• briefing asia infrastructure aug 15, 2006 • briefing asia energy aug 15, 2006

Investment Allocation Percentage of Investments at Value

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Information Technology 24.3%

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Industrials 18.9%

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Financials 13.7%

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Consumer Discretionary 12.1%

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Health Care 11.0%

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Consumer Staples 8.1%

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Energy 7.3%

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Repurchase Agreements 4.6%

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Total 100.0%

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HSBC Investor Value Portfolio

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Investment Allocation Percentage of Investments at Value

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-------------------------------------------------------------------------------

Financials 28.8%

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Industrials 11.8%

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Energy 11.0%

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Consumer Discretionary 9.0%

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Information Technology 8.9%

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Materials 7.9%

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Consumer Staples 6.6%

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Cash and Equivalents 4.7%

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Telecommunication Services 4.3%

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Utilities 2.1%

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Transportation 2.0%

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Miscellaneous 1.9%

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Health Care 1.0%

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Total 100.0%

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HSBC Investor Growth and Income Fund

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Investment Allocation Percentage of Investments at Value

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Industrials 25.2%

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Consumer Discretionary 20.2%

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Information Technology 13.1%

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Financials 12.9%

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Energy 10.5%

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Health Care 9.1%

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Consumer Staples 4.0%

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Materials 3.4%

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Cash and Equivalents 1.6%

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Total 100.0%

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* Portfolio composition is subject to change.
21 HSBC INVESTOR FAMILY OF FUNDS


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Portfolio Reviews

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Portfolio Composition*

April 30, 2006

(Unaudited)


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HSBC Investor Mid-Cap Fund

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Investment Allocation Percentage of Investments at Value

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Financials 17.3%

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Information Technology 16.7%

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Industrials 15.8%

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Consumer Discretionary 14.7%

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Health Care 11.8%

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Energy 10.2%

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Materials 5.7%

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Utilities 3.3%

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Consumer Staples 3.0%

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Index 0.8%

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Cash and Equivalents 0.4%

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Telecommunication Services 0.3%

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Total 100.0%

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HSBC International Equity Portfolio

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Investment Allocation Percentage of Investments at Value

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Europe 58.8%

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Japan 27.6%

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Australia & Far East 5.9%

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Canada 3.4%

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Other 2.8%

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Cash and Equivalents 1.5%

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Total 100.0%

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HSBC Investor Small Cap Equity Portfolio

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Investment Allocation Percentage of Investments at Value

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HealthCare 26.5%

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Information Technology 22.0%

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Industrials 17.5%

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Energy 12.2%

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Consumer Discretionary 11.0%

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Financial 6.5%

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Cash and Equivalents 3.4%

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Materials 0.9%

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Total 100.0%

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* Portfolio composition is subject to change.
HSBC INVESTOR FAMILY OF FUNDS 22


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HSBC INVESTOR NEW YORK TAX-FREE BOND FUND

--------------------------------------------------------------------------------

SCHEDULE OF PORTFOLIO INVESTMENTS -- APRIL 30, 2006 (UNAUDITED)


---------------------------------------------------------------

MUNICIPAL BONDS -- 96.4%

---------------------------------------------------------------

SHARES OR

PRINCIPAL

AMOUNT($) VALUE($)

