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: October 31, 2011

Item 1. Reports to Stockholders.

HSBC Global Asset Management (USA) Inc.

October 31, 2011

HSBC Investor Funds

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
Annual Report - October 31, 2011

Glossary of Terms
Chairman’s Message	4
President’s Message	6
Commentary From the Investment Manager	7
Portfolio Reviews	8
Portfolio Composition	16
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
Report of Independent Registered Public Accounting Firm	42
Other Federal Income Tax Information	43
Table of Shareholder Expenses	44
Additional Information	46
HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Growth Portfolio	48
HSBC Investor International Equity Portfolio	50
HSBC Investor Opportunity Portfolio	53
HSBC Investor Value Portfolio	55
Statements of Assets and Liabilities	56
Statements of Operations	57
Statements of Changes in Net Assets	58
Financial Highlights	60
Notes to Financial Statements	61
Report of Independent Registered Public Accounting Firm	68
Table of Shareholder Expenses	69
Board of Trustees and Officers	70
Other Information	72

[This Page Intentionally Left Blank]

Glossary of Terms

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

Barclays Capital U.S. High-Yield Corporate Bond Index is an unmanaged index that measures the non-investment grade, USD-denominated, 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. Broad Market Index.

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 Emerging Market (“MSCI EM”) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI EM Index consists of the following 21 emerging market countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

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 countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.

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

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

Russell 2000^® Index is an unmanaged index 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 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

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

Standard & Poor’s 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.

Standard & Poor’s Credit Rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. The opinion reflects Standard & Poor’s view of the obligor’s capacity and willingness to meet its financial commitments as they come due, and may assess terms, such as collateral security and subordination, which could affect ultimate payment in the event of default. An obligation rated ‘AAA’ has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong. The ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

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.

Chairman’s Message

December 16, 2011

To Our Investors:

The past year was a difficult one for investors, as well as—and, in significant part, due to—policymakers around the world. In the U.S., political partisanship reached new levels, inspiring policy gridlock; regulatory authorities raised the cost of commerce with new regulations, while failing to enforce existing ones. The housing mess, long in creation, thwarted economic recovery while losses continued to mount for Freddie Mac and Fannie Mae. In Europe, the European Central Bank’s rules have enabled smaller economies to spend beyond their means while incurring debt and enlarging entitlements. The resulting fallout from these European debt issues has led to several leadership changes, but thus far has failed to lead to decisive resolution. Many of the emerging markets, an increasing focus of our fund family, have benefited from rising domestic demand in their economies, especially from consumers, leading to favorable relative performance.

What unites the global economy is a “3D” problem: debt, deficits and demographics. Too many countries have too much debt—including the U.S., where the measure of debt to U.S. Gross Domestic Product (“GDP”) ¹ eclipses 350% if entitlements are counted. The term structure of such sovereign debt has provoked liquidity concerns in nations such as Italy, where euro 200 billion (U.S. $300 billion) must be refinanced over the next year. Aggravating the existing debt loads are large and growing deficits in many countries. These deficits are being magnified by the global slowdown and the apparent inability of political leaders to install necessary austerity measures that offer hope for eventual financial stability. Finally, demographics are disheartening across the developed world: moderate to negative population growth in countries such as the U.S. and Italy means fewer workers to pay for the old and retired. Economists shudder at such discouraging “dependency ratios.”

In such conditions, it was not a surprise that Standard & Poor’s downgraded the U.S.’s long-term credit rating in August 2011 to AA+ from AAA (see “Standard & Poor’s Credit Rating” in the Glossary of Terms). It is surprising, however, that several other mature economies haven’t also been downgraded. Clearly, this situation challenged our portfolio managers who, despite the volatility, continued to perform relatively well during the year ended October 31, 2011. In the low-yield environment where key interest rates are hovering near zero, HSBC Global Asset Management (USA) Inc., the Fund’s investment advisor, along with other service providers, provided yield support of approximately $20.2 million over the year to the HSBC Money Market Funds. The Board has monitored these Money Market Funds very closely, in part because they, like their peers, invest in short-term European bank paper. Such investments accounted for approximately 8% of the assets for the Prime Money Market Fund as of October 31, 2011.

Regulators’ scrutiny remains on the money market fund industry as it is deemed to embody “systemic risk”. No prescriptions have been announced by the Securities & Exchange Commission (“SEC”), but we favor the proposal offered by HSBC, which can be found on the SEC’s website, http://www.sec.gov/comments/4-619/4-619.shtml.

Owing to limited investor demand, small size and outflows, we have liquidated the HSBC California Tax-Free Money Market Fund. The Board has also approved the liquidation of the International Equity, Overseas Equity and Value Funds. Those liquidations will take place on or around December 31, 2011. We are pleased that our emerging market investment product offerings continue to grow. Recent economic developments have underscored the relative appeal of certain emerging markets stocks, bonds and currencies. The new product offerings, which were launched in 2011 include:

• HSBC Emerging Markets Debt Fund

• HSBC Emerging Markets Local Debt Fund

• HSBC Frontier Markets Fund

4 HSBC INVESTOR FAMILY OF FUNDS

Chairman’s Message (continued)

After the close of our fiscal year, the Board accepted with regret the resignation of Sylvia Coutinho, who is returning to HSBC’s Latin American operation. It’s been a pleasure working with Sylvia. The Board welcomes to her former seat as “interested trustee” Deborah Hazell, who recently joined HSBC as Chief Executive Officer of HSBC Global Asset Management, North America.

As a founding Trustee of the HSBC Investor Funds’ fund family, I confess to astonishment at how complex the world of investing has grown over the past quarter-century. Then, there were no such things as exchange-traded funds; today there are over 900 exchange-traded funds available to investors. Then, overseas investing was rare, pursued by a handful of pioneers; today, virtually every investor is advised to have some international exposure. Then, derivatives were uncommon and largely the province of a sophisticated few; today, such instruments are central to the pursuit of risk-adjusted performance.

Amid such complexity, I find it assuring to work with this investment advisor, Board of Trustees and service providers.

Cordially,

Michael Seely

Chairman, HSBC Investor Funds

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

An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.

Investors should consider the investment objectives, risks, charges, and expenses of the investment company carefully before investing. The prospectus contains this and other important information about the investment company. For clients of HSBC Securities (USA) Inc., please call 1-888-525-5757 for more information. For other investors and prospective investors, please call the Funds directly at 1-800-782-8183 or visit our website at www.investorfunds.us.hsbc.com. Investors should read the prospectus carefully before investing or sending money.

HSBC INVESTOR FAMILY OF FUNDS 5

President’s Message

Dear Shareholder,

Welcome to the HSBC Investor Funds’ annual report, covering the period between November 1, 2010 and October 31, 2011. This report provides detailed information about your Funds’ results. We encourage you to review it carefully.

On the previous pages you will find a letter from the Funds’ Chairman, Michael Seely, in which he comments on recent market developments. The report also includes commentary from the Funds’ portfolio managers in which they discuss the investment markets 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.

On April 7, 2011, we launched two emerging markets debt funds, the HSBC Emerging Markets Debt Fund and the HSBC Emerging Markets Local Debt Fund, which represented HSBC’s first U.S. registered mutual funds investing in emerging markets securities. The HSBC Emerging Markets Debt Fund was subsequently included in the portfolios of certain World Selection Funds. In September, the HSBC Frontier Markets Fund joined these two emerging market debt funds as our initial fund offerings in this exciting segment of the investment market. One of HSBC’s global strengths is emerging markets investment management and we look forward to developing other emerging markets mutual funds for distribution in the U.S.

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

Sincerely,

Richard A. Fabietti
President

6 HSBC INVESTOR FAMILY OF FUNDS

Commentary From the Investment Manager

HSBC Global Asset Management (USA) Inc.

U.S. Economic Review

The global economy continued its sluggish recovery during the year ended October 31, 2011, but economic gains were overshadowed by signs of slowing growth and uncertainty related to the European debt crisis during the second half of the year.

Concerns about risks of sovereign debt defaults in Europe persisted throughout the year, causing increased market volatility and dampening investor sentiment. Problems with the domestic economy, including high unemployment and slow economic growth, also weighed on investors’ confidence. Despite some indications that the economic recovery was picking up momentum during the first half of the year, fears of a double-dip recession became more prominent in the spring of 2011 due to a number of economic reports showing slowing economic growth.

U.S. Gross Domestic Product (“GDP”)¹ growth dropped sharply from 2.3% in the fourth quarter of 2010 to 0.4% during first quarter of 2011. Growth picked up during the next two quarters, with 1.3% GDP growth in the second quarter of 2011 and a preliminary estimate of 2.5% growth for the third quarter.

The U.S. Federal Reserve Board (the “Fed”) took several actions to support the recovery. The Fed: (1) continued a program of quantitative easing that ended in June, (2) signaled in August its intent to keep the federal funds rate near 0% through mid-2013, and (3) implemented “Operation Twist,” which involves selling short-term Treasury securities and purchasing long-term Treasuries in a bid to keep long-term interest rates low.

The U.S. job market picked up slightly during the year ended October 31, 2011, but historically high levels of unemployment remained a significant drag on the economic recovery. Home sales in the U.S. rose, but home prices remained relatively low and foreclosure and delinquency rates hit record levels.

Meanwhile, reports showed that manufacturing activity was increasing slowly but steadily, and that the services sector was expanding. Consumer confidence began the year trending upward, but fell sharply during the fall of 2011 due in part to the slow pace of the economic recovery and high unemployment.

Globally, Europe struggled with problems in its financial system related to its sovereign debt issues. Most emerging markets experienced robust economic performance. However, growth slowed during the third quarter in some major emerging markets, including China and India. Russian economic activity stood out in comparison with the rest of the emerging markets, with increasing real wages, stronger retail sales and falling unemployment. Inflationary pressures increased in many emerging markets, however, causing governments to tighten monetary policy to counter rising prices of food and other commodities.

Market Review

Stocks surged at the beginning of the year as improving U.S. economic data and an economic rescue package for several eurozone countries boosted investor confidence. The positive momentum continued into the first few months of 2011, despite geopolitical turmoil in the Middle East, an uptick in energy and food prices and continuing debt problems in eurozone countries such as Greece. Data showing increasing consumer confidence, robust manufacturing, soaring home sales and strong corporate earnings was enough to sustain stocks’ steady gains. A devastating earthquake and tsunami hit Japan in mid-March, pulling global stocks down sharply for a short period and bringing Japanese economic growth to a halt.

The market’s momentum stalled during the second quarter of 2011, when new economic data, including reports showing soft sales in the U.S. retail sector and a weak U.S. job market, indicated slowing growth and renewed fears of a double-dip recession. The sovereign debt situation in Europe deteriorated, and credit agencies downgraded Portugal, Greece and Italy. The month of May marked a turning point in global markets: commodities posted their largest monthly drop in a year and equities fell across the board.

A contentious political conflict over raising the U.S. debt ceiling also dragged markets down and damaged investor confidence during the second quarter. The subsequent downgrade of U.S. long-term debt by rating agency Standard & Poor’s in August further damaged confidence. Stocks then lost significant ground during the third quarter of 2011, with the Dow Jones Industrial Average finishing the quarter down 12%—its largest quarterly decline since early 2009.

Not all news was negative during the latter half of the year ended October 31, 2011. Data on U.S. industrial production, durable goods orders and manufacturing exceeded expectations. Corporate earnings also remained robust. Consumer sentiment improved and jobs data released during the fall months were encouraging.

Investors began the year favoring higher-risk areas of the equity market, helping emerging markets and small-cap stocks produce strong gains during the six months through April. However, by the end of the year, investors were pulling assets out of stocks and increasing cash and bond positions. The Russell 2000^® Index¹ of small-company stocks returned 9.84% during the period ended October 31, 2011, while the S&P 500 Index¹ of large-company stocks returned 8.09% over the same period.

Stocks in developed economies performed well early in the year, but these advances largely reversed themselves by the end of the year. European markets experienced dramatic losses as leaders struggled to coordinate a response to sovereign debt problems that would prevent defaults in Greece, Italy and other fragile economies. The MSCI EAFE Index¹ of developed foreign markets returned -3.64% for the year as a whole, while the MSCI EM Index¹ returned -7.44% over the same period.

Among fixed-income securities, corporate bonds—particularly high-yield bonds—exhibited strength during much of the year as investors sought out additional yield in a low-interest-rate environment. The trend dissipated in the third quarter, however, as investors grew more risk-averse and turned to the relative safety of U.S. Treasuries. The Barclays Capital U.S. Aggregate Bond Index¹, which tracks the broad investment-grade fixed-income market, returned 5.00% for the year ended October 31, 2011, while the Barclays Capital U.S. High-Yield Corporate Bond Index¹ returned 5.17% over the same period.

U.S. Treasury yields ticked upward throughout much of 2011, but sunk lower again in the third quarter due in part to the Fed’s “Operation Twist” program, which is designed to suppress long-term interest rates.

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

by Clark J. Winslow, CEO and CIO/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 10.45% (without sales charge) for the Class A Shares and 10.80% for the Class I Shares for the year ended October 31, 2011. That compared to a 9.92% total return for the Russell 1000^® Growth Index¹ and a 6.92% total return for the Lipper Large-Cap Growth Funds Average¹.

Portfolio Performance

The U.S. and global equity markets rallied early in the period as investors became more optimistic about the size and scope of the economic recovery. However, that optimism was tempered by higher oil prices in the wake of unrest in the Middle East and global supply chain disruptions caused by the Japanese earthquake and tsunami.

Several other factors contributed to concerns about the health of the global economy, including continued weakness in the U.S. labor market and debt problems in Greece and other European countries. Equities gave up most of their early gains by the end of the summer. Still, the period finished with the stock market posting one of its best one-month performances in nearly a decade. On balance, the Fund’s absolute return during the period benefited from strength in the global equity markets.

Individual stock selection was the primary reason the Fund’s Class A Shares (without sales charge) and Class I Shares outperformed the benchmark. The Fund particularly benefited from its holdings in a global aerospace services company. Stock selection in the consumer staples sector also added to returns relative to the index. The Fund held a smaller position than the benchmark in this strong-performing sector, but good performance by individual consumer staples holdings more than offset the impact of its relatively small stake.*

The Fund’s relative performance was hurt slightly by an overweight position in the financial sector, which was the only sector with a negative total return during the year. Additionally, stock selection in the financial and consumer discretionary sectors detracted from the Fund’s performance relative to its benchmark.*

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

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

8 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor Growth Fund

Value of a $10,000 Investment

The charts above represent a historical since inception performance comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains in the Fund.

Fund Performance		Average Annual Total Return (%)				Expense Ratio (%)6
As of October 31, 2011	Inception Date	1 Year	5 Year	Since Inception		Gross	Net
HSBC Investor Growth Fund Class A1	5/7/045	4.93	3.78	5.13		1.34	1.20
HSBC Investor Growth Fund Class B2	5/7/045	5.64	4.06	5.20		2.09	1.95
HSBC Investor Growth Fund Class C3	5/7/045	8.65	4.08	5.06		2.09	1.95
HSBC Investor Growth Fund Class I	5/7/045	10.80	5.11	6.11		1.09	0.95
Russell 1000® Growth Index4	—	9.92	3.04	4.64	7	N/A	N/A
Lipper Large-Cap Growth Funds Average4	—	6.92	1.99	3.98	7	N/A	N/A

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. 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.

Certain returns shown include monies received by the Portfolio, in which the Fund invests, in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund’s total returns for those periods were higher than they would have been had the Portfolio not received the payments.

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. The expense limitation shall be in effect until March 1, 2012. Additional information pertaining to the October 31, 2011 expense ratios can be found in the financial highlights.
7	Return for the period May 10, 2004 to October 31, 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

(Class I Shares)

HSBC Investor Overseas Equity Fund

(Class A Shares, Class B Shares, and Class 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”) seeks to provide long-term growth of capital and future income. Under normal market conditions, each of 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. Each of the Funds may invest up to 20% of their 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 the Portfolio’s 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 -5.91% and HSBC Investor Overseas Equity Fund Class A Shares returned -6.90% (without sales charge) for the year ended October 31, 2011. That compared to an -3.64% return for the Fund’s benchmark, the MSCI EAFE Index¹ (Europe, Australasia and Far East) and a -7.30% total return of the Lipper International Large-Cap Value Funds Average¹.

