4.30		0.91	%
International Equity Fund	Class I Shares			1,000.00			891.80			4.09		0.87	%


HSBC INVESTOR FAMILY OF FUNDS	75

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued)


		Beginning Account Value 11/1/07			Ending Account Value 4/30/08			Expenses Paid During Period* 11/1/07 - 4/30/08			Annualized Expense Ratio During Period 11/1/07 - 4/30/08

Mid-Cap Fund	Class A Shares		$	1,000.00		$	893.80		$	6.36		1.35	%
	Class B Shares			1,000.00			890.60			9.87		2.10	%
	Class C Shares			1,000.00			890.70			9.87		2.10	%
	Class I Shares			1,000.00			895.20			5.18		1.10	%
Overseas Equity Fund	Class A Shares			1,000.00			887.70			7.98		1.70	%
	Class B Shares			1,000.00			884.30			11.48		2.45	%
	Class C Shares			1,000.00			883.90			11.48		2.45	%
Opportunity Fund	Class A Shares			1,000.00			970.00			7.59		1.55	%
	Class B Shares			1,000.00			967.00			11.25		2.30	%
	Class C Shares			1,000.00			966.70			11.25		2.30	%
Opportunity Fund (Advisor)	Class I Shares			1,000.00			973.10			4.76		0.97	%
Value Fund	Class A Shares			1,000.00			892.90			5.60		1.19	%
	Class B Shares			1,000.00			889.60			9.11		1.94	%
	Class C Shares			1,000.00			889.40			9.11		1.94	%
	Class I Shares			1,000.00			894.00			4.43		0.94	%



*	Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the on half year period).


76	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued)

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on each 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 Account Value 11/1/07			Ending Account Value 4/30/08			Expenses Paid During Period* 11/1/07 - 4/30/08			Annualized Expense Ratio During Period 11/1/07 - 4/30/08

Core Plus Fixed Income Fund (Advisor)	Class I Shares		$	1,000.00		$	1,022.63		$	2.26		0.45	%
Core Plus Fixed Income Fund	Class A Shares			1,000.00			1,021.38			3.52		0.70	%
	Class B Shares			1,000.00			1,017.65			7.27		1.45	%
	Class C Shares			1,000.00			1,017.65			7.27		1.45	%
High Yield Fixed Income Fund	Class A Shares			1,000.00			1,020.89			4.02		0.80	%
	Class B Shares			1,000.00			1,017.16			7.77		1.55	%
	Class C Shares			1,000.00			1,017.16			7.77		1.55	%
	Class I Shares			1,000.00			1,022.13			2.77		0.55	%
Intermediate Duration Fixed Income Fund	Class A Shares			1,000.00			1,021.63			3.27		0.65	%
	Class B Shares			1,000.00			1,017.90			7.02		1.40	%
	Class C Shares			1,000.00			1,017.90			7.02		1.40	%
	Class I Shares			1,000.00			1,022.87			2.01		0.40	%
New York Tax-Free Bond Fund	Class A Shares			1,000.00			1,020.74			4.17		0.83	%
	Class B Shares			1,000.00			1,016.96			7.97		1.59	%
	Class C Shares			1,000.00			1,016.96			7.97		1.59	%
	Class I Shares			1,000.00			1,021.98			2.92		0.58	%
Growth Fund	Class A Shares			1,000.00			1,019.00			5.92		1.18	%
	Class B Shares			1,000.00			1,015.22			9.72		1.94	%
	Class C Shares			1,000.00			1,015.27			9.67		1.93	%
	Class I Shares			1,000.00			1,020.24			4.67		0.93	%
Growth & Income Fund	Class A Shares			1,000.00			1,019.14			5.77		1.15	%
	Class B Shares			1,000.00			1,015.37			9.57		1.91	%
	Class C Shares			1,000.00			1,015.32			9.62		1.92	%
	Class I Shares			1,000.00			1,020.34			4.57		0.91	%
International Equity Fund	Class I Shares			1,000.00			1,020.54			4.37		0.87	%
Mid-Cap Fund	Class A Shares			1,000.00			1,018.15			6.77		1.35	%
	Class B Shares			1,000.00			1,014.42			10.52		2.10	%
	Class C Shares			1,000.00			1,014.42			10.52		2.10	%
	Class I Shares			1,000.00			1,019.39			5.52		1.10	%


HSBC INVESTOR FAMILY OF FUNDS	77

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of April 30, 2008 (continued)


		Beginning Account Value 11/1/07			Ending Account Value 4/30/08			Expenses Paid During Period* 11/1/07 - 4/30/08			Annualized Expense Ratio During Period 11/1/07 - 4/30/08

Overseas Equity Fund	Class A Shares		$	1,000.00		$	1,016.41		$	8.52		1.70	%
	Class B Shares			1,000.00			1,012.68			12.26		2.45	%
	Class C Shares			1,000.00			1,012.68			12.26		2.45	%
Opportunity Fund	Class A Shares			1,000.00			1,017.16			7.77		1.55	%
	Class B Shares			1,000.00			1,013.43			11.51		2.30	%
	Class C Shares			1,000.00			1,013.43			11.51		2.30	%
Opportunity Fund (Advisor)	Class I Shares			1,000.00			1,020.04			4.87		0.97	%
Value Fund	Class A Shares			1,000.00			1,018.95			5.97		1.19	%
	Class B Shares			1,000.00			1,015.22			9.72		1.94	%
	Class C Shares			1,000.00			1,015.22			9.72		1.94	%
	Class I Shares			1,000.00			1,020.19			4.72		0.94	%



*	Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).


78	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)

U.S. Government and Government Agency Obligations—44.7%


	Principal Amount($)		Value($)

Federal Home Loan Mortgage Corp. – 5.4%
Pool #G12317, 5.50%, 8/1/21		1,010,527		1,029,768
Pool #C00368, 8.50%, 10/1/24		25,145		27,806
Pool #D62926, 6.50%, 8/1/25		19,382		20,300
Pool #C80387, 6.50%, 4/1/26		25,425		26,630
Pool #C00922, 8.00%, 2/1/30		158,266		171,412
Pool #C54447, 7.00%, 7/1/31		32,528		34,553
Pool #G01317, 7.00%, 10/1/31		126,963		134,868
Pool #C60712, 6.50%, 11/1/31		523,373		546,203
Pool #847557, 6.27%, 7/1/34 (a)		725,693		731,227
Pool #1B2655, 6.19%, 12/1/34 (a)		573,830		578,809
Pool #1J1313, 6.40%, 6/1/36 (a)		1,325,088		1,359,223
Pool #G02981, 6.00%, 6/1/37		1,094,552		1,120,748

				5,781,547

Federal National Mortgage Association – 21.4%
Pool #398958, 6.50%, 10/1/12		45,141		46,928
Pool #781922, 5.00%, 2/1/21		2,113,781		2,127,364
Pool #329655, 7.00%, 11/1/25		37,964		40,430
Pool #329530, 7.00%, 12/1/25		80,18		85,395
Pool #535332, 8.50%, 4/1/30		36,972		40,683
Pool #548965, 8.50%, 7/1/30		43,392		47,759
Pool #535440, 8.50%, 8/1/30		40,948		45,068
Pool #253438, 8.50%, 9/1/30		34,776		38,275
Pool #568486, 7.00%, 1/1/31		38,557		41,072
Pool #573752, 8.50%, 2/1/31		29,606		32,586
Pool #575328, 6.50%, 4/1/31		48,871		50,950
Pool #356905, 7.14%, 10/1/36 (a)		158,127		160,622
Pool #922090, 5.89%, 3/1/37 (a)		1,687,062		1,726,031
Pool #256723, 6.50%, 5/1/37		1,082,672		1,121,397
TBA May
5.50%, 5/15/37		11,360,000		11,420,344
6.00%, 5/15/37		4,800,000		4,906,502
5.00%, 5/13/38		1,000,000		982,188

				22,913,594

Government National Mortgage Association – 1.3%
Pool #346406, 7.50%, 2/15/23		43,619		46,941
Pool #412530, 7.50%, 12/15/25		70,471		75,919
Pool #781300, 7.00%, 6/15/31		121,223		129,833
May, 6.00%, 5/15/37, TBA		1,080,000		1,109,363

				1,362,056

U.S. Treasury Bonds – 3.2%
6.25%, 8/15/23		1,290,000		1,552,536
5.00%, 5/15/37		1,775,000		1,923,656

				3,476,192

U.S. Treasury Notes – 13.4%
3.13%, 11/30/09		1,100,000		1,116,157
2.00%, 2/28/10		2,573,000		2,561,543
4.75%, 1/31/12		1,475,000		1,579,057
3.63%, 12/31/12		2,000,000		2,053,750
2.50%, 3/31/13		1,014,000		989,442
4.75%, 8/15/17		1,445,000		1,556,762
4.25%, 11/15/17		765,000		794,644
3.50%, 2/15/18		3,785,000		3,704,569

				14,355,924

U.S. Government and Government Agency Obligations, cont’d


	Principal Amount ($)		Value ($)

TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (COST $47,954,905)				47,889,313

Corporate Obligations—32.9%

Agricultural Chemicals – 0.6%
Cargill, Inc., 5.60%, 9/15/12 (b)		600,000		604,795

Banking – 2.0%
American Express Centurion Bank, 5.95%, 6/12/17		700,000		702,045
Washington Mutual Bank NV
2.95%, 6/16/10 (a)		750,000		674,774
3.31%, 2/4/11 (a)		400,000		353,453
Washington Mutual, Inc., 3.20%, 9/17/12 (a)		500,000		424,767

				2,155,039

Building & Construction Products – 1.0%
Martin Marietta Materials, Inc., 3.40%, 4/30/10 (a)		600,000		582,220
Masco Corp., 3.20%, 3/12/10 (a)		550,000		510,211

				1,092,431

Consumer Products – 0.9%
Clorox Co. (The), 5.45%, 10/15/12		900,000		909,151

Electric – 5.3%
Commonwealth Edison Co., 6.45%, 1/15/38		700,000		689,812
Duke Energy Carolinas LLC, 5.10%, 4/15/18		450,000		447,181
MidAmerican Energy Co., 5.95%, 7/15/17		2,900,000		3,022,452
Progress Energy, Inc., 3.47%, 11/14/08, Callable 8/14/08 @ 100 (a)		1,000,000		996,246
Puget Sound Energy, Inc., 6.97%, 6/1/67, Callable 6/1/17 @ 100		600,000		538,842

				5,694,533

Finance – 5.7%
American Honda Finance Corp., 4.63%, 4/2/13, MTN (b)		250,000		245,634
Caterpillar Financial Services Corp., 5.45%, 4/15/18, MTN		350,000		355,011
Citigroup, Inc., 6.88%, 3/5/38		450,000		465,393
Ford Motor Credit Co., LLC
9.75%, 9/15/10		1,550,000		1,505,828
7.25%, 10/25/11		150,000		135,085
MetLife Global Funding I, 5.13%, 4/10/13 (b)		350,000		349,978
Morgan Stanley, Series F, 6.00%, 4/28/15, MTN		365,000		364,444
Pacific Life Global Funding, 5.15%, 4/15/13 (b)		250,000		250,239
Preferred Term Securities Ltd., 8.79%, 9/15/30, Callable 9/15/10 @ 104.395 (b)		778,066		815,647
Wells Fargo Financial, 5.50%, 8/1/12		850,000		876,325
XTRA Finance Corp., 5.15%, 4/1/17		750,000		760,705

				6,124,289


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	79

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Corporate Obligations, continued


	Principal Amount($)		Value($)

Hospitals – 1.1%
Covidien International Finance SA, 5.45%, 10/15/12 (b)		550,000		554,508
HCA, Inc., 5.75%, 3/15/14		750,000		648,750

				1,203,258

Media – 0.8%
News America Holdings, 7.90%, 12/1/95		500,000		540,975
Vivendi, 5.75%, 4/4/13 (b)		350,000		342,094

				883,069

Medical – 1.0%
AstraZeneca plc, 5.90%, 9/15/17		1,000,000		1,058,813

Office Equipment & Services – 0.5%
Xerox Corp., 3.51%, 12/18/09 (a)		550,000		540,478

Retail – 3.2%
Home Depot, Inc., 5.88%, 12/16/36		1,300,000		1,086,812
Kohl’s Corp., 6.25%, 12/15/17		550,000		534,078
Kroger Co. (The), 5.00%, 4/15/13		250,000		251,174
Wal-Mart Stores, Inc., 6.50%, 8/15/37		1,500,000		1,591,907

				3,463,971

Telecommunications – 5.2%
AOL Time Warner, Inc.
6.88%, 5/1/12		600,000		625,051
7.70%, 5/1/32		550,000		595,717
AT&T, Inc., 5.50%, 2/1/18		750,000		749,874
BellSouth Telecommunications, 7.00%, 12/1/95		700,000		696,868
Sprint Nextel Corp., 6.00%, 12/1/16		535,000		436,025
Time Warner Entertainment Co., 8.38%, 3/15/23		800,000		902,014
Verizon Communications, Inc., 6.10%, 4/15/18		1,500,000		1,572,743

				5,578,292

Transportation – 5.6%
American Airlines, Inc., Series 2001-2,
Class A1, 6.98%, 4/1/11		525,512		517,629
American Airlines, Inc., Series 2001-2,
Class A2, 7.86%, 10/1/11		1,250,000		1,250,000
Burlington North Santa Fe
5.65%, 5/1/17		600,000		603,775
7.57%, 1/2/21		280,926		305,653
Continental Airlines, Inc., 5.98%, 4/19/22		750,000		653,437
Norfolk Southern Corp., 5.75%, 4/1/18 (b)		250,000		253,538
Union Pacific Corp.
5.75%, 11/15/17		1,200,000		1,214,893
6.85%, 1/2/19		1,104,592		1,189,391

				5,988,316

TOTAL CORPORATE OBLIGATIONS (COST $35,414,826)				35,296,435

Asset Backed Securities—9.3%


	Principal Amount($)		Value($)

Americredit Automobile Receivables
Trust, Series 2005-CF, Class A3, 4.47%, 5/6/10 (g)		123,064		123,101
Asset Backed Funding Certificates, Series 2003-AHL1, Class A1, 3.68%, 3/25/33		738,743		615,694
Cairn Mezzanine plc, Series 2007-3A, Class B1, 3.97%, 8/13/47 (a)(b)		905,000		45,250
Capital Auto Receivables Asset Trust
Series 2006-SN1A, Class A3, 5.31%, 10/20/09 (b)(g)		304,182		304,890
Series 2007-SN1, Class A3B, 2.78%, 7/15/10 (a)(g)		860,000		850,689
Countrywide Asset-Backed Certificates, Series 2006-S4, Class A3, 5.80%, 7/25/34		1,060,000		812,166
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2, 5.26%, 4/25/37 (b)		1,200,000		1,026,305
Duane Street CLO, Series 2007-4A, Class C, 4.07%, 11/14/21 (a)(b)		850,000		667,250
GE Business Loan Trust, Series 2006-2A, Class A, 2.90%, 11/15/34 (a)(b)(g)		1,422,685		1,349,761
GE Equipment Small Ticket LLC, Series 2005-2A, Class A3, 4.88%, 10/22/09 (b)(g)		725,482		724,575
GMAC Mortgage Corp., Loan Trust, Series 2006-HE3, Class A3, 5.81%, 10/25/36		900,000		419,137
MBNA Credit Card Master Note Trust, Series 2005-A7, Class A7, 4.30%, 2/15/11 (g)		930,000		931,759
Nissan Auto Receivables Owner Trust, Series 2006-B, Class A3, 5.16%, 2/15/10 (g)		1,110,750		1,117,946
Preferred Term Securities XXII Ltd., 3.14%, 9/22/36, Callable 6/22/11 @ 100 (a)(b)(g)		1,088,695		937,693

