N-CSRS 1 c65797_n-csrs.htm

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, 2011

Item 1. Reports to Stockholders.

(FRONT COVER)

HSBC Global Asset Management (USA) Inc.

April 30, 2011

HSBC Investor Funds

Semi-Annual report


	Class A	Class B	Class C	Class I

HSBC Investor Growth Fund	HOTAX	HOTBX	HOTCX	HOTYX
HSBC Investor International Equity Fund/	HOEAX	HOEBX	HOECX	RINEX
HSBC Investor Overseas Equity Fund
HSBC Investor Opportunity Fund	HSOAX	HOPBX	HOPCX	RESCX
HSBC Investor Value Fund	HIVAX	HIVBX	HIVCX	HIVYX

Table of Contents

HSBC Investor Family of Funds
Semi-Annual Report - April 30, 2011


Glossary of Terms
Chairman’s Message		4
President’s Message		6
Commentary From the Investment Manager		7
Portfolio Reviews		8
Statements of Assets and Liabilities		18
Statements of Operations		20
Statements of Changes in Net Assets		22
Financial Highlights		28
Notes to Financial Statements		34
Investment Adviser Contract Approval		42
Table of Shareholder Expenses		48
Additional Information		50

HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Growth Portfolio		52
HSBC Investor International Equity Portfolio		54
HSBC Investor Opportunity Portfolio		57
HSBC Investor Value Portfolio		59
Statements of Assets and Liabilities		60
Statements of Operations		61
Statements of Changes in Net Assets		62
Financial Highlights		64
Notes to Financial Statements		65
Investment Adviser Contract Approval		72
Table of Shareholder Expenses		78
Other Information		79

[This Page Intentionally Left Blank]

Glossary of Terms

Barclays Capital U.S. Aggregate Bond Index is an unmanaged broad-based benchmark that measures the investment-grade, USD-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities. Mortgage-Backed Securities (agency fixed-rate and hybrid Adjustable-Rate Mortgage passthroughs), Asset-Backed Securities, and Commercial Mortgage-Backed Securities.

Barclays Capital U.S. Corporate Bond Index is an unmanaged index that includes publicly issued U.S. corporate and specified foreign debentures and secured notes, which meet the specified maturity, liquidity, and quality requirements and to qualify, bonds must be SEC-registered.

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

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

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.

Morgan Stanley Capital International Europe Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index consists of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

Russell Midcap^® Index is an unmanaged index that measures the performance of the mid-cap segment of the U.S. equity universe. The Russell Midcap^® Index is a subset of the Russell 1000^® Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap^® Index represents approximately 27% of the total market capitalization of the Russell 1000 companies.

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

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

Russell 2000^® Index is an unmanaged index that measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000^® Index is a subset of the Russell 3000^® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

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

Standard & Poor’s 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 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.

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

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

Securities 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.

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.

Chairman’s Message

June 21, 2011

To Our Shareholders:

During the six months through April 30, 2011, the HSBC Investor Funds performed quite well, and for this we thank our managers and the Multi-manager team that monitors their results. The HSBC Investor Growth Fund and HSBC Investor Opportunity Fund significantly outperformed their benchmarks during the period. The Growth Fund (Class I Shares) returned 19.29% versus 16.96% for the Russell 1000^® Growth Index¹. The Opportunity Fund (Class I Shares) returned 30.43% versus 27.08% for the Russell 2500^TM Growth Index¹. Although they underperformed their respective benchmarks, the HSBC Investor International Equity Fund (Class I Shares) and the HSBC Investor Value Fund (Class I Shares) both provided respectable returns. The International Equity Fund returned 12.17% versus 12.95% for the MSCI EAFE Index¹ and the Value Fund returned 16.65% versus 17.29% for the Russell 1000^® Value Index¹. The World Selection Funds (Class A Shares, without sales charge) also produced positive returns during the period: Aggressive Strategy returned 14.61%, Balanced Strategy returned 12.31%, Moderate Strategy returned 9.43% and Conservative Strategy returned 6.27%. These funds were beneficiaries of positive returns across a wide spectrum of asset classes.

Though clearly the board’s focus is on risk-adjusted performance, we also monitor asset trends. Here, to no one’s surprise, assets in our money market funds continue to decline. Today’s low rates remain the culprit, obliging the advisor and service providers to continue to waive fees. Such fee waivers amounted to $8.6 million for the six months ended April 30, and $22.4 million for the fiscal year ended October 31, 2010— tangible evidence of their commitment to maintaining a competitive return.

We are delighted to note that our other funds are seeing positive growth. Assets in the HSBC World Selection Funds increased during the period due to investment performance and shareholder subscriptions. The Investor Equity Funds also increased their assets during period, benefitting from strong performance in the global equity markets.

We are pleased that the advisor is taking steps to broaden the Funds’ product offerings, especially in those areas where HSBC enjoys competitively distinguishing experience and skill. The advisor launched two emerging market fixed income funds on April 7: the HSBC Emerging Markets Debt Fund and the HSBC Emerging Markets Local Debt Fund. Such funds are rising in popularity as investors seek the diversity and higher yields of foreign markets and currencies. We have included additional information on the advisor’s capabilities in emerging markets, and we look forward to working with the advisor to expand our emerging markets offerings within the fund family.

Among the issues troubling investors today are how the end of “QEII”—the U.S. Federal Reserve’s second round of quantitative easing measures—may affect markets this summer and prospects for inflation in the near term. The only positive thing one might say of inflation is that it enables politicians some surcease from the price of their follies, enabling them to pay old debt with new, less valuable money. Everything else is pernicious: inflation erodes savings, discourages investment, introduces price distortions, leads to tax bracket creep, increases labor strife and inevitably leads to an economic contraction when central bankers—usually late in the game—ratchet rates up.

The challenge for investors facing such concerns is to be proactive in their asset allocation, something with which our advisor assists investors all over the world. Our shareholders can learn more about these capabilities by visiting an HSBC Financial Advisor or by visiting the Funds’ website at http://investorfunds.us.hsbc.com. Investors can learn more about the Funds, including the World Selection Funds, which provide simple and efficient asset allocation within a single mutual fund investment.


4	HSBC INVESTOR FAMILY OF FUNDS

Chairman’s Message (continued)

As a fund complex dominated (though to a declining extent) by money market fund offerings, we are following closely the U.S. President’s Working Group on Financial Markets and the Security & Exchange Commission’s effort to implement new reforms that will enhance the stability of the money market fund industry and seek to prevent crises like the one that occurred in September 2008, when the net asset value of the Reserve Primary Fund–a large money market fund–fell below $1 a share. One of the more interesting proposed reforms has come from HSBC. That proposal can be found on the SEC’s website, http://www.sec.gov/comments/4-619/4-619.shtml. We will continue to monitor all industry reform proposals put forth towards providing the best money market fund structures and products to meet the needs of our shareholders.

Cordially,

-s- Michael Seely

Michael Seely

Chairman, HSBC Investor Funds


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

Emerging markets fixed income is a key investment strategy for HSBC Global Asset Management. Considered to be one of the largest emerging markets investment managers in the world, HSBC Global Asset Management currently manages US$145 billion, as at December 31, 2010, in emerging market assets globally.

The HSBC Emerging Markets Debt team, based in New York, has managed institutional portfolios around the world since 1987. The team is currently led by Guillermo Ossés, Head of Emerging Markets Debt Portfolio Management.

Emerging markets debt has grown into an important asset class over the last decade as legal, regulatory and economic climates within many emerging markets countries have improved.

Since 1990, the emerging markets debt investment universe has grown significantly to reach over US$11 trillion as at end of December 2010. Thanks to strong economic fundamentals and improving debt dynamics, emerging market countries have experienced credit upgrades for both corporate and government issuers. Today, more than half of the emerging market universe is investment grade, and emerging market bonds have substantially outperformed developed market bonds over the last 15 years.

Key factors influencing this growth include:


•	High economic growth rates

•	Improving fundamentals through sound fiscal policies and responsible monetary policy

•	Strong demand for raw materials, goods and services

•	Positive long-term outlook

The diversity among economies in more than 50 emerging market countries provides investors with a variety of risk/reward opportunities. Emerging Markets Debt can have a legitimate place in any portfolio as a strategic investment. As part of a broader portfolio, Emerging markets debt has the potential to enhance returns and provide diversification for investors. As these emerging market economies expand, governments and corporations alike look to local and international markets to finance growth.


HSBC INVESTOR FAMILY OF FUNDS	5

President’s Message

Dear Shareholder,

Welcome to the HSBC Investor Funds semi-annual report, covering the period between November 1, 2010 and April 30, 2011. This report offers detailed information about your Funds’ results. We encourage you to review it carefully.

Inside these pages, you will find a letter from the Funds’ Chairman, Michael Seely, in which he comments on recent market developments. As always, the report includes the financial statements covering the first half of the fiscal year for each of the Funds. The report also includes commentary from the Funds’ portfolio managers in which they discuss the investment markets during the period and their respective Fund’s performance. Each commentary is accompanied by the Fund’s return for the period, listed alongside the returns of its benchmark index and peer group average for comparative purposes.

Short-term interest rates continue to hover around record low levels. In response, HSBC has continued to waive a portion of its advisory and shareholder servicing fees from the various money market funds in order to maintain a positive yield for the Funds’ shareholders.

Our Multimanager team continues to review and monitor the subadvisers that manage the Equity Funds’ capabilities and during the fiscal period recommended to the Funds’ Board a change in the subadviser for the International Equity Portfolio. As a result, Lord, Abbett & Co. became the subadviser for that Portfolio effective at the close of business on January 12. The team also reviews and monitors the third party funds in which the World Selection Funds invest.

On April 7 of this year, we launched two emerging market fixed income funds, HSBC Emerging Markets Debt Fund and HSBC Emerging Markets Local Debt Fund. A description of our emerging markets capabilities is also included as part of this report; we hope you find it to be of interest. We believe that adding the emerging markets asset class to the HSBC fund family will provide shareholders with a broad range of investment options that capitalize on one of HSBC’s strengths — investing in emerging markets.

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

Sincerely,

-s- Richard A. Fabietti

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 global economy continued its recovery during the six-month period between November 1, 2010 and April 30, 2011. Moderate economic growth coincided with continued strength in emerging economies and better-than-expected corporate earnings. The economic recovery continued to benefit from the Federal Reserve Board’s decision to keep the federal funds rate—a key factor in lending rates—at a historically low target range between 0.00% and 0.25%.

The period began with renewed concerns about the risk of a sovereign debt default. Eurozone monetary stability appeared especially threatened by the sovereign debt crisis in Ireland and the possibility that the crisis would spread to weak peripheral economies, particularly Portugal and Spain. This threat was alleviated to some extent later in the period due to the approval of an economic rescue package for Ireland and successful debt auctions in Italy, Portugal and Spain.

Growth remained robust in many emerging economies, but inflationary pressures increased. Many governments tightened monetary policy in order to counter rising prices of food and other commodities. Oil prices rose sharply in the first quarter, a development that dampened economic growth during the last two months of the period.

The U.S. Gross Domestic Product (“GDP”)¹ grew at 3.1% during the fourth quarter of 2010—a slowdown from the previous quarter but still ahead of expectations. GDP during the first quarter of 2011 experienced growth at 1.8%. U.S. consumer confidence returned to pre-recession levels, though it dipped somewhat toward the end of the period. Job creation picked up during the period, but unemployment remained a significant drag on the economic recovery. Home sales in the U.S. rose, but home prices remained low and foreclosure and delinquency rates hit record levels. Meanwhile, reports showed that manufacturing activity was robust, the services sector expanded and consumer confidence trended upward.

Market Review

Markets performed poorly throughout November due to a number of factors, including eurozone monetary instability, speculation about potential interest rate hikes, and geopolitical tensions involving North Korea. By the end of 2010, however, investors were reassured by economic rescue packages for several eurozone economies and improving U.S. economic data, sending stocks significantly higher.

Equities continued to perform strongly during the first two months of 2011 as a number of signs emerged that the U.S. economy was on surer footing. Data showed increasing consumer confidence, robust manufacturing, soaring home sales and substantial corporate earnings.

Numerous factors undermined investor confidence late in the period, including inflation in emerging economies and persistently high unemployment in the U.S. During the second half of the period, several dramatic and historic events threatened the stability of global markets. Unrest in the Middle East, most notably in Egypt and Libya, weighed on investor confidence. Then the earthquake and tsunami in Japan triggered a sharp dive in equities in mid-March. Rising oil and commodity prices also weighed on investor confidence and contributed to lagging returns during the last two months of the period.

Investors favored higher-risk areas of the equity market, helping emerging markets and small-cap stocks produce strong gains during the six months through April 2011. The Russell 2000^® Index¹ of small-company stocks returned 23.73% and the MSCI EAFE Index¹ returned 12.95%.

Stocks in developed economies, with the notable exception of Japan, posted moderate gains during the period. European markets rose as governments coordinated a response to sovereign debt problems and economic activity increased. In the U.S., the energy and industrials sectors performed strongly due in part to rising commodity prices. The S&P 500 Index¹ of large-company stocks returned 16.36% for the six months through April 30, 2011.

Among fixed-income securities, corporate bonds—particularly high-yield bonds—exhibited strength throughout the period as investors sought out additional yield in a low interest rate environment. The Barclays Capital U.S. Aggregate Bond Index¹, which tracks the broad investment-grade fixed-income market, returned 0.02% for the six months through April 30, 2011, while the Barclays Capital U.S. High-Yield Corporate Bond Index¹ returned 7.23%.

The pursuit of yield led to low demand for government bonds. U.S. Treasury yields ticked upward throughout much of the period, though they remained low by historical standards. Treasuries faced increasing pressure from both the growing U.S. debt burden and concerns about a demand shortfall after the current quantitative easing program ends.


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


HSBC INVESTOR FAMILY OF FUNDS	7

Portfolio Reviews (Unaudited)

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. Bartlett 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 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 its 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 19.11% (without sales charge) for the Class A Shares and 19.29% for the Class I Shares for the six-month period ended April 30, 2011. That compared to a 16.96% total return for the Russell 1000^® Growth Index¹ and a 15.13% total return for the Lipper Large-Cap Growth Funds Average¹.

Portfolio Performance

The Fund and the market posted strong absolute performance during the six-month period. Investors reacted positively to signs that the U.S. and global economies were moving from recovery to expansion. Strong corporate results helped the market absorb shocks from turmoil in the Middle East and the March earthquake and tsunami in Japan.

At the beginning of the period, stocks got a boost from the U.S. government’s latest round of quantitative easing and a decision by Congress to renew the Bush-era tax cuts. Year-end 2010 gains in the equity market continued into the New Year even as eurozone sovereign credit worries and moves by China’s central bank to tighten monetary policy and rein in inflation-heightened investors’ awareness of the risks to the recovery.

Strong individual stock selection helped the Fund outperform its benchmark during the period. In particular, the Fund saw strong performance among individual holdings among technology stocks. The Fund maintained an overweight position in the technology sector relative to its benchmark. That helped relative performance, as that sector was a top performer during the period. The Fund has a continued underweight position in consumer staples contributed to its performance relative to the benchmark. The consumer staples sector lagged the benchmark during the period as investors sought out less defensive areas of the equity market.

The Fund was hurt by individual stock selection in the financial and consumer discretionary sectors. An underweight position in the energy sector, which performed very strongly during the period, was a drag on relative performance.*


*	Portfolio composition is subject to change.

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


8	HSBC INVESTOR FAMILY OF FUNDS


	Portfolio Reviews (Unaudited)

HSBC Investor Growth Fund


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

As of April 30, 2011	Inception Date		Six Months^†		1 Year		5 Year		Since Inception		Gross		Net

HSBC Investor Growth Fund Class A¹		5/7/04⁵		13.16		18.09		5.13		6.66		1.34		1.20

HSBC Investor Growth Fund Class B²		5/7/04⁵		14.70		19.44		5.43		6.74		2.09		1.95

HSBC Investor Growth Fund Class C³		5/7/04⁵		17.65		22.35		5.43		6.64		2.09		1.95

HSBC Investor Growth Fund Class I		5/7/04⁵		19.29		24.62		6.48		7.70		1.09		0.95

Russell 1000^® Growth Index⁴		—		16.96		20.87		5.06		5.76⁷		N/A		N/A

Lipper Large-Cap Growth Funds Average⁴		—		15.13		18.35		3.47		5.25⁷		N/A		N/A

The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect for the Fund from March 1, 2011 through March 1, 2012.

During the year ended October 31, 2007, the Portfolio received a one-time reimbursement from the Adviser related to past marketing arrangements. During the years ended October 31, 2008, 2009 and 2010 and the period ended April 30, 2011, the Portfolio received one-time payments in respect of class action settlements, which had the result of increasing its total returns. As a result, the Fund’s total returns for the years ended October 31, 2007, 2008, 2009 and 2010 and the period ended April 30, 2011 were higher than they would have been had the Portfolio not received the payments.


^†	Aggregate total return.

¹	Reflects the maximum sales charge of 5.00%.

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

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

⁴	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, 2011. The Adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to an annual rate of 1.20%, 1.95%, 1.95% and 0.95% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. Additional information pertaining to the April 30, 2011 expense ratios can be found in the financial highlights.

⁷	Return for the period April 30, 2004 to April 30, 2011.

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 (Unaudited)

HSBC Investor International Equity Fund

HSBC Investor Overseas Equity Fund

(Class A Shares, B Shares, and C Shares)
by Harold E. Sharon, Partner and Director/Portfolio Manager
Vincent J. McBride, Partner and Director/Portfolio Manager
Lord, Abbett & Co. LLC

The HSBC Investor International Equity Fund and the HSBC Investor Overseas Equity Fund (individually a “Fund”, collectively the “Funds”) seek to provide long-term growth of capital and future income. Under normal market conditions, the Funds invest at least 80% of its net assets in equity securities of companies organized and domiciled in developed nations outside the United States or for which the principal trading market is outside the United States, including Europe, Canada, Australia and the Far East. The Funds 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”). Effective at the close of business on January 12, 2011, Lord, Abbett & Co. LLC, replaced AllianceBernstein L.P., (“AllianceBernstein”) as its subadviser.

Investment Concerns

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

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

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

Market Commentary

HSBC Investor International Fund Class I Shares returned 12.17% and HSBC Investor Overseas Equity Fund Class A Shares returned 12.11% (without sales charge) during the six-month period ended April 30, 2011. That compared to an 12.95% return for the Fund’s benchmark, the MSCI EAFE Index¹ (Europe, Australasia and Far East).

Portfolio Performance

The global equity markets performed weakly early in the period as concerns mounted over the severity of the sovereign debt crisis in Europe. Geopolitical issues—including tensions between North Korea and South Korea and unrest in the Middle East—also unsettled the global equity markets. But despite those issues, global stocks generally recovered and performed well during the six-month period as a whole.

HSBC changed the Funds’ subadviser during the period. Lord, Abbett & Co. LLC assumed management of the Fund effective at the close of business on January 12, 2011. The Funds’ current management team seeks to provide long-term growth of capital and future income by investing primarily in the stocks of major companies in Europe, Australia, Asia and Canada.

The Funds slightly underperformed their benchmark during the six-month period. Several of the Funds’ European holdings posted negative returns as a result of sovereign debt-related concerns. Detracting from relative performance early in the period was an underweight position in the capital equipment sector. In the second half of the period, the Funds were hurt by stock selection in the materials sector as well as the Funds’ underweight position in health care.*

Early in the period, strong stock selection among industrial commodities companies helped boost the Funds’ performance relative to its benchmark. In particular, the Fund’s benefited from exposure to a Swiss mining company and a U.S. based steelmaker. In the second half of the period, the Funds benefited from stock selection in the utilities and financials sectors. Those stocks that benefited relative performance late in the period included a Brazil-based water and sewage services provider, a U.K.-based international electricity and gas company, and banks in Indonesia, Thailand and South Korea.*


*	Portfolio composition is subject to change.

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


10	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund


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

As of April 30, 2011	Inception Date	Six Months^†		1 Year		5 Year		10 Year		Gross		Net

HSBC Investor International Equity Fund Class I*	1/9/95		12.17		17.15		-1.01		3.83		1.74		1.74

HSBC Investor Overseas Equity Fund Class A¹	8/26/96		6.58		11.06		-3.35		2.42		2.71		1.85

HSBC Investor Overseas Equity Fund Class B²	1/6/98		7.79		12.17		-3.04		2.48		3.46		2.60

HSBC Investor Overseas Equity Fund Class C³	11/4/98		10.85		15.18		-3.02		2.20		3.46		2.60

MSCI EAFE Index⁴	—		12.95		19.70		2.02		5.74		N/A		N/A

Lipper International Large-Cap Value Funds Average⁴	—		11.79		17.45		0.01		5.64		N/A		N/A

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

The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect for the Fund from March 1, 2011 through March 1, 2012 for the Overseas Equity Fund.

During the year ended October 31, 2007, the Portfolio received a one-time reimbursement from the Adviser related to past marketing arrangements. During the years ended October 31, 2007 and 2010, the Portfolio received a one-time payment in respect of class action settlements which had the result of increasing its total returns. As a result, the Fund’s total returns for the years ended October 31, 2007 and 2010 were higher than they would have been had the Portfolio not received the payments.