Portfolio Performance

HSBC Global Asset Management (USA) Inc., the Fund’s investment advisor changed the Fund’s subadvisor early in the 12-month period. Lord, Abbett & Co. LLC assumed management of the Fund at the close of business January 12, 2011. The Fund’s 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.*

Early in the period, investors were optimistic that the global economy was recovering. Their optimism was tempered later in the period by issues such as Europe’s sovereign debt troubles and unrest in the Middle East. The shift in sentiment led to greater volatility in global equity markets. Emerging markets equities did not perform well, with markets such as Taiwan, China and Poland posting especially weak returns. That weak performance negatively impacted the Funds’ absolute return during the period.

The previous subadvisor positioned the Fund with an underweight position in the capital equipment sector, which dragged on performance relative to the Funds’ benchmark. The Funds’ relative returns also were hurt by individual stock selection in the materials and energy sectors. Those shares were chosen by the Funds’ current subadvisor. In particular, the Funds were hurt by their exposure to a Hong Kong-based fragrance company and a U.K.-based mining company.*

Under the previous subadvisor, strong stock selection among industrial commodities companies benefited the Funds’ relative performance. The Funds’ current subadvisor later in the year established a bias toward developed-market equities, which helped boost the Funds’ relative performance. An underweight position in the financial sector later in the period also contributed positively to the Funds’ relative performance, as did strong stock selection in that sector, including shares of Asian banks in Indonesia and Thailand. Stock selection in the utilities sector also helped boost the Funds’ relative performance later in the year. Strong performing holdings included a Hong Kong-based energy company and a U.K.-based electricity and gas company.*

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

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

10 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor International Equity Fund
HSBC Investor Overseas Equity Fund

Value of a $10,000 Investment

The charts above represent a historical 10-year performance comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains in the Fund.

Fund Performance		Average Annual Total Return (%)			Expense Ratio (%)5
As of October 31, 2011	Inception Date	1 Year	5 Year	10 Year	Gross	Net
HSBC Investor International Equity Fund Class I*	1/9/95	-5.91	-5.11	4.40	1.74	1.74
HSBC Investor Overseas Equity Fund Class A1	8/26/96	-11.49	-7.46	2.92	2.71	1.85
HSBC Investor Overseas Equity Fund Class B2	1/6/98	-11.22	-7.19	2.98	3.46	2.60
HSBC Investor Overseas Equity Fund Class C3	11/4/98	-8.46	-7.17	2.69	3.46	2.60
MSCI EAFE Index4	—	-3.64	-1.95	6.19	N/A	N/A
Lipper International Large-Cap Value Funds Average4	—	-7.30	-4.17	5.63	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.

Certain returns shown include monies received by the Portfolio, in which the Fund invests, in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund’s total returns for those periods 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.
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. The expense limitation shall be in effect until March 1, 2012. Additional information pertaining to the October 31, 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 (Advisor)

(Class I Shares)

HSBC Investor Opportunity Fund

(Class A Shares, Class B Shares and Class C 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 and HSBC Investor Opportunity Fund (Advisor) (collectively 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 year ended October 31, 2011, the Class I Shares of the HSBC Investor Opportunity Fund (Advisor) produced a 12.25% total return, and the Class A Shares of the Fund produced a 11.59% total return (without sales charge). The Fund’s benchmarks, the Russell 2500^™ Growth Index¹ and the Lipper Mid-Cap Growth Funds Average¹, returned 11.91% and 8.19%, respectively.

Portfolio Performance

Investor optimism about a global economic recovery early in the year gave way to mounting concerns about the economy’s health. Investors worried that the global economy faced a protracted slowdown or a double-dip recession. Their concerns contributed to significant stock market volatility during the latter part of the year.

Stocks nevertheless performed relatively well during the period, and the Fund benefited in absolute terms. Investors’ demand for high-quality growth stocks, which they saw as safe havens in a challenging equity market, particularly helped absolute return.

The Fund’s Class I Shares outperformed the benchmark largely because of stock selection. The Fund particularly benefited from strong selection in the health care, industrials and materials, information technology and consumer staples sectors. An overweight position in the health care sector further boosted relative performance, as that sector posted stronger returns than the market as a whole.*

Stock selection in the financials and energy sectors hurt the Fund’s performance relative to its benchmark. An underweight position in the consumer discretionary sector, which performed well during the year, also detracted from the Fund’s relative performance.*

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

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

12 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor Opportunity Fund

Value of a $10,000 Investment

The charts above represent a historical 10-year performance comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains in the Fund.

Fund Performance			Average Annual Total Return (%)						Expense Ratio (%)5
As of October 31, 2011	Inception Date		1 Year		5 Year		10 Year		Gross		Net
HSBC Investor Opportunity Fund Class A1		9/23/96		6.00		5.42		7.15		2.07		1.65
HSBC Investor Opportunity Fund Class B2		1/6/98		6.75		5.71		7.21		2.82		2.40
HSBC Investor Opportunity Fund Class C3		11/4/98		9.79		5.73		6.91		2.82		2.40
HSBC Investor Opportunity Fund Class I*		9/3/96		12.25		6.87		8.19		1.01		1.01
Russell 2500™ Growth Index4		—		11.91		3.88		6.85		N/A		N/A
Lipper Mid-Cap Growth Funds Average4		—		8.19		3.46		5.96		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 Class A Shares, Class B Shares and Class C Shares.

Certain returns shown include monies received by the Portfolio, in which the Fund invests, in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund’s total returns for those periods 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.
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. The expense limitation shall be in effect until March 1, 2012. Additional information pertaining to the October 31, 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, Class B Shares, Class C Shares and Class I Shares)

by Jon D. Bosse, CFA, Co-President and CIO/Portfolio Manager
Chip Bailey, Jr., Managing Director/ Client 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 1.58% (without sales charge) for the Class A Shares and 1.83% for the Class I Shares for the year ended October 31, 2011. That compared to a 6.16% return for the Russell 1000^® Value Index¹ and a 5.37% return for the Lipper Large-Cap Core Funds Average¹.

Portfolio Performance

The Fund and the benchmark finished the year with positive absolute returns despite a very volatile year in the equity markets. During the year, concerns mounted over the financial health of several European countries. Those concerns weighed heavily on market sentiment and were a significant contributor to stock market volatility during the year.

The largest contributor to the Fund’s absolute and relative performance was its exposure to the technology sector. Many technology companies experienced better-than-expected operating profits due to more strict cost controls. The Fund’s overweight position relative to its benchmark helped performance during the year, as did individual stock selection in the sector. One such holding saw strong gains after an announcement that it would be acquired by another firm.*

Exposure to the consumer staples sector helped fuel the Fund’s absolute performance. Investors favored shares of consumer staples firms during the year, in part because they saw such stocks as “safe havens” in an otherwise challenging market. We believed, however, that many of these companies did not have the fundamentals to support their increased stock prices, and took opportunities during the year to reduce or eliminate some of the Fund’s positions in that sector.*

The largest detractor to the Fund’s absolute and relative performance was its exposure to the financial sector. Such stocks performed poorly during the year due in part to the uncertainty surrounding the ongoing sovereign debt issues in Europe. Although positions were trimmed and added during the year, the Fund’s weighting in the financial sector was generally neutral to or slightly lower than its benchmark. Performance was hurt by individual stock selection. The Fund maintained positions within the bank and insurance industries; we believe that share price performance during the year did not accurately reflect the health of many companies. For example, many large U.S.-domiciled money center banks have dramatically reduced their leverage, improved capital reserves and improved overall business operations. Similarly, many insurance companies have improved their reserves, increased balance sheet liquidity and have fairly healthy on-going business. Again, in our opinion, those structural changes were not reflected in the valuations of financial companies. We did take advantage of price strength early in the year and lightly trimmed positions. Similarly, we added to positions during the year based on price weakness.*

The Fund was adversely impacted by holdings within the energy sector. An underweight to the benchmark in the utilities sector also dragged on relative performance, as that sector performed well during the year.*

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

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

14 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews (Unaudited)

HSBC Investor Value Fund

Value of a $10,000 Investment

The charts above represent a historical since inception performance comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains in the Fund.

Fund Performance				Average Annual Total Return (%)							Expense Ratio (%)6
As of October 31, 2011	Inception Date			1 Year		5 Year		Since Inception			Gross		Net
HSBC Investor Value Fund Class A1		5/7/04	5		-3.53		-3.14		3.27			1.34		1.20
HSBC Investor Value Fund Class B2		5/7/04	5		-3.29		-2.89		3.36			2.09		1.95
HSBC Investor Value Fund Class C3		5/7/04	5		-0.30		-2.88		3.19			2.09		1.95
HSBC Investor Value Fund Class I		5/7/04	5		1.83		-1.89		4.25			1.09		0.95
Russell 1000® Value Index4		—			6.16		-2.05		4.06	7		N/A		N/A
Lipper Large-Cap Core Funds Average4		—			5.37		-0.28		3.72	7		N/A		N/A

Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect the taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. 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.

Certain returns shown include monies received by the Portfolio, in which the Fund invests, in respect of one-time class action settlements and a one-time reimbursement from the Adviser related to past marketing arrangements. As a result, the Fund’s total returns for those periods were higher than they would have been had the Portfolio not received the payments.
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. The expense limitation shall be in effect until March 1, 2012. Additional information pertaining to the October 31, 2011 expense ratios can be found in the financial highlights.
7	Return for the period May 10, 2004 to October 31, 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*

October 31, 2011 (Unaudited)

HSBC Investor Growth Portfolio

Investment Allocation	Percentage of Investments at Value
Computers & Peripherals	8.3%
Software	7.2%
Internet Software & Services	6.3%
IT Services	6.0%
Machinery	5.7%
Oil, Gas & Consumable Fuels	5.5%
Hotels, Restaurants & Leisure	5.3%
Energy Equipment & Services	5.0%
Internet & Catalog Retail	4.6%
Health Care Providers & Services	4.0%
Chemicals	3.5%
Health Care Equipment & Supplies	3.4%
Road & Rail	3.4%
Diversified Financial Services	3.2%
Communications Equipment	3.2%
Capital Markets	2.3%
Pharmaceuticals	2.2%
Specialty Retail	2.2%
Biotechnology	2.2%
Wireless Telecommunication Services	1.9%
Aerospace & Defense	1.9%
Textiles, Apparel & Luxury Goods	1.5%
Construction & Engineering	1.5%
Auto Components	1.4%
Food Products	1.3%
Investment Companies	1.2%
Food & Staples Retailing	1.2%
Air Freight & Logistics	1.1%
Personal Products	1.0%
Metals & Mining	0.9%
Health Care Technology	0.9%
Semiconductors & Semiconductor Equipment	0.7%
Total	100.0%
HSBC Investor International Equity Portfolio
Investment Allocation	Percentage of Investments at Value
Europe	63.2%
Japan	17.7%
Australia & Far East	16.2%
Canada	1.6%
Other	1.3%
Total	100.0%
HSBC Investor Opportunity Portfolio
Investment Allocation	Percentage of Investments at Value
Specialty Retail	9.8%
Oil, Gas & Consumable Fuels	8.3%
Machinery	6.9%
Health Care Equipment & Supplies	6.4%
Software	5.7%
Semiconductors & Semiconductor Equipment	5.5%
Road & Rail	5.2%
IT Services	4.8%
Chemicals	4.4%
Aerospace & Defense	4.1%
Containers & Packaging	3.9%
Food Products	3.4%
Life Sciences Tools & Services	2.6%
Investment Companies	2.5%
Pharmaceuticals	2.4%
Electrical Equipment	2.3%
Auto Components	2.2%
Energy Equipment & Services	2.1%
Professional Services	2.0%
Commercial Services & Supplies	1.8%
Health Care Providers & Services	1.8%
Real Estate Investment Trusts (REITs)	1.7%
Commercial Banks	1.6%
Communications Equipment	1.6%
Capital Markets	1.5%
Insurance	1.5%
Trading Companies & Distributors	1.4%
Diversified Financial Services	1.3%
Wireless Telecommunication Services	1.3%
Total	100.0%
HSBC Investor Value Portfolio
Investment Allocation	Percentage of Investments at Value
Insurance	16.4%
Oil, Gas & Consumable Fuels	14.2%
Pharmaceuticals	12.9%
Metals & Mining	8.0%
Media	6.9%
Software	6.9%
Communications Equipment	5.6%
Diversified Financial Services	4.6%
Machinery	3.2%
Biotechnology	3.2%
Commercial Banks	2.7%
Food & Staples Retailing	2.3%
Capital Markets	2.3%
Aerospace & Defense	1.9%
Road & Rail	1.8%
Automobiles	1.7%
Tobacco	1.4%
Independent Power Producers & Energy Traders	1.3%
Commercial Services & Supplies	1.0%
Energy Equipment & Services	0.9%
Investment Companies	0.8%
Total	100.0%

* Portfolio composition is subject to change.

16 HSBC INVESTOR FAMILY OF FUNDS

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HSBC INVESTOR FAMILY OF FUNDS

Statements of Assets and Liabilities—as of October 31, 2011

	Growth Fund			International Equity Fund			Opportunity Fund			Opportunity Fund (Advisor)
Assets:
Investments in Affiliated Portfolios	$	74,428,486		$	10,101,015		$	12,166,754		$	122,129,683
Receivable for capital shares issued		28,004			97,506			585			56,530
Reclaims receivable		—			460,882			—			—
Receivable from Investment Adviser		—			5,839			2,508			—
Prepaid expenses and other assets		16,085			2,968			6,848			2,031
Total Assets		74,472,575			10,668,210			12,176,695			122,188,244
Liabilities:
Payable for capital shares redeemed		647,212			191,017			44,673			122,306
Accrued expenses and other liabilities:
Administration		1,772			262			286			2,857
Distribution		737			—			584			—
Shareholder Servicing		3,419			—			2,441			—
Transfer Agent		12,687			5,875			8,561			7,599
Other		21,744			3,212			2,697			38,164
Total Liabilities		687,571			200,366			59,242			170,926
Net Assets	$	73,785,004		$	10,467,844		$	12,117,453		$	122,017,318
Composition of Net Assets:
Capital	$	60,511,907		$	82,163,715		$	9,449,250		$	93,787,120
Accumulated net investment income (loss)		—			135,858			—			—
Accumulated net realized gains (losses) from investments		64,076			(71,052,993	)		1,570,901			17,088,437
Unrealized appreciation/depreciation on investments		13,209,021			(778,736	)		1,097,302			11,141,761
Net Assets	$	73,785,004		$	10,467,844		$	12,117,453		$	122,017,318
Net Assets:
Class A Shares	$	15,349,322		$	—		$	11,144,513		$	—
Class B Shares		962,303			—			536,402			—
Class C Shares		251,063			—			436,538			—
Class I Shares		57,222,316			10,467,844			—			122,017,318
	$	73,785,004		$	10,467,844		$	12,117,453		$	122,017,318
Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		925,087			—			1,047,998			—
Class B Shares		63,589			—			60,933			—
Class C Shares		16,490			—			48,608			—
Class I Shares		3,400,693			1,058,811			—			8,704,663
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	16.59		$	—		$	10.63		$	—
Class B Shares(a)	$	15.13		$	—		$	8.80		$	—
Class C Shares(a)	$	15.23		$	—		$	8.98		$	—
Class I Shares	$	16.83		$	9.89		$	—		$	14.02
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	$	17.46		$	—		$	11.19		$	—

(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 October 31, 2011 (continued)

