N-CSR

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: 811-08928

HSBC INVESTOR PORTFOLIOS
(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, 2008

Item 1. Reports to Stockholders.

HSBC Global Asset Management (USA) Inc.

October 31^st, 2008

HSBC Investor LifeLine Funds^TM

Annual Report

HSBC Investor Aggressive Growth Strategy Fund

HSBC Investor Growth Strategy Fund

HSBC Investor Moderate Growth Strategy Fund

HSBC Investor Conservative Growth Strategy Fund

Table of Contents

HSBC Investor Lifeline Funds Annual Report - October 31, 2008
Glossary of Terms
Chairman’s Message	1
Commentary From the Investment Manager	2
Portfolio Reviews	3
Portfolio Composition	18
Statements of Assets and Liabilities	21
Statements of Operations	22
Statements of Changes in Net Assets	23
Financial Highlights	27
Notes to Financial Statements	31
Report of Independent Registered Public Accounting Firm	38
Other Federal Income Tax Information	39
Table of Shareholder Expenses	40
HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Core Plus Fixed Income Portfolio	42
HSBC Investor High Yield Fixed Income Portfolio	46
HSBC Investor Intermediate Duration Fixed Income Portfolio	52
HSBC Investor Growth Portfolio	55
HSBC Investor International Equity Portfolio	57
HSBC Investor Opportunity Portfolio	59
HSBC Investor Value Portfolio	60
Statements of Assets and Liabilities	61
Statements of Operations	63
Statements of Changes in Net Assets	65
Financial Highlights	69
Notes to Financial Statements	70
Report of Independent Registered Public Accounting Firm	78
Table of Shareholder Expenses	79
Board of Trustees	81
Other Information	83

(This Page Intentionally Left Blank)

Glossary of Terms

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

Barclays Capital Intermediate U.S. Aggregate Index (formerly Lehman Bros. U.S. Intermerdiate Aggregate Index) is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.

Citigroup U.S. Domestic Three Month Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.

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

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

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

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

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

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

Russell 2000^® Index is an unmanaged index which easures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The companies which comprise this index have high price-to-book ratios and higher forecasted growth values.

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

Standard & Poor’s (“S&P 500”) 500 Index 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.

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

Chairman’s Message

Dear Shareholder,

Over the past eighteen months, the financial markets have experienced arguably the most difficult conditions in recent history. The underlying causes of the market’s significant and persistent downturn have had devastating effects on corporations around the world. The value of equity, fixed income and even money market securities has all been affected by the slowing economy, decreasing corporate earnings and the lack of available credit to support business operations. Many organizations with renowned histories of success and profitability are now seeking government relief in order to remain solvent. The result has been significant double-digit losses for U.S. and international market indices over the past year.

During this period of extreme volatility, the HSBC Investor Funds (the “Funds”) were committed to offering sound, long-term investment solutions to investors. Now, more than ever, the Funds are diligently seeking and working with investment sub-advisers who can assist in navigating through this market environment. Moreover, the Board of Trustees is also aware that the Funds’ ability to execute shareholder instructions in an accurate and timely manner is also an important part of a fund’s overall performance. In performing its oversight role, the Board continuously attempts to maintain the highest level of responsiveness to shareholders.

Recognizing its responsibility to shareholders, the Board considers a wide range of factors including relative expertise and the financial viability in selecting the Funds’ service providers. We believe that aligning the Funds’ interests with strong partners provides a tangible benefit to shareholders, now and in the future.

We understand that these are extremely challenging times in the financial markets. We remain committed to managing the HSBC Investor Funds in a prudent and consistent manner for long-term performance.

For further market insight and investment results for the Funds, please see our portfolio manager commentary in this Annual Report.

Thank you for your investment in the HSBC Investor Funds.

Sincerely,

Larry M. Robbins, Chairman, HSBC Investor Funds

1 HSBC INVESTOR FAMILY OF FUNDS

Commentary From the Investment Manager

HSBC Global Asset Management (USA) Inc.

U.S. Economic Review

The 12-month period from November 1, 2007 through October 31, 2008 was extraordinarily challenging for the U.S. economy and the global financial system. Over the course of this period, a growing number of signs indicated that the health of the economy was deteriorating and the risk of a recession was rising. In addition, a number of financial institutions faced serious problems and incurred heavy financial losses that threatened their ability to operate.

These issues largely stemmed from the housing market’s prolonged downturn. Rising default rates on subprime mortgages during the period generated huge losses for a wide variety of global financial institutions, which had invested heavily in securities that were backed by those risky mortgages. The losses were so severe that they eventually resulted in the collapse of Bear Sterns, Lehman Brothers and others, the nationalization of Fannie Mae and Freddie Mac, the failure of some banks and the forced mergers of several financial institutions. In that environment, lenders became suspicious of borrowers’ financial health and significantly reduced their willingness to lend money. The result was a crisis that effectively froze the credit markets and depressed economic growth.

The economic slowdown and declining home prices were particularly hard on consumers, who account for approximately two-thirds of U.S. economic activity. Retail sales fell sharply, real personal incomes declined, unemployment rose to its highest levels in years and consumer confidence plummeted. Corporate profits declined and U.S. Gross Domestic Product¹ growth fell during two of the past four quarters (through the third quarter of 2008).

Problems in the U.S. economy spread overseas, creating fears of a global economic downturn. Consensus 2009 forecasts for economic growth in Europe and Asia declined during the third quarter, driven lower by factors such as falling business activities and confidence.

Aggressive steps were taken during the period to stabilize the credit markets and respark the economy. For example, the Federal Reserve Board (the “Fed”) cut its target short-term interest rate, the federal funds rate, from 4.50% in November to 1.00% by the end of October in an effort to inject liquidity into the markets. The Fed also established and increased auction lending facilities. Additionally, the U.S. government began implementing a $700 billion financial bailout package, and helped engineer the rescue of several large financial institutions and guaranteed senior debt issued by banks. Governments in Europe and Asia adopted similar strategies to improve sentiment and ease the strains in their financial systems.

The weak economy did have some relatively positive consequences. Energy prices, which had risen sharply during the first half of the period as the price of oil soared to record highs, fell significantly during later months. Falling commodity prices also reduced inflationary pressures, giving central banks around the world a greater ability to target their monetary policy to support growth, liquidity and financial market stability.

Market Review

The U.S. stock market was extremely volatile during the period as investors reacted strongly to new developments in the economy, the housing sector and the financial markets. Investors during most of the period fled from stocks into assets that were perceived to be safer, such as high-quality government bonds and cash. The S&P 500 Index¹ returned -36.08% for the 12-month period ended October 31, 2008. Small-company stocks, represented by the Russell 2000^® Index¹, returned
-34.16%.

Shares of financial services firms suffered particularly large declines during the period due to the turmoil in the credit and banking system and concerns that more problems could occur if the subprime mortgage crisis spread. Consumer discretionary stocks also posted significant losses as increasingly nervous consumers cut their spending on non-essential items. Investors also shunned shares of auto-related companies, which faced critical credit shortages and an uncertain future.

The energy sector posted strong returns during the first half of the period as the price of oil and other commodities rose, but lagged later in the period as oil prices fell sharply. Conversely, health care stocks outperformed the overall market, especially as economic conditions worsened during the final months of the period.

Foreign stocks also delivered negative returns, as banks worldwide suffered from their exposure to problem assets related to the mortgage industry and the outlook for global economic growth worsened. The MSCI EAFE Index¹ of developed foreign stock markets returned -46.34% during the period. Emerging markets stocks also suffered as investors avoided the perceived riskiness of developing markets in favor of assets they believed to be more stable. Falling commodity prices during the second half of the period also hurt some emerging economies, which are heavily dependent on commodity exports.

The Barclays Capital U.S. Aggregate Index¹, which tracks the broad fixed-income markets, returned 0.3% for the period. High-quality government bonds, such as those issued by the U.S. Treasury, performed well as investors seeking to avoid risk fled into these securities. The rally pushed yields for government bonds lower, particularly among short-term fixed-income securities. Investors favored shorter maturities as they focused on liquidity and safety during the period of heightened market volatility. Other types of fixed-income securities—including corporate bonds and high-yield bonds—performed poorly, as investors favored the stability of government-backed bonds and worried about companies’ ability to fulfill their debt obligations in a weak economic environment. As a result, the spread between yields on government securities and corporate bonds widened substantially.

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

HSBC INVESTOR FAMILY OF FUNDS 2

Portfolio Reviews

HSBC Investor Aggressive Growth Strategy Fund
HSBC Investor Growth Strategy Fund
HSBC Investor Moderate Growth Strategy Fund
HSBC Investor Conservative Growth Strategy Fund

Investment Concerns

Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments.

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.

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.

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

Small capitalization funds typically carry additional risks, since smaller companies generally have a higher risk of failure and historically have experienced a greater degree of market volatility than average. There are risks associated with investing in a fund that invests in securities of foreign countries, such as erratic market conditions, economic and political instabilities and fluctuations in currency exchanges.

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

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

An investment in money market funds is not insured or guaranteed by the FDIC or any other government agency. Although the money market funds seek to preserve the value of your investment at $1.00.

The HSBC Investor Funds feature a number of funds that are structured as “master/feeder” funds. Under this two-tier structure, one fund (the “feeder fund”) invests all of its investable assets in a second fund (the “master fund”). The LifeLine Funds, through this master/feeder structure, provide an asset allocation option to investors who seek to diversify their investment across a variety of asset classes. Each LifeLine Fund provides an asset allocation option corresponding to different investment objectives and risk tolerances. Each LifeLine Fund is a feeder fund. However, unlike most feeder funds, a LifeLine Fund will not direct all of its assets to a single master fund. Instead, the LifeLine Fund will allocate its assets to different master funds in accordance with its asset allocation model. HSBC Global Asset Management (USA) Inc. (the “Adviser”), according to specific target allocations, invested each LifeLine Fund’s assets in some or all of the following master funds (“underlying Portfolios”):

HSBC Investor Growth Portfolio (“Growth Portfolio”); HSBC Investor Value Portfolio (“Value Portfolio”); HSBC Investor Opportunity Portfolio (“Small Cap Equity Portfolio”); HSBC Investor International Equity Portfolio (“International Equity Portfolio”); HSBC Investor Core Plus Fixed Income Portfolio (“Core Plus Fixed Income Portfolio”); HSBC Investor High Yield Fixed Income Portfolio (High Yield Fixed Income Fund); HSBC Investor Intermediate Duration Fixed Income Portfolio (“Intermediate Duration Fixed Income Portfolio”); and the HSBC Investor Money Market Fund (“Money Market Fund”).

3 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

During the last period, each LifeLine Fund invested in a different combination of the underlying Portfolios according to the various target percentage weightings selected by the Adviser, approximately as set forth in the table below.

Underlying Portfolio	HSBC Investor Aggressive Growth Strategy Fund		HSBC Investor Growth Strategy Fund		HSBC Investor Moderate Growth Strategy Fund		HSBC Investor Conservative Growth Strategy Fund
Prime Money Market Fund	1	%	1	%	6	%	21	%
Core Plus Fixed Income Portfolio	None		15	%	26	%	25	%
High Yield Fixed Income Portfolio	None		2	%	5	%	8	%
Intermediate Duration Fixed Income Portfolio	None		None		None		3	%
Growth Portfolio	21	%	21	%	19	%	15	%
International Equity Portfolio	23	%	20	%	15	%	10	%
Opportunity Portfolio	34	%	20	%	11	%	4	%
Value Portfolio	21	%	21	%	18	%	14	%
Total:	100	%	100	%	100	%	100	%

HSBC INVESTOR FAMILY OF FUNDS 4

Portfolio Reviews

HSBC Investor Aggressive Growth Strategy Fund

Value of a $10,000 Investment

The charts above represent a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Funds’ benchmark and represents the reinvestment of dividends and capital gains in the Funds. The above Indexes and Benchmarks are for the period beginning 1/31/05.

Fund Performance		Average Annual Total Return (%)			Expense Ratio (%)4
As of October 31, 2008	Inception Date	1 Year	3 Year	Since Inception	Gross	Net
HSBC Investor Aggressive Growth Strategy Fund Class A1	2/14/05	-43.88	-6.12	-3.49	2.27	1.50
HSBC Investor Aggressive Growth Strategy Fund Class B2	2/9/05	-43.56	-5.82	-3.05	3.02	2.25
HSBC Investor Aggressive Growth Strategy Fund Class C3	6/10/05	-41.87	-5.17	-3.07	3.02	2.25
Standard & Poor’s 500 Index	—	-36.08	-5.21	N/A	N/A	N/A
Aggressive Growth Blended Portfolio Index5	—	-40.14	-5.45	N/A	N/A	N/A

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

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

During the year ended October 31, 2008, the respective Portfolios the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for the applicable periods would have been lower.

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	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
5	The performance of the HSBC Investor Aggressive Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (34%) and the MSCI EAFE Index (23%). These indices are unmanaged and do not reflect the 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. For a complete definition of the above referenced indices, please refer to the Glossary of Terms.
5	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Growth Strategy Fund

Value of a $10,000 Investment

The charts above represent a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Funds’ benchmark and represents the reinvestment of dividends and capital gains in the Funds. The above Indexes and Benchmarks are for the period beginning 1/31/05.

Fund Performance		Average Annual Total Return (%)			Expense Ratio (%)4
As of October 31, 2008	Inception Date	1 Year	3 Year	Since Inception	Gross	Net
HSBC Investor Growth Strategy Fund Class A1	2/8/05	-39.63	-5.52	-2.69	1.65	1.50
HSBC Investor Growth Strategy Fund Class B2	2/1/05	-39.34	-5.25	-2.04	2.40	2.25
HSBC Investor Growth Strategy Fund Class C3	4/27/05	-37.54	-4.62	-1.78	2.40	2.25
Standard & Poor’s 500 Index	—	-36.08	-5.21	N/A	N/A	N/A
Growth Blended Portfolio Index5	—	-34.39	-3.86	N/A	N/A	N/A

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

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

During the years ended October 31, 2007, and 2008, the respective Portfolios the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for applicable periods would have been lower.

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	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
5	The performance of the HSBC Investor Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (1%); Barclays Capital U.S. Aggregate Index (formerly Lehman Brothers U.S. Aggregate Index) (15%); Citigroup U.S. High Yield Market Capped Index (2%); Russell 1000® Growth Index (21%); Russell 1000® Value Index (21%); Russell 2500™ Growth Index (20%) and the MSCI EAFE Index (20%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 2% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the 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. For a complete definition of the above referenced indices, please refer to the Glossary of Terms.

HSBC INVESTOR FAMILY OF FUNDS 6

Portfolio Reviews

HSBC Investor Moderate Growth Strategy Fund

Value of a $10,000 Investment

The charts above represent a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Funds’ benchmark and represents the reinvestment of dividends and capital gains in the Funds. The above Indexes and Benchmarks are for the period beginning 1/31/05.

Fund Performance		Average Annual Total Return (%)			Expense Ratio (%)4
As of October 31, 2008	Inception Date	1 Year	3 Year	Since Inception	Gross	Net
HSBC Investor Moderate Growth Strategy Fund Class A1	2/3/05	-34.12	-4.62	-2.49	1.60	1.50
HSBC Investor Moderate Growth Strategy Fund Class B2	2/1/05	-33.79	-4.33	-1.97	2.35	2.25
HSBC Investor Moderate Growth Strategy Fund Class C3	6/10/05	-31.74	-3.69	-2.48	2.35	2.25
Standard & Poor’s 500 Index	—	-36.08	-5.21	N/A	N/A	N/A
Moderate Growth Blended Portfolio Index5	—	-27.70	-2.28	N/A	N/A	N/A

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

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

During the years ended October 31, 2007 and 2008, the respective Portfolios the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for applicable periods would have been lower.

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	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
5	The performance of the HSBC Investor Moderate Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic Three-Month T-Bill Index (6%); Citigroup U.S. High Yield Market Capped Index (5%); Barclays Capital U.S. Aggregate Index (formerly Lehman Brothers U.S. Aggregate Index) (26%); Russell 1000® Growth Index (19%); Russell 1000® Value Index (18%); Russell 2500™ Growth Index (11%) and the MSCI EAFE Index (15%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects a 5% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the 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. For a complete definition of the above referenced indices, please refer to the Glossary of Terms.
7	HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Conservative Growth Strategy Fund

Value of a $10,000 Investment

The charts above represent a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Funds’ benchmark and represents the reinvestment of dividends and capital gains in the Funds. The above Indexes and Benchmarks are for the period beginning 1/31/05.

Fund Performance		Average Annual Total Return (%)			Expense Ratio (%)4
As of October 31, 2008	Inception Date	1 Year	3 Year	Since Inception	Gross	Net
HSBC Investor Conservative Growth Strategy Fund Class A1	2/23/05	-26.99	-3.30	-1.93	2.06	1.50
HSBC Investor Conservative Growth Strategy Fund Class B2	2/17/05	-26.69	-2.92	-1.62	2.81	2.25
HSBC Investor Conservative Growth Strategy Fund Class C3	4/19/05	-24.47	-2.16	-0.72	2.81	2.25
Standard & Poor’s 500 Index	—	-36.08	-5.21	N/A	N/A	N/A
Conservative Growth Blended Portfolio Index5	—	-20.06	-0.54	N/A	N/A	N/A

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

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

During the years ended October 31, 2007 and 2008, the respective Portfolios the Fund invests in received monies related to certain nonrecurring litigation settlements. Without the receipt of this payment, the returns for applicable periods would have been lower.

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	Reflects the expense ratio as reported in the prospectus dated February 28, 2008.
5	The performance of the HSBC Investor Conservative Growth Strategy Fund is compared to a Blended Portfolio Index, which is a hypothetical combination of broad-based indexes. The components of the Blended Portfolio Index and their weighting are as follows: The Citigroup U.S. Domestic 3-Month T-Bill Index (21%); Citigroup U.S. High Yield Market Capped Index (8%); Barclays Capital U.S. Aggregate Index (formerly Lehman Bros. U.S. Aggregate Index) (25%); Barclays Capital U.S. Interm. Aggregate Index (formerly Lehman Bros. U.S. Interm. Aggregate Index) (3%); Russell 1000® Growth Index (15%); Russell 1000® Value Index (14%); Russell 2500™ Growth Index (4%) and the MSCI EAFE Index (10%). The stated performance for the Blended Index from April 30, 2006 to February 28, 2008 reflects an 8% allocation for the Merrill Lynch U.S. High Yield Master II Index. On February 29, 2008, the Merrill Lynch U.S. High Yield Master II Index was replaced with the Citigroup U.S. High Yield Market Capped Index. These indices are unmanaged and do not reflect the 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. For a complete definition of the above referenced indices, please refer to the Glossary of Terms.

HSBC INVESTOR FAMILY OF FUNDS 8

Portfolio Reviews

Standardized Performance Benchmark Indices for the period ended October 31, 2008	1 Year (%)
Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index	2.31
Citigroup U.S. High Yield Market Capped Index	-24.05
Barclays Capital U.S. Aggregate Index	0.30
Barclays Capital Intermediate U.S. Aggregate Index	1.48
MSCI EAFE Index	-46.34
Russell 1000® Growth Index	-36.95
Russell 1000® Value Index	-36.80
Russell 2500™ Growth Index	-41.00

Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is government guaranteed and offers a fixed rate of return. Return and principal of stocks and bonds will vary with market conditions. Treasury bills are less volatile than longer-term fixed-income securities and are guaranteed as to timely payment of principal and interest by the U.S. Government.

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

Barclays Capital U.S. Aggregate Index (formerly Lehman Brothers U.S. Aggregate Index) is an unmanaged index generally representative of the investment-grade debt issues with at least one year to final maturity.

Barclays Capital Intermediate U.S. Aggregate Index (formerly Lehman Brothers Intermediate U.S. Aggregate Index) is an unmanaged index market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year.

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

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

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

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

9 HSBC INVESTOR FAMILY OF FUNDS

	Portfolio Reviews
HSBC Investor Prime Money Market Fund	Moody’s and Standard & Poor’s
	has assigned an “Aaa” and “AAAm”
	rating to the HSBC Investor Prime
by John Chiodi	Money Market Fund.1
Senior Portfolio Manager

Investment Concerns

An investment in the fund 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 the fund.

The money markets experienced a turbulent environment during the 12-month period under review, as rising defaults on subprime mortgages brought on a credit and liquidity crisis. The Federal Reserve Board (the “Fed”) attempted to address the financial system’s problems by lowering its target short-term interest rate from 4.50% to 1.00% between November 2007 and October 2008, causing yields on money market securities to decline.

We sought to protect shareholders’ principal in this uncertain environment. In particular, we sacrificed some yield in exchange for increased liquidity during periods of extreme stress in the money markets. We favored intermediate-term assets to help offset the effect of falling rates on the Fund’s yield while also meeting our conservative liquidity goals. As the markets settled somewhat during the fiscal third quarter, we took advantage of strategic opportunities to capture higher yields available on longer-term securities. Additionally, we took advantage of a program by the U.S. Treasury to insure money market funds.^†

We also looked to safeguard shareholder assets by increasing our position in government securities. This strategy also reduced the Fund’s yield, but provided greater security as the credit and liquidity crisis roiled the money markets.*

*

Portfolio composition is subject to change.

†

On October 7, 2008 and December 4, 2008 the Fund participated in the Treasury Money Market Guarantee Program and related extension. The Program is for shareholders as of September 19, 2008 and generally covers the lesser of the amount that the shareholder held on September 19 or the amount they hold on the date the fund needs to utilize the guarantee. If a shareholder closes their account with the Fund or broker dealer after September 19, any future investment in the Fund will not be guaranteed. The extended guarantee is through April 30, 2009, but may be further extended at the Treasury’s discretion.

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

HSBC INVESTOR FAMILY OF FUNDS 10

Portfolio Reviews

HSBC Investor Core Plus Fixed Income Portfolio

by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team

The HSBC Investor Fixed Income Fund (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The “total return” sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. The Portfolio employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

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

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

Market Commentary

The period was marked by a worsening of the credit crisis, which led to the failure of several financial institutions as well as federal bailouts for select banks and insurers. Liquidity in the credit markets and money markets evaporated in that environment, which led to a standstill in investment activity. Investors during the period favored the relative safety of Treasury securities and shunned all other fixed-income securities. Sector exposure in anything other than Treasury securities resulted in negative returns.

The main driver of the Fund’s underperformance relative to its benchmarks was its overweight positions in mortgage-backed and corporate securities. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. Although these securities offered attractive yields relative to Treasury bonds, they performed poorly as investors flocked to Treasuries and avoided other sectors of the bond market.*

For much of the period, the Fund focused on intermediate-term securities and maintained a duration slightly longer than that of its benchmarks. That strategy benefited the fund as such securities offered more attractive yields shorter-term issues.*

* Portfolio composition is subject to change.

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

11 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor High Yield Fixed Income Portfolio

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

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

Investment Concerns

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

Market Commentary

High-yield bonds performed poorly during the period under review, which was characterized by a severe economic slowdown and a deepening credit crisis that led to unprecedented moves by the U.S. government to attempt to shore up the economy and the financial system. Investors in that environment flocked to Treasury securities with extremely high levels of liquidity and safety, and shunned high-yield bonds due to fears that the companies issuing such bonds would default on their obligations. In addition, liquidity in the high-yield market was often extremely tight, making it difficult to buy and sell securities.

The Fund’s performance remained relatively in line or slightly under its benchmark indices during the period which was the result of several key strategies. Our decision to underweight the homebuilding, building products and financial sectors contributed to strong relative performance, as these industries suffered due to the weak economy, the credit crisis and the prolonged downturn in the housing market. We also overweighted the energy and utilities sectors. Energy prices soared during the first half of the period, and energy companies remained healthy despite a downturn in energy prices during the second half of the period. Additionally, we increased the Fund’s overall credit quality whenever possible. That benefited performance as investors favored higher-quality bonds.*

The Fund’s relatively large position in bonds of gaming companies dampened performance somewhat. As the economic environment deteriorated throughout the period, consumers cut back on their discretionary spending—hurting revenues among companies in the gaming sector.*

* Portfolio composition is subject to change.

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

HSBC INVESTOR FAMILY OF FUNDS 12

Portfolio Reviews

HSBC Investor Intermediate Duration Fixed Income Portfolio

by Halbis Capital Management (USA) Inc., U.S. Core Fixed Income Team

The HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Portfolio”) seeks to maximize total return, consistent with reasonable risk. The “total return” sought by the Fund consists of income earned on investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security. Under normal market conditions, the Portfolio invest at least 80% of its net assets in fixed income securities. The Portfolio expects to maintain an average portfolio duration with respect to fixed income securities of 3 to 6 years. The Portfolio employs Halbis Capital Management (USA) Inc. as subadviser to the Portfolio.

Investment Concerns

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

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

Market Commentary

The collapse of the subprime mortgage market led to the failure of several financial institutions during the period as the credit market dried up and lending activity froze. Other financial institutions, including banks and insurers, were rescued by federal bailouts. In that environment, investors fled to high-quality issues, favoring Treasury bonds over other securities in the fixed-income market.

The Fund underperformed its benchmarks in large part due to its focus on sectors other than Treasuries. Our strategy of emphasizing various types of “spread” bonds—bonds that offer higher yields than Treasuries—is designed to provide shareholders with greater income over time. However, such issues significantly underperformed during the period as investors shunned any fixed-income securities outside of the Treasury market.*

As investors sought liquidity and relative safety in short-term Treasury issues, the yield curve steepened and longer-term securities offered higher yields. The Fund maintained a duration slightly longer than that of its benchmarks. That strategy benefited the fund as such securities offered higher yields than shorter-term issues.*

* Portfolio composition is subject to change.

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

13 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Growth Portfolio

by Clark J. Winslow, Chief Executive Officer/Portfolio Manager
Justin H. Kelly, CFA, Managing Director/Portfolio Manager
R. Bart Wear CFA, Managing Director/Portfolio Manager

The HSBC Investor Growth Portfolio (the “Portfolio”) seeks long-term growth of capital by investing primarily in U.S. and foreign equity securities of high quality companies with market capitalization generally in excess of $2 billion, which the subadviser believes have the potential to generate superior levels of long-term profitability and growth. Effective May 12, 2008, Winslow Capital Management Inc, replaced Waddell & Reed Investment Management Company (Waddell & Reed) as subadviser.

Investment Concerns

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

Market Commentary

The subprime mortgage crisis continued to worsen during the period, forcing the federal government to bail out several failing financial institutions. That environment had a significantly negative impact on both the domestic and international equity markets.

The Fund’s returns relative to the benchmark benefited from its overweight position in the health care sector. Health care stocks outperformed the market as a whole—especially during the three months through September, which were among the most difficult of the 12-month period under review. Stock selection among financial services shares also benefited performance relative to the benchmark, despite the poor performance of the overall sector throughout the period.*

Stock selection in the consumer staples and technology sectors hurt performance relative to the benchmark. The Fund’s holdings in the energy sector hurt relative returns as well. Oil prices declined steeply off of July highs, and investors sold energy shares as a result.*

It is clear that the global economic outlook is negative. However, we see valuations for many companies at levels similar to those we encountered in late 2002 and early 2003. We remain focused on implementing our investment discipline: we will continue to focus on companies with strong potential future earnings growth, attractive absolute valuations, favorable risk/reward and downside protection, and catalysts/ inflection points to improve /sustain profitability or recognize value.