*	The Class I Shares are issued by HSBC Investor International Equity Fund, a series of HSBC Advisor Funds Trust.

^†	Aggregate total return.

¹	Reflects the maximum sales charge of 5.00%.

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

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

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

⁵	Reflects the expense ratio as reported in the prospectus dated March 1, 2011. The Adviser has entered into a contractual expense limitation agreement with the HSBC Investor Overseas Equity Fund under which it will limit total expenses of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to an annual rate of 1.85%, 2.60%, and 2.60% for Class A Shares, Class B Shares and Class C Shares, respectively. Additional information pertaining to the April 30, 2011 expense ratios can be found in the financial highlights.

The Fund’s performance is measured against the Morgan Stanley Capital International Europe Australasia and Far East (“MSCI EAFE”) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The MSCI EAFE Index consists of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. 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 (Unaudited)

HSBC Investor Opportunity Fund

(Class A Shares, B Shares, C Shares and I Shares)
by William A. Muggia, President, CEO and CIO/Portfolio Manager
Matthew W. Strobeck, Partner/Portfolio Manager
Ethan J. Meyers, Partner/Portfolio Manager
John M. Montgomery, Partner
D. Hamlen Thompson, Partner
Westfield Capital Management Company, L.P.

The HSBC Investor Opportunity Fund (the “Fund”) seeks long-term growth of capital by investing in equity securities of small- and mid-cap companies. Small- and mid-cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index¹. The Fund may also invest in equity securities of larger, more established companies and may invest up to 20% of its assets in securities of foreign companies. The Fund employs a two-tier structure, commonly referred to as a “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 its 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.

Small- to 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.

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.

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.

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, 2011, the Class I Shares of the HSBC Investor Opportunity Fund (Advisor) produced a 30.43% total return, and the Class A Shares of the Fund produced a 30.07% total return (without sales charge). The Fund’s benchmarks, the Russell 2500^™ Growth Index¹ and the Lipper Mid-Cap Growth Funds Average¹, returned 27.08% and 22.89%, respectively.

Portfolio Performance

The economic recovery continued to gain strength during the period. The stock market continued its rebound from recent lows, thanks in part to the Federal Reserve’s decision to maintain historically low interest rates. The period began with concerns about European sovereign debt and the slow pace of job creation driving stocks down. However, markets performed strongly throughout December and the first quarter of 2011, as improving U.S. economic data showed signs of increasing consumer confidence and robust manufacturing activity. The Fund enjoyed strong absolute performance in that market environment.

The Fund’s strong returns relative to its benchmark were driven largely by the selection of specific stocks within the industrial, health care, information technology, consumer staples and materials sectors. Consumer staples and energy were the top-performing sectors within the Fund’s portfolio. Telecommunications was the only sector that did not show gains for the period. The Fund also benefited from an overweight position in energy stocks relative to its benchmark, as well as underweight positions in financials and consumer discretionary.*

The Fund was hurt by stock selection in the telecommunications sector. In particular, the Fund’s position in a Latin American mobile communications firm dragged on returns due in part to the firms’ lower than expected fourth-quarter earnings.*


*	Portfolio composition is subject to change.

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


12	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor Opportunity Fund


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

As of April 30, 2011	Inception Date		Six Months^†		1 Year		5 Year		10 Year		Gross		Net

HSBC Investor Opportunity Fund Class A¹		9/23/96		23.55		27.56		8.36		6.84		2.07		1.65

HSBC Investor Opportunity Fund Class B²		1/6/98		25.63		29.43		8.65		6.90		2.82		2.40

HSBC Investor Opportunity Fund Class C³		11/4/98		28.66		32.38		8.67		6.60		2.82		2.40

HSBC Investor Opportunity Fund Class I*		9/3/96		30.43		34.97		9.83		7.88		1.01		1.01

Russell 2500™ Growth Index⁴		—		27.08		30.07		5.91		6.39		N/A		N/A

Lipper Mid-Cap Growth Funds Average⁴		—		22.89		27.46		5.06		5.23		N/A		N/A

During the year ended October 31, 2007, the Portfolio received a one-time reimbursement from the Adviser related to past marketing arrangements. During the year ended October 31, 2010 and the period ended April 30, 2011, the Portfolio received one-time payments in respect of class action settlements, which had the result of increasing its total returns. As a result, the Fund’s total returns for the years ended October 31, 2007 and 2010 and the period ended April 30, 2011 were higher than they would have been had the Portfolio not received the payments.


*	The Class I Shares are issued by a series of HSBC Advisor Funds Trust also named the HSBC Investor Opportunity Fund.

^†	Aggregate total return.

¹	Reflects the maximum sales charge of 5.00%.

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

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

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

⁵	Reflects the expense ratio as reported in the prospectus dated March 1, 2011. The Adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to an annual rate of 1.65%, 2.40%, and 2.40% for Class A Shares, Class B Shares, and Class C Shares, respectively. Additional information pertaining to the April 30, 2011 expense ratios can be found in the financial highlights.

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	13

Portfolio Reviews (Unaudited)

HSBC Investor Value Fund

(Class A Shares, B Shares, C Shares and I Shares)
by Jon D. Bosse, CFA, Co-President and CIO/Portfolio Manager
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 equity securities of companies with large and medium capitalizations that the subadviser believes possess opportunities underappreciated or misperceived by the market. The Fund may also invest up to 25% of its assets in dollar-denominated securities of non-U.S. issuers that are traded on a U.S. stock exchange and/or American Depositary Receipts (“ADRs”) and up to 20% of its assets in bonds and other debt securities. 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 Co., LLC (“NWQ”) as its 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 16.50% (without sales charge) for the Class A Shares and 16.65% for the Class I Shares for the six-month period ended April 30, 2011. That compared to a 17.29% return for the Russell 1000^® Value Index¹ and a 15.26% return for the Lipper Large-Cap Core Funds Average¹.

Portfolio Performance

Stocks posted strong absolute performance during the six-month period ended April 30, 2011. Investors reacted positively to signs that the U.S. and global economies were moving from recovery to expansion. Strong corporate results helped the market absorb shocks from turmoil in the Middle East and the March earthquake and tsunami in Japan. The Fund in that environment performed well on an absolute basis.

The largest contributor to the Fund’s absolute performance was its exposure to energy stocks during the early part of the period. Strong operating profits due to higher production and higher underlying commodity prices helped to positively influence the valuations of these companies. Stocks within the consumer discretionary sector also contributed to the Fund’s performance. The valuations of these stocks rose in response to a better business environment, particularly in media and advertising, as a result of continued improvement in the U.S. economy.*

The Fund’s investments in the health care sector were the largest detractors to the Fund’s performance relative to its benchmark. Although the sector generated positive performance, this sector appreciated less than the market. The valuation of one of the Fund’s holdings was adversely effected by concerns that the FDA may make a negative ruling about one of its products. We continue to view this sector as attractive and opportunistically added to positions during the period.*

The Fund’s technology holdings dragged on relative performance, as did the Fund’s exposure to materials and processing companies—particularly in the gold industry. Like health care, the materials and processing sector generated positive performance but appreciated less than the market. The companies within the gold industry declined considerably during the early part of the period in response to a decline in the price of gold. During the second half of the period, these companies rallied due to not only the rise of gold, but also in recognition of their high intrinsic value.*


*	Portfolio composition is subject to change.

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


14	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor Value Fund


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

As of April 30, 2011	Inception Date		Six Months*		1 Year		5 Year		Since Inception		Gross		Net

HSBC Investor Value Fund Class A¹		5/7/04⁵		10.63		10.11		0.97		5.56		1.34		1.20

HSBC Investor Value Fund Class B²		5/7/04⁵		11.99		11.07		1.25		5.66		2.09		1.95

HSBC Investor Value Fund Class C³		5/7/04⁵		14.96		14.06		1.23		5.54		2.09		1.95

HSBC Investor Value Fund Class I		5/7/04⁵		16.65		16.21		2.26		6.62		1.09		0.95

Russell 1000^® Value Index⁴		—		17.29		15.24		1.40		5.40⁷		N/A		N/A

Lipper Large-Cap Core Funds Average⁴		—		15.26		15.35		2.46		4.90⁷		N/A		N/A

During the year ended October 31, 2007, the Portfolio received a one-time reimbursement from the Adviser related to past marketing arrangements. During the years ended October 31, 2008, 2009 and 2010, the Portfolio received one-time payments in respect of class action settlements, which had the result of increasing its total returns. As a result, the Fund’s total returns for the years October 31, 2007, 2008, 2009 and 2010 were higher than they would have been had the Portfolio not received the payments.


*	Aggregate total return.

¹	Reflects the maximum sales charge of 5.00%.

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

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

⁴	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, 2011. The Adviser has entered into a contractual expense limitation agreement with the Fund under which it will limit total expenses of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to an annual rate of 1.20%, 1.95%, 1.95% and 0.95% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively. Additional information pertaining to the April 30, 2011 expense ratios can be found in the financial highlights.

⁷	Return for the period April 30, 2004 to April 30, 2011.

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	15

Portfolio Reviews

Portfolio Composition*

April 30, 2011

(Unaudited)


HSBC Investor Growth Portfolio


Investment Allocation	Percentage of Investments at Value

Software	8.8	%

Computers & Peripherals	8.4	%

Machinery	6.3	%

Energy Equipment & Services	5.5	%

Diversified Financial Services	4.9	%

Capital Markets	4.8	%

Internet & Catalog Retail	4.8	%

Internet Software & Services	4.6	%

IT Services	4.2	%

Communications Equipment	3.9	%

Hotels, Restaurants & Leisure	3.6	%

Health Care Providers & Services	3.4	%

Oil, Gas & Consumable Fuels	3.1	%

Road & Rail	3.0	%

Aerospace & Defense	3.0	%

Pharmaceuticals	2.7	%

Media	2.5	%

Metals & Mining	2.3	%

Health Care Equipment & Supplies	2.3	%

Semiconductors & Semiconductor Equipment	2.2	%

Investment Company	2.2	%

Specialty Retail	2.0	%

Construction & Engineering	1.7	%

Wireless Telecommunication Services	1.5	%

Personal Products	1.2	%

Auto Components	1.1	%

Air Freight & Logistics	1.1	%

Health Care Technology	1.1	%

Food & Staples Retailing	1.0	%

Automobiles	1.0	%

Food Products	1.0	%

Chemicals	0.8	%

Total	100.0	%


HSBC Investor International Equity Portfolio


Investment Allocation	Percentage of Investments at Value

Europe	60.9	%

Australia & Far East	13.8	%

Japan	12.7	%

Other	6.8	%

Canada	3.0	%

Investment Company	1.6	%

Exchange Traded Fund	1.2	%

Total	100.0	%


HSBC Investor Opportunity Portfolio


Investment Allocation	Percentage of Investments at Value

Oil, Gas & Consumable Fuels	10.2	%

Software	5.7	%

Machinery	5.3	%

Commercial Services & Supplies	5.0	%

Life Sciences Tools & Services	4.9	%

Semiconductors & Semiconductor Equipment	4.7	%

Chemicals	4.2	%

Health Care Equipment & Supplies	3.7	%

Food Products	3.7	%

Textiles, Apparel & Luxury Goods	3.6	%

Electrical Equipment	3.5	%

IT Services	3.3	%

Health Care Providers & Services	3.3	%

Containers & Packaging	3.0	%

Capital Markets	2.9	%

Wireless Telecommunication Services	2.7	%

Auto Components	2.4	%

Road & Rail	2.1	%

Communications Equipment	2.0	%

Biotechnology	2.0	%

Media	2.0	%

Electronic Components & Semiconductors	1.9	%

Metals & Mining	1.9	%

Aerospace & Defense	1.8	%

Internet Software & Services	1.7	%

Diversified Consumer Services	1.7	%

Hotels, Restaurants & Leisure	1.6	%

Investment Company	1.6	%

Trading Companies & Distributors	1.6	%

Real Estate Investment Trusts (REITs)	1.5	%

Specialty Retail	1.4	%

Pharmaceuticals	1.3	%

Diversified Financial Services	1.2	%

Commercial Banks	0.6	%

Total	100.0	%


HSBC Investor Value Portfolio


Investment Allocation	Percentage of Investments at Value

Insurance	17.6	%

Oil, Gas & Consumable Fuels	14.8	%

Pharmaceuticals	10.0	%

Metals & Mining	7.2	%

Media	7.0	%

Software	6.8	%

Communications Equipment	5.2	%

Diversified Financial Services	4.5	%

Biotechnology	3.6	%

Investment Company	3.2	%

Food & Staples Retailing	2.8	%

Aerospace & Defense	2.7	%

Commercial Banks	2.1	%

Machinery	2.0	%

Auto Components	1.8	%

Road & Rail	1.7	%

Tobacco	1.6	%

Commercial Services & Supplies	1.5	%

Capital Markets	1.4	%

Independent Power Producers & Energy Traders	1.4	%

Energy Equipment & Services	1.1	%

Total	100.0	%


*	Portfolio composition is subject to change.


16	HSBC INVESTOR FAMILY OF FUNDS

[This Page Intentionally Left Blank]

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2011 (Unaudited)


	Growth Fund			International Equity Fund			Opportunity Fund			Opportunity Fund (Advisor)

Assets:
Investments in Affiliated Portfolios	$	75,808,648		$	13,342,494		$	15,137,832		$	149,185,117
Receivable for capital shares issued		524,600			76,486			89,457			266,645
Reclaims receivable		—			533,578			—			—
Receivable from Investment Adviser		—			9,373			3,771			—
Prepaid expenses and other assets		18,090			7,079			8,064			4,240

Total Assets		76,351,338			13,969,010			15,239,124			149,456,002

Liabilities:
Payable for capital shares redeemed		76,583			10,005			13,887			63,507
Accrued expenses and other liabilities:
Administration		1,377			244			271			2,704
Distribution		829			—			651			—
Shareholder Servicing		3,979			—			3,941			—
Compliance Services		37			2			2			62
Transfer Agent		15,136			6,936			11,779			7,686
Trustee		239			109			46			384
Other		23,324			655			5,323			71,534

Total Liabilities		121,504			17,951			35,900			145,877

Net Assets	$	76,229,834		$	13,951,059		$	15,203,224		$	149,310,125


Composition of Net Assets:
Capital	$	57,619,387		$	83,456,183		$	10,330,636		$	101,022,445
Accumulated net investment income (loss)		(6,367	)		28,642			(46,208	)		(51,230	)
Accumulated net realized gains (losses) from investments		(2,792,655	)		(70,484,045	)		916,294			9,201,264
Unrealized appreciation/depreciation on investments		21,409,469			950,279			4,002,502			39,137,646

Net Assets	$	76,229,834		$	13,951,059		$	15,203,224		$	149,310,125


Net Assets:
Class A Shares	$	17,913,615		$	—		$	14,116,844		$	—
Class B Shares		1,155,345			—			658,765			—
Class C Shares		206,267			—			427,615			—
Class I Shares		56,954,607			13,951,059			—			149,310,125

	$	76,229,834		$	13,951,059		$	15,203,224		$	149,310,125


Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,001,515			—			1,139,035			—
Class B Shares		70,551			—			63,967			—
Class C Shares		12,518			—			40,701			—
Class I Shares		3,143,733			1,183,229			—			9,166,613

Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	17.89		$	—		$	12.39		$	—
Class B Shares (a)	$	16.38		$	—		$	10.30		$	—
Class C Shares (a)	$	16.48		$	—		$	10.51		$	—
Class I Shares	$	18.12		$	11.79		$	—		$	16.29
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	$	18.83		$	—		$	13.04		$	—



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


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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of April 30, 2011 (Unaudited) (continued)


	Overseas Equity Fund			Value Fund

Assets:
Investments in Affiliated Portfolios	$	6,383,482		$	35,197,393
Receivable for capital shares issued		950			126,431
Reclaims receivable		38,623			—
Receivable from Investment Adviser		6,604			2,525
Prepaid expenses and other assets		8,932			11,058

Total Assets		6,438,591			35,337,407

Liabilities:
Payable for capital shares redeemed		4,255			33,848
Accrued expenses and other liabilities:
Administration		117			644
Distribution		357			183
Shareholder Servicing		1,290			2,779
Compliance Services		4			86
Transfer Agent		7,764			13,022
Trustee		21			113
Other		372			11,089

Total Liabilities		14,180			61,764

Net Assets	$	6,424,411		$	35,275,643


Composition of Net Assets:
Capital	$	6,680,790		$	34,806,108
Accumulated net investment income (loss)		6,509			(2,085	)
Accumulated net realized gains (losses) from investments		(746,847	)		(5,474,628	)
Unrealized appreciation/depreciation on investments		483,959			5,946,248

Net Assets	$	6,424,411		$	35,275,643


Net Assets:
Class A Shares	$	5,843,615		$	12,945,219
Class B Shares		528,980			210,650
Class C Shares		51,816			91,139
Class I Shares		—			22,028,635

	$	6,424,411		$	35,275,643


Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,269,748			935,586
Class B Shares		131,366			16,048
Class C Shares		11,842			6,895
Class I Shares		—			1,594,554

Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	4.60		$	13.84
Class B Shares (a)	$	4.03		$	13.13
Class C Shares (a)	$	4.38		$	13.22
Class I Shares	$	—		$	13.82
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	$	4.84		$	14.57



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


See notes to financial statements.	HSBC INVESTOR FAMILY OF FUNDS	19

HSBC INVESTOR FAMILY OF FUNDS

Statements of Operations—For the six months ended April 30, 2011 (Unaudited)


	Growth Fund			International Equity Fund			Opportunity Fund			Opportunity Fund (Advisor)

Investment Income:
Investment Income from Affiliated Portfolios (a)	$	356,224		$	171,410		$	62,960		$	622,285
Tax reclaims from Affiliated Portfolios (a)		—			40,615			—			—
Foreign tax withholding from Affiliated Portfolios (a)		(210	)		(17,459	)		—			—
Expenses from Affiliated Portfolios (a)		(236,524	)		(78,532	)		(59,949	)		(585,975	)

Total Investment Income		119,490			116,034			3,011			36,310


Expenses:
Administration:
Class A Shares		1,968			—			1,430			—
Class B Shares		134			—			71			—
Class C Shares		21			—			43			—
Class I Shares		5,962			1,510			—			15,100
Distribution:
Class B Shares		4,409			—			2,343			—
Class C Shares		710			—			1,427			—
Shareholder Servicing:
Class A Shares		21,330			—			13,746			—
Class B Shares		1,470			—			781			—
Class C Shares		236			—			476			—
Accounting		11,903			4,464			9,423			4,464
Compliance Services		225			37			37			403
Printing		17,645			4,195			3,302			32,475
Professional		1,007			196			219			1,797
Transfer Agent		40,836			18,783			28,323			23,858
Trustee		919			263			173			1,626
Registration fees		14,652			7,500			8,549			4,034
Other		2,430			878			4,457			3,783

Total expenses before fee reductions		125,857			37,826			74,800			87,540
Fees contractually reduced by Investment Adviser		—			—			(18,782	)		—
Fees voluntarily reduced by Investment Adviser		—			(50,816	)		(6,799	)		—

Net Expenses		125,857			(12,990	)		49,219			87,540


Net Investment Income (Loss)		(6,367	)		129,024			(46,208	)		(51,230	)


Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment securities and foreign currency transactions		4,016,705			1,046,439			1,196,218			11,574,524
Change in unrealized appreciation/depreciation on investments		8,584,404			345,842			2,409,371			23,992,712


Net realized/unrealized gains (losses) from investments		12,601,109			1,392,281			3,605,589			35,567,236

Change In Net Assets Resulting From Operations	$	12,594,742		$	1,521,305		$	3,559,381		$	35,516,006



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


20	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, 2011 (Unaudited) (continued)


	Overseas Equity Fund			Value Fund

Investment Income:
Investment Income from Affiliated Portfolios (a)	$	82,950		$	229,778
Tax reclaims from Affiliated Portfolios (a)		4,284			—
Foreign tax withholding from Affiliated Portfolios (a)		(8,397	)		(2,068	)
Expenses from Affiliated Portfolios (a)		(38,700	)		(110,777	)

Total Investment Income		40,137			116,933


Expenses:
Administration:
Class A Shares		630			1,434
Class B Shares		63			27
Class C Shares		6			10
Class I Shares		—			2,386
Distribution:
Class B Shares		2,060			874
Class C Shares		184			319
Shareholder Servicing:
Class A Shares		6,909			15,388
Class B Shares		687			291
Class C Shares		61			106
Accounting		9,423			12,003
Compliance Services		18			110
Printing		1,725			8,374
Professional		89			475
Transfer Agent		23,165			31,020
Trustee		83			439
Registration fees		7,983			9,206
Other		574			1,399

Total expenses before fee reductions		53,660			83,861
Fees contractually reduced by Investment Adviser		(33,237	)		(16,013	)
Fees voluntarily reduced by Investment Adviser		(4,611	)		—

Net Expenses		15,812			67,848


Net Investment Income (Loss)		24,325			49,085


Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment securities and foreign currency transactions		408,427			118,219
Change in unrealized appreciation/depreciation on investments		270,831			5,052,156


Net realized/unrealized gains (losses) from investments		679,258			5,170,375

Change In Net Assets Resulting From Operations	$	703,583		$	5,219,460



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


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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets


	Growth Fund						International Equity Fund

	For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

Investment Activities:
Operations:
Net investment income (loss)	$	(6,367	)	$	(237,239	)	$	129,024		$	2,871,032
Net realized gains (losses) from investments		4,016,705			2,754,614			1,046,439			(23,700,569	)
Change in unrealized appreciation/depreciation on investments		8,584,404			8,698,898			345,842			10,508,917

Change in net assets resulting from operations		12,594,742			11,216,273			1,521,305			(10,320,620	)


Dividends:
Net investment income:
Class I Shares		—			—			(2,314,948	)		(2,826,752	)

Change in net assets resulting from shareholder dividends		—			—			(2,314,948	)		(2,826,752	)

Change in net assets resulting from capital transactions		(3,688,009	)		(1,368,340	)		977,617			(153,327,685	)

Change in net assets		8,906,733			9,847,933			183,974			(166,475,057	)

Net Assets:
Beginning of period		67,323,101			57,475,168			13,767,085			180,242,142

End of period	$	76,229,834		$	67,323,101		$	13,951,059		$	13,767,085

Accumulated net investment income (loss)	$	(6,367	)	$	—		$	28,642		$	2,214,566


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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Growth Fund						International Equity Fund

	For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	526,840		$	1,474,696		$	—		$	—
Value of shares redeemed		(2,086,062	)		(3,830,531	)		—			—

Class A Shares capital transactions		(1,559,222	)		(2,355,835	)		—			—


Class B Shares:
Proceeds from shares issued		21,353			45,443			—			—
Value of shares redeemed		(284,759	)		(1,185,170	)		—			—

Class B Shares capital transactions		(263,406	)		(1,139,727	)		—			—


Class C Shares:
Proceeds from shares issued		8,100			37,690			—			—
Value of shares redeemed		(18,518	)		(672	)		—			—

Class C Shares capital transactions		(10,418	)		37,018			—			—


Class I Shares:
Proceeds from shares issued		6,817,014			9,912,289			1,236,477			17,089,243
Dividends reinvested		—			—			1,694,111			2,134,231
Value of shares redeemed		(8,671,976	)		(7,822,085	)		(1,952,971	)		(172,551,159	)

Class I Shares capital transactions		(1,854,962	)		2,090,204			977,617			(153,327,685	)

Change in net assets resulting from capital transactions	$	(3,688,008	)	$	(1,368,340	)	$	977,617		$	(153,327,685	)


SHARE TRANSACTIONS:
Class A Shares:
Issued		31,823			105,581			—			—
Redeemed		(125,862	)		(278,015	)		—			—

Change in Class A Shares		(94,039	)		(172,434	)		—			—


Class B Shares:
Issued		1,419			3,490			—			—
Redeemed		(18,741	)		(93,088	)		—			—

Change in Class B Shares		(17,322	)		(89,598	)		—			—


Class C Shares:
Issued		527			3,029			—			—
Redeemed		(1,282	)		(54	)		—			—

Change in Class C Shares		(755	)		2,975			—			—


Class I Shares:
Issued		404,585			705,610			108,247			1,420,299
Reinvested		—			—			160,579			173,656
Redeemed		(517,557	)		(563,535	)		(170,333	)		(15,335,841	)

Change in Class I Shares		(112,972	)		142,075			98,493			13,741,886


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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Opportunity Fund						Opportunity Fund (Advisor)

	For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

Investment Activities:
Operations:
Net investment income (loss)	$	(46,208	)	$	(125,276	)	$	(51,230	)	$	(505,560	)
Net realized gains (losses) from investments transactions		1,196,218			1,493,153			11,574,524			13,711,938
Change in unrealized appreciation/depreciation on investments		2,409,371			1,480,059			23,992,712			14,318,171

Change in net assets resulting from operations		3,559,381			2,847,936			35,516,006			27,524,549


Dividends:
Net realized gains:
Class A Shares		(183,592	)		—			—			—
Class B Shares		(11,590	)		—			—			—
Class C Shares		(6,561	)		—			—			—
Class I Shares		—			—			(2,935,113	)		—

Change in net assets resulting from shareholder dividends		(201,743	)		—			(2,935,113	)		—

Change in net assets resulting from capital transactions		(435,499	)		(1,603,281	)		(335,100	)		(10,745,516	)

Change in net assets		2,922,139			1,244,655			32,245,793			16,779,033


Net Assets:
Beginning of period		12,281,085			11,036,430			117,064,332			100,285,299

End of period	$	15,203,224		$	12,281,085		$	149,310,125		$	117,064,332

Accumulated net investment income (loss)	$	(46,208	)	$	—		$	(51,230	)	$	—


24	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, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,133,393		$	958,979		$	—		$	—
Dividends reinvested		182,620			—			—			—
Value of shares redeemed		(1,591,388	)		(1,934,533	)		—			—

Class A Shares capital transactions		(275,375	)		(975,554	)		—			—


Class B Shares:
Proceeds from shares issued		30,814			64,053			—			—
Dividends reinvested		11,521			—			—			—
Value of shares redeemed		(196,888	)		(692,276	)		—			—

Class B Shares capital transactions		(154,553	)		(628,223	)		—			—


Class C Shares:
Proceeds from shares issued		7,164			15,200			—			—
Dividends reinvested		6,561			—			—			—
Value of shares redeemed		(19,296	)		(14,704	)		—			—

Class C Shares capital transactions		(5,571	)		496			—			—


Class I Shares:
Proceeds from shares issued		—			—			11,515,492			15,064,090
Dividends reinvested		—			—			2,626,240			—
Value of shares redeemed		—			—			(14,476,832	)		(25,809,606	)

Class I Shares capital transactions		—			—			(335,100	)		(10,745,516	)

Change in net assets resulting from capital transactions	$	(435,499	)	$	(1,603,281	)	$	(335,100	)	$	(10,745,516	)


SHARE TRANSACTIONS:
Class A Shares:
Issued		100,301			111,213			—			—
Reinvested		17,099			—			—			—
Redeemed		(145,280	)		(226,379	)		—			—

Change in Class A Shares		(27,880	)		(115,166	)		—			—


Class B Shares:
Issued		3,330			8,548			—			—
Reinvested		1,296			—			—			—
Redeemed		(22,064	)		(97,089	)		—			—

Change in Class B Shares		(17,438	)		(88,541	)		—			—


Class C Shares:
Issued		788			2,110			—			—
Reinvested		723			—			—			—
Redeemed		(2,174	)		(1,877	)		—			—

Change in Class C Shares		(663	)		233			—			—


Class I Shares:
Issued		—			—			814,223			1,318,081
Reinvested		—			—			187,589			—
Redeemed		—			—			(1,005,863	)		(2,249,632	)

Change in Class I Shares		—			—			(4,051	)		(931,551	)


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

HSBC INVESTOR FAMILY OF FUNDS

Statements of Changes in Net Assets (continued)


	Overseas Equity Fund						Value Fund

	For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

Investment Activities:
Operations:
Net investment income (loss)	$	24,325		$	61,975		$	49,085		$	153,770
Net realized gains (losses) from investments transactions		408,427			(292,078	)		118,219			222,525
Change in unrealized appreciation/depreciation on investments		270,831			543,769			5,052,156			3,453,894

Change in net assets resulting from operations		703,583			313,666			5,219,460			3,830,189


Dividends:
Net investment income:
Class A Shares		(176,658	)		(97,964	)		(10,330	)		(47,448	)
Class B Shares		(16,000	)		(10,236	)		—			—
Class C Shares		(1,236	)		(616	)		—			—
Class I Shares		—			—			(40,840	)		(115,714	)

Change in net assets resulting from shareholder dividends		(193,894	)		(108,816	)		(51,170	)		(163,162	)

Change in net assets resulting from capital transactions		(267,446	)		(981,210	)		(2,323,943	)		(1,252,262	)

Change in net assets		242,243			(776,360	)		2,844,347			2,414,765

Net Assets:
Beginning of period		6,182,168			6,958,528			32,431,296			30,016,531

End of period	$	6,424,411		$	6,182,168		$	35,275,643		$	32,431,296

Accumulated net investment income (loss)	$	6,509		$	176,079		$	(2,085	)	$	—


26	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, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	165,142		$	583,913		$	185,314		$	710,206
Dividends reinvested		169,153			97,142			9,641			47,084
Value of shares redeemed		(492,503	)		(1,265,995	)		(1,243,705	)		(2,905,337	)

Class A Shares capital transactions		(158,208	)		(584,940	)		(1,048,750	)		(2,148,047	)


Class B Shares:
Proceeds from shares issued		6,770			18,410			6,999			9,750
Dividends reinvested		15,932			10,191			—			—
Value of shares redeemed		(123,603	)		(421,250	)		(82,004	)		(270,952	)

Class B Shares capital transactions		(100,901	)		(392,649	)		(75,005	)		(261,202	)


Class C Shares:
Proceeds from shares issued		—			—			—			110
Dividends reinvested		1,236			616			—			—
Value of shares redeemed		(9,573	)		(4,237	)		(550	)		(850	)

Class C Shares capital transactions		(8,337	)		(3,621	)		(550	)		(740	)


Class I Shares:
Proceeds from shares issued		—			—			2,574,915			4,792,318
Dividends reinvested		—			—			32,732			104,270
Value of shares redeemed		—			—			(3,807,285	)		(3,738,861	)

Class I Shares capital transactions		—			—			(1,199,638	)		1,157,727

Change in net assets resulting from capital transactions	$	(267,446	)	$	(981,210	)	$	(2,323,943	)	$	(1,252,262	)


SHARE TRANSACTIONS:
Class A Shares:
Issued		38,520			145,520			14,290			60,743
Reinvested		41,057			23,521			757			4,327
Redeemed		(116,119	)		(312,739	)		(95,535	)		(255,968	)

Change in Class A Shares		(36,542	)		(143,698	)		(80,488	)		(190,898	)


Class B Shares:
Issued		1,803			5,508			579			870
Reinvested		4,401			2,807			—			—
Redeemed		(32,651	)		(118,364	)		(6,590	)		(25,045	)

Change in Class B Shares		(26,447	)		(110,049	)		(6,011	)		(24,175	)


Class C Shares:
Reinvested		315			156			—			—
Redeemed		(2,373	)		(1,132	)		(45	)		(80	)

Change in Class C Shares		(2,058	)		(976	)		(45	)		(80	)


Class I Shares:
Issued		—			—			198,723			418,459
Reinvested		—			—			2,577			9,616
Redeemed		—			—			(292,694	)		(330,213	)

Change in Class I Shares		—			—			(91,394	)		97,862


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

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, 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
Year Ended October 31, 2010			12.54		(0.07	)*		2.55			2.48			—			—			—				15.02
Six Months Ended April 30, 2011 (Unaudited)			15.02		(0.01	)*		2.88			2.87			—			—			—				17.89

CLASS B SHARES
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
Year Ended October 31, 2010			11.60		(0.16	)*		2.36			2.20			—			—			—				13.80
Six Months Ended April 30, 2011 (Unaudited)			13.80		(0.07	)*		2.65			2.58			—			—			—				16.38

CLASS C SHARES
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
Year Ended October 31, 2010			11.68		(0.17	)*		2.38			2.21			—			—			—				13.89
Six Months Ended April 30, 2011 (Unaudited)			13.89		(0.07	)*		2.66			2.59			—			—			—				16.48

CLASS I SHARES
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
Year Ended October 31, 2010			12.65		(0.04	)*		2.58			2.54			—			—			—				15.19
Six Months Ended April 30, 2011 (Unaudited)			15.19		—	*		2.93			2.93			—			—			—				18.12


			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 (b)(e)

CLASS A SHARES
Year Ended October 31, 2006	6.92	%		$	21,985	1.20	%		(0.14	)%	1.44	%	75.06	%
Year Ended October 31, 2007	30.45	%(g)			30,858	1.11	%(g)		(0.03	)%(g)	1.22	%	57.04	%
Year Ended October 31, 2008	(38.23	)%(h)			17,180	1.20	%		(0.36	)%	1.22	%	157.87	%
Year Ended October 31, 2009	18.86	%(i)			15,896	1.20	%		(0.33	)%	1.31	%	65.67	%
Year Ended October 31, 2010	19.78	% (j)(k)			16,452	1.20	%		(0.54	)%(k)	1.23	%	89.14	%
Six Months Ended April 30, 2011 (Unaudited)	19.11	%(l)			17,914	1.19	%		(0.18	)%	1.19	%	27.13	%

CLASS B SHARES
Year Ended October 31, 2006	6.16	%		$	1,446	1.95	%		(0.88	)%	2.19	%	75.06	%
Year Ended October 31, 2007	29.43	%(g)			1,630	1.86	%(g)		(0.78	)%(g)	1.98	%	57.04	%
Year Ended October 31, 2008	(38.62	)%(h)			2,839	1.95	%		(1.20	)%	1.96	%	157.87	%
Year Ended October 31, 2009	17.87	%(i)			2,059	1.95	%		(1.06	)%	2.06	%	65.67	%
Year Ended October 31, 2010	18.97	%(j)(k)			1,213	1.95	%		(1.28	)%(k)	1.98	%	89.14	%
Six Months Ended April 30, 2011 (Unaudited)	18.70	%(l)			1,155	1.93	%		(0.95	)%	1.93	%	27.13	%

CLASS C SHARES
Year Ended October 31, 2006	6.13	%		$	270	1.95	%		(0.89	)%	2.18	%	75.06	%
Year Ended October 31, 2007	29.49	%(g)			98	1.86	%(g)		(0.79	)%(g)	1.96	%	57.04	%
Year Ended October 31, 2008	(38.63	)%(h)			72	1.95	%		(1.13	)%	1.97	%	157.87	%
Year Ended October 31, 2009	17.86	%(i)			120	1.95	%		(1.12	)%	2.05	%	65.67	%
Year Ended October 31, 2010	18.92	%(j)(k)			184	1.95	%		(1.30	)(k)	1.99	%	89.14	%
Six Months Ended April 30, 2011 (Unaudited)	18.65	%(l)			206	1.94	%		(0.93	)%	1.94	%	27.13	%

CLASS I SHARES
Year Ended October 31, 2006	7.21	%		$	15,042	0.95	%		0.12	%	1.19	%	75.06	%
Year Ended October 31, 2007	30.73	%(g)			30,295	0.87	%(g)		0.20	%(g)	0.96	%	57.04	%
Year Ended October 31, 2008	(38.07	)%(h)			38,868	0.95	%		(0.16	)%	0.97	%	157.87	%
Year Ended October 31, 2009	19.11	%(i)			39,400	0.95	%		(0.08	)%	1.06	%	65.67	%
Year Ended October 31, 2010	20.08	%(j)(k)			49,474	0.95	%		(0.30	)%(k)	0.99	%	89.14	%
Six Months Ended April 30, 2011 (Unaudited)	19.29	%(l)			56,955	0.94	%		0.06	%	0.94	%	27.13	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor 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)	Excludes fee reductions. 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 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, 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.

(h)	During the year ended October 31, 2008, the 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.

(i)	During the year ended October 31, 2009, the 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.

(j)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.17%, 0.17%, 0.17% and 0.17% for Class A Shares, Class B Shares, Class C Shares, and Class I Shares, respectively.

(k)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc.
	(See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.02%, 0.02%, 0.02% and 0.02% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

(l)	During the period ended April 30, 2011, 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%, 0.18%, 0.18% and 0.18% for Class A Shares, Class B Shares, Class C Shares, and Class I Shares, respectively.


28	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, 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
Year Ended October 31, 2010			12.16	2.25	(1.53	)	0.72		(0.19	)	—		(0.19	)			12.69
Six Months Ended April 30, 2011 (Unaudited)			12.69	0.17	1.12		1.29		(2.19	)	—		(2.19	)			11.79


			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, 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	%
Year Ended October 31, 2010	5.99	%(h)(i)			13,767	0.87	%	2.27	%(i)	0.90	%	63.35	%
Six Months Ended April 30, 2011 (Unaudited)	12.17	%			13,951	1.00	%	1.97	%	1.78	%	129.61	%(j)


(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)	Excludes fee reductions. 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 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% for Class I Shares

(h)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact of the total return was 0.32% for Class I Shares.

(i)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. (See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and total return was 0.01% and 0.06%, respectively, for Class I Shares.

(j)	Effective at the close of business on January 12, 2011, the HSBC Investor International Equity Portfolio, in which the Fund invests all of its investable assets, changed its subadviser from AllianceBernstein L.P. to Lord, Abbett & Co. LLC. As a result, the portfolio turnover rate was higher than historical rates.


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

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, 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
Year Ended October 31, 2010			7.56	(0.09	)*	2.20		2.11		—		—				9.67
Six Months Ended April 30, 2011 (Unaudited)			9.67	(0.03	)*	2.91		2.88		(0.16	)	(0.16	)			12.39

CLASS B SHARES
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
Year Ended October 31, 2010			6.37	(0.13	)*	1.85		1.72		—		—				8.09
Six Months Ended April 30, 2011 (Unaudited)			8.09	(0.06	)*	2.43		2.37		(0.16	)	(0.16	)			10.30

CLASS C SHARES
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
Year Ended October 31, 2010			6.49	(0.13	)*	1.89		1.76		—		—				8.25
Six Months Ended April 30, 2011 (Unaudited)			8.25	(0.06	)*	2.48		2.42		(0.16	)	(0.16	)			10.51


			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 (b)(e)

CLASS A SHARES
Year Ended October 31, 2006	18.81	%		$	24,463	1.55	%	(1.04	)%	1.70	%	60.83	%
Year Ended October 31, 2007	30.28	%(f)			15,057	1.52	%(f)	(1.13	)%(f)	1.77	%	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	%
Year Ended October 31, 2010	27.91	%(g)(h)			11,282	1.55	%	(1.00	)%(h)	2.07	%	67.62	%
Six Months Ended April 30, 2011 (Unaudited)	30.07	%(i)			14,117	1.55	%	(0.62	)%	1.92	%	29.52	%

CLASS B SHARES
Year Ended October 31, 2006	17.91	%		$	4,768	2.30	%	(1.79	)%	2.45	%	60.83	%
Year Ended October 31, 2007	29.30	%(f)			4,928	2.26	%(f)	(1.91	)%(f)	2.52	%	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	%
Year Ended October 31, 2010	27.00	%(g)(h)			658	2.30	%	(1.78	)%(h)	2.86	%	67.62	%
Six Months Ended April 30, 2011 (Unaudited)	29.63	%(i)			659	2.30	%	(1.37	)%	2.70	%	29.52	%

CLASS C SHARES
Year Ended October 31, 2006	17.92	%		$	299	2.30	%	(1.78	)%	2.45	%	60.83	%
Year Ended October 31, 2007	29.32	%(f)			334	2.27	%(f)	(1.91	)%(f)	2.50	%	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	%
Year Ended October 31, 2010	27.12	%(g)(h)			341	2.30	%	(1.75	)%(h)	2.86	%	67.62	%
Six Months Ended April 30, 2011 (Unaudited)	29.66	%(i)			428	2.30	%	(1.37	)%	2.70	%	29.52	%


*	Calculated based on average shares outstanding.

(a)	The per share amounts and percentages reflect income and expense assuming the 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)	Excludes fee reductions. 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 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 0.03%, 0.04%, and 0.03% for Class A Shares, Class B Shares, and Class C Shares, respectively.

(g)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.15%, 0.15% and 0.15% for Class A Shares, Class B Shares and Class C Shares, respectively.

(h)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. (See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares and Class C Shares, respectively.

(i)	During the period ended April 30, 2011, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares and Class C Shares, respectively.


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

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, 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
Year Ended October 31, 2010			9.93	(0.06	)	2.90		2.84		—		—				12.77
Six Months Ended April 30, 2011 (Unaudited)			12.77	(0.01	)	3.84		3.83		(0.31	)	(0.31	)			16.29


			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, 2006	19.40	%		$	192,124	1.03	%	(0.51	)%	1.03	%	60.83	%
Year Ended October 31, 2007	29.42	%(f)			176,593	0.96	%(f)	(0.60	)%(f)	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	%
Year Ended October 31, 2010	28.60	%(g)(h)			117,064	1.01	%	(0.46	)%(g)	1.01	%	67.62	%
Six Months Ended April 30, 2011 (Unaudited)	30.43	%(i)			149,310	1.01	%	(0.08	)%	1.01	%	29.52	%


(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)	Excludes fee reductions. 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 Portfolio in which the Fund invests all of its investable assets.

(f)	During the year ended October 31, 2007, HSBC reimbursed amounts to certain Funds related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio, and the total return were 0.07% for the Class I Shares.

(g)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.15% for Class I Shares.

(h)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. (See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.01% for the Class I Shares.

(i)	During the period ended April 30, 2011, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.01% for Class I Shares.