	Overseas Equity Fund			Value Fund
Assets:
Investments in Affiliated Portfolios	$	4,997,275		$	28,953,783
Receivable for capital shares issued		71,427			47,870
Reclaims receivable		25,046			—
Receivable from Investment Adviser		3,667			1,905
Prepaid expenses and other assets		3,621			9,765
Total Assets		5,101,036			29,013,323
Liabilities:
Payable for capital shares redeemed		7,458			87,370
Accrued expenses and other liabilities:
Administration		122			689
Distribution		245			127
Shareholder Servicing		1,044			2,168
Compliance Services		1			66
Transfer Agent		6,811			9,299
Other		1,209			7,185
Total Liabilities		16,890			106,904
Net Assets	$	5,084,146		$	28,906,419
Composition of Net Assets:
Capital	$	6,410,126		$	33,000,661
Accumulated net investment income (loss)		44,984			13,545
Accumulated net realized gains (losses) from investments		(1,003,321	)		(4,409,037	)
Unrealized appreciation/depreciation on investments		(367,643	)		301,250
Net Assets	$	5,084,146		$	28,906,419
Net Assets:
Class A Shares	$	4,698,246		$	10,445,449
Class B Shares		343,059			153,978
Class C Shares		42,841			58,020
Class I Shares		—			18,248,972
	$	5,084,146		$	28,906,419
Shares Outstanding ($0.001 par value, unlimited number of shares authorized):
Class A Shares		1,230,076			867,013
Class B Shares		103,036			13,504
Class C Shares		11,842			5,053
Class I Shares		—			1,517,232
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	3.82		$	12.05
Class B Shares(a)	$	3.33		$	11.40
Class C Shares(a)	$	3.62		$	11.48
Class I Shares	$	—		$	12.03
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	$	4.02		$	12.68

(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 year ended October 31, 2011

	Growth Fund			International Equity Fund			Opportunity Fund			Opportunity Fund (Advisor)
Investment Income:
Investment Income from Affiliated Portfolios(a)	$	520,502		$	362,728		$	125,104		$	1,228,372
Tax reclaims from Affiliated Portfolios(a)		—			20,251			—			—
Foreign tax withholding from Affiliated Portfolios(a)		(210	)		(37,625	)		—			—
Expenses from Affiliated Portfolios(a)		(476,482	)		(161,093	)		(119,151	)		(1,160,926	)
Total Investment Income (Loss)		43,810			184,261			5,953			67,446
Expenses:
Administration:
Class A Shares		3,937			—			2,934			—
Class B Shares		258			—			141			—
Class C Shares		47			—			94			—
Class I Shares		12,867			2,983			—			30,908
Distribution:
Class B Shares		8,195			—			4,463			—
Class C Shares		1,501			—			3,002			—
Shareholder Servicing:
Class A Shares		41,065			—			25,745			—
Class B Shares		2,732			—			1,488			—
Class C Shares		500			—			1,001			—
Accounting		24,001			8,999			19,000			8,999
Compliance Services		491			89			97			928
Printing		38,435			14,189			9,814			45,698
Transfer Agent		78,978			36,000			51,136			49,547
Trustee		1,591			311			295			2,902
Registration fees		32,247			12,199			15,967			8,852
Other		8,263			2,275			2,564			10,797
Total expenses before fee reductions		255,108			77,045			137,741			158,631
Fees contractually reduced by Investment Adviser		—			—			(27,228	)		—
Fees voluntarily reduced by Investment Adviser		—			(112,574	)		(13,465	)		—
Net Expenses		255,108			(35,529	)		97,048			158,631
Net Investment Income (Loss)		(211,298	)		219,790			(91,095	)		(91,185	)
Net Realized/Unrealized Gains (Losses) from Investments:(a)
Net realized gains (losses) from investment securities and foreign currency transactions		6,871,855			493,940			1,941,921			19,552,882
Change in unrealized appreciation/depreciation on investments		383,956			(1,383,173	)		(495,829	)		(4,003,173	)
Net realized/unrealized gains (losses) from investments and foreign currency transactions		7,255,811			(889,233	)		1,446,092			15,549,709
Change In Net Assets Resulting From Operations	$	7,044,513		$	(669,443	)	$	1,354,997		$	15,458,524

(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 year ended October 31, 2011 (continued)

	Overseas Equity Fund			Value Fund
Investment Income:
Investment Income from Affiliated Portfolios(a)	$	174,321		$	490,000
Tax reclaims from Affiliated Portfolios(a)		(6,284	)		—
Foreign tax withholding from Affiliated Portfolios(a)		(18,020	)		(3,766	)
Expenses from Affiliated Portfolios(a)		(78,330	)		(211,948	)
Total Investment Income (Loss)		71,687			274,286
Expenses:
Administration:
Class A Shares		1,252			2,790
Class B Shares		110			46
Class C Shares		15			20
Class I Shares		—			4,758
Distribution:
Class B Shares		3,593			1,491
Class C Shares		357			594
Shareholder Servicing:
Class A Shares		13,262			28,809
Class B Shares		1,198			497
Class C Shares		119			198
Accounting		19,000			24,391
Compliance Services		41			230
Printing		7,797			16,667
Transfer Agent		40,402			55,440
Trustee		134			722
Registration fees		16,066			19,753
Other		2,182			2,588
Total expenses before fee reductions		105,528			158,994
Fees contractually reduced by Investment Adviser		(71,604	)		(31,117	)
Fees voluntarily reduced by Investment Adviser		(8,780	)		—
Net Expenses		25,144			127,877
Net Investment Income (Loss)		46,543			146,409
Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investment securities and foreign currency transactions		168,211			1,179,477
Change in unrealized appreciation/depreciation on investments		(580,771	)		(592,842	)
Net realized/unrealized gains from investments and foreign currency transactions		(412,560	)		586,635
Change In Net Assets Resulting From Operations	$	(366,017	)	$	733,044

(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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
Investment Activities:
Operations:
Net investment income (loss)	$	(211,298	)	$	(237,239	)	$	219,790		$	2,871,032
Net realized gains (losses) from investments		6,871,855			2,754,614			493,940			(23,700,569	)
Change in unrealized appreciation/depreciation on investments		383,956			8,698,898			(1,383,173	)		10,508,917
Change in net assets resulting from operations		7,044,513			11,216,273			(669,443	)		(10,320,620	)
Dividends:
Net investment income:
Class I Shares		—			—			(2,314,948	)		(2,826,752	)
Net realized gains:
Change in net assets resulting from shareholder dividends		—			—			(2,314,948	)		(2,826,752	)
Change in net assets resulting from capital transactions		(582,610	)		(1,368,340	)		(314,850	)		(153,327,685	)
Change in net assets		6,461,903			9,847,933			(3,299,241	)		(166,475,057	)
Net Assets:
Beginning of period		67,323,101			57,475,168			13,767,085			180,242,142
End of period	$	73,785,004		$	67,323,101		$	10,467,844		$	13,767,085
Accumulated net investment income (loss)	$	—		$	—		$	135,858		$	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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,036,796		$	1,474,696		$	—		$	—
Value of shares redeemed		(3,859,930	)		(3,830,531	)		—			—
Class A Shares capital transactions		(2,823,134	)		(2,355,835	)		—			—
Class B Shares:
Proceeds from shares issued		79,343			45,443			—			—
Value of shares redeemed		(448,436	)		(1,185,170	)		—			—
Class B Shares capital transactions		(369,093	)		(1,139,727	)		—			—
Class C Shares:
Proceeds from shares issued		81,604			37,690			—			—
Value of shares redeemed		(36,230	)		(672	)		—			—
Class C Shares capital transactions		45,374			37,018			—			—
Class I Shares:
Proceeds from shares issued		15,376,187			9,912,289			2,502,052			17,089,243
Dividends reinvested		—			—			1,694,111			2,134,231
Value of shares redeemed		(12,811,944	)		(7,822,085	)		(4,511,013	)		(172,551,159	)
Class I Shares capital transactions		2,564,243			2,090,204			(314,850	)		(153,327,685	)
Change in net assets resulting from capital transactions	$	(582,610	)	$	(1,368,340	)	$	(314,850	)	$	(153,327,685	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		61,592			105,581			—			—
Redeemed		(232,059	)		(278,015	)		—			—
Change in Class A Shares		(170,467	)		(172,434	)		—			—
Class B Shares:
Issued		5,111			3,490			—			—
Redeemed		(29,395	)		(93,088	)		—			—
Change in Class B Shares		(24,284	)		(89,598	)		—			—
Class C Shares:
Issued		5,756			3,029			—			—
Redeemed		(2,539	)		(54	)		—			—
Change in Class C Shares		3,217			2,975			—			—
Class I Shares:
Issued		909,571			705,610			230,054			1,420,299
Reinvested		—			—			160,579			173,656
Redeemed		(765,583	)		(563,535	)		(416,558	)		(15,335,841	)
Change in Class I Shares		143,988			142,075			(25,925	)		(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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
Investment Activities:
Operations:
Net investment income (loss)	$	(91,095	)	$	(125,276	)	$	(91,185	)	$	(505,560	)
Net realized gains (losses) from investments		1,941,921			1,493,153			19,552,882			13,711,938
Change in unrealized appreciation/depreciation on investments		(495,829	)		1,480,059			(4,003,173	)		14,318,171
Change in net assets resulting from operations		1,354,997			2,847,936			15,458,524			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		(1,316,886	)		(1,603,281	)		(7,570,425	)		(10,745,516	)
Change in net assets		(163,632	)		1,244,655			4,952,986			16,779,033
Net Assets:
Beginning of period		12,281,085			11,036,430			117,064,332			100,285,299
End of period	$	12,117,453		$	12,281,085		$	122,017,318		$	117,064,332
Accumulated net investment income (loss)	$	—		$	—		$	—		$	—

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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	2,442,156		$	958,979		$	—		$	—
Dividends reinvested		182,620			—			—			—
Value of shares redeemed		(3,824,914	)		(1,934,533	)		—			—
Class A Shares capital transactions		(1,200,138	)		(975,554	)		—			—
Class B Shares:
Proceeds from shares issued		53,441			64,053			—			—
Dividends reinvested		11,521			—			—			—
Value of shares redeemed		(249,484	)		(692,276	)		—			—
Class B Shares capital transactions		(184,522	)		(628,223	)		—			—
Class C Shares:
Proceeds from shares issued		97,064			15,200			—			—
Dividends reinvested		6,561			—			—			—
Value of shares redeemed		(35,851	)		(14,704	)		—			—
Class C Shares capital transactions		67,774			496			—			—
Class I Shares:
Proceeds from shares issued		—			—			18,642,358			15,064,090
Dividends reinvested		—			—			2,626,240			—
Value of shares redeemed		—			—			(28,839,023	)		(25,809,606	)
Class I Shares capital transactions		—			—			(7,570,425	)		(10,745,516	)
Change in net assets resulting from capital transactions	$	(1,316,886	)	$	(1,603,281	)	$	(7,570,425	)	$	(10,745,516	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		210,382			111,213			—			—
Reinvested		17,099			—			—			—
Redeemed		(346,398	)		(226,379	)		—			—
Change in Class A Shares		(118,917	)		(115,166	)		—			—
Class B Shares:
Issued		5,840			8,548			—			—
Reinvested		1,296			—			—			—
Redeemed		(27,608	)		(97,089	)		—			—
Change in Class B Shares		(20,472	)		(88,541	)		—			—
Class C Shares:
Issued		10,495			2,110			—			—
Reinvested		723			—			—			—
Redeemed		(3,974	)		(1,877	)		—			—
Change in Class C Shares		7,244			233			—			—
Class I Shares:
Issued		—			—			1,309,527			1,318,081
Reinvested		—			—			187,589			—
Redeemed		—			—			(1,963,117	)		(2,249,632	)
Change in Class I Shares		—			—			(466,001	)		(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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
Investment Activities:
Operations:
Net investment income (loss)	$	46,543		$	61,975		$	146,409		$	153,770
Net realized gains (losses) from investments		168,211			(292,078	)		1,179,477			222,525
Change in unrealized appreciation/depreciation on investments		(580,771	)		543,769			(592,842	)		3,453,894
Change in net assets resulting from operations		(366,017	)		313,666			733,044			3,830,189
Dividends:
Net investment income:
Class A Shares		(176,658	)		(97,964	)		(27,990	)		(47,448	)
Class B Shares		(16,000	)		(10,236	)		—			—
Class C Shares		(1,236	)		(616	)		—			—
Class I Shares		—			—			(100,541	)		(115,714	)
Change in net assets resulting from shareholder dividends		(193,894	)		(108,816	)		(128,531	)		(163,162	)
Change in net assets resulting from capital transactions		(538,111	)		(981,210	)		(4,129,390	)		(1,252,262	)
Change in net assets		(1,098,022	)		(776,360	)		(3,524,877	)		2,414,765
Net Assets:
Beginning of period		6,182,168			6,958,528			32,431,296			30,016,531
End of period	$	5,084,146		$	6,182,168		$	28,906,419		$	32,431,296
Accumulated net investment income (loss)	$	44,984		$	176,079		$	13,545		$	—

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 year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	372,726		$	583,913		$	469,184		$	710,206
Dividends reinvested		169,153			97,142			27,155			47,084
Value of shares redeemed		(867,901	)		(1,265,995	)		(2,398,851	)		(2,905,337	)
Class A Shares capital transactions		(326,022	)		(584,940	)		(1,902,512	)		(2,148,047	)
Class B Shares:
Proceeds from shares issued		7,780			18,410			12,674			9,750
Dividends reinvested		15,932			10,191			—			—
Value of shares redeemed		(227,464	)		(421,250	)		(118,847	)		(270,952	)
Class B Shares capital transactions		(203,752	)		(392,649	)		(106,173	)		(261,202	)
Class C Shares:
Proceeds from shares issued		—			—			—			110
Dividends reinvested		1,236			616			—			—
Value of shares redeemed		(9,573	)		(4,237	)		(20,225	)		(850	)
Class C Shares capital transactions		(8,337	)		(3,621	)		(20,225	)		(740	)
Class I Shares:
Proceeds from shares issued		—			—			3,676,980			4,792,318
Dividends reinvested		—			—			90,296			104,270
Value of shares redeemed		—			—			(5,867,756	)		(3,738,861	)
Class I Shares capital transactions		—			—			(2,100,480	)		1,157,727
Change in net assets resulting from capital transactions	$	(538,111	)	$	(981,210	)	$	(4,129,390	)	$	(1,252,262	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		90,185			145,520			35,965			60,743
Reinvested		41,057			23,521			2,097			4,327
Redeemed		(207,456	)		(312,739	)		(187,123	)		(255,968	)
Change in Class A Shares		(76,214	)		(143,698	)		(149,061	)		(190,898	)
Class B Shares:
Issued		2,090			5,508			1,090			870
Reinvested		4,401			2,807			—			—
Redeemed		(61,267	)		(118,364	)		(9,645	)		(25,045	)
Change in Class B Shares		(54,776	)		(110,049	)		(8,555	)		(24,175	)
Class C Shares:
Reinvested		315			156			—			—
Redeemed		(2,374	)		(1,132	)		(1,887	)		(80	)
Change in Class C Shares		(2,059	)		(976	)		(1,887	)		(80	)
Class I Shares:
Issued		—			—			286,864			418,459
Reinvested		—			—			6,992			9,616
Redeemed		—			—			(462,572	)		(330,213	)
Change in Class I Shares		—			—			(168,716	)		97,862

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

HSBC INVESTOR GROWTH FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(a)		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 A SHARES
Year Ended October 31, 2007		$	14.86	—	(d)	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
Year Ended October 31, 2011			15.02	(0.07	)	1.64		1.57		—		—		—				16.59
CLASS B SHARES
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
Year Ended October 31, 2011			13.80	(0.18	)	1.51		1.33		—		—		—				15.13
CLASS C SHARES
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
Year Ended October 31, 2011			13.89	(0.18	)	1.52		1.34		—		—		—				15.23
CLASS I SHARES
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
Year Ended October 31, 2011			15.19	(0.04	)	1.68		1.64		—		—		—				16.83