* Portfolio composition is subject to change.

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

HSBC INVESTOR FAMILY OF FUNDS 14

Portfolio Reviews

HSBC Investor International Equity Portfolio

by Kevin F. Simms

Co-CIO International Value Equities and Director of Research – Global and International Value Equities AllianceBernstein Investment Research and Management

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

Market Commentary

Investor worries about slowing global economic growth and further repercussions from the subprime mortgage crisis dominated financial markets during the period under review, contributing to the Fund’s negative performance. The U.S. and U.K. housing markets continued to decline, and banks worldwide suffered from exposure to problem assets related to the mortgage industry. Global stocks declined during the period as prospects for economic growth fell sharply.

The Fund’s sector selection hurt relative returns, due primarily to underweight positions in shares of consumer staples, medical and utilities firms. The Fund’s overweight position in financials also dragged on returns, as these companies suffered some of the period’s largest losses.*

Security selection weighed on the Fund’s performance relative to its benchmark. Key detractors included shares of U.K. banks with significant exposure to that country’s housing market. Meanwhile, softening consumer spending hurt performance among shares of certain automakers in the Fund’s portfolio. Those events cascaded through the supply chain, eventually weakening shares of some materials firms in the Fund’s portfolio.

The Fund’s investment in shares of certain securities enhanced its relative performance. Such securities included a major Japanese utility, a French financial services firm and a global energy company.*

* Portfolio composition is subject to change.

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

15 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

HSBC Investor Opportunity Portfolio

by William A. Muggia

President–Chief Investment Officer
Westfield Capital Management, LLC

The HSBC Investor Opportunity Fund (“the Fund”) seeks to provide its shareholders with long-term growth of capital by investing in equity securities of small cap companies. The Portfolio may also invest in bonds, notes, commercial paper, U.S. Government securities, and foreign securities. Small cap companies generally are defined as those that have market capitalizations within the range of market capitalizations represented in the Russell 2500™ Growth Index¹. The Portfolio may also invest in equity securities of larger, more established companies if they are expected to show increased earnings. The Portfolio employs Westfield Capital Management Company, LLC as subadviser.

Investment Concerns

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

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

Market Commentary

The fallout from the subprime mortgage crisis intensified during the 12 months under review, leading to larger credit and liquidity crises in the financial markets. Fears of U.S. and global recessions grew as a result, particularly toward the end of the period. Stocks of almost all kinds posted heavy losses.

The Fund benefited from holding a larger position than its benchmark in the health care sector. The Fund did not have a bullish view on the sector as a whole, but managed to identify a number of attractive investments in sub-sectors such as biotechnology and health care equipment, and those holdings helped relative performance. The Fund also held an underweight position in consumer discretionary stocks. Consumer discretionary proved to be the second-worst performing sector during the period, following only the financial services sector, so the Fund’s underweight position benefited relative performance.*

Stock selection within the industrial sector was the greatest drag on the Fund’s relative performance during the period. We believe that the pace of development in foreign countries would continue to increase, making shares of building and construction firms attractive. But stocks of such companies suffered as the economic woes in the United States spread globally. Stock selection in the financial services sector also weighed on returns relative to the benchmark.

The economic realities are grim, but we believe that this is largely reflected in stocks. Valuation levels of US stocks are well below their ten-year averages. Stocks have traded down as an asset class, with little regard for company specific prospects or fundamentals. We believe that once the financial markets have stabilized, we will look back on this period as an opportunity to invest in high quality growth companies trading at very attractive historical valuations. We remain focused on company fundamentals and are committed to upgrading quality in the portfolio wherever possible.

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

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

HSBC INVESTOR FAMILY OF FUNDS 16

Portfolio Reviews

HSBC Investor Value Portfolio

by Jon D. Bosse, CFA
Chief Investment Officer

NWQ Investment Management Company, LLC

The HSBC Investor Value Portfolio (the “Portfolio”) seeks long-term growth of capital and income by investing primarily in U.S. and foreign companies with large and medium capitalizations that the subadviser believes possess opportunities underappreciated or misperceived by the market. The Portfolio employs NWQ Investment Management Company, LLC (“NWQ”) as subadviser.

Investment Concerns

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

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

Market Commentary

U.S and Global Equity markets experienced significant declines during the period under review, with most of the decline occurring during the last weeks. This has been an unprecedented period and one of the most challenging investment environments in our country’s history. Given the crisis of confidence, the U.S. Government took decisive action regarding the fate of many companies. The U.S. Government has either: assumed control of companies; sponsored/engineered “takeovers;” or allowed companies to fail. In many cases, such events might signal a bottom and thereby provide a floor in equity valuations. However, the magnitude of recent events and continued economic deterioration combined with the realization that a company’s financial well-being could quickly evaporate, have heightened investor fears and market volatility. The U.S. Treasury/the Federal Reserve Board (as well as Central Banks broadly) have begun implementing broad and meaningful financial rescue measures in order to stabilize global markets.

There were few places to “hide” during the period under review; and most of the Fund’s holdings declined. The credit markets dysfunction has led to fear and panic, particularly within the financial sector. While the Fund was underweighted in the financial sector (relative to the Russell 1000^® Value Index¹), the sector adversely impacted absolute and relative performance. The Fund’s positions within the materials/processing sector adversely impacted the portfolio. These stocks came under pressure as commodity prices declined amid a deteriorating outlook for global growth. Oil and gas prices declined during the latter part of the period adversely affecting the Fund’s energy holdings. We would like to note that we reduced the energy position in Fund during the first half of the period — at higher share prices. Finally, the Fund’s consumer discretionary sector, primarily media, adversely impacted the portfolio. There were positive contributors during the period. One of the Fund’s health care companies, as well as the Fund’s railroad holding, appreciated during the period. Consumer staples contributed positively to the portfolio.*

It is clear that the global economic outlook is negative. However, we see valuations for many companies at levels similar to those we encountered in late 2002 and early 2003. We remain focused on implementing our investment discipline: we will continue to focus on companies with attractive absolute valuations, favorable risk/reward and downside protection, and catalysts/inflection points to improve/sustain profitability or recognize value.

It is clear that the global economic outlook is negative. However, we see valuations for many companies at levels similar to those we encountered in late 2002 and early 2003. We remain focused on implementing our investment discipline: we will continue to focus on companies with attractive absolute valuations, favorable risk/reward and downside protection, and catalysts/ inflection points to improve /sustain profitability or recognize value.

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

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

17 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

Portfolio Composition*

October 31, 2008

(Unaudited)

HSBC Investor Core Plus Fixed Income Portfolio
Investment Allocation	Percentage of Investments at Value
U.S. Government and Government Agency Obligations	33.4	%
Corporate Obligations	29.5	%
Asset Backed Securities	19.4	%
Commercial Mortgage Backed Securities	8.8	%
Collateralized Mortgage Obligations	4.5	%
Cash and Equivalents	2.1	%
Municipal Bonds	1.8	%
Foreign Bonds	0.4	%
Certificates of Deposit	0.1	%
Total	100.0	%

HSBC Investor High Yield Fixed Income Portfolio
Investment Allocation	Percentage of Investments at Value
Corporate Obligations	100.0	%
Common Stock	0.0	%
Total	100.0	%

HSBC Investor Intermediate Duration Fixed Income Portfolio
Investment Allocation	Percentage of Investments at Value
U.S. Government and Government Agency Obligations	42.6	%
Corporate Obligations	21.2	%
Asset Backed Securities	15.4	%
Cash and Equivalents	9.8	%
Commercial Mortgage Backed Securities	5.7	%
Collateralized Mortgage Obligations	4.0	%
Municipal Bonds	0.4	%
Foreign Bonds	0.4	%
Certificates of Deposit	0.5	%
Total	100.0	%

HSBC Investor Growth Portfolio
Investment Allocation	Percentage of Investments at Value
Biotechnology	7.8	%
Retail	7.2	%
Software Services	7.2	%
Industrial Conglomerates	6.8	%
Medical Services & Distributors	6.7	%
Medical Products	6.6	%
Cash and Equivalents	5.6	%
Telecommunication	5.3	%
Hardware & Peripherals	4.4	%
Credit Card	4.2	%
Communication Equipment	3.4	%
Railroad	3.3	%
Agriculture	3.0	%
Investment Management	2.5	%
Internet	2.3	%
Retail Pharmacy	2.3	%
Aerospace & Defense	2.3	%
Oil & Gas Drill & Equipment	2.1	%
Pharmaceuticals	2.1	%
Engineering & Construction	2.0	%
Distribution & Wholesale	1.8	%
Household Products	1.5	%
Exchanges	1.5	%
Oil & Gas Exploration & Production	1.4	%
Transportation	1.3	%
Computer Storage	1.1	%
Solar	1.0	%
Travel & Leisure	1.0	%
Electric, Gas & Water	0.8	%
Coal	0.8	%
Business Services	0.7	%
Total	100.0	%

HSBC International Equity Portfolio
Investment Allocation	Percentage of Investments at Value
Europe	66.9	%
Japan	18.6	%
Australia & Far East	6.2	%
Canada	5.1	%
Cash and Equivalents	2.4	%
Other	0.8	%
Total	100.0	%

HSBC INVESTOR FAMILY OF FUNDS 18

Portfolio Reviews

Portfolio Composition*

October 31, 2008

(Unaudited)

HSBC Investor Opportunity Portfolio
Investment Allocation	Percentage of Investments at Value
Computer Software	14.9	%
Pharmaceuticals	12.6	%
Oil & Gas	9.4	%
Health Care	8.1	%
Consumer Products	8.0	%
Industrial Manufacturing	5.7	%
Financial Services	5.4	%
Biotechnology	5.2	%
Education	4.7	%
Retail	4.7	%
Cash and Equivalents	3.7	%
Telecommunications	3.1	%
Diversified Manufacturing Operations	2.6	%
Transportation	2.3	%
Business Services	2.3	%
Utilities	1.4	%
Aerospace & Defense	1.4	%
Internet Related	1.4	%
Media	1.3	%
Homebuilders	1.3	%
Electronic Components & Semiconductors	0.5	%
Total	100.0	%

HSBC Investor Value Portfolio
Investment Allocation	Percentage of Investments at Value
Oil & Gas	11.8	%
Cash and Equivalents	9.7	%
Computer Software	9.2	%
Insurance	7.3	%
Telecommunications	6.6	%
Media	6.4	%
Metals & Mining	6.4	%
Consumer Products	6.0	%
Pharmaceuticals	5.9	%
Aerospace & Defense	5.4	%
Tobacco	4.5	%
Financial Services	4.2	%
Business Services	3.5	%
Banking	3.4	%
Conglomerates	2.5	%
Diversified Manufacturing Operations	2.4	%
Transportation	2.4	%
Energy	1.6	%
Paper & Related Products	0.8	%
Total	100.0	%

* Portfolio composition is subject to change.

19 HSBC INVESTOR FAMILY OF FUNDS

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HSBC INVESTOR LIFELINE FUNDS

Statements of Assets and Liabilities—As of October 31, 2008

	Aggressive Growth Strategy Fund			Growth Strategy Fund			Moderate Growth Strategy Fund			Conservative Growth Strategy Fund
Assets:
Investments in Affiliated Portfolios	$	7,993,224		$	24,179,015		$	26,458,188		$	7,559,224
Investments in Affiliated Fund, at value(a)		74,513			230,718			1,629,963			1,974,707
Total Investments		8,067,737			24,409,733			28,088,151			9,533,931
Receivable for capital shares issued		3,851			7,077			5,624			7,500
Reclaims receivable		2,950			10,161			7,960			239
Receivable from Investment Adviser		9,045			10,157			—			5,118
Prepaid expenses and other assets		5,593			4,609			5,367			3,808
Total Assets		8,089,176			24,441,737			28,107,102			9,550,596
Liabilities:
Payable for capital shares redeemed		1,340			12,018			43,732			—
Accrued expenses and other liabilities:
Investment Management		348			1,053			1,213			420
Administration		136			413			478			166
Distribution		2,314			6,855			8,989			3,136
Shareholder Servicing		1,754			5,292			6,092			2,110
Compliance Service		7			22			23			8
Transfer Agent		17,096			27,702			30,180			13,472
Trustee		9			27			28			11
Other		8,934			27,290			28,893			6,211
Total Liabilities		31,938			80,672			119,628			25,534
Net Assets	$	8,057,238		$	24,361,065		$	27,987,474		$	9,525,062
Composition of Net Assets:
Capital	$	11,673,697		$	33,631,352		$	37,025,703		$	12,010,124
Accumulated net investment income (loss)		—			117,076			—			—
Accumulated net realized gains (losses) from investment and foreign currency transactions		(962,096	)		(2,238,069	)		(2,057,829	)		(558,957	)
Unrealized appreciation/depreciation from investments and foreign currencies		(2,654,363	)		(7,149,294	)		(6,980,400	)		(1,926,105	)
Net Assets	$	8,057,238		$	24,361,065		$	27,987,474		$	9,525,062
Net Assets:
Class A Shares	$	4,572,025		$	13,908,165		$	14,225,654		$	4,747,154
Class B Shares		3,165,735			9,516,049			12,354,009			4,347,825
Class C Shares		319,478			936,851			1,407,811			430,083
	$	8,057,238		$	24,361,065		$	27,987,474		$	9,525,062
Shares Outstanding
($0.001 par value, unlimited number of shares authorized):
Class A Shares		530,382			1,579,475			1,636,612			536,918
Class B Shares		377,234			1,086,027			1,420,997			496,386
Class C Shares		38,091			106,453			165,887			47,798
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	8.62		$	8.81		$	8.69		$	8.84
Class B Shares*	$	8.39		$	8.76		$	8.69		$	8.76
Class C Shares*	$	8.39		$	8.80		$	8.49		$	9.00
Maximum Sales Charge — Class A Shares		5.00	%		5.00	%		5.00	%		5.00	%
Maximum Offering Price per share (Net Asset Value/(100%—maximum sales charge)) — Class A Shares	$	9.07		$	9.27		$	9.15		$	9.31
Investments in Affiliated Fund, at cost (a)	$	74,513		$	230,718		$	1,629,963		$	1,974,707

*	Redemption Price per share varies by length of time shares are held.
(a)	The investment in the affiliated fund are holdings of the HSBC Investor Prime Money Market Fund Class I Shares (See Note 1). The shares are held in the Fund are identical to value since it is at a $1.00 net asset value per share. In addition, value and cost for financial reporting and federal income tax purposes are the same.

21 HSBC INVESTOR LIFELINE FUNDS See notes to financial statements.

HSBC INVESTOR LIFELINE FUNDS

Statements of Operations—For the year ended October 31, 2008

	Aggressive Growth Strategy Fund			Growth Strategy Fund			Moderate Growth Strategy Fund			Conservative Growth Strategy Fund
Investment Income:
Investment Income from Affiliated Portfolios (a)	$	200,481		$	850,561		$	1,135,367		$	370,160
Investment Income from Affiliated Fund		3,956			11,215			72,600			81,348
Tax reclaims (a)		2,950			10,161			7,960			239
Foreign tax withholding from Affiliated Portfolios (a)		(14,909	)		(35,955	)		(29,356	)		(6,324	)
Expenses from Affiliated Portfolios (a)		(87,214	)		(237,243	)		(241,779	)		(67,484	)
Total Investment Income (Loss)		105,264			598,739			944,792			377,939
Expenses:
Investment Management		5,924			16,836			18,382			5,975
Administration		2,523			7,185			7,842			2,547
Distribution:
Class B Shares		34,993			96,743			119,950			38,520
Class C Shares		3,652			9,519			13,455			3,703
Shareholder Servicing:
Class A Shares		16,738			48,760			47,443			15,799
Class B Shares		11,664			32,248			39,983			12,840
Class C Shares		1,217			3,173			4,485			1,235
Accounting		23,499			23,499			23,499			23,787
Compliance Service		50			142			155			52
Printing		15,164			40,963			44,685			17,393
Professional fees		360			1,008			1,117			4,373
Transfer Agent		59,513			92,864			98,260			46,935
Trustee		174			494			536			176
Registration fees		187			545			577			168
Other		10,548			10,443			14,175			7,197
Total expenses before fee reductions		186,206			384,422			434,544			180,700
Fees reduced by Investment Adviser		(57,390	)		(11,222	)		—			(26,936	)
Net Expenses		128,816			373,200			434,544			153,764
Net Investment Income (Loss)		(23,552	)		225,539			510,248			224,175
Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized losses from investments and foreign currency transactions		(1,008,442	)		(2,323,453	)		(2,119,789	)		(572,415	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		(4,611,582	)		(12,045,449	)		(11,008,540	)		(2,729,503	)
Net realized/unrealized gains/losses from investments and foreign currency transactions		(5,620,024	)		(14,368,902	)		(13,128,329	)		(3,301,918	)
Change In Net Assets Resulting From Operations	$	(5,643,576	)	$	(14,143,363	)	$	(12,618,081	)	$	(3.077,743	)

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

See notes to financial statements. HSBC INVESTOR LIFELINE FUNDS 22

HSBC INVESTOR LIFELINE FUNDS

Statements of Changes in Net Assets

	Aggressive Growth Strategy Fund						Growth Strategy Fund
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	(23,552	)	$	(35,215	)	$	225,539		$	155,873
Net realized gains (losses) from investment transactions		(1,008,442	)		810,981			(2,323,453	)		1,888,561
Change in unrealized appreciation/depreciation from investments and foreign currencies		(4,611,582	)		1,335,250			(12,045,449	)		3,251,636
Change in net assets resulting from operations		(5,643,576	)		2,111,016			(14,143,363	)		5,296,070
Dividends:
Net investment income:
Class A Shares		—			—			(137,880	)		(91,507	)
Class B Shares		—			—			(1,259	)		(11,110	)
Class C Shares		—			—			(816	)		(784	)
Net realized gains:
Class A Shares		(420,292	)		—			(1,103,525	)		(94,565	)
Class B Shares		(302,904	)		—			(702,526	)		(64,734	)
Class C Shares		(31,294	)		—			(63,975	)		(5,227	)
Return of Capital:
Class A Shares		(1,758	)		—			—			—
Class B Shares		(1,250	)		—			—			—
Class C Shares		(126	)		—			—			—
Change in net assets resulting from shareholder dividends		(757,624	)		—			(2,009,981	)		(267,927	)
Change in net assets resulting from capital transactions		1,942,878			3,061,815			3,984,572			9,652,802
Change in net assets		(4,458,322	)		5,172,831			(12,168,772	)		14,680,945
Net Assets:
Beginning of period		12,515,560			7,342,729			36,529,837			21,848,892
End of period	$	8,057,238		$	12,515,560		$	24,361,065		$	36,529,837
Accumulated net investment income (loss)	$	—		$	(4,459	)	$	117,076		$	112,089

23 HSBC INVESTOR LIFELINE FUNDS See notes to financial statements.

HSBC INVESTOR LIFELINE FUNDS

Statements of Changes in Net Assets (continued)

	Aggressive Growth Strategy Fund						Growth Strategy Fund
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,808,587		$	2,836,042		$	4,094,924		$	7,969,359
Dividends reinvested		421,632			—			1,235,211			185,652
Value of shares redeemed		(1,135,189	)		(1,111,410	)		(3,486,779	)		(2,339,143	)
Class A Shares capital transactions		1,095,030			1,724,632			1,843,356			5,815,868
Class B Shares:
Proceeds from shares issued		1,075,628			1,516,999			2,700,023			4,252,061
Dividends reinvested		303,827			—			701,613			75,546
Value of shares redeemed		(597,445	)		(405,168	)		(1,552,870	)		(1,033,237	)
Class B Shares capital transactions		782,010			1,111,831			1,848,766			3,294,370
Class C Shares:
Proceeds from shares issued		160,943			328,562			471,136			768,456
Dividends reinvested		31,420			—			64,791			6,011
Value of shares redeemed		(126,525	)		(103,210	)		(243,477	)		(231,903	)
Class C Shares capital transactions		65,838			225,352			292,450			542,564
Change in net assets resulting from capital transactions	$	1,942,878		$	3,061,815		$	3,984,572		$	9,652,802
SHARE TRANSACTIONS:
Class A Shares:
Issued		140,000			206,802			323,501			599,873
Reinvested		30,686			—			93,719			14,632
Redeemed		(93,561	)		(81,057	)		(287,477	)		(173,704	)
Change in Class A Shares		77,125			125,745			129,743			440,801
Class B Shares:
Issued		84,358			112,606			218,579			318,815
Reinvested		22,556			—			53,152			5,949
Redeemed		(53,351	)		(29,929	)		(133,643	)		(77,193	)
Change in Class B Shares		53,563			82,677			138,088			247,571
Class C Shares:
Issued		12,747			24,063			37,995			56,478
Reinvested		2,334			—			4,890			471
Redeemed		(11,560	)		(7,943	)		(22,815	)		(17,406	)
Change in Class C Shares		3,521			16,120			20,070			39,543

See notes to financial statements. HSBC INVESTOR LIFELINE FUNDS 24

HSBC INVESTOR LIFELINE FUNDS

Statements of Changes in Net Assets (continued)

	Moderate Growth Strategy Fund						Conservative Growth Strategy Fund
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	510,248		$	409,400		$	224,175		$	168,893
Net realized gains (losses) from investment transactions		(2,119,789	)		1,499,302			(572,415	)		267,881
Change in unrealized appreciation/depreciation from investments and foreign currencies		(11,008,540	)		2,609,124			(2,729,503	)		433,433
Change in net assets resulting from operations		(12,618,081	)		4,517,826			(3,077,743	)		870,207
Dividends:
Net investment income:
Class A Shares		(306,761	)		(262,090	)		(141,579	)		(94,234	)
Class B Shares		(139,765	)		(132,843	)		(79,044	)		(56,207	)
Class C Shares		(16,616	)		(11,916	)		(7,481	)		(6,383	)
Net realized gains:
Class A Shares		(772,146	)		(107,302	)		(146,067	)		(34,028	)
Class B Shares		(634,501	)		(94,696	)		(110,864	)		(29,598	)
Class C Shares		(74,952	)		(6,378	)		(9,305	)		(3,582	)
Return of Capital:
Class A Shares		(20,619	)		—			(262	)		—
Class B Shares		(17,902	)		—			(242	)		—
Class C Shares		(2,090	)		—			(23	)		—
Change in net assets resulting from shareholder dividends		(1,985,352	)		(615,225	)		(494,867	)		(224,032	)
Change in net assets resulting from capital transactions		4,171,062			11,050,090			1,063,369			5,431,997
Change in net assets		(10,432,371	)		14,952,691			(2,509,241	)		6,078,172
Net Assets:
Beginning of period		38,419,845			23,467,154			12,034,303			5,956,131
End of period	$	27,987,474		$	38,419,845		$	9,525,062		$	12,034,303
Accumulated net investment income (loss)	$	—		$	14,138		$	—		$	18,083

25 HSBC INVESTOR LIFELINE FUNDS See notes to financial statements.

HSBC INVESTOR LIFELINE FUNDS

Statements of Changes in Net Assets (continued)

	Moderate Growth Strategy Fund						Conservative Growth Strategy Fund
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	4,477,845		$	7,912,763		$	1,702,567		$	1,988,365
Proceeds from shares issued in conversion		—			—			—			1,774,237
Dividends reinvested		1,096,649			366,055			277,201			127,648
Value of shares redeemed		(3,953,091	)		(2,131,003	)		(2,025,309	)		(631,447	)
Class A Shares capital transactions		1,621,403			6,147,815			(45,541	)		3,258,803
Class B Shares:
Proceeds from shares issued		3,948,083			4,788,564			1,595,118			1,387,844
Proceeds from shares issued in conversion		—			—			—			981,527
Dividends reinvested		790,250			226,308			183,107			84,374
Value of shares redeemed		(2,551,316	)		(966,698	)		(813,124	)		(366,939	)
Class B Shares capital transactions		2,187,017			4,048,174			965,101			2,086,806
Class C Shares:
Proceeds from shares issued		778,453			1,158,749			203,099			109,629
Proceeds from shares issued in conversion		—			—			—			23,289
Dividends reinvested		93,634			18,281			16,809			9,965
Value of shares redeemed		(509,445	)		(322,929	)		(76,099	)		(56,495	)
Class C Shares capital transactions		362,642			854,101			143,809			86,388
Change in net assets resulting from capital transactions	$	4,171,062		$	11,050,090		$	1,063,369		$	5,431,997
SHARE TRANSACTIONS:
Class A Shares:
Issued		382,474			638,805			157,831			172,826
Issued in conversion		—			—			—			148,136
Reinvested		91,761			29,777			25,060			11,167
Redeemed		(355,687	)		(173,246	)		(199,713	)		(54,690	)
Change in Class A Shares		118,548			495,336			(16,822	)		277,439
Class B Shares:
Issued		340,238			387,531			148,878			121,528
Issued in conversion		—			—			—			82,738
Reinvested		65,629			18,521			16,609			7,465
Redeemed		(229,160	)		(77,311	)		(81,932	)		(31,991	)
Change in Class B Shares		176,707			328,741			83,555			179,740
Class C Shares:
Issued		68,169			95,099			18,026			9,224
Issued in conversion		—			—			—			1,922
Reinvested		7,964			1,520			1,489			864
Redeemed		(46,372	)		(27,016	)		(7,369	)		(4,861	)
Change in Class C Shares		29,761			69,603			12,146			7,149

See notes to financial statements. HSBC INVESTOR LIFELINE FUNDS 26

HSBC INVESTOR AGGRESSIVE GROWTH STRATEGY FUND

Financial Highlights

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

			Investment Activities									Dividends
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gains (Losses) from Investment Transactions			Total from Investment Activities			Net Realized Gains from Investment Transactions			Total Dividends			Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(h)	$	10.00		(0.01	)		0.61			0.60			—			—		$	10.60
Year Ended October 31, 2006		10.60		0.01			2.01			2.02			(0.05	)		(0.05	)		12.57
Year Ended October 31, 2007		12.57		—	*(g)		2.98			2.98			—			—			15.55
Year Ended October 31, 2008		15.55		0.02	*		(6.05	)		(6.03	)		(0.90	)		(0.90	)		8.62
CLASS B SHARES
Period Ended October 31, 2005(i)	$	10.00		(0.04	)		0.61			0.57			—			—		$	10.57
Year Ended October 31, 2006		10.57		(0.05	)		1.97			1.92			(0.05	)		(0.05	)		12.44
Year Ended October 31, 2007		12.44		(0.11	)*		2.94			2.83			—			—			15.27
Year Ended October 31, 2008		15.27		(0.08	)*		(5.90	)		(5.98	)		(0.90	)		(0.90	)		8.39
CLASS C SHARES
Period Ended October 31, 2005(j)	$	10.00		(0.05	)		0.60			0.55			—			—		$	10.55
Year Ended October 31, 2006		10.55		(0.04	)		1.95			1.91			(0.05	)		(0.05	)		12.41
Year Ended October 31, 2007		12.41		(0.11	)*		2.96			2.85			—			—			15.26
Year Ended October 31, 2008		15.26		(0.08	)*		(5.89	)		(5.97	)		(0.90	)		(0.90	)		8.39

				Ratios/Supplementary Data
	Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income (Loss) to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(h)		6.00	%	$	726		1.50	%		(0.20	)%		11.72	%		49.10	%
Year Ended October 31, 2006		19.15	%		4,116		1.50	%		0.05	%		3.52	%		48.46	%
Year Ended October 31, 2007		23.71	%		7,046		1.50	%		(0.03	)%		2.27	%		45.50	%
Year Ended October 31, 2008		(40.92	)%(f)		4,572		1.50	%		0.13	%		1.98	%		72.33	%
CLASS B SHARES
Period Ended October 31, 2005(i)		5.70	%	$	700		2.25	%		(1.01	)%		11.63	%		49.10	%
Year Ended October 31, 2006		18.25	%		2,998		2.25	%		(0.70	)%		4.33	%		48.46	%
Year Ended October 31, 2007		22.75	%		4,942		2.25	%		(0.77	)%		3.02	%		45.50	%
Year Ended October 31, 2008		(41.36	)%(f)		3,166		2.25	%		(0.62	)%		2.73	%		72.33	%
CLASS C SHARES
Period Ended October 31, 2005(j)		5.50	%	$	21		2.25	%		(1.15	)%		9.79	%		49.10	%
Year Ended October 31, 2006		18.19	%		229		2.25	%		(0.69	)%		4.20	%		48.46	%
Year Ended October 31, 2007		22.97	%		528		2.25	%		(0.79	)%		2.99	%		45.50	%
Year Ended October 31, 2008		(41.32	)%(f)		319		2.25	%		(0.64	)%		2.73	%		72.33	%

*	Calculated based on average shares outstanding.
(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.
(f)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests in received certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.11%, 0.11% and 0.11% for Class A Shares, Class B Shares and Class C Shares, respectively.
(g)	Rounds to less than $0.01.
(h)	Class A Shares commenced operations on February 14, 2005.
(i)	Class B Shares commenced operations on February 9, 2005.
(j)	Class C Shares commenced operations on June 9, 2005.