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

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		Net Asset Value, End of Period

CLASS A SHARES
Year Ended October 31, 2006		$	15.59	0.22		4.45		4.67		(0.25	)	(1.16	)	(1.41	)		$	18.85
Year Ended October 31, 2007			18.85	0.22	*	3.92		4.14		(0.40	)	(2.11	)	(2.51	)			20.48
Year Ended October 31, 2008			20.48	0.24	*	(9.41	)	(9.17	)	(0.15	)	(3.31	)	(3.46	)			7.85
Year Ended October 31, 2009			7.85	0.06	*	0.47		0.53		(0.49	)	(3.79	)	(4.28	)			4.10
Year Ended October 31, 2010			4.10	0.04	*	0.17		0.21		(0.07	)	—		(0.07	)			4.24
Six Months Ended April 30, 2011 (Unaudited)			4.24	0.02	*	0.48		0.50		(0.14	)	—		(0.14	)			4.60

CLASS B SHARES
Year Ended October 31, 2006		$	14.95	0.09		4.26		4.35		(0.14	)	(1.16	)	(1.30	)		$	18.00
Year Ended October 31, 2007			18.00	0.10	*	3.70		3.80		(0.27	)	(2.11	)	(2.38	)			19.42
Year Ended October 31, 2008			19.42	0.14	*	(8.86	)	(8.72	)	(0.03	)	(3.31	)	(3.34	)			7.36
Year Ended October 31, 2009			7.36	0.03	*	0.37		0.40		(0.38	)	(3.79	)	(4.17	)			3.59
Year Ended October 31, 2010			3.59	0.01	*	0.15		0.16		(0.04	)	—		(0.04	)			3.71
Six Months Ended April 30, 2011 (Unaudited)			3.71	—	*(j)	0.43		0.43		(0.11	)	—		(0.11	)			4.03

CLASS C SHARES
Year Ended October 31, 2006		$	15.23	0.11		4.33		4.44		(0.14	)	(1.16	)	(1.30	)		$	18.37
Year Ended October 31, 2007			18.37	0.11	*	3.80		3.91		(0.23	)	(2.11	)	(2.34	)			19.94
Year Ended October 31, 2008			19.94	0.15	*	(9.15	)	(9.00	)	(0.02	)	(3.31	)	(3.33	)			7.61
Year Ended October 31, 2009			7.63	0.03	*	0.43		0.46		(0.39	)	(3.79	)	(4.18	)			3.89
Year Ended October 31, 2010			3.89	0.01	*	0.16		0.17		(0.04	)	—		(0.04	)			4.02
Six Months Ended April 30, 2011 (Unaudited)			4.02	—	*(j)	0.46		0.46		(0.10	)	—		(0.10	)			4.38


			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 (b)(e)

CLASS A SHARES
Year Ended October 31, 2006	31.85	%		$	22,761	1.67	%	1.24	%	1.67	%	33.39	%
Year Ended October 31, 2007	24.19	%(f)			16,078	1.62	%(f)	1.15	%(f)	1.64	%	26.08	%
Year Ended October 31, 2008	(52.63	)%			6,645	1.70	%	1.75	%	1.81	%	28.98	%
Year Ended October 31, 2009	23.99	%			5,939	1.70	%	1.56	%	2.52	%	58.31	%
Year Ended October 31, 2010	5.17	%(g)(h)			5,541	1.70	%	1.10	%(h)	2.71	%	63.35	%
Six Months Ended April 30, 2011 (Unaudited)	12.11	%			5,844	1.70	%	1.01	%	3.07	%	129.61	%(i)

CLASS B SHARES
Year Ended October 31, 2006	30.87	%		$	3,234	2.42	%	0.58	%	2.42	%	33.39	%
Year Ended October 31, 2007	23.26	%(f)			3,698	2.37	%(f)	0.59	%(f)	2.40	%	26.08	%
Year Ended October 31, 2008	(52.97	)%			1,249	2.45	%	1.05	%	2.56	%	28.98	%
Year Ended October 31, 2009	23.03	%			962	2.45	%	0.79	%	3.28	%	58.31	%
Year Ended October 31, 2010	4.52	%(g)(h)			585	2.45	%	0.28	%(h)	3.44	%	63.35	%
Six Months Ended April 30, 2011 (Unaudited)	11.79	%			529	2.45	%	0.17	%	3.81	%	129.61	%(i)

CLASS C SHARES
Year Ended October 31, 2006	30.92	%		$	163	2.41	%	0.58	%	2.41	%	33.39	%
Year Ended October 31, 2007	23.39	%(f)			147	2.30	%(f)	0.59	%(f)	2.32	%	26.08	%
Year Ended October 31, 2008	(52.96	)%			58	2.45	%	1.12	%	2.57	%	28.98	%
Year Ended October 31, 2009	23.01	%			58	2.45	%	0.92	%	3.28	%	58.31	%
Year Ended October 31, 2010	4.43	%(g)(h)			56	2.45	%	0.33	%(h)	3.46	%	63.35	%
Six Months Ended April 30, 2011 (Unaudited)	11.85	%			52	2.45	%	0.28	%	3.81	%	129.61	%(i)


*	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)	Excludes fee reductions. 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 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)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.34%, 0.34% and 0.34% for Class A Shares, Class B Shares and Class C Shares, respectively.

(h)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. (See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares and Class C Shares, respectively.

(i)	Effective at the close of business on January 12, 2011, the HSBC Investor International Equity Portfolio, in which the Fund invests all of its investable assets, changed its subadviser from AllianceBernstein L.P. to Lord, Abbett & Co. LLC. As a result, the portfolio turnover rate was higher than historical rates.

(j)	Represents less than $0.005 or $(0.005).


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

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, 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
Year Ended October 31, 2010			10.56	0.03	*	1.34		1.37		(0.04	)	—		(0.04	)			11.89
Six Months Ended April 30, 2011 (Unaudited)			11.89	0.01	*	1.95		1.96		(0.01	)	—		(0.01	)			13.84

CLASS B SHARES
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
Year Ended October 31, 2010			10.08	(0.04	)*	1.28		1.24		—		—		—				11.32
Six Months Ended April 30, 2011 (Unaudited)			11.32	(0.04	)*	1.85		1.81		—		—		—				13.13

CLASS C SHARES
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
Year Ended October 31, 2010			10.15	(0.04	)*	1.28		1.24		—		—		—				11.39
Six Months Ended April 30, 2011 (Unaudited)			11.39	(0.04	)*	1.87		1.83		—		—		—				13.22

CLASS I SHARES
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
Year Ended October 31, 2010			10.54	0.06	*	1.34		1.40		(0.07	)	—		(0.07	)			11.87
Six Months Ended April 30, 2011 (Unaudited)			11.87	0.02	*	1.95		1.97		(0.02	)	—		(0.02	)			13.82


			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 (b)(e)

CLASS A SHARES
Year Ended October 31, 2006	21.70	%		$	24,688	1.20	%	0.74	%	1.43	%	20.63	%
Year Ended October 31, 2007	9.77	%(f)			27,225	1.11	%(f)	0.84	%(f)	1.25	%	18.67	%
Year Ended October 31, 2008	(40.46	)%(g)			14,881	1.20	%	0.99	%	1.23	%	24.61	%
Year Ended October 31, 2009	19.59	%(h)			12,742	1.20	%	0.91	%	1.40	%	19.77	%
Year Ended October 31, 2010	13.05	%(i)(j)			12,085	1.20	%	0.36	%(j)	1.34	%	26.36	%
Six Months Ended April 30, 2011 (Unaudited)	16.50	%			12,945	1.20	%	0.14	%	1.29	%	10.48	%

CLASS B SHARES
Year Ended October 31, 2006	20.78	%		$	1,939	1.95	%	(0.01	)%	2.18	%	20.63	%
Year Ended October 31, 2007	8.92	%(f)			1,772	1.87	%(f)	0.10	%(f)	2.00	%	18.67	%
Year Ended October 31, 2008	(40.89	)%(g)			717	1.95	%	0.24	%	1.98	%	24.61	%
Year Ended October 31, 2009	18.63	%(h)			466	1.95	%	0.23	%	2.14	%	19.77	%
Year Ended October 31, 2010	12.30	%(i)(j)			250	1.95	%	(0.34	)%(j)	2.08	%	26.36	%
Six Months Ended April 30, 2011 (Unaudited)	15.99	%			211	1.95	%	(0.57	)%	2.05	%	10.48	%

CLASS C SHARES
Year Ended October 31, 2006	20.72	%		$	157	1.95	%	0.01	%	2.17	%	20.63	%
Year Ended October 31, 2007	8.95	%(f)			126	1.87	%(f)	0.11	%(f)	1.99	%	18.67	%
Year Ended October 31, 2008	(40.89	)%(g)			66	1.95	%	0.24	%	1.98	%	24.61	%
Year Ended October 31, 2009	18.60	%(h)			71	1.95	%	0.12	%	2.14	%	19.77	%
Year Ended October 31, 2010	12.32	%(i)(j)			79	1.95	%	(0.40	)%(j)	2.10	%	26.36	%
Six Months Ended April 30, 2011 (Unaudited)	15.96	%			91	1.95	%	(0.62	)%	2.05	%	10.48	%

CLASS I SHARES
Year Ended October 31, 2006	21.90	%		$	18,036	0.95	%	0.99	%	1.18	%	20.63	%
Year Ended October 31, 2007	10.04	%(f)			28,692	0.87	%(f)	1.07	%(f)	0.99	%	18.67	%
Year Ended October 31, 2008	(40.29)	%(g)			17,779	0.95	%	1.24	%	0.98	%	24.61	%
Year Ended October 31, 2009	19.82	%(h)			16,737	0.95	%	1.16	%	1.15	%	19.77	%
Year Ended October 31, 2010	13.35	%(i)(j)			20,018	0.95	%	0.60	%(j)	1.10	%	26.36	%
Six Months Ended April 30, 2011 (Unaudited)	16.65	%			22,029	0.95	%	0.39	%	1.05	%	10.48	%


*	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 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)	Excludes fee reductions. 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 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 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.

(g)	During the year ended October 31, 2008, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation 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.

(h)	During the year ended October 31, 2009, the 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.

(i)	During the year ended October 31, 2010, the Portfolio in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.06%, 0.06%, 0.06% and 0.06% for Class A Shares, Class B Shares, Class C Shares, and Class I Shares, respectively.

(j)	During the year ended October 31, 2010, certain Funds (including the Fund) received a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. (See Note 7 in Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.01%, 0.01%, 0.01% and 0.01% for Class A Shares, Class B Shares, Class C Chares and Class I Shares, respectively.


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

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2011 (Unaudited)

1. Organization:

The HSBC Investor Funds (the “Trust’’), a Massachusetts business trust organized on April 22, 1987, 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, 2011, 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 6 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 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 Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately.

Each Fund utilizes a master-feeder fund structure and seeks to achieve its investment objective by investing all of its investable assets in its respective Portfolio (as defined below).


Fund	Respective Portfolio	Proportionate Interest on April 30, 2011


Growth Fund	HSBC Investor Growth Portfolio	68.0%
International Equity Fund	HSBC Investor International Equity Portfolio	29.2%
Opportunity Fund	HSBC Investor Opportunity Portfolio	8.6%
Opportunity Fund (Advisor)	HSBC Investor Opportunity Portfolio	84.5%
Overseas Equity Fund	HSBC Investor International Equity Portfolio	14.0%
Value Fund	HSBC Investor Value Portfolio	57.8%

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 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 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.


34	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)

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 that risk of loss to be remote.

2. Significant Accounting Policies:

The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP’’). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were available to be issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report.

Securities Valuation:

The 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 in Note 3 below.

Investment Transactions and Related Income:

The 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 Funds accrue their own expenses daily as incurred.

Allocations:

Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among the applicable funds within the HSBC Investor Family of Funds in relation to the net assets of each fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis.

Dividends to Shareholders:

Dividends to shareholders from net investment income, if any, are declared and distributed 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 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.

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


HSBC INVESTOR FAMILY OF FUNDS	35

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)

amended and to distribute substantially all of its taxable net investment income and net realized gains, if any, to its shareholders. Accordingly, no provision for federal income or excise tax is required.

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

3. Investment Valuation Summary:

The valuation techniques employed by the Funds, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ investments are summarized in the three broad levels listed below:


	•	Level 1—quoted prices in active markets for identical assets

	•	Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

	•	Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

The Funds record their investments in their respective Portfolios at fair value and are typically categorized as a Level 2 in the fair value hierarchy. The underlying securities of the Portfolios are recorded at fair value as discussed more fully in the Notes to Financial Statements of the Portfolios included in this report.

For the period ended April 30, 2011, there were no Level 3 investments for which significant unobservable inputs were used to determine fail value.

The following is a summary of the valuation inputs used as of April 30, 2011 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)	$	—	$	75,808,648	$	—	$	75,808,648

Total Investment Securities	$	—	$	75,808,648	$	—	$	75,808,648


International Equity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	13,342,494	$	—	$	13,342,494

Total Investment Securities	$	—	$	13,342,494	$	—	$	13,342,494


Opportunity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	15,137,832	$	—	$	15,137,832

Total Investment Securities	$	—	$	15,137,832	$	—	$	15,137,832


Opportunity Fund (Advisor)
Investment Securities:
Affiliated Portfolios (a)	$	—	$	149,185,117	$	—	$	149,185,117

Total Investment Securities	$	—	$	149,185,117	$	—	$	149,185,117


36	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	LEVEL 1		LEVEL 2		LEVEL 3		Total

Overseas Equity Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	6,383,482	$	—	$	6,383,482

Total Investment Securities	$	—	$	6,383,482	$	—	$	6,383,482


Value Fund
Investment Securities:
Affiliated Portfolios (a)	$	—	$	35,197,393	$	—	$	35,197,393

Total Investment Securities	$	—	$	35,197,393	$	—	$	35,197,393



(a)	Investments in Affiliated Portfolios represent ownership interests in the Portfolios. Due to the Funds’ master-feeder structure, the inputs used for valuing these instruments are categorized as Level 2.

The Trust recognizes significant transfers between fair value hierarchy levels at the reporting period end. There were no significant transfers between Levels 1, 2 or 3 as of April 30, 2011.

In May 2011, the Financial Accounting Standards Board issued an Accounting Standards Update No. 2011-04 (“ASU 2011-04”), “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined.

4. Related Party Transactions 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 Portfolios. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments. The 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 an annual rate of:


Based on Average Daily Net Assets of	Fee Rate

Up to $10 billion		0.0550	%
In excess of $10 billion but not exceeding $20 billion		0.0350	%
In excess of $20 billion but not exceeding $50 billion		0.0275	%
In excess of $50 billion		0.0250	%

The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets for each class. For assets invested in the Portfolios by the Funds, the Portfolios pay half of the administration fee and the 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’’), a wholly-owned subsidiary of Citigroup, Inc., serves as the Trusts’ Sub-Administrator, subject to the general supervision of the Trusts’


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Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)

Board of Trustees and HSBC. For these services, Citi is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02%, which is retained by HSBC.

Under a Compliance Services Agreement between the Trust and Citi (the “CCO Agreement’’), Citi makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi $137,025 for the period ended April 30, 2011, plus reimbursement of certain out of pocket expenses. Expenses incurred by each Fund are reflected on the Statements of Operations as “Compliance Service.’’ Citi pays the salary and other compensation earned by individuals performing these services, as employees of Citi.

Distribution Arrangements:

Foreside Distribution Services, L.P. (‘Foreside’), a wholly-owned subsidiary of Foreside Financial Group LLC, serves the 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 period end, Foreside, as Distributor, also received $563,987, $446,210 and $49,225 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $30, $6 and $36 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.

Fund Accounting and Transfer Agency:

Citi provides fund accounting and transfer agency services for each Fund. As transfer agent, Citi receives a fee based on the number of Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant, Citi receives an annual fee per Fund and share class, subject to certain minimums and reimbursement of certain expenses. Citi receives additional fees paid by the Trust for blue sky exemption services.

Independent Trustees:

Each non-interested Trustee is compensated with a $63,000 annual Board retainer for service as a Trustee of the Trusts and Portfolio Trust, as well as a $3,000 annual retainer for each Committee of the Board of the Trusts 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. Any emeritus Trustees will be compensated for their services in accordance with a predetermined portion of the non-interested Trustee compensation schedule approved by the Board of Trustees.

Fee Reductions:

The Investment Adviser has agreed to contractually limit, through March 1, 2012, the total expenses, exclusive of interest, taxes, brokerage commissions and extraordinary expenses, of 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:


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Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


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	%
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, 2011, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of April 30, 2011, the repayments that may potentially be made by the Funds are as follows:


Fund	2013*		2013*		2012*		2011*

Growth Fund	$	—	$	22,001	$	56,048	$	7,580
Opportunity Fund		18,782		49,041		65,792		—
Overseas Equity Fund		33,237		53,391		45,169		—
Value Fund		16,013		45,129		55,991		13,116



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


	HSBC voluntarily limits the annual total expenses, exclusive of interest, taxes, brokerage commissions and extraordinary expenses of the International Equity Fund. The expense limitation is based on average daily net assets for any full fiscal year as follows:


	The Administrator and Citi 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 are reported separately on the Statements of Operations, as applicable.

5.	Investment Transactions:

	Contributions and withdrawals of the respective Portfolios for the period ended April 30, 2011 totaled:


Fund	Contributions		Withdrawals

Growth Fund	$	3,281,333	$	1,032,606
International Equity Fund		1,108,105		2,121,251
Opportunity Fund		725,105		1,511,018
Opportunity Fund (Advisor)		7,047,558		10,593,382
Overseas Equity Fund		158,507		593,784
Value Fund		1,673,581		4,168,260


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Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


6.	Federal Income Tax Information:

	The tax character of dividends paid by the Funds for the year ended October 31, 2010 was as follows:


	Dividends paid from

	Ordinary Income		Net Long Term Capital Gains		Total Dividends Paid*

Growth Fund	$	—	$	—	$	—
International Equity Fund		2,826,752		—		2,826,752
Mid-Cap Fund		37,966		—		37,966
Opportunity Fund		—		—		—
Opportunity Fund (Advisor)		—		—		—
Overseas Equity Fund		108,816		—		108,816
Value Fund		163,162		—		163,162



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

As of the latest tax year ended October 31, 2010, the components of accumulated earnings/(deficit) on a tax basis for the Funds were as follows:


	Undistributed Ordinary Income		Undistributed Long Term Capital Gains		Accumulated Earnings		Dividends Payable		Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)⁽¹⁾		Total Accumulated Earnings/ (Deficit)

Growth Fund	$	—	$	—	$	—	$	—	$	(9,748,249	)	$	12,347,061	$	2,598,812
International Equity Fund		2,252,180		—		2,252,180		—		(71,453,812	)		490,152		(68,711,480	)
Mid-Cap Fund		—		—		—		—		(2,389,636	)		3,225,011		835,375
Opportunity Fund		—		201,742		201,742		—		—			1,313,207		1,514,949
Opportunity Fund (Advisor)		—		2,935,111		2,935,111		—		—			12,771,676		15,706,787
Overseas Equity Fund		193,893		—		193,893		—		(1,183,101	)		223,139		(766,069	)
Value Fund		—		—		—		—		(5,476,316	)		777,561		(4,698,755	)



(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, 2010, the following Funds have net capital loss carryforwards, which are available to offset future realized gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.


Fund	Amount		Expires

Growth Fund	$	9,748,249	2017
International Equity Fund		59,383,976	2017
International Equity Fund		12,069,836	2018
Mid-Cap Fund		2,389,636	2017
Overseas Fund		1,183,101	2017
Value Fund		4,161,559	2016
Value Fund		1,314,757	2017


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Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	During the tax year ended October 31, 2010, the following Funds utilized capital loss carryforwards to offset capital gains realized:


Fund	Amount

Growth Fund	$	1,882,720
Opportunity Fund		1,305,884
Opportunity Fund (Advisor)		10,911,778
Overseas Fund		1,185,304
Value Fund		539,878


	The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) was enacted on December 22, 2010. The RIC Modernization Act makes changes to several tax rules impacting the Funds. In general, the provisions of the RIC Modernization Act will be effective for the Funds’ fiscal year ending October 31, 2012. Although the RIC Modernization Act provides several benefits, including the unlimited carryover of future capital losses, there may be a greater likelihood that all or a portion of each Fund’s pre-enactment capital loss carryovers, if any, may expire without being utilized due to the fact that post-enactment capital losses get utilized before pre-enactment capital loss carryovers. Relevant information regarding the impact of the RIC Modernization Act on a Fund, if any, will be contained within the “Federal Taxes” section of the financial statement notes for the fiscal year ending October 31, 2012.

7.	Legal and Regulatory Matters:

	On September 26, 2006, BISYS Fund Services, Inc. (“BISYS’’), an affiliate of BISYS Fund Services Ohio, Inc. which provided various services to the Funds, reached a settlement with the Securities and Exchange Commission (the “SEC’’) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. The related settlement monies were received by the Funds during the year ended October 31, 2010. The corresponding impact to the net income ratio and total return for the year ended October 31, 2010 are disclosed in the Funds’ Financial Highlights.


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Investment Adviser Contract Approval (Unaudited)


Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), generally requires that a majority of the trustees of a mutual fund who are not parties to an investment advisory agreement for the fund or “interested persons” of the fund, as defined in the 1940 Act (the “Independent Trustees”) review and approve the investment advisory agreement at an in person meeting for an initial period of up to two years and thereafter on an annual basis. A summary of the material factors considered by the Independent Trustees and the Boards of Trustees (the “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (each, a “Trust”) in connection with approving investment advisory and sub-advisory agreements for the series of the Trusts (each, a “Fund”) during the semi-annual period ended April 30, 2011 and the conclusions the Independent Trustees and Board made as a result of those considerations are set forth below.