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover(c)
CLASS A SHARES
Year Ended October 31, 2007	30.45	%(e)		$	30,858	1.11	%(e)	(0.03	)%(e)	1.22	%	57	%
Year Ended October 31, 2008	(38.23	)%(f)			17,180	1.20	%	(0.36	)%	1.22	%	158	%
Year Ended October 31, 2009	18.86	%(g)			15,896	1.20	%	(0.33	)%	1.31	%	66	%
Year Ended October 31, 2010	19.78	%(h)(i)			16,452	1.20	%	(0.54	)%(i)	1.23	%	89	%
Year Ended October 31, 2011	10.45	%(j)			15,349	1.18	%	(0.45	)%	1.18	%	56	%
CLASS B SHARES
Year Ended October 31, 2007	29.43	%(e)		$	1,630	1.86	%(e)	(0.78	)%(e)	1.98	%	57	%
Year Ended October 31, 2008	(38.62	)%(f)			2,839	1.95	%	(1.20	)%	1.96	%	158	%
Year Ended October 31, 2009	17.87	%(g)			2,059	1.95	%	(1.06	)%	2.06	%	66	%
Year Ended October 31, 2010	18.97	%(h)(i)			1,213	1.95	%	(1.28	)%(i)	1.98	%	89	%
Year Ended October 31, 2011	9.64	%(j)			962	1.93	%	(1.19	)%	1.93	%	56	%
CLASS C SHARES
Year Ended October 31, 2007	29.49	%(e)		$	98	1.86	%(e)	(0.79	)%(e)	1.96	%	57	%
Year Ended October 31, 2008	(38.63	)%(f)			72	1.95	%	(1.13	)%	1.97	%	158	%
Year Ended October 31, 2009	17.86	%(g)			120	1.95	%	(1.12	)%	2.05	%	66	%
Year Ended October 31, 2010	18.92	%(h)(i)			184	1.95	%	(1.30	)%(i)	1.99	%	89	%
Year Ended October 31, 2011	9.65	%(j)			251	1.94	%	(1.21	)%	1.94	%	56	%
CLASS I SHARES
Year Ended October 31, 2007	30.73	%(e)		$	30,295	0.87	%(e)	0.20	%(e)	0.96	%	57	%
Year Ended October 31, 2008	(38.07	)%(f)			38,868	0.95	%	(0.16	)%	0.97	%	158	%
Year Ended October 31, 2009	19.11	%(g)			39,400	0.95	%	(0.08	)%	1.06	%	66	%
Year Ended October 31, 2010	20.08	%(h)(i)			49,474	0.95	%	(0.30	)%(i)	0.99	%	89	%
Year Ended October 31, 2011	10.80	%(j)			57,222	0.94	%	(0.22	)%	0.94	%	56	%

*	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.
(a)	Calculated based on average shares outstanding.
(b)	Total return calculations do not include any sales or redemption charges.
(c)	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.
(d)	Represents less than $0.005 or $(0.005).
(e)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to 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.
(f)	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 0.19%, 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(g)	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 0.50%, 0.54%, 0.53% and 0.49% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(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 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.
(i)	During the year ended October 31, 2010, 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 the 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.
(j)	During the year ended October 31, 2011, the Portfolio, in which the Fund invests, received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.28%, 0.28%, 0.28% and 0.28% 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 INTERNATIONAL EQUITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities					Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)	Net Realized and Unrealized Gains (Losses) from 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, 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
Year Ended October 31, 2011			12.69	0.26	(0.87	)	(0.61	)	(2.19	)	—		(2.19	)			9.89

			Ratios/Supplementary Data
	Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover(b)
CLASS I SHARES
Year Ended October 31, 2007	25.41	%(c)(d)		$	385,717	0.87	%(c)	2.15	%(c)	0.89	%	26	%
Year Ended October 31, 2008	(51.92	)%			161,053	0.84	%	2.69	%	0.84	%	29	%
Year Ended October 31, 2009	27.90	%			180,242	0.97	%	2.27	%	0.97	%	58	%
Year Ended October 31, 2010	5.99	%(e)(f)			13,767	0.87	%	2.27	%(f)	0.90	%	63	%
Year Ended October 31, 2011	(5.91	)%			10,468	1.00	%	1.75	%	1.89	%	178	%(g)

*	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.
(a)	Total return calculations do not include any sales or redemption charges.
(b)	Portfolio Turnover rate is calculated on the basis of the Portfolio in which the Fund invests all of its investable assets.
(c)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to 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% for Class I Shares.
(d)	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.
(e)	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 0.32% for Class I Shares.
(f)	During the year ended October 31, 2010, 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 the 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.
(g)	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 OPPORTUNITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(a)		Net Realized and Unrealized Gains (Losses) from Investments		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, 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
Year Ended October 31, 2011			9.67	(0.07	)	1.19		1.12		(0.16	)	(0.16	)			10.63
CLASS B SHARES
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
Year Ended October 31, 2011			8.09	(0.12	)	0.99		0.87		(0.16	)	(0.16	)			8.80
CLASS C SHARES
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
Year Ended October 31, 2011			8.25	(0.13	)	1.02		0.89		(0.16	)	(0.16	)			8.98

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)	Portfolio Turnover(c)
CLASS A SHARES
Year Ended October 31, 2007	30.28	%(d)		$	15,057	1.52	%(d)	(1.13	)%(d)	1.77%	69%
Year Ended October 31, 2008	(35.84	)%			9,600	1.55	%	(1.13	)%	1.82%	80%
Year Ended October 31, 2009	14.85	%			9,687	1.55	%	(1.02	)%	2.30%	65%
Year Ended October 31, 2010	27.91	%(e)(f)			11,282	1.55	%	(1.00	)%(f)	2.07%	68%
Year Ended October 31, 2011	11.59	%(g)			11,145	1.55	%	(0.62	)%	1.85%	69%
CLASS B SHARES
Year Ended October 31, 2007	29.30	%(d)		$	4,928	2.26	%(d)	(1.91	)%(d)	2.52%	69%
Year Ended October 31, 2008	(36.30	)%			1,578	2.29	%	(1.88	)%	2.58%	80%
Year Ended October 31, 2009	13.92	%			1,082	2.30	%	(1.77	)%	3.10%	65%
Year Ended October 31, 2010	27.00	%(e)(f)			658	2.30	%	(1.78	)%(f)	2.86%	68%
Year Ended October 31, 2011	10.75	%(g)			536	2.30	%	(1.36	)%	2.64%	69%
CLASS C SHARES
Year Ended October 31, 2007	29.32	%(d)		$	334	2.27	%(d)	(1.91	)%(d)	2.50%	69%
Year Ended October 31, 2008	(36.27	)%			189	2.30	%	(1.88	)%	2.58%	80%
Year Ended October 31, 2009	13.83	%			267	2.30	%	(1.78	)%	3.08%	65%
Year Ended October 31, 2010	27.12	%(e)(f)			341	2.30	%	(1.75	)%(f)	2.86%	68%
Year Ended October 31, 2011	10.79	%(g)			437	2.30	%	(1.38	)%	2.64%	69%

*	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.
(a)	Calculated based on average shares outstanding.
(b)	Total return calculations do not include any sales or redemption charges.
(c)	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.
(d)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to 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.
(e)	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.
(f)	During the year ended October 31, 2010, 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 the Notes to Financial Statements). 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.
(g)	During the year ended October 31, 2011, the Portfolio, in which the Fund invests, received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.10%, 0.10% and 0.10% 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 OPPORTUNITY FUND (ADVISOR)

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investments		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, 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
Year Ended October 31, 2011			12.77	(0.01	)	1.57		1.56		(0.31	)	(0.31	)			14.02

			Ratios/Supplementary Data
	Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover(b)
CLASS I SHARES
Year Ended October 31, 2007	29.42	%(c)		$	176,593	0.96	%(c)	(0.60	)%(c)	1.03	%	69	%
Year Ended October 31, 2008	(35.39	)%			97,841	0.97	%	(0.55	)%	0.97	%	80	%
Year Ended October 31, 2009	15.47	%			100,285	1.02	%	(0.50	)%	1.02	%	65	%
Year Ended October 31, 2010	28.60	%(d)(e)			117,064	1.01	%	(0.46	)%(e)	1.01	%	68	%
Year Ended October 31, 2011	12.25	%(f)			122,017	1.01	%	(0.07	)%	1.01	%	69	%

*	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.
(a)	Total return calculations do not include any sales or redemption charges.
(b)	Portfolio Turnover rate is calculated on the basis of the Portfolio in which the Fund invests all of its investable assets.
(c)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to the Fund related to past marketing arrangements. The corresponding impact to the net expense ratio, net income ratio and the total returns were 0.07% for the Class I Shares.
(d)	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.
(e)	During the year ended October 31, 2010, 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 the Notes to Financial Statements). The corresponding impact to the net income ratio and the total return was 0.01% for the Class I Shares.
(f)	During the year ended October 31, 2011, the Portfolio, in which the Fund invests, received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.10% for Class I Shares.

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

HSBC INVESTOR OVERSEAS EQUITY FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(a)		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 A SHARES
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
Year Ended October 31, 2011			4.24	0.04		(0.32	)	(0.28	)	(0.14	)	—		(0.14	)			3.82
CLASS B SHARES
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
Year Ended October 31, 2011			3.71	—	(g)	(0.27	)	(0.27	)	(0.11	)	—		(0.11	)			3.33
CLASS C SHARES
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			7.61	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
Year Ended October 31, 2011			4.02	—	(g)	(0.30	)	(0.30	)	(0.10	)	—		(0.10	)			3.62

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover(c)
CLASS A SHARES
Year Ended October 31, 2007	24.19	%(d)		$	16,078	1.62	%(d)	1.15	%(d)	1.64	%	26	%
Year Ended October 31, 2008	(52.63	)%			6,645	1.70	%	1.75	%	1.81	%	29	%
Year Ended October 31, 2009	23.99	%			5,939	1.70	%	1.56	%	2.52	%	58	%
Year Ended October 31, 2010	5.17	%(e)(f)			5,541	1.70	%	1.10	%(f)	2.71	%	63	%
Year Ended October 31, 2011	(6.90	)%			4,698	1.70	%	0.86	%	3.08	%	178	%(h)
CLASS B SHARES
Year Ended October 31, 2007	23.26	%(d)		$	3,698	2.37	%(d)	0.59	%(d)	2.40	%	26	%
Year Ended October 31, 2008	(52.97	)%			1,249	2.45	%	1.05	%	2.56	%	29	%
Year Ended October 31, 2009	23.03	%			962	2.45	%	0.79	%	3.28	%	58	%
Year Ended October 31, 2010	4.52	%(e)(f)			585	2.45	%	0.28	%(f)	3.44	%	63	%
Year Ended October 31, 2011	(7.63	)%			343	2.45	%	0.10	%	3.81	%	178	%(h)
CLASS C SHARES
Year Ended October 31, 2007	23.39	%(d)		$	147	2.30	%(d)	0.59	%(d)	2.32	%	26
Year Ended October 31, 2008	(52.96	)%			58	2.45	%	1.12	%	2.57	%	29	%
Year Ended October 31, 2009	23.01	%			58	2.45	%	0.92	%	3.28	%	58	%
Year Ended October 31, 2010	4.43	%(e)(f)			56	2.45	%	0.33	%(f)	3.46	%	63	%
Year Ended October 31, 2011	(7.56	)%			43	2.45	%	0.12	%	3.83	%	178	%(h)

*	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.
(a)	Calculated based on average shares outstanding.
(b)	Total return calculations do not include any sales or redemption charges.
(c)	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.
(d)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to 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.
(e)	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.
(f)	During the year ended October 31, 2010, 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). 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.
(g)	Represents less than $0.005 or $(0.005).
(h)	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.

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

HSBC INVESTOR VALUE FUND

Financial Highlights

Selected data for a share outstanding throughout the periods indicated.*

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(a)		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 A SHARES
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
Year Ended October 31, 2011			11.89	0.04		0.15		0.19		(0.03	)	—		(0.03	)			12.05
CLASS B SHARES
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
Year Ended October 31, 2011			11.32	(0.05	)	0.13		0.08		—		—		—				11.40
CLASS C SHARES
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
Year Ended October 31, 2011			11.39	(0.05	)	0.14		0.09		—		—		—				11.48
CLASS I SHARES
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
Year Ended October 31, 2011			11.87	0.06		0.16		0.22		(0.06	)	—		(0.06	)			12.03

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratios of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover(c)
CLASS A SHARES
Year Ended October 31, 2007	9.77	%(d)		$	27,225	1.11	%(d)	0.84	%(d)	1.25	%	19	%
Year Ended October 31, 2008	(40.46	)%(e)			14,881	1.20	%	0.99	%	1.23	%	25	%
Year Ended October 31, 2009	19.59	%(f)			12,742	1.20	%	0.91	%	1.40	%	20	%
Year Ended October 31, 2010	13.05	%(g)(h)			12,085	1.20	%	0.36	%(h)	1.34	%	26	%
Year Ended October 31, 2011	1.58	%(i)			10,445	1.20	%	0.30	%	1.29	%	24	%
CLASS B SHARES
Year Ended October 31, 2007	8.92	%(d)		$	1,772	1.87	%(d)	0.10	%(d)	2.00	%	19	%
Year Ended October 31, 2008	(40.89	)%(e)			717	1.95	%	0.24	%	1.98	%	25	%
Year Ended October 31, 2009	18.63	%(f)			466	1.95	%	0.23	%	2.14	%	20	%
Year Ended October 31, 2010	12.30	%(g)(h)			250	1.95	%	(0.34	)%(h)	2.08	%	26	%
Year Ended October 31, 2011	0.71	%(i)			154	1.95	%	(0.43	)%	2.05	%	24	%
CLASS C SHARES
Year Ended October 31, 2007	8.95	%(d)		$	126	1.87	%(d)	0.11	%(d)	1.99	%	19	%
Year Ended October 31, 2008	(40.89	)%(e)			66	1.95	%	0.24	%	1.98	%	25	%
Year Ended October 31, 2009	18.60	%(f)			71	1.95	%	0.12	%	2.14	%	20	%
Year Ended October 31, 2010	12.32	%(g)(h)			79	1.95	%	(0.40	)%(h)	2.10	%	26	%
Year Ended October 31, 2011	0.79	%(i)			58	1.95	%	(0.44	)%	2.05	%	24	%
CLASS I SHARES
Year Ended October 31, 2007	10.04	%(d)		$	28,692	0.87	%(d)	1.07	%(d)	0.99	%	19	%
Year Ended October 31, 2008	(40.29	)%(e)			17,779	0.95	%	1.24	%	0.98	%	25	%
Year Ended October 31, 2009	19.82	%(f)			16,737	0.95	%	1.16	%	1.15	%	20	%
Year Ended October 31, 2010	13.35	%(g)(h)			20,018	0.95	%	0.60	%(h)	1.10	%	26	%
Year Ended October 31, 2011	1.83	%(i)			18,249	0.95	%	0.55	%	1.05	%	24	%

*	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the HSBC Investor Value Portfolio.
(a)	Calculated based on average shares outstanding.
(b)	Total return calculations do not include any sales or redemption charges.
(c)	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.
(d)	During the year ended October 31, 2007, the Investment Adviser reimbursed amounts to 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.
(e)	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.
(f)	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.
(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 0.06%, 0.06%, 0.06% and 0.06% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.
(h)	During the year ended October 31, 2010, 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 the Notes to Financial Statements). 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 Shares and Class I Shares, respectively.
(i)	During the year ended October 31, 2011, the Portfolio, in which the Fund invests, received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.02%, 0.02%, 0.02% and 0.02% for Class A Shares, Class B Shares, Class C Shares and Class I Shares, respectively.

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

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011

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 October 31, 2011, the Trust is comprised of 16 separate operational funds and the Advisor Trust is comprised of 2 separate operational funds, each a series of the HSBC Investor Family of Funds, which also includes the HSBC Investor Portfolios (the “Portfolio Trust”) (collectively the “Trusts”). The accompanying financial statements are presented for the following 6 funds (individually a “Fund”, collectively the “Funds”) of the Trust and Advisor Trust:

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. Financial statements for all other funds of the Trusts are published separately.