27 HSBC INVESTOR LIFELINE FUNDS See notes to financial statements.

HSBC INVESTOR GROWTH STRATEGY FUND

Financial Highlights

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

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends		Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(f)		$	10.00	0.02		0.70		0.72		—		—		—			$	10.72
Year Ended October 31, 2006			10.72	0.07		1.69		1.76		—		(0.03	)	(0.03	)			12.45
Year Ended October 31, 2007			12.45	0.11	*	2.34		2.45		(0.08	)	(0.09	)	(0.17	)			14.73
Year Ended October 31, 2008			14.73	0.12	*	(5.21	)	(5.09	)	(0.09	)	(0.74	)	(0.83	)			8.81
CLASS B SHARES
Period Ended October 31, 2005(i)		$	10.00	(0.01	)	0.79		0.78		—		—		—			$	10.78
Year Ended October 31, 2006			10.78	0.02		1.66		1.68		—		(0.03	)	(0.03	)			12.43
Year Ended October 31, 2007			12.43	0.01	*	2.34		2.35		(0.02	)	(0.09	)	(0.11	)			14.67
Year Ended October 31, 2008			14.67	0.03	*	(5.20	)	(5.17	)	—	(k)	(0.74	)	(0.74	)			8.76
CLASS C SHARES
Period Ended October 31, 2005(j)		$	10.00	(0.02	)	0.84		0.82		—		—		—			$	10.82
Year Ended October 31, 2006			10.82	0.02		1.67		1.69		—		(0.03	)	(0.03	)			12.48
Year Ended October 31, 2007			12.48	0.01	*	2.35		2.36		(0.01	)	(0.09	)	(0.10	)			14.74
Year Ended October 31, 2008			14.74	0.03	*	(5.22	)	(5.19	)	(0.01	)	(0.74	)	(0.75	)			8.80

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(f)	7.20	%		$	2,814	1.50	%	0.42	%	5.19	%	69.23	%
Year Ended October 31, 2006	16.41	%			12,562	1.50	%	0.87	%	2.19	%	80.30	%
Year Ended October 31, 2007	19.92	%(g)			21,352	1.50	%	0.84	%	1.65	%	73.45	%
Year Ended October 31, 2008	(36.43	)%(h)			13,908	1.50	%	0.98	%	1.53	%	78.59	%
CLASS B SHARES
Period Ended October 31, 2005(i)	7.80	%		$	2,670	2.25	%	(0.38	)%	5.74	%	69.23	%
Year Ended October 31, 2006	15.57	%			8,702	2.25	%	0.11	%	2.94	%	80.30	%
Year Ended October 31, 2007	18.98	%(g)			13,905	2.25	%	0.09	%	2.40	%	73.45	%
Year Ended October 31, 2008	(36.95	)%(h)			9,516	2.25	%	0.24	%	2.28	%	78.59	%
CLASS C SHARES
Period Ended October 31, 2005(j)	8.20	%		$	106	2.25	%	(0.55	)%	5.24	%	69.23	%
Year Ended October 31, 2006	15.61	%			585	2.25	%	0.14	%	2.90	%	80.30	%
Year Ended October 31, 2007	19.04	%(g)			1,273	2.25	%	0.07	%	2.39	%	73.45	%
Year Ended October 31, 2008	(36.94	)%(h)			937	2.25	%	0.25	%	2.29	%	78.59	%

*	Calculated based on average shares outstanding.
(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.
(f)	Class A Shares commenced operations on February 8, 2005.
(g)	During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.23%, 0.24% and 0.23% for Class A Shares, Class B Shares and Class C Shares, respectively.
(h)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests in 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.
(i)	Class B Shares commenced operations on February 1, 2005.
(j)	Class C Shares commenced operations on April 27, 2005.
(k)	Rounds to less than $0.01.

See notes to financial statements. HSBC INVESTOR LIFELINE FUNDS 28

HSBC INVESTOR MODERATE GROWTH STRATEGY FUND

Financial Highlights

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

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Return of Capital		Total Dividends		Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(f)		$	10.00	0.04		0.45		0.49		—	(g)	—		—		—	(g)		$	10.49
Year Ended October 31, 2006			10.49	0.17		1.23		1.40		(0.17	)	(0.01	)	—		(0.18	)			11.71
Year Ended October 31, 2007			11.71	0.21	*	1.65		1.86		(0.20	)	(0.10	)	—		(0.30	)			13.27
Year Ended October 31, 2008			13.27	0.20	*	(4.08	)	(3.88	)	(0.19	)	(0.50	)	(0.01	)	(0.70	)			8.69
CLASS B SHARES
Period Ended October 31, 2005(j)		$	10.00	0.01		0.49		0.50		—	(g)	—		—		—	(g)		$	10.50
Year Ended October 31, 2006			10.50	0.09		1.22		1.31		(0.08	)	(0.01	)	—		(0.09	)			11.72
Year Ended October 31, 2007			11.72	0.12	*	1.65		1.77		(0.12	)	(0.10	)	—		(0.22	)			13.27
Year Ended October 31, 2008			13.27	0.11	*	(4.08	)	(3.97	)	(0.10	)	(0.50	)	(0.01	)	(0.61	)			8.69
CLASS C SHARES
Period Ended October 31, 2005(k)		$	10.00	—	(g)	0.28		0.28		—		—		—		—			$	10.28
Year Ended October 31, 2006			10.28	0.09		1.19		1.28		(0.08	)	(0.01	)	—		(0.09	)			11.47
Year Ended October 31, 2007			11.47	0.12	*	1.60		1.72		(0.12	)	(0.10	)	—		(0.22	)			12.97
Year Ended October 31, 2008			12.97	0.11	*	(3.97	)	(3.86	)	(0.11	)	(0.50	)	(0.01	)	(0.62	)			8.49

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(f)	4.94	%		$	3,241	1.50	%	0.95	%	4.30	%	84.55	%
Year Ended October 31, 2006	13.40	%			11,973	1.50	%	1.65	%	2.12	%	101.57	%
Year Ended October 31, 2007	16.12	%(h)			20,140	1.50	%	1.70	%	1.60	%	92.87	%
Year Ended October 31, 2008	(30.65	)%(i)			14,226	1.48	%	1.75	%	1.48	%	79.86	%
CLASS B SHARES
Period Ended October 31, 2005(j)	5.03	%		$	3,604	2.25	%	0.18	%	5.01	%	84.55	%
Year Ended October 31, 2006	12.45	%			10,731	2.25	%	0.91	%	2.87	%	101.57	%
Year Ended October 31, 2007	15.25	%(h)			16,513	2.25	%	0.95	%	2.35	%	92.87	%
Year Ended October 31, 2008	(31.17	)%(i)			12,354	2.23	%	1.00	%	2.23	%	79.86	%
CLASS C SHARES
Period Ended October 31, 2005(k)	2.80	%		$	278	2.25	%	0.05	%	4.69	%	84.55	%
Year Ended October 31, 2006	12.53	%			763	2.25	%	0.87	%	2.83	%	101.57	%
Year Ended October 31, 2007	15.20	%(h)			1,766	2.25	%	0.95	%	2.33	%	92.87	%
Year Ended October 31, 2008	(31.09	)%(i)			1,408	2.23	%	1.00	%	2.23	%	79.86	%

*	Calculated based on average shares outstanding.
(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.
(f)	Class A Shares commenced operations on February 3, 2005.
(g)	Rounds to less than $0.01.
(h)	During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.41%, 0.41% and 0.33% for Class A Shares, Class B Shares and Class C Shares, respectively.
(i)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively.
(j)	Class B Shares commenced operations on February 1, 2005.
(k)	Class C Shares commenced operations on June 9, 2005.

29 HSBC INVESTOR LIFELINE FUNDS See notes to financial statements.

HSBC INVESTOR CONSERVATIVE GROWTH STRATEGY FUND

Financial Highlights

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

				Investment Activities						Dividends
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) from Investment Transactions		Total from Investment Activities		Net Investment Income		Net Realized Gains from Investment Transactions		Total Dividends		Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(i)		$	10.00	0.04		0.26		0.30		(0.01	)	—		(0.01	)		$	10.29
Year Ended October 31, 2006			10.29	0.22		0.85		1.07		(0.25	)	—		(0.25	)			11.11
Year Ended October 31, 2007			11.11	0.29	*	1.03		1.32		(0.27	)	(0.12	)	(0.39	)			12.04
Year Ended October 31, 2008			12.04	0.24	*	(2.93	)	(2.69	)	(0.25	)	(0.26	)	(0.51	)			8.84
CLASS B SHARES
Period Ended October 31, 2005(j)		$	10.00	0.03		0.16		0.19		—	(f)	—		—	(f)		$	10.19
Year Ended October 31, 2006			10.19	0.15		0.83		0.98		(0.16	)	—		(0.16	)			11.01
Year Ended October 31, 2007			11.01	0.20	*	1.05		1.25		(0.20	)	(0.12	)	(0.32	)			11.94
Year Ended October 31, 2008			11.94	0.16	*	(2.91	)	(2.75	)	(0.17	)	(0.26	)	(0.43	)			8.76
CLASS C SHARES
Period Ended October 31, 2005(k)		$	10.00	0.03		0.38		0.41		—		—		—			$	10.41
Year Ended October 31, 2006			10.41	0.15		0.85		1.00		(0.17	)	—		(0.17	)			11.24
Year Ended October 31, 2007			11.24	0.21	*	1.11		1.32		(0.19	)	(0.12	)	(0.31	)			12.25
Year Ended October 31, 2008			12.25	0.16	*	(2.98	)	(2.82	)	(0.17	)	(0.26	)	(0.43	)			9.00

			Ratios/Supplementary Data
	Total Return(b)		Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)		Ratio of Net Investment Income (Loss) to Average Net Assets(c)		Ratio of Expenses to Average Net Assets(c)(d)		Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(i)	2.96	%	$	1,054	1.50	%	1.28	%	8.01	%	72.14	%
Year Ended October 31, 2006	10.48	%		3,069	1.50	%	2.33	%	3.22	%	96.58	%
Year Ended October 31, 2007	12.13	%(g)		6,669	1.50	%	2.52	%	2.06	%	88.67	%
Year Ended October 31, 2008	(23.17	)%(h)		4,747	1.50	%	2.24	%	1.72	%	68.74	%
CLASS B SHARES
Period Ended October 31, 2005(j)	1.92	%	$	1,306	2.25	%	0.53	%	9.21	%	72.14	%
Year Ended October 31, 2006	9.65	%		2,567	2.25	%	1.54	%	3.98	%	96.58	%
Year Ended October 31, 2007	11.51	%(g)		4,928	2.25	%	1.77	%	2.82	%	88.67	%
Year Ended October 31, 2008	(23.76	)%(h)		4,348	2.25	%	1.48	%	2.48	%	68.74	%
CLASS C SHARES
Period Ended October 31, 2005(k)	4.10	%	$	82	2.25	%	0.66	%	7.94	%	72.14	%
Year Ended October 31, 2006	9.66	%		320	2.25	%	1.56	%	3.92	%	96.58	%
Year Ended October 31, 2007	11.97	%(g)		437	2.25	%	1.78	%	2.85	%	88.67	%
Year Ended October 31, 2008	(23.73	)%(h)		430	2.25	%	1.46	%	2.48	%	68.74	%

*	Calculated based on average shares outstanding.
(a)	The per share amounts and percentages reflect income and expenses assuming inclusion of the Fund’s proportionate share of the income and expenses of the applicable HSBC Investor Portfolios.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During the period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios by the corresponding Portfolio’s portfolio turnover rates. Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.
(f)	Rounds to less than $0.01.
(g)	During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.44%, 0.47% and 0.48% for Class A Shares, Class B Shares and Class C Shares, respectively.
(h)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests in received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively.
(i)	Class A Shares commenced operations on February 23, 2005.
(j)	Class B Shares commenced operations on February 17, 2005.
(k)	Class C Shares commenced operations on April 19, 2005.

See notes to financial statements. HSBC INVESTOR LIFELINE FUNDS 30

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008

1.

Organization:

The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of October 31, 2008, the Trust is comprised of 19 separate operational funds, each a series of the HSBC Investor Family of Funds. The accompanying financial statements are presented for the following 4 funds (individually a “Fund”, collectively the “LifeLine Funds”):

Fund	Short Name
HSBC Investor Aggressive Growth Strategy Fund	Aggressive Growth Fund
HSBC Investor Growth Strategy Fund	Growth Strategy Fund
HSBC Investor Moderate Growth Strategy Fund	Moderate Growth Fund
HSBC Investor Conservative Growth Strategy Fund	Conservative Growth Fund

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

          The HSBC Investor Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio,” collectively the “Portfolios”) are each diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements.

          The HSBC Investor Prime Money Market Fund (the “Prime Money Market Fund”) is an open-end management investment company and is a diversified series of the Trust.

          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 LifeLine Funds.

          The LifeLine Funds utilize a master-feeder fund structure and seek to achieve its investment objectives by investing all of its investable assets in the Portfolios and the Prime Money Market Fund (collectively the “Underlying Portfolios”) as follows:

LifeLine Funds Portfolio Weightings

Underlying Portfolios	Aggressive Growth Fund			Growth Strategy Fund			Moderate Growth Fund			Conservative Growth Fund
Core Plus Fixed Income Portfolio		None			14	%		25	%		25	%
High Yield Fixed Income Portfolio		None			2	%		5	%		8	%
Intermediate Duration Fixed Income Portfolio		None			None			None			3	%
Growth Portfolio		21	%		21	%		19	%		15	%
International Equity Portfolio		23	%		20	%		16	%		10	%
Opportunity Portfolio		34	%		21	%		11	%		4	%
Value Portfolio		21	%		21	%		18	%		14	%
Prime Money Market Fund		1	%		1	%		6	%		21	%
Total		100	%		100	%		100	%		100	%

31 HSBC INVESTOR LIFELINE FUNDS

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

LifeLine Funds Portfolio Investments

Underlying Portfolios	Aggressive Growth Fund		Growth Strategy Fund		Moderate Growth Fund		Conservative Growth Fund
Core Plus Fixed Income Portfolio	$	—	$	3,514,143	$	7,079,763	$	2,329,883
High Yield Fixed Income Portfolio		—		468,980		1,362,730		746,240
Intermediate Duration Fixed Income Portfolio		—		—		—		279,768
Growth Portfolio		1,691,953		5,169,383		5,435,928		1,468,786
International Equity Portfolio		1,841,669		4,892,903		4,265,057		973,151
Opportunity Portfolio		2,775,443		4,988,081		3,188,581		396,836
Value Portfolio		1,684,159		5,145,525		5,126,129		1,364,560
Prime Money Market Fund		74,513		230,718		1,629,963		1,974,707
Total	$	8,067,737	$	24,409,733	$	28,088,151	$	9,533,931

	The LifeLine Funds are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. Each Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. Class A Shares of the Aggressive Growth Fund, Growth Strategy Fund, Moderate Growth Fund, and the Conservative Growth Fund have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the LifeLine 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 LifeLine 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. Each class of shares in the LifeLine 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 privileges of each class of shares.
	Under the Trust’s organizational documents, the LifeLine Funds’ Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the LifeLine Funds. In addition, in the normal course of business, the LifeLine Funds enter into contracts with its service providers, which also provide for indemnifications by the LifeLine Funds. The LifeLine Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the LifeLine Funds. However, based on experience, the LifeLine Funds expect that risk of loss to be remote.
2.	Significant Accounting Policies:
	The following is a summary of the significant accounting policies followed by the LifeLine Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
	Securities Valuation:
	The LifeLine Funds record their investments in the Underlying Portfolios at fair value. The LifeLine Funds record their investments in the Prime Money Market Fund at the respective net asset value reported by the fund. The underlying securities of the Portfolios and the Prime Money Market Fund are recorded at fair value and at amortized cost, respectively, as more fully discussed in the notes to those financial statements.
	Investment Transactions and Related Income:
	The LifeLine Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolio. Dividend income is recorded on the ex-dividend date for the Prime Money Market Fund. Changes in holdings of the Prime Money Market Fund for each LifeLine Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Prime Money Market Fund are reflected as of trade date. In addition, the LifeLine Funds accrue their own expenses daily as incurred.

HSBC INVESTOR LIFELINE FUNDS 32

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

Allocations:

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

Dividends to Shareholders:

          Dividends from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Growth Fund and Conservative Growth Fund, and annually in the case of the Aggressive Growth Fund and Growth Strategy Fund.

          The LifeLine Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the LifeLine 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 LifeLine 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.

Redemption Fee:

          A redemption fee of 2.00% will be charged and recorded as paid-in-capital for any shares redeemed or exchanged after holding them for less than 30 days. This fee does not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that cannot implement the fee. For the fiscal years ended October 31, 2007 and October 31, 2008, respective of the following LifeLine Funds collected redemption fees as follows:

Fund	Fees Collected October 31, 2007			Fees Collected October 31, 2008
Aggressive Growth Fund		$	1,573		$	119
Growth Strategy Fund			729			1,152
Moderate Growth Fund			515			187
Conservative Growth Fund			1,305			2,849

Federal Income Taxes:

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

          In addition, effective April 30, 2008, the Funds adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities in all major tax jurisdictions, including federal (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Funds’ net assets or results of operations.

33 HSBC INVESTOR LIFELINE FUNDS

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

	New Accounting Pronouncements:
	In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Effective November 1, 2008 the Trust adopted SFAS No. 157. The adoption of this standard did not have an impact to the net assets or results of operations of the Fund, however, additional disclosures will be required about the inputs used to develop fair value measurements and the effect of certain measurements on the changes in net assets in fiscal reporting periods subsequent to the adoption date.
	In March 2008, the FASB issued the SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Lifeline Funds financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Fund’s financial statements and related disclosures.
3.	Related Party Transactions:
	Investment Management:
	HSBC 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 LifeLine Funds. As Investment Adviser, HSBC manages the investments of the LifeLine Funds and continuously reviews, supervises and administers the LifeLine Funds’ investments. For its services as Investment Adviser, HSBC is entitled to receive a fee, computed daily and paid monthly, based on average daily net assets, at an annual rate of 0.05% for each Fund.
	Administration:
	HSBC serves the LifeLine Funds as Administrator. Under the terms of the Administration Agreement, HSBC receives from the LifeLine Funds a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $12 billion	0.0525%
In excess of $12 billion	0.0350%

          The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in Underlying Portfolios by LifeLine Funds, the Portfolios pay half of the administration fee and the LifeLine Funds pay half, for a combination of the total fee rate above.

          The administration fees accrued for each class by Fund, of which 50% of such fees are deemed to be class specific, are as follows:

	Aggressive Growth Strategy Fund			Growth Strategy Fund			Moderate Growth Fund			Conservative Growth Fund
Class A		$	1,432		$	4,101		$	3,986		$	1,270
Class B			991			2,808			3,461			1,163
Class C			100			276			395			114
Total		$	2,523		$	7,185		$	7,842		$	2,547

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

HSBC INVESTOR LIFELINE FUNDS 34

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

          Under a Compliance Services Agreement between the Trusts and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Trusts’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $250,800 for the year ended October 31, 2008, plus reimbursement of certain out of pocket expenses. Expenses incurred are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio.

Distribution Plan:

          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 “Plan”) pursuant to Rule 12b-1 of the Act. The Plan provides for reimbursement of expenses incurred by the Distributor related to distribution and marketing, at a rate not to exceed 0.25%, 1.00%, and 1.00% of the average daily net assets of Class A Shares (currently not being charged), Class B Shares (currently charging 0.75%), and Class C Shares (currently charging 0.75%) of the LifeLine Funds, respectively. Foreside, as Distributor, also received $609,707, $380,866 and $21,569 in commissions from sales of HSBC Investor Family of Funds, for Class A Shares, Class B Shares, and Class C Shares, respectively of which $433,949, $280,535, and $14,592 were reallowed to affiliated brokers and dealers, for Class A Shares, Class B Shares, and Class C Shares, respectively.

Shareholder Servicing:

          The Trust has adopted an Shareholder Services Plan, formerly known as Administrative Service Plan, which provides for payments to Shareholder Servicing Agents (which currently consist of HSBC and its affiliates) for providing various shareholder services. For performing these services, the Shareholder Servicing Agents receive a fee up to 0.25%, 0.25%, and 0.25% that is computed daily and paid monthly equal to a percentage of average daily net assets of Class A Shares, Class B Shares and Class C Shares of the Lifeline Funds, respectively. The 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, in the aggregate, 0.25% of the average daily net assets of Class A Shares, 1.00% of the average daily net assets of Class B Shares and Class C Shares.

Fund Accounting, Transfer Agency and Trustee:

          Citi Ohio provides fund accounting and transfer agency services for each Fund. As Transfer Agent for the LifeLine Funds, Citi Ohio receives a fee based on the number of LifeLine Funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As Fund Accountant for the LifeLine Funds, Citi Ohio receives an annual fee per Fund and share class, subject to minimums and reimbursement of certain expenses.

          Effective April 1, 2008 each of the non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.

          Prior to April 1, 2008 each of the non-interested Trustees were compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also received a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee received compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees were reimbursed for certain expenses incurred in connection with their Board membership.

Fee Reductions:

          The Investment Adviser has agreed to contractually limit through March 1, 2009 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the LifeLine Funds. Each Fund Class has its own expense limitations based on the average daily net assets for any full fiscal year as follows: Class A Shares 1.50%, Class B Shares 2.25%, Class C Shares 2.25%.

35 HSBC INVESTOR LIFELINE FUNDS

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

	The Administrator and Citi Ohio may voluntarily waive/reimburse fees to help support the expense limits of each Fund. In addition, the Investment Adviser may waive/reimburse additional fees at their discretion. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable. All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time.
4.	Investment Transactions:
	Aggregate contributions and withdrawals of the Underlying Portfolios for the year ended October 31, 2008 totaled:

	Contributions		Withdrawals
Aggressive Growth Fund	$	3,120,255	$	2,057,906
Growth Strategy Fund		8,228,397		6,694,064
Moderate Growth Fund		10,956,451		8,966,405
Conservative Growth Fund		4,525,048		4,097,349

5.	Federal Tax Information:
	The tax character of dividends paid by the LifeLine Funds as of the latest tax year ended October 31, 2008 were as follows:

	Distributions paid from
	Ordinary Income		Net Long-Term Gains		Total Taxable Dividends		Return of Capital		Total Dividends Paid*
Aggressive Growth Fund	$	87,226	$	667,264	$	754,490	$	3,134	$	757,624
Growth Strategy Fund		434,489		1,575,492		2,009,981		—		2,009,981
Moderate Growth Fund		686,794		1,257,947		1,944,741		40,611		1,985,352
Conservative Growth Fund		265,882		228,458		494,340		527		494,867

          The tax character of dividends paid by the LifeLine Funds as of the latest tax year ended October 31, 2007 were as follows:

	Distributions paid from
	Ordinary Income		Net Long-Term Gains		Total Taxable Dividends		Return of Capital		Total Dividends Paid*
Aggressive Growth Fund	$	—	$	—	$	—	$	—	$	—
Growth Strategy Fund		103,401		164,526		267,927		—		267,927
Moderate Growth Fund		406,849		208,376		615,225		—		615,225
Conservative Growth Fund		156,824		67,208		224,032		—		224,032

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

          As of the latest tax year end October 31, 2008, the components of accumulated earnings/(deficit) on a tax basis for the LifeLine Funds were as follows:

	Undistributed Ordinary Income		Undistributed Long-Term Capital Gains (Losses)		Accumulated Earnings		Dividends Payable		Accumulated Capital and Other Losses			Unrealized Appreciation (Depreciation)(1)			Total Accumulated Earnings/ (Deficit)
Aggressive Growth Fund	$	—	$	—	$	—	$	—	$	(911,837	)	$	(2,704,622	)	$	(3,616,459	)
Growth Strategy Fund		117,076		—		117,076		—		(2,102,770	)		(7,284,593	)		(9,270,287	)
Moderate Growth Fund		—		—		—		—		(1,920,789	)		(7,117,440	)		(9,038,229	)
Conservative Growth Fund		—		—		—		—		(522,075	)		(1,962,987	)		(2,485,062	)

(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.

HSBC INVESTOR LIFELINE FUNDS 36

HSBC INVESTOR LIFELINE FUNDS

Notes to Financial Statements—As of October 31, 2008 (continued)

          As of the latest tax year ended of October 31, 2008, 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
Aggressive Growth Fund	$	911,837	2016
Growth Strategy Fund		2,102,771	2016
Moderate Growth Fund		1,920,789	2016
Conservative Growth Fund		522,075	2016

6.	Legal and Regulatory Matters:
	On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provides various services to the LifeLine Funds as described in footnote 3, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the LifeLine Funds’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the LifeLine Funds’ management is currently unable to determine the impact, if any, of such matters on the Portfolios or the LifeLine Funds’ financial statements, management does not anticipate a material, adverse impact to the LifeLine Funds or the LifeLine Funds’ financial statements.
7.	Subsequent Event (unaudited):
	Each of the Underlying Portfolios represents a different asset class. At a Board meeting held on December 8-9, 2008, HSBC Global Asset Management (USA) Inc. (the “Adviser”), the investment adviser to the LifeLine Funds, received approval from the Board to restructure the LifeLine Funds and how the Funds invest in their respective asset classes in order to provide the Funds with greater flexibility. The LifeLine Funds normally invest in affiliated Underlying Portfolios, i.e., those funds within the HSBC Family of Funds. The change in structure will allow a LifeLine Fund to invest in unaffiliated underlying funds in order to gain access to other managers with similar asset classes. The change in structure will also allow a LifeLine Fund to invest in a specified asset class as opposed to a specified underlying fund. As an example, the HSBC Investor Aggressive Growth Strategy Fund currently invests 21% of its portfolio in the HSBC Growth Portfolio. After the change, the HSBC Investor Aggressive Growth Strategy Fund may invest 21% of its assets in an underlying fund or combination of funds that invest in a portfolio of large cap growth securities. A revised target portfolio weightings table is presented below. Other than as noted below with regard to the HSBC Investor Conservative Growth Strategy Fund, the portfolio weightings of the Funds in the various asset classes remain unchanged. The Adviser will have the discretion to select and substitute underlying funds and to establish target weightings. Should the Adviser determine to change the portfolio weightings of a LifeLine Fund, shareholders of that Fund will receive 60 days’ advance notice.
	In addition to the above changes applicable to each LifeLine Fund, the HSBC Investor Conservative Growth Strategy Fund will no longer allocate 3% of its assets to the Intermediate Duration Fixed Income Portfolio (an intermediate duration fixed income asset class); rather it will allocate 28% instead of 25% to a fixed income asset class. This change is reflected in the portfolio weightings table below.
	The changes to the structure of the LifeLine Funds and the allocation of the HSBC Investor Conservative Growth Strategy Fund will become effective February 9, 2009.

