N-CSRS

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, 2010

Item 1. Reports to Stockholders.

HSBC Global Asset Management (USA) Inc.

April 30, 2010

HSBC Investor Funds

Semi-Annual Report

EQUITY FUNDS

HSBC Investor Growth Fund

HSBC Investor Mid-Cap Fund

HSBC Investor Opportunity Fund

HSBC Investor Overseas Equity Fund/

HSBC Investor International Equity Fund

HSBC Investor Value Fund

Table of Contents

HSBC Investor Family of Funds
Semi-Annual Report - April 30, 2010

Glossary of Terms	3
Chairman’s Message	4
President’s Message	6
Commentary From the Investment Manager	7
Portfolio Reviews	8
Portfolio Composition	19
Schedule of Portfolio Investments
HSBC Investor Mid-Cap Fund	20
Statements of Assets and Liabilities	22
Statements of Operations	24
Statements of Changes in Net Assets	26
Financial Highlights	34
Notes to Financial Statements	41
Investment Adviser Contract Approval	50
Table of Shareholder Expenses	53
Other Information	55
HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Growth Portfolio	57
HSBC Investor International Equity Portfolio	58
HSBC Investor Opportunity Portfolio	61
HSBC Investor Value Portfolio	62
Statements of Assets and Liabilities	64
Statements of Operations	65
Statements of Changes in Net Assets	66
Financial Highlights	68
Notes to Financial Statements	69
Investment Adviser Contract Approval	76
Table of Shareholder Expenses	79
Other Information	80

(This Page Intentionally Left Blank)

Glossary of Terms

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

Barclays Capital U.S. Corporate High-Yield Bond Index is an unmanaged index that covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.

Lipper International Large-Cap Value Funds Average is an equally weighted average of 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 value funds typically have a below-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 equally weighted average of 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) above Lipper’s U.S. Diversified Equity large-cap floor. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an 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 Large-Cap Growth Funds Average is an equally weighted average of 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) above Lipper’s U.S. Diversified Equity large-cap floor. 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 equally weighted average of 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) below Lipper’s U.S. Diversified Equity large-cap floor. Mid-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 MidCap 400 Index.

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

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

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

Russell 2000^® Index is an unmanaged index which measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

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

Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”) is an unmanaged index that is the most widely used index for mid-sized companies. The S&P MidCap 400 covers over 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition.

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

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

HSBC INVESTOR FAMILY OF FUNDS 3

Chairman’s Message

June 3, 2010

To Our Shareholders:

Some calm prevailed in the U.S. financial markets in the first half of our current fiscal year. Signs of economic recovery, which included tentative upticks in consumer spending, housing, and continued very low interest rates soothed investors. After the tumult of the past two-plus years, this tranquility was most welcome. Then, however, the specter of sovereign defaults in the Southern Eurozone countries sparked a significant global sell-off in risk assets and a decline in the Euro, the countries’ common currency.

It reminded us again both of how inter-connected the world economy and markets truly are and of the importance of a global view even if one’s focus is largely on the U.S. market. One of your board’s most important duties is to monitor and analyze fund performance. We are immeasurably aided in this effort by the global MultiManager team of the Funds’ investment adviser, HSBC Global Asset Management (USA), Inc. With staff deployed around the world, they are equipped to assay events like those in the Eurozone area, to find and monitor superior managers, and to translate that into advantage for our fund offerings. In the section labeled “Finding the World’s Most Talented Investment Managers” we describe this valuable resource, which we believe significantly distinguishes our Funds from our competitors’.

Total assets in our Funds have declined slightly—a not-unexpected consequence of record low yields and investors’ somewhat renewed appetite for risk. Total assets declined to $24.9 billion at April 30, 2010, from $31.1 billion six months earlier, paced by a decline in our money market funds to $24.3 billion from $30.5 billion over the same period. Our investment advisor and service providers continue to waive a portion of their fees associated with the money market funds in order to limit expenses and maintain a competitive yield on these funds; these waivers amounted to approximately $13 million for the six months ended April 30, 2010.

Assets in our “long-term” funds, which include the HSBC World Selection Funds and the HSBC Investor equity funds, increased to $568.6 million as of April 30, 2010, from $521.0 million six months earlier. This increase reflects both shareholder activity and the change in value of the Funds’ investments. In general, the Funds performed very well. Of our five equity funds, three were in the top quartile of comparable funds, as measured by Lipper, Inc. for the five year period ended April 30, 2010. The four World Selection Funds converted from the previous LifeLine Funds with new asset allocation models and new underlying investments on January 19, 2010. Performance comparisons for the brief period of time from that date through April 30 are largely irrelevant, but all four funds posted positive returns for this brief period. More information on your funds’ performance is presented in the portfolio managers’ letters in this report.

Our annual report referred to the Jones v Harris Associates case that was then before the U.S. Supreme Court. We were pleased that in its ruling the Court essentially upheld the 25 year-old Gartenberg standard, which confirms the right of boards to set advisory fees.

In the regulatory area, the Securities and Exchange Commission (“SEC”) recently adopted several important amendments to Rule 2a-7, which governs money market funds. The changes, which relate in part to portfolio liquidity and increased transparency for investment holdings, are designed to help ensure that money market funds can meet redemption requirements, especially in a systemic crisis like that which afflicted The Reserve Fund in September 2008, causing it to “break the buck” and delay redemptions. The amendments also afford money market funds and their boards additional tools to help deal with such extraordinary circumstances. We are pleased to report that HSBC Global Asset Management, the investment advisor to the HSBC Investor money market funds, adopted internal investment policies that comply with the SEC’s new liquidity requirements in early 2009—well before they became law.

Also in the regulatory area, the SEC’s mutual fund chief has urged fund companies to consider enhancing their communications with shareholders, a directive we strongly support; we welcome shareholders’ input and suggestions on how we might do so. The SEC also has signaled its intent to review Rule 12b-1, which permits mutual funds to use a portion of their assets to promote sales of fund shares. We support this move and look forward to the Commission’s review.

4 HSBC INVESTOR FAMILY OF FUNDS

Chairman’s Message (continued)

The advisor’s Chief Executive Officer recently retired from HSBC Global Asset Management (USA) Inc. and the Funds’ board of trustees. In light of this development, the independent trustees in April decided to keep the board at its current composition of six independent members.

Those of us who have managed money ourselves and served as fund directors for many years, evaluating the performance of our advisor and sub-advisors, are constantly reminded of how very hard it is to sustain superior investment performance—and how important it is to assure that above average results are being obtained without undue risk.

We believe that we have a great team of investment professionals working on your behalf and pledge our very best effort in seeing that they do their best for you.

Cordially,

Michael Seely
Chairman, HSBC Investor Funds

Finding the World’s Most Talented Investment Managers

Investors are faced with numerous decisions and literally thousands of choices when building their investment portfolio. Allocating among asset classes, investing directly in a security or selecting to invest in a fund, and choosing the right investment manager(s) are just a few of the decisions investors have to make.

Successfully choosing among thousands of available investment managers is particularly challenging. It requires expertise, knowledge and continuous access to information. As a result, many investors are turning to professionals to select their investment managers, including their financial advisors and full-time “multimanager” research teams.

HSBC Multimanager

Multimanager investment professionals research and recommend asset management firms on a full-time basis. They typically analyze numerous important factors, such as philosophy, process, team tenure, risk profiles and performance in order to recommend sound, talented investment management firms and teams.

HSBC Multimanager, the dedicated team of specialists within HSBC Global Asset Management, advises the HSBC Investor Equity Funds and the HSBC World Selection Funds. This team is comprised of more than 50 investment professionals in 12 locations around the world*. The members of the Multimanager team focus on specific markets to identity optimal managers within globally diversified portfolios.

HSBC Multimanager evaluates each manager’s investment process and the way it is implemented, using both quantitative and qualitative criteria. They aim to select managers with clearly identifiable skills that give them an advantage over their peers. The team also seeks managers that complement each other in a diversified portfolio. Such managers come from a range of firms, including both global firms and specialist boutiques.

Investors may want to consider employing the full-time expertise of a multimanager program. The knowledge and expertise of a dedicated team of specialists - who continuously evaluate local and global managers - can be very powerful. We believe HSBC Multimanager can assist investors in evaluating and recommending investment managers in order to help achieve long-term investment objectives.

*As of March 2010

HSBC INVESTOR FAMILY OF FUNDS 5

President’s Message

Dear Shareholder,

Welcome to the HSBC Investor Funds semiannual report, covering the period between November 1, 2009 and April 30, 2010. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.

Inside these pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he describes developments in the Funds’ management and structure. The report also provides commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average.

We remain focused on providing value for shareholders. During this period we waived management and servicing fees on the HSBC Investor money market funds. This move enabled the funds to maintain positive yields for investors, despite the historically low level of short-term interest rates. Meanwhile, our Multimanager team continued to monitor the performance of the HSBC Investor equity funds’ sub-advisors and the underlying funds in the World Selection Funds. A description of our Multimanager team is also included as part of this report; we hope you find it to be of interest. We believe that Multimanager’s oversight has helped the Equity and World Selection Funds provide shareholders with competitive returns.

In closing, we would like to thank you for investing through the HSBC Investor Funds. We appreciate the trust you place in us, and will continue working to earn it. Please contact us at any time with questions or concerns.

Sincerely,

Richard A. Fabietti
President

6 HSBC INVESTOR FAMILY OF FUNDS

Commentary From the Investment Manager

HSBC Global Asset Management (USA) Inc.

U.S. Economic Review

The six-month period ended April 30, 2010 began in the midst of a global economic recovery. Aggressive fiscal and monetary stimulus by governments around the world prior to the period laid the groundwork for a rebound. Indeed, the Federal Reserve Board held the federal funds rate at a historically low target range between 0.00% to 0.25%, and maintained that level throughout the period. At the beginning of the six months under review, encouraging corporate earnings results and improving consumer-spending levels suggested the rebound was gaining steam.

The global economic recovery experienced some setbacks during the period, however, primarily because of events in overseas markets such as the United Arab Emirates and the European Union. In the U.A.E., a government-owned holding company involved in prominent real estate projects unexpectedly announced a restructuring of its debt, shaking investor confidence in the credit markets. Later in the period economic difficulties in Greece and certain other E.U. countries spread through Europe, dampening the prospects for recovery in Europe and around the world.

U.S. and international economic data improved as the period progressed. However, as April drew to a close, rising unemployment figures and weakening consumer spending in some international markets led to questions about the stability of the global economic recovery.

Market Review

The economic recovery helped fuel a rally in the financial markets that lasted through much of the six months under review.

Investors early in the period became increasingly comfortable with investing in higher-risk areas of the financial markets, helping to fuel strong performance among emerging markets and small-cap stocks. While small-cap stocks continued to perform well during the period, mounting economic troubles in European countries including Greece, Portugal, Ireland, Italy and Spain halted the rally in international stocks, and emerging-markets stocks in particular resulting in a 2.68% return for the MSCI Europe, Australasia and Far East (EAFE) Index¹.

During the period domestic stocks experienced much stronger returns. The S&P 500 Index¹ of large-company stocks returned 15.66%, while the Russell 2000^® Index¹ of small-company stocks returned 28.17%. Early in the period investors were drawn to relatively low stock-market valuations. Subsequently, increased optimism about the strength and breadth of the U.S. economic recovery and improving corporate earnings drove the market’s strong gains.

Among fixed-income securities, the low interest rate environment in the beginning of the period led investors to seek out the additional yield available on higher-risk securities such as corporate bonds. The pursuit of higher yields initially led to low demand for government bonds. Demand increased slightly as the period wore on, but Treasuries still lagged the rest of the fixed-income market for the six months as a whole, in part because of concerns that the U.S. government would have to issue a significant amount of debt to cover the rising federal deficit.

The Barclays Capital U.S. Aggregate Bond Index¹, which tracks the broad fixed-income market, returned 2.54% for the period, while the Barclays Capital U.S. Corporate High-Yield Bond Index¹ returned 11.70%.

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

HSBC INVESTOR FAMILY OF FUNDS 7

Portfolio Reviews

HSBC Investor Growth Fund

(Class A Shares, B Shares, C Shares and I Shares)
by Clark J. Winslow, Chief Executive Officer/Portfolio Manager
Justin H. Kelly, CFA, Senior Managing Director/Portfolio Manager
R. Bart Wear, CFA, Senior Managing Director/Portfolio Manager
Winslow Capital Management, Inc.

The HSBC Investor Growth Fund (the “Fund”) seeks long-term growth of capital. Under normal market conditions, the Fund invests primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion which the subadviser believes have the potential to generate superior levels of long-term profitability and growth. The Fund utilizes a two-tier structure, commonly known as a “master-feeder” structure, in which the Fund invests all of its investable assets in the HSBC Investor Growth Portfolio (the “Portfolio”). The Portfolio employs Winslow Capital Management, Inc. as subadviser.

Investment Concerns

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities.

The growth investment style may fall out of favor in the marketplace and result in significant declines in the value of the Portfolio’s securities. Securities of companies considered to be growth investments may have rapid price swings in the event of earnings disappointments or during periods of market, political, regulatory and economics uncertainty.

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 14.75% (without sales charge) for the Class A Shares and 14.94% for the Class I Shares for the six-month period ended April 30, 2010. That compared to a 15.79% return for the Russell 1000^® Growth Index¹ and a 14.72% return for the Lipper Large-Cap Growth Funds Average¹.

Portfolio Performance

Investor nervousness, including concerns over sovereign debt issues in Greece, caused a pullback in the broad market at the start of the year. However, the six-month period ended with strong gains, thanks to indicators pointing to continuing gradual improvement in the economic climate.

The Fund posted a strong absolute performance through the end of the period. The information technology sector made a particularly positive contribution to the Fund’s return, as did the consumer discretionary and industrial sectors. The financial and consumer staples sectors detracted from absolute performance. Nevertheless, the Fund’s position in one of the largest U.S. banks and a wireless technology manufacturer dragged on the Fund’s return.*

The Fund trailed its benchmark modestly during the period under review. Overweight positions in the financial and energy sectors weighed on performance relative to the benchmark.*

The Fund’s overweight position in information technology and an underweight position in consumer staples buoyed its relative performance. Stock selection in the IT sector also contributed positively to relative returns, in particular positions in shares of a major consumer electronics manufacturer and a travel services website. Selection in the materials sector boosted performance against the benchmark as well.*

*	Portfolio composition is subject to change.
1	For additional information, please refer to the Glossary of Terms.

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

8 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Growth Fund - As of April 30, 2010

Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)6
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
HSBC Investor Growth Fund Class A1	5/7/045	9.02	27.12	4.64	3.95		1.41	1.20
HSBC Investor Growth Fund Class B2	5/7/045	10.30	28.83	4.93	4.05		2.16	1.95
HSBC Investor Growth Fund Class C3	5/7/045	13.38	31.94	4.93	4.07		2.16	1.95
HSBC Investor Growth Fund Class I	5/7/045	14.94	34.26	5.98	5.10		1.16	0.95
Russell 1000® Growth Index4	—	15.79	38.16	4.05	3.30	7	N/A	N/A
Lipper Large-Cap Growth Funds Average4	—	14.72	34.84	3.40	3.05	7	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, 2010 through March 1, 2011.

During the fiscal periods ended October 31, 2008 and 2009, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of these payments, the returns for applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge maximum of 1.00%.
4	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 March 1, 2010.
7	Return for the period 5/6/04 to 4/30/10.

The Fund’s performance is measured against the Russell 1000^® Growth Index, an unmanaged index that measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. 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 9

Portfolio Reviews

HSBC Investor International Equity Fund

HSBC Investor Overseas Equity Fund

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

by Sharon Fay, CFA, Executive Vice President and CIO Global Value Equities

Kevin Simms, Co-CIO International Equities

Giulio Martini, Head Currency Team

Henry D’Auria, CFA, Co-CIO International Equities

AllianceBernstein L.P.

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. Under normal market conditions, each Fund invests at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. Each Fund 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 a “master-feeder” structure, in which the Funds invest all of their investable assets in the HSBC Investor International Equity Portfolio (the “Portfolio”). AllianceBernstein L.P., acting through the Bernstein Value Equities Unit (“AllianceBernstein”), serves as the subadviser to the Portfolio and manages its investments.

Investment Concerns

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

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities.

The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Market Commentary

For the six-month period ended April 30, 2010, the Class I Shares of the HSBC Investor International Equity Fund produced a 1.48% return and the Class A Shares of the HSBC Investor Overseas Equity Fund returned 0.95% (without sales charge). That compared to a total return of 2.68% and 2.95% for the Funds’ benchmark, the MSCI EAFE Index¹ and the Lipper International Large-Cap Value Funds Average¹, respectively.

Portfolio Performance

International markets’ modest gains masked the period’s up-and-down nature. The markets produced strong growth at the start of the period, which gave way to weakness at the beginning of 2010 due to concerns over sovereign debt issues in Greece. Investors’ worries about the stability of the European economy then abated, only to return in April. The result was an upward trend overall, marked by some significant declines.

Cyclical sectors helped the Fund’s absolute return. Capital equipment, consumer cyclical, technology and transportation stocks were solid performers for the six-month period. Consumer staples stocks also fared well—somewhat surprising, because this sector typically lags when cyclical stocks shine.*

The Fund’s sector positioning is a byproduct of bottom-up stock selection. The resulting sector selection caused most of the Fund’s underperformance, relative to its benchmark. Detractors to the Fund’s performance, for the period under review, included underweight positions in the capital equipment and resources sectors, along with an overweight position in telecommunications stocks. The Fund held a smaller position than the benchmark in the consumer staples sector, which also reduced relative returns.*

Regionally, a broadly overweight position in the euro zone, and particularly in European pharmaceuticals stocks, weighed on Fund performance. Underweight positions in Australia and Japan also hindered relative performance, due to currency appreciation in those countries.*

The Fund’s performance benefited from overweight positions in the technology and consumer cyclical sectors. Underweight stakes in the Greek and Spanish markets helped to improve the Fund’s return against its benchmark.*

Stock selection had a positive impact on relative return. In the capital equipment sector, shares of aircraft, automobile and truck manufacturers boosted performance. In the financial sector, regional banks in emerging markets improved relative return. Temporary staffing companies in the consumer cyclical sector also contributed positively to performance against the benchmark index.*

*	Portfolio composition is subject to change.
1	For additional information, please refer to the Glossary of Terms.

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

10 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor International Equity Fund

HSBC Investor Overseas Equity Fund - As of April 30, 2010

Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)5
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	10 Year	Gross	Net
HSBC Investor International Equity Fund Class I***	1/9/95	1.48	35.76	2.72	-0.20	0.97	0.97
HSBC Investor Overseas Equity Fund Class A1	8/26/96	-4.19	24.67	0.21	-1.56	2.52	1.85
HSBC Investor Overseas Equity Fund Class B2	1/6/98	-3.40	26.35	0.50	-1.52	3.27	2.60
HSBC Investor Overseas Equity Fund Class C3	11/4/98	-0.46	29.36	0.51	-1.81	3.27	2.60
MSCI EAFE Index4	—	2.68	35.02	4.34	2.05	N/A	N/A
Lipper International Large-Cap Value Funds Average4	—	2.95	33.19	2.89	3.56	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, 2010 through March 1, 2011 for the Overseas Equity Fund.

During the fiscal period ended October 31, 2007, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of this payment, the returns for applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
***	The Class I Shares are issued by HSBC Investor International Equity Fund, a series of HSBC Advisor Funds Trust.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge maximum of 1.00%.
4	For additional information, please refer to the Glossary of Terms.
5	Reflects the expense ratio as reported in the prospectus dated March 1, 2010.

