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: April 30, 2010

Item 1. Reports to Stockholders.

HSBC Global Asset Management (USA) Inc.

April 30, 2010

HSBC World Selection Funds

Semi-Annual Report

Aggressive Strategy Fund

Balanced Strategy Fund

Moderate Strategy Fund

Conservative Strategy Fund

Table of Contents

HSBC World Selection Funds
Semi-Annual Report - April 30, 2010

Glossary of Terms	3
Chairman’s Message	4
President’s Message	6
Commentary From the Investment Manager	7
Portfolio Reviews	8
Portfolio Composition	13
Schedules of Portfolio Investments	15
Statements of Assets and Liabilities	20
Statements of Operations	21
Statements of Changes in Net Assets	22
Financial Highlights	26
Notes to Financial Statements	30
Investment Adviser Contract Approval	37
Table of Shareholder Expenses	40
Other Information	42
HSBC Investor Portfolios
Schedules of Portfolio Investments
HSBC Investor Growth Portfolio	43
HSBC Investor International Equity Portfolio	44
HSBC Investor Opportunity Portfolio	47
HSBC Investor Value Portfolio	48
Statements of Assets and Liabilities	50
Statements of Operations	51
Statements of Changes in Net Assets	52
Financial Highlights	54
Notes to Financial Statements	55
Investment Adviser Contract Approval	62
Table of Shareholder Expenses	65
Other Information	66

(This Page Intentionally Left Blank)

Glossary of Terms

Barclays Capital Intermediate U.S. Aggregate Bond Index is an unmanaged index generally representative of investment-grade issues with maturities between three- and ten-years.

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

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

Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped is an unmanaged market value-weighted index which covers the universe of fixed rate, non-investment grade debt.

Citigroup U.S. Domestic 3-Month U.S. Treasury Bill Index is an unmanaged index of three-month Treasury bills.

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 is an index that captures the performance of below-investments-grade debt issued by corporations domiciled in the United States or Canada.

Merrill Lynch U.S. High Yield Master II Index is an unmanaged index which measures the performance of the broad high yield market.

Group of 20 (G-20) Finance Ministers and Central Bank Governors was established in 1999 to bring together systemically important industrialized and developing economies to discuss key issues in the global economy.

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

Russell 1000^® Growth Index is an unmanaged index 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 measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Russell 2500™ Growth Index is an unmanaged index 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 500 Index (“S&P 500”) is an unmanaged index that is widely regarded as a gauge of the U.S. equities market, this index includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities.

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

HSBC INVESTOR FAMILY OF FUNDS 3

Chairman’s Message

June 3, 2010

To Our Shareholders:

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

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

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

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

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

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

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

4 HSBC INVESTOR FAMILY OF FUNDS

Chairman’s Message (continued)

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

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

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

Cordially,

Michael Seely
Chairman, HSBC Investor Funds

Finding the World’s Most Talented Investment Managers

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

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

HSBC Multimanager

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

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

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

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

*As of March 2010

HSBC INVESTOR FAMILY OF FUNDS 5

President’s Message

Dear Shareholder,

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

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

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

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

Sincerely,

Richard A. Fabietti
President

6 HSBC INVESTOR FAMILY OF FUNDS

Commentary From the Investment Manager

HSBC Global Asset Management (USA) Inc.

U.S. Economic Review

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

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

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

Market Review

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

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

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

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

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

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

HSBC INVESTOR FAMILY OF FUNDS 7

Portfolio Reviews

Aggressive Strategy Fund

Balanced Strategy Fund

Moderate Strategy Fund

Conservative Strategy Fund

Investment Concerns

Allocation Risk: The risks that the Adviser’s target asset and sector allocations and changes in target asset and sector allocations cause a Fund to underperform other similar funds or cause you to lose money, and that a Fund may not achieve its target asset and sector allocations.

Underlying Fund Selection Risk: The risk that a Fund may invest in Underlying Funds that underperform other similar funds or the markets more generally, due to poor investment decisions by the investment adviser(s) for the Underlying Funds or otherwise. Underlying funds also have their own expenses, which the Funds bear in addition to their own expenses.

Equity Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in equity securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in equity securities.

Fixed Income Securities Risk: A portion of the assets of a Fund is allocated to Underlying Funds investing primarily in fixed-income securities. Therefore, the value of the Fund may increase or decrease as a result of its indirect interest in fixed-income securities.

Foreign Securities/Emerging Markets Risk: Foreign securities, including those of emerging market issuers, are subject to additional risks including international trade, currency, political, and regulatory risks. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed foreign markets.

Market Commentary

The HSBC World Selection Funds, Class A Shares (without sales charge), generated the following returns during the six-month period between November 1, 2009 and April 30, 2010:

Aggressive Strategy Fund: 13.43%
Balanced Strategy Fund: 11.85%
Moderate Strategy Fund: 9.96%
Conservative Strategy Fund: 7.62%

The Funds’ benchmark indices posted the following performance during the same period:

S&P 500¹: 15.66%
MSCI EAFE¹: 2.68%
Barclays Capital U.S. Aggregate Bond¹: 2.54%
Citigroup U.S. Domestic 3-Month Treasury Bill¹: 0.04%

The structure of the Funds changed during the period under review. We broadened their asset mix significantly: At the beginning of the period the four Funds, formerly known as the Lifeline Funds, offered exposure to a limited set of asset classes, including large and small-cap U.S. stocks, international stocks, fixed-income and short-term investments. As of January 19, 2010, we broadened the categories of asset classes used in each Fund to include enhancements such as emerging markets equity and debt, commodities and private equity. Our goal was to augment diversification and thereby improve the potential return each Fund offers at a given level of volatility.

The Funds’ manager selections within specific asset classes were the primary drivers of their returns for the six months through April, 2010. The managers of the Funds’ core fixed-income positions generally outperformed their respective benchmarks during the period. This development especially benefited the relative returns of World Selection Funds with larger fixed-income allocations, including the Conservative Strategy and Moderate Strategy Funds.

Meanwhile, the Funds’ underlying U.S. large and small/mid cap equity portfolios generally lagged their benchmarks. This trend reduced relative performance during the period, particularly for the Balanced Strategy and Aggressive Strategy Funds, which have sizable allocations to U.S. equities.

The Funds ended the period with equity allocations somewhat lighter than their neutral weightings, and with overweight stakes in defensive sectors such as health care and telecommunications. Their fixed-income allocations emphasized investment-grade and high-yield corporate debt over government bonds.

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

8 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

Aggressive Strategy Fund

Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)4
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
World Selection Aggressive Strategy Fund Class A1	2/14/05	7.73	31.63	4.23	3.18		2.16	1.50
World Selection Aggressive Strategy Fund Class B2	2/9/05	8.88	33.41	4.51	3.45		2.91	2.25
World Selection Aggressive Strategy Fund Class C3	6/10/05	11.99	36.58	—	3.68		2.91	2.25
S&P 500 Index5	—	15.66	38.85	2.63	2.19	6	N/A	N/A
MSCI EAFE Index5	—	2.68	35.02	4.34	4.03	6	N/A	N/A
Barclays Capital U.S. Aggregate Bond Index5	—	2.54	8.30	5.38	5.16	6	N/A	N/A
Citigroup U.S. Domestic 3-Month Treasury Bill Index5	—	0.04	0.12	2.72	2.71	6	N/A	N/A
Aggressive Growth Blended Portfolio Index5, 7	—	16.21	41.28	4.68	3.90	6	N/A	N/A

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

The performance above reflects any fee waivers that have been in effect during the applicable periods, as well as any expense reimbursements that have periodically been made. Absent such waivers and reimbursements, returns would have been lower. Currently, contractual fee waivers are in effect from March 1, 2010 through March 1, 2011.

During the periods ended October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	Reflects the expense ratio as reported in the prospectus dated March 31, 2010.
5	For additional information, please refer to the Glossary of Terms.
6	Return for the period 1/31/05 to 4/30/10.
7	Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Aggressive Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Aggressive Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (34%) and the MSCI EAFE Index^ (23%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index.
^	For additional information, please refer to the Glossary of Terms.

HSBC INVESTOR FAMILY OF FUNDS 9

Portfolio Reviews

Balanced Strategy Fund

Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)4
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
World Selection Balanced Strategy Fund Class A1	2/8/05	6.30	28.08	3.97	3.53		1.60	1.60
World Selection Balanced Strategy Fund Class B2	2/1/05	7.47	29.79	4.28	3.98		2.35	2.35
World Selection Balanced Strategy Fund Class C3	4/27/05	10.44	32.81	4.30	4.27		2.35	2.35
S&P 500 Index5	—	15.66	38.85	2.63	2.19	6	N/A	N/A
MSCI EAFE Index5	—	2.68	35.02	4.34	4.03	6	N/A	N/A
Barclays Capital U.S. Aggregate Bond Index5	—	2.54	8.30	5.38	5.16	6	N/A	N/A
Citigroup U.S. Domestic 3-Month Treasury Bill Index5	—	0.04	0.12	2.72	2.71	6	N/A	N/A
Growth Blended Portfolio Index5, 7	—	13.18	35.25	4.76	4.17	6	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.

During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	Reflects the expense ratio as reported in the prospectus dated March 31, 2010.
5	For additional information, please refer to the Glossary of Terms.
6	Return for the period 1/31/05 to 4/30/10.
7	Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (1%); Citigroup U.S. High Yield Market Capped Index^ (2%); Barclays Capital U.S. Aggregate Bond Index^ (15%); Russell 1000® Growth Index^ (21%); Russell 1000® Value Index^ (21%); Russell 2500TM Growth Index^ (20%), and the MSCI EAFE Index^ (20%). These indices are unmanaged and do not reflect the fees and expenses associated with a mutual fund, and investors cannot directly invest in an index.
	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. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009.
^	For additional information, please refer to the Glossary of Terms.

10 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

Moderate Strategy Fund

Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)4
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
World Selection Moderate Strategy Fund Class A1	2/3/05	4.47	23.03	3.61	3.17		1.58	1.58
World Selection Moderate Strategy Fund Class B2	2/1/05	5.59	24.58	3.89	3.53		2.33	2.33
World Selection Moderate Strategy Fund Class C3	6/10/05	8.54	27.61	—	3.34		2.33	2.33
S&P 500 Index5	—	15.66	38.85	2.63	2.19	6	N/A	N/A
MSCI EAFE Index5	—	2.68	35.02	4.34	4.03	6	N/A	N/A
Barclays Capital U.S. Aggregate Bond Index5	—	2.54	8.30	5.38	5.16	6	N/A	N/A
Citigroup U.S. Domestic 3-Month Treasury Bill Index5	—	0.04	0.12	2.72	2.71	6	N/A	N/A
Moderate Growth Blended Portfolio Index5, 7	—	10.54	29.01	4.84	4.38	6	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.

During the periods ended October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	Reflects the expense ratio as reported in the prospectus dated March 31, 2010.
5	For additional information, please refer to Glossary of Terms.
6	Return for the period 1/31/05 to 4/30/10.
7	Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Moderate Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Moderate Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (6%); Barclays Capital U.S. Aggregate Bond Index^ (26%); Citigroup U.S. High Yield Market Capped Index^ (5%); Russell 1000® Growth Index^ (19%); Russell 1000® Value Index^ (18%); Russell 2500TM 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^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009.
^	For additional information, please refer to the Glossary of Terms.

HSBC INVESTOR FAMILY OF FUNDS 11

Portfolio Reviews

Conservative Strategy Fund

Fund Performance			Average Annual Total Return (%)				Expense Ratio (%)4
As of April 30, 2010	Inception Date	Six Months*	1 Year**	5 Year	Since Inception		Gross	Net
World Selection Conservative Strategy Fund Class A1	2/23/05	2.21	16.76	3.16	2.76		1.79	1.79
World Selection Conservative Strategy Fund Class B2	2/17/05	3.14	17.75	3.46	2.91		2.54	2.54
World Selection Conservative Strategy Fund Class C3	4/19/05	6.19	20.74	3.66	3.53		2.54	2.54
S&P 500 Index7	—	15.66	38.85	2.63	2.19	6	N/A	N/A
MSCI EAFE Index5	—	2.68	35.02	4.34	4.03	6	N/A	N/A
Barclays Capital U.S. Aggregate Bond Index5	—	2.54	8.30	5.38	5.16	6	N/A	N/A
Citigroup U.S. Domestic 3-Month Treasury Bill Index5	—	0.04	0.12	2.72	2.71	6	N/A	N/A
Conservative Growth Blended Portfolio Index7, 8	—	7.69	21.83	4.74	4.40	6	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.

During the periods October 31, 2007, October 31, 2008 and October 31, 2009, one or more Underlying Funds in which the Fund invests in, received monies related to certain nonrecurring litigation settlements. Without the receipt of these payments, the returns for the applicable periods would be lower.

*	Aggregate total return.
**	The recent growth rate in the stock market has helped to produce short-term returns that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
1	Reflects the maximum sales charge of 5.00%.
2	Reflects the applicable contingent deferred sales charge, maximum of 4.00%.
3	Reflects the applicable contingent deferred sales charge, maximum of 1.00%.
4	Reflects the expense ratio as reported in the prospectus dated March 31, 2010.
5	For additional information, please refer to the Glossary of Terms.
6	Return for the period 1/31/05 to 4/30/10.
7	Effective January 19, 2010 the Fund no longer compares its performance to that of the LifeLine Conservative Growth Blended Portfolio Index due to a change to the Fund’s investment strategy. The Fund’s performance is now compared to broader-based market indices. The LifeLine Conservative Growth Blended Portfolio Index consisted of a blend by a percentage of the following indices: Citigroup U.S. Domestic 3-Month Treasury Bill Index^ (21%); Citigroup U.S. High Yield Market Capped Index^ (8%); Barclays Capital U.S. Aggregate Bond Index^ (25%); Barclays Capital Intermediate U.S. Aggregate Bond Index^ (3%); Russell 1000® Growth Index^ (15%); Russell 1000® Value Index^ (14%); Russell 2500TM 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^. Due to the liquidation of the HSBC Investor High Yield Fixed Income Portfolio, the underlying high yield index was changed from the Citigroup U.S. High Yield Market Capped Index to Barclays Capital U.S. Corporate High-Yield Bond Index, 2% Capped^ on March 31, 2009.
^	For additional information, please refer to the Glossary of Terms.