Asset Class	HSBC Investor Aggressive Growth Strategy Fund			HSBC Investor Growth Strategy Fund			HSBC Investor Moderate Growth Strategy Fund			HSBC Investor Conservative Growth Strategy Fund
Large Cap Growth		21	%		21	%		19	%		15	%
Large Cap Value		21	%		21	%		18	%		14	%
Small-cap		34	%		20	%		11	%		4	%
International Equity		23	%		20	%		15	%		10	%
Fixed Income		None			15	%		26	%		28	%
High Yield Fixed Income		None			2	%		5	%		8	%
Money Market		1	%		1	%		6	%		21	%
Total:		100	%		100	%		100	%		100	%

37 HSBC INVESTOR LIFELINE FUNDS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of
HSBC Investor LifeLine Funds:

          We have audited the accompanying statements of assets and liabilities of HSBC Investor LifeLine Funds – HSBC Investor Aggressive Growth Strategy Fund, HSBC Investor Growth Strategy Fund, HSBC Investor Moderate Growth Strategy Fund and HSBC Investor Conservative Growth Strategy Fund (the Funds), as of October 31, 2008, 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 period in the four-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. 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, 2008, 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 period in the four-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Columbus, Ohio
December 19, 2008

HSBC INVESTOR LIFELINE FUNDS 38

HSBC INVESTOR LIFELINE FUNDS

Other Federal Income Tax Information (Unaudited)

          For the year ended October 31, 2008, the following percentages of the total ordinary income dividends paid by the LifeLine Funds qualify for the corporate dividends received deduction available to corporate shareholders:

Fund	Dividends Received Deduction
Aggressive Growth Fund		67.01	%
Growth Strategy Fund		40.45	%
Moderate Growth Strategy Fund		34.27	%
Conservative Growth Strategy Fund		19.28	%

          For the year ended October 31, 2008, dividends paid by the LifeLine 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 LifeLine 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 2008 Form 1099-DIV:

Fund	Qualified Dividend Income
Aggressive Growth Fund		100.00	%
Growth Strategy Fund		71.25	%
Moderate Growth Strategy Fund		72.72	%
Conservative Growth Strategy Fund		39.29	%

          During the year ended October 31, 2008, the following LifeLine Funds declared net long term capital gain distributions:

Fund	Amount
Aggressive Growth Fund	$	667,264
Growth Strategy Fund		1,575,492
Moderate Growth Strategy Fund		1,257,947
Conservative Growth Strategy Fund		228,458

39 HSBC INVESTOR LIFELINE FUNDS

HSBC INVESTOR LIFELINE FUNDS

Table of Shareholder Expenses (Unaudited)—As of October 31, 2008

          As a shareholder of the HSBC Investor LifeLine Funds (“Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases, redemption fees; and exchange fees; (2) ongoing costs, including management fees; distribution and/or shareholder servicing fees; and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these 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, 2008 through November 31, 2008.

Actual Example

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

		Beginning Account Value 5/1/08		Ending Account Value 10/31/08		Expenses Paid During Period* 5/1/08 — 10/31/08			Annualized Expense Ratio During Period 5/1/08 — 10/31/08
Aggressive Growth Strategy Fund	Class A Shares	$	1,000.00	$	639.90		$	6.18	1.50	%
	Class B Shares		1,000.00		637.50			9.26	2.25	%
	Class C Shares		1,000.00		638.00			9.26	2.25	%
Growth Strategy Fund	Class A Shares		1,000.00		684.00			6.43	1.52	%
	Class B Shares		1,000.00		681.20			9.59	2.27	%
	Class C Shares		1,000.00		681.10			9.59	2.27	%
Moderate Growth Strategy Fund	Class A Shares		1,000.00		736.60			6.68	1.53	%
	Class B Shares		1,000.00		733.60			9.94	2.28	%
	Class C Shares		1,000.00		734.20			9.94	2.28	%
Conservative Growth Strategy Fund	Class A Shares		1,000.00		801.60			6.79	1.50	%
	Class B Shares		1,000.00		799.20			10.18	2.25	%
	Class C Shares		1,000.00		798.60			10.17	2.25	%

* Expenses are equal to the average account value over the period multiplied by the Funds’ 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 LIFELINE FUNDS 40

HSBC INVESTOR LIFELINE FUNDS

Table of Shareholder Expenses (Unaudited)—As of October 31, 2008 (continued)

Hypothetical Example for Comparison Purposes

          The table below provides information about hypothetical account values and hypothetical expenses based on the 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 5/1/08		Ending Account Value 10/31/08		Expenses Paid During Period* 5/1/08 — 10/31/08			Annualized Expense Ratio During Period 5/1/08 — 10/31/08
Aggressive Growth Strategy Fund	Class A Shares	$	1,000.00	$	1,017.60		$	7.61	1.50	%
	Class B Shares		1,000.00		1,013.83			11.39	2.25	%
	Class C Shares		1,000.00		1,013.83			11.39	2.25	%
Growth Strategy Fund	Class A Shares		1,000.00		1,017.50			7.71	1.52	%
	Class B Shares		1,000.00		1,013.72			11.49	2.27	%
	Class C Shares		1,000.00		1,013.72			11.49	2.27	%
Moderate Growth Strategy Fund	Class A Shares		1,000.00		1,017.44			7.76	1.53	%
	Class B Shares		1,000.00		1,013.67			11.54	2.28	%
	Class C Shares		1,000.00		1,013.67			11.54	2.28	%
Conservative Growth Strategy Fund	Class A Shares		1,000.00		1,017.60			7.61	1.50	%
	Class B Shares		1,000.00		1,013.83			11.39	2.25	%
	Class C Shares		1,000.00		1,013.83			11.39	2.25	%

*	Expenses are equal to the average account value over the period multiplied by the Funds’ 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).
41	HSBC INVESTOR LIFELINE FUNDS

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Certificates of Deposit—0.1%
	Shares or Principal Amount($)		Value($)
Banking—0.1%
First Tennessee Bank, 2.96%, 12/17/09 (a)		100,000		99,029
TOTAL CERTIFICATES OF DEPOSIT (COST $94,978)				99,029
U.S. Government and Government Agency Obligations—43.4%
Federal Home Loan Mortgage Corp.—10.8%
Pool #1B2655, 6.21%, 12/1/34 (a)(h)		487,814		490,212
Pool #1J1313, 6.37%, 6/1/36 (a)		1,142,823		1,159,719
Pool #847557, 5.85%, 7/1/34 (a)(h)		585,641		598,062
Pool #C00368, 8.50%, 10/1/24		23,979		25,815
Pool #C00922, 8.00%, 2/1/30		142,230		150,163
Pool #C54447, 7.00%, 7/1/31		32,243		33,088
Pool #C60712, 6.50%, 11/1/31		472,414		482,778
Pool #C80387, 6.50%, 4/1/26		23,016		23,571
Pool #D62926, 6.50%, 8/1/25		19,016		19,479
Pool #G01317, 7.00%, 10/1/31		116,043		119,084
Pool #G02981, 6.00%, 6/1/37		1,009,949		1,008,749
TBA November:
5.00%, 11/15/22		3,865,000		3,773,206
5.50%, 11/15/22		960,000		955,500
				8,839,426
Federal National Mortgage Association—23.7%
Pool #253438, 8.50%, 9/1/30		31,300		33,652
Pool #256723, 6.50%, 5/1/37		982,919		996,901
Pool #329530, 7.00%, 12/1/25		52,627		54,838
Pool #329655, 7.00%, 11/1/25		21,900		22,820
Pool #356905, 5.66%, 10/1/36 (a)		140,731		142,435
Pool #398958, 6.50%, 10/1/12		24,077		24,644
Pool #535332, 8.50%, 4/1/30		34,148		36,727
Pool #535440, 8.50%, 8/1/30		38,193		41,063
Pool #548965, 8.50%, 7/1/30		38,096		40,959
Pool #568486, 7.00%, 1/1/31		38,058		39,422
Pool #573752, 8.50%, 2/1/31		29,026		31,208
Pool #575328, 6.50%, 4/1/31		48,163		49,220
Pool #922090, 5.84%, 3/1/37 (a)		1,676,596		1,693,705
TBA November:
5.00%, 11/15/36		3,100,000		2,936,283
5.50%, 11/15/36		8,690,000		8,489,044
6.00%, 11/15/37		4,800,000		4,797,000
				19,429,921
Government National Mortgage Association—6.3%
Pool #346406, 7.50%, 2/15/23		41,467		43,910
Pool #412530, 7.50%, 12/15/25		68,806		72,830
Pool #781300, 7.00%, 6/15/31		112,141		114,877
TBA November:
5.00%, 11/15/36		2,800,000		2,671,374
5.50%, 11/15/36		610,000		598,181
6.00%, 11/15/36		1,680,000		1,680,000
				5,181,172
U.S. Treasury Bonds—2.3%
5.00%, 5/15/37		1,685,000		1,855,869
U.S. Government and Government Agency Obligations, cont’d
	Shares or Principal Amount($)		Value($)
U.S. Treasury Notes—0.3%
3.13%, 9/30/13		245,000		248,981
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (COST $35,928,025)				35,555,369
Corporate Obligations—38.3%
Agricultural Chemicals—1.3%
Agrium, Inc., 6.75%, 1/15/19		600,000		541,220
Cargill, Inc., 5.60%, 9/15/12 (b)		600,000		557,003
				1,098,223
Banking—0.6%
American Express Centurion Bank, 5.95%, 6/12/17		700,000		517,176
Building & Construction Products—1.3%
Martin Marietta Materials, Inc., 3.62%, 4/30/10 (a)(h)		600,000		579,362
Masco Corp., 3.12%, 3/12/10 (a)(h)		550,000		518,006
				1,097,368
Cable Television—0.6%
Time Warner Cable, Inc., 7.30%, 7/1/38		625,000		522,927
Chemicals—0.1%
Chemtura Corp., 6.88%, 6/1/16		175,000		109,375
Computer Services—0.8%
Electronic Data Systems, Series B, 6.00%, 8/1/13		700,000		660,792
Consumer Products—1.0%
Clorox Co. (The), 5.45%, 10/15/12		900,000		832,055
Electric—5.7%
Commonwealth Edison Co., 6.45%, 1/15/38		700,000		524,802
Dominion Resources, Inc., 6.40%, 6/15/18		250,000		211,832
Duke Energy Corp., 5.65%, 6/15/13		450,000		406,335
Florida Power Corp., 5.65%, 6/15/18		550,000		486,898
MidAmerican Energy Co., 5.95%, 7/15/17		2,900,000		2,535,000
Puget Sound Energy, Inc., 6.97%, 6/1/67, Callable 6/1/17 @ 100		600,000		501,000
				4,665,867
Finance—8.2%
American Honda Finance Corp., 4.63%, 4/2/13, MTN (b)		250,000		226,784
Bear Stearns Co., Inc.:
4.50%, 10/28/10		600,000		583,206
Series B, 6.95%, 8/10/12, MTN		950,000		937,422
Citigroup, Inc., 6.50%, 8/19/13		225,000		213,291
Countrywide Home Loans, Series L, 4.00%, 3/22/11, MTN		1,150,000		1,060,545
Ford Motor Credit Co., LLC, 9.75%, 9/15/10		1,550,000		1,054,076

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 42

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Lehman Brothers Holdings, Series I, 6.88%, 5/2/18, MTN (g)		500,000		65,000
Morgan Stanley, Series F, 6.00%, 4/28/15, MTN		565,000		459,090
Preferred Term Securities Ltd., 8.79%, 9/15/30, Callable 9/15/10 @ 104.395 (b)		768,227		556,004
Wells Fargo Financial, 5.50%, 8/1/12		850,000		841,140
XTRA Finance Corp., 5.15%, 4/1/17		750,000		681,810
				6,678,368
Forestry/Paper—0.2%
Georgia-Pacific Corp., 7.70%, 6/15/15		250,000		173,750
Gaming—0.1%
MGM MIRAGE, Inc., 6.75%, 4/1/13		175,000		109,375
Health Services—0.2%
Community Health Systems, Inc., 8.88%, 7/15/15, Callable 7/15/11 @ 104.44		175,000		146,562
Hospitals—1.2%
Covidien International Finance SA, 5.45%, 10/15/12		550,000		530,755
HCA, Inc., 5.75%, 3/15/14		750,000		442,500
				973,255
Media—0.9%
News America Holdings, 7.90%, 12/1/95		500,000		376,145
Vivendi, 5.75%, 4/4/13 (b)		350,000		321,553
				697,698
Media - Cable—0.2%
Cablevision Systems Corp., Series B, 8.00%, 4/15/12		175,000		147,219
Office Equipment & Services—0.6%
Xerox Corp., 3.63%, 12/18/09 (a)(h)		550,000		501,750
Oil & Gas—0.2%
Pioneer Natural Resources Co., 5.88%, 7/15/16		175,000		127,860
Pipelines—0.6%
Dynegy Holdings, Inc., 7.75%, 6/1/19		175,000		117,250
Transcontinental Gas Pipeline Corp., 6.05%, 6/15/18		450,000		359,968
				477,218
Retail—2.5%
Kohl’s Corp., 6.25%, 12/15/17		550,000		433,181
Kroger Co. (The), 5.00%, 4/15/13		250,000		225,420
Wal-Mart Stores, Inc., 6.50%, 8/15/37		1,500,000		1,346,407
				2,005,008
Support - Services—0.4%
Aramark Services, Inc., 8.50%, 2/1/15, Callable 2/1/11 @104.25		175,000		149,625
Iron Mountain, Inc., 8.00%, 6/15/20, Callable 6/15/13 @ 104		175,000		137,375
				287,000
Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Telecom - Integrated/Services—0.2%
Qwest Corp., 7.63%, 6/15/15		175,000		133,875
Telecommunications—5.3%
AOL Time Warner, Inc.:
6.88%, 5/1/12		600,000		539,112
7.70%, 5/1/32		550,000		444,292
BellSouth Telecommunications, 7.00%, 12/1/95		700,000		510,027
GTE Corp., 6.84%, 4/15/18		750,000		677,726
Sprint Nextel Corp., 6.00%, 12/1/16		1,110,000		768,675
Time Warner Entertainment Co., 8.38%, 3/15/23		800,000		713,912
Verizon Communications, Inc., 6.10%, 4/15/18		750,000		655,259
				4,309,003
Transportation—6.1%
American Airlines, Inc.:
Series 2001-2, Class A1, 6.98%, 4/1/11		386,067		354,216
Series 2001-2, Class A2, 7.86%, 10/1/11		1,250,000		993,750
Burlington North Santa Fe:
5.65%, 5/1/17		600,000		525,046
7.57%, 1/2/21		277,493		272,529
Continental Airlines, Inc., 5.98%, 4/19/22		750,000		521,250
Norfolk Southern Corp., 5.75%, 4/1/18		250,000		215,192
Union Pacific Corp.:
5.75%, 11/15/17		1,200,000		1,017,030
6.85%, 1/2/19		1,104,592		1,090,806
				4,989,819
TOTAL CORPORATE OBLIGATIONS (COST $37,217,408)				31,261,543
Asset Backed Securities—25.1%
Asset Backed Funding Certificates, Series 2003-AHL1, Class A1, 3.68%, 3/25/33		738,743		611,712
Cairn Mezzanine plc, Series 2007-3A, Class B1, 3.70%, 8/13/47 (a)(b)		905,000		0
Capital Auto Receivables Asset Trust:
Series 2005-1, Class A5, 4.66%, 1/15/10 (a)(h)		338,358		337,515
Series 2006-SN1A, Class A3, 5.31%, 10/20/09 (b)(h)		222,717		222,717
Series 2006-SN1A, Class A4B, 4.39%, 3/20/10 (a)(b)(h)		810,000		797,815
Series 2007-SN1, Class A3A, 5.38%, 7/15/10 (h)		740,000		732,665
Series 2007-SN1, Class A3B, 4.62%, 7/15/10 (a)(h)		860,000		840,073
Capital One Prime Auto Receivables Trust:
Series 2005-1, Class A4, 4.58%, 4/15/11 (a)(h)		398,489		390,219
Series 2006-1, Class A3, 4.99%, 9/15/10 (h)		694,871		694,856
Carmax Auto Owner Trust, Series 2008-2, Class A2B, 5.46%, 9/15/11 (a)(h)		1,400,000		1,346,140

43 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Asset Backed Securities, continued
	Shares or Principal Amount($)		Value($)
Chase Issuance Trust, Series 2005-A12, Class A, 4.57%, 2/15/11 (a)(h)		1,250,000		1,244,194
Countrywide Asset-Backed Certificates:
Series 2006-S2, Class A5, 5.75%, 7/25/27 (a)		1,023,000		286,360
Series 2006-S4, Class A3, 5.80%, 7/25/34		1,056,485		613,547
Dominos Pizza Master Issuer LLC, Series 2007-1, Class A2, 5.26%, 4/25/37 (b)		1,200,000		986,561
Duane Street CLO, Series 2007-4A, Class C, 3.80%, 11/14/21 (a)(b)		850,000		306,850
Ford Credit Auto Owner Trust, Series 2006-C, Class A2A, 5.29%, 12/15/09 (h)		649,602		649,356
GE Business Loan Trust, Series 2006-2A, Class A, 4.74%, 11/15/34 (a)(b)(h)		1,371,669		1,135,950
GE Equipment Small Ticket LLC, Series 2005-2A, Class A3, 4.88%, 10/22/09 (b)(h)		116,827		116,553
GMAC Mortgage Corp., Loan Trust, Series 2006-HE3, Class A3, 5.81%, 10/25/36		900,000		504,450
Hyundai Auto Receivables Trust:
Series 2007-A, Class A2B, 4.91%, 1/15/10 (a)(h)		180,360		180,014
Series 2008-A, Class A2, 4.16%, 5/16/11 (h)		1,020,000		1,000,608
IOWA Student Loan Liquidity Corp., Series 2005-1, Class A1, 3.24%, 6/25/14 (a)(h)		354,144		352,230
National Collegiate Student Loan Trust, Series 2006-3, Class A1, 3.29%, 9/25/19 (a)(h)		763,889		677,437
Nissan Auto Receivables Owner Trust, Series 2006-B, Class A3, 5.16%, 2/15/10 (h)		410,838		410,563
Preferred Term Securities XXII Ltd., 3.16%, 9/22/36, Callable 6/22/11 @ 100 (a)(b)(h)		1,079,503		583,472
Residential Funding Mortgage Securities, Series 2006-HSA1, Class A5, 5.31%, 2/25/36		490,000		125,573
SLM Student Loan Trust:
Series 2005-4, Class A2, 3.62%, 4/26/21 (a)(h)		490,000		455,390
Series 2005-9, Class A4, 3.64%, 1/25/23 (a)(h)		1,360,000		1,286,200
Series 2006-7, Class A2, 3.53%, 10/25/16 (a)(h)		1,214,374		1,212,078
Series 2006-9, Class A2, 3.54%, 4/25/17 (a)(h)		264,353		263,039
Series 2006-B, Class A1, 2.83%, 9/15/20 (a)(h)		1,085,646		1,015,079
South Carolina Student Loan Corp., Series 2008-1, Class A1, 3.31%, 9/2/14 (a)(h)		942,901		923,748
World Omni Auto Receivables Trust, Series 2007-B, Class A2B, 4.88%, 2/16/10 (a)(h)		245,333		244,941
TOTAL ASSET BACKED SECURITIES (COST $24,334,833)				20,547,905
Collateralized Mortgage Obligations—5.9%
	Shares or Principal Amount($)		Value($)
Banc of America Mortgage Securities, Series 2005-D, Class 2A4, 4.79%, 5/25/35 (a)(h)		968,912		931,909
Deutsche Mortgage Securities, Inc., Series 2006-WF1, Class 1A1, 5.09%, 6/26/35 (a)(b)		824,958		821,186
Fannie Mae IO:
Series 270, Class 2, 8.50%, 9/1/23 (c)		37,649		10,022
Series 296, Class 2, 8.00%, 4/1/24 (c)		45,014		11,879
Series 306, Class IO, 8.00%, 5/1/30 (c)		53,648		12,238
Series 2000-16, Class PS, 5.34%, 10/25/29 (a)(c)		25,030		880
Series 2001-4, Class SA, 3.19%, 2/17/31 (a)(c)		177,348		17,877
FHA Weyerhauser, 7.43%, 1/1/24 (e)(f)		26,158		26,158
Freddie Mac:
Series 2988, Class AF, 4.89%, 6/15/35 (a)(h)		979,755		922,366
Series 3212, Class BK, 5.50%, 9/15/36		900,000		827,195
Freddie Mac IO:
Series 1534, Class K, 2.78%, 6/15/23 (a)(c)		119,246		15,870
Series 2141, Class SD, 3.56%, 4/15/29 (a)(c)		100,776		14,795
Series 2247, Class SC, 2.91%, 8/15/30 (a)(c)		50,605		5,882
Government National Mortgage Association IO:
Series 1999-30, Class S, 4.13%, 8/16/29 (a)(c)		43,767		6,419
Series 1999-30, Class SA, 3.53%, 4/16/29 (a)(c)		61,089		6,151
Residential Asset Securitization Trust, Series 2003-A15, Class 1A2, 3.71%, 2/25/34 (a)(h)		1,325,412		1,177,631
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $5,029,101)				4,808,458
Commercial Mortgage Backed Securities—11.4%
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A2, 5.38%, 10/15/49		1,100,000		984,285
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49		1,300,000		1,134,177
Commercial Mortgage Pass - Through Certificate:
Series 2005-LP5, Class AJ, 5.05%, 5/10/43		1,550,000		1,050,694
Series 2006-FL12, Class A2, 4.66%, 12/15/20 (a)(b)(h)		1,443,883		1,228,923
CWCapital Cobalt, Series 2006-C1, Class A2, 5.17%, 8/15/48		1,232,000		1,115,979
DLJ Mortgage Acceptance Corp., IO, Series 1997-CF1, Class S, 1.19%, 5/15/30 (a)(c)(e)		17,984		1
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A2, 5.91%, 7/10/38 (a)		640,000		591,822

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 44

HSBC INVESTOR CORE PLUS FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Commercial Mortgage Backed Securities, continued
	Shares or Principal Amount($)		Value($)
Series 2006-GG7, Class A4, 5.91%, 7/10/38 (a)		1,040,000		829,480
GS Mortgage Securities Corp., IO, Series 1997-GL, Class X2, 0.29%, 7/13/30 (a)(c)(e)		35,694		414
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A2, 5.26%, 9/15/39		480,000		440,906
Morgan Stanley Capital I, Series 2007-IQ14, Class A2, 5.61%, 4/15/49		1,380,000		1,197,531
Washington Mutual Commercial Mortgage Securities Trust, Series 2006-SL1, Class A, 5.30%, 11/23/43 (a)(b)		963,607		722,705
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (COST $11,075,016)				9,296,917
Foreign Bonds—0.6%
United Kingdom—0.6%
Barclays Bank plc, 5.93%, 12/31/49 (b)		850,000		456,304
TOTAL FOREIGN BONDS (COST $862,060)				456,304
Municipal Bonds—2.4%
Arizona Educational Loan Marketing Corp. Educational Loan Revenue, Series A-1-B, 3.71%, 1/25/10, (Credit Support Guaranteed Student Loans) (a)(h)		534,000		521,985
Chicago Transit Authority Sales & Transfer Tax Receipts Revenue, Series A, 6.90%, 12/1/40, AMT		800,000		723,216
Connecticut State, GO, Series B, 5.00%, 4/15/18		650,000		678,834
TOTAL MUNICIPAL BONDS (COST $2,034,869)				1,924,035
Investment Company—2.7%
	Shares or Principal Amount($)		Value($)
Northern Institutional Diversified Assets Portfolio, Shares Class, 0.82% (d)(h)		2,193,345		2,193,345
TOTAL INVESTMENT COMPANY (COST $2,193,345)				2,193,345
TOTAL INVESTMENTS (COST $118,769,635) — 129.9%				106,142,905

	Percentages indicated are based on net assets of $81,727,877.
(a)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on October 31, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c)	Interest-Only represents securities that entitle holders to receive only interest payments on the underlying mortgages. The yield to maturity of an Interest-Only is extremely sensitive to the rate of principal payments on the underlying mortgage assets. A rapid (slow) rate of principal repayments may have an adverse (positive) effect on yield to maturity. Interest rate adjusts periodically based on the pay off of the underlying mortgage. The interest rate presented represents the rates in effect on October 31, 2008. The principal amount shown is the notional amount of the underlying mortgages.
(d)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.
(e)	Rule 144a, section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Adviser, using Board approved procedures, has deemed these securities to be illiquid. Represents 0.03% of total net assets.
(f)	Security was fair valued as of October 31, 2008. Represents 0.03% of net assets.
(g)	Security is non-income producing; Defaulted Bond.
(h)	Security held as collateral for to be announced securities.

AMT	—	Interest on security is subject to federal alternative minimum tax
CLO	—	Collateralized Loan Obligation
FHA	—	Federal Housing Administration
GO	—	General Obligation
IO	—	Interest-Only security. Represents 0.13% of net assets.
LLC	—	Limited Liability Co.
MTN	—	Medium Term Note
PLC	—	Public Limited Co.
TBA	—	Security was traded on a “to be announced” basis. Represents 31.7% of net assets.