TOTAL ASSET BACKED SECURITIES (COST $12,064,272)				9,926,216


Collateralized Mortgage Obligations—5.9%

Banc of America Mortgage Securities, Series 2005-D, Class 2A4, 4.78%, 5/25/35 (a)		1,100,000		1,095,077
Deutsche Mortgage Securities, Inc., Series 2005-WF1, Class 1A1, 5.08%, 6/26/35 (a)(b)		987,156		976,037
Fannie Mae IO
Series 270, Class 2, 8.50%, 9/1/23 (c)		41,654		11,454
Series 296, Class 2, 8.00%, 4/1/24 (c)		49,508		12,603
Series 2000-16, Class PS, 5.71%, 10/25/29 (a)		28,146		1,018
Series 2000-32, Class SV, 5.87%, 3/18/30 (a)		3,616		18
Series 306, Class IO, 8.00%, 5/1/30 (c)		56,658		13,082
Series 2001-4, Class SA, 4.83%, 2/17/31 (a)		198,831		16,829
FHA Weyerhauser, 7.43%, 1/1/24 (d)(e)		26,696		26,696


80	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Collateralized Mortgage Obligations, continued


	Principal Amount($)		Value($)

Freddie Mac
Series 2988, Class AF, 3.02%, 6/15/35 (a)(g)		1,051,271		1,012,900
Series 3212, Class BK, 5.40%, 9/15/36		900,000		894,715
Freddie Mac IO
Series 1534, Class K, 4.65%, 6/15/23 (a)		132,203		14,066
Series 2141, Class SD, 5.43%, 4/15/29 (a)		108,040		15,084
Series 2247, Class SC, 4.78%, 8/15/30 (a)		54,312		4,992
Government National Mortgage
Association IO
Series 1999-30, Class SA, 5.29%, 4/16/29 (a)		68,157		4,174
Series 1999-30, Class S, 5.89%, 8/16/29 (a)		50,811		4,645
Morgan Stanley Mortgage Loan Trust, Series 2006-3AR, Class 2A3, 5.82%, 3/25/36 (a)		1,192,445		992,204
Residential Asset Securitization Trust, Series 2003-A15, Class 1A2, 3.35%, 2/25/34 (a)(g)		1,492,962		1,285,496

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $6,771,206)				6,381,090


Commercial Mortgage Backed Securities—12.3%

Banc of America Commercial
Mortgage, Inc., Series 2006-4, Class A4, 5.63%, 7/10/46		1,540,000		1,531,906
Bear Stearns Commercial Mortgage
Securities, Inc., Series 2006-T24, Class A4, 5.43%, 10/12/41		1,100,000		1,087,476
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A2, 5.38%, 10/15/49		1,100,000		1,096,487
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49		1,300,000		1,282,318
Commercial Mortgage Pass-Through Certificate Series 2006-FL12, Class A2, 2.82%, 12/15/20 (a)(b)(g)		1,508,392		1,437,272
Series 2005-LP5, Class AJ, 5.05%, 5/10/43		1,550,000		1,414,690
CWCapital Cobalt, Series 2006-C1, Class A2, 5.17%, 8/15/48		1,232,000		1,219,597
DLJ Mortgage Acceptance Corp., IO, Series 1997-CF1, Class S, 1.18%, 5/15/30 (a)(b)(e)		19,068		1
GS Mortgage Securities Corp., IO, Series 1997-GL, Class X2, 0.29%, 7/13/30 (a)(e)		36,108		493
Morgan Stanley Capital I
Series 2006-HQ10, Class A4, 5.33%, 11/12/41		1,000,000		973,657
Series 2007-IQ14, Class A2, 5.61%, 4/15/49		1,380,000		1,374,627
Series 2007-IQ14, Class AM, 5.88%, 4/15/49 (a)		990,000		913,236

Commercial Mortgage Backed Securities, continued


	Principal Amount($)		Value($)

Washington Mutual Commercial
Mortgage Securities Trust, Series 2006-SL1, Class A, 5.42%, 11/23/43 (a)(b)		973,418		873,545

TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (COST $13,589,909)				13,205,305


Foreign Bonds—3.0%


Iceland – 1.0%
Kaupthing Bank, 3.41%, 1/15/10 (a)(b)		1,250,000		1,046,872

South Korea – 1.3%
Citibank Korea, Inc., 4.68%, 6/18/13, Callable 6/18/08 @ 100 (a)		1,400,000		1,402,292

United Kingdom – 0.7%
Barclays Bank plc, 5.93%, 12/31/49 (b)		850,000		717,691


TOTAL FOREIGN BONDS (COST $3,502,358)				3,166,855


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	81

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Investment Company—11.2%


	Principal Amount($)		Value($)

Northern Institutional Diversified
Assets Portfolio, Shares class, 2.33% (f)		11,993,552		11,993,552

TOTAL INVESTMENT COMPANY (COST $11,993,551)				11,993,552

TOTAL INVESTMENTS (COST $131,291,027) — 119.3%				127,858,766



	Percentages indicated are based on net assets of $107,150,902.

(a)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.

(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.

(c)	Interest-Only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an Interest-Only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate adjusts periodically based on the pay off of the underlying mortgage.The interest rate presented represents the rates in effect on April 30, 2008. The principal amount shown is the notional amount of the underlying mortgages.

(d)	Security was fair valued as of April 30, 2008. Represents 0.02% of net assets.

(e)	Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 0.02% of total net assets.

(f)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

(g)	Security held as collateral for to be announced securities.


FHA	— Federal Housing Administration
IO	— Interest-Only security. Represents 0.09% of net assets.
LLC	— Limited Liability Co.
MTN	— Medium Term Note
PLC	— Public Limited Co.
TBA	— Security was traded on a “to be announced” basis. Represents 17.2% of net assets.


82	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stock—0.0%


	Shares or Principal Amount($)		Value($)

Consumer Discretionary – 0.0%
Tembec, Inc. (a)		937		3,629

Total Common Stock (Cost $18,548)				3,629


Corporate Obligations—95.5%

Advertising – 1.9%
Iron Mountain, Inc., 8.63%, 4/1/13, Callable 4/1/09 @ 100		100,000		101,750
Lamar Media Corp., 6.63%, 8/15/15, Callable 8/15/10 @ 103.31		50,000		47,125
R.H. Donnelley Corp., 6.88%, 1/15/13, Callable 1/15/09 @ 103.44		100,000		64,000
R.H. Donnelley Corp., 6.88%, 1/15/13, Callable 1/15/09 @ 103.44		90,000		57,600

				270,475

Aerospace & Defense – 2.1%
DAE Aviation Holdings, Inc., 11.25%, 8/1/15, Callable 8/1/11 @ 105.62 (b)		50,000		50,813
DRS Technologies, Inc., 7.63%, 2/1/18, Callable 2/1/11 @ 103.81		100,000		102,000
L-3 Communications Holdings, Inc., 5.88%, 1/15/15, Callable 1/15/10 @ 102.94		100,000		97,000
TransDigm Group, Inc., 7.75%, 7/15/14, Callable 7/15/09 @ 105.81		50,000		51,125

				300,938

Apparel Manufacturers – 1.6%
Hanesbrands, Inc., 8.20%, 12/15/14, Callable 12/15/08 @ 102.00 (c)		50,000		47,125
Levi Strauss & Co., 8.88%, 4/1/16, Callable 4/1/11 @ 104.44		50,000		50,875
Quiksilver, Inc., 6.88%, 4/15/15, Callable 4/15/10 @ 103.44		150,000		124,500

				222,500

Auto Manufacturers – 2.4%
Cooper Tire & Rubber Co., 8.00%, 12/15/19		50,000		47,625
Cooper-Standard Automotive, Inc., 8.38%, 12/15/14, Callable 12/15/09 @ 104.19		50,000		41,250
General Motors Corp., 7.13%, 7/15/13		175,000		142,625
General Motors Corp., 7.70%, 4/15/16		50,000		39,000
The Goodyear Tire & Rubber Co., 8.63%, 12/1/11, Callable 12/1/09 @ 104.31		17,000		18,275
TRW Automotive, Inc., 7.25%, 3/15/17 (b)		50,000		48,687

				337,462

Automotive & Transport – 0.7%
AutoNation, Inc., 7.00%, 4/15/14, Callable 4/15/09 @ 105.25		50,000		46,875
Penske Automotive Group, Inc., 7.75%, 12/15/16, Callable 12/15/11 @ 103.88		50,000		45,500

				92,375

Building & Construction Products – 1.5%
Interline Brands, Inc., 8.13%, 6/15/14, Callable 6/15/10 @ 104.06		50,000		48,625
Ply Gem Industries, Inc., 9.00%, 2/15/12, Callable 2/15/08 @ 102.25		150,000		114,750


Corporate Obligations, continued


	Principal Amount($)		Value($)

Building & Construction Products, continued
U.S. Concrete, Inc., 8.38%, 4/1/14, Callable 4/1/09 @ 104.19		50,000		40,500

				203,875

Cable Television – 3.4%
Barrington Broadcasting Group LLC, 10.50%, 8/15/14, Callable 8/15/10 @ 105.25		50,000		44,000
Bonten Media Acquisition, 9.00%, 6/1/15, Callable 6/1/11 @ 104.50 (b)		75,000		60,937
Cablevision Systems Corp., 8.00%, 4/15/12		100,000		99,500
Charter Communications Operating LLC, 10.88%, 9/15/14, Callable 3/15/12 @ 105.44 (b)		50,000		52,875
General Cable Technologies Corp., 7.13%, 4/1/17, Callable 4/1/12 @ 103.56		50,000		48,750
Mediacom LLC, 7.88%, 2/15/11		100,000		94,500
Quebecor Media, Inc., 7.75%, 3/15/16, Callable 3/15/11 @ 103.88		25,000		24,063
Videotron Ltd., 9.13%, 4/15/18, Callable 4/15/13 @ 104.56 (b)		50,000		53,250

				477,875

Casinos & Gambling – 8.5%
Choctaw Resort Development Entertainment, 7.25%, 11/15/19, Callable 11/15/11 @ 103.63 (b)		46,000		40,480
Fontainebleau Las Vegas, 10.25%, 6/15/15, Callable 6/15/11 @ 105.13 (b)		100,000		71,750
Great Canadian Gaming Co., 7.25%, 2/15/15, Callable 2/15/11 @ 103.63 (b)		50,000		48,000
Greektown Holdings, Inc., 10.75%, 12/1/13, Callable 12/1/10 @ 105.38 (b)		125,000		115,000
Herbst Gaming, Inc., 7.00%, 11/15/14, Callable 11/15/09 @ 103.50		50,000		11,000
Indianapolis Downs LLC, 11.00%, 11/1/12, Callable 11/1/10 @ 105.50 (b)		25,000		22,500
Inn of the Mountain Gods, 12.00%, 11/15/10, Callable 11/15/08 @ 103.00		50,000		43,250
Isle of Capri Casinos, Inc., 7.00%, 3/1/14, Callable 3/1/09 @ 103.50		150,000		115,500
Mashantucket Pequot Tribal Nation, Series A, 8.50%, 11/15/15, Callable 11/15/11 @ 104.25 (b)		50,000		45,438
MGM MIRAGE, Inc., 6.75%, 4/1/13		100,000		92,000
Mohegan Tribal Gaming, 7.13%, 8/15/14, Callable 8/15/09 @ 103.56		50,000		42,875
MTR Gaming Group, Inc., 9.00%, 6/1/12, Callable 6/1/09 @ 104.50		100,000		79,500
Pinnacle Entertainment, 7.50%, 6/15/15, Callable 6/15/11 @ 103.75 (b)		50,000		41,375
Pokagon Gaming Authority, 10.38%, 6/15/14, Callable 6/15/10 @ 105.19 (b)		69,000		73,657
San Pasqual Casino, 8.00%, 9/15/13, Callable 9/15/09 @ 104.00 (b)		25,000		23,313
Scientific Games Corp., 6.25%, 12/15/12, Callable 12/15/08 @ 103.13		50,000		46,250


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	83

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Corporate Obligations, continued


	Principal Amount($)		Value($)

Casinos & Gambling, continued
Seminole Hard Rock Entertainment, 5.30%, 3/15/14, Callable 3/15/09 @ 102.00 (b)(c)		50,000		41,875
Seneca Gaming Corp., 7.25%, 5/1/12, Callable 5/1/08 @ 103.63		50,000		48,312
Shingle Springs, 9.38%, 6/15/15, Callable 6/15/11 @ 104.69 (b)		50,000		44,250
Turning Stone Resort Casino, 9.13%, 9/15/14, Callable 9/15/10 @ 104.56 (b)		75,000		73,875
Waterford Gaming LLC, 8.63%, 9/15/14 (b)		23,000		22,195
Wynn Las Vegas LLC, 6.63%, 12/1/14, Callable 12/1/09 @ 103.31 (b)		50,000		48,750

				1,191,145

Chemicals – 3.2%
Georgia Gulf Corp., 9.50%, 10/15/14, Callable 10/15/10 @ 104.75		100,000		84,500
Huntsman International LLC, 7.88%, 11/15/14, Callable 11/15/10 @ 103.94		35,000		36,925
Innophos, Inc., 8.88%, 8/15/14, Callable 8/16/09 @ 104.44		50,000		49,750
JohnsonDiversey, Inc., 9.63%, 5/15/12, Callable 5/15/08 @ 103.21		100,000		101,000
Momentive Performance Materials, Inc., 9.75%, 12/1/14, Callable 12/1/10 @ 104.88		50,000		48,500
Mosaic Co., 7.88%, 12/1/16, Callable 12/1/11 @ 103.81 (b)		25,000		27,375
Nova Chemicals Corp., 6.50%, 1/15/12		50,000		47,000
Terra Capital, Inc., 7.00%, 2/1/17, Callable 2/1/12 @ 103.50		50,000		49,750

				444,800

Computer Services – 0.6%
Activant Solutions, Inc., 9.50%, 5/1/16, Callable 5/1/11 @ 104.75		50,000		42,000
Unisys Corp., 12.50%, 1/15/16, Callable 1/15/12 @ 106.25		35,000		36,400