12 HSBC INVESTOR FAMILY OF FUNDS

Portfolio Reviews

Portfolio Composition*

April 30, 2010

(Unaudited)

Aggressive Strategy Fund
Investment Allocation	Percentage of Investments at Value
Affiliated Investment Companies	6.6%
Affiliated Portfolios	58.6%
Unaffiliated Investment Companies	28.5%
Exchange Traded Funds	6.3%
Total	100.0%
Balanced Strategy Fund
Investment Allocation	Percentage of Investments at Value
Affiliated Investment Companies	5.3%
Affiliated Portfolios	41.0%
Unaffiliated Investment Companies	48.5%
Exchange Traded Funds	5.2%
Total	100.0%
Moderate Strategy Fund
Investment Allocation	Percentage of Investments at Value
Affiliated Investment Companies	4.2%
Affiliated Portfolios	29.1%
Unaffiliated Investment Companies	63.5%
Exchange Traded Funds	3.2%
Total	100.0%
Conservative Strategy Fund
Investment Allocation	Percentage of Investments at Value
Affiliated Investment Companies	3.7%
Affiliated Portfolios	19.8%
Unaffiliated Investment Companies	75.4%
Exchange Traded Funds	1.1%
Total	100.0%
HSBC Investor Growth Portfolio
Investment Allocation	Percentage of Investments at Value
Information Technology	40.5%
Industrials	13.0%
Consumer Discretionary	10.5%
Energy	9.0%
Health Care	9.0%
Financials	7.1%
Consumer Staples	4.6%
Materials	3.3%
Cash and Equivalents	3.0%
Total	100.0%
HSBC International Equity Portfolio
Investment Allocation	Percentage of Investments at Value
Europe	61.4%
Japan	23.4%
Australia & Far East	9.5%
Canada	4.2%
Cash	1.0%
Other	0.5%
Total	100.0%
HSBC Investor Opportunity Portfolio
Investment Allocation	Percentage of Investments at Value
Information Technology	22.3%
Health Care	19.5%
Consumer Discretionary	14.8%
Industrials	14.1%
Energy	11.7%
Financials	4.8%
Materials	4.5%
Consumer Staples	3.4%
Cash and Cash Equivalents	2.8%
Telecommunication Services	2.1%
Total	100.0%
HSBC Investor Value Portfolio
Investment Allocation	Percentage of Investments at Value
Financials	21.3%
Energy	17.0%
Health Care	13.0%
Industrials	10.3%
Information Technology	10.1%
Materials	8.4%
Consumer Staples	7.8%
Consumer Discretionary	4.8%
Cash and Cash Equivalents	3.0%
Telecommunication Services	2.7%
Utilities	1.6%
Total	100.0%

*         Portfolio composition is subject to change.

HSBC INVESTOR FAMILY OF FUNDS 13

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AGGRESSIVE STRATEGY FUND

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

	Shares		Value($)
Affiliated Investment Companies—6.6%
HSBC Investor Mid-Cap Fund, Class I Shares		95,690		678,440
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a)		118,781		118,781
TOTAL AFFILIATED INVESTMENT COMPANIES				797,221
Affiliated Portfolios—58.4%
HSBC Investor Growth Portfolio				2,674,279
HSBC Investor International Equity Portfolio				1,058,476
HSBC Investor Opportunity Portfolio				665,429
HSBC Investor Value Portfolio				2,673,929
TOTAL AFFILIATED PORTFOLIOS				7,072,113
Unaffiliated Investment Companies—28.4%
BlackRock Latin America Fund, Inc., Institutional Shares		2,599		169,020
Cohen & Steers Institutional Global Realty Shares, Inc.		865		16,988
Delaware Emerging Markets Fund, Class I Shares		41,116		574,798
EII Global Property Fund, Institutional Shares		1,255		16,631
Franklin Total Return Fund, Advisor Shares		23,708		236,738
Goldman Sachs Emerging Markets Debt Fund, Class I Shares		5,840		70,824
Goldman Sachs High Yield Fund, Institutional Shares		71,458		516,078
JPMorgan High Yield Fund, Select Shares		62,287		505,940
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a)				30,630
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares		6,676		54,075
PIMCO Total Return Fund, Institutional Shares		33,742		376,435
Transamerica WMC Emerging Markets Fund, Class I Shares		66,274		870,838
TOTAL UNAFFILIATED INVESTMENT COMPANIES				3,438,995
Exchange Traded Funds—6.3%
Consumer Staples Select Sector SPDR Fund		1,749		48,325
Health Care Select Sector SPDR Fund		1,687		52,179
iShares MSCI Turkey Investable Market Index Fund				35,171
PowerShares Global Listed Private Equity Portfolio ETF		51,060		514,685
SPDR S&P International Consumer Staples Sector ETF		1,456		41,117
SPDR S&P International Health Care Sector ETF		1,114		31,682
	Shares		Value($)
Exchange Traded Funds, continued
SPDR S&P International Telecommunications Sector ETF		1,040		23,296
Vanguard Telecommunication Services ETF		237		13,428
TOTAL EXCHANGE TRADED FUNDS				759,883
TOTAL INVESTMENTS—99.7%				12,068,212

	Percentages indicated are based on net assets of $12,107,121.
(a)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.
ETF		— Exchange Traded Fund
SPDR		— Standard & Poor’s Depositary Receipt

See notes to financial statements HSBC INVESTOR FAMILY OF FUNDS 15

BALANCED STRATEGY FUND

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

	Shares		Value($)
Affiliated Investment Companies—5.3%
HSBC Investor Mid-Cap Fund, Class I Shares		192,005		1,361,315
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a)		443,604		443,604
TOTAL AFFILIATED INVESTMENT COMPANIES				1,804,919
Affiliated Portfolios—41.0%
HSBC Investor Growth Portfolio				5,388,603
HSBC Investor International Equity Portfolio				1,800,275
HSBC Investor Opportunity Portfolio				1,354,730
HSBC Investor Value Portfolio				5,445,218
TOTAL AFFILIATED PORTFOLIOS				13,988,826
Unaffiliated Investment Companies—48.5%
BlackRock Latin America Fund, Inc., Institutional Shares		3,446		224,136
Cohen & Steers Institutional Global Realty Shares, Inc.		13,326		261,581
Delaware Emerging Markets Fund, Class I Shares		58,023		811,166
EII Global Property Fund, Institutional Shares		19,342		256,275
Franklin Total Return Fund, Advisor Shares		177,152		1,768,992
Goldman Sachs Emerging Markets Debt Fund, Class I Shares		200,870		2,435,943
Goldman Sachs High Yield Fund, Institutional Shares		305,993		2,210,187
Highbridge Statistical Market Neutral Fund, Select Shares		11,135		173,925
JPMorgan High Yield Fund, Select Shares		274,270		2,227,803
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a)				134,616
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares		268,500		2,174,847
PIMCO Total Return Fund, Institutional Shares		236,144		2,634,724
Transamerica WMC Emerging Markets Fund, Class I Shares		94,128		1,236,837
TOTAL UNAFFILIATED INVESTMENT COMPANIES				16,551,032
Exchange Traded Funds—5.1%
Consumer Staples Select Sector SPDR Fund		5,185		143,262
Health Care Select Sector SPDR Fund		5,041		155,918
iShares MSCI Turkey Investable Market Index Fund				69,053
PowerShares Global Listed Private Equity Portfolio ETF		105,728		1,065,738
SPDR S&P International Consumer Staples Sector ETF		4,322		122,053
SPDR S&P International Health Care Sector ETF		3,342		95,047
	Shares		Value($)
Exchange Traded Funds, continued
SPDR S&P International Telecommunications Sector ETF		3,058		68,499
Vanguard Telecommunication Services ETF		696		39,435
TOTAL EXCHANGE TRADED FUNDS				1,759,005
TOTAL INVESTMENTS—99.9%				34,103,782

	Percentages indicated are based on net assets of $34,130,573.
(a)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.
ETF		— Exchange Traded Fund
SPDR		— Standard & Poor’s Depositary Receipt

16 HSBC INVESTOR FAMILY OF FUNDS See notes to financial statements

MODERATE STRATEGY FUND

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

	Shares		Value($)
Affiliated Investment Companies—4.2%
HSBC Investor Mid-Cap Fund, Class I Shares		135,821		962,974
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a)		563,546		563,546
TOTAL AFFILIATED INVESTMENT COMPANIES				1,526,520
Affiliated Portfolios—29.1%
HSBC Investor Growth Portfolio				3,833,817
HSBC Investor International Equity Portfolio				1,940,842
HSBC Investor Opportunity Portfolio				957,949
HSBC Investor Value Portfolio				3,838,140
TOTAL AFFILIATED PORTFOLIOS				10,570,748
Unaffiliated Investment Companies—63.5%
BlackRock Latin America Fund, Inc., Institutional Shares		2,656		172,760
Cohen & Steers Institutional Global Realty Shares, Inc.		11,933		234,248
Delaware Emerging Markets Fund, Class I Shares		45,393		634,587
EII Global Property Fund, Institutional Shares		17,314		229,416
Franklin Total Return Fund, Advisor Shares		392,784		3,922,283
Goldman Sachs Emerging Markets Debt Fund, Class I Shares		240,353		2,914,984
Goldman Sachs High Yield Fund, Institutional Shares		322,716		2,331,222
Highbridge Statistical Market Neutral Fund, Select Shares		33,760		527,326
JPMorgan High Yield Fund, Select Shares		288,918		2,346,855
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a)		45,981		45,981
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares		345,175		2,795,916
PIMCO Total Return Fund, Institutional Shares		531,472		5,929,930
Transamerica WMC Emerging Markets Fund, Class I Shares		77,431		1,017,437
TOTAL UNAFFILIATED INVESTMENT COMPANIES				23,102,945
Exchange Traded Funds—3.2%
Consumer Staples Select Sector SPDR Fund		4,138		114,333
Health Care Select Sector SPDR Fund		3,999		123,689
iShares MSCI Turkey Investable Market Index Fund				37,687
PowerShares Global Listed Private Equity Portfolio ETF		60,380		608,630
SPDR S&P International Consumer Staples Sector ETF		3,440		97,146
SPDR S&P International Health Care Sector ETF		2,673		76,020
	Shares		Value($)
Exchange Traded Funds, continued
SPDR S&P International Telecommunications Sector ETF		2,474		55,418
Vanguard Telecommunication Services ETF		569		32,239
TOTAL EXCHANGE TRADED FUNDS				1,145,162
TOTAL INVESTMENTS—100.0%				36,345,375

	Percentages indicated are based on net assets of $36,354,535.
(a)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.
ETF		— Exchange Traded Fund
SPDR		— Standard & Poor’s Depositary Receipt

See notes to financial statements HSBC INVESTOR FAMILY OF FUNDS 17

CONSERVATIVE STRATEGY FUND

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

	Shares		Value($)
Affiliated Investment Companies—3.7%
HSBC Investor Mid-Cap Fund, Class I Shares		29,628		210,066
HSBC Investor Prime Money Market Fund, Class I Shares, 0.12% (a)		244,370		244,370
TOTAL AFFILIATED INVESTMENT COMPANIES				454,436
Affiliated Portfolios—20.0%
HSBC Investor Growth Portfolio				810,714
HSBC Investor International Equity Portfolio				606,824
HSBC Investor Opportunity Portfolio				212,437
HSBC Investor Value Portfolio				819,283
TOTAL AFFILIATED PORTFOLIOS				2,449,258
Unaffiliated Investment Companies—76.2%
Cohen & Steers Institutional Global Realty Shares, Inc.		945		18,543
Delaware Emerging Markets Fund, Class I Shares		3,202		44,765
EII Global Property Fund, Institutional Shares		1,370		18,156
Franklin Total Return Fund, Advisor Shares		220,227		2,199,164
Goldman Sachs Emerging Markets Debt Fund, Class I Shares		80,158		972,087
Goldman Sachs High Yield Fund, Institutional Shares		100,143		723,347
Highbridge Statistical Market Neutral Fund, Select Shares		21,565		336,839
JPMorgan High Yield Fund, Select Shares		89,924		730,386
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (a)		142,678		142,678
PIMCO Commodity RealReturn Strategy Fund, Institutional Shares		811,207		811,207
PIMCO Total Return Fund, Institutional Shares		293,696		3,276,871
Transamerica WMC Emerging Markets Fund, Class I Shares		5,302		69,671
TOTAL UNAFFILIATED INVESTMENT COMPANIES				9,343,714
Exchange Traded Funds—1.2%
Consumer Staples Select Sector SPDR Fund		887		24,508
Health Care Select Sector SPDR Fund		856		26,476
PowerShares Global Listed Private Equity Portfolio ETF		3,681		37,105
SPDR S&P International Consumer Staples Sector ETF		739		20,869
SPDR S&P International Health Care Sector ETF		580		16,495
	Shares		Value($)
Exchange Traded Funds, continued
SPDR S&P International Telecommunications Sector ETF		542		12,141
Vanguard Telecommunication Services ETF		124		7,026
TOTAL EXCHANGE TRADED FUNDS				144,620
TOTAL INVESTMENTS—101.1%				12,392,028

	Percentages indicated are based on net assets of $12,261,419.
(a)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.
ETF		— Exchange Traded Fund
SPDR		— Standard & Poor’s Depositary Receipt

18 HSBC INVESTOR FAMILY OF FUNDS See notes to financial statements

(This Page Intentionally Left Blank)