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

Fund	Respective Portfolio	Proportionate Interest on October 31, 2011(%)
Growth Fund	HSBC Investor Growth Portfolio	70.7
International Equity Fund	HSBC Investor International Equity Portfolio	27.7
Opportunity Fund	HSBC Investor Opportunity Portfolio	8.6
Opportunity Fund (Advisor)	HSBC Investor Opportunity Portfolio	86.4
Overseas Equity Fund	HSBC Investor International Equity Portfolio	13.7
Value Fund	HSBC Investor Value Portfolio	57.5

          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 Portfolio Trust. The Portfolios operate as master funds in master-feeder arrangements and also may 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 October 31, 2011 (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.
	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 investments into the Portfolios on a trade date basis. The Funds record daily their proportionate 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 series within the Trusts 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 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.

HSBC INVESTOR FAMILY OF FUNDS 35

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

	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, prepayment speeds, credit risk, etc.)
		•	Level 3: significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)
	The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
	The Funds record their investments in their respective Portfolios at fair value, which is typically categorized as Level 2 in the fair value hierarchy. The underlying securities of the Portfolios are recorded at fair value, as more fully discussed in the Notes to Financial Statements of the Portfolios included in this report.
	For the year ended October 31, 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 October 31, 2011 in valuing the Funds’ investments based upon three levels defined above:

	LEVEL 1($)		LEVEL 2($)		LEVEL 3($)		Total($)
Growth Fund
Investment Securities:
Affiliated Porfolios(a)		—		74,428,486		—		74,428,486
Total Investment Securities		—		74,428,486		—		74,428,486
International Equity Fund
Investment Securities:
Affiliated Porfolios(a)		—		10,101,015		—		10,101,015
Total Investment Securities		—		10,101,015		—		10,101,015
Opportunity Fund
Investment Securities:
Affiliated Porfolios(a)		—		12,166,754		—		12,166,754
Total Investment Securities		—		12,166,754		—		12,166,754
Opportunity Fund (Advisor)
Investment Securities:
Affiliated Porfolio(a)		—		122,129,683		—		122,129,683
Total Investment Securities		—		122,129,683		—		122,129,683

36 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

	LEVEL 1($)		LEVEL 2($)		LEVEL 3($)		Total($)
Overseas Equity Fund
Investment Securities:
Affiliated Porfolios(a)		—		4,997,275		—		4,997,275
Total Investment Securities		—		4,997,275		—		4,997,275
Value Fund
Investment Securities:
Affiliated Porfolios(a)		—		28,953,783		—		28,953,783
Total Investment Securities		—		28,953,783		—		28,953,783

(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 Level 1, 2 or 3 from the valuation inputs used on October 31, 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 receives from the Funds of the Trusts 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 Trusts. The fee is allocated to each series based upon its proportionate share of the aggregate net assets of the Trusts. 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 subject to certain reductions associated with services provided to new funds. 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 fee 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 by the Trusts’ Board of Trustees (the “Board”) and HSBC. For these services, Citi is entitled to a fee, payable by HSBC, at an annual

HSBC INVESTOR FAMILY OF FUNDS 37

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

rate equivalent to the fee rates set forth above subject to certain reductions associated with services provided to new funds, 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 Trusts paid Citi $274,649 for the year ended October 31, 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 Trust as Distributor (the “Distributor”). The Trust has adopted a non-compensatory Distribution Plan and Agreement (the “Distribution Plan”) pursuant to Rule 12b-1 of the Act. The Distribution Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the Funds, respectively. For the year ended October 31, 2011, Foreside, as Distributor, also received $860,347, $710,976 and $88,648 in commissions from sales of the Trusts, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $60, $12 and $— were reallocated to HSBC-affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively.

Shareholder Servicing:

          The Trust has adopted a Shareholder Services Plan, which provides for payments to shareholder servicing agents (which 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, reductions associated with services to new funds and reimbursement of certain expenses. As fund accountant, Citi receives an annual fee per series and share class, subject to certain minimums and reimbursement of certain expenses. Citi receives additional fees paid by the Trust and the Advisor 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, 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.

38 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

Fee Reductions:

          The Investment Adviser has agreed to contractually limit, through March 1, 2012, the total expenses, exclusive of interest, taxes, brokerage commissions and extraordinary expenses, of certain Funds. Each affected Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows:

Fund	Class	Current Contractual Expense Limitation(%)
Growth Fund	A	1.20
Growth Fund	B	1.95
Growth Fund	C	1.95
Growth Fund	I	0.95
Opportunity Fund	A	1.65
Opportunity Fund	B	2.40
Opportunity Fund	C	2.40
Opportunity Fund (Advisor)	I	1.10
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 year ended October 31, 2011, the Investment Adviser did not recapture any of its prior contractual waivers or reimbursements. As of October 31, 2011, the repayments that may potentially be made by the Funds are as follows:

Fund	2014($)*	2013($)*	2012($)*
Growth Fund	—	22,001	56,048
Opportunity Fund	27,228	49,041	65,792
Overseas Equity Fund	71,604	53,391	45,169
Value Fund	31,117	45,129	55,991

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

          HSBC has agreed to voluntarily limit 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:

Fund	Class	Current Voluntarily Expense Limitation(%)
International Equity Fund	I	1.00

          The Administrator and Citi may voluntarily waive/reimburse fees to help support the expense limits of the Funds. In addition, HSBC, in its role as Investment Adviser and Administrator, 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.

HSBC INVESTOR FAMILY OF FUNDS 39

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

5.	Investment Transactions:
		Contributions and withdrawals of the respective Portfolios for the year ended October 31, 2011 totaled:

Fund	Contributions($)		Withdrawals($)
Growth Fund		9,616,785		9,780,253
International Equity Fund		2,035,084		4,096,787
Opportunity Fund		1,985,565		3,586,001
Opportunity Fund (Advisor)		10,964,459		21,579,325
Overseas Equity Fund		229,768		1,001,551
Value Fund		2,657,241		6,969,142

6.	Federal Income Tax Information:
		The tax character of dividends paid by the Funds for the year ended October 31, 2011 was as follows:

	Dividends paid from
	Ordinary Income		Net Long Term Capital Gains		Total Dividends Paid*
Growth Fund	$	—	$	—	$	—
International Equity Fund		2,314,948		—		2,314,948
Opportunity Fund		—		201,743		201,743
Opportunity Fund (Advisor)		—		2,935,113		2,935,113
Overseas Equity Fund		193,894		—		193,894
Value Fund		128,531		—		128,531

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
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 October 31, 2011, the components of accumulated earnings/(deficit) on a tax basis for the Funds were as follows:

	Undistributed Ordinary Income		Undistributed Tax Exempt Income		Undistributed Long Term Capital Gains		Accumulated Earnings		Dividends Payable		Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)(1)			Total Accumulated Earnings/ (Deficit)
Growth Fund	$	—	$	—	$	—	$	—	$	—	$	(3,269,773	)	$	13,095,032		$	9,825,259
International Equity Fund		135,780		—		—		135,780		—		(70,926,099	)		(905,552	)		(71,695,871	)
Opportunity Fund		122,612		—		1,645,882		1,768,494		—		—			899,709			2,668,203
Opportunity Fund (Advisor)		2,322,165		—		16,364,138		18,686,303		—		—			9,543,895			28,230,198
Overseas Equity Fund		44,945		—		—		44,945		—		(1,007,033	)		(363,892	)		(1,325,980	)
Value Fund		13,545		—		—		13,545		—		(4,342,222	)		234,435			(4,094,242	)

(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.

40 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Notes to Financial Statements—as of October 31, 2011 (continued)

          As of October 31, 2011, 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		3,269,773		2017
International Equity Fund		58,856,263		2017
International Equity Fund		12,069,836		2018
Overseas Fund		1,007,033		2017
Value Fund		3,027,465		2016
Value Fund		1,314,757		2017

For the year October 31, 2011, the following Funds utilized capital loss carryforwards to offset capital gains realized:

Fund	Amount($)
Growth Fund		6,478,476
International Equity Fund		527,713
Overseas Fund		176,068
Value Fund		1,134,094

	The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) was signed into law on December 22, 2010. The RIC Modernization Act makes changes to several tax rules impacting the Funds. The provisions of the RIC Modernization Act will generally be effective for each Fund’s tax year ending October 31, 2012. The RIC Modernization Act allows for capital losses originating in taxable years beginning after December 22, 2010 (“post-enactment capital losses”) to be carried forward indefinitely. However, the RIC Modernization Act requires any future capital gains to be first offset by post-enactment capital losses before using capital losses incurred in taxable years beginning prior to the effective date of the RIC Modernization Act. As a result of this ordering rule, capital loss carryforwards incurred in taxable years beginning prior to the effective date of the RIC Modernization Act have an increased likelihood to expire unused. Furthermore, post-enactment capital losses will retain their character as either short-term or long-term capital losses rather than being considered all short-term capital losses as under previous law.
	The RIC Modernization Act also contains provisions which are intended to reduce the circumstances under which a regulated investment company would distribute amounts in excess of such income and gains or be required to file amended tax reporting information to its shareholders and the Internal Revenue Service. Information regarding any further effect of the RIC Modernization Act on the Funds, 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.
8.	Subsequent Event:
	The Boards of Trustees of HSBC Investor Funds and HSBC Advisor Funds Trust approved Plans of Liquidation to close the HSBC Investor Value Fund, HSBC Investor International Equity Fund, and HSBC Investor Overseas Equity Fund and provide for their orderly liquidation on or about December 31, 2011.

HSBC INVESTOR FAMILY OF FUNDS 41

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
HSBC Investor Funds
HSBC Advisor Funds Trust:

          We have audited the accompanying statements of assets and liabilities of HSBC Investor Growth Fund, HSBC Investor International Equity Fund, HSBC Investor Opportunity Fund, HSBC Investor Opportunity Fund (Advisor), HSBC Investor Overseas Equity Fund and HSBC Investor Value Fund (the Funds), and the related statements of operations for the year then ended, the statements of changes in net assets for each year in the two-year period then ended, and the financial highlights for each year in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

          We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the respective custodian or broker or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

          In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each year in the two-year period then ended, and the financial highlights for each year in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Columbus, Ohio
December 22, 2011

42 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Other Federal Income Tax Information (Unaudited):

          For the year ended October 31, 2011, the following percentages of the total ordinary income dividends paid by the Funds qualify for the corporate dividends received deduction available to corporate shareholders:

Fund	Dividends Received Deduction
Value Fund	100.00	%

          The International Equity Fund and the Overseas Equity Fund intend to elect to pass through to shareholders the income tax credit for taxes paid to foreign countries. Foreign source income and foreign tax expense per outstanding share on October 31, 2011 are as follows:

Fund	Foreign Source Income		Foreign Tax Expense
International Equity Fund		0.31		0.02
Overseas Equity Fund		0.12		0.02

          The pass-through of the foreign tax credit will only affect those persons who are shareholders on the dividend record date in December 2011. These shareholders will receive more detailed information along with their 2011 Form 1099-DIV.

          For the year ended October 31, 2011, dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2011 Form 1099-DIV:

Fund	Qualified Dividend Income
International Equity Fund	100.00	%
Overseas Fund	78.77	%
Value Fund	100.00	%

HSBC INVESTOR FAMILY OF FUNDS 43

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of October 31, 2011

          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 May 1, 2011 through October 31, 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 5/1/11			Ending Account Value 10/31/11			Expenses Paid During Period* 5/1/11 - 10/31/11			Annualized Expense Ratio During Period 5/1/11 - 10/31/11
Growth Fund	Class A Shares		$	1,000.00		$	927.30		$	5.73		1.18	%
	Class B Shares			1,000.00			923.70			9.36		1.93	%
	Class C Shares			1,000.00			924.20			9.36		1.93	%
	Class I Shares			1,000.00			928.80			4.52		0.93	%
International Equity Fund	Class I Shares			1,000.00			838.80			4.63		1.00	%
Opportunity Fund	Class A Shares			1,000.00			858.00			7.26		1.55	%
	Class B Shares			1,000.00			854.40			10.75		2.30	%
	Class C Shares			1,000.00			854.40			10.75		2.30	%
Opportunity Fund (I Shares)	Class I Shares			1,000.00			860.70			4.69		1.00	%
Overseas Equity Fund	Class A Shares			1,000.00			830.40			7.84		1.70	%
	Class B Shares			1,000.00			826.30			11.28		2.45	%
	Class C Shares			1,000.00			826.50			11.28		2.45	%
Value Fund	Class A Shares			1,000.00			872.00			5.66		1.20	%
	Class B Shares			1,000.00			868.20			9.18		1.95	%
	Class C Shares			1,000.00			868.40			9.18		1.95	%
	Class I Shares			1,000.00			873.00			4.48		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).

44 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of October 31, 2011 (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 5/1/11			Ending Account Value 10/31/11			Expenses Paid During Period* 5/1/11 - 10/31/11			Annualized Expense Ratio During Period 5/1/11 - 10/31/11
Growth Fund	Class A Shares		$	1,000.00		$	1,019.26		$	6.01	1.18	%
	Class B Shares			1,000.00			1,015.48			9.80	1.93	%
	Class C Shares			1,000.00			1,015.48			9.80	1.93	%
	Class I Shares			1,000.00			1,020.52			4.74	0.93	%
International Equity Fund	Class I Shares			1,000.00			1,020.16			5.09	1.00	%
Opportunity Fund	Class A Shares			1,000.00			1,017.39			7.88	1.55	%
	Class B Shares			1,000.00			1,013.61			11.67	2.30	%
	Class C Shares			1,000.00			1,013.61			11.67	2.30	%
Opportunity Fund (I Shares)	Class I Shares			1,000.00			1,020.16			5.09	1.00	%
Overseas Equity Fund	Class A Shares			1,000.00			1,016.64			8.64	1.70	%
	Class B Shares			1,000.00			1,012.85			12.43	2.45	%
	Class C Shares			1,000.00			1,012.85			12.43	2.45	%
Value Fund	Class A Shares			1,000.00			1,019.16			6.11	1.20	%
	Class B Shares			1,000.00			1,015.38			9.91	1.95	%
	Class C Shares			1,000.00			1,015.38			9.91	1.95	%
	Class I Shares			1,000.00			1,020.42			4.84	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 45

HSBC INVESTOR FAMILY OF FUNDS

Additional Information—(Unaudited)

A Special Meeting of Shareholders

          A special 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	%

46 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 47

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011

Common Stocks—96.6%
	Shares		Value($)
Aerospace & Defense – 1.8%
United Technologies Corp.		24,600		1,918,308
Air Freight & Logistics – 1.0%
C.H. Robinson Worldwide, Inc.		15,650		1,086,579
Auto Components – 1.4%
BorgWarner, Inc. (a)		18,800		1,438,012
Biotechnology – 2.1%
Biogen Idec, Inc. (a)		7,800		907,608
Celgene Corp. (a)		20,500		1,329,015
				2,236,623
Capital Markets – 2.3%
Franklin Resources, Inc.		14,600		1,556,798
TD Ameritrade Holding Corp.		49,800		835,644
				2,392,442
Chemicals – 3.4%
Ecolab, Inc.		25,600		1,378,304
Monsanto Co.		30,200		2,197,050
				3,575,354
Communications Equipment – 3.1%
QUALCOMM, Inc.		63,400		3,271,440
Computers & Peripherals – 8.0%
Apple, Inc. (a)		12,195		4,936,292
EMC Corp. (a)		108,900		2,669,139
NetApp, Inc. (a)		21,300		872,448
				8,477,879
Construction & Engineering – 1.5%
Fluor Corp.		27,300		1,552,005
Diversified Financial Services – 3.1%
CME Group, Inc.		3,600		992,016
IntercontinentalExchange, Inc. (a)		10,500		1,363,740
JPMorgan Chase & Co.		26,700		928,092
				3,283,848
Energy Equipment & Services – 4.9%
FMC Technologies, Inc. (a)		50,500		2,263,410
Schlumberger Ltd.		39,400		2,894,718
				5,158,128
Food & Staples Retailing – 1.1%
Costco Wholesale Corp.		14,500		1,207,125
Food Products – 1.3%
General Mills, Inc.		24,600		947,838
Green Mountain Coffee Roasters, Inc. (a)		5,800		377,116
				1,324,954
Health Care Equipment & Supplies – 3.4%
Edwards Lifesciences Corp. (a)		18,900		1,425,438
Intuitive Surgical, Inc. (a)		2,500		1,084,650
Varian Medical Systems, Inc. (a)		17,700		1,039,344
				3,549,432