45 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Common Stock—0.0%
	Shares or Principal Amount($)		Value($)
Consumer Discretionary—0.0%
Tembec, Inc. (a)		937		1,012
TOTAL COMMON STOCK (COST $18,548)				1,012
Corporate Obligations—96.8%
Aerospace & Defense—3.4%
BE Aerospace, Inc., 8.50%, 7/1/18, Callable 7/1/13 @ 104.25		25,000		21,500
Bombardier, Inc., 8.00%, 11/15/14, Callable 11/15/10 @ 104.00 (b)		25,000		21,375
DRS Technologies, Inc., 7.63%, 2/1/18, Callable 2/1/11 @ 103.81		100,000		99,000
Hawker Beechcraft Acquisition Co.:
8.50%, 4/1/15, Callable 4/1/11 @ 104.25		50,000		30,000
9.75%, 4/1/17, Callable 4/1/12 @ 104.88		25,000		14,000
L-3 Communications Holdings, Inc., 5.88%, 1/15/15, Callable 1/15/10 @ 102.94		100,000		82,000
Sequa Corp., 11.75%, 12/1/15, Callable 12/1/11 @ 105.88 (b)		50,000		31,000
TransDigm Group, Inc., 7.75%, 7/15/14, Callable 7/15/09 @ 105.81		50,000		40,000
				338,875
Airline—0.4%
DAE Aviation Holdings, Inc., 11.25%, 8/1/15, Callable 8/1/11 @ 105.62 (b)		50,000		37,500
Apparel/Textiles—1.4%
AGY Holding Corp., 11.00%, 11/15/14, Callable 11/15/10 @ 105.50		50,000		35,000
Levi Strauss & Co., 8.88%, 4/1/16, Callable 4/1/11 @ 104.44		50,000		32,750
Quiksilver, Inc., 6.88%, 4/15/15, Callable 4/15/10 @ 103.44		150,000		72,000
				139,750
Auto Loans—3.8%
Ford Motor Credit Co.:
7.38%, 10/28/09		250,000		207,526
7.38%, 2/1/11		50,000		31,112
General Motors Acceptance Corp., 6.88%, 8/28/12		250,000		136,825
				375,463
Auto Parts & Equipment—2.2%
Altra Industrial Motion, Inc., 9.00%, 12/1/11, Callable 12/1/08 @ 104.50		50,000		45,000
Cooper Tire & Rubber Co., 8.00%, 12/15/19		50,000		27,500
Cooper-Standard Automotive, Inc., 8.38%, 12/15/14, Callable 12/15/09 @ 104.19		50,000		21,000
MSX International, 12.50%, 4/1/12, Callable 4/1/09 @ 110.00 (b)		25,000		11,250
Stoneridge, Inc., 11.50%, 5/1/12, Callable 12/8/08 @ 103.83		50,000		45,000
The Goodyear Tire & Rubber Co., 8.63%, 12/1/11, Callable 12/1/09 @ 104.31		17,000		14,365

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Auto Parts & Equipment, continued
TRW Automotive, Inc., 7.25%, 3/15/17 (b)		50,000		28,750
UCI Holdco, Inc., 10.32%, 12/15/13, Callable 12/15/09 @ 102.00 (c)		61,214		23,261
				216,126
Automotive—0.5%
General Motors Corp., 7.13%, 7/15/13		150,000		51,000
Beverages—0.9%
Beverages & More, Inc., 9.25%, 3/1/12, Callable 9/1/09 @ 104.63 (b)		50,000		42,500
Constellation Brands, Inc., 8.38%, 12/15/14		50,000		44,500
				87,000
Building Materials—2.8%
Belden, Inc., 7.00%, 3/15/17, Callable 3/15/12 @ 103.50		50,000		38,250
Coleman Cable, Inc., 9.88%, 10/1/12, Callable 10/1/09 @ 102.47		50,000		35,625
General Cable Technologies Corp., 7.13%, 4/1/17, Callable 4/1/12 @ 103.56		50,000		32,000
Gibraltar Industries, Inc., 8.00%, 12/1/15, Callable 12/1/10 @ 104.00		100,000		67,000
Interline Brands, Inc., 8.13%, 6/15/14, Callable 6/15/10 @ 104.06		50,000		38,500
Maax Corp., 9.75%, 6/15/12, Callable 6/15/09 @ 102.44 (d)		50,000		250
Ply Gem Industries, Inc., 11.75%, 6/15/13, Callable 4/1/11 @ 105.88 (b)		50,000		33,000
U.S. Concrete, Inc., 8.38%, 4/1/14, Callable 4/1/09 @ 104.19		50,000		31,250
				275,875
Chemicals—3.8%
Airgas, Inc., 7.13%, 10/1/18, Callable 10/1/13 @ 103.56 (b)		50,000		41,250
Chemtura Corp., 6.88%, 6/1/16		25,000		15,625
Georgia Gulf Corp., 9.50%, 10/15/14, Callable 10/15/10 @ 104.75		75,000		31,500
Huntsman International LLC, 7.88%, 11/15/14, Callable 11/15/10 @ 103.94		35,000		31,150
Innophos, Inc., 8.88%, 8/15/14, Callable 8/16/09 @ 104.44		50,000		44,000
Koppers Holdings, Inc., 9.88%, 11/15/14, Callable 11/15/09 @ 104.94		25,000		20,000
LyondellBasell Industries AF, 8.38%, 8/15/15, Callable 8/15/10 @ 104.19 (b)		50,000		17,500
Momentive Performance Materials, Inc., 9.75%, 12/1/14, Callable 12/1/10 @ 104.88		50,000		28,000
Mosaic Co., 7.63%, 12/1/16, Callable 12/1/11 @ 103.81 (b)		25,000		21,832
Nalco Finance Holdings, Inc., 0.00%, 2/1/14, Callable 2/1/09 @ 104.50 (e)		50,000		40,000
Nova Chemicals Corp., 6.50%, 1/15/12		50,000		39,500
Terra Capital, Inc., 7.00%, 2/1/17, Callable 2/1/12 @ 103.50		50,000		42,500
				372,857

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 46

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Computer Hardware—0.3%
Activant Solutions, Inc., 9.50%, 5/1/16, Callable 5/1/11 @ 104.75		50,000		30,500
Consumer Products—1.5%
Central Garden & Pet Co., 9.13%, 2/1/13, Callable 2/1/09 @ 103.04		50,000		30,500
Chattem, Inc., 7.00%, 3/1/14, Callable 3/1/09 @ 103.50		50,000		43,375
Jarden Corp., 7.50%, 5/1/17, Callable 5/1/12 @ 103.75		25,000		18,625
MCBC Holdings, Inc., 10.75%, 10/15/14, Callable 10/15/09 @ 103.00 (b)(c)		25,000		12,500
Spectrum Brands, Inc., 7.38%, 2/1/15, Callable 2/1/10 @ 103.69		75,000		25,125
True Temper Sports, Inc., 8.38%, 9/15/11, Callable 3/15/09 @ 102.09		50,000		19,000
				149,125
Diversified Capital Goods—1.8%
Greenbrier Cos., Inc., 8.38%, 5/15/15, Callable 5/15/10 @ 104.19		50,000		38,125
Mueller Water Products, Inc., 7.38%, 6/1/17, Callable 6/1/12 @ 103.69		50,000		32,750
Sensata Technologies, 8.00%, 5/1/14, Callable 5/1/10 @ 104.00		50,000		27,500
TriMas Corp., 9.88%, 6/15/12, Callable 6/15/09 @ 101.65		77,000		42,350
Trinity Industries, Inc., 6.50%, 3/15/14, Callable 3/15/09 @ 103.25		50,000		41,500
				182,225
Electric - Generation—4.8%
AES Corp.:
7.75%, 3/1/14		60,000		48,600
7.75%, 10/15/15		50,000		39,188
Dynegy Holdings, Inc., 8.38%, 5/1/16		150,000		111,000
Edison Mission Energy:
7.00%, 5/15/17		25,000		19,781
7.20%, 5/15/19		50,000		37,500
Energy Future Holdings, 10.88%, 11/1/17, Callable 11/1/12 @ 105.44 (b)		125,000		96,250
Mirant North America LLC, 7.38%, 12/31/13, Callable 12/31/09 @ 103.69		50,000		43,687
NRG Energy, Inc., 7.38%, 2/1/16, Callable 2/1/11 @ 103.69		50,000		43,125
Reliant Energy, Inc., 7.63%, 6/15/14		50,000		38,500
				477,631
Electric - Integrated—0.8%
CMS Energy Corp., 6.88%, 12/15/15		100,000		81,776
Electronics—0.2%
Freescale Semiconductor, Inc., 10.13%, 12/15/16, Callable 12/15/11 @ 105.06		50,000		19,625
Energy - Exploration & Production—5.7%
Chaparral Energy, Inc., 8.50%, 12/1/15, Callable 12/1/10 @ 104.25		100,000		51,000
Chesapeake Energy Corp., 6.88%, 1/15/16, Callable 1/15/09 @ 103.44		100,000		80,250

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Energy - Exploration & Production, continued
Cimarex Energy Co., 7.13%, 5/1/17, Callable 5/1/12 @ 103.56		50,000		40,000
Clayton Williams Energy, Inc., 7.75%, 8/1/13, Callable 8/1/09 @ 103.88		100,000		61,500
Compton Petroleum Finance Corp., 7.63%, 12/1/13, Callable 12/1/09 @ 103.81		100,000		58,000
Forest Oil Corp., 7.25%, 6/15/19, Callable 6/15/12 @ 103.63		50,000		34,000
Linn Energy LLC, 9.88%, 7/1/18, Callable 7/1/13 @ 104.94 (b)		50,000		33,750
Newfield Exploration Co., 6.63%, 9/1/14, Callable 9/1/09 @ 103.31		100,000		77,250
Opti Canada, Inc., 7.88%, 12/15/14, Callable 12/15/10 @ 104.13		50,000		30,000
Plains Exploration & Production Co.:
7.75%, 6/15/15, Callable 6/15/11 @ 103.88		50,000		36,500
7.63%, 6/1/18, Callable 6/1/13 @ 103.81		25,000		16,375
Swift Energy Co., 7.63%, 7/15/11, Callable 7/15/09 @ 101.91		50,000		42,250
				560,875
Environmental—0.8%
Waste Services, Inc., 9.50%, 4/15/14, Callable 4/15/09 @ 104.75		50,000		40,000
WCA Waste Corp., 9.25%, 6/15/14, Callable 6/15/10 @ 104.63		50,000		41,000
				81,000
Food & Drug Retailers—0.4%
Stater Bros. Holdings, Inc., 7.75%, 4/15/15, Callable 4/15/11 @ 103.88		50,000		41,000
Food - Wholesale—0.3%
Smithfield Foods, Inc., 7.75%, 7/1/17		50,000		31,500
Forestry/Paper—2.8%
Catalyst Paper Corp., Series D, 8.63%, 6/15/11, Callable 6/15/09 @ 100.00		50,000		29,500
Cellu Tissue Holdings, Inc., 9.75%, 3/15/10, Callable 3/15/09 @ 100.00		50,000		40,000
Georgia-Pacific Corp., 7.70%, 6/15/15		50,000		34,750
NewPage Corp., 10.00%, 5/1/12, Callable 5/1/09 @ 106.00		25,000		17,000
Norampac, Inc., 6.75%, 6/1/13, Callable 6/1/09 @ 102.25		100,000		57,000
Stone Container Finance Co. of Canada, 7.38%, 7/15/14, Callable 7/15/09 @ 103.69		150,000		73,500
Verso Paper Holdings LLC, Series B, 9.13%, 8/1/14, Callable 8/1/10 @ 104.56		50,000		26,500
				278,250
Gaming—8.0%
Buffalo Thunder Development Authority, 9.38%, 12/15/14, Callable 12/15/10 @ 104.69 (b)		25,000		8,750
CCM Merger, Inc., 8.00%, 8/1/13, Callable 8/1/09 @ 104.00 (b)		100,000		59,000

47 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Gaming, continued
Choctaw Resort Development Entertainment, 7.25%, 11/15/19, Callable 11/15/11 @ 103.63 (b)		46,000		26,220
Chukchansi Economic Development Authority, 8.00%, 11/15/13, Callable 11/15/09 @ 104.00 (b)		25,000		13,250
Fontainebleau Las Vegas, 10.25%, 6/15/15, Callable 6/15/11 @ 105.13 (b)		100,000		13,500
Great Canadian Gaming Co., 7.25%, 2/15/15, Callable 2/15/11 @ 103.63 (b)		50,000		37,500
Greektown Holdings, Inc., 10.75%, 12/1/13, Callable 12/1/10 @ 105.38 (b)(d)		75,000		16,125
Indianapolis Downs LLC, 11.00%, 11/1/12, Callable 11/1/10 @ 105.50 (b)		25,000		12,500
Inn of the Mountain Gods, 12.00%, 11/15/10, Callable 11/15/08 @ 103.00		50,000		22,000
Isle of Capri Casinos, Inc., 7.00%, 3/1/14, Callable 3/1/09 @ 103.50		100,000		48,500
Mashantucket Pequot Tribal Nation, Series A, 8.50%, 11/15/15, Callable 11/15/11 @ 104.25 (b)		50,000		27,500
MGM MIRAGE, Inc., 6.75%, 4/1/13		100,000		62,500
Mohegan Tribal Gaming, 7.13%, 8/15/14, Callable 8/15/09 @ 103.56		50,000		30,000
MTR Gaming Group, Inc., 9.00%, 6/1/12, Callable 6/1/09 @ 104.50		100,000		55,500
Pokagon Gaming Authority, 10.38%, 6/15/14, Callable 6/15/10 @ 105.19 (b)		69,000		62,790
San Pasqual Casino, 8.00%, 9/15/13, Callable 9/15/09 @ 104.00 (b)		25,000		19,250
Scientific Games Corp., 6.25%, 12/15/12, Callable 12/15/08 @ 103.13		50,000		38,125
Seminole Hard Rock Entertainment, 5.32%, 3/15/14, Callable 3/15/09 @ 102.00 (b)(c)		50,000		33,000
Seneca Gaming Corp., 7.25%, 5/1/12, Callable 5/1/09 @ 101.81		50,000		33,500
Shingle Springs, 9.38%, 6/15/15, Callable 6/15/11@ 104.69 (b)		50,000		24,500
Snoqualmie Entertainment Authority, 6.88%, 2/1/14, Callable 2/1/09 @ 103.00 (b)(c)		25,000		16,125
Turning Stone Resort Casino, 9.13%, 9/15/14, Callable 9/15/10 @ 104.56 (b)		75,000		59,250
Waterford Gaming LLC, 8.63%, 9/15/14 (b)		21,000		19,845
Wynn Las Vegas LLC, 6.63%, 12/1/14, Callable 12/1/09 @ 103.31		50,000		36,875
				776,105
Gas Distribution—6.2%
Atlas Pipeline Partners LP, 8.13%, 12/15/15, Callable 12/15/10 @ 104.06		50,000		34,875
Colorado Interstate Gas Co., 6.80%, 11/15/15		150,000		126,956
Copano Energy LLC, 8.13%, 3/1/16, Callable 3/1/11 @ 104.06		50,000		36,750
El Paso Corp., 7.00%, 6/15/17		100,000		76,320
Ferrellgas Partners LP, 6.75%, 5/1/14, Callable 5/1/09 @ 103.38 (b)		50,000		35,500
Inergy LP/Inergy Finance, 8.25%, 3/1/16, Callable 3/1/11 @ 104.13		100,000		76,750

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Gas Distribution, continued
Regency Energy Partners LP, 8.38%, 12/15/13, Callable 12/15/10 @ 104.19		17,000		12,920
Southern Star Central Corp., Inc., 6.75%, 3/1/16, Callable 3/1/11 @ 103.38		50,000		43,250
Suburban Propane Partners LP, 6.88%, 12/15/13, Callable 12/15/08 @ 103.44		50,000		38,500
Williams Cos., Inc., 6.38%, 10/1/10 (b)		100,000		89,000
Williams Partners LP, 7.25%, 2/1/17		50,000		39,750
				610,571
Health Services—3.4%
Advanced Medical Optics, 7.50%, 5/1/17, Callable 5/1/12 @ 103.75		50,000		33,000
Carriage Services, Inc., 7.88%, 1/15/15, Callable 1/15/10 @ 103.94		50,000		41,750
Community Health Systems, Inc., 8.88%, 7/15/15, Callable 7/15/11 @ 104.44		50,000		41,875
DJO Finance LLC, 10.88%, 11/15/14, Callable 11/15/11 @ 105.44		25,000		20,125
HCA, Inc., 9.25%, 11/15/16, Callable 11/15/11 @ 104.63		25,000		21,250
MultiPlan, Inc., 10.38%, 4/15/16, Callable 4/15/11 @ 105.19 (b)		100,000		92,000
Omnicare, Inc., 6.75%, 12/15/13, Callable 12/15/09 @ 103.38		100,000		83,000
				333,000
Hotels & Lodging—0.3%
Gaylord Entertainment Co., 8.00%, 11/15/13, Callable 11/15/08 @ 104.00		50,000		34,125
Household & Leisure Products—0.3%
Sealy Mattress Co., 8.25%, 6/15/14, Callable 6/15/09 @ 104.13		50,000		28,250
Integrated Energy—0.3%
VeraSun Energy Corp.:
9.88%, 12/15/12, Callable 12/15/09 @ 104.94 (d)		50,000		20,500
9.38%, 6/1/17, Callable 6/1/12 @ 104.69 (d)		50,000		4,250
				24,750
Investments & Miscellaneous Financial Services—0.1%
Nuveen Investments, Inc., 10.50%, 11/15/15, Callable 11/15/11 @ 105.25 (b)		50,000		13,500
Machinery—1.0%
Baldor Electric Co., 8.63%, 2/15/17, Callable 2/15/12 @ 104.31		50,000		38,250
Case New Holland, Inc., 7.13%, 3/1/14, Callable 3/1/10 @ 103.56		50,000		37,250
Terex Corp., 8.00%, 11/15/17, Callable 11/15/12 @ 104.00		25,000		18,500
				94,000

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 48

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Media - Broadcast—1.2%
Barrington Broadcasting Group LLC, 10.50%, 8/15/14, Callable 8/15/10 @ 105.25		50,000		24,500
Bonten Media Acquisition, 9.00%, 6/1/15, Callable 6/1/11@ 104.50 (b)		75,000		29,250
Local TV Finance LLC, 9.25%, 6/15/15, Callable 6/15/11 @ 104.63 (b)		50,000		25,000
Newport Television LLC, 13.00%, 3/15/17, Callable 3/15/12 @ 106.50 (b)		50,000		21,250
Radio One, Inc., 6.38%, 2/15/13, Callable 2/15/09 @ 103.19		50,000		22,500
				122,500
Media - Cable—3.6%
Atlantic Broadband Finance LLC, 9.38%, 1/15/14, Callable 1/15/09 @104.69		50,000		36,000
Cablevision Systems Corp., Series B, 8.00%, 4/15/12		25,000		21,031
Charter Communications Operating LLC, 10.88%, 9/15/14, Callable 3/15/12 @ 105.44 (b)		50,000		40,625
DIRECTV Holdings LLC, 7.63%, 5/15/16, Callable 5/15/12 @ 103.81 (b)		50,000		42,000
Mediacom LLC, 7.88%, 2/15/11, Callable 1/12/09 @ 100.00		100,000		85,000
Videotron Ltd., 9.13%, 4/15/18, Callable 4/15/13 @ 104.56 (b)		50,000		44,375
Virgin Media Finance plc, 9.13%, 8/15/16, Callable 8/15/11 @ 104.56		125,000		82,500
				351,531
Media - Diversified—0.9%
Block Communications, Inc., 8.25%, 12/15/15, Callable 12/15/10 @ 104.13 (b)		50,000		37,000
Canwest Mediaworks LP, 9.25%, 8/1/15, Callable 8/1/11 @ 104.63 (b)		50,000		30,500
Quebecor Media, Inc., 7.75%, 3/15/16, Callable 3/15/11 @ 103.88		25,000		17,313
				84,813
Media - Services—1.0%
Baker & Taylor, Inc., 11.50%, 7/1/13, Callable 7/1/10 @ 105.75 (b)		100,000		59,125
Lamar Media Corp., 6.63%, 8/15/15, Callable 8/15/10 @ 103.31		50,000		36,750
				95,875
Metals/Mining Excluding Steel—1.9%
Freeport-McMoran Copper & Gold, Inc., 8.25%, 4/1/15, Callable 4/1/11 @ 104.13		50,000		40,000
International Coal Group, Inc., 10.25%, 7/15/14, Callable 7/15/10 @ 105.13		50,000		42,000
Massey Energy Co., 6.88%, 12/15/13, Callable 12/15/09 @ 103.44		100,000		81,000
Noranda Aluminum Acquisition, 6.83%, 5/15/15, Callable 5/15/09 @ 101.00 (c)		50,000		22,500
				185,500

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Non-Food & Drug Retailers—2.7%
ACE Hardware Corp., 9.13%, 6/1/16, Callable 6/1/12 @ 104.56 (b)		25,000		18,750
AutoNation, Inc., 7.00%, 4/15/14, Callable 4/15/09 @ 105.25		50,000		32,500
Claire’s Stores, Inc., 9.63%, 6/1/15, Callable 6/1/11 @ 104.81		50,000		9,000
Hanesbrands, Inc., 6.51%, 12/15/14, Callable 12/15/08 @ 102.00 (c)		50,000		33,937
Libbey Glass, Inc., 9.93%, 6/1/11, Callable 6/11/09 @ 102.50 (c)		25,000		16,125
Penske Automotive Group, Inc., 7.75%, 12/15/16, Callable 12/15/11 @ 103.88		50,000		23,875
Pep Boys, 7.50%, 12/15/14, Callable 12/15/09 @ 103.75		50,000		24,000
Susser Holdings LLC, 10.63%, 12/15/13, Callable 12/15/09 @ 105.31		103,000		87,550
Yankee Acquisition Corp., 9.75%, 2/15/17, Callable 2/15/12 @ 104.88		50,000		24,813
				270,550
Oil & Gas—0.4%
Pioneer Natural Resources Co., 5.88%, 7/15/16		50,000		36,532
Oil Field Equipment & Services—0.9%
Bristow Group, Inc., 7.50%, 9/15/17, Callable 9/15/12 @ 103.75		50,000		37,500
CIE Gener de Geophysique, 7.50%, 5/15/15, Callable 5/15/10 @ 103.75		50,000		33,500
National Oilwell Varco, Inc., Series B, 6.13%, 8/15/15, Callable 8/15/10 @ 103.06		25,000		21,843
				92,843
Oil Refining & Marketing—1.0%
Petroplus Finance Ltd., 7.00%, 5/1/17, Callable 5/1/12 @ 103.50 (b)		50,000		32,750
Tesoro Corp.:
6.63%, 11/1/15, Callable 11/1/10 @ 103.31		50,000		34,000
6.50%, 6/1/17, Callable 6/1/12 @ 103.25		50,000		33,500
				100,250
Packaging—2.8%
Exopack Holding Corp., 11.25%, 2/1/14, Callable 2/1/10 @ 105.62		50,000		38,500
Intertape Polymer U.S., Inc., 8.50%, 8/1/14, Callable 8/1/09 @ 104.25		75,000		60,000
Owens-Brockway Glass Containers, 6.75%, 12/1/14, Callable 12/1/09 @ 103.38		50,000		43,250
Solo Cup Co., 8.50%, 2/15/14, Callable 2/15/09 @ 104.25		200,000		134,000
				275,750
Printing & Publishing—2.0%
Cenveo Corp., 10.50%, 8/15/16, Callable 8/15/12 @ 105.25 (b)		50,000		42,250
Morris Publishing, 7.00%, 8/1/13, Callable 8/1/09 @ 102.33		100,000		10,000

49 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Printing & Publishing, continued
R.H. Donnelley Corp., 6.88%, 1/15/13, Callable 1/15/09 @ 103.44		2,000		460
R.H. Donnelley, Inc., 11.75%, 5/15/15, Callable 5/15/12 @ 105.88 (b)		127,000		49,530
Sheridan Group, Inc., 10.25%, 8/15/11, Callable 8/15/09 @ 100.00		100,000		83,000
Valassis Communications, Inc., 8.25%, 3/1/15, Callable 3/1/11 @ 104.13		25,000		13,500
				198,740
Restaurants—2.1%
Buffets, Inc., 12.50%, 11/1/14, Callable 11/1/10 @ 106.25 (d)		50,000		125
Dave & Buster’s, Inc., 11.25%, 3/15/14, Callable 3/15/10 @ 105.62		50,000		37,250
Landry’s Restaurants, Inc., 9.45%, 12/15/14, Callable 2/28/09 @ 101.00		100,000		89,500
NPC International, Inc., 9.50%, 5/1/14, Callable 5/1/10 @ 104.75		50,000		31,000
Rare Restaurant Group LLC, 9.25%, 5/15/14, Callable 5/15/11 @ 104.63 (b)		50,000		25,000
Sbarro, Inc., 10.38%, 2/1/15, Callable 2/1/10 @ 107.78		50,000		29,000
				211,875
Software/Services—0.7%
CompuCom Systems, Inc., 12.50%, 10/1/15, Callable 10/1/11 @ 106.25 (b)		50,000		40,000
Unisys Corp., 12.50%, 1/15/16, Callable 1/15/12 @ 106.25		35,000		24,413
				64,413
Steel Producers/Products—1.4%
AK Steel Corp., 7.75%, 6/15/12, Callable 6/15/09 @ 101.29		100,000		80,000
Ryerson, Inc., 12.00%, 11/1/15, Callable 11/1/11 @ 106.00 (b)		50,000		34,000
Tube City IMS Corp., 9.75%, 2/1/15, Callable 2/1/11 @ 104.88		50,000		29,000
				143,000
Support - Services—6.3%
Aramark Services, Inc., 8.50%, 2/1/15, Callable 2/1/11 @104.25		75,000		64,125
Avis Budget Car Rental, Inc., 7.63%, 5/15/14, Callable 5/15/10 @ 103.81		100,000		36,000
Education Management LLC:
8.75%, 6/1/14, Callable 6/1/10 @ 104.38		25,000		18,250
10.25%, 6/1/16, Callable 6/1/11 @ 105.13		25,000		17,250
H&E Equipment Services, Inc., 8.38%, 7/15/16, Callable 7/15/11 @ 104.19		75,000		39,750
Hertz Corp., 8.88%, 1/1/14, Callable 1/1/10 @104.44		100,000		73,000
Iron Mountain, Inc., 8.63%, 4/1/13, Callable 4/1/09 @ 100.00		100,000		91,250
JohnsonDiversey, Inc., 9.63%, 5/15/12, Callable 5/15/09 @ 101.60		100,000		89,000
KAR Holdings, Inc., 8.75%, 5/1/14, Callable 5/1/10 @ 104.38		50,000		32,500

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Support - Services, continued
MediMedia USA, Inc., 11.38%, 11/15/14, Callable 11/15/09 @ 105.69 (b)		50,000		40,000
Pegasus Solutions, Inc., 10.50%, 4/15/15, Callable 4/15/11 @ 105.25 (b)		50,000		34,500
RSC Equipment Rental, Inc., 9.50%, 12/1/14, Callable 12/1/10 @ 104.75		50,000		30,000
Sotheby’s, 7.75%, 6/15/15 (b)		50,000		29,500
United Rentals, Inc., 6.50%, 2/15/12, Callable 12/15/09 @ 101.53		25,000		17,500
West Corp., 11.00%, 10/15/16, Callable 10/15/11 @ 105.50		25,000		11,687
				624,312
Telecom - Integrated/Services—3.7%
Broadview Networks Holdings, Inc., 11.38%, 9/1/12, Callable 9/1/09 @ 105.69		25,000		18,000
Cincinnati Bell, Inc., 8.38%, 1/15/14, Callable 1/15/09 @ 104.19		85,000		61,413
Citizens Communications Co., 7.13%, 3/15/19		50,000		30,750
Fairpoint Communications, Inc., 13.13%, 4/1/18, Callable 4/1/13 @ 106.56 (b)		25,000		17,625
Level 3 Financing, Inc., 9.25%, 11/1/14, Callable 11/1/10 @ 104.63		50,000		28,500
Nordic Telephone Co., Holdings, 8.88%, 5/1/16, Callable 5/1/11 @ 104.44 (b)		50,000		42,000
PAETEC Holding Corp., 9.50%, 7/15/15, Callable 7/15/11 @ 104.75		50,000		28,375
Qwest Corp., 7.63%, 6/15/15		150,000		114,750
Windstream Corp., 8.63%, 8/1/16, Callable 8/1/11 @ 104.31		25,000		18,875
				360,288
Telecom - Wireless—4.5%
Centennial Communications Corp., 10.00%, 1/1/13, Callable 1/1/09 @ 107.50		100,000		88,500
Cricket Communications, 9.38%, 11/1/14, Callable 11/1/10 @ 104.69		50,000		40,625
iPCS, Inc., 6.05%, 5/1/14, Callable 5/1/09 @ 101.00 (c)		100,000		69,000
MetroPCS Wireless, Inc., 9.25%, 11/1/14, Callable 11/1/10 @ 104.63		100,000		83,250
Sprint Capital Corp., 8.38%, 3/15/12		100,000		80,500
Wind Acquisition Financial SA, 10.75%, 12/1/15, Callable 12/1/10 @ 105.38 (b)		100,000		77,000
				438,875
Theaters & Entertainment—0.8%
AMC Entertainment, Inc., 11.00%, 2/1/16, Callable 2/1/11@ 105.50		100,000		79,000
Tobacco—0.4%
Alliance One International, Inc., 8.50%, 5/15/12		50,000		38,500
Transportation Excluding Air/Rail—0.3%
Navios Maritime Holdings, Inc., 9.50%, 12/15/14, Callable 12/15/10 @ 104.75		25,000		20,500
Swift Transportation Co., Inc., 10.55%, 5/15/15, Callable 5/15/09 @ 102.00 (b)(c)		50,000		10,000
				30,500

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 50

HSBC INVESTOR HIGH YIELD FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)	Value($)
TOTAL CORPORATE OBLIGATIONS (COST $13,987,036)			9,547,901
TOTAL INVESTMENTS (COST $14,005,584) — 96.8%			9,548,913

	Percentages indicated are based on net assets of $9,862,202.
(a)	Represents non-income producing security.
(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on October 31, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(d)	Non-Income Producing; Defaulted Bond.
(e)	Step Bond. Income recognition is on the effective yield method for Step Bonds.