HSBC INVESTOR WORLD SELECTION FUNDS

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

	Aggressive Strategy Fund			Balanced Strategy Fund			Moderate Strategy Fund			Conservative Strategy Fund
Assets:
Investments in Affiliated Portfolios	$	7,072,113		$	13,988,826		$	10,570,748		$	2,449,258
Investments in Affiliated Funds, at value (a)		797,221			1,804,919			1,526,520			454,436
Investments in non-affiliates, at value		4,198,878			18,310,037			24,248,107			9,488,334
Total Investments		12,068,212			34,103,782			36,345,375			12,392,028
Receivable for capital shares issued		128,457			195,961			104,209			25,756
Receivable for investments sold		—			—			997			—
Reclaims receivable		7,118			18,024			15,108			3,305
Receivable from Investment Adviser		1,111			1,362			1,472			489
Prepaid expenses and other assets		6,395			9,705			8,979			5,183
Total Assets		12,211,293			34,328,834			36,476,140			12,426,761
Liabilities:
Payable for investments purchased		30,502			133,687			46,092			142,331
Payable for capital shares redeemed		55,029			19,253			20,492			1,828
Accrued expenses and other liabilities:
Investment Management		482			1,362			1,472			489
Administration		185			524			565			188
Distribution		3,071			9,341			11,057			4,006
Shareholder Servicing		2,412			6,809			7,361			2,446
Compliance Services		—			2			9			—
Transfer Agent		8,593			11,451			15,013			7,500
Trustee		11			25			22			3
Other		3,887			15,807			19,522			6,551
Total Liabilities		104,172			198,261			121,605			165,342
Net Assets:
Net Assets	$	12,107,121		$	34,130,573		$	36,354,535		$	12,261,419
Composition of Net Assets:
Capital	$	13,007,068		$	36,143,009		$	38,308,365		$	12,800,657
Accumulated net investment income (loss)		(19,607	)		140,964			63,136			23,056
Accumulated net realized gains (losses) from investment and foreign currency transactions		(1,728,422	)		(4,401,806	)		(4,362,315	)		(1,214,633	)
Unrealized appreciation/depreciation from investments and foreign currencies		848,082			2,248,406			2,345,349			652,339
Net Assets	$	12,107,121		$	34,130,573		$	36,354,535		$	12,261,419
Net Assets:
Class A Shares	$	6,976,779		$	18,397,961		$	18,183,475		$	5,543,463
Class B Shares		4,619,902			13,220,905			16,366,716			6,024,269
Class C Shares		510,440			2,511,707			1,804,344			693,687
	$	12,107,121		$	34,130,573		$	36,354,535		$	12,261,419
Shares Outstanding
($0.001 par value, unlimited number of shares authorized):
Class A Shares		603,124			1,602,778			1,655,559			519,736
Class B Shares		414,906			1,151,654			1,491,172			570,772
Class C Shares		45,858			218,018			168,490			63,964
Net Asset Value, Offering Price and Redemption Price per share:
Class A Shares	$	11.57		$	11.48		$	10.98		$	10.67
Class B Shares(b)	$	11.13		$	11.48		$	10.98		$	10.55
Class C Shares(b)	$	11.13		$	11.52		$	10.71		$	10.84
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	$	12.18		$	12.08		$	11.56		$	11.23
Investments in Affiliated Funds, at Cost	$	779,317		$	1,840,237		$	1,500,323		$	578,055
Investments in non-affiliates, at Cost	$	3,978,897		$	17,168,347		$	33,318,648		$	6,886,985

(a)	The investment in the affiliated funds is the HSBC Investor Prime Money Market Fund, Class I Shares and HSBC Investor Mid-Cap Fund, Class I Shares (See Note 1).
(b)	Redemption Price per share varies by length of time shares are held.

20 HSBC INVESTOR WORLD SELECTION FUNDS See notes to financial statements

HSBC INVESTOR WORLD SELECTION FUNDS

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

	Aggressive Strategy Fund			Balanced Strategy Fund			Moderate Strategy Fund			Conservative Strategy Fund
Investment Income:
Investment income from non-affiliates	$	30,330		$	283,769		$	431,403		$	166,134
Investment Income from Affiliated Portfolios (a)		43,770			103,055			91,681			21,863
Investment Income from Affiliated Fund		47			179			653			647
Tax reclaims (a)		1,986			(114	)		541			2,509
Foreign tax withholding from Affiliated Portfolios (a)		(1,415	)		(3,141	)		(2,998	)		(779	)
Expenses from Affiliated Portfolios (a)		(29,459	)		(65,849	)		(54,981	)		(12,150	)
Total Investment Income (Loss)		45,259			317,899			466,299			178,224
Expenses:
Investment Management		2,589			7,569			8,414			2,753
Administration:
Class A Shares		587			1,609			1,668			507
Class B Shares		400			1,158			1,480			519
Class C Shares		34			175			164			57
Distribution:
Class B Shares		15,228			44,726			56,401			19,799
Class C Shares		1,313			6,779			6,278			2,186
Shareholder Servicing:
Class A Shares		7,439			20,710			21,193			6,438
Class B Shares		5,079			14,907			18,806			6,599
Class C Shares		438			2,260			2,092			725
Accounting		9,428			9,428			9,428			9,428
Compliance Service		18			60			72			18
Printing		6,471			17,711			18,404			6,978
Professional		1,332			1,599			1,654			1,340
Transfer Agent		24,280			36,896			37,278			19,908
Trustee		63			185			203			63
Registration fees		5,182			3,867			6,730			1,948
Other		1,067			1,443			1,319			526
Total expenses before fee reductions		80,948			171,082			191,584			79,792
Fees reduced by Investment Adviser		(16,082	)		(7,569	)		(8,414	)		(2,753	)
Net Expenses		64,866			163,513			183,170			77,039
Net Investment Income (Loss)		(19,607	)		154,386			283,129			101,185
Net Realized/Unrealized Gains (Losses) from Investments: (a)
Net realized gains (losses) from investments and foreign currency transactions		392,904			947,576			823,970			184,663
Net realized gains (losses) from non-affiliates investment transactions		(3,913	)		140,634			258,555			143,383
Change in unrealized appreciation/depreciation from investments and foreign currencies		851,685			1,680,088			922,825			38,777
Change in unrealized appreciation/depreciation from non-affiliates investments		31,593			377,067			801,949			319,546
Net realized/unrealized gains from investments and foreign currency transactions		1,272,269			3,145,365			2,807,299			686,369
Change In Net Assets Resulting From Operations	$	1,252,662		$	3,299,751		$	3,090,428		$	787,554

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

See notes to financial statements HSBC INVESTOR WORLD SELECTION FUNDS 21

HSBC INVESTOR WORLD SELECTION FUNDS

Statements of Changes in Net Assets

	Aggressive Strategy Fund						Balanced Strategy Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	(19,607	)	$	(19,050	)	$	154,386		$	121,934
Net realized gains (losses) from investments transactions		388,991			(1,143,628	)		1,088,210			(3,219,284	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		883,278			2,619,167			2,057,155			7,340,545
Change in net assets resulting from operations		1,252,662			1,456,489			3,299,751			4,243,195
Dividends:
Net investment income:
Class A Shares		—			—			(120,819	)		(139,550	)
Class B Shares		—			—			(13,178	)		(7,901	)
Class C Shares		—			—			(2,103	)		(1,544	)
Net realized gains:
Change in net assets resulting from shareholder dividends		—			—			(136,100	)		(148,995	)
Change in net assets resulting from capital transactions		1,372,170			(31,438	)		2,959,596			(447,939	)
Change in net assets		2,624,832			1,425,051			6,123,247			3,646,261
Net Assets:
Beginning of period		9,482,289			8,057,238			28,007,326			24,361,065
End of period	$	12,107,121		$	9,482,289		$	34,130,573		$	28,007,326
Accumulated net investment income (loss)	$	(19,607	)	$	—		$	140,964		$	122,678

22 HSBC INVESTOR WORLD SELECTION FUNDS See notes to financial statements

HSBC INVESTOR WORLD SELECTION FUNDS

Statements of Changes in Net Assets (continued)

	Aggressive Strategy Fund						Balanced Strategy Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	1,361,849		$	919,824		$	2,238,678		$	1,604,683
Dividends reinvested		—			—			118,661			138,893
Value of shares redeemed		(538,750	)		(913,945	)		(975,785	)		(2,526,023	)
Class A Shares capital transactions		823,099			5,879			1,381,554			(782,447	)
Class B Shares:
Proceeds from shares issued		683,673			424,668			1,546,547			935,667
Dividends reinvested		—			—			13,153			7,888
Value of shares redeemed		(319,561	)		(383,617	)		(805,807	)		(915,409	)
Class B Shares capital transactions		364,112			41,051			753,893			28,146
Class C Shares:
Proceeds from shares issued		234,220			16,971			994,706			496,755
Dividends reinvested		—			—			2,040			1,544
Value of shares redeemed		(49,261	)		(95,339	)		(172,597	)		(191,937	)
Class C Shares capital transactions		184,959			(78,368	)		824,149			306,362
Change in net assets resulting from capital transactions	$	1,372,170		$	(31,438	)	$	2,959,596		$	(447,939	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		119,591			108,502			198,538			177,228
Reinvested		—			—			10,886			17,211
Redeemed		(48,338	)		(107,013	)		(87,354	)		(293,206	)
Change in Class A Shares		71,253			1,489			122,070			(98,767	)
Class B Shares:
Issued		62,603			50,718			136,886			104,902
Reinvested		—			—			1,203			973
Redeemed		(29,866	)		(45,783	)		(72,366	)		(105,971	)
Change in Class B Shares		32,737			4,935			65,723			(96	)
Class C Shares:
Issued		21,113			2,243			87,730			58,266
Reinvested		—			—			186			190
Redeemed		(4,566	)		(11,023	)		(15,511	)		(19,296	)
Change in Class C Shares		16,547			(8,780	)		72,405			39,160
Class I Shares:

See notes to financial statements HSBC INVESTOR WORLD SELECTION FUNDS 23

HSBC INVESTOR WORLD SELECTION FUNDS

Statements of Changes in Net Assets (continued)

	Moderate Strategy Fund						Conservative Strategy Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
Investment Activities:
Operations:
Net investment income (loss)	$	283,129		$	304,905		$	101,185		$	110,589
Net realized gains (losses) from investments transactions		1,082,525			(3,357,874	)		328,046			(973,853	)
Change in unrealized appreciation/depreciation from investments and foreign currencies		1,724,774			7,600,975			358,323			2,220,121
Change in net assets resulting from operations		3,090,428			4,548,006			787,554			1,356,857
Dividends:
Net investment income:
Class A Shares		(161,983	)		(193,616	)		(50,136	)		(71,561	)
Class B Shares		(93,454	)		(84,484	)		(34,946	)		(34,422	)
Class C Shares		(10,985	)		(9,513	)		(4,342	)		(3,180	)
Change in net assets resulting from shareholder dividends		(266,422	)		(287,613	)		(89,424	)		(109,163	)
Change in net assets resulting from capital transactions		1,903,069			(620,407	)		1,112,967			(322,434	)
Change in net assets		4,727,075			3,639,986			1,811,097			925,260
Net Assets:
Beginning of period		31,627,460			27,987,474			10,450,322			9,525,062
End of period	$	36,354,535		$	31,627,460		$	12,261,419		$	10,450,322
Accumulated net investment income (loss)	$	63,136		$	46,429		$	23,056		$	11,295

24 HSBC INVESTOR WORLD SELECTION FUNDS See notes to financial statements

HSBC INVESTOR WORLD SELECTION FUNDS

Statements of Changes in Net Assets (continued)

	Moderate Strategy Fund						Conservative Strategy Fund
	For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009			For the six months ended April 30, 2010 (Unaudited)			For the year ended October 31, 2009
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued	$	2,118,615		$	1,737,577		$	841,920		$	845,986
Dividends reinvested		161,115			193,104			48,013			69,473
Value of shares redeemed		(1,432,756	)		(2,409,781	)		(738,972	)		(1,218,686	)
Class A Shares capital transactions		846,974			(479,100	)		150,961			(303,227	)
Class B Shares:
Proceeds from shares issued		1,812,380			1,513,370			1,139,617			770,085
Dividends reinvested		92,776			84,267			34,378			33,341
Value of shares redeemed		(1,030,345	)		(1,629,024	)		(385,380	)		(820,164	)
Class B Shares capital transactions		874,811			(31,387	)		788,615			(16,738	)
Class C Shares:
Proceeds from shares issued		407,233			297,893			287,457			79,844
Dividends reinvested		10,888			9,424			4,172			3,101
Value of shares redeemed		(236,837	)		(417,237	)		(118,238	)		(85,414	)
Class C Shares capital transactions		181,284			(109,920	)		173,391			(2,469	)
Change in net assets resulting from capital transactions	$	1,903,069		$	(620,407	)	$	1,112,967		$	(322,434	)
SHARE TRANSACTIONS:
Class A Shares:
Issued		197,298			194,386			80,117			94,440
Reinvested		15,013			22,198			4,583			7,802
Redeemed		(134,164	)		(275,784	)		(70,561	)		(133,563	)
Change in Class A Shares		78,147			(59,200	)		14,139			(31,321	)
Class B Shares:
Issued		167,722			172,132			109,333			87,053
Reinvested		8,631			9,836			3,310			3,828
Redeemed		(96,547	)		(191,599	)		(37,149	)		(91,989	)
Change in Class B Shares		79,806			(9,631	)		75,494			(1,108	)
Class C Shares:
Issued		38,848			33,657			26,977			8,443
Reinvested		1,038			1,125			391			348
Redeemed		(22,632	)		(49,433	)		(11,041	)		(8,952	)
Change in Class C Shares		17,254			(14,651	)		16,327			(161	)

See notes to financial statements HSBC INVESTOR WORLD SELECTION FUNDS 25

AGGRESSIVE 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 Investments			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(i)	$	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
Year Ended October 31, 2009	$	8.62		0.01	*		1.57			1.58			—			—			10.20
Six Months Ended April 30, 2010 (Unaudited)	$	10.20		—	*(g)		1.37			1.37			—			—			11.57
CLASS B SHARES
Period Ended October 31, 2005(j)	$	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
Year Ended October 31, 2009	$	8.39		(0.06	)*		1.53			1.47			—			—			9.86
Six Months Ended April 30, 2010 (Unaudited)	$	9.86		(0.04	)*		1.31			1.27			—			—			11.13
CLASS C SHARES
Period Ended October 31, 2005(k)	$	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
Year Ended October 31, 2009	$	8.39		(0.05	)*		1.51			1.46			—			—			9.85
Six Months Ended April 30, 2010 (Unaudited)	$	9.85		(0.04	)*		1.32			1.28			—			—			11.13

				Ratios/Supplementary Data
	Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(i)		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	%
Year Ended October 31, 2009		18.33	%(h)		5,426		1.50	%		0.09	%		2.16	%		53.42	%
Six Months Ended April 30, 2010 (Unaudited)		13.43	%		6,977		1.50	%		(0.06	)%		1.81	%		22.38	%
CLASS B SHARES
Period Ended October 31, 2005(j)		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	%
Year Ended October 31, 2009		17.52	%(h)		3,767		2.25	%		(0.66	)%		2.91	%		53.42	%
Six Months Ended April 30, 2010 (Unaudited)		12.88	%		4,620		2.25	%		(0.81	)%		2.56	%		22.38	%
CLASS C SHARES
Period Ended October 31, 2005(k)		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	%
Year Ended October 31, 2009		17.40	%(h)		289		2.25	%		(0.59	)%		2.93	%		53.42	%
Six Months Ended April 30, 2010 (Unaudited)		12.99	%		510		2.25	%		(0.81	)%		2.56	%		22.38	%

*	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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investments companies by their corresponding 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 received monies related to 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 or $(0.01).
(h)	During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to 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.
(i)	Class A Shares commenced operations on February 14, 2005.
(j)	Class B Shares commenced operations on February 9, 2005.
(k)	Class C Shares commenced operations on June 9, 2005.