I. Annual Continuation of Advisory and Sub-Advisory Agreements

The Board met in person on December 7, 2010 and the Contracts and Expense Committee thereof, which consists of the Independent Trustees of the Trusts (the “Contracts Committee”), met on November 22 and December 6, 2010 to consider, among other things:

	•	the approval of the continuation of the: (i) Investment Advisory Contracts and related Supplements (“Advisory Contracts”) between the Trusts and HSBC Global Asset Management (USA) Inc. (the “Adviser”) and (ii) Sub-Advisory Agreements (“Sub-Advisory Contracts”) between the Adviser and each investment sub-adviser (“Sub-Adviser”) to one or more Funds; and

	•	the approval of the continuation of certain other ancillary agreements to which the Adviser is a party that obligate the Adviser to provide the Funds with administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (each, an “Ancillary Agreement”).

Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Advisory Contracts, Sub-Advisory Contracts and Ancillary Agreements (collectively, the “Agreements”). This information included, among other things, information about: (i) the services that the Adviser and Sub-Advisers provide; (ii) the personnel who provide such services; (iii) investment performance; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc.; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Contracts Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

On November 22, 2010, the Contracts Committee convened and its members reviewed the information provided in advance of the meeting and discussed, among other things: (i) the Ancillary Agreements; (ii) the Trusts’ arrangements with the Sub-Advisers and the Funds advised by the Sub-Advisers; and (iii) the Adviser’s investment advisory arrangements with respect to the World Selection Funds. At the conclusion of the meeting, the Committee requested certain additional information from the Adviser with respect to the services provided or proposed to be provided under the Ancillary Agreements, among other matters. The Contracts Committee also convened on December 6, 2010 to discuss, among other things: (i) the Adviser’s advisory services with respect to the Funds that are money market funds (“Money Market Funds”); (ii) the Adviser’s profitability; and (iii) the Adviser’s response to the follow-up questions posed by the Contracts Committee following the November 22, 2010 Contracts Committee meeting. Following the December 6 Contracts Committee meeting, the members of the Contracts Committee determined to recommend to the Board, including the Independent Trustees, that the Agreements be continued for an additional one-year period.

At the in-person meeting held on December 7, 2010, the Board, including the Independent Trustees, reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the previous deliberations and recommendation of the Contracts Committee. As a result of this process, the Board and Independent Trustees determined to approve the continuation of the Agreements with respect to each Fund.

The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to


42	HSBC INVESTOR FAMILY OF FUNDS

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Investment Adviser Contract Approval (Unaudited) (continued)


	the Funds, as well as the quality and experience of the Adviser’s personnel. In this regard, the Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit with respect to the World Selection Funds and the equity Funds, as well as the capabilities and performance of the Adviser’s portfolio management and credit review teams with respect to the Money Market Funds. The Independent Trustees also considered the nature, quality and extent of the administrative support services that the Adviser provides to the Funds, including the Adviser’s oversight and management of the Funds’ other service providers.

	The Independent Trustees also took note of: (i) the long-term relationship between the Adviser and the Funds; (ii) the Adviser’s reputation and financial condition; and (iii) the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. With respect to the Money Market Funds, the Independent Trustees considered the financial support the Adviser and its affiliates have afforded the Money Market Funds, in terms of both the actions taken with respect to structured investment vehicle investments in 2008 and the fee waivers and reimbursements made to maintain a non-negative yield for the Money Market Funds more recently. In addition, the Independent Trustees considered the Adviser’s performance in fulfilling its responsibilities for overseeing its own and the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives.

	The Independent Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide to their respective Funds. In this regard, the Independent Trustees considered the investment performance and the portfolio risk characteristics achieved by the Sub-Advisers and the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, among other factors. In the context of the HSBC Investor International Equity Portfolio (“International Equity Portfolio” or “Portfolio”), the Independent Trustees considered that, although they were not satisfied with the performance of the Portfolio, the Adviser had taken steps to address the Portfolio’s performance, including proposing the approval of Lord, Abbett & Co. LLC (“Lord Abbett”) to replace AllianceBernstein L.P. (“AllianceBernstein”) as investment sub-adviser to the Portfolio at the Board meeting held on December 7, and that AllianceBernstein’s services should be evaluated on the basis that AllianceBernstein likely would be replaced by Lord Abbett early in 2011.

	Based on these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers, and that the services provided supported continuance of the Agreements.

	Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered the investment performance of each Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. In the case of the International Equity Portfolio, as noted above, the Independent Trustees considered that the Adviser had taken steps to address performance that the Independent Trustees did not deem satisfactory, including proposing that Lord Abbett become the investment sub-adviser of the Fund in place of AllianceBernstein. In the context of the Money Market Funds, the Independent Trustees considered the yield support that the Adviser had provided in order for the Money Market Funds to retain non-negative performance. The Independent Trustees determined that the Funds’ investment performance and the Adviser’s actions to improve investment performance, where applicable, supported continuance of the Agreements.

	Costs of Services and Profits Realized by the Adviser and Sub-Advisers. The Independent Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. The Independent Trustees considered the Adviser’s profitability and costs, including by means of an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Independent Trustees also considered the advisory fees under the Advisory Contracts and compared those fees to the fees of similar funds, which had been compiled and provided by Lipper Inc. The Independent Trustees determined that the Funds had advisory fees competitive with those of similar funds, noting the resources, expertise and experience provided to the Funds.

	The Independent Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Independent Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts.


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Investment Adviser Contract Approval (Unaudited) (continued)


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

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

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

	Other Relevant Considerations. The Independent Trustees also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Independent Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce or control the overall operating expenses of those Funds. The Independent Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services.

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

	II. Approval of Sub-Advisory Agreement for the HSBC Investor International Equity Fund

	The Valuation and Investment Oversight Committee of the Board (the “Investment Committee”), which consists of the Independent Trustees, and the Board met in person and considered the initial approval of the Investment Sub-Advisory Agreement between the Adviser and Lord Abbett with respect to the International Equity Portfolio on December 6 and 7, 2010, respectively. The HSBC Investor International Equity Fund series of HSBC Advisor Funds Trust and the HSBC Investor Overseas Fund series of HSBC Investor Funds each invests all of its investable assets in the International Equity Portfolio in a master-feeder structure.

	Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Investment Sub-Advisory Agreement. This information included, among other things, information about: (i) the services that Lord Abbett would provide; (ii) the personnel who would provide such services; (iii) investment performance; (iv) fees that would be received by Lord Abbett, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; and (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

	At the meeting of the Investment Committee, the Committee members received a presentation by Lord Abbett and discussed the information presented at and the materials provided in advance of the meeting. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that Lord Abbett replace AllianceBernstein as the Sub-Adviser of the Portfolio. At the meeting of the Board, the Independent Trustees considered the recommendation of the Investment Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the Investment Sub-Advisory Agreement with respect to the Portfolio for an initial term of two years.

	The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

	Nature, Extent, and Quality of Services to be Provided by the Sub-Adviser. The Independent Trustees considered information provided by the Adviser on Lord Abbett’s history, investment selection process, style tilt and flexibility, performance and tracking error. The Independent Trustees considered Lord Abbett’s organizational structure and biographical information on key employees of the firm. The Independent Trustees noted the Adviser’s view that Lord Abbett has


44	HSBC INVESTOR FAMILY OF FUNDS

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Investment Adviser Contract Approval (Unaudited) (continued)


competitive advantages in the strong team dynamic of its core international strategy team members, the risk management framework used in managing portfolios, and the collaboration between the portfolio management team and others within the firm. The Independent Trustees also noted the Adviser’s comparison of Lord Abbett’s investment process to that of AllianceBernstein and the Adviser’s belief that Lord Abbett’s investment process had produced more stable returns over the longer term than that of AllianceBernstein. The Independent Trustees concluded that the nature, extent and quality of the services that Lord Abbett appeared able to provide supported engaging Lord Abbett to be the Portfolio’s Sub-Adviser.

Investment Performance of the Sub-Adviser. The Independent Trustees considered Lord Abbett’s performance with respect to its international equity strategy over various time periods, including one, three, five and ten years. The Independent Trustees noted that the firm’s 2009 performance for the international equity strategy had been negatively affected by its fourth quarter results, but that its three year and five year performance had remained strong. The Independent Trustees also noted the consistency of Lord Abbett’s investment performance over the past five calendar years, noting that 2006 was the only year where the firm had underperformed versus the MSCI EAFE Large Cap Core Index. The Independent Trustees also noted that Lord Abbett’s consistent performance was demonstrated by its scoring in the top quartile for relative and absolute risk efficiency during that period. The Independent Trustees concluded that Lord Abbett’s investment performance for its international strategy supported its engagement as Sub-Adviser to the Portfolio.

Costs of Services and Profits Realized by the Sub-Adviser. The Independent Trustees considered the proposed fee for providing sub-advisory services to the Portfolio and the fact that the fee was identical to the fee currently paid to AllianceBernstein. The Independent Trustees considered the information presented regarding the competitiveness of the International Equity Portfolio’s advisory fees and the total expense ratios of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund more generally in light of the proposed sub-advisory fee. The Independent Trustees concluded that the fee proposed to be paid to Lord Abbett is fair and reasonable.

Other Relevant Considerations. Among other factors, the Independent Trustees considered the needs of the shareholders of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund in terms of investment performance, as determined by the Multimanager team of the Adviser, the Adviser’s efforts to locate one or more investment sub-advisers that had a track record of producing investment performance with the desired attributes, individually or as a group, and the relative difficulty in interesting potential candidates to pursue the sub-advisory relationship with the Portfolio, given its relatively small asset size. The Independent Trustees also considered the extent to which the Portfolio’s expense structure may permit economies of scale to be shared with the Portfolio’s shareholders and the extent to which the Portfolio’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses for the HSBC Investor Overseas Fund in order to reduce or control the overall operating expenses of the Fund.

In light of the above considerations and such other factors and information it considered relevant, the Board by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved the proposed Sub-Advisory Agreement with respect to the International Equity Portfolio for an initial term of two years.

III. Approval of an Advisory Contract Supplement and Sub-Advisory Agreement for the HSBC Investor Risk Managed Fund

On February 28, 2011, the Contracts Committee and the Board met in person to consider the expansion of the HSBC Investor Funds family to include a new series of HSBC Investor Funds, the HSBC Investor Risk Managed Fund (“Risk Managed Fund”) and, in connection therewith, approving:

	•	the Advisory Contract between the Adviser and the Trust with respect to the Risk Managed Fund and the related Contract Supplement applicable to the Risk Managed Fund (“RM Advisory Agreement”);

	•	a Sub-Advisory Agreement between the Adviser and Sinopia Asset Management (“Sinopia”) with respect to the Risk Managed Fund (“RM Sub-Advisory Agreement”); and

	•	the Trust’s Ancillary Agreements applicable to the Risk Managed Fund

Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the RM Advisory Agreement, the RM Sub-Advisory Agreement and the Ancillary Agreements applicable to the Risk Managed Fund (collectively, the “RM Agreements”). This information included, among other things, information about: (i) the services the Adviser and Sinopia would provide to the Risk Managed Fund; (ii) per-


HSBC INVESTOR FAMILY OF FUNDS	45

HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited) (continued)


	sonnel who provide such services; (iii) relevant past investment performance of Sinopia; and (iv) fees proposed to be received by the Adviser and Sinopia with respect to the Risk Managed Fund in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Contracts Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

	At its meeting, the Contracts Committee reviewed and discussed the information provided in advance of the meeting and received a presentation about Sinopia. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that the RM Agreements be approved with respect to the Risk Managed Fund, subject to the completion by the Funds’ Chief Compliance Officer of his review of Sinopia’s compliance program and final confirmation that the Adviser and Sinopia wished for the sub-advisory fee to be split evenly as proposed. At the meeting of the Board, the Independent Trustees considered the recommendation of the Contracts Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the RM Agreements with respect to the Risk Managed Fund, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program and final confirmation by the Adviser and Sinopia as to the sub-advisory fee. Subsequent to the meeting, the Chief Compliance Officer completed his review and indicated to the Board that he was satisfied with Sinopia’s compliance program and the sub-advisory fee was finalized as proposed.

	The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

	Nature, Extent, and Quality of Services Provided by Adviser and Sinopia. The Independent Trustees considered the nature, quality and extent of the investment advisory services to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. With respect to the Adviser, the Independent Trustees considered that the services provided would be consistent with those provided to other Funds, and therefore considered the same points as they did in considering the annual renewal of the Advisory Contract in December 2010 as set forth above.

	With respect to Sinopia, the Independent Trustees considered the scope of Sinopia’s business and Sinopia’s experience with respect to the proposed investment strategy for the Risk Managed Fund. The Independent Trustees also considered the quality and experience of the personnel proposed to manage the Risk Managed Fund’s assets and information about the past investment performance of an account managed by Sinopia using an investment strategy substantially similar to that proposed for the Risk Managed Fund (the “Performance Information”).

	Based upon these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services proposed to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund.

	Investment Performance of Sinopia. The Independent Trustees considered performance information provided by the Adviser regarding an account managed by Sinopia in accordance with an investment objective and strategy substantially similar to that proposed for the Risk Managed Fund, including how the account in question had performed in both bull and bear markets and how the performance had compared to a benchmark. The Independent Trustees concluded that the investment performance presented supported the initial approval of the RM Sub-Advisory Agreement.

	Costs of Proposed Services and Profits to be Realized by the Adviser and Sinopia. The Independent Trustees considered the costs of the proposed services to be provided by the Adviser and Sinopia to the Risk Managed Fund. In this regard, the Independent Trustees considered information pertaining to the proposed advisory fees and the projected total expense ratios as compared to other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. The Independent Trustees also considered certain information on the Adviser’s profitability with respect to its relationship with the Funds that had been presented at the December 7, 2010 meeting of the Board of Trustees, as set forth above. The Independent Trustees concluded that the advisory fees proposed to be payable to the Adviser and Sinopia are fair and reasonable in light of the factors set forth above.

	Other Relevant Considerations. The Independent Trustees also considered the extent to which the Risk Managed Fund’s expense structure may permit economies of scale to be shared with the Fund’s shareholders and the extent to which the Risk Managed Fund’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses proposed to be provided by the Adviser with respect to the Funds in order to reduce or control the overall operating expenses of the Fund.


46	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited) (continued)

Accordingly, in light of the above considerations and such other factors and information it considered relevant, the Board of Trustees by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved the RM Agreements, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program.


HSBC INVESTOR FAMILY OF FUNDS	47

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses—as of April 30, 2011 (Unaudited)


	As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees and exchange fees and (2) ongoing costs, including management fees, distribution fees 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, 2010 through April 30, 2011.

	Actual Example

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


		Beginning Account Value 11/1/10			Ending Account Value 4/30/11			Expenses Paid During Period* 11/1/10 - 4/30/11			Annualized Expense Ratio During Period 11/1/10 - 4/30/11

Growth Fund	Class A Shares		$	1,000.00		$	1,191.10		$	6.46		1.19%
	Class B Shares			1,000.00			1,187.00			10.47		1.93%
	Class C Shares			1,000.00			1,186.50			10.52		1.94%
	Class I Shares			1,000.00			1,192.90			5.11		0.94%
International Equity Fund	Class I Shares			1,000.00			1,121.70			5.26		1.00%
Opportunity Fund	Class A Shares			1,000.00			1,300.70			8.84		1.55%
	Class B Shares			1,000.00			1,296.30			13.10		2.30%
	Class C Shares			1,000.00			1,296.60			13.10		2.30%
Opportunity Fund (I Shares)	Class I Shares			1,000.00			1,304.30			5.77		1.01%
Overseas Equity Fund	Class A Shares			1,000.00			1,121.10			8.94		1.70%
	Class B Shares			1,000.00			1,117.90			12.87		2.45%
	Class C Shares			1,000.00			1,118.50			12.87		2.45%
Value Fund	Class A Shares			1,000.00			1,165.00			6.44		1.20%
	Class B Shares			1,000.00			1,159.90			10.44		1.95%
	Class C Shares			1,000.00			1,159.60			10.44		1.95%
	Class I Shares			1,000.00			1,166.50			5.10		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).


48	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses—as of April 30, 2011 (Unaudited) (continued)


	Hypothetical Example for Comparison Purposes

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

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


		Beginning Account Value 11/1/10			Ending Account Value 4/30/11			Expenses Paid During Period* 11/1/10 - 4/30/11			Annualized Expense Ratio During Period 11/1/10 - 4/30/11

Growth Fund	Class A Shares		$	1,000.00		$	1,018.89		$	5.96		1.19%
	Class B Shares			1,000.00			1,015.22			9.64		1.93%
	Class C Shares			1,000.00			1,015.17			9.69		1.94%
	Class I Shares			1,000.00			1,020.13			4.71		0.94%
International Equity Fund	Class I Shares			1,000.00			1,019.84			5.01		1.00%
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			1,019.79			5.06		1.01%
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).


HSBC INVESTOR FAMILY OF FUNDS	49

HSBC INVESTOR FAMILY OF FUNDS

Additional Information—(Unaudited) (concluded)


	A Special Meeting of Shareholders

	A meeting of shareholders of the HSBC Investor Funds was held on June 15, 2011. At the meeting the shareholders voted and approved the following proposal:

	Proposal 1: To elect each of the following six nominees to serve as a Trustee on the Boards of Trustees of the Trusts until his or her successor is duly elected and qualify.


	No. of Shares	% of Outstanding Shares			% of Shares Voted

	Marcia L. Beck
Affirmative	8,013,741,245.100		43.325	%		86.413	%
Withhold	1,260,049,503.170		6.812	%		13.587	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%

	Sylvia Coutinho
Affirmative	8,013,782,283.636		43.325	%		86.413	%
Withhold	1,260,008,464.634		6.812	%		13.587	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%

	Susan S. Huang
Affirmative	8,013,758,594.267		43.325	%		86.413	%
Withhold	1,260,032,154.003		6.812	%		13.587	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%

	Alan S. Parsow
Affirmative	8,014,028,515.450		43.326	%		86.416	%
Withhold	1,259,762,232.820		6.811	%		13.584	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%

	Thomas F. Robards
Affirmative	8,009,688,698.670		43.303	%		86.369	%
Withhold	1,264,102,049.600		6.834	%		13.631	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%

	Michael Seely
Affirmative	8,014,132,476.900		43.327	%		86.417	%
Withhold	1,259,658,271.370		6.810	%		13.583	%
TOTAL	9,273,790,748.270		50.137	%		100.000	%


50	HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Additional Information—(Unaudited) (concluded)


	A Special Meeting of Shareholders

	A meeting of shareholders of the HSBC Advisor Funds Trust was held on June 15, 2011. At the meeting the shareholders voted and approved the following proposal:

	Proposal 1: To elect each of the following six nominees to serve as a Trustee on the Boards of Trustees of the Trusts until his or her successor is duly elected and qualify.