				78,400

Consumer Products – 1.7%
Constellation Brands, Inc., 8.38%, 12/15/14		50,000		53,000
Sealy Mattress Co., 8.25%, 6/15/14, Callable 6/15/09 @ 104.13		50,000		44,125
Smithfield Foods, Inc., 7.75%, 7/1/17		50,000		49,625
Spectrum Brands, Inc., 7.38%, 2/1/15, Callable 2/1/10 @ 103.69		75,000		49,875
Yankee Acquisition Corp., 9.75%, 2/15/17, Callable 2/15/12 @ 104.88		50,000		40,125

				236,750


Corporate Obligations, continued


	Principal Amount($)		Value($)

Containers - Paper and Plastic – 2.5%
Owens-Brockway Glass Containers, 6.75%, 12/1/14, Callable 12/1/09 @ 103.38		50,000		50,750
Solo Cup Co., 8.50%, 2/15/14, Callable 2/15/09 @ 104.25		200,000		174,000
Stone Container Finance Co. of Canada, 7.38%, 7/15/14, Callable 7/15/09 @ 103.69		150,000		126,000

				350,750

Cosmetics – 0.4%
Chattem, Inc., 7.00%, 3/1/14, Callable 3/1/09 @ 103.50		50,000		49,750

				49,750

Distribution & Wholesale – 1.9%
Baker & Taylor, Inc., 11.50%, 7/1/13, Callable 7/1/10 @ 105.75 (b)		100,000		90,000
Beverages & More, Inc., 9.25%, 3/1/12, Callable 9/1/09 @ 104.63 (b)		50,000		48,500
Central Garden & Pet Co., 9.13%, 2/1/13, Callable 2/1/09 @ 103.04		50,000		42,250
Jarden Corp., 7.50%, 5/1/17, Callable 5/1/12 @ 103.75		25,000		23,000
Pegasus Solutions, Inc., 10.50%, 4/15/15, Callable 4/15/11 @ 105.25 (b)		50,000		40,000
Pilgrim’s Pride Corp., 8.38%, 5/1/17, Callable 5/1/12 @ 104.19		25,000		22,250

				266,000

Diversified Operations – 1.7%
Bombardier, Inc., 8.00%, 11/15/14, Callable 11/15/10 @ 104.00 (b)		25,000		26,625
Koppers Holdings, Inc., 9.88%, 11/15/14, Callable 11/15/09 @ 104.94		25,000		21,875
Snoqualmie Entertainment Authority, 6.94%, 2/1/14, Callable 2/1/09 @ 103.00 (b)(c)		25,000		19,625
Susser Holdings LLC, 10.63%, 12/15/13, Callable 12/15/09 @ 105.31		72,000		73,800
Susser Holdings LLC, 10.63%, 12/15/13, Callable 12/15/09 @ 105.31 (b)		50,000		51,250
Trinity Industries, Inc., 6.50%, 3/15/14, Callable 3/15/09 @ 103.25		50,000		49,625

				242,800

Education – 0.3%
Education Management LLC, 10.25%, 6/1/16, Callable 6/1/11 @ 105.13		25,000		21,000
Education Management LLC, 8.75%, 6/1/14, Callable 6/1/10 @ 104.38		25,000		22,250

				43,250

Electric – 3.9%
AES Corp., 7.75%, 3/1/14		60,000		61,500
AES Corp., 7.75%, 10/15/15		50,000		51,625
Baldor Electic Co., 8.63%, 2/15/17, Callable 2/15/12 @ 104.31		50,000		51,000
CMS Energy Corp., 6.88%, 12/15/15		100,000		100,660
Edison Mission Energy, 7.00%, 5/15/17		25,000		25,250


84	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Corporate Obligations, continued


	Principal Amount($)		Value($)

Electric, continued
Edison Mission Energy, 7.20%, 5/15/19		50,000		50,375
Energy Future Holdings, 10.88%, 11/1/17, Callable 11/1/12 @ 105.44 (b)		200,000		213,000

				553,410

Electronic Components & Semiconductors – 0.3%
Freescale Semiconductor, Inc., 10.13%, 12/15/16, Callable 12/15/11 @ 105.06		50,000		39,375


Energy – 3.7%
Aventine Renewable Energy, Inc., 10.00%, 4/1/17, Callable 4/1/12 @ 105.00		50,000		31,250
Copano Energy LLC, 8.13%, 3/1/16, Callable 3/1/11 @ 104.06		80,000		83,200
Massey Energy Co., 6.88%, 12/15/13, Callable 12/15/09 @ 103.44		100,000		100,000
Mirant North America LLC, 7.38%, 12/31/13, Callable 12/31/09 @ 103.69		50,000		51,875
NRG Energy, Inc., 7.38%, 2/1/16, Callable 2/1/11 @ 103.69		50,000		51,500
Reliant Energy, Inc., 7.63%, 6/15/14		50,000		52,000
Verasun Energy Corp., 9.88%, 12/15/12, Callable 12/15/09 @ 104.94		50,000		45,875
Williams Cos., Inc., 6.38%, 10/1/10 (b)		100,000		103,500

				519,200

Finance – 5.7%
Basell AF SCA, 8.38%, 8/15/15, Callable 8/15/10 @ 104.19 (b)		75,000		54,375
CCM Merger, Inc., 8.00%, 8/1/13, Callable 8/1/09 @ 104.00 (b)		100,000		86,000
Ford Motor Credit Co., 7.38%, 10/28/09		250,000		240,657
Ford Motor Credit Co., 7.38%, 2/1/11		50,000		45,973
General Motors Acceptance Corp., 6.88%, 8/28/12		300,000		238,002
MSX International, 12.50%, 4/1/12, Callable 4/1/09 @ 110.00 (b)		25,000		20,000
Nalco Finance Holdings, Inc., 11.52%, 2/1/14, Callable 2/1/09 @ 104.50*		75,000		71,625
Nuveen Investments, Inc., 10.50%, 11/15/15, Callable 11/15/11 @ 105.25 (b)		50,000		48,125

				804,757

Funeral Services – 0.4%
Carriage Services, Inc., 7.88%, 1/15/15, Callable 1/15/10 @ 103.94		50,000		49,750

Hotels & Lodging – 0.3%
Gaylord Entertainment Co., 8.00%, 11/15/13, Callable 11/15/08 @ 104.00		50,000		47,375

Internet Related – 0.3%
Atlantic Broadband Finance LLC, 9.38%, 1/15/14, Callable 1/15/09 @104.69		50,000		46,000


Corporate Obligations, continued


	Principal Amount($)		Value($)

Leisure – 1.0%
AMC Entertainment, Inc., 11.00%, 2/1/16, Callable 2/1/11@ 105.50		100,000		99,500
True Temper Sports, Inc., 8.38%, 9/15/11, Callable 3/15/09 @ 102.09		50,000		34,000

				133,500

Machinery – 0.9%
Case New Holland, Inc., 7.13%, 3/1/14, Callable 3/1/10 @ 103.56		50,000		50,250
Sensata Technologies, 8.00%, 5/1/14, Callable 5/1/10 @ 104.00		50,000		46,625
Terex Corp., 8.00%, 11/15/17, Callable 11/15/12 @ 104.00		25,000		25,563

				122,438

Manufacturing – 1.0%
AGY Holding Corp., 11.00%, 11/15/14, Callable 11/15/10 @ 105.50 (b)		50,000		45,250
American Railcar Industries, 7.50%, 3/1/14, Callable 3/1/11 @ 103.75		25,000		22,500
Coleman Cable, Inc., 9.88%, 10/1/12, Callable 10/1/08 @ 104.94		50,000		45,750
Libbey Glass, Inc., 11.91%, 6/1/11, Callable 6/1/08 @ 107.50 (c)		25,000		25,063
Maax Corp., 9.75%, 6/15/12, Callable 6/15/08 @ 104.88		50,000		7,500

				146,063

Medical – 2.4%
Advanced Medical Optics, 7.50%, 5/1/17, Callable 5/1/12 @ 103.75		50,000		45,250
Community Health Systems, Inc., 8.88%, 7/15/15, Callable 7/15/11 @ 104.44		50,000		52,000
HCA, Inc., 9.25%, 11/15/16, Callable 11/15/11 @ 104.63		25,000		26,875
MultiPlan, Inc., 10.38%, 4/15/16, Callable 4/15/11 @ 105.19 (b)		100,000		97,000
Omnicare, Inc., 6.75%, 12/15/13, Callable 12/15/09 @ 103.38		100,000		93,000
ReAble Therapeutics Finance LLC, 10.88%, 11/15/14, Callable 11/15/11 @ 105.44 (b)		25,000		25,125

				339,250

Metal Processors & Fabrication – 0.5%
TriMas Corp., 9.88%, 6/15/12, Callable 6/15/08 @ 103.292		77,000		67,183

Metals & Mining – 3.1%
AK Steel Corp., 7.75%, 6/15/12, Callable 6/15/08 @ 102.58		100,000		102,125
Aleris International, Inc., 10.00%, 12/15/16, Callable 12/15/11 @ 105.00		25,000		15,500
Freeport-McMoran Copper & Gold, Inc., 8.25%, 4/1/15, Callable 4/1/11 @ 104.13		50,000		54,312
Gibraltar Industries, Inc., 8.00%, 12/1/15, Callable 12/1/10 @ 104.00		150,000		122,250
International Coal Group, Inc., 10.25%, 7/15/14, Callable 7/15/10 @ 105.13		50,000		50,500


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	85

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Corporate Obligations, continued


	Principal Amount($)		Value($)


Metals & Mining, continued
Noranda Aluminium Acquisition, 8.74%, 5/15/15, Callable 5/15/08 @ 102.00 (b)(c)		50,000		42,250
Tube City IMS Corp., 9.75%, 2/1/15, Callable 2/1/11 @ 104.88		50,000		47,750

				434,687


Oil & Gas – 8.7%
Chaparral Energy, Inc., 8.50%, 12/1/15, Callable 12/1/10 @ 104.25		100,000		91,000
Chesapeake Energy Corp., 6.88%, 1/15/16, Callable 1/15/09 @ 103.44		100,000		101,000
Cimarex Energy Co., 7.13%, 5/1/17, Callable 5/1/12 @ 103.56		100,000		101,500
Clayton Williams Energy, Inc., 7.75%,8/1/13, Callable 8/1/09 @ 103.88		100,000		93,500
Colorado Interstate Gas Co., 6.80%, 11/15/15		150,000		157,541
Compton Petroleum Finance Corp., 7.63%, 12/1/13, Callable 12/1/09 @ 103.81		100,000		98,750
Energy Partners Ltd., 9.75%, 4/15/14, Callable 4/15/11 @ 104.88		50,000		46,250
Forest Oil Corp., 7.25%, 6/15/19, Callable 6/15/12 @ 103.63		50,000		51,625
Inergy LP/Inergy Finance, 8.25%, 3/1/16, Callable 3/1/11 @ 104.13		100,000		102,500
National Oilwell Varco, Inc., Series B, 6.13%, 8/15/15, Callable 8/15/10 @ 103.06		25,000		25,600
Newfield Exploration Co., 6.63%, 9/1/14, Callable 9/1/09 @ 103.31		100,000		99,250
Opti Canada, Inc., 7.88%, 12/15/14, Callable 12/15/10 @ 104.13		50,000		50,875
Plains Exploration & Production Co., 7.75%, 6/15/15, Callable 6/15/11 @ 103.88		50,000		51,250
Swift Energy Co., 7.63%, 7/15/11, Callable 7/15/08 @ 103.81		50,000		50,625
Tesoro Corp., 6.50%, 6/1/17, Callable 6/1/12 @ 103.25		50,000		45,875
Tesoro Corp., 6.63%, 11/1/15, Callable 11/1/10 @ 103.31		50,000		47,000

				1,214,141


Paper & Related Products – 2.5%
Catalyst Paper Corp., Series D, 8.63%, 6/15/11, Callable 6/15/08 @ 101.44		50,000		42,875
Exopack Holding Corp., 11.25%, 2/1/14, Callable 2/1/10 @ 105.62		50,000		47,750
Georgia-Pacific Corp., 7.70%, 6/15/15		100,000		100,000
NewPage Corp., 10.00%, 5/1/12, Callable 5/1/09 @ 106.00 (b)		25,000		26,687
Norampac, Inc., 6.75%, 6/1/13, Callable 6/1/08 @ 103.38		100,000		86,750
Verso Paper Holdings LLC, Series B, 9.13%, 8/1/14, Callable 8/1/10 @ 104.56		50,000		51,625

				355,687


Corporate Obligations, continued


	Principal Amount($)		Value($)


Pipelines – 3.2%
Atlas Pipeline Partners LP, 8.13%, 12/15/15, Callable 12/15/10 @ 104.06		50,000		51,875
Dynegy Holdings, Inc., 8.38%, 5/1/16		150,000		156,375
El Paso Corp., 7.00%, 6/15/17		100,000		104,358
Mueller Water Products, Inc., 7.38%, 6/1/17, Callable 6/1/12 @ 103.69		50,000		43,500
Semgroup LP, 8.75%, 11/15/15, Callable 11/15/10 @ 104.38 (b)		50,000		47,375
Williams Partners LP, 7.25%, 2/1/17		50,000		51,625

				455,108


Printing & Publishing – 2.6%
Block Communications, Inc., 8.25%, 12/15/15, Callable 12/15/10 @ 104.13 (b)		50,000		47,875
Canwest Mediaworks LP, 9.25%, 8/1/15, Callable 8/1/11 @ 104.63 (b)		50,000		45,625
Idearc, Inc., 8.00%, 11/15/16, Callable 11/15/11 @ 104.00		50,000		32,500
Medimedia USA, Inc., 11.38%, 11/15/14, Callable 11/15/09 @ 105.69 (b)		50,000		51,000
Morris Publishing, 7.00%, 8/1/13, Callable 8/1/08 @ 103.50		100,000		61,500
Sheridan Group, Inc., 10.25%, 8/15/11, Callable 8/15/08 @ 102.56		100,000		92,250
Valassis Communications, Inc., 8.25%, 3/1/15, Callable 3/1/11 @ 104.13		35,000		31,150

				361,900


Rental - Auto and Equipment – 2.2%
Avis Budget Car Rental, Inc., 7.63%, 5/15/14, Callable 5/15/10 @ 103.81		100,000		91,375
H&E Equipment Services, Inc., 8.38%, 7/15/16, Callable 7/15/11 @ 104.19		50,000		43,500
Hertz Corp., 8.88%, 1/1/14, Callable 1/1/10 @104.44		100,000		100,750
RSC Equipment Rental, Inc., 9.50%, 12/1/14, Callable 12/1/10 @ 104.75		50,000		44,750
United Rentals, Inc., 6.50%, 2/15/12, Callable 5/22/08 @ 103.25		25,000		23,437