26 HSBC INVESTOR WORLD SELECTION FUNDS

BALANCED 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 Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains from Investment Transactions			Total Dividends			Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(i)	$	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
Year Ended October 31, 2009	$	8.81		0.07	*		1.55			1.62			(0.09	)		—			(0.09	)		10.34
Six Months Ended April 30, 2010 (Unaudited)	$	10.34		0.07	*		1.15			1.22			(0.08	)		—			(0.08	)		11.48
CLASS B SHARES
Period Ended October 31, 2005(j)	$	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	)		—	(l)		(0.74	)		(0.74	)		8.76
Year Ended October 31, 2009	$	8.76		0.01	*		1.55			1.56			(0.01	)		—			(0.01	)		10.31
Six Months Ended April 30, 2010 (Unaudited)	$	10.31		0.03	*		1.15			1.18			(0.01	)		—			(0.01	)		11.48
CLASS C SHARES
Period Ended October 31, 2005(k)	$	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
Year Ended October 31, 2009	$	8.80		0.01	*		1.55			1.56			(0.01	)		—			(0.01	)		10.35
Six Months Ended April 30, 2010 (Unaudited)	$	10.35		0.04	*		1.14			1.18			(0.01	)		—			(0.01	)		11.52

				Ratios/Supplementary Data
	Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(i)		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	%(f)		21,352		1.50	%		0.84	%		1.65	%		73.45	%
Year Ended October 31, 2008		(36.43	)%(g)		13,908		1.50	%		0.98	%		1.53	%		78.59	%
Year Ended October 31, 2009		18.66	%(h)		15,304		1.50	%		0.84	%		1.57	%		47.74	%
Six Months Ended April 30, 2010 (Unaudited)		11.85	%		18,398		1.18	%		1.35	%		1.23	%		26.86	%
CLASS B SHARES
Period Ended October 31, 2005(j)		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	%(f)		13,905		2.25	%		0.09	%		2.40	%		73.45	%
Year Ended October 31, 2008		(36.95	)%(g)		9,516		2.25	%		0.24	%		2.28	%		78.59	%
Year Ended October 31, 2009		17.80	%(h)		11,196		2.25	%		0.08	%		2.31	%		47.74	%
Six Months Ended April 30, 2010 (Unaudited)		11.47	%		13,221		1.93	%		0.61	%		1.98	%		26.86	%
CLASS C SHARES
Period Ended October 31, 2005(k)		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	%(f)		1,273		2.25	%		0.07	%		2.39	%		73.45	%
Year Ended October 31, 2008		(36.94	)%(g)		937		2.25	%		0.25	%		2.29	%		78.59	%
Year Ended October 31, 2009		17.81	%(h)		1,507		2.25	%		0.06	%		2.30	%		47.74	%
Six Months Ended April 30, 2010 (Unaudited)		11.44	%		2,512		1.92	%		0.64	%		1.97	%		26.86	%

*	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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investment companies by their corresponding 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, 2007, certain HSBC Investor Portfolios in which the Fund invests 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.
(g)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.15%, 0.15% and 0.15% for Class A Shares, Class B Shares and Class C Shares, respectively.
(h)	During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to 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.
(i)	Class A Shares commenced operations on February 8, 2005.
(j)	Class B Shares commenced operations on February 1, 2005.
(k)	Class C Shares commenced operations on April 27, 2005.
(l)	Rounds to less than $0.01.

HSBC INVESTOR WORLD SELECTION FUNDS 27

MODERATE 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 Investments			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(j)	$	10.00		0.04			0.45			0.49			—	(f)		—			—			—	(f)	$	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
Year Ended October 31, 2009	$	8.69		0.13	*		1.39			1.52			(0.12	)		—			—			(0.12	)		10.09
Six Months Ended April 30, 2010 (Unaudited)	$	10.09		0.11	*		0.88			0.99			(0.10	)		—			—			(0.10	)		10.98
CLASS B SHARES
Period Ended October 31, 2005(k)	$	10.00		0.01			0.49			0.50			—	(f)		—			—			—(f	)	$	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
Year Ended October 31, 2009	$	8.69		0.06	*		1.39			1.45			(0.06	)		—			—			(0.06	)		10.08
Six Months Ended April 30, 2010 (Unaudited)	$	10.08		0.07	*		0.90			0.97			(0.07	)		—			—			(0.07	)		10.98
CLASS C SHARES
Period Ended October 31, 2005(l)	$	10.00		—	(f)		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
Year Ended October 31, 2009	$	8.49		0.06	*		1.35			1.41			(0.06	)		—			—			(0.06	)		9.84
Six Months Ended April 30, 2010 (Unaudited)	$	9.84		0.07	*		0.87			0.94			(0.07	)		—			—			(0.07	)		10.71

				Ratios/Supplementary Data
	Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(j)		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	%(g)		20,140		1.50	%		1.70	%		1.60	%		92.87	%
Year Ended October 31, 2008		(30.65	)%(h)		14,226		1.48	%		1.75	%		1.48	%		79.86	%
Year Ended October 31, 2009		17.75	%(i)		15,909		1.44	%		1.47	%		1.49	%		41.29	%
Six Months Ended April 30, 2010 (Unaudited)		9.96	%		18,183		1.04	%		2.05	%		1.09	%		30.01	%
CLASS B SHARES
Period Ended October 31, 2005(k)		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	%(g)		16,513		2.25	%		0.95	%		2.35	%		92.87	%
Year Ended October 31, 2008		(31.17	)%(h)		12,354		2.23	%		1.00	%		2.23	%		79.86	%
Year Ended October 31, 2009		16.82	%(i)		14,230		2.19	%		0.71	%		2.24	%		41.29	%
Six Months Ended April 30, 2010 (Unaudited)		9.59	%		16,367		1.79	%		1.31	%		1.84	%		30.01	%
CLASS C SHARES
Period Ended October 31, 2005(l)		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	%(g)		1,766		2.25	%		0.95	%		2.33	%		92.87	%
Year Ended October 31, 2008		(31.09	)%(h)		1,408		2.23	%		1.00	%		2.23	%		79.86	%
Year Ended October 31, 2009		16.75	%(i)		1,488		2.19	%		0.72	%		2.24	%		41.29	%
Six Months Ended April 30, 2010 (Unaudited)		9.54	%		1,804		1.79	%		1.31	%		1.84	%		30.01	%

*	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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios, affiliated and unaffiliated investment companies by their corresponding 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 or $(0.01).
(g)	During the year ended October 31, 2007, certain HSBC Investor Portfolios in which the Fund invests 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.
(h)	During the year ended October 31, 2008, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.19%, 0.19% and 0.19% for Class A Shares, Class B Shares and Class C Shares, respectively.
(i)	During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.09%, 0.09% and 0.09% for Class A Shares, Class B Shares and Class C Shares, respectively.
(j)	Class A Shares commenced operations on February 3, 2005.
(k)	Class B Shares commenced operations on February 1, 2005.
(l)	Class C Shares commenced operations on June 9, 2005.
28	HSBC INVESTOR WORLD SELECTION FUNDS

CONSERVATIVE 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 Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains from Investment Transactions			Total Dividends			Net Asset Value, End of Period
CLASS A SHARES
Period Ended October 31, 2005(j)	$	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
Year Ended October 31, 2009	$	8.84		0.14	*		1.16			1.30			(0.13	)		—			(0.13	)		10.01
Six Months Ended April 30, 2010 (Unaudited)	$	10.01		0.11	*		0.65			0.76			(0.10	)		—			(0.10	)		10.67
CLASS B SHARES
Period Ended October 31, 2005(k)	$	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
Year Ended October 31, 2009	$	8.76		0.07	*		1.15			1.22			(0.07	)		—			(0.07	)		9.91
Six Months Ended April 30, 2010 (Unaudited)	$	9.91		0.08	*		0.63			0.71			(0.07	)		—			(0.07	)		10.55
CLASS C SHARES
Period Ended October 31, 2005(l)	$	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
Year Ended October 31, 2009	$	9.00		0.07	*		1.18			1.25			(0.07	)		—			(0.07	)		10.18
Six Months Ended April 30, 2010 (Unaudited)	$	10.18		0.08	*		0.65			0.73			(0.07	)		—			(0.07	)		10.84

				Ratios/Supplementary Data
	Total Return(b)			Net Assets at End of Period (000’s)		Ratio of Net Expenses to Average Net Assets(c)			Ratio of Net Investment Income to Average Net Assets(c)			Ratio of Expenses to Average Net Assets(c)(d)			Portfolio Turnover Rate(e)
CLASS A SHARES
Period Ended October 31, 2005(j)		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	%
Year Ended October 31, 2009		14.95	%(i)		5,059		1.50	%		1.53	%		1.62	%		34.40	%
Six Months Ended April 30, 2010 (Unaudited)		7.62	%		5,543		1.22	%		2.22	%		1.27	%		31.55	%
CLASS B SHARES
Period Ended October 31, 2005(k)		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	%
Year Ended October 31, 2009		14.05	%(i)		4,907		2.25	%		0.77	%		2.38	%		34.40	%
Six Months Ended April 30, 2010 (Unaudited)		7.14	%		6,024		1.97	%		1.50	%		2.02	%		31.55	%
CLASS C SHARES
Period Ended October 31, 2005(l)		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	%
Year Ended October 31, 2009		13.97	%(i)		485		2.25	%		0.78	%		2.37	%		34.40	%
Six Months Ended April 30, 2010 (Unaudited)		7.19	%		694		1.97	%		1.50	%		2.02	%		31.55	%

*	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, the Fund does not include expenses of the affiliated and unaffiliated investment companies in which the Fund invests.
(b)	Not annualized for periods less than one year. Total return calculations do not include any sales or redemption charges.
(c)	Annualized for periods less than one year.
(d)	During each period certain fees were reduced. If such fee reductions had not occurred, the ratio would have been as indicated.
(e)	Portfolio turnover rate is calculated by aggregating the results of multiplying the Fund’s investment percentage in the respective Portfolios affiliated and unaffiliated investment companies by their corresponding 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 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 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)	During the year ended October 31, 2009, certain HSBC Investor Portfolios in which the Fund invests received monies related to certain nonrecurring litigation settlements. The corresponding impact to the total return was 0.08%, 0.08% and 0.08% for Class A Shares, Class B Shares and Class C Shares, respectively.
(j)	Class A Shares commenced operations on February 23, 2005.
(k)	Class B Shares commenced operations on February 17, 2005.
(l)	Class C Shares commenced operations on April 19, 2005.

HSBC INVESTOR WORLD SELECTION FUNDS 29

HSBC INVESTOR WORLD SELECTION FUNDS

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

1.

Organization:

The HSBC Investor Funds (the “Trust”), a Massachusetts business trust organized on April 22, 1987, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. As of April 30, 2010, the Trust is comprised of 15 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 “World Selection Funds”):

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

          The World Selection 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.

          Each of the World Selection Funds is a “fund of funds,” meaning that it seeks to achieve its investment objective by investing primarily in a combination of mutual funds managed by HSBC Global Asset Management (USA) Inc. (the “Investment Adviser”) (the “Affiliated Underlying Funds”), as well as mutual funds managed by other investment advisers and exchange-traded funds (“Unaffiliated Underlying Funds” and, together with the Affiliated Underlying Funds, the “Underlying Funds”). Each Fund may also purchase and hold exchange-traded notes (“ETNs”). The Underlying Funds may include private equity funds and real estate funds that are organized as mutual funds or Exchange Traded Funds (“ETFs”). Each World Selection Fund invests according to the investment objectives and strategies described in its Prospectus.

          The World Selection Funds currently invest in the HSBC Investor Growth Portfolio, HSBC Investor International Equity Portfolio, HSBC Investor Opportunity Portfolio and the HSBC Investor Value Portfolio (individually a “Portfolio,” collectively the “Portfolios”), each of which is a diversified series of the HSBC Investor Portfolios (the “Portfolio Trust”). The Portfolios operate as master funds in master-feeder arrangements in addition to receiving investments from the World Selection Funds.

          The financial statements of the Portfolios, including the Schedules of Portfolio Investments, are included elsewhere in this report. The financial statements of the Portfolios should be read in conjunction with the financial statements of the World Selection Funds.

          The World Selection 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 World Selection Funds have a maximum sales charge of 5.00% as a percentage of the original purchase price. The Class B Shares of the World Selection 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 World Selection 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 World Selection 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 World Selection Funds’ Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the World Selection Funds. In addition, in the normal course of business, the Trust enters into contracts with its service providers, which also provide for indemnifications by the World Selection Funds. The World Selection Funds’ maximum exposure under these arrangements is unknown as this would involve any future claims that may be made against the World Selection Funds. However, based on experience, the Trust expects the risk of loss to be remote.