	No. of Shares	% of Outstanding Shares			% of Shares Voted

	Marcia L. Beck
Affirmative	7,601,032.186		73.262	%		99.969	%
Withhold	2,386.905		.023	%		.031	%
TOTAL	7,603,419.091		73.285	%		100.000	%

	Sylvia Coutinho
Affirmative	7,601,032.186		73.262	%		99.969	%
Withhold	2,386.905		.023	%		.031	%
TOTAL	7,603,419.091		73.285	%		100.000	%

	Susan S. Huang
Affirmative	7,601,032.186		73.262	%		99.969	%
Withhold	2,386.905		.023	%		.031	%
TOTAL	7,603,419.091		73.285	%		100.000	%

	Alan S. Parsow
Affirmative	7,594,783.385		73.202	%		99.886	%
Withhold	8,635.706		.083	%		.114	%
TOTAL	7,603,419.091		73.285	%		100.000	%

	Thomas F. Robards
Affirmative	7,594,783.385		73.202	%		99.886	%
Withhold	8,635.706		.083	%		.114	%
TOTAL	7,603,419.091		73.285	%		100.000	%

	Michael Seely
Affirmative	7,594,783.385		73.202	%		99.886	%
Withhold	8,635.706		.083	%		.114	%
TOTAL	7,603,419.091		73.285	%		100.000	%


HSBC INVESTOR FAMILY OF FUNDS	51

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited)


Common Stocks—98.2%


	Shares		Value($)

Aerospace & Defense – 3.0%
Goodrich Corp.		12,900		1,139,973
United Technologies Corp.		24,300		2,176,794

				3,316,767

Air Freight & Logistics – 1.1%
C.H. Robinson Worldwide, Inc.		15,400		1,234,772

Auto Components – 1.1%
BorgWarner, Inc. (a)		16,200		1,251,288

Automobiles – 1.0%
Ford Motor Co. (a)		73,700		1,140,139

Capital Markets – 4.9%
Franklin Resources, Inc.		12,500		1,614,000
Goldman Sachs Group, Inc.		11,000		1,661,110
TD Ameritrade Holding Corp.		49,100		1,057,614
The Charles Schwab Corp.		59,100		1,082,121

				5,414,845

Chemicals – 0.8%
Ecolab, Inc.		17,000		896,920

Communications Equipment – 3.9%
Juniper Networks, Inc. (a)		23,200		889,256
QUALCOMM, Inc.		60,600		3,444,504

				4,333,760

Computers & Peripherals – 8.4%
Apple, Inc. (a)		15,050		5,240,862
EMC Corp. (a)		103,300		2,927,522
NetApp, Inc. (a)		22,700		1,179,946

				9,348,330

Construction & Engineering – 1.7%
Fluor Corp.		26,900		1,881,386

Diversified Financial Services – 4.9%
CME Group, Inc.		3,500		1,035,195
IntercontinentalExchange, Inc. (a)		8,500		1,022,975
JPMorgan Chase & Co.		38,000		1,733,940
Visa, Inc., Class A		22,000		1,718,640

				5,510,750

Energy Equipment & Services – 5.5%
FMC Technologies, Inc. (a)		47,500		2,207,800
Halliburton Co.		22,700		1,145,896
Schlumberger Ltd.		31,100		2,791,225

				6,144,921

Food & Staples Retailing – 1.0%
Costco Wholesale Corp.		14,400		1,165,248

Food Products – 1.0%
Green Mountain Coffee Roasters, Inc. (a)		16,400		1,098,144

Health Care Equipment & Supplies – 2.3%
Edwards Lifesciences Corp. (a)		6,800		587,180
Intuitive Surgical, Inc. (a)		2,500		874,250
Varian Medical Systems, Inc. (a)		15,100		1,060,020

				2,521,450


Common Stocks, continued


	Shares		Value($)

Health Care Providers & Services – 3.4%
Express Scripts, Inc. (a)		53,100		3,012,894
UnitedHealth Group, Inc.		16,900		831,987

				3,844,881

Health Care Technology – 1.1%
Cerner Corp. (a)		10,000		1,201,800

Hotels, Restaurants & Leisure – 3.6%
Ctrip.com International Ltd. ADR (a)		22,900		1,115,688
Las Vegas Sands Corp. (a)		36,800		1,729,968
Yum! Brands, Inc.		22,100		1,185,444

				4,031,100

Internet & Catalog Retail – 4.8%
Amazon.com, Inc. (a)		14,000		2,751,000
Priceline.com, Inc. (a)		4,830		2,642,058

				5,393,058

Internet Software & Services – 4.6%
Baidu, Inc. ADR (a)		11,925		1,771,101
Google, Inc., Class A (a)		4,180		2,274,338
VeriSign, Inc.		29,700		1,097,712

				5,143,151

IT Services – 4.2%
Cognizant Technology Solutions Corp. (a)		56,700		4,700,430

Machinery – 6.4%
Danaher Corp.		55,200		3,049,248
Deere & Co.		21,500		2,096,250
Illinois Tool Works, Inc.		33,000		1,927,530

				7,073,028

Media – 2.5%
Scripps Networks Interactive, Inc., Class A		21,700		1,115,814
The Walt Disney Co.		38,400		1,655,040

				2,770,854

Metals & Mining – 2.3%
Cliffs Natural Resources, Inc.		14,510		1,359,877
Walter Energy, Inc.		8,900		1,230,158

				2,590,035

Oil, Gas & Consumable Fuels – 3.1%
Concho Resources, Inc. (a)		10,500		1,121,925
Occidental Petroleum Corp.		20,100		2,297,229

				3,419,154

Personal Products – 1.2%
The Estee Lauder Cos., Inc., Class A		14,000		1,358,000

Pharmaceuticals – 2.8%
Shire plc ADR		17,400		1,621,854
Mylan, Inc. (a)		44,000		1,096,480
Perrigo Co.		3,800		343,368

				3,061,702

Road & Rail – 3.0%
Union Pacific Corp.		32,100		3,321,387


52	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (continued)


Common Stocks, continued


	Shares		Value($)

Semiconductors & Semiconductor Equipment – 2.2%
Altera Corp.		28,300		1,378,210
Texas Instruments, Inc.		29,800		1,058,794

				2,437,004

Software – 8.9%
Autodesk, Inc. (a)		34,800		1,565,304
Citrix Systems, Inc. (a)		21,700		1,830,178
Intuit, Inc. (a)		22,100		1,227,876
Oracle Corp.		89,600		3,230,080
Salesforce.com, Inc. (a)		10,500		1,455,300
VMware, Inc., Class A (a)		6,900		658,467

				9,967,205

Specialty Retail – 2.0%
Dollar General Corp. (a)		31,800		1,036,362
O’Reilly Automotive, Inc. (a)		21,000		1,240,260

				2,276,622

Wireless Telecommunication Services – 1.5%
American Tower Corp., Class A (a)		31,600		1,652,996

TOTAL COMMON STOCKS (COST $77,472,590)				109,501,127

Investment Company—2.2%

Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (b)		2,419,179		2,419,179

TOTAL INVESTMENT COMPANY (COST $2,419,179)				2,419,179

TOTAL INVESTMENT SECURITIES (COST $79,891,769) – 100.4%				111,920,306



	Percentages indicated are based on net assets of $111,461,201.

ADR —	American Depositary Receipt
plc —	Public Limited Company

(a)	Represents non-income producing security.

(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2011.


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	53

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited)


Common Stocks—95.4%


	Shares		Value($)

Belgium – 1.4%
Anheuser-Busch InBev NV		9,900		631,194

Brazil – 2.9%
Banco Do Brasil SA		21,600		396,922
Cia de Saneamento Basico do Estado de Sao Paulo ADR		5,800		339,416
Companhia Energetica de Sao Paulo, Preferred B Shares		11,500		221,708
PDG Realty SA		58,900		346,801

				1,304,847

Canada – 2.9%
Bankers Petroleum Ltd. (a)		38,400		336,949
Canadian Oil Sands Ltd.		13,100		452,039
First Quantum Minerals Ltd.		3,700		527,404
Questerre Energy Corp. (a)		18,422		21,272

				1,337,664

Cayman Islands – 0.6%
Minth Group Ltd.		190,000		292,119

China – 0.6%

Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd., Class H (a)		109,400		290,193

Denmark – 0.9%
Carlsberg A/S, Class B		3,610		428,806

France – 8.2%
Alstom SA		6,407		425,998
AXA SA		22,846		512,599
Credit Agricole SA		54,300		903,901
PPR		2,777		496,612
Safran SA		16,534		641,555
Vinci SA		10,988		733,922

				3,714,587

Germany – 7.1%
Daimler AG, Registered		2,300		176,755
Deutsche Post AG (a)		29,724		586,803
Deutsche Telekom AG		15,906		264,896
Fresenius SE & Co. KGaA		5,893		619,480
GEA Group AG		9,062		328,541
Henkel AG & Co. KGaA		9,444		536,034
SAP AG		11,109		715,598

				3,228,107

Greece – 0.6%
Public Power Corp.		17,497		289,449

Hong Kong – 2.8%
Guangdong Investment Ltd.		542,000		280,561
Huabao International Holdings Ltd.		231,000		342,663
Hysan Development Co. Ltd.		41,000		191,379
The Wharf Holdings Ltd.		60,300		441,030

				1,255,633


Common Stocks, continued


	Shares		Value($)

Indonesia – 1.9%
PT Bank Negara Indonesia (Persero) Tbk		712,500		336,988
PT Bumi Resources Tbk		1,286,000		514,370

				851,358

Ireland (Republic of) – 1.2%
Accenture plc, Class A		9,900		565,587

Israel – 2.2%
Israel Chemicals Ltd.		26,937		475,265
Teva Pharmaceutical Industries Ltd. ADR		11,900		544,187

				1,019,452

Italy – 3.6%
Enel SpA		99,064		706,279
Intesa Sanpaolo SpA		163,164		541,770
Telecom Italia SpA		244,907		368,873

				1,616,922

Japan – 12.5%
Asahi Kasei Corp.		76,000		519,161
Bridgestone Corp.		26,900		587,090
Honda Motor Co. Ltd.		15,600		613,613
JX Holdings, Inc.		77,900		539,825
Mitsui & Co. Ltd.		31,700		559,733
Nippon Electric Glass Co. Ltd.		36,000		542,885
Nippon Telegraph & Telephone Corp.		7,900		364,803
NSK Ltd.		13,000		114,772
ORIX Corp.		3,530		344,295
Sony Corp.		11,310		315,174
Sumitomo Corp.		45,000		614,242
The Bank of Yokohama Ltd.		120,000		591,862

				5,707,455

Luxembourg – 0.8%
ArcelorMittal		9,410		346,175

Netherlands – 3.5%
ING Groep NV (a)		55,399		730,208
Koninklijke (Royal) Philips Electronics NV		18,141		537,873
Koninklijke Ahold NV		24,343		341,737

				1,609,818

Norway – 2.1%
DnB NOR ASA		24,069		391,534
Yara International ASA		9,346		547,710

				939,244

Russian Federation – 0.9%
Gazprom OAO ADR		25,400		428,498

Singapore – 3.1%
DBS Group Holdings Ltd.		46,000		563,112
Keppel Corp. Ltd.		57,200		556,248
Singapore Airlines Ltd.		27,000		310,664

				1,430,024


54	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (continued)


Common Stocks, continued


	Shares		Value($)

South Korea – 3.5%
Daegu Bank		19,390		323,951
Hyundai Mobis		2,449		820,600
KT Corp. ADR		11,500		233,450
Samsung Electronics Co. Ltd.		267		222,542

				1,600,543

Spain – 1.4%
Abertis Infraestructuras SA		27,300		646,698

Sweden – 1.8%
Telefonaktiebolaget LM Ericsson ADR		54,400		826,880

Switzerland – 4.1%
Nestle SA		7,784		483,350
Novartis AG		9,589		569,375
Swiss Reinsurance Co. Ltd., Registered		5,823		347,104
Syngenta AG, Registered		1,338		473,591

				1,873,420

Taiwan – 0.6%
Wistron Corp.		161,000		289,943

Thailand – 1.0%
Bangkok Bank Public Co. Ltd., Foreign Registered		77,200		439,960

Turkey – 1.0%
Turk Telekomunikasyon AS		83,452		434,686

United Kingdom – 22.2%
Anglo American plc		11,326		590,256
Aviva plc		43,995		328,289
Barclays plc		122,537		577,721
BG Group plc		29,244		748,963
British American Tobacco plc		9,346		407,542
Dialog Semiconductor plc (a)		10,336		217,291
GlaxoSmithKline plc ADR		14,800		646,168
Imperial Tobacco Group plc		15,757		554,470
National Grid plc		58,678		601,705
Pearson plc		29,400		565,149
Prudential plc		43,811		565,591
Reed Elsevier plc		40,469		358,211
Tesco plc		72,601		489,305
Tullow Oil plc		42,856		1,025,647
Vedanta Resources plc		14,508		563,340
Vodafone Group plc		278,041		796,831
WPP plc		34,887		455,337
Xstrata plc		25,206		640,495

				10,132,311

TOTAL COMMON STOCKS (COST $40,142,891)				43,531,573


Exchange Traded Fund—1.2%


	Shares		Value($)

United States – 1.2%
iShares MSCI Japan Index Fund		50,622		533,049

TOTAL EXCHANGE TRADED FUND (COST $520,559)				533,049

Investment Company – 1.5%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.03% (b)		712,670		712,670

TOTAL INVESTMENT COMPANY (COST $712,670)				712,670

TOTAL INVESTMENT SECURITIES (COST $41,376,120) – 98.1%				44,777,292




	Percentages indicated are based on net assets of $45,626,877.

ADR — American Depositary Receipt
plc — Public Limited Company

(a)	Represents non-income producing security.

(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2011.


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	55

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited) (Continued)

At April 30, 2011, the Portfolio’s open forward foreign currency contracts were as follows:


Short Contracts	Delivery Date		Contract Amount (Local Currency)		Contract Value ($)		Value ($)		Unrealized Appreciation/ (Depreciation) ($)

CURRENCY
Norwegian Krone		05/02/11		27,805		5,268		5,303		(35	)
Norwegian Krone		05/03/11		45,653		8,707		8,705		2

						13,975		14,008		(33	)


Long Contracts	Delivery Date		Contract Amount (Local Currency)		Contract Value ($)		Value ($)		Unrealized Appreciation/ (Depreciation) ($)

CURRENCY
Japanese Yen		05/06/11		1,108,844		13,602		13,673		71
Japanese Yen		05/06/11		2,358,853		28,936		29,087		151
Japanese Yen		05/06/11		2,415,199		29,627		29,781		154
Japanese Yen		05/06/11		621,205		7,620		7,660		40
Japanese Yen		05/09/11		1,272,431		15,646		15,690		44
Japanese Yen		05/09/11		3,643,443		44,799		44,927		128

						140,230		140,818		588

The Portfolio invested, as a percentage of net assets, in the following industries, as of April 30, 2011:


Industry	Percent of Net Assets

Commercial Banks	11.1	%
Metals & Mining	7.9	%
Oil, Gas & Consumable Fuels	7.8	%
Chemicals	6.3	%
Insurance	4.7	%
Pharmaceuticals	3.9	%
Electronic Equipment, Instruments & Components	3.8	%
Diversified Telecommunication Services	3.7	%
Industrial Conglomerates	2.8	%
Trading Companies & Distributors	2.6	%
Electric Utilities	2.4	%
Construction & Engineering	2.3	%
Beverages	2.3	%
Media	2.2	%
Energy Equipment & Services	2.2	%
Tobacco	2.1	%
Food & Staples Retailing	1.8	%
Communications Equipment	1.8	%
Auto Parts & Equipment	1.8	%
Wireless Telecommunication Services	1.7	%
Automobiles	1.7	%
Machinery	1.6	%
Software	1.6	%
Investment Company	1.5	%
Transportation Infrastructure	1.4	%
Health Care Equipment & Supplies	1.4	%
Auto Components	1.3	%
Air Freight & Logistics	1.3	%
IT Services	1.2	%
Exchange Traded Fund	1.2	%
Real Estate Management & Development	1.2	%
Multiline Retail	1.1	%
Food Products	1.1	%
Semiconductors & Semiconductor Equipment	1.0	%
Diversified Consumer Services	0.8	%
Diversified Financial Services	0.8	%
Water Utilities	0.7	%
Household Durables	0.7	%
Airlines	0.7	%
Computers & Peripherals	0.6	%

Total Investments	98.1	%


56	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited)


Common Stocks—98.8%


	Shares		Value($)

Aerospace & Defense – 1.8%
BE Aerospace, Inc. (a)		82,000		3,164,380

Auto Components – 2.4%
The Goodyear Tire & Rubber Co. (a)		234,500		4,256,175

Biotechnology – 2.0%
Alexion Pharmaceuticals, Inc. (a)		37,150		3,599,463

Capital Markets – 2.9%
MF Global Holdings Ltd. (a)		201,200		1,692,092
Waddell & Reed Financial, Inc., Class A		84,000		3,444,840

				5,136,932

Chemicals – 4.3%
Celanese Corp., Series A		72,700		3,629,184
Westlake Chemical Corp.		59,225		3,888,121

				7,517,305

Commercial Banks – 0.6%
First Horizon National Corp.		1		11
First Republic Bank (a)		31,480		986,898

				986,909

Commercial Services & Supplies – 5.0%
FleetCor Technologies, Inc. (a)		48,850		1,832,364
Hertz Global Holdings, Inc. (a)		268,800		4,626,048
Waste Connections, Inc.		76,025		2,339,289

				8,797,701

Communications Equipment – 2.1%
Brocade Communications Systems, Inc. (a)		324,100		2,025,625
Polycom, Inc. (a)		26,750		1,600,452

				3,626,077

Containers & Packaging – 3.0%
Crown Holdings, Inc. (a)		75,080		2,807,992
Packaging Corp. of America		89,840		2,563,135

				5,371,127

Diversified Consumer Services – 1.7%
New Oriental Education & Technology Group, Inc. ADR (a)		24,580		3,063,651

Diversified Financial Services – 1.2%
MSCI, Inc., Class A (a)		58,400		2,071,448

Electrical Equipment – 3.5%
AMETEK, Inc.		76,400		3,517,456
Hubbell, Inc., Class B		38,300		2,680,617

				6,198,073

Electronic Components & Semiconductors – 1.9%
Harman International Industries, Inc.		70,400		3,416,512

Food Products – 3.7%
Green Mountain Coffee Roasters, Inc. (a)		39,680		2,656,973
Ralcorp Holdings, Inc. (a)		49,560		3,855,768

				6,512,741


Common Stocks, continued


	Shares		Value($)

Health Care Equipment & Supplies – 3.7%
Hill-Rom Holdings, Inc.		97,320		4,380,373
IDEXX Laboratories, Inc. (a)		26,290		2,140,795

				6,521,168

Health Care Providers & Services – 3.3%
Community Health Systems, Inc. (a)		80,350		2,469,156
Coventry Health Care, Inc. (a)		85,900		2,771,993
Skilled Healthcare Group, Inc., Class A (a)		48,710		590,365

				5,831,514

Hotels, Restaurants & Leisure – 1.6%
Ctrip.com International Ltd. ADR (a)		59,700		2,908,584

Internet Software & Services – 1.8%
VeriSign, Inc.		83,600		3,089,856

IT Services – 3.3%
Alliance Data Systems Corp. (a)		36,300		3,448,500
Syntel, Inc.		44,350		2,425,058

				5,873,558

Life Sciences Tools & Services – 4.9%
Illumina, Inc. (a)		30,250		2,147,145
Life Technologies Corp. (a)		48,100		2,655,120
Mettler-Toledo International, Inc. (a)		20,580		3,856,692

				8,658,957

Machinery – 5.3%
Crane Co.		74,554		3,720,990
IDEX Corp.		68,700		3,223,404
Snap-on, Inc.		40,350		2,492,420

				9,436,814

Media – 2.0%
DreamWorks Animation SKG, Inc. (a)		71,650		1,898,009
Lamar Advertising Co., Class A (a)		50,700		1,648,764

				3,546,773

Metals & Mining – 1.9%
Compass Minerals International, Inc.		34,430		3,360,712

Oil, Gas & Consumable Fuels – 10.2%
Consol Energy, Inc.		81,080		4,385,617
Denbury Resources, Inc. (a)		142,100		3,207,197
Ensco International plc ADR		62,250		3,711,345
Massey Energy Co.		49,850		3,401,764
Tesoro Corp. (a)		120,750		3,274,740

				17,980,663

Pharmaceuticals – 1.4%
Elan Corp. plc ADR (a)		252,400		2,044,440
Santarus, Inc. (a)		108,140		336,315

				2,380,755

Real Estate Investment Trusts (REITs) – 1.5%
Hospitality Properties Trust		109,200		2,637,180

Road & Rail – 2.1%
Landstar System, Inc.		76,550		3,628,470


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	57

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited)


Common Stocks, continued


	Shares		Value($)

Semiconductors & Semiconductor Equipment – 4.7%
LSI Corp. (a)		403,200		2,955,456
ON Semiconductor Corp. (a)		341,100		3,584,961
Skyworks Solutions, Inc. (a)		56,680		1,783,153

				8,323,570

Software – 5.7%
BMC Software, Inc. (a)		45,250		2,272,908
Check Point Software Technologies Ltd. (a)		72,450		3,979,678
Nuance Communications, Inc. (a)		186,950		3,869,865

				10,122,451

Specialty Retail – 1.4%
O’Reilly Automotive, Inc. (a)		40,950		2,418,507

Textiles, Apparel & Luxury Goods – 3.6%
Foot Locker, Inc.		167,050		3,594,916
Fossil, Inc. (a)		29,450		2,820,721

				6,415,637

Trading Companies & Distributors – 1.6%
WESCO International, Inc. (a)		44,250		2,741,288

Wireless Telecommunication Services – 2.7%
Finisar Corp. (a)		66,410		1,865,457
NII Holdings, Inc. (a)		68,400		2,844,072

				4,709,529

TOTAL COMMON STOCKS (COST $127,759,225)				174,304,480


Investment Company—1.6%


	Shares		Value($)

Northern Institutional Government Select
Portfolio, Institutional Shares, 0.01% (b)		2,781,151		2,781,151

TOTAL INVESTMENT COMPANY (COST $2,781,151)				2,781,151

TOTAL INVESTMENT SECURITIES (COST $130,540,376) – 100.4%				177,085,631



	Percentages indicated are based on net assets of $176,454,639.

ADR — American Depositary Receipt
plc — Public Limited Company

(a)	Represents non-income producing security.

(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2011.