The Fund’s performance is measured against the MSCI EAFE Index (Europe, Australasia, Far East), an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index currently consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. 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 11

Portfolio Reviews

HSBC Investor Mid-Cap Fund

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

by Tony Y. Dong, CFA, CIO and Lead Manager, Mid-Cap Team

Geoffrey A. Wilson, CFA, Co-CIO and Senior Portfolio Manager

Brian S. Matuszak, CFA, Senior Equity Analyst

Andy Y. Mui, CPA, Senior Equity Analyst

George L. Sanders II, Senior Equity Research Associate

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^® Index¹, or within the range of companies included in the Russell Midcap^® Index. The Fund employs Munder Capital Management (“Munder”) 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.

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 21.44% (without sales charge) and 21.71% for the Class I Shares for the six-month period ended April 30, 2010. That compared to 25.78% and 22.64% for the Fund’s benchmarks, the S&P MidCap 400 Index¹ and the Lipper Mid-Cap Growth Funds Average¹, respectively.

Portfolio Performance

Stocks rallied throughout the period as corporate earnings improved and investors sought the return potential of equities. Mid-cap stocks were among the period’s strongest performers, outpacing large-cap stocks and only marginally trailing small-cap stocks. That environment led to very strong absolute performance for the Fund. More than 80% of the Fund’s portfolio produced positive returns during the period, and more than 75% produced double-digit gains. Among the strongest-performing sectors were telecommunications, information technology and energy.*

Relative to its benchmark, the Fund benefited from overweight positions in the consumer discretionary, energy and utilities sectors. Increased consumer confidence and spending buoyed consumer stocks, while the broad economic rebound benefited energy and utilities shares. An underweight allocation to the health care sector, which underperformed the benchmark, also boosted relative return.*

Stock selection caused the greatest drag on performance. We believed that investors would become more discerning and favor higher-quality stocks during this period, but that did not occur among mid-cap stocks. Indeed, investors in the mid-cap arena favored lower-quality stocks. That trend dragged on relative performance, as we maintained our historical bias toward very high-quality stocks. Many of the best-performing stocks during this period did not meet our rigorous, fundamentals-based screening process, and therefore were not suitable candidates for inclusion within the portfolio.*

*	Portfolio composition is subject to change.
1	For additional information, please refer to the Glossary of Terms.

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

12 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Mid-Cap Fund - As of April 30, 2010

Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)5
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	10 Year†	Gross	Net
HSBC Investor Mid-Cap Fund Class A1	7/1/93	15.35	36.59	4.50	1.50	2.21	1.36
HSBC Investor Mid-Cap Fund Class B2	7/1/93	17.14	38.63	4.81	1.27	2.96	2.11
HSBC Investor Mid-Cap Fund Class C3	7/1/93	20.08	41.60	4.82	1.33	2.96	2.11
HSBC Investor Mid-Cap Fund Class I	7/1/93	21.71	44.13	5.83	2.26	1.96	1.11
S&P MidCap 400 Index4	—	25.78	48.92	6.89	6.84	N/A	N/A
Lipper Mid-Cap Growth Funds Average4	—	22.64	44.36	5.48	0.56	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, 2010 through March 1, 2011.

During the fiscal period ended October 31, 2009, the Fund received monies related to certain nonrecurring litigation settlements which enhanced performance. Without the receipt of this payment, the returns for applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
†	For periods prior to July 1, 2000, the performance shown above includes the total return (adjusted for Fund expenses) generated by HSBC Global Asset Management (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.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	For additional information, please refer to the Glossary of Terms.
5	Reflects the expense ratio as reported in the prospectus dated March 1, 2010.

The Fund’s performance is measured against the Standard & Poor’s MidCap 400 Index (“S&P MidCap 400”), an unmanaged index that is the most widely used index for mid-sized companies. The S&P MidCap 400 covers over 7% of the U.S. equities market, and is part of a series of S&P U.S. indices that can be used as building blocks for portfolio composition. 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 13

Portfolio Reviews

HSBC Investor Opportunity Fund

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

by Arthur J. Bauernfeind, Chairman

William A. Muggia, President, CEO and CIO

Matthew W. Strobeck, Partner

Ethan J. Meyers, Partner

Scott R. Emerman, Partner

Westfield Capital Management Company, L.P.

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 Fund 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.¹ The Fund may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Fund employs a two-tier structure, commonly referred to as “master-feeder” structure, in which the Fund invests all of its investable assets in the HSBC Investor Opportunity Portfolio (the “Portfolio”). The Portfolio employs Westfield Capital Management Company, L.P. 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.

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.

The growth investment style may fall out of favor in the marketplace and result in significant declines in the value of the Portfolio’s securities. Securities of companies considered to be growth investments may have rapid price swings in the event of earnings disappointments or during periods of market, political, regulatory and economics uncertainty.

Market Commentary

For the six-month period ended April 30, 2010, the Class I Shares of the HSBC Investor Opportunity Fund produced a 24.27% return, and the Class A Shares of the Fund produced a 23.94% return (without sales charge). The Fund’s benchmarks, the Russell 2500^™ Growth Index¹ and the Lipper Mid-Cap Growth Funds Average¹, returned 25.81% and 22.64%, respectively.

Portfolio Performance

Early in the period, investors appeared skeptical that the recent economic recovery would last. That skepticism gave way to optimism, as emerging evidence seemed to increase the likelihood of a sustained economic recovery. During the period consumer confidence was relatively strong and spending levels increased from their recent lows.

The stock market benefited from this environment, and several sectors posted very strong absolute returns for the six-month period. One top-performing sector was health care, which benefited as investors began to have a better picture of the direction that legislative health care reform would take. In absolute terms, strength in the stock market benefited the Fund’s performance during the six-month period.*

The Fund held a smaller position than its benchmark in the telecommunications services sector. The sector lagged the benchmark, so the Fund’s smaller stake boosted relative performance. Individual holdings in the telecommunications sector also benefited relative performance. The Fund’s industrial holdings also added to its relative performance due to strong stock selection.*

Despite the health care sector’s strong performance, certain health care stocks held by the Fund dragged on the Fund’s performance for the period. The Fund was also hurt by its underweight position in the consumer discretionary sector. We did not believe consumer stocks would perform well during the period, so we maintained a defensive position smaller than that of the Fund’s benchmark. However, the sector performed well, and the underweight position reduced the Fund’s relative return.*

*	Portfolio composition is subject to change.
1	For additional information, please refer to the Glossary of Terms.

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

14 HSBC INVESTOR FAMILY OF FUNDS

	Portfolio Reviews
HSBC Investor Opportunity Fund - As of April 30, 2010

Fund Performance			Average Annual Total Return (%)			Expense Ratio (%)5
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	10 Year	Gross	Net
HSBC Investor Opportunity Fund Class A1	9/23/96	17.71	40.90	8.74	3.48	2.30	1.65
HSBC Investor Opportunity Fund Class B2	1/6/98	19.39	42.92	9.03	3.54	3.05	2.40
HSBC Investor Opportunity Fund Class C3	11/4/98	22.57	46.16	9.05	3.23	3.05	2.40
HSBC Investor Opportunity Fund Class I***	9/3/96	24.27	49.03	10.23	4.51	1.02	1.02
Russell 2500™ Growth Index4	—	25.81	47.69	6.55	0.62	N/A	N/A
Lipper Mid-Cap Growth Funds Average4	—	22.64	44.36	5.48	0.56	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, 2010 through March 1, 2011.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
***	The Class I Shares are issued by a series of HSBC Advisor Funds Trust also named the HSBC Investor Opportunity Fund.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	For additional information, please refer to the Glossary of Terms.
5	Reflects the expense ratio as reported in the prospectus dated March 1, 2010.

The Fund’s performance is measured against the Russell 2500™ Growth Index, an unmanaged index that measures the performance of the small- to mid-cap growth segment of the U.S. equity universe. It includes those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. 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 15

Portfolio Reviews

HSBC Investor Value Fund

(Class A Shares, B Shares, C Shares and I Shares)
by Jon D. Bosse, CFA, Co-President and CIO
Craig (Chip) O. Bailey, Jr., Managing Director/Portfolio Manager
NWQ Investment Management Company, LLC

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

Investment Concerns

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

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities.

The net asset value per share of this Fund will fluctuate as the value of the securities in the Portfolio changes.

Market Commentary

The Fund returned 13.63% (without sales charge) for the Class A Shares and 13.79% for the Class I Shares for the six-month period ended April 30, 2010. That compared to a 17.77% return for the Russell 1000^® Value Index¹ and a 14.38% return for the Lipper Large-Cap Core Funds Average¹.

Portfolio Performance

The largest contributor to the Fund’s absolute performance was its exposure to financial services stocks. As concerns over the health of the U.S. and global financial system abated, the sector began to rally substantially. The Fund increased its weighting in that sector in early calendar-year 2009, and added further during this period. Previous positions and new investments in that sector positively contributed to the Fund’s performance.*

The Fund’s positions in the technology and healthcare sectors were significant detractors to the Fund’s performance during the period. Two of the Fund’s technology holdings appreciated, but gained much less than the market’s 17.8% increase. However, the third technology holding declined and adversely affected performance. Concerns over the company’s profitability and doubts about its ability to launch a new product successfully adversely affected the company’s valuation. We are confident in the long-term prospects of this company, and used the stock price weakness as an opportunity to add to the position.*

We believe investor concerns surrounding health care legislation adversely impacted the valuations of the Fund’s healthcare holdings. We took advantage of this weakness and added to the Fund’s positions*

*	Portfolio composition is subject to change.
1	For additional information, please refer to the Glossary of Terms.

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

16 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Value Fund - As of April 30, 2010

Fund Performance				Average Annual Total Return (%)				Expense Ratio (%)6
As of April 30, 2010	Inception Date		Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
HSBC Investor Value Fund Class A1	5/7/04	5	7.91	35.69	2.13	3.93		1.40	1.20
HSBC Investor Value Fund Class B2	5/7/04	5	9.19	37.76	2.40	4.03		2.15	1.95
HSBC Investor Value Fund Class C3	5/7/04	5	12.20	40.78	2.40	4.03		2.15	1.95
HSBC Investor Value Fund Class I	5/7/04	5	13.79	43.19	3.43	5.09		1.15	0.95
Russell 1000® Value Index4	—		17.77	42.28	1.93	3.76	7	N/A	N/A
Lipper Large-Cap Core Funds Average4	—		14.38	36.84	2.55	2.99	7	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, 2010 through March 1, 2011.

During the fiscal periods ended October 31, 2008 and 2009, the Portfolio in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for applicable periods would have been lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	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 March 1, 2010.
7	Return for the period 5/6/04 to 4/30/10.

The Fund’s performance is measured against the Russell 1000^® Value Index, an unmanaged index that measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. 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 17

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Portfolio Reviews

Portfolio Composition*

April 30, 2010

(Unaudited)

HSBC Investor Growth Portfolio
Investment Allocation	Percentage of Investments at Value
Information Technology	40.5	%
Industrials	13.0	%
Consumer Discretionary	10.5	%
Energy	9.0	%
Health Care	9.0	%
Financials	7.1	%
Consumer Staples	4.6	%
Materials	3.3	%
Cash and Equivalents	3.0	%
Total	100.0	%
HSBC International Equity Portfolio
Investment Allocation	Percentage of Investments at Value
Europe	61.4	%
Japan	23.4	%
Australia & Far East	9.5	%
Canada	4.2	%
Cash	1.0	%
Other	0.5	%
Total	100.0	%
HSBC Investor Mid-Cap Fund
Investment Allocation	Percentage of Investments at Value
Health Care	18.7	%
Financial Services	16.9	%
Utilities	14.7	%
Consumer Products	12.8	%
Computer Software	10.5	%
Computer Services	7.1	%
Insurance	6.0	%
Electronic Components & Semiconductors	4.8	%
Oil & Gas	3.4	%
Cash and Equivalents	2.8	%
Commercial Services	2.3	%
Total	100.0	%
HSBC Investor Opportunity Portfolio
Investment Allocation	Percentage of Investments at Value
Information Technology	22.3	%
Health Care	19.5	%
Consumer Discretionary	14.8	%
Industrials	14.1	%
Energy	11.7	%
Financials	4.8	%
Materials	4.5	%
Consumer Staples	3.4	%
Cash and Cash Equivalents	2.8	%
Telecommunication Services	2.1	%
Total	100.0	%
HSBC Investor Value Portfolio
Investment Allocation	Percentage of Investments at Value
Financials	21.3	%
Energy	17.0	%
Health Care	13.0	%
Industrials	10.3	%
Information Technology	10.1	%
Materials	8.4	%
Consumer Staples	7.8	%
Consumer Discretionary	4.8	%
Cash and Cash Equivalents	3.0	%
Telecommunication Services	2.7	%
Utilities	1.6	%
Total	100.0	%

* Portfolio composition is subject to change.

HSBC INVESTOR FAMILY OF FUNDS 19

HSBC INVESTOR MID - CAP FUND

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited)

Common Stocks—98.5%
	Shares		Value ($)
Consumer Discretionary – 18.9%
Aaron’s, Inc.		5,475		123,571
BorgWarner, Inc. (a)		7,750		335,885
CarMax, Inc. (a)		4,600		113,022
Chipotle Mexican Grill, Inc., Class A (a)		1,800		242,838
Choice Hotels International, Inc.		4,050		147,056
DeVry, Inc.		3,450		215,245
Discovery Communications, Inc., Class A (a)		2,450		94,815
Discovery Communications, Inc., Class C (a)		3,850		128,475
GameStop Corp., Class A (a)		10,075		244,923
Genuine Parts Co.		4,450		190,460
Guess?, Inc.		2,850		130,730
Liberty Media-Starz, Series A (a)		3,050		168,939
LKQ Corp. (a)		15,975		336,433
New Oriental Education & Technology Group, Inc. ADR (a)		1,950		182,461
O’Reilly Automotive, Inc. (a)		3,100		151,559
Regal Entertainment Group, Class A		10,850		185,318
Tiffany & Co.		2,500		121,200
Tupperware Brands Corp.		5,000		255,350
				3,368,280
Consumer Staples – 3.4%
Central European Distribution Corp. (a)		5,925		205,301
Church & Dwight Co., Inc.		3,300		228,525
J.M. Smucker Co. (The)		2,950		180,157
				613,983
Energy – 7.2%
Arena Resources, Inc. (a)		3,900		144,027
Atlas Energy, Inc. (a)		7,162		258,405
Atwood Oceanics, Inc. (a)		5,750		209,357
Core Laboratories N.V.		1,975		296,033
Denbury Resources, Inc. (a)		11,000		210,650
Southwestern Energy Co. (a)		4,300		170,624
				1,289,096
Financials – 17.2%
Affiliated Managers Group, Inc. (a)		3,100		260,958
Annaly Capital Management, Inc.		11,350		192,383
Axis Capital Holdings Ltd.		6,150		191,696
Corporate Office Properties Trust		3,950		159,778
Digital Realty Trust, Inc.		4,950		290,565
Eaton Vance Corp.		5,275		185,891
Essex Property Trust, Inc.		1,800		190,476
Fifth Third Bancorp		14,850		221,413
FirstMerit Corp.		10,000		235,000
Lincoln National Corp.		7,850		240,131
Macerich Co. (The)		4,842		216,486
MSCI, Inc., Class A (a)		6,950		240,817
Proassurance Corp. (a)		4,050		246,847
Signature Bank (a)		4,850		195,843
				3,068,284
Health Care – 10.7%
Amedisys, Inc. (a)		3,700		213,046
BioMarin Pharmaceuticals, Inc. (a)		11,050		258,238
Catalyst Health Solutions, Inc. (a)		4,500		190,395

Common Stocks, continued
	Shares		Value ($)
Health Care, continued
Coventry Health Care, Inc. (a)		400		9,496
DaVita, Inc. (a)		3,200		199,776
Haemonetics Corp. (a)		3,100		179,366
Intuitive Surgical, Inc. (a)		350		126,196
Laboratory Corp. of America Holdings (a)		2,375		186,604
Masimo Corp.		3,300		77,253
ResMed, Inc. (a)		4,300		294,249
West Pharmaceutical Services, Inc.		4,100		171,585
				1,906,204
Industrials – 12.9%
AGCO Corp. (a)		1,850		64,787
American Superconductor Corp. (a)		3,500		102,130
Eaton Corp.		1,550		119,598
Elbit Systems Ltd.		900		55,485
Flowserve Corp.		2,400		274,992
IHS, Inc., Class A (a)		4,500		228,015
ITT Corp.		3,100		172,267
Kansas City Southern (a)		5,800		235,190
L-3 Communications Holdings, Inc.		1,500		140,355
Precision Castparts Corp.		900		115,506
Shaw Group, Inc. (The) (a)		6,750		258,390
Stericycle, Inc. (a)		3,775		222,347
URS Corp. (a)		2,750		141,213
Valmont Industries, Inc.		2,200		183,238
				2,313,513
Information Technology – 14.9%
Akamai Technologies, Inc. (a)		3,700		143,671
ARM Holdings plc ADR		18,250		208,597
Check Point Software Technologies Ltd. (a)		3,700		131,794
Cognizant Technology Solutions Corp. (a)		5,675		290,446
Cree, Inc. (a)		3,400		248,914
FactSet Research Systems, Inc.		2,150		161,723
Fiserv, Inc. (a)		3,800		194,142
Itron, Inc. (a)		2,450		195,045
McAfee, Inc. (a)		3,850		133,788
Microchip Technology, Inc.		6,750		197,167
MICROS Systems, Inc. (a)		5,450		202,522
Solera Holdings, Inc.		5,700		221,559
Sybase, Inc. (a)		5,000		216,900
Teradata Corp. (a)		4,250		123,548
				2,669,816
Materials – 4.9%
Airgas, Inc.		3,900		247,455
Compass Minerals International, Inc.		2,350		176,979
Crown Holdings, Inc. (a)		9,700		252,200
Valspar Corp. (The)		6,350		198,882
				875,516
Telecommunication Services – 2.3%
American Tower Corp., Class A (a)		5,700		232,617
NII Holdings, Inc. (a)		4,200		178,164
				410,781

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

HSBC INVESTOR INVESTOR MID - CAP FUND

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued)

Common Stocks, continued
	Shares		Value ($)
Utilities – 6.1%
EQT Corp.		5,625		244,631
ITC Holdings Corp.		3,525		196,801
Northeast Utilities		9,125		253,584
NorthWestern Corp.		7,900		238,738
Portland General Electric Co.		7,550		150,094
				1,083,848
TOTAL COMMON STOCKS (COST $13,919,874)				17,599,321
Investment Companies—2.8%
Midcap SPDR Trust Series 1		310		46,231
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)		459,243		459,243
TOTAL INVESTMENT COMPANIES (COST $499,405)				505,474
TOTAL INVESTMENTS (COST $14,419,279) – 101.3%				18,104,795

	Percentages indicated are based on net assets of $17,874,202.
ADR  —	American Depositary Receipt
plc      —	Public Limited Company
SPDR —	Standard & Poor’s Depositary Receipt
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

See notes to financial statements. HSBC INVESTOR FAMILY OF FUNDS 21

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited)

	Growth Fund			International Equity Fund			Mid-Cap Fund			Opportunity Fund			Opportunity Fund (Advisor)
Assets:
Investments in Affiliated Portfolios	$	63,712,178		$	178,083,094		$	—		$	12,744,536		$	117,405,669
Investments in non-affiliates, at value		—			—			18,104,795			—			—
Dividends receivable		—			—			2,876			—			—
Receivable for capital shares issued		90,822			49,224			32,397			1,819			67,770
Receivable for investments sold		—			—			107,828			—			—
Reclaims receivable		—			768,969			—			—			—
Receivable from Investment Adviser		—			—			7,749			5,368			—
Prepaid expenses and other assets		10,620			9,238			5,418			8,581			2,055
Total Assets		63,813,620			178,910,525			18,261,063			12,760,304			117,475,494
Liabilities:
Payable for investments purchased		—			—			344,931			—			—
Payable for capital shares redeemed		105,334			127,589			9,317			9,274			22,338
Payable to Investment Adviser		490			—			—			—			—
Accrued expenses and other liabilities:
Investment Management		—			—			10,928			—			—
Administration		1,021			2,948			559			202			1,882
Distribution		1,097			—			843			710			—
Shareholder Servicing		3,855			—			1,349			2,632			—
Compliance Services		14			43			—			1			16
Custodian		—			—			3,112			—			—
Transfer Agent		13,090			5,733			10,784			11,800			2,839
Trustee		51			193			13			11			83
Other		16,930			86,395			5,025			2,612			38,373
Total Liabilities		141,882			222,901			386,861			27,242			65,531
Net Assets	$	63,671,738		$	178,687,624		$	17,874,202		$	12,733,062		$	117,409,963
Composition of Net Assets:
Capital	$	60,758,719		$	246,062,540		$	17,435,431		$	11,653,621		$	105,933,500
Accumulated net investment income (loss)		(122,704	)		535,144			116			(70,263	)		(295,439	)
Accumulated net realized gains (losses) from investment and foreign currency transactions		(6,738,699	)		(62,743,908	)		(3,246,861	)		(797,072	)		(6,175,526	)
Unrealized appreciation/depreciation from investments and foreign currencies		9,774,422			(5,166,152	)		3,685,516			1,946,776			17,947,428
Net Assets	$	63,671,738		$	178,687,624		$	17,874,202		$	12,733,062		$	117,409,963
Net Assets:
Class A Shares	$	16,594,715		$	—		$	5,225,153		$	11,607,029		$	—
Class B Shares		1,516,380			—			1,328,664			799,943			—
Class C Shares		152,952			—			15,506			326,090			—
Class I Shares		45,407,691			178,687,624			11,304,879			—			117,409,963
Total	$	63,671,738		$	178,687,624		$	17,874,202		$	12,733,062		$	117,409,963
Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,152,952			—			758,029			1,239,322			—
Class B Shares		114,229			—			214,733			101,720			—
Class C Shares		11,450			—			2,477			40,661			—
Class I Shares		3,122,564			14,699,839			1,594,152			—			9,514,781
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	14.39		$	—		$	6.89		$	9.37		$	—
Class B Shares(a)	$	13.27		$	—		$	6.19		$	7.86		$	—
Class C Shares(a)	$	13.36		$	—		$	6.26		$	8.02		$	—
Class I Shares	$	14.54		$	12.16		$	7.09		$	—		$	12.34
Maximum Sales Charge – Class A Shares		5.00	%		—	%		5.00	%		5.00	%		—	%
Maximum Offering Price per share (Net Asset Value/(100%-maximum sales charge))—Class A Shares	$	15.15		$	—		$	7.25		$	9.86		$	—
Total Investments, at cost							$	14,419,279

(a) Redemption Price per share varies by length of time shares are held.