LLC	—	Limited Liability Co.
LP	—	Limited Partnership
PLC	—	Public Limited Co.

51 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Certificates of Deposit—0.7%
	Shares or Principal Amount($)		Value($)
Banking—0.7%
First Tennessee Bank, 2.96%, 12/17/09 (a)		100,000		99,029
TOTAL CERTIFICATES OF DEPOSIT (COST $94,978)				99,029
U.S. Government and Government Agency Obligations—59.2%
Federal Home Loan Mortgage Corp.—13.0%
5.13%, 11/17/17		400,000		396,699
Pool #1B2655, 6.21%, 12/1/34 (a)(d)		90,336		90,780
Pool #1J1313, 6.37%, 6/1/36 (a)		212,618		215,762
Pool #847557, 5.89%, 7/1/34 (a)(d)		93,181		95,158
Pool #G02981, 6.00%, 6/1/37		162,895		162,701
TBA November:
5.00%, 11/15/22		660,000		644,325
5.50%, 11/15/22		150,000		149,297
				1,754,722
Federal National Mortgage Association—32.6%
3.25%, 8/12/10		150,000		150,374
Pool #922090, 5.84%, 3/1/37 (a)		268,540		271,281
TBA November:
5.00%, 11/15/36		350,000		331,516
5.50%, 11/15/36		2,175,000		2,124,703
6.00%, 11/15/37		975,000		974,391
6.50%, 11/15/37		550,000		557,391
				4,409,656
Government National Mortgage Association—4.6%
TBA November:
5.00%, 11/15/36		300,000		286,218
5.50%, 11/15/36		90,000		88,256
6.00%, 11/15/36		250,000		250,000
				624,474
U.S. Treasury Notes—9.0%
4.75%, 2/15/10		340,000		353,919
2.63%, 5/31/10		68,000		69,232
4.75%, 1/31/12		35,000		38,101
2.75%, 2/28/13		382,000		387,282
3.38%, 7/31/13		185,000		190,434
3.88%, 5/15/18		45,000		44,926
4.00%, 8/15/18		130,000		130,173
				1,214,067
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (COST $8,085,101)				8,002,919
Corporate Obligations—29.4%
Agricultural Chemicals—0.7%
Agrium, Inc., 6.75%, 1/15/19		100,000		90,203
Banking—0.5%
American Express Centurion Bank, 5.95%, 6/12/17		100,000		73,882
Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Building & Construction Products—1.4%
Martin Marietta Materials, Inc., 3.62%, 4/30/10 (a)		100,000		96,560
Masco Corp., 3.12%, 3/12/10 (a)(d)		100,000		94,183
				190,743
Chemicals—0.1%
Chemtura Corp., 6.88%, 6/1/16		25,000		15,625
Computer Services—0.7%
Electronic Data Systems, Series B, 6.00%, 8/1/13		100,000		94,399
Electric—4.5%
Duke Energy Corp., 5.65%, 6/15/13		75,000		67,723
Florida Power Corp., 5.65%, 6/15/18		75,000		66,395
MidAmerican Energy Co., 5.95%, 7/15/17		450,000		393,362
Puget Sound Energy, Inc., 6.97%, 6/1/67, Callable 6/1/17 @ 100		100,000		83,500
				610,980
Finance—5.9%
Bear Stearns Co., Inc.:
4.50%, 10/28/10		75,000		72,901
Series B, 6.95%, 8/10/12, MTN		150,000		148,014
Citigroup, Inc., 6.50%, 8/19/13		25,000		23,699
Countrywide Home Loans, Series L, 4.00%, 3/22/11, MTN		150,000		138,332
Ford Motor Credit Co., LLC, 9.75%, 9/15/10		300,000		204,015
Lehman Brothers Holdings, Series I, 0.00%, 5/2/18, MTN (e)(f)		75,000		9,750
Morgan Stanley, Series F, 6.00%, 4/28/15, MTN		75,000		60,941
XTRA Finance Corp., 5.15%, 4/1/17		150,000		136,362
				794,014
Forestry/Paper—0.1%
Georgia-Pacific Corp., 7.70%, 6/15/15		25,000		17,375
Gaming—0.1%
MGM MIRAGE, Inc., 6.75%, 4/1/13		25,000		15,625
Health Services—0.2%
Community Health Systems, Inc., 8.88%, 7/15/15, Callable 7/15/11 @ 104.44		25,000		20,938
Hospitals—0.4%
HCA, Inc., 5.75%, 3/15/14		100,000		59,000
Media—2.9%
Time Warner Entertainment, 8.88%, 10/1/12		350,000		344,075
Vivendi, 5.75%, 4/4/13 (b)		50,000		45,936
				390,011
Media - Cable—0.2%
Cablevision Systems Corp., Series B, 8.00%, 4/15/12		25,000		21,031
Medical—0.2%
Glaxosmithkline Capital, Inc., 4.85%, 5/15/13		25,000		23,713

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 52

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Corporate Obligations, continued
	Shares or Principal Amount($)		Value($)
Office Equipment & Services—0.7%
Xerox Corp., 3.63%, 12/18/09 (a)(d)		100,000		91,227
Oil & Gas—0.1%
Pioneer Natural Resources Co., 5.88%, 7/15/16		25,000		18,266
Pipelines—0.7%
Dynegy Holdings, Inc., 7.75%, 6/1/19		25,000		16,750
Transcontinental Gas Pipeline Corp., 6.05%, 6/15/18		100,000		79,993
				96,743
Retail—0.2%
Kroger Co. (The), 5.00%, 4/15/13		25,000		22,542
Support - Services—0.3%
Aramark Services, Inc., 8.50%, 2/1/15, Callable 2/1/11 @104.25		25,000		21,375
Iron Mountain, Inc., 8.00%, 6/15/20, Callable 6/15/13 @ 104		25,000		19,625
				41,000
Telecom - Integrated/Services—0.1%
Qwest Corp., 7.63%, 6/15/15		25,000		19,125
Telecommunications—2.6%
Sprint Nextel Corp., 6.00%, 12/1/16		135,000		93,487
Verizon Pennsylvania, Inc., 5.65%, 11/15/11		275,000		257,789
				351,276
Transportation—6.9%
American Airlines, Inc.:
Series 2001-2, Class A1, 6.98%, 4/1/11		56,774		52,091
Series 2001-2, Class A2, 7.86%, 10/1/11		200,000		159,000
Burlington Northern Santa Fe Railway Co., 4.83%, 1/15/23		230,919		222,400
Continental Airlines, Inc., 5.98%, 4/19/22		100,000		69,500
Norfolk Southern Corp., 5.75%, 4/1/18		50,000		43,038
Union Pacific Corp., 5.75%, 11/15/17		150,000		127,129
Union Pacific Railroad, 5.08%, 1/2/29		293,571		247,530
				920,688
TOTAL CORPORATE OBLIGATIONS (COST $4,664,535)				3,978,406
Asset Backed Securities—21.4%
Asset Backed Funding Certificates, Series 2003-AHL1, Class A1, 3.68%, 3/25/33		210,318		174,153
Cairn Mezzanine plc, Series 2007-3A, Class B1, 3.70%, 8/13/47 (a)(b)		145,000		0
Capital Auto Receivables Asset Trust:
Series 2005-1, Class A5, 4.66%, 1/15/10 (a)(d)		47,113		46,996
Series 2006-SN1A, Class A3, 5.31%, 10/20/09 (b)(d)		30,933		30,933
Series 2006-SN1A, Class A4B, 4.39%, 3/20/10 (a)(b)(d)		150,000		147,743
Series 2007-SN1, Class A3A, 5.47%, 7/15/10 (a)(d)		100,000		99,009
Asset Backed Securities, continued
	Shares or Principal Amount($)		Value($)
Series 2007-SN1, Class A3B, 4.62%, 7/15/10 (a)(d)		110,000		107,451
Capital One Prime Auto Receivables Trust:
Series 2005-1, Class A4, 4.58%, 4/15/11 (a)(d)		56,927		55,746
Series 2006-1, Class A3, 4.99%, 9/15/10 (d)		103,464		103,462
Carmax Auto Owner Trust, Series 2008-2, Class A2B, 5.46%, 9/15/11 (a)(d)		190,000		182,690
Chase Issuance Trust, Series 2005-A12, Class A, 4.57%, 2/15/11 (a)(d)		190,000		189,117
Countrywide Asset-Backed Certificates:
Series 2006-S2, Class A5, 5.75%, 7/25/27 (a)		134,000		37,510
Series 2006-S4, Class A3, 5.80%, 7/25/34		209,304		121,552
Ford Credit Auto Owner Trust, Series 2006-C, Class A2A, 5.29%, 12/15/09 (d)		99,232		99,194
GE Business Loan Trust, Series 2006-2A, Class A, 4.74%, 11/15/34 (a)(b)(d)		234,628		194,307
GMAC Mortgage Corp., Loan Trust, Series 2006-HE3, Class A3, 5.81%, 10/25/36		170,000		95,285
Hyundai Auto Receivables Trust:
Series 2007-A, Class A2B, 4.91%, 1/15/10 (a)(d)		27,636		27,583
Series 2008-A, Class A2, 4.16%, 5/16/11 (d)		140,000		137,338
IOWA Student Loan Liquidity Corp., Series 2005-1, Class A1, 3.24%, 6/25/14 (a)(d)		46,087		45,838
National Collegiate Student Loan Trust, Series 2006-3, Class A1, 3.29%, 9/25/19 (a)(d)		105,364		93,440
Nissan Auto Receivables Owner Trust, Series 2006-B, Class A3, 5.16%, 2/15/10 (d)		53,588		53,552
Preferred Term Securities XXII Ltd., 3.16%, 9/22/36, Callable 6/22/11 @ 100 (a)(b)(d)		196,273		106,086
Residential Funding Mortgage Securities, Series 2006-HSA1, Class A5, 5.31%, 2/25/36		65,000		16,658
SLM Student Loan Trust:
Series 2005-4, Class A2, 3.62%, 4/26/21 (a)(d)		60,000		55,762
Series 2005-9, Class A4, 3.64%, 1/25/23 (a)(d)		190,000		179,690
Series 2006-7, Class A2, 3.53%, 10/25/16 (a)(d)		167,543		167,226
Series 2006-9, Class A2, 3.54%, 4/25/17 (a)(d)		33,569		33,402
Series 2006-B, Class A1, 2.83%, 9/15/20 (a)(d)		147,433		137,850
South Carolina Student Loan Corp., Series 2008-1, Class A1, 3.31%, 9/2/14 (a)(d)		126,487		123,917
World Omni Auto Receivables Trust, Series 2007-B, Class A2B, 4.88%, 2/16/10 (a)(d)		38,426		38,364
TOTAL ASSET BACKED SECURITIES (COST $3,444,458)				2,901,854

53 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERMEDIATE DURATION FIXED INCOME PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Collateralized Mortgage Obligations—5.6%
	Shares or Principal Amount($)		Value($)
Banc of America Mortgage Securities, Series 2005-D, Class 2A4, 4.79%, 5/25/35 (a)(d)		176,166		169,438
Deutsche Mortgage Securities, Inc., Series 2006-WF1, Class 1A1, 5.09%, 6/26/35 (a)(b)		125,537		124,963
Freddie Mac:
Series 2988, Class AF, 4.89%, 6/15/35 (a)(d)		146,963		138,355
Series 3212, Class BK, 5.40%, 9/15/36		150,000		137,866
Residential Asset Securitization Trust, Series 2003-A15, Class 1A2, 3.71%, 2/25/34 (a)(d)		214,932		190,967
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (COST $806,547)				761,589
Commercial Mortgage Backed Securities—7.9%
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A2B, 5.21%, 12/11/49		200,000		174,489
Commercial Mortgage Pass - Through Certificate:
Series 2005-LP5, Class AJ, 5.05%, 5/10/43		200,000		135,573
Series 2006-FL12, Class A2, 4.66%, 12/15/20 (a)(b)(d)		239,553		203,889
Greenwich Capital Commercial Funding Corp.:
Series 2006-GG7, Class A2, 5.91%, 7/10/38 (a)		90,000		83,225
Series 2006-GG7, Class A4, 5.91%, 7/10/38 (a)		140,000		111,661
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A2, 5.26%, 9/15/39		70,000		64,299
Morgan Stanley Capital I, Series 2007-IQ14, Class A2, 5.61%, 4/15/49		220,000		190,911
Washington Mutual Commercial Mortgage Securities Trust, Series 2006-SL1, Class A, 5.30%, 11/23/43 (a)(b)		144,541		108,406
TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (COST $1,295,102)				1,072,453
Foreign Bonds—0.6%
United Kingdom—0.6%
Barclays Bank plc, 5.93%, 12/31/49 (b)		150,000		80,524
TOTAL FOREIGN BONDS (COST $151,088)				80,524
Municipal Bonds—0.5%
Arizona Educational Loan Marketing Corp. Educational Loan Revenue, Series A-1-B, 3.71%, 1/25/10, (Credit Support Guaranteed Student Loans) (a)(d)		74,000		72,335
TOTAL MUNICIPAL BONDS (COST $73,934)				72,335
Investment Company—13.6%
	Shares or Principal Amount($)		Value($)
Northern Institutional Diversified Assets Portfolio, Shares Class, 0.82% (c)(d)		1,838,531		1,838,531
TOTAL INVESTMENT COMPANY (COST $1,838,531)				1,838,531
TOTAL INVESTMENTS (COST $20,454,274) — 139.0%				18,807,640

	Percentages indicated are based on net assets of $13,530,986.
(a)	Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on October 31, 2008. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(b)	Security exempt from registration under Rule 144a of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.
(d)	Security held as collateral for to be announced securities.
(e)	Security is non-income producing; Defaulted Bond.
(f)	In connection with the Lehman Brothers Holdings, Inc. bankruptcy filing announcement on September 15, 2008, the Fund stopped accruing prospective interest amounts on that date.

LB	—	Lehman Brothers
LLC	—	Limited Liability Co.
MTN	—	Medium Term Note
PLC	—	Public Limited Co.
TBA	—	Security was traded on a “to be announced” basis. Represents 40.0% of net assets.

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 54

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Common Stocks—97.1%
	Shares		Value($)
Aerospace & Defense—2.3%
Precision Castparts Corp.		15,400		998,074
Rockwell Collins, Inc.		24,500		912,135
				1,910,209
Agriculture—3.1%
Monsanto Co.		28,800		2,562,624
Biotechnology—8.3%
Cephalon, Inc. (a)		10,700		767,404
Genzyme Corp. (a)		34,900		2,543,512
Gilead Sciences, Inc. (a)		58,900		2,700,565
Illumina, Inc. (a)		24,900		767,667
				6,779,148
Business Services—0.7%
Ecolab, Inc.		14,900		555,174
Coal—0.8%
Consol Energy, Inc.		21,200		665,468
Communication Equipment—3.5%
Cisco Systems, Inc. (a)		117,800		2,093,306
Juniper Networks, Inc. (a)		39,500		740,230
				2,833,536
Computer Storage—1.1%
EMC Corp. (a)		76,200		897,636
Credit Card—4.3%
MasterCard, Inc., Class A		9,600		1,419,072
Visa, Inc., Class A		37,800		2,092,230
				3,511,302
Distribution & Wholesale—1.8%
Fastenal Co.		37,000		1,489,620
Electric, Gas & Water—0.8%
FirstEnergy Corp.		12,800		667,648
Engineering & Construction—2.0%
Fluor Corp.		19,100		762,663
Quanta Services, Inc. (a)		46,000		908,960
				1,671,623
Exchanges—1.5%
IntercontinentalExchange, Inc. (a)		14,800		1,266,288
Hardware & Peripherals—4.6%
Apple, Inc. (a)		12,000		1,291,080
Hewlett-Packard Co.		63,800		2,442,264
				3,733,344
Household Products—1.6%
The Procter & Gamble Co.		19,800		1,277,892
Industrial Conglomerates—6.9%
Danaher Corp.		40,900		2,422,916
SPX Corp.		33,300		1,290,042
United Technologies Corp.		36,000		1,978,560
				5,691,518
Internet—2.4%
Google, Inc., Class A (a)		5,480		1,969,293
Common Stocks, continued
	Shares		Value($)
Investment Management—2.5%
BlackRock, Inc.		6,100		801,174
The Charles Schwab Corp.		66,500		1,271,480
				2,072,654
Medical Products—6.8%
Alcon, Inc. ADR		8,300		731,396
Allergan, Inc.		24,100		956,047
Baxter International, Inc.		26,000		1,572,740
Mindray Medical International Ltd. ADR		33,690		726,356
St. Jude Medical, Inc. (a)		42,500		1,616,275
				5,602,814
Medical Services & Distributors—6.9%
Medco Health Solutions, Inc. (a)		94,300		3,578,685
Thermo Fisher Scientific, Inc. (a)		50,800		2,062,480
				5,641,165
Oil & Gas Drill & Equipment—2.2%
FMC Technologies, Inc. (a)		23,300		815,267
Weatherford International Ltd. (a)		56,800		958,784
				1,774,051
Oil & Gas Exploration & Production—1.4%
Southwestern Energy Co. (a)		32,400		1,154,088
Pharmaceuticals—2.2%
Teva Pharmaceutical Industries Ltd. ADR		41,100		1,762,368
Railroad—3.4%
Norfolk Southern Corp.		17,900		1,072,926
Union Pacific Corp.		25,400		1,695,958
				2,768,884
Retail—7.4%
Costco Wholesale Corp.		17,800		1,014,778
Kohl’s Corp. (a)		24,100		846,633
Lowe’s Cos., Inc.		37,700		818,090
Target Corp.		29,200		1,171,504
Wal-Mart Stores, Inc.		40,100		2,237,981
				6,088,986
Retail Pharmacy—2.4%
CVS Caremark Corp.		63,000		1,930,950
Software Services—7.4%
Cognizant Technology Solutions Corp. (a)		78,400		1,505,280
Dolby Laboratories, Inc., Class A (a)		24,800		782,936
Microsoft Corp.		110,700		2,471,931
Oracle Corp. (a)		71,000		1,298,590
				6,058,737
Solar—1.0%
First Solar, Inc. (a)		5,700		819,090
Telecommunication—5.5%
Equinix, Inc. (a)		19,400		1,210,948
QUALCOMM, Inc.		86,000		3,290,360
				4,501,308
Transportation—1.3%
C.H. Robinson Worldwide, Inc.		20,700		1,071,846

55 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR GROWTH PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Common Stocks, continued
	Shares		Value($)
Travel & Leisure—1.0%
Priceline.com, Inc. (a)		15,500		815,765
TOTAL COMMON STOCKS (COST $99,596,095)				79,545,029
Investment Company—5.8%
Northern Institutional Diversified Assets Portfolio, Shares Class, 0.82% (b)		4,761,126		4,761,126
TOTAL INVESTMENT COMPANY (COST $4,761,126)				4,761,126
TOTAL INVESTMENTS (COST $104,357,221) — 102.9%				84,306,155

	Percentages indicated are based on net assets of $81,941,512.
(a)	Represents non-income producing security.
(b)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.

ADR  —  American Depositary Receipt

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 56

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Common Stocks—96.5%
	Shares		Value($)
Australia—2.3%
BHP Billiton Ltd.		98,200		1,885,840
Caltex Australia Ltd.		66,600		419,310
Lend Lease Corp., Ltd.		143,700		664,688
National Australia Bank Ltd.		47,565		771,507
OZ Minerals Ltd.		316,752		198,914
Qantas Airways Ltd.		412,833		670,300
				4,610,559
Austria—0.6%
Voestalpine AG		51,400		1,254,245
Belgium—1.2%
Fortis		60,632		68,770
Solvay SA, Class A		24,600		2,287,892
				2,356,662
Brazil—0.2%
Banco Do Brasil SA		60,000		396,305
Canada—5.1%
Barrick Gold Corp.		37,500		857,819
Canadian Imperial Bank of Commerce		21,000		952,739
Fairfax Financial Holdings Ltd.		5,200		1,428,619
Gerdau Ameristeel Corp.		89,300		478,075
Industrial Alliance Insurance and Financial Services, Inc.		26,100		541,584
Inmet Mining Corp.		11,300		253,706
Nexen, Inc.		40,284		639,970
Petro-Canada		90,000		2,251,494
Royal Bank of Canada		45,400		1,765,053
Teck Cominco Ltd., B Shares		41,100		409,362
WestJet Airlines Ltd.		59,300		508,440
				10,086,861
China—0.6%
China Petroleum & Chemical Corp.		1,920,000		1,260,840
Finland—2.1%
Nokia Oyj		129,400		1,981,949
Stora Enso Oyj, R Shares		236,600		2,199,992
				4,181,941
France—14.7%
Air France-KLM		28,700		413,454
BNP Paribas SA		64,580		4,662,229
Compagnie Generale des Establissements Michelin, B Shares		39,700		2,043,167
Credit Agricole SA		185,402		2,681,907
France Telecom SA		107,200		2,702,802
Lagardere SCA		46,400		1,844,655
Renault SA		51,500		1,578,181
Sanofi-Aventis		68,900		4,364,808
Societe Generale		44,231		2,410,536
Total SA		109,700		6,034,287
Vallourec SA		4,500		503,308
				29,239,334
Germany—13.5%
Allianz SE		39,800		2,994,584
BASF AG		127,200		4,269,723

Common Stocks, continued
	Shares		Value($)
Germany, continued
Deutsche Bank AG		64,400		2,447,181
Deutsche Lufthansa AG		162,600		2,262,064
Deutsche Telekom AG		220,300		3,270,737
E.ON AG		115,500		4,419,777
Infineon Technologies AG (a)		304,300		951,825
Muenchener Rueckversicherungs-Gesellschaft AG		27,700		3,668,974
RWE AG		31,860		2,649,103
				26,933,968
India—0.4%
State Bank of India GDR		17,600		805,200
Italy—3.1%
ENI SpA		189,900		4,532,045
Fondiaria-SAI SpA		52,400		984,315
Telecom Italia SpA		536,000		615,668
				6,132,028
Japan—18.4%
Alps Electric Co., Ltd.		55,000		302,628
FUJITSU Ltd.		573,000		2,253,381
Hitachi Ltd.		170,000		798,321
Honda Motor Co., Ltd.		99,000		2,462,174
JFE Holdings, Inc.		86,100		2,197,321
Mitsubishi Chemical Holdings Corp.		303,000		1,225,178
Mitsubishi Corp.		129,000		2,162,718
Mitsui & Co., Ltd.		149,000		1,444,030
Mitsui O.S.K. Lines Ltd.		234,000		1,222,176
NAMCO BANDAI Holdings, Inc.		123,800		1,273,343
Nippon Mining Holdings, Inc.		360,000		1,102,311
Nippon Steel Corp.		329,000		1,107,611
Nippon Telegraph & Telephone Corp.		630		2,571,377
Nippon Yusen Kabushiki Kaisha		50,000		241,833
Nissan Motor Co., Ltd.		534,700		2,656,072
ORIX Corp.		21,300		2,188,873
Sharp Corp.		261,000		1,863,202
Sony Corp.		12,510		296,552
Sumitomo Mitsui Financial Group, Inc.		570		2,285,517
The Tokyo Electric Power Co., Inc.		100,900		2,858,120
Toshiba Corp.		543,000		1,963,027
Toyota Motor Corp.		56,700		2,214,637
				36,690,402
Luxembourg—0.8%
ArcelorMittal		64,352		1,673,566
Netherlands—2.6%
ING Groep NV		155,768		1,460,992
Koninklijke Ahold NV		266,720		2,863,012
Koninklijke DSM NV		32,100		893,832
				5,217,836
Norway—1.5%
StatoilHydro ASA		153,100		3,081,362
Russian Federation—0.7%
JSC MMC Norilsk Nickel ADR		68,750		689,953
LUKOIL ADR		16,550		635,372
				1,325,325

57 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008 (continued)

Common Stocks, continued
	Shares		Value($)
Singapore—0.4%
Flextronics International Ltd. (a)		80,400		336,072
Neptune Orient Lines Ltd.		427,000		360,769
				696,841
South Africa—0.6%
Sanlam Ltd.		554,040		910,406
Standard Bank Group Ltd.		31,023		246,649
				1,157,055
South Korea—1.1%
Honam Petrochemical Corp.		8,100		331,597
Hynix Semiconductor, Inc. (a)		24,700		211,635
Industrial Bank of Korea GDR		88,300		488,915
KB Financial Group, Inc. ADR (a)		14,600		359,306
Samsung Electronics Co., Ltd., Preferred		2,900		761,674
				2,153.127
Spain—1.1%
Repsol YPF SA		118,600		2,255,028
Sweden—1.5%
Ericsson LM, B Shares		83,000		565,321
Nordea Bank AB		73,600		590,233
Svenska Cellusoa AB (SCA), B Shares		189,700		1,401,579
Volvo AB, B Shares		86,500		452,262
				3,009,395
Switzerland—3.8%
Credit Suisse Group		81,100		3,033,689
Novartis AG		90,330		4,586,554
				7,620,243
Taiwan—1.0%
China Steel Corp. GDR		40,044		572,629
Compal Electronics, Inc.		581,895		417,870
Taiwan Semiconductor Manufacturing Co., Ltd.		510,961		743,872
United Microelectronics Corp.		1,143,805		314,232
				2,048,603
Thailand—0.3%
PTT Public Co., Ltd.		121,400		558,102
United Kingdom—18.9%
Associated British Foods plc		199,300		2,229,597
Aviva plc		352,191		2,100,382
Barclays plc		591,100		1,694,081
BP plc		319,500		2,603,851
British Energy Group plc		277,000		3,312,478
GlaxoSmithKline plc		259,600		4,989,491
HBOS plc		853,235		1,396,818
Kazakhmys plc		84,600		396,563
Lloyds TSB Group plc		370,300		1,196,597
Royal Bank of Scotland Group plc		1,065,102		1,172,982
Royal Dutch Shell plc, A Shares		277,887		7,701,302
Royal Dutch Shell plc, B Shares		45,973		1,246,147
RSA Insurance Group plc		776,127		1,725,616
Vodafone Group plc		2,624,658		5,048,034
Xstrata plc		51,700		884,107
				37,698,046

Common Stocks, continued
	Shares		Value($)
TOTAL COMMON STOCKS (COST $313,588,837)				192,442,874
Right—0.0%
Belgium—0.0%
Fortis (a)		121,532		0
Investment Company—2.4%
Northern Institutional Diversified Assets Portfolio, Shares Class, 0.82% (b)		4,744,098		4,744,098
TOTAL INVESTMENT COMPANY (COST $4,744,098)				4,744,098
TOTAL INVESTMENTS (COST $318,332,935) — 98.9%				197,186,972

	Percentages indicated are based on net assets of $199,308,910.
(a)	Represents non-income producing security.
(b)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.