58	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR VALUE PORTFOLIO

Schedule of Portfolio Investments—as of April 30, 2011 (Unaudited)


Common Stocks—95.5%


	Shares		Value($)

Aerospace & Defense – 2.7%
Lockheed Martin Corp.		12,400		982,700
Raytheon Co.		13,400		650,570

				1,633,270

Auto Components – 1.8%
General Motors Co. (a)		33,800		1,084,642

Biotechnology – 3.6%
Amgen, Inc. (a)		38,400		2,183,040

Capital Markets – 1.4%
Goldman Sachs Group, Inc.		5,700		860,757

Commercial Banks – 2.0%
Wells Fargo & Co.		42,700		1,242,997

Commercial Services & Supplies – 1.5%
Pitney Bowes, Inc.		36,500		896,440

Communications Equipment – 5.1%
Motorola Mobility Holdings, Inc. (a)		55,025		1,433,951
Motorola Solutions, Inc. (a)		36,328		1,666,729

				3,100,680

Diversified Financial Services – 4.4%
Citigroup, Inc. (a)		367,200		1,685,448
JPMorgan Chase & Co.		22,150		1,010,705

				2,696,153

Energy Equipment & Services – 1.1%
Halliburton Co.		13,500		681,480

Food & Staples Retailing – 2.8%
CVS Caremark Corp.		31,400		1,137,936
Kroger Co. (The)		21,900		532,389

				1,670,325

Independent Power Producers & Energy Traders – 1.4%
NRG Energy, Inc. (a)		33,800		817,960

Insurance – 17.2%
Aon Corp.		38,500		2,008,545
Genworth Financial, Inc., Class A (a)		117,900		1,437,201
Lincoln National Corp.		25,900		808,857
Loews Corp.		34,440		1,524,314
MetLife, Inc.		42,000		1,965,180
The Hartford Financial Services Group, Inc.		43,900		1,271,783
Unum Group		56,100		1,485,528

				10,501,408

Machinery – 2.0%
Ingersoll-Rand plc		23,900		1,206,950

Media – 6.9%
Time Warner, Inc.		34,950		1,323,207
Viacom, Inc., Class B		56,500		2,890,540

				4,213,747


Common Stocks, continued


	Shares		Value($)

Metals & Mining – 7.1%
AngloGold Ashanti Ltd. ADR		51,527		2,626,846
Barrick Gold Corp.		33,600		1,713,936

				4,340,782

Oil, Gas & Consumable Fuels – 14.6%
Apache Corp.		19,400		2,587,378
Canadian Natural Resources Ltd.		32,000		1,502,720
Hess Corp.		12,100		1,040,116
Noble Energy, Inc.		13,310		1,281,354
Occidental Petroleum Corp.		12,000		1,371,480
Talisman Energy, Inc.		46,600		1,123,060

				8,906,108

Pharmaceuticals – 9.9%
Merck & Co., Inc.		22,800		819,660
Pfizer, Inc.		138,200		2,896,672
Sanofi-Aventis ADR		58,200		2,300,064

				6,016,396

Road & Rail – 1.7%
Union Pacific Corp.		10,000		1,034,700

Software – 6.7%
CA, Inc.		123,500		3,036,865
Microsoft Corp.		40,900		1,064,218

				4,101,083

Tobacco – 1.6%
Philip Morris International, Inc.		14,200		986,048

TOTAL COMMON STOCK (COST $48,323,452)				58,174,966


Investment Company—3.2%

Northern Institutional Government Select Portfolio, Institutional Shares, 0.01% (b)		1,944,264		1,944,264

TOTAL INVESTMENT COMPANY (COST $1,944,264)				1,944,264

TOTAL INVESTMENT SECURITIES (COST $50,267,716) – 98.7%				60,119,230

Percentages indicated are based on net assets of $60,941,551.

ADR — American Depositary Receipt

plc — Public Limited Company


(a)	Represents non-income producing security.

(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2011.


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	59

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of April 30, 2011 (Unaudited)


	Growth Portfolio		International Equity Portfolio		Opportunity Portfolio		Value Portfolio

Assets:
Investments in non-affiliates, at value	$	111,920,306	$	44,777,292	$	177,085,631	$	60,119,230
Foreign currency, at value		—		72,605		—		—
Unrealized appreciation on forward foreign currency contracts		—		590		—		—
Dividends receivable		36,348		255,608		69,604		24,639
Receivable for investments sold		784,435		823,408		494,059		836,077
Prepaid expenses and other assets		96		15,164		135		52

Total Assets		112,741,185		45,944,667		177,649,429		60,979,998


Liabilities:
Unrealized depreciation on forward foreign currency contracts		—		35		—		—
Payable for investments purchased		1,205,819		253,363		1,053,296		—
Accrued expenses and other liabilities:
Investment Management		54,773		32,226		112,195		25,524
Administration		2,271		922		3,576		1,240
Compliance Services		50		20		77		24
Accounting		—		919		—		231
Custodian		2,105		28,323		4,782		1,116
Trustee		343		198		473		178
Other		14,623		1,784		20,391		10,134

Total Liabilities		1,279,984		317,790		1,194,790		38,447


Applicable to investors’ beneficial interest	$	111,461,201	$	45,626,877	$	176,454,639	$	60,941,551

Total Investments, at cost	$	79,871,769	$	41,376,120	$	130,540,376	$	50,267,716

Foreign currency, at cost	$	—	$	71,897	$	—	$	—


60	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the six months ended April 30, 2011 (Unaudited)


	Growth Portfolio			International Equity Portfolio			Opportunity Portfolio		Value Portfolio

Investment Income:
Dividends	$	338,144		$	583,823		$	736,798	$	379,390
Foreign tax withholding		(313	)		(59,469	)		—		(3,411	)

Total Investment Income		337,831			524,354			736,798		375,979


Expenses:
Investment Management		301,028			188,737			630,984		148,274
Administration fees		13,327			5,380			19,960		7,149
Accounting		22,584			39,810			22,580		22,161
Compliance Services		329			133			482		172
Custodian		5,110			28,484			9,732		2,824
Printing		226			99			319		116
Professional		4,717			3,350			7,051		2,059
Trustee		1,352			685			1,956		719
Other		1,493			2,387			2,064		775

Total Expenses		350,166			269,065			695,128		184,249


Net Investment Income (Loss)		(12,335	)		255,289			41,670		191,730


Net Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investment securities and foreign currency transactions		6,244,997			3,089,020			13,813,276		177,193
Net realized gains (losses) from forward foreign currency contracts		—			(44,425	)		—		—
Payments by affiliates for the violation of certain investment policies and limitations		—			5,235			—		—
Change in unrealized appreciation/depreciation on investments		12,596,447			1,771,202			28,345,662		8,407,254


Net realized/unrealized gains (losses) from investments		18,841,444			4,821,032			42,158,938		8,584,447

Change In Net Assets Resulting From Operations	$	18,829,109		$	5,076,321		$	42,200,608	$	8,776,177


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	61

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets


	Growth Portfolio						International Equity Portfolio

	For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

Investment Activities:
Operations:
Net investment income (loss)	$	(12,335	)	$	(34,003	)	$	255,289		$	3,219,961
Net realized gains (losses) from investments		6,244,997			4,569,747			3,044,595			(24,730,645	)
Payments by affiliates for the violation of certain investment policies and limitations		—			—			5,235			—
Change in unrealized appreciation/depreciation on investments		12,596,447			12,751,375			1,771,202			13,409,621

Change in net assets resulting from operations		18,829,109			17,287,119			5,076,321			(8,101,063	)

Proceeds from contributions		8,636,280			10,138,077			4,863,572			15,234,642
Value of withdrawals		(14,754,989	)		(16,837,279	)		(6,130,610	)		(182,464,190	)

Change in net assets resulting from transactions in investors’ beneficial interest		(6,118,709	)		(6,699,202	)		(1,267,038	)		(167,229,548	)

Change in net assets		12,710,400			10,587,917			3,809,283			(175,330,611	)

Net Assets:
Beginning of period		98,750,801			88,162,884			41,817,594			217,148,205

End of period	$	111,461,201		$	98,750,801		$	45,626,877		$	41,817,594


62	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, 2011 (Unaudited)			For the year ended October 31, 2010			For the six months ended April 30, 2011 (Unaudited)			For the year ended October 31, 2010

Investment Activities:
Operations:
Net investment income (loss)	$	41,670		$	(461,786	)	$	191,730		$	429,922
Net realized gains (losses) from investments		13,813,276			17,836,311			177,193			1,033,776
Change in unrealized appreciation/depreciation on investments		28,345,662			17,016,734			8,407,254			5,043,263

Change in net assets resulting from operations		42,200,608			34,391,259			8,776,177			6,506,961

Proceeds from contributions		9,182,478			10,306,391			7,152,248			6,794,273
Value of withdrawals		(14,329,999	)		(35,044,419	)		(6,729,526	)		(11,244,738	)

Change in net assets resulting from transactions in investors’ beneficial interest		(5,147,521	)		(24,738,028	)		422,722			(4,450,465	)

Change in net assets		37,053,087			9,653,231			9,198,899			2,056,496

Net Assets:
Beginning of period		139,401,552			129,748,321			51,742,652			49,686,156

End of period	$	176,454,639		$	139,401,552		$	60,941,551		$	51,742,652


See notes to financial statements.	HSBC INVESTOR PORTFOLIOS	63

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 (a)

GROWTH PORTFOLIO
Year Ended October 31, 2006	7.53	%		$	59,828	0.69	%	0.38	%	0.69	%	75.06	%
Year Ended October 31, 2007	31.11	%			89,686	0.62	%	0.45	%	0.62	%	57.04	%
Year Ended October 31, 2008	(37.75	)%(d)			81,942	0.62	%	0.19	%	0.62	%	157.87	%
Year Ended October 31, 2009	19.31	%			88,163	0.69	%	0.17	%	0.69	%	65.67	%
Year Ended October 31, 2010	20.34	%			98,751	0.68	%	(0.04	)%	0.68	%	89.14	%
Six Months Ended April 30, 2011 (Unaudited)	19.46	%			111,461	0.66	%	0.34	%	0.66	%	27.13	%

INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2006	32.79	%			333,755	0.86	%	2.03	%	0.86	%	33.39	%
Year Ended October 31, 2007	25.17	%			455,062	0.79	%	2.16	%	0.79	%	26.08	%
Year Ended October 31, 2008	(51.79	)%			199,309	0.76	%	2.65	%	0.76	%	28.98	%
Year Ended October 31, 2009	24.16	%			217,148	0.88	%	2.23	%	0.88	%	58.31	%
Year Ended October 31, 2010	6.15	%			41,818	0.87	%	2.07	%	0.87	%	63.35	%
Six Months Ended April 30, 2011 (Unaudited)	12.34	%(e)			45,627	1.27	%	1.20	%	1.27	%	129.61	%(f)

OPPORTUNITY PORTFOLIO
Year Ended October 31, 2006	19.54	%			241,495	0.91	%	(0.40	)%	0.91	%	60.83	%
Year Ended October 31, 2007	30.54	%			224,268	0.91	%	(0.55	)%	0.91	%	69.41	%
Year Ended October 31, 2008	(35.30	)%			127,970	0.87	%	(0.46	)%	0.87	%	80.42	%
Year Ended October 31, 2009	15.41	%			129,748	0.90	%	(0.37	)%	0.90	%	64.91	%
Year Ended October 31, 2010	28.74	%			139,402	0.89	%	(0.35	)%	0.89	%	67.62	%
Six Months Ended April 30, 2011 (Unaudited)	30.54	%			176,455	0.88	%	0.05	%	0.88	%	29.52	%

VALUE PORTFOLIO
Year Ended October 31, 2006	22.21	%			67,432	0.71	%	1.23	%	0.71	%	20.63	%
Year Ended October 31, 2007	10.28	%			82,658	0.66	%	1.29	%	0.66	%	18.67	%
Year Ended October 31, 2008	(39.91	)%			49,663	0.64	%	1.54	%	0.64	%	24.61	%
Year Ended October 31, 2009	20.05	%			49,686	0.68	%	1.41	%	0.68	%	19.77	%
Year Ended October 31, 2010	13.56	%			51,743	0.67	%	0.87	%	0.67	%	26.36	%
Six Months Ended April 30, 2011 (Unaudited)	16.73	%			60,942	0.65	%	0.68	%	0.65	%	10.48	%


(a)	Not annualized for period less than one year.

(b)	Annualized for periods less than one year.

(c)	Excluding fee reductions. If such fee reductions had not occurred, the ratio would have been as indicated.

(d)	During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Growth Portfolio related to violations of certain investment policies and limitations. The corresponding impact to total return was 0.08%.

(e)	During the period ended April 30, 2011, amounts were reimbursed to the HSBC Investor International Equity Portfolio in connection with violations of certain investment policies and limitations. The corresponding impact to the total return was 0.01%.

(f)	Effective at the close of business on January 12, 2011, the HSBC Investor International Equity Portfolio changed its subadviser from AllianceBernstein L.P. to Lord, Abbett & Co. LLC. As a result, the portfolio turnover rate was higher than historic rates.


64	HSBC INVESTOR PORTFOLIOS	See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited)


1.	Organization:

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


Portfolio		Short Name

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


	The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios.

	The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately.

	Under the Portfolio Trust’s organizational documents, the Portfolio Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolio Trust may enter into contracts with its service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolio Trust expects that risk of loss to be remote.

2.	Significant Accounting Policies:

	The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were available to be issued, for purposes of recognition or disclosure in these financial statements and there are no subsequent events to report.

	Securities Valuation:

	The Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described in Note 3 below.

	Investment Transactions and Related Income:

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

	Foreign Currency Translation:

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


HSBC INVESTOR PORTFOLIOS	65

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	Expense Allocations:

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

	Federal Income Taxes:

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

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

	Derivative Instruments:

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

	Foreign Currency Exchange Contracts:

	Each Portfolio may enter into foreign currency exchange contracts. The Portfolios enter into foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of securities denominated in a particular currency. In addition to the foreign currency risk related to the use of these contracts, the Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. For the period ended April 30, 2011, the International Equity Portfolio entered into foreign currency contracts in connection with planned purchases and sales of securities. The contract amount of forward foreign currency contracts outstanding was $0.26 million as of April 30, 2011. The monthly average contract amount for these contracts was $0.04 million.

	Futures Contracts:

	Each Portfolio may invest in futures contracts. The Portfolios use futures contracts for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Portfolios and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. For the period ended April 30, 2011, the Portfolios did not hold any futures contracts.


66	HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	Summary of Derivative Instruments:

	The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of April 30, 2011:


	Asset Derivatives		Liability Derivatives

Primary Risk Exposure	Statements of Assets and Liabilities Location	Total Fair Value*	Statements of Assets and Liabilities Location	Total Fair Value*


Foreign Currency	Unrealized	$590	Unrealized	$35
Contracts	appreciation on		depreciation on
	forward foreign		forward foreign
	currency contracts		currency 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, 2011:


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	Net realized gains (losses)	($44,425)	$555
Contracts	on forward foreign currency
	contracts/Change in
	unrealized appreciation/
	depreciation on investments


3.	Investment Valuation Summary:

	The valuation techniques employed by the Portfolios, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Portfolios’ investments are summarized in the three broad levels listed below:

		•	Level 1: quoted prices in active markets for identical assets

		•	Level 2: other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)

		•	Level 3: significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments)

	The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

	Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market and are typically categorized as Level 1 in the fair value hierarchy.

	Exchange traded, foreign equity securities are valued in the appropriate currency on the last quoted sale price and are typically categorized as Level 1 in the fair value hierarchy. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices in the over-the-counter market and are typically categorized as Level 2 in the fair value hierarchy.


HSBC INVESTOR PORTFOLIOS	67

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	Shares of exchange traded funds and closed-end registered investment companies are valued in the same manner as other equity securities and are typically categorized as Level 1 in the fair value hierarchy. Mutual funds are valued at their net asset values, as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy.

	Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded and are typically categorized as Level 1 in the fair value hierarchy.

	Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange and are typically categorized as Level 2 in the fair value hierarchy.

	Repurchase agreements are valued at original cost and are typically categorized as Level 2 in the fair value hierarchy.

	Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event, are valued pursuant to procedures adopted by the Portfolio Trust’s Board of Trustees (“Procedures”). Depending on the source and relative significance of valuation inputs, these instruments may be classified as Level 2 or Level 3 in the fair value hierarchy. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the Procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natural disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges and are typically categorized as Level 2 in the fair value hierarchy. The valuation of these securities may represent a transfer between Levels 1 and 2. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the International Equity Portfolio to a significant extent.

	For the period ended April 30, 2011, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

	The following is a summary of the valuation inputs used as of April 30, 2011 in valuing the Portfolios’ investments based upon three levels defined above:


	LEVEL 1		LEVEL 2		LEVEL 3		Total

Growth Portfolio
Investment Securities:
Common Stocks (a)	$	109,501,127	$	—	$	—	$	109,501,127
Investment Company		2,419,179		—		—		2,419,179

Total Investment Securities	$	111,920,306	$	—	$	—	$	111,920,306


International Equity Portfolio
Investment Securities:
Common Stocks (b)	$	43,531,573	$	—	$	—	$	43,531,573
Exchange Traded Funds		533,049		—		—		533,049
Investment Company		712,670		—		—		712,670

Total Investment Securities	$	44,777,292	$	—	$	—	$	44,777,292


Other Financial Instruments (c):
Forward Foreign Currency Contracts		—		555		—		555

Total Investments	$	44,777,292	$	555	$	—	$	44,777,847


68	HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	LEVEL 1		LEVEL 2		LEVEL 3		Total

Opportunity Portfolio
Investment Securities:
Common Stocks (a)	$	174,304,480	$	—	$	—	$	174,304,480
Investment Company		2,781,151		—		—		2,781,151

Total Investment Securities	$	177,085,631	$	—	$	—	$	177,085,631


Value Portfolio
Investment Securities:
Common Stocks (a)	$	58,174,966	$	—	$	—	$	58,174,966
Investment Company		1,944,264		—		—		1,944,264

Total Investment Securities	$	60,119,230	$	—	$	—	$	60,119,230



(a)	For detailed industry descriptions, see the accompanying Schedules of Portfolio Investments.

(b)	For detailed country descriptions, see the accompanying Schedules of Portfolio Investments.

(c)	Other financial instruments would include any derivative instruments, such as forward foreign currency contracts. These investments are generally recorded in the financial statements at the unrealized gain or loss on the investment.

	The Trust recognizes significant transfers between fair value hierarchy levels at the reporting period end. The only significant transfers between Levels 1, 2 or 3 as of April 30, 2011 are related to the use of the systematic valuation model to value foreign securities in the International Equity Portfolio.

	In May 2011, the Financial Accounting Standards Board issued an Accounting Standards Update No. 2011-04 (“ASU 2011-04”), “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements has not been determined.

4.	Related Party Transactions and Other Agreements:

	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. Winslow Capital Management, Inc. (“Winslow”), Lord, Abbett & Co. LLC (“Lord, Abbett”), Westfield Capital Management Company, L.P. (“Westfield”) and NWQ Investment Management Company, LLC (“NWQ”) serve as subadvisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios. Effective at the close of business on January 12, 2011, Lord, Abbett replaced AllianceBernstein L.P. (“AllianceBernstein”) as subadviser to the International Equity Portfolio.

	For their services, the Investment Adviser and Winslow receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


	Based on Average Daily Net Assets of all Sub-Adviser serviced funds and separate accounts affiliated with HSBC:		Fee Rate*

	Up to $250 million		0.575%
	In excess of $250 million but not exceeding $500 million		0.525%
	In excess of $500 million but not exceeding $750 million		0.475%
	In excess of $750 million but not exceeding $1 billion		0.425%
	In excess of $1 billion		0.375%



*	The Growth Portfolio may pay the Investment Adviser and Winslow an aggregate maximum fee of up to 0.68%. Currently, the Investment Adviser’s contractual fee is 0.175% and Winslow’s maximum contractual fee is 0.40%. Accordingly, the current aggregate maximum fee rate is 0.575%.


HSBC INVESTOR PORTFOLIOS	69

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	For their services, the Investment Adviser and Lord, Abbett (and AllianceBernstein, prior to January 12, 2011) receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:


	Based on Average Daily Net Assets of:			Fee Rate

	Up to $10 million			1.015%
	In excess of $10 million but not exceeding $25 million			0.925%
	In excess of $25 million but not exceeding $50 million			0.790%
	In excess of $50 million but not exceeding $100 million			0.700%
	In excess of $100 million			0.610%


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

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


	Based on Average Daily Net Assets of:			Fee Rate

	Up to $500 million			0.525%
	In excess of $500 million but not exceeding $1 billion			0.475%
	In excess of $1 billion			0.425%


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

	Administration:

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


	Based on Average Daily Net Assets of			Fee Rate

	Up to $10 billion			0.0550%
	In excess of $10 billion but not exceeding $20 billion			0.0350%
	In excess of $20 billion but not exceeding $50 billion			0.0275%
	In excess of $50 billion			0.0250%


	The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and HSBC Investor Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the HSBC Investor Family of Funds. For assets invested in the Portfolios by the HSBC Investor Funds, the Portfolios pay half of the administration fee and the other funds pay half of the administration fee, for a combination of the total fee rate set forth above. Certain administrative fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios.

	During the period ended April 30, 2011, Lord, Abbett reimbursed $5,235 to the International Equity Portfolio related to violations of certain investment policies and limitations. The impact to the total return is disclosed in the Financial Highlights.

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

	Under a Compliance Services Agreement between the Portfolio Trust and the other HSBC Investor Funds (the “Trusts”) and Citi (the “CCO Agreement”), Citi makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi $137,025 for the period ended April 30, 2011, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Services.” Citi pays the salary and other compensation earned by individuals as employees of Citi.


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Notes to Financial Statements—as of April 30, 2011 (Unaudited) (continued)


	Fund Accounting:

	Citi provides fund accounting services for the Portfolio Trust. For its services to the Portfolios, Citi receives an annual fee per portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly.

	Independent Trustees:

	Each non-interested Trustee is compensated with a $63,000 annual Board retainer for services as a Trustee of the HSBC Investor Family of Funds (or the “Trusts”), as well as a $3,000 annual retainer for each Committee of the Board of the Trusts. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee or Board Chairperson. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership. Any emeritus Trustees will be compensated for their services in accordance with a predetermined portion of the non-interested Trustee compensation schedule approved by the Board of Trustees.