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited) (continued)

	Overseas Equity Fund			Value Fund
Assets:
Investments in Affiliated Portfolios	$	6,260,482		$	32,934,431
Receivable for capital shares issued		4,311			73,247
Reclaims receivable		46,354			—
Receivable from Investment Adviser		5,486			3,246
Prepaid expenses and other assets		9,436			9,616
Total Assets		6,326,069			33,020,540
Liabilities:
Payable for capital shares redeemed		11,589			124,567
Accrued expenses and other liabilities:
Administration		104			523
Distribution		498			260
Shareholder Servicing		1,359			2,786
Compliance Service		6			68
Transfer Agent		8,969			11,950
Trustee		8			24
Other		1,931			9,123
Total Liabilities		24,464			149,301
Net Assets	$	6,301,605		$	32,871,239
Composition of Net Assets:
Capital	$	8,939,411		$	37,276,146
Accumulated net investment income		3,018			14,104
Accumulated net realized gains (losses) from investment and foreign currency transactions		(2,456,823	)		(6,028,855	)
Unrealized appreciation/depreciation from investments and foreign currencies		(184,001	)		1,609,844
Net Assets	$	6,301,605		$	32,871,239
Net Assets:
Class A Shares	$	5,557,788		$	12,853,920
Class B Shares		688,077			324,006
Class C Shares		55,740			79,746
Class I Shares		—			19,613,567
Total	$	6,301,605		$	32,871,239
Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,365,363			1,073,038
Class B Shares		192,558			28,390
Class C Shares		14,394			6,940
Class I Shares		—			1,640,000
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	4.07		$	11.98
Class B Shares (a)	$	3.57		$	11.41
Class C Shares (a)	$	3.87		$	11.49
Class I Shares	$	—		$	11.96
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	$	4.28		$	12.61

(a) Redemption Price per share varies by length of time shares are held.

See notes to financial statements. HSBC INVESTOR FAMILY OF FUNDS 23

HSBC INVESTOR FAMILY OF FUNDS

Statements of Operations—For the six months ended April 30, 2010 (Unaudited)

	Growth Fund			International Equity Fund			Mid-Cap Fund			Opportunity Fund			Opportunity Fund (Advisor)
Investment Income:
Dividends	$	—		$	—		$	98,859		$	—		$	—
Investment Income from Affiliated Portfolios (a)		196,523			2,041,984			—			26,372			244,178
Tax reclaims from Affiliated Portfolios (a)		—			(18,605	)		—			—			—
Foreign tax withholding from Affiliated Portfolios (a)		—			(184,458	)		—			—			—
Expenses from Affiliated Portfolios (a)		(202,767	)		(775,590	)		—			(52,075	)		(482,120	)
Total Investment Income (Loss)		(6,244	)		1,063,331			98,859			(25,703	)		(237,942	)
Expenses:
Investment Management		—			—			58,139			—			—
Administration:
Class A Shares		1,603			17,940			917			1,048			10,837
Class B Shares		188			—			291			93			—
Class C Shares		14			—			4			30			—
Class I Shares		4,170			—			1,836			—			—
Distribution:
Class B Shares		7,133			—			5,538			3,502			—
Class C Shares		534			—			53			1,131			—
Shareholder Servicing:
Class A Shares		20,286			—			5,819			10,947			—
Class B Shares		2,377			—			1,846			1,167			—
Class C Shares		178			—			18			377			—
Accounting		11,872			4,465			28,580			9,428			4,465
Compliance Services		126			387			65			23			222
Custodian		—			—			3,238			—			—
Printing		9,852			15,602			2,484			1,917			16,163
Professional		2,001			3,566			1,525			1,344			2,577
Transfer Agent		40,109			17,189			32,072			31,586			19,203
Trustee		380			1,143			196			73			659
Registration fees		15,982			2,322			3,382			14,056			760
Other		1,639			3,975			818			293			2,611
Total expenses before fee reductions		118,444			66,589			146,821			77,015			57,497
Fees reimbursed by Investment Adviser		(1,984	)		—			(48,078	)		(32,455	)		—
Net Expenses		116,460			66,589			98,743			44,560			57,497
Net Investment Income (Loss)		(122,704	)		996,742			116			(70,263	)		(295,439	)
Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investments and foreign currency transactions		2,825,276			(2,712,014	)		433,391			774,259			6,974,558
Change in unrealized appreciation/depreciation from investments and foreign currencies		5,648,255			4,738,328			2,512,609			1,833,704			17,120,665
Net realized/unrealized gains from investments and foreign currency transactions		8,473,531			2,026,314			2,946,000			2,607,963			24,095,223
Change In Net Assets Resulting From Operations	$	8,350,827		$	3,023,056		$	2,946,116		$	2,537,700		$	23,799,784

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

24 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, 2010 (Unaudited) (continued)

	Overseas Equity Fund			Value Fund
Investment Income:
Investment Income from Affiliated Portfolios (a)	$	74,672		$	239,131
Tax reclaims from Affiliated Portfolios (a)		(4,828	)		—
Foreign tax withholding from Affiliated Portfolios (a)		(6,693	)		(948	)
Expenses from Affiliated Portfolios (a)		(28,344	)		(103,542	)
Total Investment Income (Loss)		34,807			134,641
Expenses:
Administration:
Class A Shares		569			1,257
Class B Shares		85			39
Class C Shares		4			8
Class I Shares		—			1,791
Distribution:
Class B Shares		3,209			1,488
Class C Shares		219			285
Shareholder Servicing:
Class A Shares		7,176			15,863
Class B Shares		1,070			496
Class C Shares		73			95
Accounting		9,428			11,903
Compliance Services		18			72
Printing		1,150			5,130
Professional		1,275			1,611
Transfer Agent		24,186			32,071
Trustee		45			198
Registration fees		12,835			7,858
Other		246			826
Total expenses before fee reductions		61,588			80,991
Fees reduced by Investment Adviser		(29,799	)		(16,741	)
Net Expenses		31,789			64,250
Net Investment Income (Loss)		3,018			70,391
Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized losses from investments and foreign currency transactions		(61,118	)		(204,452	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		146,640			4,169,646
Net realized/unrealized gains from investments and foreign currency transactions		85,522			3,965,194
Change In Net Assets Resulting From Operations	$	88,540		$	4,035,585

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

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets

	Growth Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	(122,704	)	$	(106,102	)
Net realized gains (losses) from investments transactions		2,825,276			(9,717,237	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		5,648,255			18,612,853
Change in net assets resulting from operations		8,350,827			8,789,514
Dividends:
Net realized gains:
Change in net assets resulting from capital transactions		(2,154,257	)		(10,272,668	)
Change in net assets		6,196,570			(1,483,154	)
Net Assets:
Beginning of period		57,475,168			58,958,322
End of period	$	63,671,738		$	57,475,168
Accumulated net investment income (loss)	$	(122,704	)	$	—

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)

	Growth Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,017,783		$	1,225,814
Value of shares redeemed		(2,586,160	)		(5,063,199	)
Class A Shares capital transactions		(1,568,377	)		(3,837,385	)
Class B Shares:
Proceeds from shares issued		24,735			66,339
Value of shares redeemed		(839,301	)		(1,164,836	)
Class B Shares capital transactions		(814,566	)		(1,098,497	)
Class C Shares:
Proceeds from shares issued		14,602			36,704
Value of shares redeemed		(49	)		(5,976	)
Class C Shares capital transactions		14,553			30,728
Class I Shares:
Proceeds from shares issued		5,030,377			4,547,877
Value of shares redeemed		(4,816,244	)		(9,915,391	)
Class I Shares capital transactions		214,133			(5,367,514	)
Change in net assets resulting from capital transactions	$	(2,154,257	)	$	(10,272,668	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		72,744			112,735
Redeemed		(187,780	)		(472,708	)
Change in Class A Shares		(115,036	)		(359,973	)
Class B Shares:
Issued		1,938			6,818
Redeemed		(65,181	)		(117,668	)
Change in Class B Shares		(63,243	)		(110,850	)
Class C Shares:
Issued		1,156			3,677
Redeemed		(4	)		(631	)
Change in Class C Shares		1,152			3,046
Class I Shares:
Issued		357,063			418,087
Redeemed		(349,129	)		(961,622	)
Change in Class I Shares		7,934			(543,535	)

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

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, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	996,742		$	3,354,935		$	116		$	37,965
Net realized gains (losses) from investments transactions		(2,712,014	)		(59,981,220	)		433,391			(3,509,959	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		4,738,328			90,089,864			2,512,609			5,026,011
Change in net assets resulting from operations		3,023,056			33,463,579			2,946,116			1,554,017
Dividends:
Net investment income:
Class A Shares		—			—			(5,190	)		—
Class I Shares		(2,826,752	)		(7,354,738	)		(32,775	)		—
Net realized gains:
Class A Shares		—			—			—			(294,264	)
Class B Shares		—			—			—			(174,161	)
Class C Shares		—			—			—			(1,041	)
Class I Shares		—			(8,461,420	)		—			(681,038	)
Change in net assets resulting from shareholder dividends		(2,826,752	)		(15,816,158	)		(37,965	)		(1,150,504	)
Change in net assets resulting from capital transactions		(1,750,822	)		1,541,373			1,761,746			(3,850,002	)
Change in net assets		(1,554,518	)		19,188,794			4,669,897			(3,446,489	)
Net Assets:
Beginning of period		180,242,142			161,053,348			13,204,305			16,650,794
End of period	$	178,687,624		$	180,242,142		$	17,874,202		$	13,204,305
Accumulated net investment income (loss)	$	535,144		$	2,365,154		$	116		$	37,965

28 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, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	—		$	—		$	486,489		$	566,784
Dividends reinvested		—			—			5,110			290,977
Value of shares redeemed		—			—			(358,259	)		(541,791	)
Class A Shares capital transactions		—			—			133,340			315,970
Class B Shares:
Proceeds from shares issued		—			—			30,059			82,819
Dividends reinvested		—			—			—			169,310
Value of shares redeemed		—			—			(559,265	)		(686,734	)
Class B Shares capital transactions		—			—			(529,206	)		(434,605	)
Class C Shares:
Proceeds from shares issued		—			—			—			11
Dividends reinvested		—			—			—			1,041
Value of shares redeemed		—			—			—			(508	)
Class C Shares capital transactions		—			—			—			544
Class I Shares:
Proceeds from shares issued		13,682,822			26,914,666			3,278,971			341,422
Dividends reinvested		2,134,231			11,845,280			21,153			462,791
Value of shares redeemed		(17,567,875	)		(37,218,573	)		(1,142,512	)		(4,536,124	)
Class I Shares capital transactions		(1,750,822	)		1,541,373			2,157,612			(3,731,911	)
Change in net assets resulting from capital transactions	$	(1,750,822	)	$	1,541,373		$	1,761,746		$	(3,850,002	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		—			—			76,538			116,639
Reinvested		—			—			830			65,535
Redeemed		—			—			(56,333	)		(111,962	)
Change in Class A Shares		—			—			21,035			70,212
Class B Shares:
Issued		—			—			5,092			18,945
Reinvested		—			—			—			42,117
Redeemed		—			—			(98,139	)		(154,800	)
Change in Class B Shares		—			—			(93,047	)		(93,738	)
Class C Shares:
Reinvested		—			—			—			256
Redeemed		—			—			—			(138	)
Change in Class C Shares		—			—			—			118
Class I Shares:
Issued		1,109,648			2,374,315			498,632			70,062
Reinvested		173,656			1,323,495			3,342			101,267
Redeemed		(1,410,087	)		(3,874,180	)		(177,307	)		(911,670	)
Change in Class I Shares		(126,783	)		(176,370	)		324,667			(740,341	)

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)

	Opportunity Fund						Opportunity Fund (Advisor)
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	(70,263	)	$	(112,648	)	$	(295,439	)	$	(434,015	)
Net realized gains (losses) from investments transactions		774,259			(1,474,598	)		6,974,558			(12,341,854	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		1,833,704			2,899,270			17,120,665			24,564,409
Change in net assets resulting from operations		2,537,700			1,312,024			23,799,784			11,788,540
Dividends:
Net realized gains:
Class A Shares		—			(539,992	)		—			—
Class B Shares		—			(107,053	)		—			—
Class C Shares		—			(13,420	)		—			—
Class I Shares		—			—			—			(2,746,629	)
Change in net assets resulting from shareholder dividends		—			(660,465	)		—			(2,746,629	)
Change in net assets resulting from capital transactions		(841,068	)		(981,801	)		(6,675,120	)		(6,597,185	)
Change in net assets		1,696,632			(330,242	)		17,124,664			2,444,726
Net Assets:
Beginning of period		11,036,430			11,366,672			100,285,299			97,840,573
End of period	$	12,733,062		$	11,036,430		$	117,409,963		$	100,285,299
Accumulated net investment income (loss)	$	(70,263	)	$	—		$	(295,439	)	$	—

30 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, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	667,361		$	1,180,248		$	—		$	—
Dividends reinvested		—			537,467			—			—
Value of shares redeemed		(1,018,937	)		(2,263,523	)		—			—
Class A Shares capital transactions		(351,576	)		(545,808	)		—			—
Class B Shares:
Proceeds from shares issued		35,911			66,965			—			—
Dividends reinvested		—			106,455			—			—
Value of shares redeemed		(521,176	)		(667,369	)		—			—
Class B Shares capital transactions		(485,265	)		(493,949	)		—			—
Class C Shares:
Proceeds from shares issued		3,500			54,586			—			—
Dividends reinvested		—			13,420			—			—
Value of shares redeemed		(7,727	)		(10,050	)		—			—
Class C Shares capital transactions		(4,227	)		57,956			—			—
Class I Shares:
Proceeds from shares issued		—			—			6,325,221			9,048,783
Dividends reinvested		—			—			—			2,020,969
Value of shares redeemed		—			—			(13,000,341	)		(17,666,937	)
Advisor Shares capital transactions		—			—			(6,675,120	)		(6,597,185	)
Change in net assets resulting from capital transactions	$	(841,068	)	$	(981,801	)	$	(6,675,120	)	$	(6,597,185	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		77,147			173,171			—			—
Reinvested		—			95,805			—			—
Redeemed		(119,906	)		(340,092	)		—			—
Change in Class A Shares		(42,759	)		(71,116	)		—			—
Class B Shares:
Issued		4,824			12,358			—			—
Reinvested		—			22,363			—			—
Redeemed		(73,050	)		(123,288	)		—			—
Change in Class B Shares		(68,226	)		(88,567	)		—			—
Class C Shares:
Issued		510			9,847			—			—
Reinvested		—			2,768			—			—
Redeemed		(980	)		(1,959	)		—			—
Change in Class C Shares		(470	)		10,656			—			—
Class I Shares:
Issued		—			—			560,900			1,063,736
Reinvested		—			—			—			275,712
Redeemed		—			—			(1,148,334	)		(2,220,201	)
Change in Advisor Shares		—			—			(587,434	)		(880,753	)

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)

	Overseas Equity Fund						Value Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the sixmonths ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	3,018		$	96,154		$	70,391		$	294,429
Net realized gains (losses) from investments transactions		(61,118	)		(2,354,316	)		(204,452	)		(1,353,212	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		146,640			3,553,124			4,169,646			5,610,790
Change in net assets resulting from operations		88,540			1,294,962			4,035,585			4,552,007
Dividends:
Net investment income:
Class A Shares		(97,964	)		(374,072	)		(21,112	)		(155,138	)
Class B Shares		(10,236	)		(62,669	)		—			(2,255	)
Class C Shares		(616	)		(2,972	)		—			(298	)
Class I Shares		—			—			(50,023	)		(232,742	)
Net realized gains:
Class A Shares		—			(2,912,698	)		—			—
Class B Shares		—			(617,230	)		—			—
Class C Shares		—			(28,817	)		—			—
Change in net assets resulting from shareholder dividends		(108,816	)		(3,998,458	)		(71,135	)		(390,433	)
Change in net assets resulting from capital transactions		(636,647	)		1,710,202			(1,109,742	)		(7,588,940	)
Change in net assets		(656,923	)		(993,294	)		2,854,708			(3,427,366	)
Net Assets:
Beginning of period		6,958,528			7,951,822			30,016,531			33,443,897
End of period	$	6,301,605		$	6,958,528		$	32,871,239		$	30,016,531
Accumulated net investment income (loss)	$	3,018		$	108,816		$	14,104		$	14,848

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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)

