Report of Independent Auditors



The Board of Trustees and Shareholders
HSBC Mutual Funds Trust

We have audited the accompanying statement
of assets and liabilities, including the schedule
 of portfolio investments, of the International
 Equity Fund (one of the portfolios comprising
 HSBC Mutual Funds Trust) as of December
 31, 2000, the related statements of operations
for the year then ended, the statements of changes
 in net assets for each of the two years in the
 period then ended and the financial highlights
 for each of the periods indicated therein.
These financial statements and financial highlights
are the responsibility of the Trust's 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
auditing standards generally accepted in the United
States.  Those standards require that we plan and
perform the audit 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 and financial
highlights.  Our procedures included confirmation
of securities owned as of December 31, 2000, by
correspondence with the custodian and others.
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
International Equity Fund at December 31, 2000,
the results of its operations for the year then ended,
 the changes in its net assets for each of the two
years in the period then ended and its financial
 highlights for each of the indicated periods,
in conformity with accounting principles generally
 accepted in the United States.


New York, New York
February 17, 2001