				303,812


Restaurants – 2.1%
Buffets, Inc., 12.50%, 11/1/14, Callable 11/1/10 @ 106.25 (d)		50,000		1,250
Dave & Buster’s, Inc., 11.25%, 3/15/14, Callable 3/15/10 @ 105.62		50,000		49,750
Landry’s Restaurants, Inc., 9.50%, 12/15/14, Callable 2/28/09 @ 101.00 (c)		100,000		97,125
NPC International, Inc., 9.50%, 5/1/14, Callable 5/1/10 @ 104.75		50,000		46,000
Outback Steakhouse, Inc., 10.00%, 6/15/15, Callable 6/15/11 @ 105.00 (b)		75,000		56,625
Sbarro, Inc., 10.38%, 2/1/15, Callable 2/1/10 @ 107.78		50,000		45,000

				295,750


86	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Corporate Obligations, continued


	Principal Amount($)		Value($)


Retail – 1.2%
Claire’s Stores, Inc., 9.63%, 6/1/15, Callable 6/1/11 @ 104.81		50,000		30,000
Pep Boys, 7.50%, 12/15/14, Callable 12/15/09 @ 103.75		50,000		43,500
Stater Bros. Holdings, Inc., 7.75%, 4/15/15, Callable 4/15/11 @ 103.88		50,000		50,125
Suburban Propane Partners LP, 6.88%, 12/15/13, Callable 12/15/08 @ 103.44		50,000		49,250

				172,875


Seismic Data Collection – 0.4%
CIE Gener de Geophysique, 7.50%, 5/15/15, Callable 5/15/10 @ 103.75		50,000		51,625


Special Purpose Entity – 4.1%
Altra Industrial Motion, Inc., 9.00%, 12/1/11, Callable 12/1/08 @ 104.50		50,000		49,500
Buffalo Thunder Development Authority, 9.38%, 12/15/14, Callable 12/15/10 @ 104.69 (b)		50,000		34,000
Cellu Tissue Holdings, Inc., 9.75%, 3/15/10, Callable 5/27/08 @ 103.66		50,000		47,750
Chukchansi Economic Development Authority, 8.00%, 11/15/13, Callable 11/15/09 @ 104.00 (b)		25,000		22,250
Hawker Beechcraft Acquisition Co., 8.50%, 4/1/15, Callable 4/1/11 @ 104.25		50,000		52,750
Hawker Beechcraft Acquisition Co., 9.75%, 4/1/17, Callable 4/1/12 @ 104.88		25,000		26,375
KAR Holdings, Inc., 8.75%, 5/1/14, Callable 5/1/10 @ 104.38		50,000		48,000
Local TV Finance LLC, 9.25%, 6/15/15, Callable 6/15/11 @ 104.63 (b)		50,000		40,000
MCBC Holdings, Inc., 9.09%, 10/15/14, Callable 10/15/09 @ 103.00 (b)(c)		25,000		21,250
Petroplus Finance Ltd., 7.00%, 5/1/17, Callable 5/1/12 @ 103.50 (b)		75,000		69,750
Rare Restaurant Group LLC, 9.25%, 5/15/14, Callable 5/15/11 @ 104.63 (b)		50,000		43,000
Regency Energy Partners LP, 8.38%, 12/15/13, Callable 12/15/10 @ 104.19		17,000		17,722
Southern Star Central Corp., Inc., 6.75%, 3/1/16, Callable 3/1/11 @ 103.38		50,000		48,125
UCI Holdco, Inc., 10.30%, 12/15/13, Callable 12/15/08 @ 103 (c)		58,183		52,947

				573,419


Steel – 0.4%
Ryerson, Inc., 12.00%, 11/1/15, Callable 11/1/11 @ 106.00 (b)		50,000		49,500


Telecommunications – 7.6%
Broadview Networks Holdings, Inc., 11.38%, 9/1/12, Callable 9/1/09 @ 105.69		25,000		23,875
Centennial Communications Corp., 10.00%, 1/1/13, Callable 1/1/09 @ 107.50		100,000		101,000


Corporate Obligations, continued


	Principal Amount($)		Value($)


Telecommunications, continued
Cincinnati Bell, Inc., 8.38%, 1/15/14, Callable 1/15/09 @ 104.19		85,000		84,575
Citizens Communications Co., 7.13%, 3/15/19		25,000		23,125
Cricket Communications, 9.38%, 11/1/14, Callable 11/1/10 @ 104.69		50,000		49,062
iPCS, Inc., 6.49%, 5/1/14, Callable 5/1/08 @ 102.00 (c)		100,000		81,000
Level 3 Financing, Inc., 9.25%, 11/1/14, Callable 11/1/10 @ 104.63		50,000		45,500
MetroPCS Wireless, Inc., 9.25%, 11/1/14, Callable 11/1/10 @ 104.63		100,000		98,250
Nordic Telephone Co., Holdings, 8.88%, 5/1/16, Callable 5/1/11 @ 104.44 (b)		50,000		51,125
NTL Cable PLC, 9.13%, 8/15/16, Callable 8/15/11 @ 104.56		125,000		120,625
PAETEC Holding Corp., 9.50%, 7/15/15, Callable 7/15/11 @ 104.75		50,000		47,000
Panamsat Corp., 9.00%, 6/15/16, Callable 6/15/11 @ 104.50		50,000		50,437
Qwest Corp., 7.63%, 6/15/15		100,000		100,250
Radio One, Inc., 6.38%, 2/15/13, Callable 2/15/09 @ 103.19		50,000		37,875
West Corp., 11.00%, 10/15/16, Callable 10/15/11 @ 105.50		25,000		22,219
Wind Acquisition Financial SA, 10.75%, 12/1/15, Callable 12/1/10 @ 105.38 (b)		100,000		107,750
Windstream Corp., 8.63%, 8/1/16, Callable 8/1/11 @ 104.31		25,000		26,188

				1,069,856


Tobacco – 0.2%
Alliance One International, Inc., 8.50%, 5/15/12		25,000		23,750


Transportation – 1.0%
Bristow Group, Inc., 7.50%, 9/15/17, Callable 9/15/12 @ 103.75		50,000		51,625
Greenbrier Cos., Inc., 8.38%, 5/15/15, Callable 5/15/10 @ 104.19		50,000		47,750
Navios Maritime Holdings, Inc., 9.50%, 12/15/14, Callable 12/15/10 @ 104.75		30,000		30,900
Saint Acquisition Corp., 10.82%, 5/15/15, Callable 5/15/09 @ 102.00 (b)(c)		50,000		16,500

				146,775


Waste Disposal – 1.4%
Allied Waste North America, Inc., 7.38%, 4/15/14, Callable 4/15/09 @ 103.69		100,000		100,750
Waste Services, Inc., 9.50%, 4/15/14, Callable 4/15/09 @ 104.75		50,000		49,000
WCA Waste Corp., 9.25%, 6/15/14, Callable 6/15/10 @ 104.63		50,000		50,500

				200,250

TOTAL CORPORATE OBLIGATIONS (COST $14,318,541)				13,386,581


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	87

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Investment Company—2.0%


	Principal Amount($)		Value($)


Northern Institutional Diversified Assets Portfolio, Shares class, 2.33% (c)		278,127		278,127

TOTAL INVESTMENT COMPANY (COST $278,128)				278,127

TOTAL INVESTMENTS (COST $14,615,217) — 97.5%				13,668,337



	Percentages indicated are based on net assets of $14,021,668.

*	Represents yield at time of purchase.

(a)	Represents non-income producing security.

(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.

(c)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

(d)	Non-Income Producing; Defaulted Bond.

LLC — Limited Liability Co.
LP — Limited Partnership
PLC — Public Limited Co.


88	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)

U.S. Government and Government Agency Obligations—46.3%


	Principal Amount($)		Value($)

Federal Home Loan Mortgage Corp. – 5.9%
Pool #1B2655, 6.19%, 12/1/34 (a)(d)		106,265		107,187
Pool #1J1313, 6.40%, 6/1/36 (a)		246,528		252,879
Pool #847557, 6.27%, 7/1/34 (a)(d)		115,465		116,346
Pool #G02981, 6.00%, 6/1/37		176,541		180,766
Pool #G12317, 5.50%, 8/1/21		164,679		167,814

				824,992

Federal National Mortgage Association – 25.6%
6.50%, 5/1/35		550,000		569,078
Pool #781922, 5.00%, 2/1/21		342,578		344,780
Pool #922090, 5.89%, 3/1/37 (a)		270,217		276,459
TBA May
5.50%, 5/15/37		1,600,000		1,608,499
6.00%, 5/15/37		750,000		766,641

				3,565,457

Government National Mortgage Association – 1.1%
6.00%, 5/15/37		150,000		154,078
U.S. Treasury Bonds – 1.5%
6.25%, 8/15/23		170,000		204,598
U.S. Treasury Notes – 12.2%
4.75%, 2/15/10		340,000		355,220
4.75%, 1/31/12		190,000		203,404
2.88%, 1/31/13		582,000		578,226
2.75%, 2/28/13		250,000		246,797
4.00%, 2/15/15		150,000		156,070
3.50%, 2/15/18		175,000		171,281

				1,710,998

TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (COST $6,491,826)				6,460,123

Corporate Obligations—32.1%

Banking – 1.5%
American Express Centurion Bank, 5.95%, 6/12/17		100,000		100,292
Washington Mutual, Inc., 3.20%, 9/17/12 (a)		75,000		63,715
Washington Mutual Bank NV, 3.31%, 2/4/11 (a)		50,000		44,182

				208,189

Building & Construction Products – 1.4%
Martin Marietta Materials, Inc., 3.40%, 4/30/10 (a)		100,000		97,037
Masco Corp., 3.20%, 3/12/10 (a)		100,000		92,765

				189,802

Electric – 6.5%
Duke Energy Carolinas LLC, 5.10%, 4/15/18		100,000		99,374
MidAmerican Energy Co., 5.95%, 7/15/17		450,000		469,001
Puget Sound Energy, Inc., 6.97%, 6/1/67, Callable 6/1/17 @ 100		100,000		89,807

Progress Energy, Inc., 3.47%, 11/14/08, Callable 8/14/08 @ 100 (a)		250,000		249,061

				907,243

Corporate Obligations, continued


	Principal Amount($)		Value($)

Finance – 5.0%
Caterpillar Financial Services Corp., 5.45%, 4/15/18, MTN		50,000		50,716
Ford Motor Credit Co., LLC 9.75%, 9/15/10		300,000		291,450
7.25%, 10/25/11		25,000		22,514
Morgan Stanley, Series F, 6.00%, 4/28/15, MTN		50,000		49,924
Pacific Life Global Funding, 5.15%, 4/15/13 (b)		125,000		125,120
XTRA Finance Corp., 5.15%, 4/1/17		150,000		152,141

				691,865

Hospitals – 0.6%
HCA, Inc., 5.75%, 3/15/14		100,000		86,500

Media – 4.2%
Time Warner Cable, Inc., 5.40%, 7/2/12		150,000		150,875
Time Warner Entertainment, 8.88%, 10/1/12		350,000		387,849
Vivendi, 5.75%, 4/4/13 (b)		50,000		48,871

				587,595

Medical – 1.1%
AstraZeneca plc, 5.90%, 9/15/17		150,000		158,822

Office Equipment & Services – 0.7%
Xerox Corp., 3.51%, 12/18/09 (a)		100,000		98,269

Retail – 1.1%
Kroger Co. (The), 5.00%, 4/15/13		25,000		25,118
Federated Retail Holdings, Inc., 5.90%, 12/1/16		150,000		131,475

				156,593

Telecommunications – 2.4%
Verizon Pennsylvania, Inc., 5.65%, 11/15/11		275,000		279,468
Sprint Nextel Corp., 6.00%, 12/1/16		60,000		48,900

				328,368

Transportation – 7.6%
American Airlines, Inc., Series 2001-2
Class A1, 6.98%, 4/1/11		77,281		76,122
Class A2, 7.86%, 10/1/11		200,000		200,000
Burlington Northern Santa Fe Railway Co., 4.83%, 1/15/23		230,919		215,182
Continental Airlines, Inc., 5.98%, 4/19/22		100,000		87,125
Norfolk Southern Corp., 5.75%, 4/1/18 (b)		50,000		50,707
Union Pacific Corp., 5.75%, 11/15/17		150,000		151,862
Union Pacific Railroad, 5.08%, 1/2/29		298,680		281,804

				1,062,802

TOTAL CORPORATE OBLIGATIONS (COST $4,541,973)				4,476,048


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	89

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Asset Backed Securities—9.1%


	Principal Amount($)		Value($)

Americredit Automobile Receivables Trust, Series 2005-CF, Class A3, 4.47%, 5/6/10 (d)		22,375		22,382
Asset Backed Funding Certificates, Series 2003-AHL1, Class A1, 3.68%, 3/25/33		210,318		175,286
Cairn Mezzanine plc, Series 2007-3A, Class B1, 3.97%, 8/13/47 (a)(b)		145,000		7,250
Capital Auto Receivables Asset Trust Series 2006-SN1A, Class A3, 5.31%, 10/20/09 (b)(d)		44,733		44,837
Series 2007-SN1, Class A3B, 2.78%, 7/15/10 (a)(d)		110,000		108,809
Countrywide Asset-Backed Certificates, Series 2006-S4, Class A3, 5.80%, 7/25/34		210,000		160,901
GE Business Loan Trust, Series 2006-2A, Class A, 2.90%, 11/15/34 (a)(b)(d)		243,354		230,880
GMAC Mortgage Corp., Loan Trust, Series 2006-HE3, Class A3, 5.81%, 10/25/36		170,000		79,170
MBNA Credit Card Master Note Trust, Series 2005-A7, Class A7, 4.30%, 2/15/11 (d)		120,000		120,227
Nissan Auto Receivables Owner Trust, Series 2006-B, Class A3, 5.16%, 2/15/10 (d)		144,880		145,819
Preferred Term Securities XXII Ltd., 3.14%, 9/22/36, Callable 6/22/11 @ 100 (a)(b)(d)		197,945		170,490

TOTAL ASSET BACKED SECURITIES (COST $1,609,865)				1,266,051

Collateralized Mortgage Obligations—7.6%

Banc of America Mortgage Securities, Series 2005-D, Class 2A4, 4.78%, 5/25/35 (a)		200,000		199,105
Deutsche Mortgage Securities, Inc., Series 2006-WF1, Class 1A1, 5.08%, 6/26/35 (a)(b)		150,219		148,527
Freddie Mac Series 2988, Class AF, 3.02%, 6/15/35 (a)		157,691		151,935
Series 3212, Class BK, 5.40%, 9/15/36		150,000		149,119
Morgan Stanley Mortgage Loan Trust, Series 2006-3AR, Class 2A3, 5.82%, 3/25/36 (a)		255,524		212,615
Residential Asset Securitization Trust, Series 2003-A15, Class 1A2, 3.35%, 2/25/34 (a)(d)		242,102		208,459