30 HSBC INVESTOR WORLD SELECTION FUNDS

HSBC INVESTOR WORLD SELECTION FUNDS

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

2.	Significant Accounting Policies:
	The following is a summary of the significant accounting policies followed by the World Selection Funds in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Management has evaluated events and transactions through the date the financial statements were issued, for purposes of recognition or disclosure in these financial statements.
	Securities Valuation:
	The World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds. The World Selection Funds record their investments in the Portfolios at fair value. The underlying securities of the Portfolios are recorded at fair value, respectively, as more fully discussed in the notes to those financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value in funds or portfolios in which the World Selection Funds are invested are described in their respective notes to financial statements.
	Investment Transactions and Related Income:
	The World Selection Funds record daily their pro-rata income, expenses and unrealized/realized gains and losses derived from their respective Portfolios. Dividend income is recorded on the ex-dividend date for the Underlying Funds. Changes in holdings of the Underlying Funds for each World Selection Fund are reflected no later than the first business day following trade date. However, for financial reporting purposes, changes in holdings of the Underlying Funds are reflected as of trade date. In addition, the World Selection Funds accrue their own expenses daily as incurred.
	Allocations:
	Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all funds within the HSBC Investor Family of Funds in relation to the net assets of each fund or on another reasonable basis. Class specific expenses are charged directly to the class incurring the expense. In addition, income, expenses (other than class specific expenses), and unrealized/realized gains and losses are allocated to each class based on relative net assets on a daily basis.
	Dividends to Shareholders:
	Dividends to shareholders from net investment income, if any, are declared and distributed quarterly in the case of the Moderate Strategy Fund and Conservative Strategy Fund, and annually in the case of the Aggressive Strategy Fund and Balanced Strategy Fund.
	The World Selection Funds’ net realized gains, if any, are distributed to shareholders at least annually. Additional distributions are also made to the World Selection 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 World Selection Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as a part of the dividends paid deduction for income tax purposes. To the extent distributions to shareholders from net investment income and net realized gains exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital.

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

Redemption Fee:

          Prior to February 28, 2010 a redemption fee of 2.00% was charged and recorded as paid-in-capital for any shares redeemed or exchanged after being held for less than 30 days. This fee did not apply to shares purchased through reinvested dividends or capital gains or shares held in certain omnibus accounts or retirement plans that could not implement the fee. The Trustees have approved the removal of such redemption fee effective February 28, 2010. For the fiscal years ended October 31, 2009 and period ended April 30, 2010, respectively, the following World Selection Funds collected redemption fees as follows:

Fund	Fees Collected October 31, 2009			Fees Collected April 30, 2010
Aggressive Strategy Fund		$	47		$	3
Balanced Strategy Fund			431			11
Moderate Strategy Fund			259			10
Conservative Strategy Fund			63			1

	Federal Income Taxes:
	Each Fund is a separate taxable entity for federal income tax purposes. Each Fund has qualified and intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code, as amended and to distribute substantially all of their taxable net investment income and net realized gains, if any, to their shareholders. Accordingly, no provision for federal income or excise tax is required.
	Management of the Funds has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
	New Accounting Pronouncements:
	In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Trust’s financial statements and related disclosures.
3.	Investment Valuation Summary:
	The valuation techniques employed by the World Selection Funds, as described in Note 2 above, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the World Selection Funds’ investments are summarized in the three broad levels listed below:
		•   Level 1:	quoted prices in active markets for identical assets
		•   Level 2:	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)
		•   Level 3:	significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments)
	The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
	The following is a summary of the valuation inputs used as of April 30, 2010 in valuing the World Selection Funds’ investments based upon the three levels defined above:

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

	LEVEL 1		LEVEL 2		LEVEL 3		Total
Aggressive Strategy Fund
Investment Companies:
Affiliated Investment Companies	$	797,221	$	—	$	—	$	797,221
Affiliated Portfolios (a)		—		7,072,113		—		7,072,113
Unaffiliated Investment Companies		3,438,995		—		—		3,438,995
Exchange Traded Funds		759,883		—		—		759,883
Total Investment Companies	$	4,996,099	$	7,072,113	$	—	$	12,068,212
Balanced Strategy Fund
Investment Companies:
Affiliated Investment Companies	$	1,804,919	$	—	$	—	$	1,804,919
Affiliated Portfolios (a)		—		13,988,826		—		13,988,826
Unaffiliated Investment Companies		16,551,032		—		—		16,551,032
Exchange Traded Funds		1,759,005		—		—		1,759,005
Total Investment Companies	$	20,114,956	$	13,988,826	$	—	$	34,103,782
Moderate Strategy Fund
Investment Companies:
Affiliated Investment Companies	$	1,526,520	$	—	$	—	$	1,526,520
Affiliated Portfolios (a)		—		10,570,748		—		10,570,748
Unaffiliated Investment Companies		23,102,945		—		—		23,102,945
Exchange Traded Funds		1,145,162		—		—		1,145,162
Total Investment Companies	$	25,774,627	$	10,570,748	$	—	$	36,345,375
Conservative Fund
Investment Companies:
Affiliated Investment Companies	$	454,436	$	—	$	—	$	454,436
Affiliated Portfolios (a)		—		2,449,258		—		2,449,258
Unaffiliated Investment Companies		9,343,714		—		—		9,343,714
Exchange Traded Funds		144,620		—		—		144,620
Total Investment Companies	$	9,942,770	$	2,449,258	$	—	$	12,392,028

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

4.	Related Party Transactions:
	Investment Management:
	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 World Selection Funds. As Investment Adviser, HSBC manages the investments of the World Selection Funds and continuously reviews, supervises and administers the World Selection 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. The Investment Adviser is voluntarily waiving all of the fee for each of the World Selection Funds. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/ reimbursements may be stopped at any time.

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

Administration:

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

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

          The fee breakpoints are determined on the basis of the aggregate average daily net assets of the HSBC Investor Family of Funds. The fee is allocated to each series of the HSBC Investor Family of Funds based upon its pro-rata share of net assets. For assets invested in underlying Portfolios by World Selection Funds, the Portfolios pay half of the administration fee and the World Selection Funds pay half, for a combination of the total fee rate above. Certain administration fees of the Portfolios also may be reduced by treating them as apportioned in part to other funds making investments in the Portfolios in master-feeder structures. An amount equal to 50% of the administration fees is deemed to be class-specific.

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

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

Distribution Arrangements:

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

Shareholder Servicing:

          The Trust has adopted a Shareholder Services 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 that is computed daily and paid monthly up to 0.25%, 0.25% and 0.25% of the average daily net assets of Class A Shares, Class B Shares and Class C Shares of the World Selection 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 and 1.00% of the average daily net assets of Class B Shares and Class C Shares.

Fund Accounting, Transfer Agency and Trustees:

          Citi Ohio provides fund accounting and transfer agency services for the Trusts. As transfer agent, Citi Ohio receives a fee based on the number of funds and shareholder accounts, subject to certain minimums and reimbursement of certain expenses. As fund accountant, Citi Ohio receives an annual fee per fund and share class, subject to minimums and reimbursement of certain expenses.

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

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

Fee Reductions:

          The Investment Adviser has agreed to contractually limit through March 1, 2011 the total expenses, exclusive of interest, taxes, brokerage commissions, and extraordinary expenses of the World Selection 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%.

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

Fund	2013($)*	2012($)*	2011($)*	2010($)*
Aggressive Strategy Fund	13,496	49,257	51,467	71,425
Balanced Strategy Fund	—	3,289	—	29,729
Moderate Strategy Fund	—	—	—	14,225
Conservative Strategy Fund	—	6,592	20,961	40,321

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

	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. Any voluntary fee waivers/reimbursements are not subject to recoupment in subsequent fiscal periods. Voluntary waivers/reimbursements may be stopped at any time. Amounts waived/reimbursed by the Investment Adviser, Administrator, and Citi Ohio are reported separately on the Statements of Operations, as applicable.
5.	Investment Transactions:
	Aggregate contributions and withdrawals of the Underlying Portfolios for the period ended April 30, 2010 totaled:

Fund	Contributions		Withdrawals
Aggressive Strategy Fund	$	1,427,048	$	5,040,551
Balanced Strategy Fund		1,639,768		13,533,820
Moderate Strategy Fund		1,386,799		13,050,346
Conservative Strategy Fund		488,079		3,010,495

          Cost of purchases and proceeds from sales of securities (excluding securities maturing less than one year from acquisition) for the period ended April 30, 2010 were as follows:

Fund	Purchases		Sales
Aggressive Strategy Fund	$	5,061,167	$	299,877
Balanced Strategy Fund	$	17,465,017	$	3,105,697
Moderate Strategy Fund	$	20,564,129	$	5,766,023
Conservative Strategy Fund	$	7,506,754	$	1,998,280

6.	Federal Tax Information:
	At April 30, 2010, the cost basis of securities (which excludes investments in the Affiliated Portfolios) for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:

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

Fund	Tax Cost ($)	Tax Unrealized Appreciation ($)	Tax Unrealized Depreciation ($)		Net Unrealized Appreciation/ (Depreciation) ($)
Aggressive Strategy Fund	11,189,629	878,392	(30,310	)		848,082
Balanced Strategy Fund	33,970,095	2,299,221	(50,815	)		2,248,406
Moderate Strategy Fund	33,954,931	2,400,493	(55,145	)		2,245,348
Conservative Strategy Fund	11,597,358	669,477	(17,138	)		652,339

          The tax character of dividends paid by the World Selection Funds as of the latest tax year ended October 31, 2009 was as follows:

	Dividends paid from
Fund	Ordinary Income		Net Long Term Capital Gains		Total Taxable Dividends		Total Dividends Paid*
Aggressive Strategy Fund	$	—	$	—	$	—	$	—
Balanced Strategy Fund		148,995		—		148,995		148,995
Moderate Strategy Fund		287,613		—		287,613		287,613
Conservative Strategy Fund		109,163		—		109,163		109,163

*	Total dividends paid may differ from the amount reported in the Statements of Changes in Net Assets because dividends are recognized when actually paid for tax purposes.
As of the latest tax year ended October 31, 2009, the components of accumulated earnings/(deficit) on a tax basis for the World Selection Funds were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long Term Capital Gains		Accumulated Earnings		Accumulated Capital and Other Losses			Unrealized Appreciation/ (Depreciation)			Total Accumulated Earnings/ (Deficit)
Aggressive Strategy Fund	$	—	$	—	$	—	$	(2,039,823	)	$	(112,786	)	$	(2,152,609	)
Balanced Strategy Fund		122,678		—		122,678		(5,334,226	)		35,461			(5,176,087	)
Moderate Strategy Fund		46,429		—		46,429		(5,325,093	)		500,828			(4,777,836	)
Conservative Strategy Fund		11,295		—		11,295		(1,518,116	)		269,453			(1,237,368	)

(1)

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

As of the latest tax year ended October 31, 2009, the following World Selection Funds have net capital loss carryfor-wards, 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 Strategy Fund	$	911,837		2016
Aggressive Strategy Fund		1,127,986		2017
Balanced Strategy Fund		2,102,771		2016
Balanced Strategy Fund		3,231,455		2017
Moderate Strategy Fund		1,920,789		2016
Moderate Strategy Fund		3,404,304		2017
Conservative Strategy Fund		522,074		2016
Conservative Strategy Fund		996,042		2017

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

HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited)

          Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis.

          The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”).

          Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act.

          On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds.

          The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate.

          The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

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

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Investment Adviser Contract Approval (Unaudited) (continued)

		Funds. The Board considered the quality and experience of the Adviser’s personnel who provide management services to the Funds. With respect to the equity Funds, the Trustees considered the capabilities and performance of the Adviser’s Multimanager unit. The Trustees also took note of the long-term relationship between the Adviser and the Funds and the efforts undertaken by the Adviser to foster the growth and development of the Funds since the inception of each of the Funds. In addition, the Board considered the Adviser’s performance in fulfilling its responsibilities for overseeing the Funds’ compliance environment and for overseeing the Sub-Advisers’ compliance with the Funds’ compliance policies and procedures and investment objectives. The Board also considered the Adviser’s reputation and financial condition, as well as how the Adviser’s investment disciplines had fared during the market volatility of the preceding year.
		With respect to the administrative support services that the Adviser provides to the Funds, the Trustees considered the nature, quality and extent of these services, including the Adviser’s oversight and management of the Funds’ other service providers, and the fees payable to the Adviser and to other entities under the Adviser’s supervision that provide administrative services to the Trusts.
		The Trustees also examined the nature, quality and extent of the services that the Sub-Advisers provide or would provide to their respective Funds. In this regard, the Board considered the Sub-Advisers’ portfolio management teams, experience, and the quality of their compliance programs, as well as how the Sub-advisers’ investment disciplines had fared during the market volatility of the preceding year.
		The Trustees concluded that they were satisfied with the nature, quality and extent of the services provided by the Adviser and Sub-Advisers.
		Investment Performance of the Funds, Adviser and Sub-Advisers. The Trustees considered the short-term and long-term investment performance of each Existing Fund over various periods of time, as compared to one another as well as to comparable funds and one or more benchmark indices. The Trustees noted that the Existing Funds generally had strong performance records. In instances where it was noted that a Fund’s performance was not strong on a relative basis, the Trustees considered the Adviser’s representation as to steps it was taking to address the issue. The Trustees also considered representations of the Adviser regarding the relative performance of the portfolio management team proposed for the GEM Funds. The Trustees concluded that the investment performance presented supported the continuation or initial approval of the Agreements, as appropriate, with respect to each Fund.
		Costs of Services and Profits Realized by the Adviser. The Trustees considered the costs of the services provided by the Adviser and Sub-Advisers and the expense ratios of the Funds more generally. In this regard, the Trustees compared Fund expenses to those of similar funds, noting that the Funds’ expenses generally compare favorably with industry averages for other funds.
		The Trustees considered the Adviser’s profitability and costs, including an analysis provided by the Adviser of its estimated profitability attributable to its relationship with the Funds. The Trustees considered the advisory fees under the Trusts’ Advisory Contracts and compared those fees to the fees of similar funds, which had been provided by the Adviser from a database compiled by Lipper Inc. The Trustees determined that the Funds had competitive advisory fees with those of similar funds, noting the resources, expertise and experience that the Adviser provided to the Funds. The Trustees also compared the advisory fees under the Advisory Contracts with those of other accounts managed by the Adviser, and evaluated information provided as to why advisory fees may differ between mutual funds and other advisory relationships. In this regard, the Trustees concluded that differences in advisory fees assessed between the Funds and other accounts managed by the Adviser did not preclude approval of the Advisory Contracts.
		With respect to the administrative support services provided by the Adviser, the Trustees considered the fees charged for such services and evaluated the fees payable to the Adviser and those payable to other providers of administrative services to the Funds.
		The Trustees also considered the costs of the services provided by the Sub-Advisers, as applicable; the relative portions of the total advisory fees paid to the Sub-Advisers and retained by the Adviser in its capacity as the Funds’ investment adviser; and the services provided by the Adviser and Sub-Advisers. The Trustees also considered certain information on profitability provided by certain of the Sub-Advisers.
		The Trustees concluded that the combined advisory fees payable to the Adviser and the Funds’ Sub-Advisers are fair and reasonable in light of the factors set forth above.
38	HSBC INVESTOR WORLD SELECTION FUNDS

HSBC INVESTOR FAMILY OF FUNDS

Investment Adviser Contract Approval (Unaudited) (continued)

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

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

HSBC INVESTOR WORLD SELECTION FUNDS 39

HSBC INVESTOR FAMILY OF FUNDS

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

          As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchases or redemptions of shares; 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 do not include expenses from the underlying investment companies in which the Funds’ invests.