ADR	— American Depositary Receipt
GDR	— Global Depositary Receipt
PLC	— Public Limited Co.
SPA	— Standby Purchase Agreement

Schedule Portfolio Investments - October 31, 2008
Industry	Percent of Net Assets
Automotive	5.5	%
Banking & Financial Services	17.6	%
Broadcasting	0.0	%
Building & Construction	0.7	%
Cash & Cash Equivalents	2.4	%
Chemicals	4.5	%
Drugs - Medical	7.0	%
Electrical	7.6	%
Electronic Components & Semiconductors	4.7	%
Food & Beverage	1.1	%
Import/Export	0.7	%
Insurance	6.5	%
Manufacturing	1.9	%
Metals & Mining	6.7	%
Oil & Gas	17.4	%
Paper & Related Products	1.1	%
Publishing	0.9	%
Retail	1.4	%
Telecommunications	8.4	%
Transportation Services	2.8	%
Total Investments	98.9	%

At October 31, 2008 the portfolio’s open forward currency contracts were as follows:

Currency	Delivery Date	Amount (Local Currency)	Contract Value (U.S. Dollars) ($)	Value ($)	Unrealized Appreciation/ (Depreciation) ($)
SHORT CONTRACTS
Canadian Dollar	12/15/08	7,997,000	6,689,531	6,638,553	50,978

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 58

HSBC INVESTOR OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Common Stocks—96.8%
	Shares		Value($)
Aerospace & Defense—1.4%
BE Aerospace, Inc. (a)		142,500		1,833,975
Biotechnology—5.2%
Illumina, Inc. (a)		144,300		4,448,769
Invitrogen Corp. (a)		76,900		2,213,951
				6,662,720
Business Services—2.3%
Navigant Consulting, Inc. (a)		179,550		2,903,324
Computer Software—14.9%
ACI Worldwide, Inc. (a)		92,200		1,263,140
BMC Software, Inc. (a)		127,400		3,289,468
Brocade Communications Systems, Inc. (a)		342,200		1,290,094
Check Point Software Technologies Ltd. (a)		155,450		3,143,199
Citrix Systems, Inc. (a)		108,200		2,788,314
NetApp, Inc. (a)		91,400		1,236,642
Nuance Communications, Inc. (a)		262,850		2,405,077
Satyam Computer Services Ltd. ADR		135,400		2,129,842
VeriFone Holdings, Inc. (a)		138,400		1,572,224
				19,118,000
Consumer Products—8.1%
AptarGroup, Inc.		58,500		1,773,720
Church & Dwight Co., Inc.		72,100		4,260,389
Crown Holdings, Inc. (a)		135,400		2,732,372
Packaging Corp. of America		93,800		1,578,654
				10,345,135
Diversified Manufacturing Operations—2.6%
Actuant Corp., Class A		44,800		803,264
AMETEK, Inc.		74,500		2,477,125
				3,280,389
Education—4.7%
Corinthian Colleges, Inc. (a)		154,429		2,205,246
DeVry, Inc.		67,350		3,818,072
				6,023,318
Electronic Components & Semiconductors—0.5%
ATMI, Inc. (a)		51,300		623,808
Financial Services—5.4%
Annaly Capital Management, Inc.		72,100		1,002,190
Huntington Bancshares, Inc.		152,600		1,442,070
PrivateBancorp, Inc.		86,600		3,118,466
Zions Bancorporation		36,900		1,406,259
				6,968,985
Health Care—8.2%
DaVita, Inc. (a)		71,300		4,046,275
DENTSPLY International, Inc.		58,500		1,777,230
Gen-Probe, Inc. (a)		65,700		3,091,842
Pediatrix Medical Group, Inc. (a)		40,450		1,563,392
				10,478,739
Homebuilders—1.3%
Toll Brothers, Inc. (a)		70,500		1,629,960

Common Stocks, continued
	Shares		Value($)
Industrial Manufacturing—5.7%
IDEX Corp.		99,400		2,304,092
Mettler-Toledo International, Inc. (a)		49,650		3,800,211
WESCO International, Inc. (a)		62,500		1,242,500
				7,346,803
Internet Related—1.4%
VeriSign, Inc. (a)		85,000		1,802,000
Media—1.4%
DreamWorks Animation SKG, Inc. (a)		61,700		1,733,770
Oil & Gas—9.5%
BJ Services Co.		54,900		705,465
Consol Energy, Inc.		35,700		1,120,623
Denbury Resources, Inc. (a)		247,700		3,148,267
Exterran Holdings, Inc. (a)		64,900		1,454,409
Massey Energy Co.		143,250		3,307,642
Range Resources Corp.		56,900		2,402,318
				12,138,724
Pharmaceuticals—12.6%
Alexion Pharmaceuticals, Inc. (a)		121,350		4,945,012
Elan Corp. plc ADR (a)		262,900		2,005,927
OSI Pharmaceuticals, Inc. (a)		125,050		4,745,648
Santarus, Inc. (a)		236,400		397,152
Shire plc ADR		102,600		4,047,570
				16,141,309
Retail—4.7%
Foot Locker, Inc.		111,400		1,628,668
O’Reilly Automotive, Inc. (a)		80,900		2,193,199
PetSmart, Inc.		110,600		2,177,714
				5,999,581
Telecommunications—3.2%
Comverse Technology, Inc. (a)		218,800		1,590,676
Polycom, Inc. (a)		116,250		2,442,413
				4,033,089
Transportation—2.3%
Kansas City Southern (a)		96,200		2,969,694
Utilities—1.4%
Equitable Resources, Inc.		52,900		1,836,159
TOTAL COMMON STOCKS (COST $154,485,572)				123,869,482
Investment Company—3.7%
Northern Institutional Government Select Portfolio, Shares Class, 1.19% (b)		4,716,252		4,716,252
TOTAL INVESTMENT COMPANY (COST $4,716,252)				4,716,252
TOTAL INVESTMENTS (COST $159,201,824) — 100.5%				128,585,734

Percentages indicated are based on net assets of $127,969,639.
(a)	Represents non-income producing security.
(b)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.

ADR	— American Depositary Receipt
PLC	— Public Limited Co.

59 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR VALUE PORTFOLIO

Schedule of Portfolio Investments—as of October 31, 2008

Common Stocks—91.4%
	Shares		Value($)
Aerospace & Defense—5.5%
Lockheed Martin Corp.		14,900		1,267,245
Raytheon Co.		28,300		1,446,413
				2,713,658
Banking—3.5%
Wells Fargo & Co.		50,700		1,726,335
Business Services—3.6%
Pitney Bowes, Inc.		71,600		1,774,248
Computer Software—9.3%
CA, Inc.		135,600		2,413,680
Microsoft Corp.		98,900		2,208,437
				4,622,117
Conglomerates—2.6%
Loews Corp.		38,332		1,273,006
Consumer Products—6.0%
Altria Group, Inc.		30,800		591,052
Kimberly-Clark Corp.		27,500		1,685,475
Kraft Foods, Inc.		25,069		730,511
				3,007,038
Diversified Manufacturing Operations—2.4%
Illinois Tool Works, Inc.		18,400		614,376
Ingersoll-Rand Co., Class A		32,400		597,780
				1,212,156
Energy—1.6%
NRG Energy, Inc. (a)		33,800		785,850
Financial Services—4.2%
JP Morgan Chase & Co.		50,750		2,093,437
Insurance—7.4%
Aetna, Inc.		18,800		467,556
Aon Corp.		32,700		1,383,210
Genworth Financial, Inc., Class A		93,500		452,540
MetLife, Inc.		30,100		999,922
The Hartford Financial Services Group, Inc.		37,300		384,936
				3,688,164
Media—6.5%
CBS Corp., Class B		34,350		333,538
Comcast Corp., Class A		51,650		796,443
Liberty Media Corp. Interactive, Class A (a)		37,087		180,985
Viacom, Inc., Class B (a)		94,000		1,900,680
				3,211,646
Metals & Mining—6.4%
AngloGold Ashanti Ltd. ADR		70,027		1,277,993
Barrick Gold Corp.		62,600		1,422,272
United States Steel Corp.		13,800		508,944
				3,209,209

Common Stocks, continued
	Shares		Value($)
Oil & Gas—12.1%
Apache Corp.		24,400		2,008,852
ConocoPhillips		9,571		497,883
Hess Corp.		13,600		818,856
Noble Energy, Inc.		40,700		2,109,074
Talisman Energy, Inc.		55,200		556,416
				5,991,081
Paper & Related Products—0.8%
International Paper Co.		22,300		384,006
Pharmaceuticals—6.0%
Amgen, Inc. (a)		27,000		1,617,030
Sanofi-Aventis ADR		42,700		1,350,174
				2,967,204
Telecommunications—6.6%
AT&T, Inc.		51,791		1,386,445
Motorola, Inc.		202,400		1,086,888
Verizon Communications, Inc.		27,800		824,826
				3,298,159
Tobacco—4.5%
Lorillard, Inc.		13,627		897,474
Philip Morris International, Inc.		30,800		1,338,876
				2,236,350
Transportation—2.4%
Union Pacific Corp.		18,000		1,201,860
TOTAL COMMON STOCKS
(COST $58,020,424				45,395,524
Investment Company—9.8%
Northern Institutional Government Select Portfolio, Shares Class, 1.19% (b)		4,851,586		4,851,586
TOTAL INVESTMENT COMPANY (COST $4,851,586)				4,851,586
TOTAL INVESTMENTS (COST $62,864,410) — 101.2%				50,247,110

	Percentages indicated are based on net assets of $49,663,172.
(a)	Represents non-income producing security.
(b)	The rates presented represent the annualized one day yield that was in effect on October 31, 2008.

ADR  — American Depositary Receipt

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 60

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of October 31, 2008

	Core Plus Fixed Income Portfolio		High Yield Fixed Income Portfolio		Intermediate Duration Fixed Income Portfolio		Growth Portfolio		International Equity Portfolio
Assets:
Investments in non-affiliates, at value	$	106,142,905	$	9,548,913	$	18,807,640	$	84,306,155	$	197,186,972
Foreign currency, at value		—		—		—		—		887,216
Variation margin on forward foreign currency exchange contracts		—		—		—		—		50,978
Segregated cash balances with brokers for futures contracts		226,031		—		42,034		—		—
Variation margin on futures contracts		228,891		—		45,938		—		—
Interest and dividends receivable		826,801		360,084		114,507		17,099		855,270
Receivable for investments sold		6,946,604		84,625		7,467		673,542		485,998
Prepaid expenses and other assets		174		540		—		384		493
Total Assets		114,371,406		9,994,162		19,017,586		84,997,180		199,466,927
Liabilities:
Cash overdraft		—		125,637		—		—		—
Payable for investments purchased		32,592,501		—		5,476,635		2,930,835		—
Accrued expenses and other liabilities:
Investment Management		40,706		5,517		4,707		119,846		122,908
Administration		1,579		183		236		1,396		3,455
Compliance Service		150		9		9		51		490
Trustee		77		11		11		67		203
Other		8,516		603		5,002		3,473		30,961
Total Liabilities		32,643,529		131,960		5,486,600		3,055,668		158,017
Net Assets:
Applicable to investors’ beneficial interest	$	81,727,877	$	9,862,202	$	13,530,986	$	81,941,512	$	199,308,910
Total Investments, at cost	$	118,769,635	$	14,005,584	$	20,454,274	$	104,357,221	$	318,332,935
Foreign currency, at cost	$	—	$	—	$	—	$	—	$	891,417

61 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Assets and Liabilities—as of October 31, 2008 (continued)

	Opportunity Portfolio		Value Portfolio
Assets:
Investments in non-affiliates, at value	$	128,585,734	$	50,247,110
Interest and dividends receivable		21,479		63,780
Receivable for investments sold		1,964,302		—
Prepaid expenses and other assets		254		76
Total Assets		130,571,769		50,310,966
Liabilities:
Payable for investments purchased		2,501,090		623,619
Accrued expenses and other liabilities:
Investment Management		86,166		20,875
Administration		2,111		783
Compliance Services		116		42
Trustee		135		54
Other		12,512		2,421
Total Liabilities		2,602,130		647,794
Net Assets:
Applicable to investors’ beneficial interest	$	127,969,639	$	49,663,172
Total Investments, at cost	$	159,201,824	$	62,864,410

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 62

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the year ended October 31, 2008

	Core Plus Fixed Income Portfolio			High Yield Fixed Income Portfolio			Intermediate Duration Fixed Income Portfolio			Growth Portfolio			International Equity Portfolio
Investment Income:
Interest	$	5,571,151		$	1,238,822		$	697,529		$	—		$	62,754
Dividends		159,338			6,169			37,052			663,139			13,819,514
Foreign tax withholding		—			—			—			—			(1,896,444	)
Total Investment Income		5,730,489			1,244,991			734,581			663,139			11,985,824
Expenses:
Investment Management		512,368			80,253			58,198			419,329			2,264,311
Administration		22,821			2,861			3,115			17,490			75,275
Accounting		68,386			81,154			63,439			53,618			96,381
Compliance Service		518			55			56			342			1,769
Custodian		8,469			1,011			1,741			6,991			187,083
Printing		3,398			836			924			2,767			11,793
Professional fees		3,277			712			338			2,742			10,731
Trustee		1,541			192			203			1,175			5,260
Other		6,134			833			3,729			4,908			20,989
Total expenses before fee reductions		626,912			167,907			131,743			509,362			2,673,592
Fees reduced by Investment Adviser		—			—			—			(4,476	)		—
Total Expenses		626,912			167,907			131,743			504,886			2,673,592
Net Investment Income (Loss)		5,103,577			1,077,084			602,838			158,253			9,312,232
Net Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investments and foreign currency transactions		(1,716,057	)		(527,678	)		(133,789	)		(145,266	)		10,348,234
Net realized gains (losses) from futures		(44,872	)		—			(4,155	)		—			—
Payment by affiliate for the violation of certain investment policies and limitations		—			—			—			64,658			—
Change in unrealized appreciation/depreciation from investments,futures and foreign currencies		(12,280,378	)		(4,243,608	)		(1,515,259	)		(42,269,939	)		(242,760,619	)
Net realized/unrealized gains/losses from investment, future and foreign currency transactions		(14,041,307	)		(4,771,286	)		(1,653,203	)		(42,350,547	)		(232,412,385	)
Change In Net Assets Resulting From Operations	$	(8,937,730	)	$	(3,694,202	)	$	(1,050,365	)	$	(42,192,294	)	$	(223,100,153	)

63 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Operations—For the year ended October 31, 2008 (continued)

	Opportunity Portfolio			Value Portfolio
Investment Income:
Dividends	$	774,001		$	1,505,621
Total Investment Income		774,001			1,505,621
Expenses:
Investment Management		1,494,232			361,899
Administration		39,939			14,767
Accounting		54,168			53,235
Compliance Service		660			279
Custodian		14,652			3,847
Printing		6,180			2,131
Professional fees		5,212			2,028
Trustee		2,470			1,007
Other		10,784			4,032
Total Expenses		1,628,297			443,225
Net Investment Income (Loss)		(854,296	)		1,062,396
Net Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investments transactions		2,354,698			(7,776,127	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		(73,360,727	)		(25,258,253	)
Net realized/unrealized gains/losses from investment transactions		(71,006,029	)		(33,034,380	)
Change In Net Assets Resulting From Operations	$	(71,860,325	)	$	(31,971,984	)

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 64

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets

	Core Plus Fixed Income Portfolio						High Yield Fixed IncomePortfolio
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	5,103,577		$	5,909,376		$	1,077,084		$	931,443
Net realized gains (losses) from investment transactions		(1,760,929	)		2,910,717			(527,678	)		119,132
Change in unrealized appreciation/depreciation from investments		(12,280,378	)		(1,031,793	)		(4,243,608	)		(279,652	)
Change in net assets resulting from operations		(8,937,730	)		7,788,300			(3,694,202	)		770,923
Proceeds from contributions		13,894,668			24,166,324			3,041,484			5,258,548
Value of withdrawals		(43,040,969	)		(23,334,647	)		(3,972,343	)		(4,260,973	)
Change in net assets resulting from transactions in investors’ beneficial interest		(29,146,301	)		831,677			(930,859	)		997,575
Change in net assets		(38,084,031	)		8,619,977			(4,625,061	)		1,768,498
Net Assets:
Beginning of period		119,811,908			111,191,931			14,487,263			12,718,765
End of period	$	81,727,877		$	119,811,908		$	9,862,202		$	14,487,263

65 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)

	Intermediate Duration Fixed Income Portfolio
	For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	602,838		$	882,974
Net realized gains (losses) from investment transactions		(137,944	)		848,391
Change in unrealized appreciation/depreciation from investments		(1,515,259	)		(182,994	)
Change in net assets resulting from operations		(1,050,365	)		1,548,371
Proceeds from contributions		3,554,894			2,605,895
Value of withdrawals		(4,032,112	)		(8,612,265	)
Change in net assets resulting from transactions in investors’ beneficial interest		(477,218	)		(6,006,370	)
Change in net assets		(1,527,583	)		(4,457,999	)
Net Assets:
Beginning of period		15,058,569			19,516,568
End of period	$	13,530,986		$	15,058,569

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 66

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)

	Growth Portfolio						International Equity Portfolio
	For the year ended October 31, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	158,253		$	334,013		$	9,312,232		$	8,527,724
Net realized gains (losses) from investment transactions		(80,608	)		4,271,356			10,348,234			36,079,080
Change in unrealized appreciation/depreciation from investments and foreign currencies		(42,269,939	)		16,611,654			(242,760,619	)		42,586,569
Change in net assets resulting from operations		(42,192,294	)		21,217,023			(223,100,153	)		87,193,373
Proceeds from contributions		50,198,227			25,944,124			43,694,202			90,634,524
Value of withdrawals		(15,750,298	)		(17,303,034	)		(76,346,748	)		(56,520,981	)
Change in net assets resulting from transactions in investors’ beneficial interest		34,447,929			8,641,090			(32,652,546	)		34,113,543
Change in net assets		(7,744,365	)		29,858,113			(255,752,699	)		121,306,916
Net Assets:
Beginning of period		89,685,877			59,827,764			455,061,609			333,754,693
End of period	$	81,941,512		$	89,685,877		$	199,308,910		$	455,061,609

67 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, 2008			For the year ended October 31, 2007			For the year ended October 31, 2008			For the year ended October 31, 2007
Investment Activities:
Operations:
Net investment income (loss)	$	(854,296	)	$	(1,201,508	)	$	1,062,396		$	992,431
Net realized gains (losses) from investment transactions		2,354,698			58,390,322			(7,776,127	)		6,083,399
Change in unrealized appreciation/depreciation from investments		(73,360,727	)		1,890,389			(25,258,253	)		71,241
Change in net assets resulting from operations		(71,860,325	)		59,079,203			(31,971,984	)		7,147,071
Proceeds from contributions		20,402,348			77,393,032			12,224,588			23,927,675
Value of withdrawals		(44,840,850	)		(153,698,612	)		(13,247,672	)		(15,848,601	)
Change in net assets resulting from transactions in investors’ beneficial interest		(24,438,502	)		(76,305,580	)		(1,023,084	)		8,079,074
Change in net assets		(96,298,827	)		(17,226,377	)		(32,995,068	)		15,226,145
Net Assets:
Beginning of period		224,268,466			241,494,843			82,658,240			67,432,095
End of period	$	127,969,639		$	224,268,466		$	49,663,172		$	82,658,240

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 68

HSBC INVESTOR PORTFOLIOS

Financial Highlights

				Ratios/Supplementary Data
	Total Return(a)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(b)		Ratio of Net Investment Income (Loss) to Average Net Assets(b)		Ratio of Expenses to Average Net Assets(b)(c)		Portfolio Turnover Rate(a)
CORE PLUS FIXED INCOME PORTFOLIO
Year Ended October 31, 2004		5.56	%	$	169,459	0.52	%	4.31	%	0.52	%		34.88	%
Year Ended October 31, 2005		1.64	%(d)		122,530	0.40	%(d)	4.25	%(d)	0.53	%		176.60	%
Year Ended October 31, 2006		5.55	%		111,192	0.63	%	4.96	%	0.63	%		273.91	%
Year Ended October 31, 2007		6.94	%		119,812	0.59	%	4.99	%	0.59	%		252.56	%
Year Ended October 31, 2008		(8.78	)%		81,728	0.59	%	4.80	%	0.59	%		119.38	%
HIGH YIELD FIXED INCOME PORTFOLIO
Period Ended October 31, 2006(f)		7.41	%	$	12,719	1.86	%	6.33	%	1.86	%		13.61	%
Year Ended October 31, 2007		6.41	%		14,487	1.37	%	7.12	%	1.37	%		30.77	%
Year Ended October 31, 2008		(26.32	)%		9,862	1.26	%	8.06	%	1.26	%		24.10	%
INTERMEDIATE DURATION FIXED INCOME PORTFOLIO
Year Ended October 31, 2004		4.48	%	$	63,697	0.57	%	3.54	%	0.57	%		50.06	%
Year Ended October 31, 2005		0.76	%(d)		32,810	0.49	%(d)	3.85	%(d)	0.58	%		107.26	%
Year Ended October 31, 2006		5.29	%		19,517	0.78	%	4.58	%	0.78	%		236.51	%
Year Ended October 31, 2007		8.38	%		15,059	0.84	%	4.68	%	0.84	%		219.76	%
Year Ended October 31, 2008		(7.08	)%		13,531	0.91	%	4.15	%	0.91	%		124.23	%
GROWTH PORTFOLIO
Period Ended October 31, 2004(f)		(0.86	)%	$	49,680	0.72	%	0.06	%	0.72	%		53.08	%
Year Ended October 31, 2005		13.59	%(d)		49,415	0.63	%(d)	0.77	%(d)	0.68	%		79.54	%
Year Ended October 31, 2006		7.53	%		59,828	0.69	%	0.38	%	0.69	%		75.06	%
Year Ended October 31, 2007		31.11	%		89,686	0.62	%	0.45	%	0.62	%		57.04	%
Year Ended October 31, 2008		(37.75	)%(e)		81,942	0.62	%	0.19	%	0.62	%		157.87	%
INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2004		20.29	%	$	220,025	0.94	%	1.53	%	0.94	%		106.11	%
Year Ended October 31, 2005		19.54	%		230,230	0.84	%	1.92	%	0.84	%		31.32	%
Year Ended October 31, 2006		32.79	%		333,755	0.86	%	2.03	%	0.86	%		33.39	%
Year Ended October 31, 2007		25.17	%		455,062	0.79	%	2.16	%	0.79	%		26.08	%
Year Ended October 31, 2008		(51.95	)%		199,309	0.76	%	2.65	%	0.76	%		28.98	%
OPPORTUNITY PORTFOLIO
Year Ended October 31, 2004		5.93	%	$	359,333	0.88	%	(0.52	)%	0.88	%		81.75	%
Year Ended October 31, 2005		14.35	%(d)		218,778	0.85	%(d)	(0.45	)%(d)	0.90	%		63.95	%
Year Ended October 31, 2006		19.54	%		241,495	0.91	%	(0.40	)%	0.91	%		60.83	%
Year Ended October 31, 2007		30.54	%		224,268	0.91	%	(0.55	)%	0.91	%		69.41	%
Year Ended October 31, 2008		(35.30	)%		127,970	0.87	%	(0.46	)%	0.87	%		80.42	%
VALUE PORTFOLIO
Period Ended October 31, 2004(f)		6.12	%	$	61,414	0.71	%	1.28	%	0.71	%		10.33	%
Year Ended October 31, 2005		15.23	%(d)		54,150	0.64	%(d)	1.15	%(d)	0.69	%		16.45	%
Year Ended October 31, 2006		22.21	%		67,432	0.71	%	1.23	%	0.71	%		20.63	%
Year Ended October 31, 2007		10.28	%		82,658	0.66	%	1.29	%	0.66	%		18.67	%
Year Ended October 31, 2008		(39.91	)%		49,663	0.64	%	1.54	%	0.64	%		24.61	%

(a)	Not annualized for periods less than one year.
(b)	Annualized for periods less than one year.
(c)	During the period, certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(d)	During the year ended October 31, 2005, HSBC reimbursed certain amounts to the Portfolios related to violations of certain investment policies and limitations. The corresponding impact to the net expense ratio, net income ratio and total return were 0.12%, 0.09%, 0.05%, 0.04% and 0.05% for the Core Plus Fixed Income Portfolio, Intermediate Duration Fixed Income Portfolio, Growth Portfolio, Opportunity Portfolio and Value Portfolio, respectively.
(e)	During the year ended October 31, 2008, Winslow Capital Management, Inc. reimbursed $64,658 to the Portfolio related to violations of certain investment policies and limitations. The corresponding impact to the total return was 0.08%.
(f)	High Yield Fixed Income Portfolio commenced operations on November 18, 2005.
	Growth Portfolio commenced operations on May 7, 2004.
	Value Portfolio commenced operations on May 7, 2004.