	Overseas Equity Fund						Value Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	385,780		$	405,226		$	440,327		$	493,761
Dividends reinvested		97,142			3,262,709			20,936			154,141
Value of shares redeemed		(841,006	)		(2,210,404	)		(1,985,782	)		(4,681,860	)
Class A Shares capital transactions		(358,084	)		1,457,531			(1,524,519	)		(4,033,958	)
Class B Shares:
Proceeds from shares issued		7,495			33,259			5,897			13,994
Dividends reinvested		10,191			667,369			—			2,250
Value of shares redeemed		(294,363	)		(468,176	)		(200,762	)		(336,758	)
Class B Shares capital transactions		(276,677	)		232,452			(194,865	)		(320,514	)
Class C Shares:
Dividends reinvested		616			31,789			—			298
Value of shares redeemed		(2,502	)		(11,570	)		(850	)		(5,546	)
Class C Shares capital transactions		(1,886	)		20,219			(850	)		(5,248	)
Class I Shares:
Proceeds from shares issued		—			—			2,505,176			2,374,352
Dividends reinvested		—			—			45,028			209,767
Value of shares redeemed		—			—			(1,939,712	)		(5,813,339	)
Class I Shares capital transactions		—			—			610,492			(3,229,220	)
Change in net assets resulting from capital transactions	$	(636,647	)	$	1,710,202		$	(1,109,742	)	$	(7,588,940	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		92,782			108,012			38,523			53,511
Reinvested		23,521			1,049,103			1,853			17,816
Redeemed		(200,928	)		(553,300	)		(174,310	)		(529,179	)
Change in Class A Shares		(84,625	)		603,815			(133,934	)		(457,852	)
Class B Shares:
Issued		2,169			8,391			552			1,659
Reinvested		2,807			243,565			—			274
Redeemed		(80,279	)		(153,763	)		(18,396	)		(39,815	)
Change in Class B Shares		(75,303	)		98,193			(17,844	)		(37,882	)
Class C Shares:
Reinvested		156			10,703			—			36
Redeemed		(639	)		(3,505	)		(80	)		(751	)
Change in Class C Shares		(483	)		7,198			(80	)		(715	)
Class I Shares:
Issued		—			—			218,140			249,723
Reinvested		—			—			3,995			24,319
Redeemed		—			—			(170,221	)		(677,423	)
Change in Class I Shares		—			—			51,914			(403,381	)

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

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		Net Asset Value, End of Period
CLASS A SHARES
Year Ended October 31, 2005		$	12.55	0.03		1.59		1.62		(0.05	)	—		(0.05	)		$	14.12
Year Ended October 31, 2006			14.12	(0.02	)*	0.99		0.97		—		(0.23	)	(0.23	)			14.86
Year Ended October 31, 2007			14.86	—	*(f)	4.23		4.23		(0.01	)	(1.13	)	(1.14	)			17.95
Year Ended October 31, 2008			17.95	(0.05	)*	(6.51	)	(6.56	)	—		(0.84	)	(0.84	)			10.55
Year Ended October 31, 2009			10.55	(0.04	)*	2.03		1.99		—		—		—				12.54
Six Months Ended April 30, 2010 (Unaudited)			12.54	(0.04	)*	1.89		1.85		—		—		—				14.39
CLASS B SHARES
Year Ended October 31, 2005		$	12.11	(0.07	)	1.53		1.46		—		—		—			$	13.57
Year Ended October 31, 2006			13.57	(0.12	)*	0.95		0.83		—		(0.23	)	(0.23	)			14.17
Year Ended October 31, 2007			14.17	(0.11	)*	3.99		3.88		—		(1.13	)	(1.13	)			16.92
Year Ended October 31, 2008			16.92	(0.16	)*	(6.07	)	(6.23	)	—		(0.84	)	(0.84	)			9.85
Year Ended October 31, 2009			9.85	(0.10	)*	1.85		1.75		—		—		—				11.60
Six Months Ended April 30, 2010 (Unaudited)			11.61	(0.08	)*	1.74		1.66		—		—		—				13.27
CLASS C SHARES
Year Ended October 31, 2005		$	12.17	(0.07	)	1.54		1.47		—		—		—			$	13.64
Year Ended October 31, 2006			13.64	(0.16	)*	0.99		0.83		—		(0.23	)	(0.23	)			14.24
Year Ended October 31, 2007			14.24	(0.11	)*	4.02		3.91		—		(1.13	)	(1.13	)			17.02
Year Ended October 31, 2008			17.02	(0.16	)*	(6.11	)	(6.27	)	—		(0.84	)	(0.84	)			9.91
Year Ended October 31, 2009			9.91	(0.12	)*	1.89		1.77		—		—		—				11.68
Six Months Ended April 30, 2010 (Unaudited)			11.68	(0.08	)*	1.76		1.68		—		—		—				13.36
CLASS I SHARES
Year Ended October 31, 2005		$	12.55	0.06		1.59		1.65		(0.08	)	—		(0.08	)		$	14.12
Year Ended October 31, 2006			14.12	0.02	*	0.99		1.01		—		(0.23	)	(0.23	)			14.90
Year Ended October 31, 2007			14.90	0.03	*	4.24		4.27		(0.02	)	(1.13	)	(1.15	)			18.02
Year Ended October 31, 2008			18.02	(0.02	)*	(6.54	)	(6.56	)	—		(0.84	)	(0.84	)			10.62
Year Ended October 31, 2009			10.62	(0.01	)*	2.04		2.03		—		—		—				12.65
Six Months Ended April 30, 2010 (Unaudited)			12.65	(0.02	)*	1.91		1.89		—		—		—				14.54

			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(b)(e)
CLASS A SHARES
Year Ended October 31, 2005	12.91	%(g)		$	21,866	1.15	%(g)	0.19	%(g)	1.35	%	79.54	%
Year Ended October 31, 2006	6.92	%			21,985	1.20	%	(0.14	)%	1.44	%	75.06	%
Year Ended October 31, 2007	30.45	%(h)			30,858	1.11	%(h)	(0.03	)%(h)	1.22	%	57.04	%
Year Ended October 31, 2008	(38.23	)%(i)			17,180	1.20	%	(0.36	)%	1.22	%	157.87	%
Year Ended October 31, 2009	18.86	%(j)			15,896	1.20	%	(0.33	)%	1.31	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	14.75	%			16,595	1.20	%	(0.55	)%	1.21	%	42.87	%
CLASS B SHARES
Year Ended October 31, 2005	12.06	%(g)		$	1,317	1.90	%(g)	(0.48	)%(g)	2.09	%	79.54	%
Year Ended October 31, 2006	6.16	%			1,446	1.95	%	(0.88	)%	2.19	%	75.06	%
Year Ended October 31, 2007	29.43	%(h)			1,630	1.86	%(h)	(0.78	)%(h)	1.98	%	57.04	%
Year Ended October 31, 2008	(38.62	)%(i)			2,839	1.95	%	(1.20	)%	1.96	%	157.87	%
Year Ended October 31, 2009	17.87	%(j)			2,059	1.95	%	(1.06	)%	2.06	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	14.30	%			1,516	1.95	%	(1.29	)%	1.96	%	42.87	%
CLASS C SHARES
Year Ended October 31, 2005	12.08	%(g)		$	344	1.90	%(g)	(0.51	)%(g)	2.10	%	79.54	%
Year Ended October 31, 2006	6.13	%			270	1.95	%	(0.89	)%	2.18	%	75.06	%
Year Ended October 31, 2007	29.49	%(h)			98	1.86	%(h)	(0.79	)%(h)	1.96	%	57.04	%
Year Ended October 31, 2008	(38.63	)%(i)			72	1.95	%	(1.13	)%	1.97	%	157.87	%
Year Ended October 31, 2009	17.86	%(j)			120	1.95	%	(1.12	)%	2.05	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	14.38	%			153	1.95	%	(1.31	)%	1.96	%	42.87	%
CLASS I SHARES
Year Ended October 31, 2005	13.17	%(g)		$	13,107	0.90	%(g)	0.56	%(g)	1.07	%	79.54	%
Year Ended October 31, 2006	7.21	%			15,042	0.95	%	0.12	%	1.19	%	75.06	%
Year Ended October 31, 2007	30.73	%(h)			30,295	0.87	%(h)	0.20	%(h)	0.96	%	57.04	%
Year Ended October 31, 2008	(38.07	)%(i)			38,868	0.95	%	(0.16	)%	0.97	%	157.87	%
Year Ended October 31, 2009	19.11	%(j)			39,400	0.95	%	(0.08	)%	1.06	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	14.94	%			45,408	0.95	%	(0.31	)%	0.96	%	42.87	%

*	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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f)	Represents less than $0.005 or $(0.005).
(g)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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 (including the Fund) 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)	During the year ended October 31, 2008, the respective Portfolio in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(j)	During the year ended October 31, 2009, the respective Portfolio in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.50%, 0.54%, 0.53% and 0.49% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

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

HSBC INVESTOR ADVISORS 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 (Loss)	Net Realized and Unrealized Gains (Losses) from Investments		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends		Net Asset Value, End of Period
CLASS I SHARES
Year Ended October 31, 2005		$	14.87	0.31	2.59		2.90		(0.23	)	—		(0.23	)		$	17.54
Year Ended October 31, 2006			17.54	0.38	5.14		5.52		(0.36	)	(0.60	)	(0.96	)			22.10
Year Ended October 31, 2007			22.10	0.50	4.69		5.19		(0.55	)	(1.84	)	(2.39	)			24.90
Year Ended October 31, 2008			24.90	0.53	(12.41	)	(11.88	)	(0.39	)	(1.90	)	(2.29	)			10.73
Year Ended October 31, 2009			10.73	0.28	2.31		2.59		(0.54	)	(0.62	)	(1.16	)			12.16
Six Months Ended April 30, 2010 (Unaudited)			12.16	0.07	0.12		0.19		(0.19	)	—		(0.19	)			12.16

			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 to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(b)(e)
CLASS I SHARES
Year Ended October 31, 2005	19.69	%		$	193,144	0.92	%	2.01	%	0.92	%	31.32	%
Year Ended October 31, 2006	32.70	%			283,749	0.97	%	2.02	%	0.97	%	33.39	%
Year Ended October 31, 2007	25.41	%(f)(g)			385,717	0.87	%(f)	2.15	%(f)	0.89	%	26.08	%
Year Ended October 31, 2008	(51.92	)%			161,053	0.84	%	2.69	%	0.84	%	28.98	%
Year Ended October 31, 2009	27.90	%			180,242	0.97	%	2.27	%	0.97	%	58.31	%
Six Months Ended April 30, 2010 (Unaudited)	1.48	%			178,688	0.95	%	1.10	%	0.95	%	35.03	%

(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 Equity 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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated 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 (including the Fund) 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.
(g)	During the year ended October 31, 2007, the Portfolio in which the Fund invests 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 35

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		Net Asset Value, End of Period
CLASS A SHARES
Year Ended October 31, 2005		$	8.44	(0.06	)*	1.49		1.43		—		—			$	9.87
Year Ended October 31, 2006			9.87	(0.00	)*(e)	1.19		1.19		(2.18	)	(2.18	)			8.88
Year Ended October 31, 2007			8.88	(0.04	)*	2.59		2.55		(0.62	)	(0.62	)			10.81
Year Ended October 31, 2008			10.81	(0.03	)*	(4.17	)	(4.20	)	(1.23	)	(1.23	)			5.38
Year Ended October 31, 2009			5.38	0.01	*	0.73		0.74		(0.44	)	(0.44	)			5.68
Six Months Ended April 30, 2010 (Unaudited)			5.68	(0.00	)*(e)	1.22		1.22		—		(0.01	)			6.89
CLASS B SHARES
Year Ended October 31, 2005		$	8.16	(0.13	)*	1.45		1.32		—		—			$	9.48
Year Ended October 31, 2006			9.48	(0.06	)*	1.13		1.07		(2.18	)	(2.18	)			8.37
Year Ended October 31, 2007			8.37	(0.10	)*	2.42		2.32		(0.62	)	(0.62	)			10.07
Year Ended October 31, 2008			10.07	(0.09	)*	(3.83	)	(3.92	)	(1.23	)	(1.23	)			4.92
Year Ended October 31, 2009			4.92	(0.02	)*	0.65		0.63		(0.44	)	(0.44	)			5.11
Six Months Ended April 30, 2010 (Unaudited)			5.11	(0.02	)*	1.10		1.08		—		—				6.19
CLASS C SHARES
Year Ended October 31, 2005		$	8.22	(0.13	)*	1.45		1.32		—		—			$	9.54
Year Ended October 31, 2006			9.54	(0.06	)*	1.15		1.09		(2.18	)	(2.18	)			8.45
Year Ended October 31, 2007			8.45	(0.10	)*	2.43		2.33		(0.62	)	(0.62	)			10.16
Year Ended October 31, 2008			10.16	(0.10	)*	(3.86	)	(3.96	)	(1.23	)	(1.23	)			4.97
Year Ended October 31, 2009			4.97	(0.02	)*	0.66		0.64		(0.44	)	(0.44	)			5.17
Six Months Ended April 30, 2010 (Unaudited)			5.17	(0.02	)*	1.11		1.09		—		—				6.26
CLASS I SHARES
Year Ended October 31, 2005		$	8.52	(0.02	)*	1.48		1.46		—		—			$	9.98
Year Ended October 31, 2006			9.98	0.03	*	1.20		1.23		(2.18	)	(2.18	)			9.03
Year Ended October 31, 2007			9.03	(0.02	)*	2.64		2.62		(0.62	)	(0.62	)			11.03
Year Ended October 31, 2008			11.03	(0.01	)*	(4.28	)	(4.29	)	(1.23	)	(1.23	)			5.51
Year Ended October 31, 2009			5.51	0.03	*	0.75		0.78		(0.44	)	(0.44	)			5.85
Six Months Ended April 30, 2010 (Unaudited)			5.85	0.01	*	1.26		1.27		—		(0.03	)			7.09

			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)(d)
CLASS A SHARES
Year Ended October 31, 2005	16.94	%(f)		$	2,151	1.38	%(f)	(0.65	)%(f)	1.53	%	169.62	%
Year Ended October 31, 2006	13.66	%			3,185	1.48	%	(0.01	)%	1.85	%	53.16	%
Year Ended October 31, 2007	30.51	%(g)			5,897	1.19	%(g)	(0.45	)%(g)	1.70	%	66.16	%
Year Ended October 31, 2008	(43.49	)%			3,584	1.35	%	(0.36	)%	1.80	%	64.65	%
Year Ended October 31, 2009	16.07	%(h)			4,186	1.35	%	0.22	%	2.17	%	46.49	%
Six Months Ended April 30, 2010 (Unaudited)	21.44	%			5,225	1.35	%	(0.07	)%	1.97	%	33.51	%
CLASS B SHARES
Year Ended October 31, 2005	16.18	%(f)		$	7,415	2.11	%(f)	(1.38	)%(f)	2.27	%	169.62	%
Year Ended October 31, 2006	12.78	%			7,425	2.25	%	(0.72	)%	2.60	%	53.16	%
Year Ended October 31, 2007	29.56	%(g)			6,285	1.92	%(g)	(1.15	)%(g)	2.48	%	66.16	%
Year Ended October 31, 2008	(43.97	)%			1,975	2.09	%	(1.16	)%	2.51	%	64.65	%
Year Ended October 31, 2009	15.26	%(h)			1,574	2.10	%	(0.48	)%	2.94	%	46.49	%
Six Months Ended April 30, 2010 (Unaudited)	21.14	%			1,329	2.10	%	(0.79	)%	2.73	%	33.51	%
CLASS C SHARES
Year Ended October 31, 2005	16.06	%(f)		$	111	2.13	%(f)	(1.40	)%(f)	2.28	%	169.62	%
Year Ended October 31, 2006	12.93	%			95	2.25	%	(0.72	)%	2.60	%	53.16	%
Year Ended October 31, 2007	29.40	%(g)			79	1.93	%(g)	(1.16	)%(g)	2.46	%	66.16	%
Year Ended October 31, 2008	(43.97	)%			12	2.09	%	(1.20	)%	2.49	%	64.65	%
Year Ended October 31, 2009	15.30	%(h)			13	2.10	%	(0.53	)%	2.91	%	46.49	%
Six Months Ended April 30, 2010 (Unaudited)	21.08	%			16	2.10	%	(0.81	)%	2.73	%	33.51	%
CLASS I SHARES
Year Ended October 31, 2005	17.14	%(f)		$	19,618	0.89	%(f)	(0.19	)%(f)	1.02	%	169.62	%
Year Ended October 31, 2006	13.97	%			17,029	1.26	%	0.29	%	1.60	%	53.16	%
Year Ended October 31, 2007	30.80	%(g)			20,671	0.93	%(g)	(0.19	)%(g)	1.47	%	66.16	%
Year Ended October 31, 2008	(43.44	)%			11,080	1.10	%	(0.12	)%	1.54	%	64.65	%
Year Ended October 31, 2009	16.42	%(h)			7,432	1.10	%	0.51	%	1.95	%	46.49	%
Six Months Ended April 30, 2010 (Unaudited)	21.71	%			11,305	1.10	%	0.16	%	1.72	%	33.51	%

*	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 each 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)	Less than $0.005 per share.
(f)	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
(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total returns were 0.16%, 0.18%, 0.17%, and 0.17% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(h)	During the year ended October 31, 2009, the Fund received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.04%, 0.04%, 0.04% and 0.04% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

36 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		Net Asset Value, End of Period
CLASS A SHARES
Year Ended October 31, 2005		$	10.91	(0.14	)	1.62		1.48		—		—			$	12.39
Year Ended October 31, 2006			12.39	(0.14	)*	2.43		2.29		(0.39	)	(0.39	)			14.29
Year Ended October 31, 2007			14.29	(0.16	)*	4.01		3.85		(1.73	)	(1.73	)			16.41
Year Ended October 31, 2008			16.41	(0.12	)*	(4.04	)	(4.16	)	(5.16	)	(5.16	)			7.09
Year Ended October 31, 2009			7.09	(0.07	)*	0.97		0.90		(0.43	)	(0.43	)			7.56
Six Months Ended April 30, 2010 (Unaudited)			7.56	(0.05	)*	1.86		1.81		—		—				9.37
CLASS B SHARES
Year Ended October 31, 2005		$	10.29	(0.22	)	1.53		1.31		—		—			$	11.60
Year Ended October 31, 2006			11.60	(0.23	)*	2.27		2.04		(0.39	)	(0.39	)			13.25
Year Ended October 31, 2007			13.25	(0.25	)*	3.67		3.42		(1.73	)	(1.73	)			14.94
Year Ended October 31, 2008			14.94	(0.18	)*	(3.50	)	(3.68	)	(5.16	)	(5.16	)			6.10
Year Ended October 31, 2009			6.10	(0.10	)*	0.80		0.70		(0.43	)	(0.43	)			6.37
Six Months Ended April 30, 2010 (Unaudited)			6.37	(0.07	)*	1.56		1.49		—		—				7.86
CLASS C SHARES
Year Ended October 31, 2005		$	10.39	(0.21	)	1.53		1.32		—		—			$	11.71
Year Ended October 31, 2006			11.71	(0.23	)*	2.29		2.06		(0.39	)	(0.39	)			13.38
Year Ended October 31, 2007			13.38	(0.26	)*	3.72		3.46		(1.73	)	(1.73	)			15.11
Year Ended October 31, 2008			15.11	(0.17	)*	(3.57	)	(3.74	)	(5.16	)	(5.16	)			6.21
Year Ended October 31, 2009			6.21	(0.10	)*	0.81		0.71		(0.43	)	(0.43	)			6.49
Six Months Ended April 30, 2010 (Unaudited)			6.49	(0.07	)*	1.60		1.53		—		—				8.02

			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(b)(e)
CLASS A SHARES
Year Ended October 31, 2005	13.57	%(f)		$	22,875	1.51	%(f)	(1.11	)%	1.69	%(f)	63.95	%
Year Ended October 31, 2006	18.81	%			24,463	1.55	%	(1.04	)%	1.70	%	60.83	%
Year Ended October 31, 2007	30.28	%(g)			15,057	1.52	%(g)	(1.13	)%	1.77	%(g)	69.41	%
Year Ended October 31, 2008	(35.84	)%			9,600	1.55	%	(1.13	)%	1.82	%	80.42	%
Year Ended October 31, 2009	14.85	%			9,687	1.55	%	(1.02	)%	2.30	%	64.91	%
Six Months Ended April 30, 2010 (Unaudited)	23.94	%			11,607	1.55	%	(1.10	)%	2.09	%	26.31	%
CLASS B SHARES
Year Ended October 31, 2005	12.73	%(f)		$	4,539	2.26	%(f)	(1.86	)%	2.44	%(f)	63.95	%
Year Ended October 31, 2006	17.91	%			4,768	2.30	%	(1.79	)%	2.45	%	60.83	%
Year Ended October 31, 2007	29.30	%(g)			4,928	2.26	%(g)	(1.91	)%	2.52	%(g)	69.41	%
Year Ended October 31, 2008	(36.30	)%			1,578	2.29	%	(1.88	)%	2.58	%	80.42	%
Year Ended October 31, 2009	13.92	%			1,082	2.30	%	(1.77	)%	3.10	%	64.91	%
Six Months Ended April 30, 2010 (Unaudited)	23.39	%			800	2.30	%	(1.86	)%	2.88	%	26.31	%
CLASS C SHARES
Year Ended October 31, 2005	12.70	%(f)		$	306	2.26	%(f)	(1.86	)%	2.44	%(f)	63.95	%
Year Ended October 31, 2006	17.92	%			299	2.30	%	(1.78	)%	2.45	%	60.83	%
Year Ended October 31, 2007	29.32	%(g)			334	2.27	%(g)	(1.91	)%	2.50	%(g)	69.41	%
Year Ended October 31, 2008	(36.27	)%			189	2.30	%	(1.88	)%	2.58	%	80.42	%
Year Ended October 31, 2009	13.83	%			267	2.30	%	(1.78	)%	3.08	%	64.91	%
Six Months Ended April 30, 2010 (Unaudited)	23.57	%			326	2.30	%	(1.86	)%	2.89	%	26.31	%

*	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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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 (including the Fund) 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 37

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, 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
Year Ended October 31, 2008		18.94	(0.07	)	(4.99	)	(5.06	)	(4.97	)	(4.97	)		8.91
Year Ended October 31, 2009		8.91	(0.04	)	1.32		1.28		(0.26	)	(0.26	)		9.93
Six Months Ended April 30, 2010 (Unaudited)		9.93	(0.00	)(h)	2.41		2.41		—		—			12.34

			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(b)(e)
CLASS I SHARES
Year Ended October 31, 2005	14.31	%(f)	$	177,519	0.94	%(f)	(0.54	)%(f)	0.94	%		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	%
Year Ended October 31, 2008	(35.39	)%		97,841	0.97	%	(0.55	)%	0.97	%		80.42	%
Year Ended October 31, 2009	15.47	%		100,285	1.02	%	(0.50	)%	1.02	%		64.91	%
Six Months Ended April 30, 2010 (Unaudited)	24.27	%		117,410	0.98	%	(0.54	)%	0.98	%		26.31	%

(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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated 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 a 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 (including the Fund) 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.
(h)	Less than $0.005 per share.