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $1,149,543)				1,069,760

Commercial Mortgage Backed Securities—12.1%

Banc of America Commercial Mortgage, Inc., Series 2006-4, Class A4, 5.54%, 7/10/46		230,000		228,791
Bear Stearns Commercial Mortgage Securities, Inc., Series 2006-T24, Class A4, 5.43%, 10/12/41		200,000		197,723

Commercial Mortgage Backed Securities, (continued)


	Principal Amount($)		Value($)

Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49		200,000		197,280
Commercial Mortgage Pass-Through Certificate Series 2006-FL12, Class A2, 2.82%, 12/15/20 (a)(b)(d)		250,256		238,456
Series 2005-LP5, Class AJ, 5.05%, 5/10/43		200,000		182,541
Morgan Stanley Capital I Series 2006-HQ10, Class A4, 5.33%, 11/12/41		180,000		175,258
Series 2007-IQ14, Class A2, 5.61%, 4/15/49		220,000		219,143
Series 2007-IQ14, Class AM, 5.88%, 4/15/49 (a)		130,000		119,920
Washington Mutual Commercial Mortgage Securities Trust, Series 2006-SL1, Class A, 5.42%, 11/23/43 (a)(b)		146,013		131,032

TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (COST $1,743,743)				1,690,144

Foreign Bonds—4.6%

Iceland – 1.3%
Kaupthing Bank, 3.41%, 1/15/10 (a)(b)		225,000		188,437

Netherlands – 0.6%
Shell International Finance BV, 5.20%, 3/22/17		75,000		78,186

South Korea – 1.8%
Citibank Korea, Inc., 4.68%, 6/18/13, Callable 6/18/08 @ 100 (a)		250,000		250,409

United Kingdom – 0.9%
Barclays Bank plc, 5.93%, 12/31/49 (b)		150,000		126,651

TOTAL FOREIGN BONDS (COST $698,553)				643,683


90	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)

Investment Company—9.1%


	Principal Amount($)		Value($)

Northern Institutional Diversified Assets Portfolio, Shares class, 2.33% (c)		1,265,567		1,265,567

TOTAL INVESTMENT COMPANY (COST $1,265,567)				1,265,567

TOTAL INVESTMENTS (COST $17,501,070) — 120.9%				16,871,376


	Percentages indicated are based on net assets of $13,954,791.

(a)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on April 30, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.

(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.

(c)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

(d)	Security held as collateral for to be announced securities.


LLC	— Limited Liability Co.
MTN	— Medium Term Note
PLC	— Public Limited Co.
TBA	— Security was traded on a “to be announced” basis. Represents 17.0% of net assets.


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	91

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stocks—94.3%


	Shares		Value($)

Aerospace & Defense – 8.1%
General Dynamics Corp.		32,600		2,947,692
Raytheon Co.		23,850		1,525,685
The Boeing Co.		5,500		466,730
United Technologies Corp.		23,350		1,692,174

				6,632,281


Biotechnology – 4.4%
Gilead Sciences, Inc. (a)		70,300		3,638,728

Business Services – 1.3%
Fluor Corp.		7,100		1,085,377

Casinos & Gambling – 1.1%
International Game Technology		25,150		873,711

Chemicals – 4.4%
Monsanto Co.		31,300		3,568,826

Computer Software – 2.7%
Adobe Systems, Inc. (a)		22,400		835,296
Electronic Arts, Inc. (a)		26,350		1,356,235

				2,191,531

Computers – 10.0%
Apple, Inc. (a)		18,950		3,296,352
Hewlett-Packard Co.		61,200		2,836,620
Research In Motion Ltd. (a)		17,250		2,098,118

				8,231,090

Consumer Products – 4.0%
Colgate-Palmolive Co.		46,300		3,273,410

Diversified Manufacturing Operations – 3.2%
Joy Global, Inc.		15,400		1,143,450
Thermo Fisher Scientific, Inc. (a)		25,000		1,446,750

				2,590,200

Electronic Components & Semiconductors – 4.4%
Emerson Electric Co.		44,950		2,349,087
Microchip Technology, Inc.		34,000		1,249,500

				3,598,587

Farm Machinery & Equipment – 3.6%
Deere & Co.		35,550		2,988,689

Financial Services – 5.7%
CME Group, Inc.		5,425		2,481,666
Goldman Sachs Group, Inc.		5,050		966,419
Visa, Inc., Class A (a)		14,650		1,222,542

				4,670,627

Food & Beverage – 8.8%
McDonald’s Corp.		21,500		1,280,970
PepsiCo, Inc.		10,950		750,403
The Coca-Cola Co.		56,300		3,314,381
Wm. Wrigley Jr. Co.		7,350		559,776
Yum! Brands, Inc.		31,650		1,287,522

				7,193,052

Health Care – 5.0%
Baxter International, Inc.		27,600		1,720,032
DENTSPLY International, Inc.		20,800		808,496
Zimmer Holdings, Inc. (a)		21,100		1,564,776

				4,093,304


Common Stocks, continued


	Shares		Value($)

Hotels & Lodging – 1.0%
Las Vegas Sands Corp. (a)		11,250		857,475

Industrial Manufacturing – 1.0%
The Manitowoc Co., Inc.		22,750		860,405

Insurance – 1.9%
AFLAC, Inc.		23,900		1,593,413

Internet Related – 0.7%
Google, Inc., Class A (a)		950		545,576

Oil & Gas – 9.5%
National-Oilwell Varco, Inc. (a)		6,700		458,615
Schlumberger Ltd.		26,500		2,664,575
Smith International, Inc.		40,750		3,117,782
Weatherford International Ltd. (a)		19,200		1,548,864

				7,789,836

Pharmaceuticals – 8.5%
Abbott Laboratories		59,300		3,128,075
Alcon, Inc. ADR		10,350		1,635,300
Allergan, Inc.		13,350		752,539
Genentech, Inc. (a)		21,629		1,475,098

				6,991,012

Retail – 1.2%
Kohl’s Corp. (a)		19,400		947,690

Telecommunications – 3.8%
Cisco Systems, Inc. (a)		68,550		1,757,622
Nokia Corp. ADR		16,150		485,631
QUALCOMM, Inc.		20,650		891,873

				3,135,126

TOTAL COMMON STOCKS (COST $65,310,279)				77,349,946

Investment Company—5.4%

Northern Institutional Diversified Assets Portfolio, Shares class, 2.33% (b)		4,390,948		4,390,948

TOTAL INVESTMENT COMPANY (COST $4,390,948)				4,390,948

TOTAL INVESTMENTS (COST $69,701,227) — 99.7%				81,740,894



	Percentages indicated are based on net assets of $82,025,313.

(a)	Represents non-income producing security.

(b)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

ADR — American Depositary Receipt


92	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stocks—98.6%


	Shares		Value($)

Australia – 1.0%
National Australia Bank Ltd.		59,965		1,708,825
Zinifex Ltd.		235,900		2,247,493

				3,956,318

Austria – 1.0%
Voestalpine AG		51,400		3,952,365

Belgium – 1.7%
Fortis		176,832		4,831,551
Solvay SA, Class A		11,700		1,724,795

				6,556,346

Brazil – 0.6%
Banco Do Brasil SA		60,000		1,039,899
Usinas Siderurgicas de Minas Gerais SA		27,900		1,341,524

				2,381,423

Canada – 4.8%
Barrick Gold Corp.		37,500		1,441,821
Canadian Imperial Bank of Commerce		21,000		1,547,050
Fairfax Financial Holdings Ltd.		5,200		1,570,123
Gerdau Ameristeel Corp.		161,000		2,510,628
HudBay Minerals, Inc.		40,600		766,190
Industrial Alliance Insurance and Financial Services, Inc.		26,100		1,026,838
Inmet Mining Corp.		11,300		927,637
Petro-Canada		68,200		3,418,129
Royal Bank of Canada		45,400		2,165,383
Teck Cominco Ltd., B Shares		64,600		2,811,653

				18,185,452

China – 0.2%
China Petroleum & Chemical Corp.		592,000		628,244

Finland – 1.8%
Nokia Oyj		129,400		3,984,087
Stora Enso Oyj, R Shares		236,600		2,940,461

				6,924,548

France – 11.8%
Air France-KLM		28,700		894,845
BNP Paribas SA		64,580		6,982,412
Compagnie Generale des Establissements Michelin, B Shares		39,700		3,642,787
Credit Agricole SA		142,779		4,826,251
France Telecom SA		107,200		3,374,217
Lagardere S.C.A.		46,400		3,346,213
Renault SA		51,500		5,310,895
Sanofi-Aventis		68,900		5,394,830
Societe Generale		35,385		4,152,347
Societe Generale NV (a)		8,846		1,024,798
Total SA		72,900		6,139,403

				45,088,998

Germany – 13.8%
Allianz SE		39,800		8,116,717
BASF AG		63,600		9,070,961
Deutsche Bank AG		52,800		6,355,884
Deutsche Lufthansa AG		162,600		4,313,220
Deutsche Telekom AG		220,300		3,969,245


Common Stocks, continued


	Shares		Value($)

Germany, continued
E.ON AG		38,500		7,874,440
Infineon Technologies AG (a)		304,300		2,831,626
Muenchener Rueckversicherungs- Gesellschaft AG		27,700		5,362,769
RWE AG		41,300		4,781,331

				52,676,193

Hong Kong – 0.4%
China Netcom Group Corp., Ltd.		462,000		1,393,191

India – 0.4%
State Bank of India GDR		17,600		1,650,880

Italy – 3.0%
Buzzi Unicem SpA		42,900		1,100,481
ENI SpA		189,900		7,335,206
Fondiaria-SAI SpA		57,900		2,339,540
Fondiaria-SAI SpA-RNC		18,700		496,338

				11,271,565

Japan – 21.6%
Alps Electric Co., Ltd.		55,000		511,542
Canon, Inc.		32,250		1,612,965
FUJITSU Ltd.		573,000		3,653,929
Hitachi Ltd.		170,000		1,146,196
Honda Motor Co., Ltd.		99,000		3,142,253
JFE Holdings, Inc.		101,600		5,570,068
Kyushu Electric Power Co., Inc.		101,300		2,299,394
Mitsubishi Chemical Holdings Corp.		303,000		2,010,869
Mitsubishi Corp.		129,000		4,144,080
Mitsubishi UFJ Financial Group, Inc.		645,000		7,097,047
Mitsui & Co., Ltd.		86,000		2,018,274
Mitsui Chemicals, Inc.		417,000		2,542,830
Mitsui O.S.K. Lines Ltd.		327,000		4,500,693
NAMCO BANDAI Holdings, Inc.		123,800		1,550,328
Nippon Mining Holdings, Inc.		360,000		2,226,411
Nippon Steel Corp.		329,000		1,847,995
Nippon Telegraph & Telephone Corp.		881		3,796,172
Nippon Yusen Kabushiki Kaisha		152,000		1,476,580
Nissan Motor Co., Ltd.		534,700		4,741,689
ORIX Corp.		21,300		3,843,301
Sharp Corp.		261,000		4,385,563
Sony Corp.		12,510		575,145
Sumitomo Mitsui Financial Group, Inc.		731		6,292,632
The Tokyo Electric Power Co., Inc.		165,200		4,202,693
Toshiba Corp.		543,000		4,501,933
Toyota Motor Corp.		56,700		2,873,992

				82,564,574

Luxembourg – 1.5%
ArcelorMittal		64,352		5,705,866

Netherlands – 4.5%
Corporate Express NV		107,400		1,239,185
ING Groep NV		216,068		8,268,399
Koninklijke Ahold NV (a)		266,720		3,964,425
Koninklijke DSM NV		34,900		1,886,972
Wolters Kluwer NV		70,200		1,891,758

				17,250,739


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	93

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Common Stocks, continued


	Shares		Value($)

Norway – 1.5%
StatoilHydro ASA		153,100		5,552,772

Russian Federation – 0.6%
JSC MMC Norilsk Nickel ADR		32,750		884,250
LUKOIL ADR		16,550		1,494,465

				2,378,715

Singapore – 0.6%
Flextronics International Ltd. (a)		104,800		1,088,872
Neptune Orient Lines Ltd.		427,000		1,014,192

				2,103,064

South Africa – 0.5%
Sanlam Ltd.		554,040		1,467,325
Standard Bank Group Ltd.		31,023		369,728

				1,837,053

South Korea – 2.1%
Honam Petrochemical Corp.		8,100		719,982
Hynix Semiconductor, Inc. (a)		24,700		660,375
Hyundai Motor Co., Ltd.		9,500		801,776
Hyundai Motors Co., Ltd., Second Preferred		15,950		573,621
Industrial Bank of Korea GDR		88,300		1,479,025
Kookmin Bank ADR		14,600		1,018,350
POSCO ADR		11,400		1,406,760
Samsung Electronics Co., Ltd., Preferred		2,900		1,492,817

				8,152,706

Spain – 1.3%
Repsol YPF SA		118,600		4,821,846

Sweden – 2.1%
Electrolux AB, B Shares		118,500		1,821,584
Svenska Cellusoa AB (SCA), B Shares		189,700		3,201,340
Tele2 AB, B Shares		73,400		1,637,271
Volvo AB, B Shares		86,500		1,322,453

				7,982,648

Switzerland – 1.7%
Credit Suisse Group		81,100		4,517,299
Novartis AG		42,460		2,160,095

				6,677,394

Taiwan – 1.5%
Asustek Computer, Inc.		430,000		1,395,434
China Steel Corp. GDR		38,878		1,269,367
Siliconware Precision Industries Co.		707,691		1,225,006
Taiwan Semiconductor Manufacturing Co., Ltd.		508,398		1,113,817
United Microelectronics Corp.		1,094,551		668,702

				5,672,326

Thailand – 0.3%
PTT Public Co., Ltd.		121,400		1,279,306

United Kingdom – 18.3%
Associated British Foods plc		199,300		3,492,772
Aviva plc		352,191		4,407,727
BAE Systems plc		251,400		2,332,868
Barclays plc		457,700		4,153,960
BP plc		125,000		1,518,420
British Energy Group plc		277,000		4,185,372
GlaxoSmithKline plc		259,600		5,785,634
HBOS plc		373,041		3,489,449


Common Stocks, continued


	Shares		Value($)

United Kingdom, continued
Home Retail Group plc		358,100		1,879,528
ITV plc		879,270		1,153,737
Kazakhmys plc		84,600		2,660,832
Punch Taverns plc		91,000		938,060
Royal & Sun Alliance Insurance Group plc		776,127		2,073,828
Royal Bank of Scotland Group plc		1,039,124		7,127,334
Royal Dutch Shell plc, A Shares		232,387		9,368,191
Royal Dutch Shell plc, B Shares		45,973		1,841,699
Taylor Wimpey plc		468,220		1,198,499
Vodafone Group plc		2,624,658		8,364,633
Xstrata plc		51,700		4,055,910

				70,028,453

TOTAL COMMON STOCKS (COST $329,498,217)				376,672,985

Investment Company—0.6%

Northern Institutional Diversified Assets Portfolio, Shares class, 2.33% (b)		2,269,283		2,269,283

TOTAL INVESTMENT COMPANY (COST $2,269,283)				2,269,283

TOTAL INVESTMENTS (COST $331,767,500) — 99.2%				378,942,268



	Percentages indicated are based on net assets of $382,006,984.