69 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008

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

Portfolio	Short Name
HSBC Investor Core Plus Fixed Income Portfolio	Core Plus Fixed Income Portfolio
HSBC Investor High Yield Fixed Income Portfolio	High Yield Fixed Income Portfolio
HSBC Investor Intermediate Duration Fixed Income Portfolio	Intermediate Duration Fixed Income Portfolio
HSBC Investor Growth Portfolio	Growth Portfolio
HSBC Investor International Equity Portfolio	International Equity Portfolio
HSBC Investor Opportunity Portfolio	Opportunity Portfolio
HSBC Investor Value Portfolio	Value Portfolio

	The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all of their investable assets in the Portfolios. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios.
	The Portfolios are diversified series of the Portfolio Trust and are part of the HSBC Investor Family of Funds. Financial statements for all other funds of the HSBC Investor Family of Funds are published separately.
	Under the Portfolio Trust’s organizational documents, the Portfolios’ Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Portfolios. In addition, in the normal course of business, the Portfolios may enter into contracts with their service providers, which also provide for indemnifications by the Portfolios. The Portfolios’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the Portfolios. However, based on experience, the Portfolios expect that risk of loss to be remote.
2.	Significant Accounting Policies:
	The following is a summary of the significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.
Securities Valuation:
	Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Portfolios’ Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of matrix techniques which take into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities.
	The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, at the closing bid prices on such exchanges, or at the quoted bid price in the over-the-counter market. Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event or otherwise, are valued by or at the direction of the Portfolios’ Board of Trustees. Examples of potentially significant events that could affect the value of an individual security include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio include governmental actions, natu-

HSBC INVESTOR PORTFOLIOS 70

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

	ral disasters, and armed conflicts. In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Portfolios’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the International Equity Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges.
Investment Transactions and Related Income:
	Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
Foreign Currency Translation:
	The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.
Forward Foreign Currency Exchange Contracts:
	The Portfolios may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Portfolios could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.
Futures Contracts:
	Each Portfolio may invest in futures contracts for the purpose of hedging their existing portfolio securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a futures contract, the Portfolio is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Portfolio each day, depending on the daily fluctuations in the fair value of the underlying security. The Portfolio recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Portfolio may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets. The Core Plus Fixed Income Portfolio and the Intermediate Duration Fixed Income Portfolio had the following open futures contracts at October 31, 2008:

71 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

	Position	Contracts	Unrealized Appreciation (Depreciation)($)
Core Plus Fixed Income Portfolio
US Treasury Two Year Note Futures Contract expiring December 31, 2008 (Notional Value At $5,155,870)	Long	24	63,375
US Treasury Ten Year Note Futures Contract expiring December 31, 2008 (Notional Value At $7,463,156)	Short	66	165,516
Intermediate Duration Fixed Income Portfolio
US Treasury Two Year Note Futures Contract expiring December 31, 2008 (Notional Value At $1,288,969)	Long	6	15,844
US Treasury Ten Year Note Futures Contract expiring December 31, 2008 (Notional Value At $1,356,938)	Short	12	30,094

Mortgage Dollar Roll Transactions:
	The Core Plus Fixed Income Portfolio, the High Yield Fixed Income Portfolio and the Intermediate Duration Fixed Income Portfolio may engage in dollar roll transactions with respect to mortgage securities issued by the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. In a dollar roll transaction, the Portfolio sells a mortgage-backed security and simultaneously agrees to repurchase a similar security on a specified future date at an agreed upon price. During the roll period, the Portfolio will not be entitled to receive any interest or principal paid on the securities sold. The Portfolio is compensated for the lost interest on the securities sold by the difference between the sales price and the lower price for the future repurchase as well as by the interest earned on the reinvestment of the sales proceeds. The Portfolio may also be compensated by receipt of a commitment fee.
Restricted and Illiquid Securities:
	A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the investment adviser based on procedures established by the Board of Trustees. Therefore, not all restricted securities are considered illiquid. At October 31, 2008 the HSBC Core Plus Fixed Income Portfolio held restricted securities that were illiquid, representing 0.03% of net assets, as follows:

Security Name	Acquisition Date	Acquisition Cost($)	Principal Amount($)	Value($)
DLJ Mortgage Acceptance Corp. IO, Series 1997-CFI, Class S, 1.19%, 5/15/30	5/16/1997	1,344	17,984	1
FHA Weyerhauser, 7.43%, 1/1/24	3/28/2002	24,933	26,158	26,158
GS Mortgage Securities Corp. IO, Series 1997-GL, Class X2, 0.29 7/13/30	8/14/1997	1,349	35,694	414

Repurchase Agreements:

The Portfolios may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Portfolio plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the collateral held pursuant to the agreement, with a fair value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Portfolios’ Custodian or another qualified Custodian or in the Federal Reserve/Treasury book-entry system. In the event of counter-party default, the Portfolio has the right to use the collateral to offset losses incurred. There is a potential for loss to the Portfolio in the event the Portfolio is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Portfolio seeks to assert its rights.

HSBC INVESTOR PORTFOLIOS 72

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

Expense Allocations:
	Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis.
Federal Income Taxes:
	Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies.
	In addition, effective April 30, 2008, the Trust adopted Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the affirmative evaluation of tax positions taken or expected to be taken in the course of preparing the Portfolio Trust’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. Implementation of FIN 48 included a review of tax positions taken in tax years that remain subject to examination by tax authorities in all major tax jurisdictions, including federal (i.e., the last 4 tax year ends and the interim tax period since then, as applicable). The adoption of FIN 48 did not impact the Portfolios’ net assets or results of operations.
New Accounting Pronouncements:
	In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. Effective November 1, 2008 the Trust adopted SFAS No. 157. The adoption of this standard did not have an impact to the net assets or results of operations of the Fund, however, additional disclosures will be required about the inputs used to develop fair value measurements and the effect of certain measurements on the changes in net assets in fiscal reporting periods subsequent to the adoption date.
	In March 2008, the FASB issued the SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”). SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Portfolio’s financial position, performance and cash flows. Management is currently evaluating the impact, the adoption of SFAS 161 will have on the Funds’ financial statements and related disclosures.

73 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

3.	Related Party Transactions:
Investment Management:
	HSBC Global Asset Management (USA) Inc. (“HSBC” or the “Investment Adviser”), a wholly owned subsidiary of HSBC Bank USA, N.A., a national bank organized under the laws of the United States, acts as the Investment Adviser to the Portfolios pursuant to an investment management contract with the Portfolio Trust. As Investment Adviser, HSBC manages the investments of the Portfolios and continuously reviews, supervises, and administers the Portfolios’ investments, except that Winslow Capital Management, Inc., AllianceBernstein Investment Research and Management, Westfield Capital Management, LLC and NWQ Investment Management Co., LLC serve as Sub-Investment Advisers for the Growth Portfolio, International Equity Portfolio, Opportunity Portfolio, and the Value Portfolio, respectively, and are paid for their services directly by the respective Portfolios.
	For its services, the Investment Adviser receives a fee, accrued daily and paid monthly, at an annual rate of 0.60% of the High Yield Fixed Income Portfolio’s average daily net assets and 0.40% of the Intermediate Duration Fixed Income Portfolio’s average daily net assets. Halbis Capital Management, a wholly owned subsidiary of Halbis Capital Management (UK) Limited an affiliate of the Investment Adviser, serves as the Sub-Investment Advisor and is paid by the Investment Adviser.
	For its services as Investment Adviser, HSBC receives, from the Core Plus Fixed Income Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $50 million	0.575%
In excess of $50 million but not exceeding $95 million	0.450%
In excess of $95 million but not exceeding $150 million	0.200%
In excess of $150 million but not exceeding $250 million	0.400%
In excess of $250 million	0.350%

          Effective May 12, 2008, Winslow Capital Management, Inc. (“Winslow”) serves as the Sub-Adviser to the Growth Portfolio. For their services, the Investment Adviser and Winslow Capital Management, Inc. receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Sub-Advised HSBC Investor Family of Funds Average Daily Net Assets of	Fee Rate
Up to $250 million	0.400%
In excess of $250 million but not exceeding $500 million	0.350%
In excess of $500 million but not exceeding $750 million	0.300%
In excess of $750 million but not exceeding $1 billion	0.250%
In excess of $1 billion	0.200%

          Prior to May 12, 2008, Waddell and Reed Investment Management Company(“Waddell & Reed”) served as the Sub-Adviser to the Growth Portfolio. For their services, the Investment Adviser and Waddell & Reed Investment Management Company receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $50 million	0.500%
In excess of $50 million but not exceeding $100 million	0.425%
In excess of $100 million but not exceeding $200 million	0.375%
In excess of $200 million	0.325%

          For their services, the Investment Adviser and AllianceBernstein Investment Research and Management receive in aggregate, from the International Equity Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

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

HSBC INVESTOR PORTFOLIOS 74

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

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

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

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

	All contractual and any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waiver/reimbursements may be stopped at any time.
Administration:
	HSBC serves the Portfolios as Administrator. Under the terms of the Administration Agreement, HSBC receives from the Portfolios a fee, accrued daily and paid monthly, at an annual rate of:

Based on Average Daily Net Assets of	Fee Rate
Up to $12 billion	0.0525%
In excess of $12 billion	0.0350%

	The fee rates and breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds, however, the assets of the Portfolios and Feeder Funds that invest in the Portfolios are not double-counted. The total administration fee paid to HSBC is allocated to each series in the HSBC Investor Family of Funds based upon its proportionate share of the aggregate net assets of the Family of Funds. For assets invested in the Portfolios by Feeder Funds, the Portfolios pay half of the administration fee and the Feeder Funds pay half of the administration fee, for a combination of the total fee rate set forth above.
	Pursuant to a Sub-Administration Agreement with HSBC, Citi Fund Services Ohio, Inc. (“Citi Ohio”), a wholly-owned subsidiary of The Citigroup, Inc., serves as the Portfolio Trust’s Sub-Administrator subject to the general supervision of the Portfolio Trust’s Board of Trustees and HSBC. For these services, Citi Ohio is entitled to a fee, payable by HSBC, at an annual rate equivalent to the fee rates set forth above, minus 0.02% (2 basis points) which is retained by HSBC.
	Under a Compliance Services Agreement between the Portfolios and Citi Ohio (the “CCO Agreement”), Citi Ohio makes an employee available to serve as the Portfolios’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, Citi Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Portfolios’ compliance program, including support services to the CCO. For the services provided under the CCO Agreement, the HSBC Investor Family of Funds paid Citi Ohio $250,800 for the year ended October 31, 2008, plus reimbursement of certain expenses. Expenses incurred by each Portfolio are reflected on the Statements of Operations as “Compliance Service.” Citi Ohio pays the salary and other compensation earned by any such individuals as employees of Citi Ohio.
Fund Accounting and Trustee:
	Citi Ohio provides fund accounting services for the Portfolios. For its services to the Portfolios, Citi Ohio receives an annual fee per Portfolio, including reimbursement of certain expenses, that is accrued daily and paid monthly.
	Effective April 1, 2008 each of the non-interested Trustees are compensated with a $60,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also receives a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee receives compensation for attending special meetings and/or functioning as a Committee Chairperson or Lead Trustee. In addition, the non-interested Trustees are reimbursed for certain expenses incurred in connection with their Board membership.
	Prior to April 1, 2008 each of the non-interested Trustees were compensated with a $35,000 annual Board retainer, as well as a $3,000 annual retainer for each Committee of the Board. Each non-interested Trustee also received a $5,000 and $3,000 meeting fee for each regular in-person Board meeting and Committee meeting, respectively. Furthermore, each non-interested Trustee received compensation for attending special meetings and/or functioning as a Committee

75 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

	Chairperson or Lead Trustee. In addition, the non-interested Trustees were reimbursed for certain expenses incurred in connection with their Board membership.
4.	Investment Transactions:
	Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended October 31, 2008 were as follows:

Portfolio Name	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)		Purchases of U.S. Government		Sales of U.S. Government
Core Plus Fixed Income Portfolio	$	69,036,342	$	80,690,896	$	49,065,754	$	55,677,401
High Yield Fixed Income Portfolio		3,234,787		3,081,017		—		—
Intermediate Duration Fixed Income Portfolio		8,739,811		10,328,525		7,299,067		6,054,432
Growth Portfolio		161,944,892		127,516,379		—		—
International Equity Portfolio		100,701,900		116,158,373		—		—
Opportunity Portfolio		147,097,284		172,313,505		—		—
Value Portfolio		18,574,861		16,117,722		—		—

5.	Federal Income Tax Information:
	At October 31, 2008, the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows:

Fund	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)*
Core Plus Fixed Income Portfolio	$	118,920,436	$	404,331	$	(13,181,862	)	$	(12,777,531	)
High Yield Fixed Income Portfolio		14,005,674		—		(4,456,761	)		(4,456,761	)
Intermediate Duration Fixed Income Portfolio		20,454,405		65,632		(1,712,397	)		(1,646,765	)
Growth Portfolio		104,366,399		1,301,129		(21,361,373	)		(20,060,244	)
International Portfolio		319,238,690		4,981,933		(127,033,651	)		(122,051,718	)
Opportunity Portfolio		160,227,856		5,851,082		(37,493,204	)		(31,642,122	)
Value Portfolio		62,715,935		4,905,550		(17,374,375	)		(12,468,825	)

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

6.	Legal and Regulatory Matters:
	On September 26, 2006 BISYS Fund Services, Inc. (“BISYS”), an affiliate of BISYS Fund Services Ohio, Inc. which provides various services to the Portfolios as described in footnote 3, reached a settlement with the Securities and Exchange Commission (“the SEC”) regarding the SEC’s investigation related to BISYS’ past payment of certain marketing and other expenses with respect to certain of its mutual fund clients. Although BISYS has reached a settlement with the SEC, the Portfolios’ management is not aware that any determination has been made as to how the BISYS settlement monies will be distributed. While the Portfolios’ management is currently unable to determine the impact, if any, of such matters on the Portfolios or the Portfolios’ financial statements, management does not anticipate a material, adverse impact to the Portfolios or the Portfolios’ financial statements.
7.	Subsequent Event:
	HSBC Investor Core Plus Fixed Income Portfolio HSBC Investor High Yield Fixed Income Portfolio HSBC Investor Intermediate Duration Fixed Income Portfolio (the “Fixed Income Portfolios”)
	Each of the Fixed Income Portfolios is currently sub-advised by Halbis Capital Management (USA) Inc. (“Halbis”), an affiliate of the Portfolios’ investment adviser, HSBC Global Asset Management (USA) Inc. (the “Adviser”).

HSBC INVESTOR PORTFOLIOS 76

HSBC INVESTOR PORTFOLIOS

Notes to Financial Statements—as of October 31, 2008 (continued)

	Due to changes in its U.S. business model, Halbis has determined to resign as sub-adviser to the Fixed Income Portfolios effective January 31, 2009. The Adviser is actively exploring options for the Fixed Income Portfolios. Options under consideration are reorganizing the Fixed Income Portfolios into an unaffiliated fund family or liquidation of the Fixed Income Portfolios.
	The Adviser anticipates presenting its recommendations to the Board of Trustees of the Fixed Income Portfolios in the near future. Once the Board of Trustees has made a determination as to the course of action, the Adviser will provide notice to the shareholders.
77	HSBC INVESTOR PORTFOLIOS

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 Core Plus Fixed Income Portfolio, HSBC Investor High Yield Fixed Income Portfolio, HSBC Investor Intermediate Duration Fixed Income Portfolio, HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and HSBC Investor Value Portfolio (the Funds), including the schedules of portfolio investments, as of October 31, 2008, 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 period 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 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. Our procedures included confirmation of securities owned as of October 31, 2008, by correspondence with custodians and brokers; or 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, 2008, 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 period in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Columbus, Ohio
December 19, 2008

HSBC INVESTOR PORTFOLIOS 78

HSBC INVESTOR PORTFOLIOS

Table of Shareholder Expenses (Unaudited)—as of October 31, 2008

          As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Fund expenses.

          These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds.

          These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from May 1, 2008 through October 31, 2008.

Actual Example

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

	Beginning Account Value 5/1/08			Ending Account Value 10/31/08			Expenses Paid During Period* 5/1/08 - 10/31/08			Annualized Expense Ratio During Period 5/1/08 - 10/31/08
Core Plus Fixed Income Portfolio		$	1,000.00		$	920.30		$	2.90	0.60	%
High Yield Fixed Income Portfolio			1,000.00			750.40			5.63	1.28	%
Intermediate Duration Fixed Income Portfolio			1,000.00			943.70			4.49	0.92	%
Growth Portfolio			1,000.00			679.10			2.70	0.64	%
International Equity Portfolio			1,000.00			538.60			2.86	0.74	%
Opportunity Portfolio			1,000.00			664.50			3.64	0.87	%
Value Portfolio			1,000.00			670.60			2.73	0.65	%

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

79 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR FAMILY OF FUNDS

Table of Shareholder Expenses (Unaudited)—as of October 31, 2008 (continued)

Hypothetical Example for Comparison Purposes

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

          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 5/1/08			Ending Account Value 10/31/08			Expenses Paid During Period* 5/1/08 - 10/31/08			Annualized Expense Ratio During Period 5/1/08 - 10/31/08
Core Plus Fixed Income Portfolio		$	1,000.00		$	1,022.12		$	3.05	0.60	%
High Yield Fixed Income Portfolio			1,000.00			1,018.70			6.50	1.28	%
Intermediate Duration Fixed Income Portfolio			1,000.00			1,020.51			4.67	0.92	%
Growth Portfolio			1,000.00			1,021.92			3.25	0.64	%
International Equity Portfolio			1,000.00			1,021.42			3.76	0.74	%
Opportunity Portfolio			1,000.00			1,020.76			4.42	0.87	%
Value Portfolio			1,000.00			1,021.87			3.30	0.65	%

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

HSBC INVESTOR PORTFOLIOS 80

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 Funds. The Funds’ Statement of Additional Information includes additional information about the Trustees and is available by calling (888) 525-5757.

Name, Address, and Age	Position(s) Held with Funds	Term of Office and Length of Time Served with the Funds	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee*	Other Directorships Held by Trustee
NON-INTERESTED TRUSTEE
Marcia L. Beck P.O. Box 182845 Columbus, OH 43218 Date of Birth: October 29, 1955	Trustee	Indefinite; June 2008 to present	Private Investor; Executive Vice President and Chief Operating Officer of Prudential Investments (1997-1999)	40	None
Susan S. Huang P.O. Box 182845 Columbus, OH 43218 Date of Birth: May 14, 1954	Trustee	Indefinite; June 2008 to present	Investment Consultant, self employed (2001 to present); Senior Vice President, Schroeder Investment Management (2001 - 2004)	40	United Church Foundation; Huntington’s Disease Society; Second Congregational Church (Greenwich) Endowment, Inc.
Alan S. Parsow P.O. Box 182845 Columbus, OH 43218 Date of Birth: January 16, 1950	Trustee	Indefinite; 1987 to present	General Partner of Elkhorn Partners, L.P. (a private investment partnership) (since 1989)	40	None
Thomas F. Robards P.O. Box 182845 Columbus, OH 43218 Date of Birth: June 10, 1946	Trustee	Indefinite; 2005 to present	Partner, Robards & Co. LLC (2005-present); Chief Financial Officer, American Museum of Natural History (2003 to 2004)	40	Ellington Financial LLC and Overseas Shipholding Group
Larry M. Robbins P.O. Box 182845 Columbus, OH 43218 Date of Birth: December 12, 1938	Trustee	Indefinite; 1987 to present	Private Investor; Director, Center for Teaching and Learning, University of Pennsylvania (1999-2006)	40	None
Michael Seely P.O. Box 182845 Columbus, OH 43218 Date of Birth: June 7, 1945	Trustee	Indefinite; 1987 to present	Private Investor; Global Multi Manager Partners (1999-2003); President of Investor Access Corporation (1981-2003)	40	None
INTERESTED TRUSTEE
Stephen J. Baker** P.O. Box 182845 Columbus, OH 43218 Date of Birth: June 23, 1956	Trustee	Indefinite; 2004 to present	Chief Executive Officer, HSBC Global Asset Management (USA) Inc. and Executive Vice President, HSBC (USA), N.A. (2003 to present); Chief Executive Officer, HSBC Asset Management (Canada) Limited (1998 to 2003)	40	None

*	Includes both the fund and the underlying Portfolio for Funds with a master/feeder structure.
**	Mr. Baker is an “interested person” of the Trust, as defined by the 1940 Act, because of his employment with the Adviser.

81 HSBC INVESTOR PORTFOLIOS

HSBC INVESTOR FAMILY OF FUNDS

Board of Trustees and Officers (unaudited)(continued)

The names of the officers, their addresses, ages, position(s) held with the Trust, and principal occupation(s) during the past five years are described in the table below.

Name, Address, and Age/Date of Birth	Position(s) Held with Fund	Term of Office and Length of Time Served With the Funds	Principal Occupation(s) During Past 5 Years
Richard A. Fabietti 452 Fifth Avenue New York, NY 10018 Date of Birth: October 8, 1958	President	Indefinite; 2004 to present	Senior Vice President, Head of Product Management, HSBC Global Asset Management (USA) Inc. (1998 to present)
Elba L. Vasquez 452 Fifth Avenue New York, NY 10018 Date of Birth: December 14, 1961	Vice President	Indefinite; 2006 to present	Vice President of Product Administration, HSBC Global Asset Management (USA) Inc. (2005 to present); Vice President of Client Services, Citi (1996 to2005)
Troy Sheets* 3435 Stelzer Road Columbus, OH 43219-3035 Date of Birth: May 29, 1971	Treasurer	Indefinite; 2004 to present	Senior Vice President, Citi (2002 to present)
Jennifer A English* 100 Summer Street Suite 1500 Boston, MA 02110 Date of Birth: March 5, 1972	Secretary	Indefinite; September 2008 to present	Vice President, Regulatory Administration, Citi (2005 to present); Assistant Vice President and Assistant Counsel, PFPC, Inc. (2002-2005)
F. Martin Fox 100 Summer Street Suite 1500 Boston, MA 02110 Date of Birth: May 5, 1963	Assistant Secretary	Indefinite; September 2008 to present	Assistant Vice President, Regulatory Administration, Citi (May 2008 to present); Contract Attorney, Update Legal LLC (2002 to 2008)
Frederick J. Schmidt* 585 Stewart Avenue Garden City, NY 11530 Date of Birth: July 10, 1959	Chief Compliance Officer	Term expires 2009; 2004 to present	Senior Vice President and Chief Compliance Officer, CCO Services, Citi (2004 to present); President, FJS Associates (2002 to 2004)

* Mr. Sheets, 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 82

Other Information:

          A description of the policies and procedures that the Funds use to determine how to vote proxies relating to the portfolio securities is available without charge, upon request, by calling 1-800-525-5757 for HSBC Bank USA and HSBC Brokerage (USA) Inc. clients and 1-800-782-8183 for all other shareholders or on the Fund’s website at www.investorfunds.us.hsbc.com and the Securities and Exchange Commission’s (“Commission”) website at http://www.sec.gov. A copy of the Fund’s voting record for the most recent 12 month period ending June 30 is available at the Commission’s website at http://www.sec.gov.

          Schedules of Portfolio Investments for fiscal quarters ending January 31 and July 31 will be available no later than 60 days after each period end, without charge, on the Fund’s website at www.investorfunds.us.hsbc.com and on the Commission’s web-site at http://www.sec.gov.

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

83 HSBC INVESTOR PORTFOLIOS

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HSBC Investor LifeLine Funds:	For All Other Shareholders
	HSBC Investor Funds
INVESTMENT ADVISER AND ADMINISTRATOR	P.O. Box 182845
HSBC Global Asset Management (USA) Inc.	Columbus, OH 43218-2845
452 Fifth Avenue	1-800-782-8183
New York, NY 10018
	TRANSFER AGENT AND SPONSOR
SUB-ADVISERS	Citi Fund Services
HSBC Investor Growth Portfolio	3435 Stelzer Road
Winslow Capital Management, Inc.	Columbus, OH 43219
4720 IDS Tower
80th South Eighth Street	DISTRIBUTOR
Minneapolis, MN 55402	Foreside Distribution Services. L.P.
	690 Taylor Road, Suite 150
HSBC Investor International Equity Portfolio	Gahanna, OH 43230-3202
AllianceBernstein Investment Research and Management
1345 Avenue of the Americas, 39th Floor	CUSTODIAN
New York, NY 10105	HSBC Investor Core Plus Fixed Income Portfolio
	HSBC Investor High Yield Fixed Income Portfolio
HSBC Investor Opportunity Portfolio Westfield Capital Management, LLC	HSBC Investor Intermediate Duration Fixed Income Portfolio
One Financial Center	HSBC Investor Growth Portfolio
Boston, MA 02111	HSBC Investor International Equity Portfolio
	HSBC Investor Opportunity Portfolio
HSBC Investor Value Portfolio	HSBC Investor Value Portfolio
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
HSBC Investor Core Plus Fixed Income Portfolio	INDEPENDENT REGISTERED PUBLIC ACCOUNTING
HSBC Investor High Yield Fixed Income Portfolio	FIRM
HSBC Investor Intermediate Duration Fixed Income Portfolio	KPMG LLP 191 West Nationwide Blvd., Suite 500
Halbis Capital Management (USA) Inc.	Columbus, OH 43215
452 Fifth Avenue, 18th Floor
New York, NY 10018	LEGAL COUNSEL
	Dechert LLP
SHAREHOLDER SERVICING AGENTS	1775 I Street, N.W.
For HSBC Bank USA, N.A. and	Washington, D.C. 20006
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HSB-SR-LL 12/08

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 Exhibit 12(a)(i).

(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,
2007        $305,380
2008        $303,300

(b) Audit-Related Fees,
2007        $14,000
2008        $10,200

2007 – Fees of $14,000 relate to the consent of N-1A filing and the consent of the N-14 filing for the Conservative Income Strategy Fund and the Conservative Growth Strategy Fund.

2008 – Fees of $10,200 relate to the consent of N-1A filing and the consent of the N-14 filing for the Growth and Income Fund and the Growth Fund.

(c) Tax Fees,
2007        $162,068
2008        $161,500

Tax fees for both 2007 and 2008 relate to the preparation of the Fund’s federal and state income, excise tax calculations and the review of capital gain and income distribution calculations.

(d) All Other Fees,
2007        $0
2008        $0

           (e)(1) Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust’s Audit Committee must preapprove all audit and non-audit services by the independent accountants relating to the operations or financial reporting of the Funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.

          (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.
2007        $176,068
2008        $171,700

          (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 theirevaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a -3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) 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 INVESTOR PORTFOLIOS

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

Date              December 23, 2008

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

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

Date              December 23, 2008

By (Signature and Title)*	/s/ Troy A. Sheets
	Troy A. Sheets
	Treasurer

Date              December 23, 2008

* Print the name and title of each signing officer under his or her signature.

EX-99.CODE ETH

   c56120_ex99code-eth.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EX-99.CERT

EX-99.CERT

CERTIFICATIONS

I, Richard A. Fabietti, certify that:

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

December 23, 2008	/s/ Richard A. Fabietti
Date	Richard A. Fabietti
	President

CERTIFICATIONS

I, Troy A. Sheets, certify that:

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

December 23, 2008	/s/ Troy A. Sheets
Date	Troy A. Sheets
	Treasurer

EX-99.906CERT

EX-99.906CERT

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. § 1350, and accompanies the report on Form N-CSR for the period ended October 31, 2008 of HSBC Investor Portfolios (the “Registrant”).

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

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

December 23, 2008
Date

  /s/ Richard A. Fabietti                         

Richard A. Fabietti

President

  /s/ Troy A. Sheets                              

Troy A. Sheets

Treasurer

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