38 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						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
Year Ended October 31, 2005	$	13.93	0.18		2.33		2.51		(0.06	)	(0.79	)		(0.85	)
Year Ended October 31, 2006		15.59	0.22		4.45		4.67		(0.25	)	(1.16	)		(1.41	)
Year Ended October 31, 2007		18.85	0.22	*	3.92		4.14		(0.40	)	(2.11	)		(2.51	)
Year Ended October 31, 2008		20.48	0.24	*	(9.41	)	(9.17	)	(0.15	)	(3.31	)		(3.46	)
Year Ended October 31, 2009		7.85	0.06	*	0.47		0.53		(0.49	)	(3.79	)		(4.28	)
Six Months Ended April 30, 2010 (Unaudited)		4.10	0.00	*(g)	0.04		0.04		(0.07	)	—			(0.07	)
CLASS B SHARES
Year Ended October 31, 2005	$	13.43	0.07		2.24		2.31		—		(0.79	)		(0.79	)
Year Ended October 31, 2006		14.95	0.09		4.26		4.35		(0.14	)	(1.16	)		(1.30	)
Year Ended October 31, 2007		18.00	0.10	*	3.70		3.80		(0.27	)	(2.11	)		(2.38	)
Year Ended October 31, 2008		19.42	0.14	*	(8.86	)	(8.72	)	(0.03	)	(3.31	)		(3.34	)
Year Ended October 31, 2009		7.36	0.03	*	0.37		0.40		(0.38	)	(3.79	)		(4.17	)
Six Months Ended April 30, 2010 (Unaudited)		3.59	(0.01	)*	0.03		0.02		(0.04	)	—			(0.04	)
CLASS C SHARES
Year Ended October 31, 2005	$	13.67	0.06		2.29		2.35		—		(0.79	)		(0.79	)
Year Ended October 31, 2006		15.23	0.11		4.33		4.44		(0.14	)	(1.16	)		(1.30	)
Year Ended October 31, 2007		18.37	0.11	*	3.80		3.91		(0.23	)	(2.11	)		(2.34	)
Year Ended October 31, 2008		19.94	0.15	*	(9.15	)	(9.00	)	(0.02	)	(3.31	)		(3.33	)
Year Ended October 31, 2009		7.61	0.03	*	0.43		0.46		(0.39	)	(3.79	)		(4.18	)
Six Months Ended April 30, 2010 (Unaudited)		3.89	(0.01	)*	0.03		0.02		(0.04	)	—			(0.04	)

					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(b)(e)
CLASS A SHARES
Year Ended October 31, 2005	$	15.59	18.64	%	$	20,680	1.66	%	1.21	%	1.66	%		31.32	%
Year Ended October 31, 2006		18.85	31.85	%		22,761	1.67	%	1.24	%	1.67	%		33.39	%
Year Ended October 31, 2007		20.48	24.19	%(f)		16,078	1.62	%(f)	1.15	%(f)	1.64	%		26.08	%
Year Ended October 31, 2008		7.85	(52.63	)%		6,645	1.70	%	1.75	%	1.81	%		28.98	%
Year Ended October 31, 2009		4.10	23.99	%		5,939	1.70	%	1.56	%	2.52	%		58.31	%
Six Months Ended April 30, 2010 (Unaudited)		4.07	0.95	%		5,558	1.70	%	0.19	%	2.74	%		35.03	%
CLASS B SHARES
Year Ended October 31, 2005	$	14.95	17.72	%	$	2,403	2.41	%	0.47	%	2.41	%		31.32	%
Year Ended October 31, 2006		18.00	30.87	%		3,234	2.42	%	0.58	%	2.42	%		33.39	%
Year Ended October 31, 2007		19.42	23.26	%(f)		3,698	2.37	%(f)	0.59	%(f)	2.40	%		26.08	%
Year Ended October 31, 2008		7.36	(52.97	)%		1,249	2.45	%	1.05	%	2.56	%		28.98	%
Year Ended October 31, 2009		3.59	23.03	%		962	2.45	%	0.80	%	3.28	%		58.31	%
Six Months Ended April 30, 2010 (Unaudited)		3.57	0.58	%		688	2.45	%	(0.54	)%	3.48	%		35.03	%
CLASS C SHARES
Year Ended October 31, 2005	$	15.23	17.70	%	$	164	2.41	%	0.48	%	2.41	%		31.32	%
Year Ended October 31, 2006		18.37	30.92	%		163	2.41	%	0.58	%	2.41	%		33.39	%
Year Ended October 31, 2007		19.94	23.39	%(f)		147	2.30	%(f)	0.59	%(f)	2.32	%		26.08	%
Year Ended October 31, 2008		7.61	(52.96	)%		58	2.45	%	1.12	%	2.57	%		28.98	%
Year Ended October 31, 2009		3.89	23.01	%		58	2.45	%	0.92	%	3.28	%		58.31	%
Six Months Ended April 30, 2010 (Unaudited)		3.87	0.53	%		56	2.45	%	(0.57	)%	3.49	%		35.03	%

*	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 Equity 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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all of its investable assets. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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.
(g)	Less than $0.005 per share.

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

HSBC INVESTOR FUNDS—VALUE 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		Net Asset Value, End of Period
CLASS A SHARES
Year Ended October 31, 2005		$	13.38	0.10		1.86		1.96		(0.08	)	(0.13	)	(0.21	)		$	15.13
Year Ended October 31, 2006			15.13	0.12	*	2.95		3.07		(0.19	)	(1.29	)	(1.48	)			16.72
Year Ended October 31, 2007			16.72	0.14	*	1.38		1.52		(0.13	)	(1.57	)	(1.70	)			16.54
Year Ended October 31, 2008			16.54	0.13	*	(6.30	)	(6.17	)	(0.13	)	(1.30	)	(1.43	)			8.94
Year Ended October 31, 2009			8.94	0.09	*	1.64		1.73		(0.11	)	—		(0.11	)			10.56
Six Months Ended April 30, 2010 (Unaudited)			10.56	0.02	*	1.42		1.44		(0.02	)	—		(0.02	)			11.98
CLASS B SHARES
Year Ended October 31, 2005		$	12.95	(0.02	)	1.80		1.78		—		(0.13	)	(0.13	)		$	14.60
Year Ended October 31, 2006			14.60	—	*	2.84		2.84		(0.07	)	(1.29	)	(1.36	)			16.08
Year Ended October 31, 2007			16.08	0.02	*	1.32		1.34		(0.02	)	(1.57	)	(1.59	)			15.83
Year Ended October 31, 2008			15.83	0.03	*	(6.01	)	(5.98	)	(0.02	)	(1.30	)	(1.32	)			8.53
Year Ended October 31, 2009			8.53	0.04	*	1.54		1.58		(0.03	)	—		(0.03	)			10.08
Six Months Ended April 30, 2010 (Unaudited)			10.08	(0.02	)*	1.35		1.33		—		—		—				11.41
CLASS C SHARES
Year Ended October 31, 2005		$	13.01	(0.02	)	1.82		1.80		(0.01	)	(0.13	)	(0.14	)		$	14.67
Year Ended October 31, 2006			14.67	—	*	2.85		2.85		(0.05	)	(1.29	)	(1.34	)			16.18
Year Ended October 31, 2007			16.18	0.02	*	1.32		1.34		(0.01	)	(1.57	)	(1.58	)			15.94
Year Ended October 31, 2008			15.94	0.03	*	(6.05	)	(6.02	)	(0.02	)	(1.30	)	(1.32	)			8.60
Year Ended October 31, 2009			8.60	0.02	*	1.57		1.59		(0.04	)	—		(0.04	)			10.15
Six Months Ended April 30, 2010 (Unaudited)			10.15	(0.02	)*	1.36		1.34		—		—		—				11.49
CLASS I SHARES
Year Ended October 31, 2005		$	13.38	0.13		1.86		1.99		(0.11	)	(0.13	)	(0.24	)		$	15.13
Year Ended October 31, 2006			15.13	0.15	*	2.94		3.09		(0.23	)	(1.29	)	(1.52	)			16.70
Year Ended October 31, 2007			16.70	0.18	*	1.38		1.56		(0.17	)	(1.57	)	(1.74	)			16.52
Year Ended October 31, 2008			16.52	0.16	*	(6.28	)	(6.12	)	(0.17	)	(1.30	)	(1.47	)			8.93
Year Ended October 31, 2009			8.93	0.11	*	1.63		1.74		(0.13	)	—		(0.13	)			10.54
Six Months Ended April 30, 2010 (Unaudited)			10.54	0.03	*	1.42		1.45		(0.03	)	—		(0.03	)			11.96

			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(b)(e)
CLASS A SHARES
Year Ended October 31, 2005	14.69	%(f)		$	23,315	1.15	%(f)	0.64	%(f)	1.30	%(f)	16.45	%
Year Ended October 31, 2006	21.70	%			24,688	1.20	%	0.74	%	1.43	%	20.63	%
Year Ended October 31, 2007	9.77	%(g)			27,225	1.11	%(g)	0.84	%(g)	1.25	%	18.67	%
Year Ended October 31, 2008	(40.46	)%(h)			14,881	1.20	%	0.99	%	1.23	%	24.61	%
Year Ended October 31, 2009	19.59	%(i)			12,742	1.20	%	0.91	%	1.40	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.63	%			12,854	1.20	%	0.32	%	1.31	%	14.64	%
CLASS B SHARES
Year Ended October 31, 2005	13.78	%(f)		$	1,767	1.90	%(f)	(0.10	)%(f)	2.04	%(f)	16.45	%
Year Ended October 31, 2006	20.78	%			1,939	1.95	%	(0.01	)%	2.18	%	20.63	%
Year Ended October 31, 2007	8.92	%(g)			1,772	1.87	%(g)	0.10	%(g)	2.00	%	18.67	%
Year Ended October 31, 2008	(40.89	)%(h)			717	1.95	%	0.24	%	1.98	%	24.61	%
Year Ended October 31, 2009	18.63	%(i)			466	1.95	%	0.23	%	2.14	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.19	%			324	1.95	%	(0.36	)%	2.05	%	14.64	%
CLASS C SHARES
Year Ended October 31, 2005	13.86	%(f)		$	388	1.90	%(f)	(0.12	)%(f)	2.05	%(f)	16.45	%
Year Ended October 31, 2006	20.72	%			157	1.95	%	0.01	%	2.17	%	20.63	%
Year Ended October 31, 2007	8.95	%(g)			126	1.87	%(g)	0.11	%(g)	1.99	%	18.67	%
Year Ended October 31, 2008	(40.89	)%(h)			66	1.95	%	0.24	%	1.98	%	24.61	%
Year Ended October 31, 2009	18.60	%(i)			71	1.95	%	0.12	%	2.14	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.20	%			80	1.95	%	(0.44	)%	2.06	%	14.64	%
CLASS I SHARES
Year Ended October 31, 2005	14.96	%(f)		$	15,044	0.90	%(f)	0.91	%(f)	1.02	%(f)	16.45	%
Year Ended October 31, 2006	21.90	%			18,036	0.95	%	0.99	%	1.18	%	20.63	%
Year Ended October 31, 2007	10.04	%(g)			28,692	0.87	%(g)	1.07	%(g)	0.99	%	18.67	%
Year Ended October 31, 2008	(40.29	)%(h)			17,779	0.95	%	1.24	%	0.98	%	24.61	%
Year Ended October 31, 2009	19.82	%(i)			16,737	0.95	%	1.16	%	1.15	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.79	%			19,614	0.95	%	0.56	%	1.06	%	14.64	%

*	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 each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated on the basis of the respective Portfolio in which the Fund invests all its investable assets. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued.
(f)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the respective Portfolio in which the Fund invests related to a 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.
(g)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds (including the Fund) 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.
(h)	During the year ended October 31, 2008, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigations settlements. The corresponding impact to the total return was 0.22%, 0.22%, 0.22% and 0.22% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(i)	During the year ended October 31, 2009, the respective Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.03%, 0.03%, 0.03% and 0.03% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

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

HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited)
1.	Organization:
	The HSBC Investor Funds (the “Trust’’), a Massachusetts business trust organized on April 22, 1987, 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, 2010, the Trust is comprised of 15 separate operational funds and the Advisor Trust is comprised of 2 separate operational funds. The accompanying financial statements are presented for the following 7 funds (individually a “Fund’’, collectively the “Funds’’) of the Trust and Advisor Trust (collectively the “Trusts’’):

Fund	Short Name	Trust
HSBC Investor Growth Fund	Growth 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 Equity Fund	Trust
HSBC Investor Value Fund	Value Fund	Trust

          All the Funds are diversified funds. Each Fund is a part of the HSBC Investor Family of Funds.

          Financial statements for all other funds of the HSBC Investor Family of Funds are published separately. The 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, 2010
Growth Fund	HSBC Investor Growth Portfolio	68.6	%
International Equity Fund	HSBC Investor International Equity Portfolio	86.3	%
Opportunity Fund	HSBC Investor Opportunity Portfolio	9.1	%
Opportunity Fund (Advisor)	HSBC Investor Opportunity Portfolio	84.0	%
Overseas Equity Fund	HSBC Investor International Equity Portfolio	3.0	%
Value Fund	HSBC Investor Value Portfolio	65.3	%

          The HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio’’, collectively the “Portfolios’’) are diversified series of the HSBC Investor Portfolios (the “Portfolio Trust’’). The Portfolios operate as master funds in master-feeder arrangements and also receive investments from certain fund of funds.

          The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the 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 Growth 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 International Equity Fund and the Opportunity Fund (Advisor) each offer one class of shares: Class I Shares. The 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 Funds have a maximum sales charge of 5.00% 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

HSBC INVESTOR FAMILY OF FUNDS 41

HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	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 Trusts’ 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 Trusts 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 Trusts expect the 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 certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report.
	Securities Valuation:
	The Funds record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below.
	A. 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.
	B. Mid-Cap Fund
	Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued pursuant to procedures adopted by the Funds’ Board of Trustees (“Trustees”). Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or profits, regulatory news, natural disasters and litigation. Examples of potentially significant events that could affect multiple securities held by the Fund includes governmental actions, natural disasters and armed conflicts.
	Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded.
	Investment Transactions and Related Income:
	A. 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.

42 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	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.
	Allocations:
	Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all funds within the HSBC Investor Family of Funds in relation to the net assets of each fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis.
	Dividends to Shareholders:
	Dividends to shareholders from net investment income, if any, are declared and distributed semi-annually in the case of the Growth Fund, Opportunity Fund, Opportunity (Advisor) and the Value Fund, and annually in the case of the International Equity Fund, Mid-Cap Fund, and Overseas Equity 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 to shareholders from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital.
	Redemption Fee:
	Prior to February 28, 2010, a redemption fee of 2.00% was charged and recorded as paid-in-capital for any shares redeemed or exchanged after being held for less than 30 days. This fee did not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that could not implement the fee. Effective February 28, 2010 the redemption fee has been removed. For the fiscal year ended October 31, 2009 and period ended April 30, 2010, the following Funds collected redemption fees as follows:

Fund	Fees Collected October 31, 2009		Fees Collected April 30, 2010
Growth Fund	$	2,635	$	—
International Equity Fund		8,926		143
Mid-Cap Fund		25		11
Opportunity Fund (Advisor)		2,378		141
Opportunity Fund		638		318
Overseas Equity Fund		73		2
Value Fund		2,519		55

Federal Income Taxes:

          Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company’’ under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required.

          Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as appli-

HSBC INVESTOR FAMILY OF FUNDS 43

HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	cable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
	New Accounting Pronouncements:
	In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trusts’ financial statements and related disclosures.
	Futures Contracts:
	The 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 conditions. Upon entering into a futures contract, the 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, the Mid-Cap Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Mid-Cap Fund and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Mid-Cap Fund did not hold any futures contracts.
	Options:
	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, 2010, the Mid-Cap Fund did not write any covered call options.
3.	Investment Valuation Summary:
	The valuation techniques employed by the Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below:
		•	Level 1: quoted prices in active markets for identical assets
		•	Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)
		•	Level 3: significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)
	The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

44 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Funds’ investments based upon three levels defined above:

	LEVEL 1		LEVEL 2		LEVEL 3		Total
Growth Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	63,712,178	$	—	$	63,712,178
Total Investment Securities	$	—	$	63,712,178	$	—	$	63,712,178
International Equity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	178,083,094	$	—	$	178,083,094
Total Investment Securities	$	—	$	178,083,094	$	—	$	178,083,094
Mid-Cap Fund
Investment Securities:
Common Stocks (b)	$	17,599,321	$	—	$	—	$	17,599,321
Investment Companies		505,474		—		—		505,474
Total Investment Securities	$	18,104,795	$	—	$	—	$	18,104,795
Opportunity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	12,744,536	$	—	$	11,027,004
Total Investment Securities	$	—	$	12,744,536	$	—	$	11,027,004
Opportunity Fund (Advisor)
Investment Securities:
Affiliated Portfolios (a)	$	—	$	117,405,669	$	—	$	117,405,669
Total Investment Securities	$	—	$	117,405,669	$	—	$	117,405,669
Overseas Equity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	6,260,482	$	—	$	6,260,482
Total Investment Securities	$	—	$	6,260,482	$	—	$	6,260,482
Value Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	32,934,431	$	—	$	32,934,431
Total Investment Securities	$	—	$	32,934,431	$	—	$	32,934,431

(a)	Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder fund structure, the inputs used for valuing these investments are categorized as Level 2.
(b)	For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments.
4.	Related Party Transactions and Other Agreements and Plans:
	Investment Management:
	HSBC Global Asset Management (USA) Inc. (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as Investment Adviser to the Mid-Cap Fund. As Investment Adviser, HSBC manages the investments of the Fund and continuously reviews, supervises, and administers the Fund’s investments. Investment sub-advisory services are provided by Munder Capital Management (“Munder”) for the Mid-Cap Fund.