          These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 through April 30, 2010.

Actual Example

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

		Beginning Account Value 11/1/09			Ending Account Value 4/30/10			Expenses Paid During Period* 11/1/09 – 4/30/10			Annualized Expense Ratio During Period 11/1/09 – 4/30/10
Aggressive Strategy Fund	Class A Shares		$	1,000.00		$	1,134.30		$	7.94	1.50%
	Class B Shares			1,000.00			1,128.80			11.88	2.25%
	Class C Shares			1,000.00			1,129.90			11.88	2.25%
Balanced Strategy Fund	Class A Shares			1,000.00			1,118.50			6.15	1.17%
	Class B Shares			1,000.00			1,114.70			10.07	1.92%
	Class C Shares			1,000.00			1,114.40			10.07	1.92%
Moderate Strategy Fund	Class A Shares			1,000.00			1,099.60			5.41	1.04%
	Class B Shares			1,000.00			1,095.90			9.30	1.79%
	Class C Shares			1,000.00			1,095.40			9.30	1.79%
Conservative Strategy Fund	Class A Shares			1,000.00			1,076.20			6.28	1.22%
	Class B Shares			1,000.00			1,071.40			10.12	1.97%
	Class C Shares			1,000.00			1,071.90			10.12	1.97%

*	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).
40	HSBC INVESTOR WORLD SELECTION FUNDS

HSBC INVESTOR FAMILY OF FUNDS

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

Hypothetical Example for Comparison Purposes

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

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

		Beginning Account Value 11/1/09			Ending Account Value 4/30/10			Expenses Paid During Period* 11/1/09 – 4/30/10			Annualized Expense Ratio During Period 11/1/09 – 4/30/10
Aggressive Strategy Fund	Class A Shares		$	1,000.00		$	1,017.36		$	7.50	1.50%
	Class B Shares			1,000.00			1,013.64			11.23	2.25%
	Class C Shares			1,000.00			1,013.64			11.23	2.25%
Balanced Strategy Fund	Class A Shares			1,000.00			1,018.99			5.86	1.17%
	Class B Shares			1,000.00			1,015.27			9.59	1.92%
	Class C Shares			1,000.00			1,015.27			9.59	1.92%
Moderate Strategy Fund	Class A Shares			1,000.00			1,019.64			5.21	1.04%
	Class B Shares			1,000.00			1,015.92			8.95	1.79%
	Class C Shares			1,000.00			1,015.92			8.95	1.79%
Conservative Strategy Fund	Class A Shares			1,000.00			1,018.74			6.11	1.22%
	Class B Shares			1,000.00			1,015.03			9.84	1.97%
	Class C Shares			1,000.00			1,015.03			9.84	1.97%

* 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 WORLD SELECTION FUNDS 41

Other Information:

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

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

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

42 HSBC INVESTOR FAMILY OF FUNDS

HSBC INVESTOR GROWTH PORTFOLIO

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

Common Stocks—96.3%
	Shares		Value($)
Consumer Discretionary – 10.4%
Amazon.com, Inc. (a)		11,900		1,631,014
Kohl’s Corp. (a)		20,100		1,105,299
New Oriental Education & Technology Group, Inc. ADR (a)		7,600		711,132
O’Reilly Automotive, Inc. (a)		22,300		1,090,247
Priceline.com, Inc. (a)		7,600		1,991,580
Target Corp.		18,300		1,040,721
The Estee Lauder Cos., Inc., Class A		9,400		619,648
Urban Outfitters, Inc. (a)		38,800		1,455,388
				9,645,029
Consumer Staples – 4.5%
Costco Wholesale Corp.		22,300		1,317,484
PepsiCo, Inc.		14,800		965,256
Staples, Inc.		38,400		903,552
Yum! Brands, Inc.		22,900		971,418
				4,157,710
Energy – 9.0%
Dresser-Rand Group, Inc. (a)		29,500		1,040,760
EOG Resources, Inc.		8,500		953,020
First Solar, Inc. (a)		4,800		689,040
FMC Technologies, Inc. (a)		14,500		981,505
Occidental Petroleum Corp.		10,900		966,394
Peabody Energy Corp.		24,500		1,144,640
Schlumberger Ltd.		35,900		2,563,978
				8,339,337
Financials – 7.1%
Goldman Sachs Group, Inc.		12,500		1,815,000
IntercontinentalExchange, Inc. (a)		7,700		898,051
Invesco Ltd.		16,800		386,232
JP Morgan Chase & Co.		61,000		2,597,380
The Charles Schwab Corp.		46,400		895,056
				6,591,719
Health Care – 8.9%
Celgene Corp. (a)		22,400		1,387,680
Express Scripts, Inc. (a)		12,800		1,281,664
Gilead Sciences, Inc. (a)		11,600		460,172
Medco Health Solutions, Inc. (a)		40,600		2,392,152
Shire plc ADR		13,700		902,008
Teva Pharmaceutical Industries Ltd. ADR		31,600		1,855,868
				8,279,544
Industrials – 12.9%
C.H. Robinson Worldwide, Inc.		16,100		970,830
Danaher Corp.		29,400		2,477,832
Deere & Co.		16,000		957,120
Flowserve Corp.		7,900		905,182
Fluor Corp.		16,600		877,144
Illinois Tool Works, Inc.		27,600		1,410,360
Union Pacific Corp.		33,600		2,542,176
United Technologies Corp.		25,200		1,888,740
				12,029,384
Common Stocks, continued
	Shares		Value($)
Information Technology – 40.2%
Agilent Technologies, Inc. (a)		23,400		848,484
Apple, Inc. (a)		16,800		4,386,816
Baidu, Inc. ADR (a)		1,565		1,078,755
Broadcom Corp., Class A		27,400		945,026
Cisco Systems, Inc. (a)		100,200		2,697,384
Citrix Systems, Inc. (a)		19,300		907,100
Cognizant Technology Solutions Corp. (a)		59,700		3,055,446
Dell, Inc. (a)		60,100		972,418
EMC Corp. (a)		58,600		1,113,986
Equinix, Inc. (a)		13,900		1,399,035
Google, Inc., Class A (a)		4,000		2,101,760
Hewlett-Packard Co.		63,000		3,274,110
Juniper Networks, Inc. (a)		17,700		502,857
Lam Research Corp. (a)		24,800		1,005,640
Linear Technology Corp.		27,400		823,644
Marvell Technology Group Ltd. (a)		65,000		1,342,250
MasterCard, Inc., Class A		5,000		1,240,200
Microsoft Corp.		51,500		1,572,810
Oracle Corp.		72,500		1,873,400
QUALCOMM, Inc.		54,300		2,103,582
Salesforce.com, Inc. (a)		5,400		462,240
Visa, Inc., Class A		35,600		3,212,188
VMware, Inc., Class A (a)		7,900		486,956
				37,406,087
Materials – 3.3%
Cliffs Natural Resources, Inc.		20,900		1,306,877
Ecolab, Inc.		17,900		874,236
Freeport-McMoRan Copper & Gold, Inc.		11,700		883,701
				3,064,814
TOTAL COMMON STOCKS (COST $74,469,535)				89,513,624
Investment Companies—3.0%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)		2,770,934		2,770,934
TOTAL INVESTMENT COMPANIES (COST $2,770,934)				2,770,934
TOTAL INVESTMENTS (COST $77,240,469) — 99.3%				92,284,558

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

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 43

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

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

Common Stocks—97.6%
	Shares		Value($)
Australia – 4.6%
Australia & New Zealand Banking Group Ltd.		122,800		2,719,353
BHP Billiton Ltd.		36,500		1,334,019
Boral Ltd.		53,500		289,161
Macquarie Group Ltd.		18,300		834,303
National Australia Bank Ltd.		113,565		2,900,842
Telstra Corp. Ltd.		513,500		1,504,179
				9,581,857
Austria – 0.4%
OMV AG		21,700		775,309
Belgium – 0.3%
KBC Groep NV (a)		15,200		679,995
Brazil – 0.5%
Banco Do Brasil SA		60,000		1,035,579
Canada – 4.2%
Encana Corp.		16,000		529,394
Industrial Alliance Insurance and Financial Services, Inc.		26,100		900,585
National Bank of Canada		26,600		1,626,647
Nexen, Inc.		78,892		1,918,890
Penn West Energy Trust		35,660		718,818
Suncor Energy, Inc.		62,428		2,136,261
WestJet Airlines Ltd. (a)		59,300		788,331
				8,618,926
Denmark – 2.1%
Carlsberg A/S, Class B		25,625		2,071,326
Danske Bank A/S (a)		84,800		2,214,274
				4,285,600
Finland – 1.8%
Nokia Oyj		296,400		3,623,217
France – 13.3%
BNP Paribas SA		60,698		4,168,618
Bouygues SA		20,200		1,000,787
Casino Guichard-Perrachon SA		17,000		1,500,466
Compagnie de Saint-Gobain		45,800		2,260,669
Compagnie Generale de Geophysique-Veritas (a)		31,800		957,266
Credit Agricole SA		60,739		868,163
Electricite de France		42,900		2,298,902
France Telecom SA		113,600		2,486,598
Klepierre		25,400		875,190
Lagardere S.C.A.		46,400		1,871,226
Sanofi-Aventis		52,700		3,594,690
Societe Generale		38,481		2,054,612
Vallourec SA		4,772		950,390
Vivendi		100,220		2,628,703
				27,516,280
Germany – 8.5%
Allianz SE		35,000		4,001,898
Bayer AG		45,800		2,935,568
Bayerische Motoren Werke AG		60,400		2,983,631
Deutsche Bank AG		38,200		2,637,899
E.ON AG		91,100		3,368,846
Common Stocks, continued
	Shares		Value($)
Germany, continued
Muenchener Rueckversicherungs- Gesellschaft AG		5,100		720,030
Thyssenkrupp AG		29,000		942,886
				17,590,758
Hong Kong – 1.5%
Esprit Holdings Ltd.		259,477		1,858,754
New World Development Co. Ltd.		720,509		1,278,015
				3,136,769
India – 0.0%
State Bank of India GDR		450		45,812
Italy – 3.6%
ENI SpA		81,100		1,812,315
Telecom Italia RSP (a)		920,000		1,038,109
Telecom Italia SpA (a)		1,289,400		1,802,496
UniCredit SpA (a)		1,048,600		2,747,742
				7,400,662
Japan – 23.0%
AEON Co. Ltd.		81,200		929,864
Air Water, Inc.		26,000		287,744
Asahi Breweries Ltd.		73,000		1,311,537
Dowa Holdings Co. Ltd.		89,000		494,163
East Japan Railway Co.		11,800		789,473
Elpida Memory, Inc. (a)		47,200		1,005,648
Isuzu Motors Ltd. (a)		382,000		1,215,582
ITOCHU Corp.		179,000		1,551,043
Japan Tobacco, Inc.		743		2,575,237
JFE Holdings, Inc.		44,000		1,569,374
JX Holdings, Inc. (a)		187,000		1,043,314
KDDI Corp.		279		1,345,420
KONAMI Corp.		11,700		227,028
Konica Minolta Holdings, Inc.		48,000		607,259
Mitsubishi Corp.		110,900		2,627,407
Mitsubishi Gas Chemical Co., Inc.		148,000		892,577
Mitsubishi Materials Corp. (a)		245,000		734,465
Mitsui & Co. Ltd.		149,000		2,239,693
Mitsui Fudosan Co. Ltd.		142,000		2,630,156
Murata Manufacturing Co. Ltd.		37,200		2,201,798
NAMCO BANDAI Holdings, Inc.		102,800		1,025,935
NGK Spark Plug Co. Ltd.		66,000		895,726
Nippon Telegraph & Telephone Corp.		63,000		2,564,735
Nissan Motor Co. Ltd. (a)		371,400		3,232,126
Sharp Corp.		134,000		1,735,847
Sony Corp.		59,110		2,024,190
Sumitomo Mitsui Financial Group, Inc.		69,800		2,308,783
Sumitomo Realty & Development Co. Ltd.		27,000		554,100
Takashimaya Co. Ltd.		101,000		957,692
The Furukawa Electric Co. Ltd.		123,000		609,791
The Tokyo Electric Power Co., Inc.		72,700		1,824,800
Tokyo Gas Co. Ltd.		221,000		939,302
Toshiba Corp. (a)		441,000		2,542,570
				47,494,379
Jersey – 0.3%
Informa plc		94,200		568,462