(a)	Represents non-income producing security.

(b)	The rates presented represent the annualized one day yield that was in effect on April 30, 2008.

ADR — American Depositary Receipt
GDR — Global Depositary Receipt
PLC — Public Limited Co.
SPA — Standby Purchase Agreement


Schedule Portfolio Investments—April 30, 2008


Industry	Percent of Net Assets

Aerospace & Defense		0.6	%
Automotive		7.7	%
Banking & Financial Services		20.6	%
Broadcasting		0.3	%
Building & Construction		1.4	%
Cash & Cash Equivalents		0.6	%
Chemicals		4.7	%
Distribution/Wholesale		0.3	%
Drugs - Medical		3.5	%
Electrical		7.9	%
Electronic Components & Semiconductors		4.8	%
Food & Beverage		0.9	%
Import/Export		0.5	%
Insurance		6.6	%
Manufacturing		3.9	%
Metals & Mining		8.8	%
Oil & Gas		12.0	%
Paper & Related Products		0.8	%
Publishing		1.4	%
Retail		1.8	%
Telecommunications		6.9	%
Transportation Services		3.2	%

Total Investments		99.2	%


94	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stocks—96.5%


	Shares		Value($)

Aerospace & Defense – 4.4%
BE Aerospace, Inc. (a)		76,600		3,091,576
Empresa Brasileira de Aeronautica S.A. ADR		68,400		2,850,912
Esterline Technologies Corp. (a)		46,950		2,613,237

				8,555,725

Biotechnology – 3.2%
Illumina, Inc. (a)		33,400		2,601,526
Invitrogen Corp. (a)		38,900		3,639,873

				6,241,399

Business Services – 1.9%
Navigant Consulting, Inc. (a)		186,250		3,747,350

Computer Software – 14.2%
ACI Worldwide, Inc. (a)		157,500		3,480,750
BMC Software, Inc. (a)		130,700		4,543,132
Brocade Communications Systems, Inc. (a)		388,700		2,783,092
Check Point Software Technologies Ltd. (a)		112,750		2,663,155
F5 Networks, Inc. (a)		94,750		2,144,192
Nuance Communications, Inc. (a)		270,750		5,490,810
Red Hat, Inc. (a)		186,400		3,834,248
Satyam Computer Services Ltd. ADR		115,100		2,955,768

				27,895,147

Consumer Products – 5.0%
Church & Dwight Co., Inc.		74,400		4,227,408
Crown Holdings, Inc. (a)		117,100		3,142,964
Jarden Corp. (a)		112,350		2,395,302

				9,765,674

Diversified Manufacturing Operations – 4.5%
Actuant Corp., Class A		132,400		4,484,388
AMETEK, Inc.		88,500		4,294,020

				8,778,408

Education – 2.1%
Corinthian Colleges, Inc. (a)		117,329		1,331,684
DeVry, Inc.		49,500		2,821,500

				4,153,184

Electronic Components & Semiconductors – 1.8%
ATMI, Inc. (a)		60,750		1,788,480
Thomas & Betts Corp. (a)		49,500		1,854,270

				3,642,750

Financial Services – 2.3%
Affiliated Managers Group, Inc. (a)		20,150		2,001,701
MF Global Ltd. (a)		185,450		2,442,377

				4,444,078

Health Care – 8.4%
DaVita, Inc. (a)		80,900		4,239,969
DENTSPLY International, Inc.		98,500		3,828,695
Gen-Probe, Inc. (a)		67,500		3,804,300
Pediatrix Medical Group, Inc. (a)		50,900		3,462,218
Volcano Corp. (a)		97,050		1,148,102

				16,483,284


Common Stocks, continued


	Shares		Value($)

Hotels & Lodging – 1.1%
LaSalle Hotel Properties		64,900		2,081,343

Industrial Manufacturing – 8.2%
IDEX Corp.		119,300		4,377,117
Oshkosh Corp.		77,100		3,130,260
The Manitowoc Co., Inc.		127,200		4,810,704
WESCO International, Inc. (a)		102,600		3,817,746

				16,135,827

Media – 1.3%
DreamWorks Animation SKG, Inc. (a)		89,600		2,505,216

Oil & Gas – 15.4%
BJ Services Co.		50,300		1,421,981
Consol Energy, Inc.		52,700		4,266,592
Denbury Resources, Inc. (a)		168,500		5,149,360
Exterran Holdings, Inc. (a)		64,900		4,334,671
Massey Energy Co.		111,550		5,837,411
National-Oilwell Varco, Inc. (a)		1		62
Range Resources Corp.		57,400		3,810,212
Smith International, Inc.		70,400		5,386,304

				30,206,593

Pharmaceuticals – 12.1%
Alexion Pharmaceuticals, Inc. (a)		68,400		4,813,992
Elan Corp. plc ADR (a)		338,700		8,904,423
OSI Pharmaceuticals, Inc. (a)		129,050		4,471,582
Santarus, Inc. (a)		243,700		653,116
Shire plc ADR		88,500		4,862,190

				23,705,303

Retail – 5.5%
Dick’s Sporting Goods, Inc. (a)		67,500		1,930,500
O’Reilly Automotive, Inc. (a)		83,400		2,407,758
PetSmart, Inc.		141,200		3,160,056
Urban Outfitters, Inc. (a)		92,700		3,174,975

				10,673,289

Telecommunications – 2.2%
Comverse Technology, Inc. (a)		99,400		1,734,530
Polycom, Inc. (a)		119,950		2,686,880

				4,421,410

Transportation – 2.9%
Aircastle Ltd.		110,050		1,538,499
Kansas City Southern (a)		91,800		4,138,344

				5,676,843


TOTAL COMMON STOCKS (COST $171,738,981)				189,112,823


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	95

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited) (continued)


Investment Company—4.7%


	Shares		Value($)


Northern Institutional Government Select Portfolio, Shares class, 1.96% (b)		9,130,193		9,130,193

TOTAL INVESTMENT COMPANY (COST $9,130,193)				9,130,193

TOTAL INVESTMENTS (COST $180,869,174) — 101.2%				198,243,016



	Percentages indicated are based on net assets of $195,929,545.

(a)	Represents non-income producing security.

(b)	The rate presented represents the annualized one day yield that was in effect on April 30, 2008.

ADR — American Depositary Receipt
PLC — Public Limited Co.


96	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR VALUE PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2008 (Unaudited)


Common Stocks—94.3%


	Shares		Value($)

Aerospace & Defense – 4.3%
Lockheed Martin Corp.		12,500		1,325,500
Raytheon Co.		28,300		1,810,351

				3,135,851

Banking – 3.6%
Bank of America Corp.		29,100		1,092,414
Wells Fargo & Co.		50,700		1,508,325

				2,600,739

Business Services – 3.6%
Pitney Bowes, Inc.		71,600		2,585,476

Computer Software – 6.8%
CA, Inc.		135,600		3,002,184
Microsoft Corp.		66,700		1,902,284

				4,904,468

Conglomerates – 3.1%
Loews Corp.		52,600		2,214,986

Consumer Products – 4.9%
Altria Group, Inc.		30,800		616,000
Kimberly-Clark Corp.		27,500		1,759,725
Kraft Foods, Inc.		25,069		792,932
Tyson Foods, Inc., Class A		19,900		354,220

				3,522,877

Diversified Manufacturing Operations – 3.3%
Illinois Tool Works, Inc.		18,400		962,136
Ingersoll-Rand Co., Class A		32,400		1,437,912

				2,400,048

Electronic Components & Semiconductors – 0.7%
Agilent Technologies, Inc. (a)		17,464		527,587

Energy – 1.5%
NRG Energy, Inc. (a)		24,400		1,072,380

Financial Services – 6.4%
Citigroup, Inc.		44,707		1,129,746
Fannie Mae		56,000		1,584,800
JP Morgan Chase & Co.		39,950		1,903,617

				4,618,163

Insurance – 10.6%
Aetna, Inc.		16,700		728,120
Aon Corp.		36,800		1,670,352
Genworth Financial, Inc., Class A		93,500		2,156,110
MGIC Investment Corp.		18,400		239,752
Radian Group, Inc.		32,100		173,340
The Hartford Financial Services Group, Inc.		37,300		2,658,371

				7,626,045

Media – 8.9%
CBS Corp., Class B		34,350		792,455
Comcast Corp., Class A		85,850		1,737,604
Liberty Media Corp. Interactive, Class A (a)		37,087		561,126


Common Stocks, (continued)


	Shares		Value($)

Media, continued
Viacom, Inc., Class B (a)		87,000		3,344,280

				6,435,465

Metals & Mining – 5.9%
AngloGold Ashanti Ltd. ADR		27,300		931,476
Barrick Gold Corp.		57,600		2,224,512
United States Steel Corp.		7,300		1,123,835

				4,279,823

Oil & Gas – 12.6%
Apache Corp.		24,400		3,286,192
ConocoPhillips		9,571		824,542
Hess Corp.		13,600		1,444,320
Noble Energy, Inc.		32,600		2,836,200
Talisman Energy, Inc.		34,600		705,148

				9,096,402

Paper & Related Products – 0.8%
International Paper Co.		22,300		583,591

Pharmaceuticals – 4.4%
Amgen, Inc. (a)		36,100		1,511,507
Sanofi-Aventis ADR		42,700		1,647,366

				3,158,873

Telecommunications – 7.6%
AT&T, Inc.		51,791		2,004,830
Motorola, Inc.		202,400		2,015,904
Sprint Nextel Corp.		45,600		364,344
Verizon Communications, Inc.		27,800		1,069,744

				5,454,822

Tobacco – 2.2%
Philip Morris International, Inc. (a)		30,800		1,571,724

Transportation – 3.1%
Union Pacific Corp.		15,300		2,221,407


TOTAL COMMON STOCKS (COST $65,012,345)				68,010,727

Investment Company—5.3%

Northern Institutional Government Select Portfolio, Shares class, 1.96%, (b)		3,793,994		3,793,994

TOTAL INVESTMENT COMPANY (COST $3,793,994)				3,793,994

TOTAL INVESTMENTS (COST $68,806,339) — 99.6%				71,804,721



	Percentages indicated are based on net assets of $72,120,671.

(a)	Represents non-income producing security.

(b)	The rate presented represents the annualized one day yield that was in effect on April 30, 2008.

ADR — American Depositary Receipt


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	97

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited)


	Core Plus Fixed Income Portfolio		High Yield Fixed Income Portfolio		Intermediate Duration Fixed Income Portfolio		Growth Portfolio		International Equity Portfolio

Assets:
Investments in non-affiliates, at value	$	127,858,766	$	13,668,337	$	16,871,376	$	81,740,894	$	378,942,268
Foreign currency, at value		—		—		—		—		1,572,984
Interest and dividends receivable		920,962		358,088		110,924		74,474		2,286,427
Receivable for investments sold		125,569		—		510,189		681,878		39,343
Prepaid expenses and other assets		1,403		3,130		207		1,142		5,951

Total Assets		128,906,700		14,029,555		17,492,696		82,498,388		382,846,973

Liabilities:
Payable for investments purchased		21,700,866		—		3,528,743		429,198		532,050
Accrued expenses and other liabilities:
Investment Management		42,252		6,744		4,721		31,588		257,201
Administration		6,832		441		1,707		2,559		15,685
Compliance Service		141		13		17		74		497
Other		5,707		689		2,717		9,656		34,556

Total Liabilities		21,755,798		7,887		3,537,905		473,075		839,989

Net Assets:
Applicable to investors’ beneficial interest	$	107,150,902	$	14,021,668	$	13,954,791	$	82,025,313	$	382,006,984

Total Investments, at cost	$	131,291,027	$	14,615,217	$	17,501,070	$	69,701,227	$	331,767,500

Foreign currency, at cost	$	—	$	—	$	—	$	—	$	1,560,548


98	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of April 30, 2008 (Unaudited) (continued)


	Opportunity Portfolio		Value Portfolio

Assets:
Investments in non-affiliates, at value	$	198,243,016	$	71,804,721
Interest and dividends receivable		49,933		67,253
Receivable for investments sold		8,205,063		283,094
Prepaid expenses and other assets		2,968		1,291

Total Assets		206,500,980		72,156,359

Liabilities:
Payable for investments purchased		10,429,869		—
Accrued expenses and other liabilities:
Investment Management		123,879		30,613
Administration		10,562		2,380
Compliance Service		282		81
Other		6,843		2,614

Total Liabilities		10,571,435		35,688

Net Assets:
Applicable to investors’ beneficial interest	$	195,929,545	$	72,120,671

Total Investments, at cost	$	180,869,174	$	68,806,339


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	99

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the six months ended April 30, 2008 (Unaudited)


	Core Plus Fixed Income Portfolio			High Yield Fixed Income Portfolio			Intermediate Duration Fixed Income Portfolio			Growth Portfolio			International Equity Portfolio

Investment Income:
Interest	$	2,945,066		$	612,506		$	370,761		$	—		$	38,615
Dividends		107,344			4,918			20,569			400,300			6,100,654
Foreign tax withholding		—			—			—			—			(627,218	)

Total Investment Income		3,052,410			617,424			391,330			400,300			5,512,051

Expenses:
Investment Management		260,224			40,631			29,353			192,718			1,253,632
Administration		12,687			1,548			1,679			9,363			43,687
Accounting		34,631			39,235			32,094			33,615			48,370
Compliance Service		333			36			39			228			1,176
Custodian		5,205			888			1,613			3,797			116,364
Printing		444			49			77			358			1,893
Professional		1,947			295			162			1,493			6,783
Trustee		651			77			83			484			2,317
Other		3,382			454			442			2,572			11,823

Total Expenses		319,504			83,213			65,542			244,628			1,486,045

Net Investment Income (Loss)		2,732,906			534,211			325,788			155,672			4,026,006

Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies:
Net realized gains (losses) from investment and foreign currency transactions		(323,666	)		(53,540	)		(8,207	)		2,536,512			21,492,000
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(3,313,157	)		(733,817	)		(543,869	)		(10,179,207	)		(74,548,272	)

Net realized/unrealized gains (losses) from investment and foreign currency transactions		(3,636,823	)		(787,357	)		(552,076	)		(7,642,695	)		(53,056,272	)

Change In Net Assets Resulting From Operations	$	(903,917	)	$	(253,146	)	$	(226,288	)	$	(7,487,023	)	$	(49,030,266	)


100	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Operations — For the six months ended April 30, 2008 (Unaudited) (continued)