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HSBC INVESTOR FAMILY OF FUNDS
Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	For their services as Investment Adviser and Investment Sub-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 received from the Funds (as well as other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly, at annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $10 billion		0.0550%
In excess of $10 billion but not exceeding $20 billion		0.0350%
In excess of $20 billion but not exceeding $50 billion		0.0275%
In excess of $50 billion		0.0250%

          The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets for 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. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios. An amount equal to 50% of the administration fees is deemed to be class specific.

          Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trusts’ Sub-Administrator, subject to the general supervision of the Trusts’ Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC.

          Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $134,557 for the period ended April 30, 2010, plus reimbursement of certain out of pocket expenses. Expenses incurred by each fund are reflected on the Statements of Operations as “Compliance Services.” Citi Ohio pays the salary and other compensation earned by individuals performing these services, as employees of Citi Ohio.

Distribution Arrangements:

          Foreside Distribution Services, L.P. (“Foreside”), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the Trusts as Distributor (the “Distributor”). The Trusts have adopted a non-compensatory Distribution Plan and Agreement (the “Distribution Plan”) pursuant to Rule 12b-1 of the Act. The Distribution Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the Funds, respectively. As of the most recent fiscal periods Foreside, as Distributor, also received $284,730, $198,003 and $19,382 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively, of which $30, $6 and $– were reallocated to HSBC-affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively.

Shareholder Servicing:

          The Trusts have adopted a Shareholder Services Plan, which provides for payments to shareholder servicing agents (which primarily consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the shareholder servicing agents receive a fee that is computed daily and paid monthly up to 0.25%, 0.25%, and 0.25% of the average daily net assets of Class A Shares, Class B Shares, and Class C Shares of the Funds, respectively. The aggregate fees paid to the Distributor pursuant to the Distribution Plan and to shareholder servicing agents pursuant to the Shareholder Services Plan currently are not intended to exceed 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.

46 HSBC INVESTOR FAMILY OF FUNDS

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)
	Fund Accounting, Transfer Agency and Trustees:
	Citi Ohio provides fund accounting and transfer agency services for each Fund. As transfer agent, Citi Ohio receives a fee based on the number of Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant, Citi Ohio receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses.
	Each non-interested Trustee is compensated with a $60,000 annual Board retainer for service as a Trustee of the Trusts and Portfolio Trust, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts and Portfolio Trust. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.
	Fee Reductions:
	The Investment Adviser has agreed to contractually waive 0.05% of its management fee, computed daily and paid monthly, and based on the average daily net assets of the Mid-Cap Fund.
	The Investment Adviser has also agreed to contractually limit, through March 1, 2011, 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
Growth Fund		A		1.20%
Growth Fund		B		1.95%
Growth Fund		C		1.95%
Growth 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%
Opportunity Fund		A		1.65%
Opportunity Fund		B		2.40%
Opportunity Fund		C		2.40%
Overseas Equity Fund		A		1.85%
Overseas Equity Fund		B		2.60%
Overseas Equity Fund		C		2.60%
Value Fund		A		1.20%
Value Fund		B		1.95%
Value Fund		C		1.95%
Value Fund		I		0.95%

          Any amounts contractually waived or reimbursed by the Investment Adviser will be subject to repayment by the Fund to the Investment Adviser within three years to the extent that the repayment will not cause the Fund’s operating expenses to exceed the contractual expense limit was in effect at the time of such waiver or reimbursement. During the period ended April 30, 2010, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2010, the repayments that may potentially be made by the Funds are as follows:

Fund	2013($)*		2012($)*		2011($)*		2010($)*
Growth Fund		1,984		56,048		7,580		8,757
Mid-Cap Fund		24,882		69,632		35,881		19,994
Opportunity Fund		26,532		65,792		—		18,813
Overseas Equity Fund		24,800		45,169		—		—
Value Fund		16,741		55,991		13,116		25,113

^* The year listed above the amounts is the fiscal year ending in which the amounts will no longer be recoupable.

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HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

	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 its discretion. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator and Citi Ohio are reported separately on the Statements of Operations, as applicable.
5.	Investment Transactions:
	Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows:

Fund	Purchases		Sales
Mid-Cap Fund	$	6,713,444	$	5,115,226

There were no long-term U.S. Government securities held during the period ended April 30, 2010.

Contributions and withdrawals of the respective Portfolios for the period ended April 30, 2010 totaled:

Fund	Contributions		Withdrawals
Growth Fund	$	2,754,035	$	5,029,264
International Equity Fund		10,383,644		15,145,907
Opportunity Fund		177,517		1,042,247
Opportunity Fund (Advisor)		3,815,129		10,481,149
Overseas Equity Fund		115,687		891,066
Value Fund		1,311,464		2,524,038

6.	Federal Income Tax Information:
	At April 30, 2010, the cost basis of securities for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:

Fund	Tax Cost($)		Tax Unrealized Appreciation($)		Tax Unrealized Depreciation($)			Net Unrealized Appreciation (Depreciation($)*
Mid-Cap Fund		14,712,188		3,800,906		(408,299	)		3,392,607

*	The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales.
	The tax character of dividends paid by the Funds as of the latest tax year ended October 31, 2009 was as follows:

	Dividends paid from Ordinary Income		Net Long Term Capital Gains		Total Dividends Paid*
Growth Fund	$	—	$	—	$	—
International Equity Fund (Advisor)		7,354,738		8,461,420		15,816,158
Mid-Cap Fund		—		1,150,504		1,150,504
Opportunity Fund		—		660,465		660,465
Opportunity Fund (Advisor)		—		2,746,629		2,746,629
Overseas Equity Fund		651,140		3,347,318		3,998,458
Value Fund		390,433		—		390,433

* Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes.

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

          As of the latest tax year ended October 31, 2009, 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(2)		Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)(1)			Total Accumulated Earnings/ (Deficit)
Growth Fund	$	—	$	—	$	—	$	—	$	—	$	(11,630,969	)	$	6,193,161		$	(5,437,808	)
International Equity Fund (Advisor)		2,365,154		—		—		2,365,154		—		(59,383,976	)		(10,552,398	)		(67,571,220	)
Mid-Cap Fund		37,965		—		—		37,965		—		(3,361,790	)		854,445			(2,469,380	)
Opportunity Fund		—		—		—		—		—		(1,305,884	)		(152,375	)		(1,458,259	)
Opportunity Fund (Advisor)		—		—		—		—		—		(10,911,778	)		(1,411,543	)		(12,323,321	)
Overseas Equity Fund		108,816		—		—		108,816		—		(2,368,405	)		(357,941	)		(2,617,530	)
Value Fund		14,848		—		—		14,848		—		(6,016,194	)		(2,368,011	)		(8,369,357	)

(1)

The differences between book-basis and tax-basis unrealized appreciation/depreciation are attributable primarily to: tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain derivative instruments, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts.

As of latest tax year ended October 31, 2009, the following Funds have net capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by U.S. Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.

Fund	Amount		Expires
Growth Fund		211,343	2016
Growth Fund		11,419,626	2017
International Equity Fund (Advisor)		59,383,976	2017
Mid-Cap Fund		3,361,790	2017
Opportunity Fund		1,305,884	2017
Opportunity Fund (Advisor)		10,911,778	2017
Overseas Equity Fund		2,368,405	2017
Value Fund		4,701,437	2016
Value Fund		1,314,757	2017

7.

Legal and Regulatory Matters:

On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Funds. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Funds will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Fund will be disclosed in the Financial Highlights after the date of payment.

HSBC INVESTOR FAMILY OF FUNDS 49

HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis.
The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”).
Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act.
On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds.
The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate.
The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:
	Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the

50 HSBC INVESTOR FAMILY OF FUNDS

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Investment Adviser Contract Approval (Unaudited) (continued)

Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also took note of the long-term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year.

With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts.

The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year.

The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers.

Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund.

Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds.

The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts.

With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds.

The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers.

The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above.

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HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited) (continued)

Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services.

Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement.

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Table of Shareholder Expenses (Unaudited)—as of April 30, 2010

          As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases or redemption of shares, (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, 2009 through April 30, 2010.

Actual Example

          The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

		Beginning Account Value 11/1/09			Ending Account Value 4/30/10			Expenses Paid During Period* 11/1/09 - 4/30/10			Annualized Expense Ratio During Period 11/1/09 - 4/30/10
Growth Fund	Class A Shares		$	1,000.00		$	1,147.50		$	6.39	1.20	%
	Class B Shares			1,000.00			1,143.00			10.36	1.95	%
	Class C Shares			1,000.00			1,143.80			10.37	1.95	%
	Class I Shares			1,000.00			1,149.40			5.06	0.95	%
International Equity Fund	Class I Shares			1,000.00			1,014.80			4.75	0.95	%
Mid-Cap Fund	Class A Shares			1,000.00			1,214.40			7.41	1.35	%
	Class B Shares			1,000.00			1,211.40			11.51	2.10	%
	Class C Shares			1,000.00			1,210.80			11.51	2.10	%
	Class I Shares			1,000.00			1,217.10			6.05	1.10	%
Opportunity Fund	Class A Shares			1,000.00			1,239.40			8.61	1.55	%
	Class B Shares			1,000.00			1,233.90			12.74	2.30	%
	Class C Shares			1,000.00			1,235.70			12.75	2.30	%
Opportunity Fund (I Shares)	Class I Shares			1,000.00			1,242.70			5.45	0.98	%
Overseas Equity Fund	Class A Shares			1,000.00			1,009.50			8.47	1.70	%
	Class B Shares			1,000.00			1,005.80			12.18	2.45	%
	Class C Shares			1,000.00			1,005.30			12.18	2.45	%
Value Fund	Class A Shares			1,000.00			1,136.30			6.36	1.20	%
	Class B Shares			1,000.00			1,131.90			10.31	1.95	%
	Class C Shares			1,000.00			1,132.00			10.31	1.95	%
	Class I Shares			1,000.00			1,137.90			5.04	0.95	%

* Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).

HSBC INVESTOR FAMILY OF FUNDS 53

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of April 30, 2010 (continued)

Hypothetical Example for Comparison Purposes

          The table below provides information about hypothetical account values and hypothetical expenses based on 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 the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) on purchases and redemptions of shares (if applicable). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

		Beginning Account Value 11/1/09			Ending Account Value 4/30/10			Expenses Paid During Period* 11/1/09 - 4/30/10			Annualized Expense Ratio During Period 11/1/09 - 4/30/10
Growth Fund	Class A Shares		$	1,000.00		$	1,018.84		$	6.01	1.20	%
	Class B Shares			1,000.00			1,015.12			9.74	1.95	%
	Class C Shares			1,000.00			1,015.12			9.74	1.95	%
	Class I Shares			1,000.00			1,020.08			4.76	0.95	%
International Equity Fund	Class I Shares			1,000.00			1,020.08			4.76	0.95	%
Mid-Cap Fund	Class A Shares			1,000.00			1,018.10			6.76	1.35	%
	Class B Shares			1,000.00			1,014.38			10.49	2.10	%
	Class C Shares			1,000.00			1,014.38			10.49	2.10	%
	Class I Shares			1,000.00			1,019.34			5.51	1.10	%
Opportunity Fund	Class A Shares			1,000.00			1,017.11			7.75	1.55	%
	Class B Shares			1,000.00			1,013.39			11.48	2.30	%
	Class C Shares			1,000.00			1,013.39			11.48	2.30	%
Opportunity Fund (I Shares)	Class I Shares			1,000.00			1,019.93			4.91	0.98	%
Overseas Equity Fund	Class A Shares			1,000.00			1,016.36			8.50	1.70	%
	Class B Shares			1,000.00			1,012.65			12.23	2.45	%
	Class C Shares			1,000.00			1,012.65			12.23	2.45	%
Value Fund	Class A Shares			1,000.00			1,018.84			6.01	1.20	%
	Class B Shares			1,000.00			1,015.12			9.74	1.95	%
	Class C Shares			1,000.00			1,015.12			9.74	1.95	%
	Class I Shares			1,000.00			1,020.08			4.76	0.95	%

* 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).

54 HSBC INVESTOR FAMILY OF FUNDS

Other Information:

          Information regarding how the Funds and Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders; (ii) on the Funds’ website at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.

          (i) The Funds and Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Funds’ and Portfolios’ Forms N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Funds’ and Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Funds’ and Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com.

          An investment in a Fund is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

HSBC INVESTOR FAMILY OF FUNDS 55

(This Page Intentionally Left Blank)

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited)

Common Stocks—96.3%
	Shares		Value($)
Consumer Discretionary – 10.4%
Amazon.com, Inc. (a)		11,900		1,631,014
Kohl’s Corp. (a)		20,100		1,105,299
New Oriental Education & Technology Group, Inc. ADR (a)		7,600		711,132
O’Reilly Automotive, Inc. (a)		22,300		1,090,247
Priceline.com, Inc. (a)		7,600		1,991,580
Target Corp.		18,300		1,040,721
The Estee Lauder Cos., Inc., Class A		9,400		619,648
Urban Outfitters, Inc. (a)		38,800		1,455,388
				9,645,029
Consumer Staples – 4.5%
Costco Wholesale Corp.		22,300		1,317,484
PepsiCo, Inc.		14,800		965,256
Staples, Inc.		38,400		903,552
Yum! Brands, Inc.		22,900		971,418
				4,157,710
Energy – 9.0%
Dresser-Rand Group, Inc. (a)		29,500		1,040,760
EOG Resources, Inc.		8,500		953,020
First Solar, Inc. (a)		4,800		689,040
FMC Technologies, Inc. (a)		14,500		981,505
Occidental Petroleum Corp.		10,900		966,394
Peabody Energy Corp.		24,500		1,144,640
Schlumberger Ltd.		35,900		2,563,978
				8,339,337
Financials – 7.1%
Goldman Sachs Group, Inc.		12,500		1,815,000
IntercontinentalExchange, Inc. (a)		7,700		898,051
Invesco Ltd.		16,800		386,232
JP Morgan Chase & Co.		61,000		2,597,380
The Charles Schwab Corp.		46,400		895,056
				6,591,719
Health Care – 8.9%
Celgene Corp. (a)		22,400		1,387,680
Express Scripts, Inc. (a)		12,800		1,281,664
Gilead Sciences, Inc. (a)		11,600		460,172
Medco Health Solutions, Inc. (a)		40,600		2,392,152
Shire plc ADR		13,700		902,008
Teva Pharmaceutical Industries Ltd. ADR		31,600		1,855,868
				8,279,544
Industrials – 12.9%
C.H. Robinson Worldwide, Inc.		16,100		970,830
Danaher Corp.		29,400		2,477,832
Deere & Co.		16,000		957,120
Flowserve Corp.		7,900		905,182
Fluor Corp.		16,600		877,144
Illinois Tool Works, Inc.		27,600		1,410,360
Union Pacific Corp.		33,600		2,542,176
United Technologies Corp.		25,200		1,888,740
				12,029,384

Common Stocks, continued
	Shares		Value($)
Information Technology – 40.2%
Agilent Technologies, Inc. (a)		23,400		848,484
Apple, Inc. (a)		16,800		4,386,816
Baidu, Inc. ADR (a)		1,565		1,078,755
Broadcom Corp., Class A		27,400		945,026
Cisco Systems, Inc. (a)		100,200		2,697,384
Citrix Systems, Inc. (a)		19,300		907,100
Cognizant Technology Solutions Corp. (a)		59,700		3,055,446
Dell, Inc. (a)		60,100		972,418
EMC Corp. (a)		58,600		1,113,986
Equinix, Inc. (a)		13,900		1,399,035
Google, Inc., Class A (a)		4,000		2,101,760
Hewlett-Packard Co.		63,000		3,274,110
Juniper Networks, Inc. (a)		17,700		502,857
Lam Research Corp. (a)		24,800		1,005,640
Linear Technology Corp.		27,400		823,644
Marvell Technology Group Ltd. (a)		65,000		1,342,250
MasterCard, Inc., Class A		5,000		1,240,200
Microsoft Corp.		51,500		1,572,810
Oracle Corp.		72,500		1,873,400
QUALCOMM, Inc.		54,300		2,103,582
Salesforce.com, Inc. (a)		5,400		462,240
Visa, Inc., Class A		35,600		3,212,188
VMware, Inc., Class A (a)		7,900		486,956
				37,406,087
Materials – 3.3%
Cliffs Natural Resources, Inc.		20,900		1,306,877
Ecolab, Inc.		17,900		874,236
Freeport-McMoRan Copper & Gold, Inc.		11,700		883,701
				3,064,814
TOTAL COMMON STOCKS (COST $74,469,535)				89,513,624

Investment Companies—3.0%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)	2,770,934	2,770,934
TOTAL INVESTMENT COMPANIES (COST $2,770,934)		2,770,934
TOTAL INVESTMENTS (COST $77,240,469) — 99.3%		92,284,558

	Percentages indicated are based on net assets of $92,928,102.
ADR —	American Depositary Receipt
PLC  —	Public Limited Company
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 57

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited)

Common Stocks—97.6%
	Shares		Value($)
Australia – 4.6%
Australia & New Zealand Banking Group Ltd.		122,800		2,719,353
BHP Billiton Ltd.		36,500		1,334,019
Boral Ltd.		53,500		289,161
Macquarie Group Ltd.		18,300		834,303
National Australia Bank Ltd.		113,565		2,900,842
Telstra Corp. Ltd.		513,500		1,504,179
				9,581,857
Austria – 0.4%
OMV AG		21,700		775,309
Belgium – 0.3%
KBC Groep NV (a)		15,200		679,995
Brazil – 0.5%
Banco Do Brasil SA		60,000		1,035,579
Canada – 4.2%
Encana Corp.		16,000		529,394
Industrial Alliance Insurance and Financial Services, Inc.		26,100		900,585
National Bank of Canada		26,600		1,626,647
Nexen, Inc.		78,892		1,918,890
Penn West Energy Trust		35,660		718,818
Suncor Energy, Inc.		62,428		2,136,261
WestJet Airlines Ltd. (a)		59,300		788,331
				8,618,926
Denmark – 2.1%
Carlsberg A/S, Class B		25,625		2,071,326
Danske Bank A/S (a)		84,800		2,214,274
				4,285,600
Finland – 1.8%
Nokia Oyj		296,400		3,623,217
France – 13.3%
BNP Paribas SA		60,698		4,168,618
Bouygues SA		20,200		1,000,787
Casino Guichard-Perrachon SA		17,000		1,500,466
Compagnie de Saint-Gobain		45,800		2,260,669
Compagnie Generale de Geophysique-Veritas (a)		31,800		957,266
Credit Agricole SA		60,739		868,163
Electricite de France		42,900		2,298,902
France Telecom SA		113,600		2,486,598
Klepierre		25,400		875,190
Lagardere S.C.A.		46,400		1,871,226
Sanofi-Aventis		52,700		3,594,690
Societe Generale		38,481		2,054,612
Vallourec SA		4,772		950,390
Vivendi		100,220		2,628,703
				27,516,280
Germany – 8.5%
Allianz SE		35,000		4,001,898
Bayer AG		45,800		2,935,568
Bayerische Motoren Werke AG		60,400		2,983,631
Deutsche Bank AG		38,200		2,637,899
E.ON AG		91,100		3,368,846