44 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

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

Common Stocks, continued
	Shares		Value($)
Kazakhstan – 0.4%
KazMunaiGas Exploration Production GDR		31,650		773,883
Netherlands – 2.1%
Koninklijke DSM NV		28,200		1,259,455
Randstad Holding NV (a)		60,200		3,049,905
				4,309,360
New Zealand – 0.3%
Telecom Corp. of New Zealand Ltd.		442,923		686,556
Norway – 0.4%
Petroleum Geo-Services ASA (a)		54,750		753,837
Russian Federation – 0.3%
Gazprom OAO ADR		25,100		576,201
South Korea – 2.0%
Hynix Semiconductor, Inc. (a)		40,400		1,022,683
KB Financial Group, Inc. ADR		35,779		1,746,015
Samsung Electronics Co. Ltd., Preferred		2,900		1,370,739
				4,139,437
Spain – 3.2%
Banco Santander SA		325,469		4,137,960
Telefonica SA		106,700		2,414,892
				6,552,852
Sweden – 0.7%
Electrolux AB, B Shares		58,600		1,507,596
Switzerland – 1.6%
Novartis AG		63,940		3,261,026
Taiwan – 1.0%
AU Optronics Corp.		1,134,030		1,306,945
Compal Electronics, Inc.		804		1,118
United Microelectronics Corp. (a)		1,470,000		739,773
				2,047,836
Turkey – 0.7%
Turkiye Garanti Bankasi AS		308,700		1,496,110
United Kingdom – 20.8%
AstraZeneca plc		77,900		3,441,577
BAE Systems plc		248,700		1,303,277
Barclays plc		553,900		2,844,814
BP plc		544,700		4,750,039
Imperial Tobacco Group plc		33,300		948,495
Inchcape plc (a)		1,239,400		648,853
Kazakhmys plc		52,000		1,101,476
Marks & Spencer Group plc		370,600		2,072,053
Old Mutual plc (a)		1,161,500		2,049,562
Rentokil Initial plc (a)		273,400		530,160
Rio Tinto plc		62,900		3,251,424
Rolls-Royce Group plc		289,600		2,551,380
Royal Dutch Shell plc, A Shares		200,987		6,305,823
Thomas Cook Group plc		175,500		665,648
Travis Perkins plc (a)		65,900		850,987
Tui Travel plc		208,700		890,202
Common Stocks, continued
	Shares		Value($)
United Kingdom, continued
Vodafone Group plc		2,629,958		5,826,644
Xstrata plc		181,550		2,977,634
				43,010,048
TOTAL COMMON STOCKS (COST $207,498,152)				201,468,347
Investment Company—1.0%
Northern Institutional Diversified Assets Portfolio, Institutional Shares, 0.01% (b)		2,025,228		2,025,228
TOTAL INVESTMENT COMPANIES (COST $2,025,228)				2,025,228
TOTAL INVESTMENTS (COST $209,523,380) — 98.6%				203,493,575

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

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 45

HSBC INVESTOR INTERNATIONAL EQUITY PORTFOLIO

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

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

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

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

Industry	Percent of Net Assets
Aerospace & Defense	1.9%
Airlines	0.4%
Auto Components	0.4%
Automobiles	3.6%
Beverages	1.6%
Building Products	1.1%
Capital Markets	1.7%
Chemicals	1.2%
Commercial Banks	15.2%
Commercial Services & Supplies	0.3%
Communications Equipment	1.8%
Computers & Peripherals	1.2%
Construction & Engineering	0.5%
Construction Materials	0.1%
Distributors	0.3%
Diversified Financial Services	0.8%
Diversified Telecommunication Services	6.1%
Electric Utilities	3.6%
Electrical Equipment	0.3%
Electronic Equipment, Instruments & Components	1.7%
Energy Equipment & Services	0.8%
Food & Staples Retailing	1.2%
Gas Utilities	0.5%
Hotels, Restaurants & Leisure	0.8%
Household Durables	2.6%
Insurance	3.7%
Leisure Equipment & Products	0.5%
Machinery	0.5%
Media	2.5%
Metals & Mining	6.0%
Investment Companies	1.0%
Multiline Retail	1.5%
Office Electronics	0.3%
Oil, Gas & Consumable Fuels	10.3%
Pharmaceuticals	6.4%
Professional Services	1.5%
Real Estate Investment Trusts (REITS)	0.4%
Real Estate Management & Development	2.2%
Road & Rail	0.4%
Semiconductors & Semiconductor Equipment	2.0%
Software	0.1%
Specialty Retail	0.9%
Tobacco	1.7%
Trading Companies & Distributors	3.5%
Wireless Telecommunication Services	3.5%
Total Investments	98.6%

46 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR OPPORTUNITY PORTFOLIO

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

Common Stocks—96.9%
	Shares		Value($)
Consumer Discretionary – 14.7%
American Eagle Outfitters, Inc.		135,050		2,270,190
Ctrip.com International Ltd. ADR (a)		61,500		2,245,980
DeVry, Inc.		22,550		1,406,895
Discovery Communications, Inc., Class A (a)		56,950		2,203,965
Gentex Corp.		99,000		2,127,510
Hibbett Sports, Inc. (a)		81,550		2,242,625
Hospitality Properties Trust		53,300		1,411,917
O’Reilly Automotive, Inc. (a)		44,200		2,160,938
Scientific Games Corp., Class A (a)		139,700		2,054,987
WMS Industries, Inc. (a)		48,550		2,428,471
				20,553,478
Consumer Staples – 3.4%
Church & Dwight Co., Inc.		33,500		2,319,875
Ralcorp Holdings, Inc. (a)		35,600		2,369,180
				4,689,055
Energy – 11.7%
Consol Energy, Inc.		77,880		3,479,678
Denbury Resources, Inc. (a)		173,900		3,330,185
Ensco International plc ADR		57,700		2,722,286
Exterran Holdings, Inc. (a)		99,800		2,909,170
Massey Energy Co.		105,350		3,858,971
				16,300,290
Financials – 4.7%
Credicorp Ltd.		22,550		1,958,693
First Horizon National Corp. (a)		1		13
Huntington Bancshares, Inc.		93,800		635,026
MSCI, Inc., Class A (a)		43,400		1,503,810
Waddell & Reed Financial, Inc., Class A		68,000		2,524,160
				6,621,702
Health Care – 19.5%
Alexion Pharmaceuticals, Inc. (a)		92,250		5,062,680
Charles River Laboratories International, Inc. (a)		69,400		2,323,512
DaVita, Inc. (a)		48,800		3,046,584
Elan Corp. plc ADR (a)		272,300		1,829,856
Hill-Rom Holdings, Inc.		70,150		2,224,456
IDEXX Laboratories, Inc. (a)		45,200		2,989,528
Illumina, Inc. (a)		33,100		1,385,897
Life Technologies Corp. (a)		47,000		2,571,370
MEDNAX, Inc. (a)		24,237		1,331,581
Mettler-Toledo International, Inc. (a)		25,950		3,256,206
Santarus, Inc. (a)		186,000		610,080
Skilled Healthcare Group, Inc., Class A (a)		103,400		691,746
				27,323,496
Industrials – 14.1%
AMETEK, Inc.		55,600		2,404,700
BE Aerospace, Inc. (a)		108,600		3,226,506
Crane Co.		63,200		2,271,408
IDEX Corp.		74,800		2,513,280
Joy Global, Inc.		27,450		1,559,435
Landstar System, Inc.		47,000		2,078,340
Navigant Consulting, Inc. (a)		125,450		1,615,796
Common Stocks, continued
	Shares		Value($)
Industrials, continued
Waste Connections, Inc. (a)		57,300		2,050,767
WESCO International, Inc. (a)		47,250		1,919,295
				19,639,527
Information Technology – 22.3%
Alliance Data Systems Corp. (a)		45,600		3,422,736
Altera Corp.		73,400		1,861,424
BMC Software, Inc. (a)		66,550		2,619,408
Brocade Communications Systems, Inc. (a)		291,500		1,891,835
Check Point Software Technologies Ltd. (a)		77,250		2,751,645
Citrix Systems, Inc. (a)		44,200		2,077,400
Comverse Technology, Inc. (a)		161,400		1,481,652
LSI Corp. (a)		434,000		2,612,680
Maxim Integrated Products, Inc.		27,150		527,253
Nuance Communications, Inc. (a)		200,250		3,658,567
ON Semiconductor Corp. (a)		156,800		1,244,992
Polycom, Inc. (a)		44,150		1,437,083
Salesforce.com, Inc. (a)		33,075		2,831,220
VeriFone Systems, Inc. (a)		64,500		1,227,435
VeriSign, Inc. (a)		55,950		1,525,756
				31,171,086
Materials – 4.4%
Celanese Corp., Series A		69,100		2,210,509
Compass Minerals International, Inc.		16,800		1,265,208
Crown Holdings, Inc. (a)		104,600		2,719,600
				6,195,317
Telecommunication Services – 2.1%
NII Holdings, Inc. (a)		67,700		2,871,834
TOTAL COMMON STOCKS (COST $113,096,489)				135,365,785
Investment Companies—2.7%
Northern Institutional Government Select Portfolio, Shares Class, 0.04% (b)		3,832,877		3,832,877
TOTAL INVESTMENT COMPANIES (COST $3,832,877)				3,832,877
TOTAL INVESTMENTS (COST $116,929,366) — 99.6%				139,198,662

Percentages indicated are based on net assets of $139,767,158.

ADR	—   American Depositary Receipt
PLC	—   Public Limited Company

(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 47

HSBC INVESTOR VALUE PORTFOLIO

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

Common Stocks—96.7%
	Shares		Value($)
Consumer Discretionary – 4.8%
CBS Corp., Class B		24,450		396,335
Viacom, Inc., Class B (a)		56,500		1,996,145
				2,392,480
Consumer Staples – 7.8%
CVS Caremark Corp.		25,900		956,487
Kimberly-Clark Corp.		19,900		1,219,074
Kroger Co. (The)		28,200		626,886
Philip Morris International, Inc.		22,600		1,109,208
				3,911,655
Energy – 17.0%
Apache Corp.		19,400		1,974,144
Canadian Natural Resources Ltd.		16,000		1,231,040
ConocoPhillips		9,471		560,588
Halliburton Co.		21,500		658,975
Hess Corp.		12,100		768,955
Noble Energy, Inc.		19,500		1,489,800
Occidental Petroleum Corp.		12,000		1,063,920
Talisman Energy, Inc.		46,600		794,064
				8,541,486
Financials – 21.3%
Aon Corp.		38,500		1,634,710
Citigroup, Inc. (a)		277,000		1,210,490
Genworth Financial, Inc., Class A (a)		50,800		839,216
JP Morgan Chase & Co.		22,150		943,147
Loews Corp.		41,240		1,535,778
MetLife, Inc.		42,000		1,914,360
The Hartford Financial Services Group, Inc.		43,900		1,254,223
Wells Fargo & Co.		42,700		1,413,797
				10,745,721
Health Care – 12.9%
Aetna, Inc.		20,800		614,640
Amgen, Inc. (a)		33,700		1,933,032
Merck & Co., Inc.		37,600		1,317,504
Pfizer, Inc.		92,000		1,538,240
Sanofi-Aventis ADR		33,000		1,125,630
				6,529,046
Industrials – 10.3%
Ingersoll-Rand plc		23,900		883,822
Lockheed Martin Corp.		18,400		1,561,976
Pitney Bowes, Inc.		39,500		1,003,300
Raytheon Co.		16,900		985,270
Union Pacific Corp.		10,000		756,600
				5,190,968
Information Technology – 10.1%
CA, Inc.		101,200		2,308,372
Microsoft Corp.		21,700		662,718
Motorola, Inc. (a)		297,700		2,104,739
				5,075,829
Materials – 8.4%
AngloGold Ashanti Ltd. ADR		40,727		1,704,832
Barrick Gold Corp.		48,000		2,090,400
Common Stocks, continued
	Shares		Value($)
Materials, continued
The Mosaic Co.		8,600		439,804
				4,235,036
Telecommunication Services – 2.7%
AT&T, Inc.		26,600		693,196
Verizon Communications, Inc.		22,700		655,803
				1,348,999
Utilities – 1.6%
NRG Energy, Inc. (a)		33,800		816,946
TOTAL COMMON STOCKS (COST $46,296,108)				48,788,166
Investment Companies—3.0%
Northern Institutional Government Select Portfolio, Shares Class, 0.04% (b)		1,485,961		1,485,961
TOTAL INVESTMENT COMPANIES (COST $1,485,961)				1,485,961
TOTAL INVESTMENTS (COST $47,782,069) — 99.7%				50,274,127

Percentages indicated are based on net assets of $50,438,531.

ADR	—   American Depositary Receipt
PLC	—   Public Limited Company

(a)	Represents non-income producing security.
(b)	The rate represents the annualized one-day yield that was in effect on April 30, 2010.