Common Stocks, continued
	Shares		Value($)
Health Care Providers & Services – 3.9%
Express Scripts, Inc. (a)		26,050		1,191,266
UnitedHealth Group, Inc.		61,700		2,960,983
				4,152,249
Health Care Technology – 0.8%
Cerner Corp. (a)		14,000		888,020
Hotels, Restaurants & Leisure – 5.2%
Ctrip.com International Ltd. ADR (a)		26,600		927,276
Las Vegas Sands Corp. (a)		44,300		2,079,885
Starbucks Corp.		33,500		1,418,390
Yum! Brands, Inc.		19,300		1,033,901
				5,459,452
Internet & Catalog Retail – 4.5%
Amazon.com, Inc. (a)		11,850		2,530,094
Priceline.com, Inc. (a)		4,360		2,213,659
				4,743,753
Internet Software & Services – 6.1%
Baidu, Inc. ADR (a)		14,925		2,092,187
Google, Inc., Class A (a)		5,530		3,277,299
VeriSign, Inc.		34,400		1,103,896
				6,473,382
IT Services – 5.9%
Cognizant Technology Solutions Corp. (a)		40,900		2,975,475
Visa, Inc., Class A		34,400		3,208,144
				6,183,619
Machinery – 5.6%
Danaher Corp.		65,400		3,162,090
Deere & Co.		21,800		1,654,620
Illinois Tool Works, Inc.		21,900		1,064,997
				5,881,707
Metals & Mining – 0.9%
Cliffs Natural Resources, Inc.		14,000		955,080
Oil, Gas & Consumable Fuels – 5.3%
Concho Resources, Inc. (a)		20,500		1,941,760
Occidental Petroleum Corp.		22,700		2,109,738
Peabody Energy Corp.		22,800		988,836
Range Resources Corp.		8,600		592,024
				5,632,358
Personal Products – 1.0%
The Estee Lauder Cos., Inc., Class A		10,800		1,063,260
Pharmaceuticals – 2.2%
Perrigo Co.		10,200		920,856
Shire plc ADR		14,700		1,386,210
				2,307,066
Road & Rail – 3.4%
Union Pacific Corp.		35,500		3,534,735
Semiconductors & Semiconductor Equipment – 0.7%
Altera Corp.		18,800		712,896

48 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011 (continued)

Common Stocks, continued
	Shares		Value($)
Software – 7.1%
Citrix Systems, Inc. (a)		22,400		1,631,392
Intuit, Inc.		22,200		1,191,474
Oracle Corp.		82,800		2,713,356
Salesforce.com, Inc. (a)		14,300		1,904,331
				7,440,553
Specialty Retail – 2.2%
Abercrombie & Fitch Co., Class A		17,100		1,272,240
O’Reilly Automotive, Inc. (a)		13,600		1,034,280
				2,306,520
Textiles, Apparel & Luxury Goods – 1.5%
Ralph Lauren Corp.		10,000		1,587,900
Wireless Telecommunication Services – 1.9%
American Tower Corp., Class A (a)		35,500		1,956,050
TOTAL COMMON STOCKS (COST $81,911,442)				101,750,729
Investment Company—1.2%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)		1,233,908		1,233,908
TOTAL INVESTMENT COMPANY (COST $1,233,908)				1,233,908
TOTAL INVESTMENT SECURITIES (COST $83,145,350) — 97.8%				102,984,637

Percentages indicated are based on net assets of $105,288,887.
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on October 31, 2011.

ADR — American Depositary Receipt

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 49

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011

Common Stocks—99.4%
	Shares		Value($)
Australia – 4.0%
Coca-Cola Amatil Ltd.		38,743		500,031
GPT Group		84,034		277,284
Leighton Holdings Ltd.		17,989		408,584
Sonic Healthcare Ltd.		24,041		277,749
				1,463,648
Belgium – 1.9%
Anheuser-Busch InBev NV		12,246		679,022
Brazil – 1.3%
Companhia Energetica de Sao Paulo, Preferred B Shares		11,500		199,583
PDG Realty SA		65,000		287,038
				486,621
Canada – 1.6%
Yamana Gold, Inc.		39,900		597,303
China – 1.1%
Changsha Zoomlion Heavy Industry Science & Technology Development Co. Ltd., Class H		171,820		248,592
Minth Group Ltd.		148,000		153,564
				402,156
Finland – 1.2%
Fortum Oyj		18,278		444,792
France – 5.2%
Alstom SA		9,180		341,797
Carrefour SA		7,729		204,466
Compagnie Generale des Establissements Michelin, B Shares		4,000		289,601
Safran SA		11,440		373,533
Total SA		7,200		375,624
Vinci SA		6,359		311,792
				1,896,813
Germany – 7.3%
Deutsche Post AG		29,737		451,004
E.ON AG		14,971		360,068
Fresenius SE & Co. KGaA		6,047		593,665
Henkel AG & Co. KGaA		7,985		389,852
SAP AG		9,050		547,159
Volkswagen AG, Preferred		1,800		313,426
				2,656,082
Hong Kong – 2.6%
Guangdong Investment Ltd.		494,000		297,389
Huabao International Holdings Ltd.		314,900		200,048
New World Development Co. Ltd.		188,000		198,054
The Wharf Holdings Ltd.		45,300		240,968
				936,459
Indonesia – 1.6%
PT Bank Negara Indonesia (Persero) Tbk		611,000		273,905
PT Bumi Resources Tbk		1,154,000		301,507
				575,412

Common Stocks, continued
	Shares		Value($)
Ireland (Republic of) – 0.9%
Accenture plc, Class A		5,300		319,378
Israel – 2.3%
Israel Chemicals Ltd.		27,683		328,708
Teva Pharmaceutical Industries Ltd. ADR		12,900		526,965
				855,673
Italy – 1.9%
Intesa Sanpaolo SpA		184,064		324,828
Telecom Italia SpA		290,852		361,851
				686,679
Japan – 17.6%
Asahi Kasei Corp.		67,000		397,434
Bridgestone Corp.		16,000		375,249
Canon, Inc.		10,100		458,635
East Japan Railway Co.		10,100		612,503
Hitachi Ltd.		74,000		396,615
Honda Motor Co. Ltd.		21,200		634,122
JX Holdings, Inc.		83,300		485,337
Mitsui & Co. Ltd.		32,800		478,823
Nippon Telegraph & Telephone Corp.		12,600		646,493
ORIX Corp.		3,790		330,858
Sumitomo Corp.		38,100		471,842
Sumitomo Realty & Development Co. Ltd.		17,500		362,818
The Bank of Yokohama Ltd.		99,000		453,379
The Kansai Electric Power Co., Inc.		21,500		317,237
				6,421,345
Netherlands – 2.2%
ING Groep NV (a)		59,642		514,101
Koninklijke Ahold NV		22,647		289,307
				803,408
Norway – 3.7%
DnB NOR ASA		41,982		485,832
Telenor ASA		38,489		685,915
Yara International ASA		4,070		192,558
				1,364,305
Poland – 0.7%
PGE SA		39,231		241,589
Russian Federation – 0.6%
Gazprom OAO ADR		18,500		214,459
Singapore – 2.4%
DBS Group Holdings Ltd.		40,000		390,804
Keppel Corp. Ltd.		66,200		495,700
				886,504
South Korea – 1.8%
DGB Financial Group, Inc. (a)		24,450		307,971
Hyundai Mobis		1,190		340,783
				648,754
Sweden – 2.7%
Swedbank AB, A Shares		35,752		500,726
Telefonaktiebolaget LM Ericsson ADR		45,200		470,532
				971,258

50 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011 (continued)

Common Stocks, continued

	Shares		Value($)
Switzerland – 5.8%
Nestle SA		10,182		589,105
Novartis AG		12,906		727,312
Swiss Re Ltd.		9,259		505,700
Syngenta AG, Registered		988		301,167
				2,123,284
Taiwan – 0.7%
Asustek Computer, Inc.		36,000		250,379
Thailand – 1.3%
Bangkok Bank Public Co. Ltd., Foreign Registered		93,000		471,599
Turkey – 0.8%
Turk Telekomunikasyon AS		65,644		278,014
United Kingdom – 26.3%
Anglo American plc		10,395		381,036
Aviva plc		65,110		355,166
Barclays plc		125,831		390,018
BG Group plc		19,152		415,238
British American Tobacco plc		5,944		272,499
British Sky Broadcasting Group plc		25,041		282,313
GlaxoSmithKline plc ADR		16,400		734,556
Imperial Tobacco Group plc		14,448		526,228
Lloyds Banking Group plc (a)		563,634		291,430
National Grid plc		44,961		446,946
Pearson plc		28,008		514,464
Prudential plc		53,392		551,420
Reed Elsevier plc		66,081		565,634
Smith & Nephew plc		57,221		523,684
Tesco plc		77,022		496,528
Tullow Oil plc		39,656		890,872
Unilever plc		16,770		562,060
Vedanta Resources plc		13,629		278,146
Vodafone Group plc		247,270		686,502
Xstrata plc		24,951		415,544
				9,580,284
TOTAL COMMON STOCKS (COST $38,920,853)				36,255,220
TOTAL INVESTMENT SECURITIES (COST $38,920,853) — 99.4%				36,255,220

Percentages indicated are based on net assets of $36,344,306.

(a) Represents non-income producing security.

ADR — American Depositary Receipt

Schedule of Portfolio Investments - October 31, 2011

The Portfolio invested, as a percentage of net assets, in the following indus-tries, as of October 31, 2011:

Industry	Percent of Net Assets
Commercial Banks		10.6%
Oil, Gas & Consumable Fuels		6.5%
Metals & Mining		6.4%
Pharmaceuticals		5.5%
Electric Utilities		5.4%
Diversified Telecommunication Services		5.4%
Chemicals		5.0%
Insurance		4.3%
Beverages		3.2%
Food Products		3.2%
Health Care Equipment & Supplies		3.1%
Industrial Conglomerates		2.8%
Food & Staples Retailing		2.7%
Trading Companies & Distributors		2.6%
Automobiles		2.6%
Real Estate Management & Development		2.3%
Tobacco		2.2%
Media		2.2%
Electronic Equipment, Instruments & Components		2.1%
Construction & Engineering		2.0%
Wireless Telecommunication Services		1.9%
Auto Components		1.8%
Road & Rail		1.7%
Machinery		1.6%
Diversified Consumer Services		1.6%
Software		1.5%
Communications Equipment		1.3%
Office Electronics		1.3%
Air Freight & Logistics		1.2%
Auto Parts & Equipment		0.9%
Diversified Financial Services		0.9%
IT Services		0.9%
Health Care Providers & Services		0.8%
Real Estate Investment Trusts (REITs)		0.8%
Computers & Peripherals		0.7%
Energy Equipment & Services		0.4%
Total Investments		99.4%

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 51

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011 (continued)

At October 31, 2011, the Portfolio’s open forward foreign currency contracts were as follows:

Short Contracts	Counterparty	Delivery Date	Contract Amount (Local Currency)	Contract Value($)	Value($)	Unrealized Appreciation/ (Depreciation)($)
CURRENCY
Euro	JPMorgan Chase Bank N.A.	11/1/2011	37,258	52,746	51,547	1,199
Euro	JPMorgan Chase Bank N.A.	11/1/2011	34,670	49,083	47,966	1,117
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	29,212	47,020	46,965	55
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	19,216	30,930	30,893	37
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	28,733	46,248	46,193	55
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	13,156	21,175	21,150	25
Hong Kong Dollar	Northern Trust	11/1/2011	35,560	4,574	4,577	(3	)
Swiss Franc	JPMorgan Chase Bank N.A.	11/1/2011	66,050	76,544	75,271	1,273
Swiss Franc	JPMorgan Chase Bank N.A.	11/1/2011	56,204	65,134	64,050	1,084
				393,454	388,612	4,842
Long Contracts	Counterparty	Delivery Date	Contract Amount (Local Currency)	Contract Value($)	Value($)	Unrealized Appreciation/ (Depreciation)($)
CURRENCY
Australian Dollar	JPMorgan Chase Bank N.A.	11/2/2011	27,591	29,450	29,073	(377	)
Australian Dollar	Merrill Lynch	11/3/2011	40,607	42,985	42,772	(213	)
Australian Dollar	Merrill Lynch	11/3/2011	13,025	13,787	13,719	(68	)
Euro	JPMorgan Chase Bank N.A.	11/1/2011	11,202	15,859	15,498	(361	)
Euro	JPMorgan Chase Bank N.A.	11/1/2011	248	352	343	(9	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	4,527	7,287	7,279	(8	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	8,001	12,878	12,863	(15	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	7,395	11,903	11,889	(14	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	8,884	14,299	14,282	(17	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	4,203	6,766	6,758	(8	)
British Sterling Pound	JPMorgan Chase Bank N.A.	11/1/2011	8,885	14,302	14,285	(17	)
Swedish Krone	JPMorgan Chase Bank N.A.	11/1/2011	17,109	2,684	2,626	(58	)
				172,552	171,387	(1,165	)

52 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011

Common Stocks—95.8%
	Shares		Value($)
Aerospace & Defense – 4.0%
BE Aerospace, Inc. (a)		93,580		3,530,773
TransDigm Group, Inc. (a)		22,980		2,158,282
				5,689,055
Auto Components – 2.2%
The Goodyear Tire & Rubber Co. (a)		216,250		3,105,350
Capital Markets – 1.5%
Waddell & Reed Financial, Inc., Class A		77,410		2,146,579
Chemicals – 4.3%
Celanese Corp., Series A		67,310		2,931,351
Westlake Chemical Corp.		77,745		3,203,871
				6,135,222
Commercial Banks – 1.6%
First Horizon National Corp.		1		7
First Republic Bank (a)		81,450		2,256,165
				2,256,172
Commercial Services & Supplies – 1.8%
Waste Connections, Inc.		74,605		2,540,300
Communications Equipment – 1.6%
Polycom, Inc. (a)		96,160		1,589,525
Riverbed Technology, Inc. (a)		22,610		623,584
				2,213,109
Containers & Packaging – 3.8%
Crown Holdings, Inc. (a)		81,470		2,752,872
Packaging Corp. of America		101,840		2,655,987
				5,408,859
Diversified Financial Services – 1.3%
MSCI, Inc., Class A (a)		53,860		1,798,385
Electrical Equipment – 2.3%
Hubbell, Inc., Class B		54,060		3,232,247
Energy Equipment & Services – 2.0%
Ensco International plc ADR		58,060		2,883,260
Food Products – 3.4%
Ralcorp Holdings, Inc. (a)		58,720		4,746,925
Health Care Equipment & Supplies – 6.3%
DENTSPLY International, Inc.		103,840		3,837,926
Hill-Rom Holdings, Inc.		71,190		2,396,967
IDEXX Laboratories, Inc. (a)		37,140		2,673,709
				8,908,602
Health Care Providers & Services – 1.8%
Coventry Health Care, Inc. (a)		79,510		2,529,213
Insurance – 1.5%
Everest Re Group Ltd.		22,890		2,058,269
IT Services – 4.8%
Alliance Data Systems Corp. (a)		33,830		3,465,545
FleetCor Technologies, Inc. (a)		62,470		1,746,661
Syntel, Inc.		31,180		1,524,702
				6,736,908
Common Stocks, continued
	Shares		Value($)
Life Sciences Tools & Services – 2.6%
Mettler-Toledo International, Inc. (a)		23,900		3,671,040
Machinery – 6.7%
Crane Co.		68,784		3,034,062
IDEX Corp.		63,530		2,252,139
Snap-on, Inc.		37,020		1,986,863
The Timken Co.		51,460		2,167,495
				9,440,559
Oil, Gas & Consumable Fuels – 8.0%
Alpha Natural Resources, Inc. (a)		88,442		2,126,146
Denbury Resources, Inc. (a)		246,400		3,868,480
Tesoro Corp. (a)		205,650		5,334,561
				11,329,187
Pharmaceuticals – 2.4%
Elan Corp. plc ADR (a)		262,300		3,144,977
Santarus, Inc. (a)		77,490		236,345
				3,381,322
Professional Services – 2.0%
IHS, Inc., Class A (a)		33,630		2,824,584
Real Estate Investment Trusts (REITs) – 1.7%
Hospitality Properties Trust		100,970		2,426,309
Road & Rail – 5.1%
Hertz Global Holdings, Inc. (a)		347,190		4,027,404
Landstar System, Inc.		70,680		3,154,448
				7,181,852
Semiconductors & Semiconductor Equipment – 5.4%
LSI Corp. (a)		278,210		1,738,812
NXP Semiconductors N.V. (a)		37,420		672,437
ON Semiconductor Corp. (a)		241,330		1,826,868
Skyworks Solutions, Inc. (a)		45,650		904,327
Teradyne, Inc. (a)		176,090		2,521,609
				7,664,053
Software – 5.6%
Informatica Corp. (a)		72,710		3,308,305
Nuance Communications, Inc. (a)		174,180		4,612,287
				7,920,592
Specialty Retail – 9.5%
Foot Locker, Inc.		193,390		4,227,506
O’Reilly Automotive, Inc. (a)		51,960		3,951,558
Signet Jewelers Ltd.		58,620		2,527,108
Williams-Sonoma, Inc.		73,080		2,743,423
				13,449,595
Trading Companies & Distributors – 1.4%
WESCO International, Inc. (a)		41,020		1,987,829
Wireless Telecommunication Services – 1.2%
NII Holdings, Inc. (a)		74,730		1,758,397
TOTAL COMMON STOCKS (COST $122,527,520)				135,423,774