Common Stocks, continued
	Shares		Value($)
Germany, continued
Muenchener Rueckversicherungs- Gesellschaft AG		5,100		720,030
Thyssenkrupp AG		29,000		942,886
				17,590,758
Hong Kong – 1.5%
Esprit Holdings Ltd.		259,477		1,858,754
New World Development Co. Ltd.		720,509		1,278,015
				3,136,769
India – 0.0%
State Bank of India GDR		450		45,812
Italy – 3.6%
ENI SpA		81,100		1,812,315
Telecom Italia RSP (a)		920,000		1,038,109
Telecom Italia SpA (a)		1,289,400		1,802,496
UniCredit SpA (a)		1,048,600		2,747,742
				7,400,662
Japan – 23.0%
AEON Co. Ltd.		81,200		929,864
Air Water, Inc.		26,000		287,744
Asahi Breweries Ltd.		73,000		1,311,537
Dowa Holdings Co. Ltd.		89,000		494,163
East Japan Railway Co.		11,800		789,473
Elpida Memory, Inc. (a)		47,200		1,005,648
Isuzu Motors Ltd. (a)		382,000		1,215,582
ITOCHU Corp.		179,000		1,551,043
Japan Tobacco, Inc.		743		2,575,237
JFE Holdings, Inc.		44,000		1,569,374
JX Holdings, Inc. (a)		187,000		1,043,314
KDDI Corp.		279		1,345,420
KONAMI Corp.		11,700		227,028
Konica Minolta Holdings, Inc.		48,000		607,259
Mitsubishi Corp.		110,900		2,627,407
Mitsubishi Gas Chemical Co., Inc.		148,000		892,577
Mitsubishi Materials Corp. (a)		245,000		734,465
Mitsui & Co. Ltd.		149,000		2,239,693
Mitsui Fudosan Co. Ltd.		142,000		2,630,156
Murata Manufacturing Co. Ltd.		37,200		2,201,798
NAMCO BANDAI Holdings, Inc.		102,800		1,025,935
NGK Spark Plug Co. Ltd.		66,000		895,726
Nippon Telegraph & Telephone Corp.		63,000		2,564,735
Nissan Motor Co. Ltd. (a)		371,400		3,232,126
Sharp Corp.		134,000		1,735,847
Sony Corp.		59,110		2,024,190
Sumitomo Mitsui Financial Group, Inc.		69,800		2,308,783
Sumitomo Realty & Development Co. Ltd.		27,000		554,100
Takashimaya Co. Ltd.		101,000		957,692
The Furukawa Electric Co. Ltd.		123,000		609,791
The Tokyo Electric Power Co., Inc.		72,700		1,824,800
Tokyo Gas Co. Ltd.		221,000		939,302
Toshiba Corp. (a)		441,000		2,542,570
				47,494,379
Jersey – 0.3%
Informa plc		94,200		568,462

58 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued)

Common Stocks, continued
	Shares		Value($)
Kazakhstan – 0.4%
KazMunaiGas Exploration Production GDR		31,650		773,883
Netherlands – 2.1%
Koninklijke DSM NV		28,200		1,259,455
Randstad Holding NV (a)		60,200		3,049,905
				4,309,360
New Zealand – 0.3%
Telecom Corp. of New Zealand Ltd.		442,923		686,556
Norway – 0.4%
Petroleum Geo-Services ASA (a)		54,750		753,837
Russian Federation – 0.3%
Gazprom OAO ADR		25,100		576,201
South Korea – 2.0%
Hynix Semiconductor, Inc. (a)		40,400		1,022,683
KB Financial Group, Inc. ADR		35,779		1,746,015
Samsung Electronics Co. Ltd., Preferred		2,900		1,370,739
				4,139,437
Spain – 3.2%
Banco Santander SA		325,469		4,137,960
Telefonica SA		106,700		2,414,892
				6,552,852
Sweden – 0.7%
Electrolux AB, B Shares		58,600		1,507,596
Switzerland – 1.6%
Novartis AG		63,940		3,261,026
Taiwan – 1.0%
AU Optronics Corp.		1,134,030		1,306,945
Compal Electronics, Inc.		804		1,118
United Microelectronics Corp. (a)		1,470,000		739,773
				2,047,836
Turkey – 0.7%
Turkiye Garanti Bankasi AS		308,700		1,496,110
United Kingdom – 20.8%
AstraZeneca plc		77,900		3,441,577
BAE Systems plc		248,700		1,303,277
Barclays plc		553,900		2,844,814
BP plc		544,700		4,750,039
Imperial Tobacco Group plc		33,300		948,495
Inchcape plc (a)		1,239,400		648,853
Kazakhmys plc		52,000		1,101,476
Marks & Spencer Group plc		370,600		2,072,053
Old Mutual plc (a)		1,161,500		2,049,562
Rentokil Initial plc (a)		273,400		530,160
Rio Tinto plc		62,900		3,251,424
Rolls-Royce Group plc		289,600		2,551,380
Royal Dutch Shell plc, A Shares		200,987		6,305,823
Thomas Cook Group plc		175,500		665,648
Travis Perkins plc (a)		65,900		850,987
Tui Travel plc		208,700		890,202

Common Stocks, continued
	Shares		Value($)
United Kingdom, continued
Vodafone Group plc		2,629,958		5,826,644
Xstrata plc		181,550		2,977,634
				43,010,048
TOTAL COMMON STOCKS (COST $207,498,152)				201,468,347

Investment Company—1.0%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)	2,025,228	2,025,228
TOTAL INVESTMENT COMPANIES (COST $2,025,228)		2,025,228
TOTAL INVESTMENTS (COST $209,523,380) — 98.6%		203,493,575

	Percentages indicated are based on net assets of $206,344,851.
ADR  —	American Depositary Receipt
GDR  —	Global Depositary Receipt
PLC   —	Public Limited Company
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 59

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited) (continued)

At April 30, 2010 the portfolio’s open foreign currency contracts were as follows:

Currency	Delivery Date	Amount (Local Currency)	Contract Value (U.S. Dollars) ($)	Value ($)	Unrealized Appreciation/ (Depreciation) ($)
SHORT CONTRACTS
European Euro	7/15/2010	3,283,000	4,415,537	4,371,540	43,997
					43,997

The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2010:

Industry	Percent of Net Assets
Aerospace & Defense	1.9	%
Airlines	0.4	%
Auto Components	0.4	%
Automobiles	3.6	%
Beverages	1.6	%
Building Products	1.1	%
Capital Markets	1.7	%
Chemicals	1.2	%
Commercial Banks	15.2	%
Commercial Services & Supplies	0.3	%
Communications Equipment	1.8	%
Computers & Peripherals	1.2	%
Construction & Engineering	0.5	%
Construction Materials	0.1	%
Distributors	0.3	%
Diversified Financial Services	0.8	%
Diversified Telecommunication Services	6.1	%
Electric Utilities	3.6	%
Electrical Equipment	0.3	%
Electronic Equipment, Instruments & Components	1.7	%
Energy Equipment & Services	0.8	%
Food & Staples Retailing	1.2	%
Gas Utilities	0.5	%

Industry	Percent of Net Assets
Hotels, Restaurants & Leisure	0.8	%
Household Durables	2.6	%
Insurance	3.7	%
Leisure Equipment & Products	0.5	%
Machinery	0.5	%
Media	2.5	%
Metals & Mining	6.0	%
Investment Companies	1.0	%
Multiline Retail	1.5	%
Office Electronics	0.3	%
Oil, Gas & Consumable Fuels	10.3	%
Pharmaceuticals	6.4	%
Professional Services	1.5	%
Real Estate Investment Trusts (REITS)	0.4	%
Real Estate Management & Development	2.2	%
Road & Rail	0.4	%
Semiconductors & Semiconductor Equipment	2.0	%
Software	0.1	%
Specialty Retail	0.9	%
Tobacco	1.7	%
Trading Companies & Distributors	3.5	%
Wireless Telecommunication Services	3.5	%
Total Investments	98.6	%

60 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited)

Common Stocks—96.9%
	Shares		Value($)
Consumer Discretionary – 14.7%
American Eagle Outfitters, Inc.		135,050		2,270,190
Ctrip.com International Ltd. ADR (a)		61,500		2,245,980
DeVry, Inc.		22,550		1,406,895
Discovery Communications, Inc., Class A (a)		56,950		2,203,965
Gentex Corp.		99,000		2,127,510
Hibbett Sports, Inc. (a)		81,550		2,242,625
Hospitality Properties Trust		53,300		1,411,917
O’Reilly Automotive, Inc. (a)		44,200		2,160,938
Scientific Games Corp., Class A (a)		139,700		2,054,987
WMS Industries, Inc. (a)		48,550		2,428,471
				20,553,478
Consumer Staples – 3.4%
Church & Dwight Co., Inc.		33,500		2,319,875
Ralcorp Holdings, Inc. (a)		35,600		2,369,180
				4,689,055
Energy – 11.7%
Consol Energy, Inc.		77,880		3,479,678
Denbury Resources, Inc. (a)		173,900		3,330,185
Ensco International plc ADR		57,700		2,722,286
Exterran Holdings, Inc. (a)		99,800		2,909,170
Massey Energy Co.		105,350		3,858,971
				16,300,290
Financials – 4.7%
Credicorp Ltd.		22,550		1,958,693
First Horizon National Corp. (a)		1		13
Huntington Bancshares, Inc.		93,800		635,026
MSCI, Inc., Class A (a)		43,400		1,503,810
Waddell & Reed Financial, Inc., Class A		68,000		2,524,160
				6,621,702
Health Care – 19.5%
Alexion Pharmaceuticals, Inc. (a)		92,250		5,062,680
Charles River Laboratories International, Inc. (a)		69,400		2,323,512
DaVita, Inc. (a)		48,800		3,046,584
Elan Corp. plc ADR (a)		272,300		1,829,856
Hill-Rom Holdings, Inc.		70,150		2,224,456
IDEXX Laboratories, Inc. (a)		45,200		2,989,528
Illumina, Inc. (a)		33,100		1,385,897
Life Technologies Corp. (a)		47,000		2,571,370
MEDNAX, Inc. (a)		24,237		1,331,581
Mettler-Toledo International, Inc. (a)		25,950		3,256,206
Santarus, Inc. (a)		186,000		610,080
Skilled Healthcare Group, Inc., Class A (a)		103,400		691,746
				27,323,496
Industrials – 14.1%
AMETEK, Inc.		55,600		2,404,700
BE Aerospace, Inc. (a)		108,600		3,226,506
Crane Co.		63,200		2,271,408
IDEX Corp.		74,800		2,513,280
Joy Global, Inc.		27,450		1,559,435
Landstar System, Inc.		47,000		2,078,340
Navigant Consulting, Inc. (a)		125,450		1,615,796

Common Stocks, continued
	Shares		Value($)
Industrials, continued
Waste Connections, Inc. (a)		57,300		2,050,767
WESCO International, Inc. (a)		47,250		1,919,295
				19,639,527
Information Technology – 22.3%
Alliance Data Systems Corp. (a)		45,600		3,422,736
Altera Corp.		73,400		1,861,424
BMC Software, Inc. (a)		66,550		2,619,408
Brocade Communications Systems, Inc. (a)		291,500		1,891,835
Check Point Software Technologies Ltd. (a)		77,250		2,751,645
Citrix Systems, Inc. (a)		44,200		2,077,400
Comverse Technology, Inc. (a)		161,400		1,481,652
LSI Corp. (a)		434,000		2,612,680
Maxim Integrated Products, Inc.		27,150		527,253
Nuance Communications, Inc. (a)		200,250		3,658,567
ON Semiconductor Corp. (a)		156,800		1,244,992
Polycom, Inc. (a)		44,150		1,437,083
Salesforce.com, Inc. (a)		33,075		2,831,220
VeriFone Systems, Inc. (a)		64,500		1,227,435
VeriSign, Inc. (a)		55,950		1,525,756
				31,171,086
Materials – 4.4%
Celanese Corp., Series A		69,100		2,210,509
Compass Minerals International, Inc.		16,800		1,265,208
Crown Holdings, Inc. (a)		104,600		2,719,600
				6,195,317
Telecommunication Services – 2.1%
NII Holdings, Inc. (a)		67,700		2,871,834
TOTAL COMMON STOCKS (COST $113,096,489)				135,365,785
Investment Companies—2.7%
Northern Institutional Government Select Portfolio, Shares Class, 0.04% (b)		3,832,877		3,832,877
TOTAL INVESTMENT COMPANIES (COST $3,832,877)				3,832,877
TOTAL INVESTMENTS (COST $116,929,366) — 99.6%				139,198,662

	Percentages indicated are based on net assets of $139,767,158.
ADR —	American Depositary Receipt
PLC —	Public Limited Company
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 61

HSBC INVESTOR VALUE PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2010 (Unaudited)

Common Stocks—96.7%
	Shares		Value($)
Consumer Discretionary – 4.8%
CBS Corp., Class B		24,450		396,335
Viacom, Inc., Class B (a)		56,500		1,996,145
				2,392,480
Consumer Staples – 7.8%
CVS Caremark Corp.		25,900		956,487
Kimberly-Clark Corp.		19,900		1,219,074
Kroger Co. (The)		28,200		626,886
Philip Morris International, Inc.		22,600		1,109,208
				3,911,655
Energy – 17.0%
Apache Corp.		19,400		1,974,144
Canadian Natural Resources Ltd.		16,000		1,231,040
ConocoPhillips		9,471		560,588
Halliburton Co.		21,500		658,975
Hess Corp.		12,100		768,955
Noble Energy, Inc.		19,500		1,489,800
Occidental Petroleum Corp.		12,000		1,063,920
Talisman Energy, Inc.		46,600		794,064
				8,541,486
Financials – 21.3%
Aon Corp.		38,500		1,634,710
Citigroup, Inc. (a)		277,000		1,210,490
Genworth Financial, Inc., Class A (a)		50,800		839,216
JP Morgan Chase & Co.		22,150		943,147
Loews Corp.		41,240		1,535,778
MetLife, Inc.		42,000		1,914,360
The Hartford Financial Services Group, Inc.		43,900		1,254,223
Wells Fargo & Co.		42,700		1,413,797
				10,745,721
Health Care – 12.9%
Aetna, Inc.		20,800		614,640
Amgen, Inc. (a)		33,700		1,933,032
Merck & Co., Inc.		37,600		1,317,504
Pfizer, Inc.		92,000		1,538,240
Sanofi-Aventis ADR		33,000		1,125,630
				6,529,046
Industrials – 10.3%
Ingersoll-Rand plc		23,900		883,822
Lockheed Martin Corp.		18,400		1,561,976
Pitney Bowes, Inc.		39,500		1,003,300
Raytheon Co.		16,900		985,270
Union Pacific Corp.		10,000		756,600
				5,190,968
Information Technology – 10.1%
CA, Inc.		101,200		2,308,372
Microsoft Corp.		21,700		662,718
Motorola, Inc. (a)		297,700		2,104,739
				5,075,829
Materials – 8.4%
AngloGold Ashanti Ltd. ADR		40,727		1,704,832
Barrick Gold Corp.		48,000		2,090,400

Common Stocks, continued
	Shares		Value($)
Materials, continued
The Mosaic Co.		8,600		439,804
				4,235,036
Telecommunication Services – 2.7%
AT&T, Inc.		26,600		693,196
Verizon Communications, Inc.		22,700		655,803
				1,348,999
Utilities – 1.6%
NRG Energy, Inc. (a)		33,800		816,946
TOTAL COMMON STOCKS (COST $46,296,108)				48,788,166
Investment Companies—3.0%
Northern Institutional Government Select Portfolio, Shares Class, 0.04% (b)		1,485,961		1,485,961
TOTAL INVESTMENT COMPANIES (COST $1,485,961)				1,485,961
TOTAL INVESTMENTS (COST $47,782,069) — 99.7%				50,274,127

	Percentages indicated are based on net assets of $50,438,531.
ADR —	American Depositary Receipt
PLC —	Public Limited Company
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

62 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

(This Page Intentionally Left Blank)

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of April 30, 2010 (Unaudited)

	Growth Portfolio		International Equity Portfolio		Opportunity Portfolio		Value Portfolio
Assets:
Investments in non-affiliates, at value	$	92,284,558	$	203,493,575	$	139,198,662	$	50,274,127
Foreign currency, at value		—		1,027,557		—		—
Unrealized appreciation on foreign currency exchange contracts		—		43,997		—		—
Dividends receivable		13,904		519,836		67,656		32,935
Receivable for investments sold		2,544,074		1,591,410		698,473		162,668
Prepaid expenses and other assets		441		68		886		231
Total Assets		94,842,977		206,676,443		139,965,677		50,469,961
Liabilities:
Payable for investments purchased		1,857,669		156,907		86,396		—
Accrued expenses and other liabilities:
Investment Management		44,465		122,845		93,325		21,826
Administration		1,596		3,664		2,408		859
Compliance Services		17		235		19		9
Custodian		1,825		22,589		2,359		706
Trustee		75		237		107		42
Other		9,228		25,115		13,905		7,988
Total Liabilities		1,914,875		331,592		198,519		31,430
Applicable to investors’ beneficial interest	$	92,928,102	$	206,344,851	$	139,767,158	$	50,438,531
Total Investments, at cost	$	77,240,469	$	209,523,380	$	116,929,366	$	47,782,069
Foreign currency, at cost	$	—	$	1,030,180	$	—	$	—

64 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the six months ended April 30, 2010 (Unaudited)

	Growth Portfolio			International Equity Portfolio			Opportunity Portfolio			Value Portfolio
Investment Income:
Dividends	$	293,975		$	2,400,128		$	300,881		$	380,676
Foreign tax withholding		—			(216,269	)		—			(1,578	)
Total Investment Income (Loss)		293,975			2,183,859			300,881			379,098
Expenses:
Investment Management		260,336			740,820			542,314			130,387
Administration		9,314			22,048			13,977			5,114
Accounting		21,877			43,508			22,042			21,986
Compliance Services		188			307			274			103
Custodian		3,785			94,317			6,190			1,592
Printing		2,282			5,457			3,161			1,260
Professional		2,356			3,988			3,511			1,660
Trustee		557			1,358			817			310
Other		1,503			3,301			2,252			850
Total Expenses		302,198			915,104			594,538			163,262
Net Investment Income (Loss)		(8,223	)		1,268,755			(293,657	)		215,836
Net Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investments and foreign currency transactions		4,524,536			(2,839,558	)		9,087,545			299,115
Change in unrealized appreciation/depreciation from investments and foreign currencies		8,343,374			5,787,247			21,086,436			6,091,061
Net realized/unrealized gains/(losses) from investments and foreign currency transactions		12,867,910			2,947,689			30,173,981			6,390,176
Change In Net Assets Resulting From Operations	$	12,859,687		$	4,216,444		$	29,880,324		$	6,606,012

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 65

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets

	Growth Portfolio						International Equity Portfolio
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	(8,223	)	$	136,286		$	1,268,755		$	4,063,044
Net realized gains (losses) from investments and foreign currency transactions		4,524,536			(12,681,042	)		(2,839,558	)		(72,712,532	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		8,343,374			26,751,782			5,787,247			109,291,830
Change in net assets resulting from operations		12,859,687			14,207,026			4,216,444			40,642,342
Proceeds from contributions		4,565,447			8,763,453			11,526,713			23,984,676
Value of withdrawals		(12,659,916	)		(16,749,107	)		(26,546,511	)		(46,787,723	)
Change in net assets resulting from transactions in investors’ beneficial interest		(8,094,469	)		(7,985,654	)		(15,019,798	)		(22,803,047	)
Change in net assets		4,765,218			6,221,372			(10,803,354	)		17,839,295
Net Assets:
Beginning of period		88,162,884			81,941,512			217,148,205			199,308,910
End of period	$	92,928,102		$	88,162,884		$	206,344,851		$	217,148,205