	Opportunity Portfolio			Value Portfolio

Investment Income:
Dividends	$	398,103		$	767,817

Total Investment Income		398,103			767,817


Expenses:
Investment Management		770,287			192,741
Administration		22,020			8,396
Accounting		27,062			26,501
Compliance Service		501			201
Custodian		7,474			2,559
Printing		929			390
Professional		3,129			1,149
Trustee		1,055			431
Other		5,922			2,287

Total Expenses		838,379			234,655


Net Investment Income (Loss)		(440,276	)		533,162


Net Realized/Unrealized Gains (Losses) from Investments and Foreign Currencies:
Net realized gains (losses) from investments and foreign currency transactions		19,546,781			638,240
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(25,370,794	)		(9,799,293	)


Net realized/unrealized gains (losses) from investment and foreign currency transactions		(5,824,013	)		(9,161,053	)

Change In Net Assets Resulting From Operations	$	(6,264,289	)	$	(8,627,891	)


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	101

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets


	Core Plus Fixed Income Portfolio						High Yield Fixed Income Portfolio

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	2,732,906		$	5,909,376		$	534,211		$	931,443
Net realized gains (losses) from investment and foreign currency transactions		(323,666	)		2,910,717			(53,540	)		119,132
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(3,313,157	)		(1,031,793	)		(733,817	)		(279,652	)

Change in net assets resulting from operations		(903,917	)		7,788,300			(253,146	)		770,923

Proceeds from contributions		11,076,269			24,166,324			1,982,026			5,258,548
Value of withdrawals		(22,833,358	)		(23,334,647	)		(2,194,475	)		(4,260,973	)

Change in net assets resulting from transactions in investors’ beneficial interest		(11,757,089	)		831,677			(212,449	)		997,575

Change in net assets		(12,661,006	)		8,619,977			(465,595	)		1,768,498

Net Assets:
Beginning of period		119,811,908			111,191,931			14,487,263			12,718,765

End of period	$	107,150,902		$	119,811,908		$	14,021,668		$	14,487,263


102	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)


	Intermediate Duration Fixed Income Portfolio

		For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	325,788		$	882,974
Net realized gains (losses) from investment and foreign currency transactions		(8,207	)		848,391
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(543,869	)		(182,994	)

Change in net assets resulting from operations		(226,288	)		1,548,371

Proceeds from contributions		1,413,784			2,605,895
Value of withdrawals		(2,291,274	)		(8,612,265	)

Change in net assets resulting from transactions in investors’ beneficial interest		(877,490	)		(6,006,370	)

Change in net assets		(1,103,778	)		(4,457,999	)

Net Assets:
Beginning of period		15,058,569			19,516,568

End of period	$	13,954,791		$	15,058,569


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	103

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)


	Growth Portfolio						International Equity Portfolio

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	155,672		$	334,013		$	4,026,006		$	8,527,724
Net realized gains (losses) from investment and foreign currency transactions		2,536,512			4,271,356			21,492,000			36,079,080
Change in unrealized appreciation (depreciation) from investments and foreign currencies		(10,179,207	)		16,611,654			(74,548,272	)		42,586,569

Change in net assets resulting from operations		(7,487,023	)		21,217,023			(49,030,266	)		87,193,373

Proceeds from contributions		8,140,434			25,944,124			23,350,477			90,634,524
Value of withdrawals		(8,313,975	)		(17,303,034	)		(47,374,836	)		(56,520,981	)

Change in net assets resulting from transactions in investors’ beneficial interest		(173,541	)		8,641,090			(24,024,359	)		34,113,543

Change in net assets		(7,660,564	)		29,858,113			(73,054,625	)		121,306,916

Net Assets:
Beginning of period		89,685,877			59,827,764			455,061,609			333,754,693

End of period	$	82,025,313		$	89,685,877		$	382,006,984		$	455,061,609


104	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)


	Opportunity Portfolio						Value Portfolio

	For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007			For the six months ended April 30, 2008 (Unaudited)			For the year ended October 31, 2007

Investment Activities:
Operations:
Net investment income (loss)	$	(440,276	)	$	(1,201,508	)	$	533,162		$	992,431
Net realized gains (losses) from investment and foreign currency transactions		19,546,781			58,390,322			638,240			6,083,399
Change in unrealized appreciation/depreciation from investments and foreign currencies		(25,370,794	)		1,890,389			(9,799,293	)		71,241

Change in net assets resulting from operations		(6,264,289	)		59,079,203			(8,627,891	)		7,147,071

Proceeds from contributions		8,629,465			77,393,032			5,665,260			23,927,675
Value of withdrawals		(30,704,097	)		(153,698,612	)		(7,574,938	)		(15,848,601	)

Change in net assets resulting from transactions in investors’ beneficial interest		(22,074,632	)		(76,305,580	)		(1,909,678	)		8,079,074

Change in net assets		(28,338,921	)		(17,226,377	)		(10,537,569	)		15,226,145

Net Assets:
Beginning of period		224,268,466			241,494,843			82,658,240			67,432,095

End of period	$	195,929,545		$	224,268,466		$	72,120,671		$	82,658,240


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	105

HSBC INVESTOR PORTFOLIOS

Financial Highlights


			Ratios/Supplementary Data

	Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(b)		Ratio of Net Investment Income (Loss) to Average Net Assets(b)		Ratio of Expenses to Average Net Assets(b)(c)		Portfolio Turnover Rate(a)

CORE PLUS FIXED INCOME PORTFOLIO
Year Ended October 31, 2003	5.80	%		$	203,551	0.48	%	4.38	%	0.48	%	70.91	%
Year Ended October 31, 2004	5.56	%			169,459	0.52	%	4.31	%	0.52	%	34.88	%
Year Ended October 31, 2005	1.64	%(d)			122,530	0.40	%(d)	4.25	%(d)	0.53	%	176.60	%
Year Ended October 31, 2006	5.55	%			111,192	0.63	%	4.96	%	0.63	%	273.91	%
Year Ended October 31, 2007	6.94	%			119,812	0.59	%	4.99	%	0.59	%	252.56	%
Six Months Ended April 30, 2008 (Unaudited)	(0.87	) %			107,151	0.58	%	4.93	%	0.58	%	61.96	%

HIGH YIELD FIXED INCOME PORTFOLIO
Period Ended October 31, 2006 (e)	7.41	%		$	12,719	1.86	%	6.33	%	1.86	%	13.61	%
Year Ended October 31, 2007	6.41	%			14,487	1.37	%	7.12	%	1.37	%	30.77	%
Six Months Ended April 30, 2008 (Unaudited)	(1.81	)%			14,022	1.23	%	7.90	%	1.23	%	14.28	%

INTERMEDIATE DURATION FIXED INCOME PORTFOLIO
Year Ended October 31, 2003	4.42	%		$	84,488	0.53	%	3.70	%	0.53	%	98.42	%
Year Ended October 31, 2004	4.48	%			63,697	0.57	%	3.54	%	0.57	%	50.06	%
Year Ended October 31, 2005	0.76	%(d)			32,810	0.49	%(d)	3.85	%(d)	0.58	%	107.26	%
Year Ended October 31, 2006	5.29	%			19,517	0.78	%	4.58	%	0.78	%	236.51	%
Year Ended October 31, 2007	8.38	%			15,059	0.84	%	4.68	%	0.84	%	219.76	%
Six Months Ended April 30, 2008 (Unaudited)	(1.53	) %			13,955	0.89	%	4.44	%	0.89	%	52.13	%

GROWTH PORTFOLIO
Period Ended October 31, 2004 (e)	(0.86	) %		$	49,680	0.72	%	0.06	%	0.72	%	53.08	%
Year Ended October 31, 2005	13.59	%(d)			49,415	0.63	%(d)	0.77	%(d)	0.68	%	79.54	%
Year Ended October 31, 2006	7.53	%			59,828	0.69	%	0.38	%	0.69	%	75.06	%
Year Ended October 31, 2007	31.11	%			89,686	0.62	%	0.45	%	0.62	%	57.04	%
Six Months Ended April 30, 2008 (Unaudited)	(8.33	) %			82,025	0.60	%	0.38	%	0.60	%	29.44	%

INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2003	23.70	%		$	201,805	0.96	%	1.00	%	0.96	%	68.51	%
Year Ended October 31, 2004	20.29	%			220,025	0.94	%	1.53	%	0.94	%	106.11	%
Year Ended October 31, 2005	19.54	%			230,230	0.84	%	1.92	%	0.84	%	31.32	%
Year Ended October 31, 2006	32.79	%			333,755	0.86	%	2.03	%	0.86	%	33.39	%
Year Ended October 31, 2007	25.17	%			455,062	0.79	%	2.16	%	0.79	%	26.08	%
Six Months Ended April 30, 2008 (Unaudited)	(10.79	) %			382,007	0.78	%	2.11	%	0.78	%	13.91	%

OPPORTUNITY PORTFOLIO
Year Ended October 31, 2003	33.30	%		$	426,181	0.91	%	(0.62	) %	0.91	%	152.05	%
Year Ended October 31, 2004	5.93	%			359,333	0.88	%	(0.52	) %	0.88	%	81.75	%
Year Ended October 31, 2005	14.35	%(d)			218,778	0.85	%(d)	(0.45	)%(d)	0.90	%	63.95	%
Year Ended October 31, 2006	19.54	%			241,495	0.91	%	(0.40	) %	0.91	%	60.83	%
Year Ended October 31, 2007	30.54	%			224,268	0.91	%	(0.55	) %	0.91	%	69.41	%
Six Months Ended April 30, 2008 (Unaudited)	(2.63	) %			195,930	0.87	%	(0.46	) %	0.87	%	39.97	%

VALUE PORTFOLIO
Period Ended October 31, 2004 (e)	6.12	%		$	61,414	0.71	%	1.28	%	0.71	%	10.33	%
Year Ended October 31, 2005	15.23	%(d)			54,150	0.64	%(d)	1.15	%(d)	0.69	%	16.45	%
Year Ended October 31, 2006	22.21	%			67,432	0.71	%	1.23	%	0.71	%	20.63	%
Year Ended October 31, 2007	10.28	%			82,658	0.66	%	1.29	%	0.66	%	18.67	%
Six Months Ended April 30, 2008 (Unaudited)	(10.38	) %			72,121	0.64	%	1.45	%	0.64	%	14.42	%


(a)	Not annualized for periods less than one year.

(b)	Annualized for periods less than one year.

(c)	During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.

(d)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.12%, 0.09%, 0.05%, 0.04% and 0.05% for the Core Plus Fixed Income Portfolio, Intermediate Duration Fixed Income Portfolio, Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively.

(e)	High Yield Fixed Income Portfolio commenced operations on November 18, 2005.

	Growth Portfolio commenced operations on May 7, 2004.

	Value Portfolio commenced operations on May 7, 2004.

See notes to financial statements.


106	HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2008 (Unaudited)


1.	Organization:

	The HSBC Investor Portfolios (the “Portfolio Trust’’), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,’’ collectively the “Portfolios’’):

		Portfolio	Short Name


		HSBC Investor Core Plus Fixed Income Portfolio	Core Plus Fixed Income Portfolio

		HSBC Investor High Yield Fixed Income Portfolio	High Yield Fixed Income Portfolio

		HSBC Investor Intermediate Duration Fixed Income Portfolio	Intermediate Duration Fixed Income Portfolio

		HSBC Investor Growth Portfolio	Growth Portfolio

		HSBC Investor International Equity Portfolio	International Equity Portfolio

		HSBC Investor Opportunity Portfolio	Opportunity Portfolio

		HSBC Investor Value Portfolio	Value Portfolio

	The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest their investable assets in the Portfolios. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios.

	The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately.

	Under the Portfolio Trust’s organizational documents, the Portfolios’ officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolios may enter into contracts with their service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolios expect that risk of loss to be remote.

2.	Significant Accounting Policies:

	The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP’’). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

	Securities Valuation:

	Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Portfolios’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straight-line) basis to the maturity of the security.

	The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Portfolios’ Board of Trustees. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural


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	disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges.

	Investment Transactions and Related Income:

	Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.

	Foreign Currency Translation:

	The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.

	Forward Foreign Currency Exchange Contracts:

	The Portfolios may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.

	Futures Contracts:

	Each Portfolio may invest in futures contracts for the purpose of hedging their existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,’’ are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets.

	Mortgage Dollar Roll Transactions:

	The Core Plus Fixed Income Portfolio, the High Yield Fixed Income Portfolio and the Intermediate Duration Fixed Income Portfolio may engage in dollar roll transactions with respect to mortgage securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. In a dollar roll transaction, the Portfolio sells a mortgage-backed security and simultaneously agrees to repurchase a similar security on a specified future date at an agreed upon price. During the roll period, the Portfolio will not be entitled to receive any interest or principal paid on the securities sold. The Portfolio is compensated for the lost interest on the securities sold by the difference between the sales price and the lower price for the future repurchase as well as by the interest earned on the reinvestment of the sales proceeds. The Portfolio may also be compensated by receipt of a commitment fee.


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	Restricted and Illiquid Securities:

	A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act’’) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the investment adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At April 30, 2008 the HSBC Core Plus Fixed Income Portfolio held restricted securities that were illiquid, representing 0.02% of net assets, as follows:

Security Name

Acquisition
Date

Acquisition
Cost($)

Principal
Amount($)

Value($)

FHA Weyerhauser, 7.43%, 1/1/24

3/28/2002

25,228

26,696


	Repurchase Agreements:

	The Portfolios may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer’’ (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Portfolio plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a fair value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Portfolios’ custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Portfolio has the right to use the collateral to offset losses incurred. There is a potential for loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Portfolio seeks to assert its rights.

	Expense Allocations:

	Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis.

	Federal Income Taxes:

	Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies.

	In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Portfolio Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Portfolios’ net assets or results of operations.


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	New Accounting Pronouncements:

	In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards SFAS No. 157, “Fair Value Measurements”(“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The changes to current GAAP from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Management does not believe the adoption of SFAS No. 157 will materially impact the financial statements; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.

	In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Portfolios financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures.

3.	Related Party Transactions:

	Investment Management:

	HSBC Investments (USA) Inc. (which became HSBC Global Asset Management (USA) Inc. effective June 2, 2008) (“HSBC’’ or the “Investment Adviser’’), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Waddell & Reed Investment Management Company, AllianceBernstein Investment Research and Management, Westfield Capital Management, LLC and NWQ Investment Management Co., LLC serve as Sub-Investment Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios.

	For its services, the Investment Adviser receives a fee, accrued daily and paid monthly, at an annual rate of 0.60% of the High Yield Fixed Income Portfolio’s average daily net assets and 0.40% of the Intermediate Duration Fixed Income Portfolio’s average daily net assets.