5.	Investment Transactions:

	Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2011 were as follows:


Portfolio Name	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)

Growth Portfolio	$	28,253,407	$	34,245,625
International Equity Portfolio		53,773,544		54,990,084
Opportunity Portfolio		45,561,541		48,726,052
Value Portfolio		6,543,440		5,670,279


	For the period ended April 30, 2011, there were no long-term U.S. Government securities held by the Portfolio Trust.

6.	Federal Income Tax Information:

	At April 30, 2011, the cost basis of securities for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:


Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation/ (Depreciation)*

Growth Portfolio	$	80,411,230	$	32,360,739	$	(851,663	)	$	31,509,076
International Equity Portfolio		41,578,264		4,167,364		(968,336	)		3,199,028
Opportunity Portfolio		133,174,429		51,906,147		(7,994,945	)		43,911,202
Value Portfolio		50,434,347		12,918,165		(3,233,282	)		9,684,883



*	The difference between book-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales.


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HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited)


Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), generally requires that a majority of the trustees of a mutual fund who are not parties to an investment advisory agreement for the fund or “interested persons” of the fund, as defined in the 1940 Act (the “Independent Trustees”) review and approve the investment advisory agreement at an in person meeting for an initial period of up to two years and thereafter on an annual basis. A summary of the material factors considered by the Independent Trustees and the Boards of Trustees (the “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (each, a “Trust”) in connection with approving investment advisory and sub-advisory agreements for the series of the Trusts (each, a “Fund”) during the semi-annual period ended April 30, 2011 and the conclusions the Independent Trustees and Board made as a result of those considerations are set forth below.

I. Annual Continuation of Advisory and Sub-Advisory Agreements

The Board met in person on December 7, 2010 and the Contracts and Expense Committee thereof, which consists of the Independent Trustees of the Trusts (the “Contracts Committee”), met on November 22 and December 6, 2010 to consider, among other things:

	•	the approval of the continuation of the: (i) Investment Advisory Contracts and related Supplements (“Advisory Contracts”) between the Trusts and HSBC Global Asset Management (USA) Inc. (the “Adviser”) and (ii) Sub-Advisory Agreements (“Sub-Advisory Contracts”) between the Adviser and each investment sub-adviser (“Sub-Adviser”) to one or more Funds; and

	•	the approval of the continuation of certain other ancillary agreements to which the Adviser is a party that obligate the Adviser to provide the Funds with administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (each, an “Ancillary Agreement”).

Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Advisory Contracts, Sub-Advisory Contracts and Ancillary Agreements (collectively, the “Agreements”). This information included, among other things, information about: (i) the services that the Adviser and Sub-Advisers provide; (ii) the personnel who provide such services; (iii) investment performance; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc.; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Contracts Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

On November 22, 2010, the Contracts Committee convened and its members reviewed the information provided in advance of the meeting and discussed, among other things: (i) the Ancillary Agreements; (ii) the Trusts’ arrangements with the Sub-Advisers and the Funds advised by the Sub-Advisers; and (iii) the Adviser’s investment advisory arrangements with respect to the World Selection Funds. At the conclusion of the meeting, the Committee requested certain additional information from the Adviser with respect to the services provided or proposed to be provided under the Ancillary Agreements, among other matters. The Contracts Committee also convened on December 6, 2010 to discuss, among other things: (i) the Adviser’s advisory services with respect to the Funds that are money market funds (“Money Market Funds”); (ii) the Adviser’s profitability; and (iii) the Adviser’s response to the follow-up questions posed by the Contracts Committee following the November 22, 2010 Contracts Committee meeting. Following the December 6 Contracts Committee meeting, the members of the Contracts Committee determined to recommend to the Board, including the Independent Trustees, that the Agreements be continued for an additional one-year period.

At the in-person meeting held on December 7, 2010, the Board, including the Independent Trustees, reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the previous deliberations and recommendation of the Contracts Committee. As a result of this process, the Board and Independent Trustees determined to approve the continuation of the Agreements with respect to each Fund.

The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Independent Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to


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Investment Adviser Contract Approval (Unaudited) (continued)


	the Funds, as well as the quality and experience of the Adviser’s personnel. In this regard, the Independent Trustees considered the capabilities and performance of the Adviser’s Multimanager unit with respect to the World Selection Funds and the equity Funds, as well as the capabilities and performance of the Adviser’s portfolio management and credit review teams with respect to the Money Market Funds. The Independent Trustees also considered the nature, quality and extent of the administrative support services that the Adviser provides to the Funds, including the Adviser’s oversight and management of the Funds’ other service providers.

	The Independent Trustees also took note of: (i) the long-term relationship between the Adviser and the Funds; (ii) the Adviser’s reputation and financial condition; and (iii) the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. With respect to the Money Market Funds, the Independent Trustees considered the financial support the Adviser and its affiliates have afforded the Money Market Funds, in terms of both the actions taken with respect to structured investment vehicle investments in 2008 and the fee waivers and reimbursements made to maintain a non-negative yield for the Money Market Funds more recently. In addition, the Independent Trustees considered the Adviser’s performance in fulfilling its responsibilities for overseeing its own and the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives.

	The Independent Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide to their respective Funds. In this regard, the Independent Trustees considered the investment performance and the portfolio risk characteristics achieved by the Sub-Advisers and the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, among other factors. In the context of the HSBC Investor International Equity Portfolio (“International Equity Portfolio” or “Portfolio”), the Independent Trustees considered that, although they were not satisfied with the performance of the Portfolio, the Adviser had taken steps to address the Portfolio’s performance, including proposing the approval of Lord, Abbett & Co. LLC (“Lord Abbett”) to replace AllianceBernstein L.P. (“AllianceBernstein”) as investment sub-adviser to the Portfolio at the Board meeting held on December 7, and that AllianceBernstein’s services should be evaluated on the basis that AllianceBernstein likely would be replaced by Lord Abbett early in 2011.

	Based on these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers, and that the services provided supported continuance of the Agreements.

	Investment Performance of the Funds, Adviser and Sub-Advisers. The Independent Trustees considered the investment performance of each Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. In the case of the International Equity Portfolio, as noted above, the Independent Trustees considered that the Adviser had taken steps to address performance that the Independent Trustees did not deem satisfactory, including proposing that Lord Abbett become the investment sub-adviser of the Fund in place of AllianceBernstein. In the context of the Money Market Funds, the Independent Trustees considered the yield support that the Adviser had provided in order for the Money Market Funds to retain non-negative performance. The Independent Trustees determined that the Funds’ investment performance and the Adviser’s actions to improve investment performance, where applicable, supported continuance of the Agreements.

	Costs of Services and Profits Realized by the Adviser and Sub-Advisers. The Independent Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. The Independent Trustees considered the Adviser’s profitability and costs, including by means of an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Independent Trustees also considered the advisory fees under the Advisory Contracts and compared those fees to the fees of similar funds, which had been compiled and provided by Lipper Inc. The Independent Trustees determined that the Funds had advisory fees competitive with those of similar funds, noting the resources, expertise and experience provided to the Funds.

	The Independent Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Independent Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts.


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Investment Adviser Contract Approval (Unaudited) (continued)


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

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

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

	Other Relevant Considerations. The Independent Trustees also considered the extent to which the Adviser and Sub-Advisers had achieved economies of scale, whether the Funds’ expense structure permits economies of scale to be shared with the Funds’ shareholders and, if so, the extent to which the Funds’ shareholders may benefit from these economies of scale. The Independent Trustees also noted the contractual caps on certain Fund expenses provided by the Adviser with respect to many of the Funds in order to reduce or control the overall operating expenses of those Funds. The Independent Trustees also considered certain information provided by the Adviser and Sub-Advisers with respect to the benefits they may derive from their relationships with the Funds, including the fact that certain Sub-Advisers have “soft dollar” arrangements with respect to Fund brokerage and therefore may have access to research and other permissible services.

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

	II. Approval of Sub-Advisory Agreement for the HSBC Investor International Equity Fund

	The Valuation and Investment Oversight Committee of the Board (the “Investment Committee”), which consists of the Independent Trustees, and the Board met in person and considered the initial approval of the Investment Sub-Advisory Agreement between the Adviser and Lord Abbett with respect to the International Equity Portfolio on December 6 and 7, 2010, respectively. The HSBC Investor International Equity Fund series of HSBC Advisor Funds Trust and the HSBC Investor Overseas Fund series of HSBC Investor Funds each invests all of its investable assets in the International Equity Portfolio in a master-feeder structure.

	Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the Investment Sub-Advisory Agreement. This information included, among other things, information about: (i) the services that Lord Abbett would provide; (ii) the personnel who would provide such services; (iii) investment performance; (iv) fees that would be received by Lord Abbett, including in comparison with the advisory fees paid by other similar funds based on materials provided by Lipper Inc.; and (v) total expense ratios, including in comparison with the total expense ratios of other similar funds based on materials provided by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

	At the meeting of the Investment Committee, the Committee members received a presentation by Lord Abbett and discussed the information presented at and the materials provided in advance of the meeting. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that Lord Abbett replace AllianceBernstein as the Sub-Adviser of the Portfolio. At the meeting of the Board, the Independent Trustees considered the recommendation of the Investment Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the Investment Sub-Advisory Agreement with respect to the Portfolio for an initial term of two years.

	The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

	Nature, Extent, and Quality of Services to be Provided by the Sub-Adviser. The Independent Trustees considered information provided by the Adviser on Lord Abbett’s history, investment selection process, style tilt and flexibility, performance and tracking error. The Independent Trustees considered Lord Abbett’s organizational structure and biographical information on key employees of the firm. The Independent Trustees noted the Adviser’s view that Lord Abbett has


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Investment Adviser Contract Approval (Unaudited) (continued)


	competitive advantages in the strong team dynamic of its core international strategy team members, the risk management framework used in managing portfolios, and the collaboration between the portfolio management team and others within the firm. The Independent Trustees also noted the Adviser’s comparison of Lord Abbett’s investment process to that of AllianceBernstein and the Adviser’s belief that Lord Abbett’s investment process had produced more stable returns over the longer term than that of AllianceBernstein. The Independent Trustees concluded that the nature, extent and quality of the services that Lord Abbett appeared able to provide supported engaging Lord Abbett to be the Portfolio’s Sub-Adviser.

	Investment Performance of the Sub-Adviser. The Independent Trustees considered Lord Abbett’s performance with respect to its international equity strategy over various time periods, including one, three, five and ten years. The Independent Trustees noted that the firm’s 2009 performance for the international equity strategy had been negatively affected by its fourth quarter results, but that its three year and five year performance had remained strong. The Independent Trustees also noted the consistency of Lord Abbett’s investment performance over the past five calendar years, noting that 2006 was the only year where the firm had underperformed versus the MSCI EAFE Large Cap Core Index. The Independent Trustees also noted that Lord Abbett’s consistent performance was demonstrated by its scoring in the top quartile for relative and absolute risk efficiency during that period. The Independent Trustees concluded that Lord Abbett’s investment performance for its international strategy supported its engagement as Sub-Adviser to the Portfolio.

	Costs of Services and Profits Realized by the Sub-Adviser. The Independent Trustees considered the proposed fee for providing sub-advisory services to the Portfolio and the fact that the fee was identical to the fee currently paid to AllianceBernstein. The Independent Trustees considered the information presented regarding the competitiveness of the International Equity Portfolio’s advisory fees and the total expense ratios of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund more generally in light of the proposed sub-advisory fee. The Independent Trustees concluded that the fee proposed to be paid to Lord Abbett is fair and reasonable.

	Other Relevant Considerations. Among other factors, the Independent Trustees considered the needs of the shareholders of the HSBC Investor International Equity Fund and HSBC Investor Overseas Fund in terms of investment performance, as determined by the Multimanager team of the Adviser, the Adviser’s efforts to locate one or more investment sub-advisers that had a track record of producing investment performance with the desired attributes, individually or as a group, and the relative difficulty in interesting potential candidates to pursue the sub-advisory relationship with the Portfolio, given its relatively small asset size. The Independent Trustees also considered the extent to which the Portfolio’s expense structure may permit economies of scale to be shared with the Portfolio’s shareholders and the extent to which the Portfolio’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses for the HSBC Investor Overseas Fund in order to reduce or control the overall operating expenses of the Fund.

	In light of the above considerations and such other factors and information it considered relevant, the Board by a unanimous vote of those present in person at the meeting (including a separate unanimous vote of the Independent Trustees present in person at the meeting) approved the proposed Sub-Advisory Agreement with respect to the International Equity Portfolio for an initial term of two years.

	III. Approval of an Advisory Contract Supplement and Sub-Advisory Agreement for the HSBC Investor Risk Managed Fund

	On February 28, 2011, the Contracts Committee and the Board met in person to consider the expansion of the HSBC Investor Funds family to include a new series of HSBC Investor Funds, the HSBC Investor Risk Managed Fund (“Risk Managed Fund”) and, in connection therewith, approving:


	•	the Advisory Contract between the Adviser and the Trust with respect to the Risk Managed Fund and the related Contract Supplement applicable to the Risk Managed Fund (“RM Advisory Agreement”);

	•	a Sub-Advisory Agreement between the Adviser and Sinopia Asset Management (“Sinopia”) with respect to the Risk Managed Fund (“RM Sub-Advisory Agreement”); and

	•	the Trust’s Ancillary Agreements applicable to the Risk Managed Fund

Prior to the meetings, the Independent Trustees received and reviewed the information they thought reasonably necessary to evaluate the terms of the RM Advisory Agreement, the RM Sub-Advisory Agreement and the Ancillary Agreements applicable to the Risk Managed Fund (collectively, the “RM Agreements”). This information included, among other things, information about: (i) the services the Adviser and Sinopia would provide to the Risk Managed Fund; (ii) per-


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Investment Adviser Contract Approval (Unaudited) (continued)


	sonnel who provide such services; (iii) relevant past investment performance of Sinopia; and (iv) fees proposed to be received by the Adviser and Sinopia with respect to the Risk Managed Fund in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. Counsel to the Trust and to the Independent Trustees were present at the Contracts Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process and their fiduciary obligations under Section 15(c) of the 1940 Act.

	At its meeting, the Contracts Committee reviewed and discussed the information provided in advance of the meeting and received a presentation about Sinopia. Based on its deliberations, the Committee determined to recommend to the Board, including the Independent Trustees, that the RM Agreements be approved with respect to the Risk Managed Fund, subject to the completion by the Funds’ Chief Compliance Officer of his review of Sinopia’s compliance program and final confirmation that the Adviser and Sinopia wished for the sub-advisory fee to be split evenly as proposed. At the meeting of the Board, the Independent Trustees considered the recommendation of the Contracts Committee and further evaluated the proposal. As a result of this process, the Board and Independent Trustees determined to approve the RM Agreements with respect to the Risk Managed Fund, subject to the completion of the Chief Compliance Officer’s review of Sinopia’s compliance program and final confirmation by the Adviser and Sinopia as to the sub-advisory fee. Subsequent to the meeting, the Chief Compliance Officer completed his review and indicated to the Board that he was satisfied with Sinopia’s compliance program and the sub-advisory fee was finalized as proposed.

	The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

	Nature, Extent, and Quality of Services Provided by Adviser and Sinopia. The Independent Trustees considered the nature, quality and extent of the investment advisory services to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund. With respect to the Adviser, the Independent Trustees considered that the services provided would be consistent with those provided to other Funds, and therefore considered the same points as they did in considering the annual renewal of the Advisory Contract in December 2010 as set forth above.

	With respect to Sinopia, the Independent Trustees considered the scope of Sinopia’s business and Sinopia’s experience with respect to the proposed investment strategy for the Risk Managed Fund. The Independent Trustees also considered the quality and experience of the personnel proposed to manage the Risk Managed Fund’s assets and information about the past investment performance of an account managed by Sinopia using an investment strategy substantially similar to that proposed for the Risk Managed Fund (the “Performance Information”).

	Based upon these considerations, the Independent Trustees concluded that they were satisfied with the nature, quality and extent of the services proposed to be provided by the Adviser and Sinopia with respect to the Risk Managed Fund.

	Investment Performance of Sinopia. The Independent Trustees considered performance information provided by the Adviser regarding an account managed by Sinopia in accordance with an investment objective and strategy substantially similar to that proposed for the Risk Managed Fund, including how the account in question had performed in both bull and bear markets and how the performance had compared to a benchmark. The Independent Trustees concluded that the investment performance presented supported the initial approval of the RM Sub-Advisory Agreement.

	Costs of Proposed Services and Profits to be Realized by the Adviser and Sinopia. The Independent Trustees considered the costs of the proposed services to be provided by the Adviser and Sinopia to the Risk Managed Fund. In this regard, the Independent Trustees considered information pertaining to the proposed advisory fees and the projected total expense ratios as compared to other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc. The Independent Trustees also considered certain information on the Adviser’s profitability with respect to its relationship with the Funds that had been presented at the December 7, 2010 meeting of the Board of Trustees, as set forth above. The Independent Trustees concluded that the advisory fees proposed to be payable to the Adviser and Sinopia are fair and reasonable in light of the factors set forth above.

	Other Relevant Considerations. The Independent Trustees also considered the extent to which the Risk Managed Fund’s expense structure may permit economies of scale to be shared with the Fund’s shareholders and the extent to which the Risk Managed Fund’s shareholders might benefit from these potential economies of scale. The Independent Trustees also noted the proposed contractual caps on certain Fund expenses proposed to be provided by the Adviser with respect to the Funds in order to reduce or control the overall operating expenses of the Fund.


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HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited) (continued)


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HSBC INVESTOR PORTFOLIOS

Table of Shareholder Expenses—as of April 30, 2011 (Unaudited)


	As a shareholder of the Portfolios, you incur ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds.

	These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2010 through April 30, 2011.

	Actual Example

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


	Beginning Account Value 11/1/10			Ending Account Value 4/30/11			Expenses Paid During Period* 11/1/10 – 4/30/11			Annualized Expense Ratio During Period 11/1/10 – 4/30/11

Growth Portfolio		$	1,000.00		$	1,194.60		$	3.59	0.66%
International Equity Portfolio			1,000.00			1,123.40			6.69	1.27%
Opportunity Portfolio			1,000.00			1,305.40			5.03	0.88%
Value Portfolio			1,000.00			1,167.30			3.49	0.65%



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


	Hypothetical Example for Comparison Purposes

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

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


	Beginning Account Value 11/1/10			Ending Account Value 4/30/11			Expenses Paid During Period* 11/1/10 – 4/30/11			Annualized Expense Ratio During Period 11/1/10 – 4/30/11

Growth Portfolio		$	1,000.00		$	1,021.52		$	3.31	0.66%
International Equity Portfolio			1,000.00			1,018.50			6.36	1.27%
Opportunity Portfolio			1,000.00			1,020.43			4.41	0.88%
Value Portfolio			1,000.00			1,021.57			3.26	0.65%



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

78	HSBC INVESTOR PORTFOLIOS

Other Information:

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

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

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


HSBC INVESTOR PORTFOLIOS	79


HSBC INVESTOR FAMILY OF FUNDS:		SHAREHOLDER SERVICING AGENTS
		For HSBC Bank USA, N.A. and
INVESTMENT ADVISER AND ADMINISTRATOR		HSBC Securities (USA) Inc. Clients
HSBC Global Asset Management (USA) Inc.		HSBC Bank USA, N.A.
452 Fifth Avenue		452 Fifth Avenue
New York, NY 10018		New York, NY 10018
		1-888-525-5757
SUB-ADVISERS
HSBC Investor Growth Portfolio		For All Other Shareholders
Winslow Capital Management, Inc.		HSBC Investor Funds
4720 IDS Tower		P.O. Box 182845
80th South Eighth Street		Columbus, OH 43218-2845
Minneapolis, MN 55402		1-800-782-8183

HSBC Investor International Equity Portfolio		TRANSFER AGENT
Lord, Abbett & Co. LLC		Citi Fund Services
90 Hudson Street		3435 Stelzer Road
Jersey City, NJ 07302		Columbus, OH 43219

HSBC Investor Opportunity Portfolio		DISTRIBUTOR
Westfield Capital Management Company, L.P.		Foreside Distribution Services, L.P.
One Financial Center		690 Taylor Road, Suite 150
Boston, MA 02111		Gahanna, OH 43230-3202

HSBC Investor Value Portfolio		CUSTODIAN
NWQ Investment Management Company, LLC		The Northern Trust Company
2049 Century Park East, 16th Floor		50 South LaSalle Street
Los Angeles, CA 90067		Chicago, IL 60603

		INDEPENDENT REGISTERED PUBLIC
		ACCOUNTING FIRM
		KPMG LLP
		191 West Nationwide Blvd., Suite 500
		Columbus, OH 43215

		LEGAL COUNSEL
		Dechert LLP
		1775 I Street, N.W.
		Washington, D.C. 20006

(LOGO)

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-SR-RTL-0611			6/11

Item 2. Code of Ethics.

Not applicable – only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable – only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable – only for annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

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

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable – Only effective for annual reports.

(a)(2) Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)	HSBC ADVISOR FUNDS TRUST


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

	Richard A. Fabietti
	President


Date	June 21, 2011

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 21, 2011


By (Signature and Title)	/s/ Ty Edwards

	Ty Edwards
	Treasurer


Date	June 21, 2011

Current Voluntarily
Expense Limitation

International Equity Fund