66 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, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	(293,657	)	$	(424,078	)	$	215,836		$	644,544
Net realized gains (losses) from investment and foreign currency transactions		9,087,545			(15,580,861	)		299,115			(1,577,886	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		21,086,436			31,798,950			6,091,061			9,018,297
Change in net assets resulting from operations		29,880,324			15,794,011			6,606,012			8,084,955
Proceeds from contributions		4,576,029			8,367,302			2,934,777			4,852,585
Value of withdrawals		(24,437,516	)		(22,382,631	)		(8,788,414	)		(12,914,556	)
Change in net assets resulting from transactions in investors’ beneficial interest		(19,861,487	)		(14,015,329	)		(5,853,637	)		(8,061,971	)
Change in net assets		10,018,837			1,778,682			752,375			22,984
Net Assets:
Beginning of period		129,748,321			127,969,639			49,686,156			49,663,172
End of period	$	139,767,158		$	129,748,321		$	50,438,531		$	49,686,156

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 67

HSBC INVESTOR PORTFOLIOS

Financial Highlights

			Ratio/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)
GROWTH PORTFOLIO
Year Ended October 31, 2005	13.59	%(d)		$	49,415	0.63	%(d)	0.77	%(d)	0.68	%	79.54	%
Year Ended October 31, 2006	7.53	%			59,828	0.69	%	0.38	%	0.69	%	75.06	%
Year Ended October 31, 2007	31.11	%			89,686	0.62	%	0.45	%	0.62	%	57.04	%
Year Ended October 31, 2008	(37.75	)%(e)			81,942	0.62	%	0.19	%	0.62	%	157.87	%
Year Ended October 31, 2009	19.31	%			88,163	0.69	%	0.17	%	0.69	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	15.11	%			92,928	0.67	%	(0.02	)%	0.67	%	42.87	%
INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2005	19.54	%		$	230,230	0.84	%	1.92	%	0.84	%	31.32	%
Year Ended October 31, 2006	32.79	%			333,755	0.86	%	2.03	%	0.86	%	33.39	%
Year Ended October 31, 2007	25.17	%			455,062	0.79	%	2.16	%	0.79	%	26.08	%
Year Ended October 31, 2008	(51.79	)%			199,309	0.76	%	2.65	%	0.76	%	28.98	%
Year Ended October 31, 2009	24.16	%			217,148	0.88	%	2.23	%	0.88	%	58.31	%
Six Months Ended April 30, 2010 (Unaudited)	1.62	%			206,345	0.86	%	1.19	%	0.86	%	35.03	%
OPPORTUNITY PORTFOLIO
Year Ended October 31, 2005	14.35	%(d)		$	218,778	0.85	%(d)	(0.45	)%(d)	0.90	%	63.95	%
Year Ended October 31, 2006	19.54	%			241,495	0.91	%	(0.40	)%	0.91	%	60.83	%
Year Ended October 31, 2007	30.54	%			224,268	0.91	%	(0.55	)%	0.91	%	69.41	%
Year Ended October 31, 2008	(35.30	)%			127,970	0.87	%	(0.46	)%	0.87	%	80.42	%
Year Ended October 31, 2009	15.41	%			129,748	0.90	%	(0.37	)%	0.90	%	64.91	%
Six Months Ended April 30, 2010 (Unaudited)	24.35	%			139,767	0.88	%	(0.43	)%	0.88	%	26.31	%
VALUE PORTFOLIO
Year Ended October 31, 2005	15.23	%(d)		$	54,150	0.64	%(d)	1.15	%(d)	0.69	%	16.45	%
Year Ended October 31, 2006	22.21	%			67,432	0.71	%	1.23	%	0.71	%	20.63	%
Year Ended October 31, 2007	10.28	%			82,658	0.66	%	1.29	%	0.66	%	18.67	%
Year Ended October 31, 2008	(39.91	)%			49,663	0.64	%	1.54	%	0.64	%	24.61	%
Year Ended October 31, 2009	20.05	%			49,686	0.68	%	1.41	%	0.68	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.96	%			50,439	0.66	%	0.87	%	0.66	%	14.64	%

(a)	Not annualized for period less than one year.
(b)	Annualized for periods less than one year.
(c)	During each period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(d)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.05%, 0.04% and 0.05% for the Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively.
(e)	During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Growth Portfolio related to violations of certain investment policies and limitations. The corresponding impact to total return was 0.08%.

68 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2010 (Unaudited)

1.	Organization:
	The HSBC Investor Portfolios (the “Portfolio Trust’’), is an open-end management investment company organized as a New York trust under the laws of the State of New York on November 1, 1994. The Portfolio Trust contains the following master funds (individually a “Portfolio,’’ collectively the “Portfolios’’):

Portfolio	Short Name
HSBC Investor Growth Portfolio	Growth Portfolio
HSBC Investor International Equity Portfolio	International Equity Portfolio
HSBC Investor Opportunity Portfolio	Opportunity Portfolio
HSBC Investor Value Portfolio	Value Portfolio

	The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios.
	The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately.
	Under the Portfolio Trust’s organizational documents, the Portfolio Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolio Trust may enter into contracts with its service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolio Trust expects the risk of loss to be remote.
2.	Significant Accounting Policies:
	The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP’’). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report.
	Securities Valuation:
	The Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described below.
	Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market. Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity

HSBC INVESTOR PORTFOLIOS 69

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges.

          Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. Repurchase agreements are valued at original cost.

Investment Transactions and Related Income:

          Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.

Foreign Currency Translation:

          The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.

Expense Allocations:

          Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis.

Federal Income Taxes:

          Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies.

          Management of the Portfolios has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.

New Accounting Pronouncements:

          In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Portfolio Trust’s financial statements and related disclosures.

Derivative Instruments

          All open derivative positions at period end are reflected on the Portfolio’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Portfolios, including the primary underlying risk exposures related to each instrument type.

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

Foreign Currency Exchange Contracts:

          Each Portfolio may enter into foreign currency exchange contracts. The Portfolios enter into foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. The contract amount of foreign currency exchange contracts outstanding was $4.4 million as of April 30, 2010. The monthly average contract amount for these contracts was $2.8 million for the period ended April 30, 2010.

Futures Contracts:

          Each Portfolio may invest in futures contracts. The Portfolios use futures contracts for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, a Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. A Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, a Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolios and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2010, the Portfolios did not hold any futures contracts.

Summary of Derivative Instruments:

          The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of April 30, 2010:

	Asset Derivatives		Liability Derivatives
Primary Risk Exposure	Statements of Assets and Liabilities Location	Total Fair Value*	Statements of Assets and Liabilities Location	Total Fair Value*
Foreign Currency Exchange Contracts	Unrealized appreciation on foreign currency exchange contracts	$43,997	Unrealized depreciation on foreign currency exchange contracts	$—

	*	Total Fair Value is presented by Primary Risk Exposure. For foreign currency exchange contracts, such amounts represent the unrealized gain/appreciation (for asset derivatives) or loss/depreciation (for liability derivatives).
The derivative instruments had the following impact on the Statements of Operations for the International Equity Portfolio for the period ended April 30, 2010:

Primary Risk Exposure	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation/Depreciation on Derivatives Recognized in Income
Foreign Currency Exchange Contracts	Net realized gains (losses) from investments and foreign currency transactions/change in unrealized appreciation/depreciation from investments and foreign currencies	$(22,708)	$49,058

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

3.	Investment Valuation Summary:
	The valuation techniques employed by the Portfolios, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Portfolios’ investments are summarized in the three broad levels listed below:
		•	Level 1: quoted prices in active markets for identical assets
		•	Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)
		•	Level 3: significant unobservable inputs (including a Portfolio’s own assumptions in determining the fair value of investments)
	The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
	The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the Portfolios’ investments based upon three levels defined above:

	LEVEL 1		LEVEL 2		LEVEL 3		Total
Growth Portfolio
Investment Securities:
Common Stocks (a)	$	89,513,624	$	—	$	—	$	89,513,624
Investment Companies		2,770,934		—		—		2,770,934
Total Investments	$	92,284,558	$	—	$	—	$	92,284,558
International Equity Portfolio
Investment Securities:
Common Stocks: (+)
Brazil	$	1,035,579	$	—	$	—	$	1,035,579
Canada		8,618,926		—		—		8,618,926
South Korea		1,746,015		2,393,422		—		4,139,437
Spain		4,137,960		2,414,892		—		6,552,852
United Kingdom		3,251,424		39,758,624		—		43,010,048
All other Common Stocks (a)(b)		—		138,111,505		—		138,111,505
Investment Companies		2,025,228		—		—		2,025,228
Total Investment Securities		20,815,132		182,678,443		—		203,493,575
Other Financial Instruments*		—		43,997		—		43,997
Total Investments	$	20,815,132	$	182,722,440	$	—	$	203,537,572
Opportunity Portfolio
Investment Securities:
Common Stocks (a)	$	135,365,785	$	—	$	—	$	135,365,785
Investment Companies		3,832,877		—		—		3,832,877
Total Investments	$	139,198,662	$	—	$	—	$	139,198,662
Value Portfolio
Investment Securities:
Common Stocks (a)	$	48,788,166	$	—	$	—	$	48,788,166
Investment Companies		1,485,961		—		—		1,485,961
Total Investments	$	50,274,127	$	—	$	—	$	50,274,127

*	Other financial instruments would include any derivative instruments, such as any currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment.
(a)	For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments.
(b)	For detailed country descriptions, see the accompanying Schedules of Portfolio Investments.
(+)	Based on the domicile of the security issuer.

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

4.	Related Party Transactions and Other Agreements:
	Investment Management:
	HSBC Global Asset Management (USA) Inc. (“HSBC’’ or the “Investment Adviser’’), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Winslow Capital Management, Inc., AllianceBernstein L.P., Westfield Capital Management Company, L.P. and NWQ Investment Management Company, LLC serve as Investment Sub-Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios.
	For their services, the Investment Adviser and Winslow Capital Management, Inc. (“Winslow”) receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of all Sub-Adviser serviced funds and separate accounts affiliated with HSBC:	Fee Rate*
Up to $250 million	0.575%
In excess of $250 million but not exceeding $500 million	0.525%
In excess of $500 million but not exceeding $750 million	0.475%
In excess of $750 million but not exceeding $1 billion	0.425%
In excess of $1 billion	0.375%

	*	The Growth Portfolio may pay the Investment Adviser and Winslow an aggregate maximum fee of up to 0.68%. Currently, the Investment Adviser’s contractual fee is 0.175% and Winslow’s maximum contractual fee is 0.40%. Accordingly, the current aggregate maximum fee rate is 0.575%.
For their services, the Investment Adviser and AllianceBernstein L.P. receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of:	Fee Rate
Up to $10 million	1.015%
In excess of $10 million but not exceeding $25 million	0.925%
In excess of $25 million but not exceeding $50 million	0.79%
In excess of $50 million but not exceeding $100 million	0.70%
In excess of $100 million	0.61%

          For their services, the Investment Adviser and Westfield Capital Management Company, L.P. receive in aggregate, a fee, accrued daily and paid monthly, at an annual rate of 0.80% of the Opportunity Portfolio’s average daily net assets.

          For their services, the Investment Adviser and NWQ Investment Management Company, LLC receive in aggregate, from the Value Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $500 million	0.525%
In excess of $500 million but not exceeding $1 billion	0.475%
In excess of $1 billion	0.425%

          Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time.

Administration:

          HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios (as well as the other funds in the HSBC Investor Family of Funds) a fee, accrued daily and paid monthly at annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $10 billion	0.0550%
In excess of $10 billion but not exceeding $20 billion	0.0350%
In excess of $20 billion but not exceeding $50 billion	0.0275%
In excess of $50 billion	0.0250%

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

	The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and HSBC Investor Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by the HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios a master-feeder structure.
	Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio’’), a wholly-owned subsidiary of Citigroup, Inc., serves as the Portfolio Trust’s Sub-Administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points), which is retained by HSBC.
	Under a Compliance Services Agreement between the Portfolio Trust and the other HSBC Investor Funds (the “Trusts”) and Citi Ohio (the “CCO Agreement’’), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $134,557 for the period ended April 30, 2010, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.’’ Citi Ohio pays the salary and other compensation earned by individuals as employees of Citi Ohio.
	Fund Accounting and Trustees:
	Citi Ohio provides fund accounting services for the Portfolio Trust. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses that is accrued daily and paid monthly.
	Each non-interested Trustee is compensated with a $60,000 annual Board retainer for services as a Trustee of the HSBC Investor Family of Funds (or the “Trusts”), as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.
5.	Investment Transactions:
	Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows:

Portfolio Name	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)
Growth Portfolio	$	37,816,332	$	45,869,435
International Equity Portfolio		72,692,064		87,789,444
Opportunity Portfolio		34,452,098		52,088,364
Value Portfolio		7,090,251		12,990,458

For the period ended April 30, 2010, there were no long-term U.S. Government securities held by the Portfolio Trust.

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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

6.	Federal Income Tax Information:
	At April 30, 2010, the cost basis of securities for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:

Fund	Tax Cost($)	Tax Unrealized Appreciation($)	Tax Unrealized Depreciation($)		Net Unrealized Appreciation/ (Depreciation)($)*
Growth Portfolio	75,227,448	18,506,843	(1,449,733	)	17,057,110
International Equity Portfolio	210,390,549	16,398,271	(23,295,245	)	(6,896,974	)
Opportunity Portfolio	119,573,400	30,466,172	(10,840,910	)	19,625,262
Value Portfolio	47,766,607	7,769,399	(5,261,879	)	2,507,520

*	The difference between book-basis unrealized appreciation/(depreciation) is attributable primarily to: tax deferral of losses on wash sales.
7.	Legal and Regulatory Matters:
	On September 26, 2006 BISYS Fund Services, Inc. (“BISYS’’), a subsidiary of the BISYS Group, Inc., reached a settlement (the “Settlement”) with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to the past payment by BISYS of certain marketing and other expenses with respect to certain of its mutual fund clients (the “Covered Clients”), including the Portfolios. A plan of distribution (“Fair Fund Plan”) was established in accordance with the Settlement for purposes of collecting and distributing settlement monies (“Settlement Monies”) to the Covered Clients. The payment of Settlement Monies to the Portfolios will be made on a date to be approved by the SEC, and the impact of such payments to the total return, net expense ratio and net income ratio of each Portfolio will be disclosed in the Financial Highlights after the date of payment.

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Investment Adviser Contract Approval (Unaudited)

Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis.
The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”).
Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act.
On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds.
The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate.
The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:
	Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the

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Investment Adviser Contract Approval (Unaudited) (continued)

Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also took note of the long-term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year.

With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts.

The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year.

The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers.

Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund.

Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds.

The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts.

With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds.

The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers.

The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above.

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Investment Adviser Contract Approval (Unaudited) (continued)

Other Relevant Considerations. The Board also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce the overall operating expenses of those Funds. The Trustees also considered the financial commitment the Adviser had made over the prior year to maintain a positive yield for the series of the Trust that are money market funds. The Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services.

Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved or approved the continuation of each Agreement.

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Table of Shareholder Expenses (unaudited)—as of April 30, 2010

          As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Portfolio 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, 2009 through April 30, 2010.

Actual Example

          The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

	Beginning Account Value 11/1/09		Ending Account Value 4/30/10		Expenses Paid During Period* 11/1/09 – 4/30/10		Annualized Expense Ratio During Period 11/1/09 – 4/30/10
Growth Portfolio	$	1,000.00	$	1,151.10	$	3.57	0.67	%
International Equity Portfolio		1,000.00		1,016.20		4.30	0.86	%
Opportunity Portfolio		1,000.00		1,243.50		4.90	0.88	%
Value Portfolio		1,000.00		1,139.60		3.50	0.66	%

* Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).

Hypothetical Example for Comparison Purposes

          The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

          Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), on purchases and redemptions of shares (if applicable). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 11/1/09		Ending Account Value 4/30/10		Expenses Paid During Period* 11/1/09 – 4/30/10		Annualized Expense Ratio During Period 11/1/09 – 4/30/10
Growth Portfolio	$	1,000.00	$	1,021.47	$	3.36	0.67	%
International Equity Portfolio		1,000.00		1,020.53		4.31	0.86	%
Opportunity Portfolio		1,000.00		1,020.43		4.41	0.88	%
Value Portfolio		1,000.00		1,021.52		3.31	0.66	%

* 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 79

          Other Information:

          Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th is available (i) without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders; (ii) on the HSBC Investor Family of Funds’ web-site at www.investorfunds.us.hsbc.com; and (iii) on the Security and Exchange Commission’s (“Commission”) website at http://www.sec.gov.

          (i) The Portfolios file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q; (ii) the Portfolios’ Form N-Q are available on the Commission’s website at http://www.sec.gov; (iii) the Portfolios’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and (iv) the Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the HSBC Investor Family of Funds’ website at www.investorfunds.us.hsbc.com.

          An investment in a Portfolio is not a deposit of HSBC Bank USA, National Association, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

80 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR FAMILY OF FUNDS:	SHAREHOLDER SERVICING AGENTS
	For HSBC Bank USA, N.A. and
INVESTMENT ADVISER AND ADMINISTRATOR	HSBC Securities (USA) Inc. Clients
HSBC Global Asset Management (USA) Inc.	HSBC Bank USA, N.A.
452 Fifth Avenue	452 Fifth Avenue
New York, NY 10018	New York, NY 10018
	1-888-525-5757
SUB-ADVISERS
HSBC Investor Growth Portfolio	For All Other Shareholders
Winslow Capital Management, Inc.	HSBC Investor Funds
4720 IDS Tower	P.O. Box 182845
80th South Eighth Street	Columbus, OH 43218-2845
Minneapolis, MN 55402	1-800-782-8183
HSBC Investor International Equity Portfolio	TRANSFER AGENT
AllianceBernstein L.P.	Citi Fund Services
1345 Avenue of the Americas, 39th Floor	3435 Stelzer Road
New York, NY 10105	Columbus, OH 43219
HSBC Investor Mid-Cap Fund	DISTRIBUTOR
Munder Capital Management	Foreside Distribution Services, L.P.
Munder Capital Center	690 Taylor Road, Suite 150
480 Pierce Street	Gahanna, OH 43230-3202
Birmingham, MI 48009-6063
	CUSTODIAN
HSBC Investor Opportunity Portfolio	The Northern Trust Company
Westfield Capital Management Company, L.P.	50 South LaSalle Street
One Financial Center	Chicago, IL 60603
Boston, MA 02111
	INDEPENDENT REGISTERED PUBLIC
HSBC Investor Value Portfolio	ACCOUNTING FIRM
NWQ Investment Management Company, LLC	KPMG LLP
2049 Century Park East, 16th Floor	191 West Nationwide Blvd., Suite 500
Los Angeles, CA 90067	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			6/10

Item 2. Code of Ethics.

Not applicable – only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable – only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable – only for annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a)Included as a part of the report to shareholders filed under Item 1.
(b)Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on theirevaluation 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 June 23, 2010

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Richard A. Fabietti
	Richard A. Fabietti
	President

Date June 23, 2010

By (Signature and Title)*	/s/ Ty Edwards
	Ty Edwards
	Treasurer

Date	June 23, 2010
* Print the name and title of each signing officer under his or her signature.

EX-99.CERT

Exhibit 99.CERT

CERTIFICATIONS

I, Richard A. Fabietti, certify that:

1.	I have reviewed this report on Form N-CSR of HSBC Advisor Funds Trust (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

June 23, 2010	/s/ Richard A. Fabietti_
Date	Richard A. Fabietti
	President

CERTIFICATIONS

I, Ty Edwards, certify that:

1.	I have reviewed this report on Form N-CSR of HSBC Advisor Funds Trust (the “registrant”);
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

June 23, 2010	/s/ Ty Edwards
Date	Ty Edwards
	Treasurer

EX-99.906CERT

Exhibit 99.906CERT

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended April 30, 2010 of HSBC Advisor Funds Trust (the “Registrant”).

Each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of the Registrant, certifies that, to the best of such officer’s knowledge:

1.	the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2.	the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

June 23, 2010
Date
	/s/ Richard A. Fabietti
	Richard A. Fabietti
	President
	/s/ Ty Edwards
	Ty Edwards
	Treasurer

This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.