48 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

(This Page Intentionally Left Blank)

HSBC INVESTOR PORTFOLIOS

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

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

50 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

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

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

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 51

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets

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

52 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

Statements of Changes in Net Assets (continued)

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

See notes to financial statements. HSBC INVESTOR PORTFOLIOS 53

HSBC INVESTOR PORTFOLIOS

Financial Highlights

			Ratio/Supplementary Data
	Total Return(a)		Net Assets at End of Period (000’s)			Ratio of Net Expenses to Average Net Assets(b)		Ratio of Net Investment Income (Loss) to Average Net Assets(b)		Ratio of Expenses to Average Net Assets(b)(c)		Portfolio Turnover Rate(a)
GROWTH PORTFOLIO
Year Ended October 31, 2005	13.59	%(d)		$	49,415	0.63	%(d)	0.77	%(d)	0.68	%	79.54	%
Year Ended October 31, 2006	7.53	%			59,828	0.69	%	0.38	%	0.69	%	75.06	%
Year Ended October 31, 2007	31.11	%			89,686	0.62	%	0.45	%	0.62	%	57.04	%
Year Ended October 31, 2008	(37.75	)%(e)			81,942	0.62	%	0.19	%	0.62	%	157.87	%
Year Ended October 31, 2009	19.31	%			88,163	0.69	%	0.17	%	0.69	%	65.67	%
Six Months Ended April 30, 2010 (Unaudited)	15.11	%			92,928	0.67	%	(0.02	)%	0.67	%	42.87	%
INTERNATIONAL EQUITY PORTFOLIO
Year Ended October 31, 2005	19.54	%		$	230,230	0.84	%	1.92	%	0.84	%	31.32	%
Year Ended October 31, 2006	32.79	%			333,755	0.86	%	2.03	%	0.86	%	33.39	%
Year Ended October 31, 2007	25.17	%			455,062	0.79	%	2.16	%	0.79	%	26.08	%
Year Ended October 31, 2008	(51.79	)%			199,309	0.76	%	2.65	%	0.76	%	28.98	%
Year Ended October 31, 2009	24.16	%			217,148	0.88	%	2.23	%	0.88	%	58.31	%
Six Months Ended April 30, 2010 (Unaudited)	1.62	%			206,345	0.86	%	1.19	%	0.86	%	35.03	%
OPPORTUNITY PORTFOLIO
Year Ended October 31, 2005	14.35	%(d)		$	218,778	0.85	%(d)	(0.45	)%(d)	0.90	%	63.95	%
Year Ended October 31, 2006	19.54	%			241,495	0.91	%	(0.40	)%	0.91	%	60.83	%
Year Ended October 31, 2007	30.54	%			224,268	0.91	%	(0.55	)%	0.91	%	69.41	%
Year Ended October 31, 2008	(35.30	)%			127,970	0.87	%	(0.46	)%	0.87	%	80.42	%
Year Ended October 31, 2009	15.41	%			129,748	0.90	%	(0.37	)%	0.90	%	64.91	%
Six Months Ended April 30, 2010 (Unaudited)	24.35	%			139,767	0.88	%	(0.43	)%	0.88	%	26.31	%
VALUE PORTFOLIO
Year Ended October 31, 2005	15.23	%(d)		$	54,150	0.64	%(d)	1.15	%(d)	0.69	%	16.45	%
Year Ended October 31, 2006	22.21	%			67,432	0.71	%	1.23	%	0.71	%	20.63	%
Year Ended October 31, 2007	10.28	%			82,658	0.66	%	1.29	%	0.66	%	18.67	%
Year Ended October 31, 2008	(39.91	)%			49,663	0.64	%	1.54	%	0.64	%	24.61	%
Year Ended October 31, 2009	20.05	%			49,686	0.68	%	1.41	%	0.68	%	19.77	%
Six Months Ended April 30, 2010 (Unaudited)	13.96	%			50,439	0.66	%	0.87	%	0.66	%	14.64	%

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

54 HSBC INVESTOR PORTFOLIOS See notes to financial statements.

HSBC INVESTOR PORTFOLIOS

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

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

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

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

HSBC INVESTOR PORTFOLIOS 55

HSBC INVESTOR PORTFOLIOS

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

	Portfolio may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When the International Equity Portfolio uses such a valuation model, the value assigned to the International Equity Portfolio’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges.
	Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities. Mutual funds are valued at their net asset values, as reported by such companies. Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded. Forward foreign currency contracts are generally valued at the foreign currency exchange rate as of the close of the New York Stock Exchange. Repurchase agreements are valued at original cost.
	Investment Transactions and Related Income:
	Investment transactions are accounted for no later than one business day after trade date. For financial reporting purposes, changes in holdings are accounted for on trade date on the last business day of the reporting period. Investment gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
	Foreign Currency Translation:
	The accounting records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective dates of such transactions. The Portfolios do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.
	Expense Allocations:
	Expenses directly attributable to a Portfolio are charged to that Portfolio. Expenses not directly attributable to a Portfolio are allocated proportionally among various or all funds within the HSBC Investor Family of Funds in relation to net assets or on another reasonable basis.
	Federal Income Taxes:
	Each Portfolio will be treated as a partnership for U.S. Federal income tax purposes. Accordingly, each Portfolio passes through all of its net investment income and gains and losses to its feeder funds, and is therefore not subject to U.S. Federal income tax. As such, investors in the Portfolios will be taxed on their respective share of the Portfolios’ ordinary income and realized gains. It is intended that the Portfolios will be managed in such a way that an investor will be able to satisfy the requirements of the Internal Revenue Code applicable to regulated investment companies.
	Management of the Portfolios has reviewed tax positions taken in tax years that remain subject to examination by all major tax jurisdictions, including federal (i.e., the last four tax year ends and the interim tax period since then, as applicable). Management believes that there is no tax liability resulting from unrecognized tax benefits related to uncertain tax positions taken.
	New Accounting Pronouncements:
	In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements. New disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, while disclosures about purchases, sales, issuances, and settlements in the Level 3 roll forward of activity in fair value measurements is effective for interim and fiscal periods beginning after December 15, 2010. Management is currently evaluating the impact the adoption of this update will have on the Portfolio Trust’s financial statements and related disclosures.
	Derivative Instruments
	All open derivative positions at period end are reflected on the Portfolio’s Schedule of Portfolio Investments. The following is a description of the derivative instruments utilized by the Portfolios, including the primary underlying risk exposures related to each instrument type.
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Notes to Financial Statements—as of April 30, 2010 (Unaudited) (continued)

Foreign Currency Exchange Contracts:

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

Futures Contracts:

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

Summary of Derivative Instruments:

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

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

* Total Fair Value is presented by Primary Risk Exposure. For foreign currency exchange contracts, such amounts represent the unrealized gain/appreciation (for asset derivatives) or loss/depreciation (for liability derivatives).

          The derivative instruments had the following impact on the Statements of Operations for the International Equity Portfolio for the period ended April 30, 2010:

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

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

3. Investment Valuation Summary:

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

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

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

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

4.	Related Party Transactions and Other Agreements:
	Investment Management:

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

          For their services, the Investment Adviser and Winslow Capital Management, Inc. (“Winslow”) receive in aggregate, from the Growth Portfolio, a fee, accrued daily and paid monthly, at an annual rate of:

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

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

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

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

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

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

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

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

Administration:

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

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

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

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

Portfolio Name	Purchases (excluding U.S. Government)		Sales (excluding U.S. Government)
Growth Portfolio	$	37,816,332	$	45,869,435
International Equity Portfolio		72,692,064		87,789,444
Opportunity Portfolio		34,452,098		52,088,364
Value Portfolio		7,090,251		12,990,458
For the period ended April 30, 2010, there were no long-term U.S. Government securities held by the Portfolio Trust.

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

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

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

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

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Investment Adviser Contract Approval (Unaudited)

          Section 15(c) of the Investment Company Act of 1940, as amended (“1940 Act”), generally requires that a mutual fund’s board of trustees, including a majority of trustees who are not parties to the fund’s investment advisory agreement or “interested persons” of the fund, as defined in the 1940 Act (“Independent Trustees”), review and approve the fund’s investment advisory agreement or agreements on an annual basis.

          The Boards of Trustees (collectively, “Board”) of HSBC Investor Funds, HSBC Advisor Funds Trust and HSBC Investor Portfolios (the “Trusts”) and the Contracts and Expense Committee thereof, which consists exclusively of the Independent Trustees of the Trusts (the “Committee”), met in December 2009 to consider: (i) the approval of the continuation of the Investment Advisory Agreements and related Supplements (“Advisory Contracts”) between each of the Trusts and the Adviser and the Investment Sub-Advisory Agreements between the Adviser and each Sub-Adviser (“Sub-Advisory Contracts”) with respect to the operational series of the Trusts (the “Existing Funds”), (ii) the initial approval of the Advisory Contract and of a Sub-Advisory Contract with respect to the HSBC Investor Global Emerging Markets Local Debt Fund and the HSBC Investor Global Emerging Markets Fixed Income Fund (collectively, the “GEM Funds”), each a series of HSBC Investor Funds, and (iii) other ancillary agreements with respect to the Existing Funds and the GEM Funds (collectively, “Funds”) to which the Adviser is a party that provide for different administrative services, such as the Administration Agreement, Support Services Agreement and Operational Support Services Agreement (collectively, the “Agreements”).

          Prior to the meetings, the Trustees requested, received and reviewed the information they thought reasonably necessary to evaluate the terms of the Agreements. This information included, among other things, information about: (i) the services the Adviser and Sub-Advisers provide to the Funds; (ii) personnel who provide such services; (iii) the investment performance for each Existing Fund; (iv) trading practices of the Adviser and Sub-Advisers; (iv) fees received or to be received by the Adviser and Sub-Advisers with respect to each Fund; (v) the total expense ratio of each Existing Fund; (vi) the profitability of the Adviser and certain of the Sub-Advisers; and (vii) compliance-related matters pertaining to the Adviser and Sub-Advisers. Counsel to the Trust and to the Independent Trustees were present at each Committee meeting and the Board meeting. In this regard, counsel to the Independent Trustees advised the Independent Trustees with respect to their deliberations during the process, and all Trustees received advice regarding their fiduciary obligations under Section 15(c) of the 1940 Act.

          On December 4, 2009, the Committee convened and its members reviewed and discussed information provided in advance of and at the meeting, including (among other things): (i) the results of the annual compliance review of the Adviser and Sub-Advisers; (ii) the Funds’ investment performance over varying periods of time; (iii) the fees of the Funds in comparison with other similar funds, based on materials provided by the Adviser from a database compiled by Lipper Inc.; (iv) the nature, quality and extent of and fees paid for administrative services provided by the Adviser; and (v) factors particular to the Funds that are money market funds. At the conclusion of this meeting, the Trustees requested certain additional information from the Adviser, including information about how the Adviser provides administrative services, differences in the advisory services provided to the money market mutual funds and separately managed accounts advised by the Adviser and fees waived by the Adviser with respect to the money market funds.

          The Committee also convened in a meeting held on December 14th and 15th. At this meeting, the Committee reviewed its prior deliberations in light of: (i) the Adviser’s responses to the Committee’s requests for additional information and (ii) presentations from the Adviser and Sub-Advisers, including information about the performance of the Sub-Adviser proposed for the GEM Funds with respect to other accounts it manages, and considered, among other things, the profitability of the Adviser and the performance of the Adviser’s Multimanager Unit. Based on its deliberations, the Committee determined to make a recommendation to the Board of the Trusts to approve or approve the continuation of each Advisory Agreement, as appropriate.

          The Board of the Trusts, including the Independent Trustees, also met in-person on December 14th and 15th, 2009. At this meeting, the Board reviewed and discussed the materials and other information provided by the Adviser and Sub-Advisers and considered the deliberations and recommendation of the Committee. As a result of this process, the Trustees and Independent Trustees determined with respect to each of the Funds, as appropriate: (i) that the initial approval or continuation of the Agreements with respect to the Fund was consistent with the best interests of the Fund and its shareholders and (ii) to approve or approve the continuation of the Agreements with respect to the Fund. The Board and the Independent Trustees made these determinations on the basis of the following considerations, among others:

		Nature, Extent, and Quality of Services Provided by Adviser and Sub-Advisers. The Trustees examined the nature, quality and extent of the investment advisory and administrative support services provided by the Adviser to the
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Investment Adviser Contract Approval (Unaudited) (continued)

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

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

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

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

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

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

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

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

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

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

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Investment Adviser Contract Approval (Unaudited) (continued)

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

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

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

	As a shareholder of the HSBC Investor Portfolios (“Portfolios”), you incur ongoing costs, including management fees and other Portfolio expenses.
	These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds.
	These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from November 1, 2009 through April 30, 2010.
Actual Example
	The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

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

*	Expenses are equal to the average account value over the period multiplied by the Portfolio’s annualized expense ratio, multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year (to reflect the one half year period).
Hypothetical Example for Comparison Purposes
	The table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
	Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), on purchases and redemptions of shares (if applicable). Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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

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

HSBC INVESTOR PORTFOLIOS 65

          Other Information:

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

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

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

66 HSBC INVESTOR PORTFOLIOS

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HSBC INVESTOR FAMILY OF FUNDS:	SHAREHOLDER SERVICING AGENTS
	For HSBC Bank USA, N.A. and
INVESTMENT ADVISER AND ADMINISTRATOR	HSBC Securities (USA) Inc. Clients
HSBC Global Asset Management (USA) Inc.	HSBC Bank USA, N.A.
452 Fifth Avenue	452 Fifth Avenue
New York, NY 10018	New York, NY 10018
	1-888-525-5757
SUB-ADVISERS
HSBC Investor Growth Portfolio	For All Other Shareholders
Winslow Capital Management, Inc.	HSBC Investor Funds
4720 IDS Tower	P.O. Box 182845
80th South Eighth Street	Columbus, OH 43218-2845
Minneapolis, MN 55402	1-800-782-8183
HSBC Investor International Equity Portfolio	TRANSFER AGENT
AllianceBernstein L.P.	Citi Fund Services
1345 Avenue of the Americas, 39th Floor	3435 Stelzer Road
New York, NY 10105	Columbus, OH 43219
HSBC Investor Opportunity Portfolio	DISTRIBUTOR
Westfield Capital Management Company, L.P.	Foreside Distribution Services, L.P.
One Financial Center	690 Taylor Road, Suite 150
Boston, MA 02111	Gahanna, OH 43230-3202
HSBC Investor Value Portfolio	CUSTODIAN
NWQ Investment Management Company,LLC	The Northern Trust Company
2049 Century Park East, 16th Floor	50 South LaSalle Street
Los Angeles, CA 90067	Chicago, IL 60603
	INDEPENDENT REGISTERED PUBLIC
	ACCOUNTING FIRM
	KPMG LLP
	191 West Nationwide Blvd., Suite 500
	Columbus, OH 43215
	LEGAL COUNSEL
	Dechert LLP
	1775 I Street, N.W.
	Washington, D.C. 20006

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

— NOT FDIC INSURED — NO BANK GUARANTEE — MAY LOSE VALUE

HSB-SR-WS 6/10

Item 2.     Code of Ethics.

Not applicable – only for annual reports.

Item 3.     Audit Committee Financial Expert.

Not applicable – only for annual reports.

Item 4.     Principal Accountant Fees and Services.

Not applicable – only for annual reports.

Item 5.     Audit Committee of Listed Registrants.

Not applicable.

Item 6.     Investments.

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

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11.    Controls and Procedures.

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

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

Item 12.    Exhibits.

(a)(1)  Not applicable – Only effective for annual reports.

(a)(2)  Certifications pursuant to Rule 30a-2(a) are attached hereto.

(a)(3)  Not applicable.

(b)     Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)           HSBC INVESTOR PORTFOLIOS

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

Date June 23, 2010

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

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

Date June 23, 2010

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

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