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 53

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011 (continued)

Investment Company—2.5%
	Shares		Value($)
Northern Institutional Government Select Portfolio, Institutional Shares, 0.01% (b)		3,493,603		3,493,603
TOTAL INVESTMENT COMPANY (COST $3,493,603)				3,493,603
TOTAL INVESTMENTS SECURITIES (COST $126,021,123) — 98.3%				138,917,377

Percentages indicated are based on net assets of $141,324,402.
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on October 31, 2011.
ADR — American Depositary Receipt

54 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR VLUE PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2011

Common Stocks—98.6%
	Shares		Value($)
Aerospace & Defense – 1.9%
Raytheon Co.		21,400		945,666
Automobiles – 1.7%
General Motors Co. (a)		33,800		873,730
Biotechnology – 3.1%
Amgen, Inc.		27,600		1,580,652
Capital Markets – 2.3%
Goldman Sachs Group, Inc.		10,400		1,139,320
Commercial Banks – 2.7%
Wells Fargo & Co.		52,500		1,360,275
Commercial Services & Supplies – 1.0%
Pitney Bowes, Inc.		25,400		517,652
Communications Equipment – 5.6%
Cisco Systems, Inc.		76,400		1,415,692
Motorola Solutions, Inc.		29,628		1,389,849
				2,805,541
Diversified Financial Services – 4.6%
Citigroup, Inc.		48,320		1,526,429
JPMorgan Chase & Co.		22,150		769,934
				2,296,363
Energy Equipment & Services – 0.9%
Halliburton Co.		11,550		431,508
Food & Staples Retailing – 2.3%
CVS Caremark Corp.		31,400		1,139,820
Independent Power Producers & Energy
Traders – 1.2%
NRG Energy, Inc. (a)		29,500		631,890
Insurance – 16.3%
Aon Corp.		32,900		1,533,798
Genworth Financial, Inc., Class A (a)		117,900		752,202
Lincoln National Corp.		25,900		493,395
Loews Corp.		34,440		1,367,268
MetLife, Inc.		42,000		1,476,720
The Hartford Financial Services Group, Inc.		66,000		1,270,500
Unum Group		56,100		1,337,424
				8,231,307
Machinery – 3.2%
Ingersoll-Rand plc		23,900		744,007
PACCAR, Inc.		19,700		851,828
				1,595,835
Media – 6.9%
Time Warner, Inc.		34,950		1,222,900
Viacom, Inc., Class B		51,400		2,253,890
				3,476,790
Metals & Mining – 7.9%
AngloGold Ashanti Ltd. ADR		51,527		2,329,536
Barrick Gold Corp.		33,600		1,663,200
				3,992,736

Common Stocks, continued
	Shares		Value($)
Oil, Gas & Consumable Fuels – 14.2%
Apache Corp.		19,610		1,953,744
Canadian Natural Resources Ltd.		32,000		1,131,200
Hess Corp.		12,100		756,976
Noble Energy, Inc.		13,310		1,189,116
Occidental Petroleum Corp.		8,300		771,402
Talisman Energy, Inc.		93,600		1,329,120
				7,131,558
Pharmaceuticals – 12.9%
Merck & Co., Inc.		22,800		786,600
Pfizer, Inc.		138,200		2,661,732
Sanofi-Aventis ADR		54,400		1,944,800
Teva Pharmaceutical Industries Ltd. ADR		26,600		1,086,610
				6,479,742
Road & Rail – 1.8%
Union Pacific Corp.		8,900		886,173
Software – 6.8%
CA, Inc.		115,400		2,499,564
Microsoft Corp.		35,500		945,365
				3,444,929
Tobacco – 1.3%
Philip Morris International, Inc.		9,700		677,739
TOTAL COMMON STOCKS (COST $49,441,903)				49,639,226
Investment Company—0.8%
Northern Institutional Government Select Portfolio, Institutional Shares, 0.01% (b)		384,525		384,525
TOTAL INVESTMENT COMPANY (COST $384,525)				384,525
TOTAL INVESTMENT SECURITIES (COST $49,826,428) — 99.4%				50,023,751

Percentages indicated are based on net assets of $50,336,173.
(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on October 31, 2011.
ADR — American Depositary Receipt

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 55

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of October 31, 2011

	GrowthPortfolio		International Equity Portfolio		OpportunityPortfolio		ValuePortfolio
Assets:
Investments in non-affiliates, at value	$	102,984,637	$	36,255,220	$	138,917,377	$	50,023,751
Foreign currency, at value		—		348,873		—		—
Unrealized appreciation on forward foreign currency contracts		—		4,845		—		—
Dividends receivable		30,359		102,393		82,373		28,198
Receivable for investments sold		2,518,360		1,000,669		2,449,620		312,425
Prepaid expenses and other assets		532		213		818		284
Total Assets		105,533,888		37,712,213		141,450,188		50,364,658
Liabilities:
Cash overdraft		—		313,696		—		—
Unrealized depreciation on forward foreign currency contracts		—		1,168		—		—
Payable for investments purchased		182,789		909,890		17,726		—
Accrued expenses and other liabilities:
Investment Management		49,218		27,705		90,283		21,617
Administration		2,814		1,001		3,718		1,354
Accounting		34		201		48		17
Custodian		4,590		17,254		5,739		2,527
Other		5,556		7,992		8,272		2,970
Total Liabilities		245,001		1,278,907		125,786		28,485
Applicable to investors’ beneficial interest	$	105,288,887	$	36,433,306	$	141,324,402	$	50,336,173
Total Investments, at cost	$	83,145,350	$	38,920,853	$	126,021,123	$	49,826,428
Foreign currency, at cost	$	—	$	345,057	$	—	$	—

56 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the year ended October 31, 2011

	GrowthPortfolio			International Equity Portfolio			OpportunityPortfolio			ValuePortfolio
Investment Income:
Interest	$	—		$	441		$	—		$	—
Dividends		765,697			1,245,237			1,450,109			832,680
Foreign tax withholding		(313	)		(129,043	)		—			(6,387	)
Total Investment Income (Loss)		765,384			1,116,635			1,450,109			826,293
Expenses:
Investment Management		593,713			368,386			1,240,402			289,881
Administration		28,039			10,918			40,997			14,608
Accounting		45,037			77,673			44,953			41,926
Compliance Services		723			293			1,099			388
Custodian		13,214			65,508			20,016			7,351
Professional		11,410			23,052			16,585			4,927
Trustee		2,330			1,002			3,433			1,223
Other		1,502			9,230			2,865			1,063
Total Expenses		695,968			556,062			1,370,350			361,367
Net Investment Income (Loss)		69,416			560,573			79,759			464,926
Net Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investment securities and foreign currency transactions		10,568,671			1,297,670			24,005,437			1,982,453
Payments by affiliates for the violation of certain investment policies and limitations		—			5,235			—			—
Net realized gains (losses) from forward foreign currency contracts		—			(42,094	)		—			—
Change in unrealized appreciation/depreciation on investments and foreign currencies		387,197			(4,295,581	)		(5,303,339	)		(1,246,938	)
Net realized/unrealized gains from investments and foreign currency transactions		10,955,868			(3,034,770	)		18,702,098			735,515
Change In Net Assets Resulting From Operations	$	11,025,284		$	(2,474,197	)	$	18,781,857		$	1,200,441

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 57

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets

	Growth Portfolio						International Equity Portfolio
	For the year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
Investment Activities:
Operations:
Net investment income (loss)	$	69,416		$	(34,003	)	$	560,573		$	3,219,961
Net realized gains (losses) from investments		10,568,671			4,569,747			1,255,576			(24,730,645	)
Payment by affiliates for the violation of certain investment policies and limitations		—			—			5,235			—
Change in unrealized appreciation/depreciation from investments		387,197			12,751,375			(4,295,581	)		13,409,621
Change in net assets resulting from operations		11,025,284			17,287,119			(2,474,197	)		(8,101,063	)
Proceeds from contributions		20,411,483			10,138,077			8,054,582			15,234,642
Value of withdrawals		(24,898,681	)		(16,837,279	)		(10,964,673	)		(182,464,190	)
Change in net assets resulting from transactions from investors’ beneficial interest		(4,487,198	)		(6,699,202	)		(2,910,091	)		(167,229,548	)
Change in net assets		6,538,086			10,587,917			(5,384,288	)		(175,330,611	)
Net Assets:
Beginning of period		98,750,801			88,162,884			41,817,594			217,148,205
End of period	$	105,288,887		$	98,750,801		$	36,433,306		$	41,817,594

58 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)

	Opportunity Portfolio						Value Portfolio
	For the year ended October 31, 2011			For the year ended October 31, 2010			For the year ended October 31, 2011			For the year ended October 31, 2010
Investment Activities:
Operations:
Net investment income (loss)	$	79,759		$	(461,786	)	$	464,926		$	429,922
Net realized gains (losses) from investments		24,005,437			17,836,311			1,982,453			1,033,776
Change in unrealized appreciation/depreciation from investments		(5,303,339	)		17,016,734			(1,246,938	)		5,043,263
Change in net assets resulting from operations		18,781,857			34,391,259			1,200,441			6,506,961
Proceeds from contributions		16,493,895			10,306,391			13,512,680			6,794,273
Value of withdrawals		(33,352,902	)		(35,044,419	)		(16,119,600	)		(11,244,738	)
Change in net assets resulting from transactions from investors’ beneficial interest		(16,859,007	)		(24,738,028	)		(2,606,920	)		(4,450,465	)
Change in net assets		1,922,850			9,653,231			(1,406,479	)		2,056,496
Net Assets:
Beginning of period		139,401,552			129,748,321			51,742,652			49,686,156
End of period	$	141,324,402		$	139,401,552		$	50,336,173		$	51,742,652

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 59

HSBC INVESTOR PORTFOLIOS

Financial Highlights

			Ratio/Supplementary Data
	Total Return		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses to Average Net Assets (Excluding Fee Reductions)		Portfolio Turnover
GROWTH PORTFOLIO
Year Ended October 31, 2007	31.11	%		$	89,686	0.62	%	0.45	%	0.62	%	57	%
Year Ended October 31, 2008	(37.75	)%(a)			81,942	0.62	%	0.19	%	0.62	%	158	%
Year Ended October 31, 2009	19.31	%			88,163	0.69	%	0.17	%	0.69	%	66	%
Year Ended October 31, 2010	20.34	%			98,751	0.68	%	(0.04	)%	0.68	%	89	%
Year Ended October 31, 2011	11.07	%			105,289	0.66	%	0.07	%	0.66	%	56	%
INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2007	25.17	%			455,062	0.79	%	2.16	%	0.79	%	26	%
Year Ended October 31, 2008	(51.79	)%			199,309	0.76	%	2.65	%	0.76	%	29	%
Year Ended October 31, 2009	24.16	%			217,148	0.88	%	2.23	%	0.88	%	58	%
Year Ended October 31, 2010	6.15	%		$	41,818	0.87	%	2.07	%	0.87	%	63	%
Year Ended October 31, 2011	(6.58	)%(b)		$	36,433	1.35	%	1.36	%	1.35	%	178	%(c)
OPPORTUNITY PORTFOLIO
Year Ended October 31, 2007	30.54	%			224,268	0.91	%	(0.55	)%	0.91	%	69	%
Year Ended October 31, 2008	(35.30	)%			127,970	0.87	%	(0.46	)%	0.87	%	80	%
Year Ended October 31, 2009	15.41	%			129,748	0.90	%	(0.37	)%	0.90	%	65	%
Year Ended October 31, 2010	28.74	%			139,402	0.89	%	(0.35	)%	0.89	%	68	%
Year Ended October 31, 2011	12.40	%			141,324	0.88	%	0.05	%	0.88	%	69	%
VALUE PORTFOLIO
Year Ended October 31, 2007	10.28	%			82,658	0.66	%	1.29	%	0.66	%	19	%
Year Ended October 31, 2008	(39.91	)%			49,663	0.64	%	1.54	%	0.64	%	25	%
Year Ended October 31, 2009	20.05	%			49,686	0.68	%	1.41	%	0.68	%	20	%
Year Ended October 31, 2010	13.56	%			51,743	0.67	%	0.87	%	0.67	%	26	%
Year Ended October 31, 2011	2.08	%			50,336	0.65	%	0.84	%	0.65	%	24	%

(a)	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 the total return was 0.08%.
(b)	During the period ended October 31, 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%.
(c)	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.

60 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011

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 (the “Board”) 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, which also includes HSBC Advisor Funds Trust and HSBC Investor Funds (the “Trusts”). Financial statements for all other funds of the Trusts 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 not later than on business day after trade date. However, for financial reporting purposes, investment transactions are accounted for on trade date. 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 except in the case of foreign securities, in which case dividends are recorded as soon as such information becomes available.

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 61

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011

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 portfolios or 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 year 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.

Forward Foreign Currency Contracts:

          Each Portfolio may enter into forward foreign currency contracts. The Portfolios enter into forward foreign currency 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 forward foreign currency 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 year ended October 31, 2011, the International Equity Portfolio entered into forward foreign currency contracts in connection with planned purchases and sales of securities. The contract amount of forward foreign currency contracts outstanding was $0.6 million as of October 31, 2011. The monthly average contract amount for these contracts was $0.2 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 year ended October 31, 2011, the Portfolios did not hold any futures contracts.

62 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011 (continued)

Summary of Derivative Instruments:

          The following is a summary of the fair value of derivative instruments for the International Equity Portfolio as of October 31, 2011:

	Asset Derivatives		Liability Derivatives
Primary Risk Exposure	Statement of Assets and Liabilities Location	Total Fair Value*	Statement of Assets and Liabilities Location	Total Fair Value*
Foreign Exchange Contracts	Unrealized appreciation on forward foreign currency contracts	$4,845	Unrealized depreciation on forward foreign currency contracts	$1,168

*	Total Fair Value is presented by Primary Risk Exposure. For forward foreign currency 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 year ended October 31, 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 Exchange Contracts	Net realized gains (losses) from forward foreign currency contracts, Change in unrealized appreciation/depreciation on investments and foreign currencies	($42,094)	$3,677

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, prepayment 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 sale 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.
	Shares of exchange traded 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.