	For its services as Investment Adviser, HSBC receives, from the Core Plus Fixed Income Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


Based on Average Daily Net Assets of	Fee Rate

Up to $50 million	0.575	%
In excess of $50 million but not exceeding $95 million	0.450	%
In excess of $95 million but not exceeding $150 million	0.200	%
In excess of $150 million but not exceeding $250 million	0.400	%
In excess of $250 million	0.350	%


	For their services, the Investment Adviser and Waddell & Reed Investment Management Company receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


Based on Average Daily Net Assets of	Fee Rate

Up to $50 million	0.500	%
In excess of $50 million but not exceeding $100 million	0.425	%
In excess of $100 million but not exceeding $200 million	0.375	%
In excess of $200 million	0.325	%


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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


	For their services, the Investment Adviser and AllianceBernstein Investment Research and Management receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


Based on Average Daily Net Assets of:	Fee Rate

Up to $10 million	1.015	%
In excess of $10 million but not exceeding $25 million	0.925	%
In excess of $25 million but not exceeding $50 million	0.79	%
In excess of $50 million but not exceeding $100 million	0.70	%
In excess of $100 million	0.61	%


	For their services, the Investment Adviser and Westfield Capital Management, LLC receive in aggregate, a fee, accrued daily and paid monthly, at an annual rate of 0.80% of the Opportunity Portfolio’s average daily net assets.

	For their services, the Investment Adviser and NWQ Investment Management Co., LLC receive in aggregate, from the Value Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


Based on Average Daily Net Assets of	Fee Rate

Up to $500 million	0.525	%
In excess of $500 million but not exceeding $1 billion	0.475	%
In excess of $1 billion	0.425	%


	Administration:

	HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios a fee, accrued daily and paid monthly, at an annual rate of:


Based on Average Daily Net Assets of	Fee Rate

Up to $12 billion	0.0525	%
In excess of $12 billion	0.0350	%


	The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and Feeder Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half of the administration fee, for a combination of the total fee rate set forth above.

	Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio’’), a wholly-owned subsidiary of The Citigroup, Inc., serves as the Portfolio Trust’s sub-administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC.

	Under a Compliance Services Agreement between the Portfolios and Citi Ohio (the “CCO Agreement’’), Citi Ohio makes an employee available to serve as the Portfolios’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $125,400 for the period ended April 30, 2008, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.’’ Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio.

	Fund Accounting, Custodian and Trustee:

	Citi Ohio provides fund accounting services for the Portfolios. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly.

	Effective April 1, 2008 each of the six non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee


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	Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.

	Prior to April 1, 2008 each of the six non-interested Trustees are compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.

4.	Investment Transactions:

	Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2008 were as follows:


Portfolio Name	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)		Purchases of U.S. Government		Sales of U.S. Government

Core Plus Fixed Income Portfolio	$	25,839,917	$	44,373,528	$	38,241,573	$	29,287,671
High Yield Fixed Income Portfolio		1,909,068		1,874,639		—		—
Intermediate Duration Fixed Income Portfolio		1,981,553		5,467,875		4,902,753		2,961,503
Growth Portfolio		23,757,509		26,341,429		—		—
International Equity Portfolio		53,593,082		64,674,325		—		—
Opportunity Portfolio		76,590,560		101,410,149		—		—
Value Portfolio		10,064,290		10,311,265		—		—


5.	Federal Income Tax Information:

	At April 30, 2008, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows:


Portfolio Name	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)

Core Plus Fixed Income Portfolio	$	131,318,596	$	909,519	$	(4,369,349	)	$	(3,459,830	)
High Yield Fixed Income Portfolio		14,615,217		172,528		(1,119,408	)		(946,880	)
Intermediate Duration Fixed Income Portfolio		17,506,162		82,336		(717,122	)		(634,786	)
Growth Portfolio		69,983,120		14,085,129		(2,327,355	)		11,757,774
International Equity Portfolio		332,759,907		72,693,893		(26,511,532	)		46,182,361
Opportunity Portfolio		181,435,446		30,998,404		(14,190,834	)		16,807,570
Value Portfolio		68,683,585		13,285,531		(10,164,395	)		3,121,136


6.	Legal and Regulatory Matters:

	On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (“the SEC’’) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Funds’ management is currently unable to determine the impact, if any, of such matters on the Funds or the Funds’ financial statements, management does not anticipate a material, adverse impact to the Funds or the Funds’ financial statements.

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Notes to Financial Statements—as of April 30, 2008 (Unaudited) (continued)


7.	Subsequent Event for Sub-Adviser Change:

	Effective May 12, 2008, Winslow Capital Management Inc. (“Winslow”) serves as the Sub-Adviser to the Growth Portfolio.

	Effective May 12, 2008, the Investment Adviser and Winslow receives in aggregate, from the HSBC Investor Family of Funds, a fee, accrued daily and paid monthly, at an annual rate of:


	Based on Sub-Advised HSBC Investor Family of Funds Average Daily Net Assets of:		Fee Rate

	Up to $250 million		0.40%
	In excess of $250 million but not exceeding $500 million		0.35%
	In excess of $500 million but not exceeding $750 million		0.30%
	In excess of $750 million but not exceeding $1 billion		0.25%
	In excess $1 billion		0.20%


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Investment Adviser Contract Approval—as of April 30, 2008 (Unaudited)


	The Independent Trustees of the HSBC Investor Funds Trust, HSBC Advisor Funds Trust and HSBC Investor Portfolios (collectively, the “Trusts”), and the non-interested Trustees, voting separately, approved the renewal of the Investment Advisory Contracts and, where applicable Sub-Advisory Contracts, with respect to the respective series of the Trusts then existing (collectively, the “Existing Funds”) at an in-person meeting held on December 10, 2007. Also, at an in-person meeting held on April 1, 2008, The Independent Trustees reviewed and approved a new Investment Advisory Contract and Sub-Advisory Contract with respect to the HSBC Investor Growth Fund (the “Growth Fund”) (the Existing Funds and Growth Fund are collectively referred to as the “Funds” and the Investment Advisory Contracts and Sub-Advisory Contracts are collectively referred to as the “Agreements”).

	In determining whether it was appropriate to approve the Agreements for the Funds, The Independent Trustees requested information from the Adviser and the various Sub-Advisers that it believed to be reasonably necessary to reach its conclusion. In an Executive Session, the Independent Trustees carefully evaluated this information, and were advised by independent legal counsel with respect to their deliberations. Based on its review of the information requested and provided for each Fund, The Independent Trustees determined that the relevant Agreements were consistent with the best interests of the Funds and their shareholders, and enable the Funds to receive high quality services at a cost that is appropriate and reasonable. The Independent Trustees made these determinations on the basis of the following considerations, among others:

		Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees considered the nature, quality and extent of the investment advisory services provided by the Adviser (and, as applicable, the Sub-Advisers), in light of the high quality services provided to the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and the commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds, and each Fund’s historic performance. The Independent Trustees considered the historical performance and commitment of the Adviser to the successful operations of the Funds including the level of expenses of the Funds. With respect to the Equity Funds, The Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Independent Trustees also considered the use of expense limitation agreements in order to reduce the overall operating expenses of certain funds. The Independent Trustees also took note of the long term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. For the Fixed Income Funds, The Independent Trustees also considered the historical performance and experience of the management team in managing other accounts, and the reasonable expectation of achieving competitive performance for these Funds. The Independent Trustees also considered the extent to which the investment advisers had achieved economies of scale and the extent to which shareholders participated in those economies of scale.

		Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered short-term and long-term investment performance of each Fund over various periods of time as compared to a peer group of comparable funds. The Independent Trustees members took note of performance information for the one, three and five year periods and since inception as relevant. In addition The Independent Trustees compared expenses of each Fund to the expenses of its peers, noting that the expenses for each of the Funds compare favorably with industry averages for other funds of similar size.

		Costs of Services and Profits Realized by the Adviser. The Independent Trustees considered the Adviser’s overall profitability and costs and an analysis of the estimated profitability to the Adviser from its relationship with the Funds. The Independent Trustees considered that the advisory fees under the Agreements were within the range of those of similar funds, noting the high level of resource, expertise and experience that was provided to the Funds by the Adviser and Sub-Advisers. The Independent Trustees concluded that the combined advisory fees payable to the Adviser and each of the Fund’s Sub-Advisers are fair and reasonable in light of the services to be provided, the anticipated costs of these services, the profitability of the Adviser’s relationship with the Fund, and the comparability of the advisory fee to similar fees paid by comparable mutual funds.

		Other Relevant Considerations. The Independent Trustees also considered the overall high quality of the personnel, operations, financial condition, investment management capabilities, methodologies, and performance of the Adviser and Sub-Advisers. The Independent Trustees also noted the range of investment advisory and administrative services


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Investment Adviser Contract Approval—as of April 30, 2008 (Unaudited) (continued)


		provided by the Adviser to the Funds and the level and quality of these services, in particular the quality of the personnel providing these services. In addition, The Independent Trustees considered the overall favorable investment performance of the Funds.

	Accordingly, in light of the above considerations and such other factors and information it considered relevant, The Independent Trustees by a unanimous vote of those present in person at the meetings (including a separate vote of the Independent Trustees present in person at the meeting) approved the Agreements.


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Table of Shareholder Expenses (unaudited)—as of April 30, 2008


	As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds.

	These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2007 through April 30, 2008.

	Actual Example

	The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.


	Beginning Account Value 11/1/07		Ending Account Value 4/30/08		Expenses Paid During Period* 11/1/07 – 4/30/08		Annualized Expense Ratio During Period 11/1/07 – 4/30/08


Core Plus Fixed Income Portfolio	$	1,000.00	$	991.30	$	2.87	0.58	%
High Yield Fixed Income Portfolio		1,000.00		981.90		6.06	1.23	%
Intermediate Duration Fixed Income Portfolio		1,000.00		984.70		4.39	0.89	%
Growth Portfolio		1,000.00		916.70		2.86	0.60	%
International Equity Portfolio		1,000.00		892.10		3.67	0.78	%
Opportunity Portfolio		1,000.00		973.70		4.27	0.87	%
Value Portfolio		1,000.00		896.20		3.02	0.64	%



*	Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).


116	HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Table of Shareholder Expenses (unaudited)—as of April 30, 2008 (continued)

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


	Beginning Account Value 11/1/07		Ending Account Value 4/30/08		Expenses Paid During Period* 11/1/07 – 4/30/08		Annualized Expense Ratio During Period 11/1/07 – 4/30/08

Core Plus Fixed Income Portfolio	$	1,000.00	$	1,021.98	$	2.92		0.58	%
High Yield Fixed Income Portfolio		1,000.00		1,018.75		6.17		1.23	%
Intermediate Duration Fixed Income Portfolio		1,000.00		1,020.44		4.47		0.89	%
Growth Portfolio		1,000.00		1,021.88		3.02		0.60	%
International Equity Portfolio		1,000.00		1,020.98		3.92		0.78	%
Opportunity Portfolio		1,000.00		1,020.54		4.37		0.87	%
Value Portfolio		1,000.00		1,021.68		3.22		0.64	%


*	Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).


HSBC INVESTOR PORTFOLIOS	117

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities is available without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders or on the Fund’s website at www.investorfunds.us.hsbc.com and the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. A copy of the Fund’s voting record for the most recent 12 month period ending June 30 is available at the Commission’s website at http://www.sec.gov.

Schedules of Portfolio Investments for fiscal quarters ending January 31 and July 31 will be available no later than 60 days after each period end, without charge, on the Fund’s website at www.investorfunds.us.hsbc.com and on the Commission’s website at http://www.sec.gov.

An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.


118	HSBC INVESTOR PORTFOLIOS

[This Page Intentionally Left Blank]

HSBC INVESTOR FAMILY OF FUNDS:

INVESTMENT ADVISER AND ADMINISTRATOR
HSBC Investments (USA) Inc.
452 Fifth Avenue
New York, NY 10018
Effective June 2, 2008, changed name to HSBC Global Asset
Management (USA) Inc.

SUB-ADVISERS
HSBC Investor Growth Portfolio
Waddell & Reed Investment Management Company
6300 Lamar Avenue
Overland Park, KS 66202
Through May 12, 2008

HSBC Investor Growth Portfolio
Winslow Capital Management, Inc.
4720 IDS Tower
80th South Eighth Street
Minneapolis, MN 55402
Effective May 13, 2008

HSBC Growth and Income Fund
TransAmerica Investment Management, LLC
1150 S. Olive Street, Suite 2700
Los Angeles, CA 90015

HSBC Investor International Equity Portfolio
AllianceBernstein Investment Research and Management
1345 Avenue of the Americas, 39th Floor
New York, NY 10105

HSBC Investor Mid-Cap Fund
Munder Capital Management
Munder Capital Center
480 Pierce Street
Birmingham, MI 48009-6063

HSBC Investor Opportunity Portfolio
Westfield Capital Management, LLC
One Financial Center
Boston, MA 02111

HSBC Investor Value Portfolio
NWQ Investment Management Co., LLC
2049 Century Park East, 16th Floor
Los Angeles, CA 90067

SHAREHOLDER SERVICING AGENTS
For HSBC Bank USA, N.A. and
HSBC Securities (USA) Inc. Clients
HSBC Bank USA, N.A.
452 Fifth Avenue
New York, NY 10018
1-888-525-5757

For All Other Shareholders
HSBC Investor Funds
P.O. Box 182845
Columbus, OH 43218-2845
1-800-782-8183

TRANSFER AGENT AND SPONSOR
Citi Fund Services
3435 Stelzer Road
Columbus, OH 43219

DISTRIBUTOR
Foreside Distribution Services, L.P.
3435 Stelzer Road
Columbus, OH 43219

CUSTODIAN
HSBC Investor Core Plus Fixed Income Portfolio
HSBC Investor New York Tax-Free Bond Fund
HSBC Investor High Yield Fixed Income Portfolio
HSBC Investor Intermediate Duration Fixed Income
Portfolio
HSBC Investor Growth Portfolio
HSBC Investor Growth and Income Fund
HSBC Investor International Equity Portfolio
HSBC Investor Mid-Cap Fund
HSBC Investor Opportunity Portfolio
HSBC Investor Value Portfolio
The Northern Trust Company
50 South LaSalle Street
Chicago, IL 60603

INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
KPMG LLP
191 West Nationwide Blvd., Suite 500
Columbus, OH 43215

LEGAL COUNSEL
Dechert LLP
1775 I Street, N.W.
Washington, D.C. 20006

The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.

— NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE


HSB-0008	04/08

Item 2. Code of Ethics.

Not applicable – Only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable – Only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable – Only for annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Included as a part of the report to shareholders filed under Item 1.
(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable – Only effective for annual reports.

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)		HSBC ADVISOR FUNDS TRUST


By (Signature and Title)*		/s/Richard A. Fabietti
		Richard A. Fabietti
		President

Date July 2, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)*		/s/Richard A. Fabietti
		Richard A. Fabietti
		President

Date July 2, 2008




By (Signature and Title)*		/s/Troy A. Sheets
		Troy A. Sheets
		Treasurer

Date July 2, 2008
* Print the name and title of each signing officer under his or her signature.