HSBC INVESTOR PORTFOLIOS 63

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011 (continued)

          Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of trading 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 Trusts’ Board (“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. 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 year ended October 31, 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 October 31, 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)		101,750,729		—		—		101,750,729
Investment Company		1,233,908		—		—		1,233,908
Total Investment Securities		102,984,637		—		—		102,984,637
International Equity Portfolio
Investment Securities:
Common Stocks: (b)
Brazil		486,621		—		—		486,621
Canada		597,303		—		—		597,303
Ireland (Republic of)		319,378		—		—		319,378
Israel		526,965		328,708		—		855,673
Sweden		470,532		500,726		—		971,258
United Kingdom		734,556		8,845,728		—		9,580,284
All Other Common Stocks (a)		—		23,444,703		—		23,444,703
Total Investment Securities		3,135,355		33,119,865		—		36,255,220
Other Financial Instruments: (c)
Forward Foreign Currency Contracts		—		3,677		—		3,677
Total Investments		3,135,355		33,123,542		—		36,258,897

64 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011 (continued)

	LEVEL 1($)		LEVEL 2($)		LEVEL 3($)		Total($)
Opportunity Portfolio
Investment Securities:
Common Stocks (a)		135,423,774		—		—		135,423,774
Investment Company		3,493,603		—		—		3,493,603
Total Investment Securities		138,917,377		—		—		138,917,377
Value Portfolio
Investment Securities:
Common Stocks (a)		49,639,226		—		—		49,639,226
Investment Company		384,525		—		—		384,525
Total Investment Securities		50,023,751		—		—		50,023,751

(a)	For detailed industry or country 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 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 October 31, 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 subad-visers 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 65

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011 (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 Trusts as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Trusts 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 rates and breakpoints are determined on the basis of the aggregate average daily net assets of the Trusts, however, the assets of the Portfolios and HSBC Investor Funds and HSBC Advisor Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series based upon its proportionate share of the aggregate net assets of the Trusts. For assets invested in the Portfolios by the HSBC Investor Funds and HSBC Advisor 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.

          During the year ended October 31, 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 Trusts’ Sub-Administrator subject to the general supervision by the Trusts’ Board 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 subject to certain reductions associated with services provided to new portfolios, minus 0.02%, which is retained by HSBC.

          Under a Compliance Services Agreement between the Trusts and Citi (the “CCO Agreement’’), Citi makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO’’). Under the CCO Agreement, Citi also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the Trusts paid Citi $274,649 for the year ended October 31, 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.

66 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2011 (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 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.
5.	Investment Transactions:
	Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the year ended October 31, 2011 were as follows:

Portfolio Name	Purchases		Sales
Growth Portfolio	$	58,137,418	$	63,903,183
International Equity Portfolio		71,255,652		72,448,207
Opportunity Portfolio		102,726,563		121,205,227
Value Portfolio		12,728,666		12,534,064

	For the year ended October 31, 2011, there were no long-term U.S. government securities held by the Portfolio Trust.
6.	Federal Income Tax Information:
	At October 31, 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		79,889,473		24,246,018		(1,150,854	)		23,095,164
International Equity Portfolio		39,126,285		1,330,123		(4,201,188	)		(2,871,065	)
Opportunity Portfolio		128,137,431		19,751,435		(8,971,489	)		10,779,946
Value Portfolio		49,967,619		6,416,564		(6,360,432	)		56,132

		*	The difference between book-basis unrealized appreciation (depreciation) is attributable primarily to tax deferral of losses on wash sales.
7.	Legal and Regulatory Matters:
	On September 26, 2006, BISYS Fund Services, Inc. (“BISYS’’), 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.
8.	Subsequent Events:
	The Board of Trustees of HSBC Investor Portfolios approved to close the HSBC Investor Value Portfolio and the HSBC Investor International Equity Portfolio and provide for their orderly liquidation upon or after the liquidation of the HSBC Investor Value Fund, the HSBC Investor International Equity Fund and the HSBC Investor Overseas Equity Fund, which are to be liquidated on or about December 31, 2011.

HSBC INVESTOR PORTFOLIOS 67

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees
of HSBC Investor Portfolios:

          We have audited the accompanying statements of assets and liabilities of HSBC Investor Portfolios – HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and HSBC Investor Value Portfolio (the Funds), including the schedules of portfolio investments, as of October 31, 2011, and the related statements of operations for the year then ended, the changes in net assets for each year in the two-year period then ended, and the financial highlights for each year in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

          We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2011, by correspondence with the respective custodian or broker or by other appropriate auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

          In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of October 31, 2011, the results of their operations for the year then ended, the changes in their net assets for each year in the two-year period then ended, and the financial highlights for each year in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Columbus, Ohio
December 22, 2011

68 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Table of Shareholder Expenses (Unaudited)—as of October 31, 2011

          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 May 1, 2011 through October 31, 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 5/1/11			Ending Account Value 10/31/11			Expenses Paid During Period* 5/1/11 – 10/31/11			Annualized Expense Ratio During Period 5/1/11 – 10/31/11
Growth Portfolio		$	1,000.00		$	929.70		$	3.16	0.65	%
International Equity Portfolio			1,000.00			831.50			6.65	1.44	%
Opportunity Portfolio			1,000.00			861.10			4.17	0.89	%
Value Portfolio			1,000.00			874.40			3.12	0.66	%

*	Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).
	Hypothetical Example for Comparison Purposes
	The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare 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 5/1/11			Ending Account Value 10/31/11			Expenses Paid During Period* 5/1/11 – 10/31/11			Expense Ratio During Period 5/1/11 – 10/31/11
Growth Portfolio		$	1,000.00		$	1,021.93		$	3.31	0.65	%
International Equity Portfolio			1,000.00			1,017.95			7.32	1.44	%
Opportunity Portfolio			1,000.00			1,020.72			4.53	0.89	%
Value Portfolio			1,000.00			1,021.88			3.36	0.66	%

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

HSBC INVESTOR PORTFOLIOS 69

HSBC INVESTOR FAMILY OF FUNDS

Board of Trustees and Officers (Unaudited)

MANAGEMENT OF THE TRUST

          The following table contains information regarding HSBC Investor Family of Funds’ Board of Trustees (“Trustees”). Asterisks indicate those Trustees who are “interested persons,” as defined in the Investment company act of 1940, as amended, of the HSBC Investor Family of Funds. The HSBC Investor Family of Funds’ Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request by calling (888) 525-5757.

Name, Address, Age	Position(s) Held with Funds	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Portfolios in Fund Complex Overseen By Trustee*	Other Directorships Held by Trustee During Past 5 Years
NON-INTERESTED
TRUSTEES
Marcia L. Beck P.O. Box 182845 Columbus, OH 43218-3035 Age: 55	Trustee	Indefinite; 2008 to present	Private Investor (June 1999 – present); Executive Vice President, Prudential Investments (1997 – 1999); President and Trustee, The Goldman Sachs Mutual Funds (1992 – 1996)	29	None
Susan S. Huang P.O. Box 182845 Columbus, OH 43218-3035 Age: 57	Trustee	Indefinite; 2008 to present	Private Investor (2000 – present); Senior Vice President, Schroder Investment Management (2001 – 2004); Managing Director, Chase Asset Management (1995 – 2000)	29	None
Alan S. Parsow P.O. Box 182845 Columbus, OH 43218-3035 Age: 61	Trustee	Indefinite; 1987 to present	General Partner, Elkhorn Partners, L.P. (a private investment partnership) (1989 – present)	29	Penn Treaty American Corporation (insurance)
Thomas F. Robards P.O. Box 182845 Columbus, OH 43218-3035 Age: 65	Trustee	Indefinite; 2005 to present	Partner, Robards & Co. LLC (investment and advisory services) (2005 – present); Chief Financial Officer, American Museum of Natural History (2003 – 2004); Chief Financial Officer, Datek Online Holdings (2000 – 2003); Previously EVP and CFO Republic New York Corporation	29	Overseas Shipholding Group (NYSE listed energy transportation); Ellington Financial LLC (NYSE listed financial services); Financial Federal Corporation (NYSE listed specialty finance)
Michael Seely P.O. Box 182845 Columbus, OH 43218-3035 Age: 66	Chairman and Trustee	Indefinite; 1987 to present	Private Investor (2003 – present); General Partner, Global Multi Manager Partners (1999 – 2003); President of Investor Access Corporation (1981 – 2003)	29	None
INTERESTED TRUSTEE
Sylvia Coutinho P.O. Box 182845 Columbus, OH 43218-3035 Age: 49**	Trustee	Indefinite; 2011 to December 16, 2011***	CEO Asset Management Americas, HSBC Global Asset Management (2010 – present); CEO Asset Management and Wealth Management Latin America, HSBC Latam (2008 – 2010); Executive Director HSBC Brazil, Head of Asset Management, Custody and Private Banking, and Latam Regional Head for Asset Management (2006 – 2008); Executive Director, Private Banking, HSBC Bank Brazil (2005 – 2006)	29	None
EMERITUS TRUSTEE
Larry M. Robbins P.O. Box 182845 Columbus, OH 43218-3035 Age: 72	Emeritus Trustee	Until December 31, 2011; Trustee from 1987 to December 31, 2010	Private Investor (2007-present); Director, Center for Teaching and Learning, University of Pennsylvania (1999 – 2007)	29	None

*	Includes the Trust, the HSBC Advisor Funds Trust and the HSBC Investor Portfolios.
**	Elected by shareholders of the Trust on June 15, 2011 at a shareholder meeting where all Trustees (except the Emeritus Trustee) were so elected.
***	Resigned from her position with the Trust effective December 16, 2011.

70 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR FAMILY OF FUNDS

Board of Trustees and Officers (Unaudited) (continued)

Name, Address, Age	Position(s) Held Funds	Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Richard A. Fabietti 452 Fifth Avenue New York, NY 10018 Age: 52	President	One year; 2004 to present	Senior Vice President, Head of Product Management, HSBC Global Asset Management (USA) Inc. (1998 – present)
Stephen Sivillo 452 Fifth Avenue New York, NY 10018 Age: 40	Vice President	One year; 2010 to present	Vice President of Product Administration, HSBC Global Asset Management (USA) Inc. (2010 – present); Chief Compliance Officer, Managers Funds (2009 – 2010); Director, Mutual Fund Compliance, AllianceBernstein (2007 – 2009); Assistant Vice President, Compliance, AllianceBernstein (2005 – 2007)
Ty Edwards* 3435 Stelzer Road Columbus, OH 43219-3035 Age: 44	Treasurer	One year; 2010 to present	Senior Vice President, Citi Fund Services (2010 – present); Director, Product Management, Columbia Management (2007 – 2009); Deputy Treasurer, Columbia Funds, (2006 – 2007); Director, Fund Administration, Columbia Management (2004 – 2007)
Jennifer A. English* 100 Summer Street Suite 1500 Boston, MA 02110 Age: 39	Secretary	One year; 2008 to present	Senior Vice President, Regulatory Administration, Citi (2005 – present)
F. Martin Fox 100 Summer Street Suite 1500 Boston, MA 02110 Age: 48	Assistant Secretary	One year; 2008 to present	Assistant Vice President, Regulatory Administration, Citi (May 2008 – present); Contract Attorney, Update Legal LLC (2002 – 2008)
Frederick J. Schmidt* 1 Rexcorp Plaza Uniondale, NY 11556 Age: 52	Chief Compliance Officer	One year; 2004 to present	Director and Chief Compliance Officer, CCO Services, Citi (2004 – present)

* Mr. Edwards, Mr. Schmidt and Ms. English also are officers of certain other investment companies of which Citi (or an affiliate) is the administrator or sub-administrator.

HSBC INVESTOR PORTFOLIOS 71

          Other Information:

          A description of the policies and procedures the Funds use to determine how to vote proxies relating to portfolio securities of each Fund, and 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 Portfolios’ Schedules of Investments will be available no later than 60 days after each period end, without charge, on the Funds’ website at www.investorfunds.us.hsbc.com.

          An investment in a Portfolio 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.

          Cost Basis Information

          As of January 1, 2012, federal law requires that mutual fund companies maintain and report a shareholder’s cost basis by tax lot and the holding period of “covered” security sales to the Internal Revenue Service on Form 1099. Covered securities include mutual fund shares acquired on or after January 1, 2012. A fund is not responsible for maintaining and reporting cost basis information if such shares are not deemed to be “covered”.

          The new tax regulations require that the Funds elect a default cost basis calculation method in order to carry out the required reporting. The Funds have chosen the average cost method as the default cost basis calculation method for their shareholders. This is the method the Funds will use to determine which “covered” shares are deemed to be sold when a shareholder has not elected a specific cost basis method for his/her account. The average cost method is also the method in which sales of “covered” shares will be reported on a shareholder’s Form 1099 absent a specific cost basis method election from the shareholder.

          Shareholders are free to change their elected cost basis calculation method. From the time of purchase until the sale of “covered” shares, shareholders may choose a different cost basis calculation method. Shareholders should consult a tax advisor with regard to their personal circumstances as the Funds and their service providers do not provide tax advice.

72 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR FAMILY OF FUNDS:	SHAREHOLDER SERVICING AGENTS
	For HSBC Bank USA, N.A. and
INVESTMENT ADVISER AND ADMINISTRATOR	HSBC Securities (USA) Inc. Clients
HSBC Global Asset Management (USA) Inc.	HSBC Bank USA, N.A.
452 Fifth Avenue	452 Fifth Avenue
New York, NY 10018	New York, NY 10018
	1-888-525-5757
SUB-ADVISERS
HSBC Investor Growth Portfolio	For All Other Shareholders
Winslow Capital Management, Inc.	HSBC Investor Funds
4720 IDS Tower	P.O. Box 182845
80 South Eighth Street	Columbus, OH 43218
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
HSBC Investor Value Portfolio	CUSTODIAN
NWQ Investment Management Co., LLC	The Northern Trust Company
2049 Century Park East, 16th Floor	50 South LaSalle Street
Los Angeles, CA 90067	Chicago, IL 60603
	INDEPENDENT REGISTERED PUBLIC
	ACCOUNTING FIRM
	KPMG LLP
	191 West Nationwide Blvd., Suite 500
	Columbus, OH 43215
	LEGAL COUNSEL
	Dechert LLP
	1775 I Street, N.W.
	Washington, D.C. 20006

The HSBC Investor Family of Funds are distributed by Foreside Distribution Services, L.P. This document must be preceded or accompanied by a current prospectus for the HSBC Investor Funds, which you should read carefully before you invest or send money.

	— NOT FDIC INSURED	— NO BANK GUARANTEE	— MAY LOSE VALUE
HSB-AR-RTL-1211			12/11

Item 2. Code of Ethics.

(a) The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit.

(b) During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

Item 3. Audit Committee Financial Expert.

3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

3(a)(2) The audit committee financial expert is Thomas Robards, who is “independent” for purposes of this Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees,
2010	$228,000
2011	$244,970
(b) Audit-Related Fees,
2010	$6,200
2011	$7,000
2010 – Fees of $6,200 relate to the consent of N-1A filing.
2011 – Fees of $7,000 relate to the consent of N-1A filing.
(c) Tax Fees,
2010	$138,625
2011	$124,855
Fees for both 2010 and 2011 relate to the preparation of federal income and excise tax returns and the review of excise tax distributions.
(d) All Other Fees,
2010	$0
2011	$0

                    (e)(1) The audit committee is required to pre-approve all audit and permitted non-audit services performed by the registrant’s independent auditors in accordance with the audit committee charter and the Investment Company Act of 1940.

                    (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

None of the services summarized in (b) – (d), above, were approved by the audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X.

(f) Not applicable.
(g) Non-Audit Fees.
2010	$144,825
2011	$131,855

               (h) The audit committee considered the nonaudit services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser, and believes the services are compatible with the principal accountant’s independence.

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) The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.

(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 12/21/11

          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 12/21/11

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

Date 12/21/11