--------- ----------
NEW YORK - 88.0%

Buffalo, New York Fiscal Stability

Authority (MBIA Insured), 5.25%,

8/15/13............................... 500,000 539,615

Corning City, New York School District

GO (FSA Insured), 4.00%, 6/15/08...... 930,000 936,203

Corning City, New York School District

GO (FSA Insured), 5.00%, 6/15/09...... 790,000 820,107

Erie County, New York GO (FGIC

Insured), 5.375%, 6/15/07............. 250,000 251,788

Grand Central New York District

Management, 4.00%, 1/1/07............. 400,000 400,536

Metropolitan Transportation Authority

of New York Revenue, 5.25%,

11/15/11.............................. 1,000,000 1,064,940

Metropolitan Transportation Authority

of New York Revenue (FGIC Insured),

5.25%, 7/1/17, Prerefunded 7/1/08 @

100.5................................. 1,145,000 1,187,960

Metropolitan Transportation Authority

of New York Revenue (FGIC Insured),

5.50%, 11/15/19....................... 1,000,000 1,118,940

Metropolitan Transportation Authority

of New York Revenue (FSA Insured),

5.00%, 11/15/32, Callable 11/15/12 @

100................................... 1,625,000 1,665,039

Metropolitan Transportation Authority

of New York Revenue (MBIA Insured),

5.50%, 1/1/19, Callable 7/1/12 @

100................................... 480,000 517,934

Metropolitan Transportation Authority

of New York Revenue, Escrowed to

Maturity, 5.75%, 7/1/13............... 285,000 307,786

Monroe County, New York, Airport

Authority Revenue, AMT (MBIA Insured),

5.625%, 1/1/10........................ 1,240,000 1,306,861

Monroe County, New York, Airport

Authority Revenue, AMT (MBIA Insured),

5.75%, 1/1/14......................... 750,000 815,295

New York City GO, 5.00%, 8/1/08........ 990,000 1,016,888

New York City GO, 5.00%, 12/1/13....... 1,000,000 1,057,030

New York City GO, 5.00%, 8/1/14........ 200,000 211,026

New York City GO, 6.00%, 8/1/14,

Prerefunded 8/1/07 @ 101.............. 945,000 980,768

New York City GO, 6.00%, 8/1/14,

Callable 8/1/07 @ 101................. 55,000 56,918

New York City GO, 5.00%, 8/1/15........ 325,000 342,661

New York City Housing Development Corp.

Revenue, AMT, 5.60%, 11/1/19, Callable

11/1/09 @ 101......................... 100,000 102,914

New York City Industrial Development

Agency (FSA Insured), 5.00%, 11/15/19,

Callable 5/1/13 @ 100................. 1,000,000 1,041,000

New York City Industrial Development

Agency, AMT, 5.00%, 1/1/09............ 1,000,000 1,021,250

New York City Municipal Water Finance

Authority, 5.00%, 6/15/34, Callable

6/15/13 @ 100......................... 1,250,000 1,276,600

New York City Municipal Water Finance

Authority, 5.00%, 6/15/36, Callable

12/15/14 @ 100........................ 1,000,000 1,024,590

New York City Transitional Finance

Authority Revenue, 5.25%, 5/1/17,

Callable 5/1/11 @ 100................. 400,000 421,560

---------------------------------------------------------------

MUNICIPAL BONDS, CONTINUED

---------------------------------------------------------------
SHARES OR

PRINCIPAL

AMOUNT($) VALUE($)

--------- ----------
New York City Transitional Finance

Authority Revenue, 5.25%, 2/1/29,

Callable 2/1/11 @ 100................. 1,540,000 1,621,697

New York City Water & Sewer Systems

(FSA Insured), 5.00%, 6/15/29,

Callable 6/15/15 @ 100................ 1,000,000 1,034,020

New York State Dormitory Authority

Revenue, Columbia University, 5.00%,

7/1/29, Mandatory put 7/1/07 @ 100.... 1,000,000 1,014,340

New York State Dormitory Authority

Revenue, Cooper Union (MBIA Insured),

6.00%, 7/1/19, Callable 7/1/09 @

101................................... 350,000 376,019

New York State Dormitory Authority

Revenue, Department of Health, 5.25%,

7/1/16, Callable 7/1/14 @ 100......... 500,000 531,180

New York State Dormitory Authority

Revenue, Master Boces PG (FSA

Insured), 5.25%, 8/15/19, Callable

8/15/12 @ 100......................... 1,000,000 1,064,050

New York State Dormitory Authority

Revenue, Mental Health, 6.50%,

8/15/11............................... 225,000 251,858
New York State Dormitory Authority

Revenue, Mental Health, 5.50%,

8/15/17, Prerefunded 2/15/07 @ 102.... 15,000 15,507

New York State Dormitory Authority

Revenue, Mental Health, 5.50%,

8/15/17, Partially Prerefunded 2/15/07

@ 102................................. 985,000 1,015,348

New York State Dormitory Authority

Revenue, Mental Health (FGIC Insured),

5.00%, 2/15/15........................ 1,245,000 1,324,618

New York State Dormitory Authority

Revenue, New York Presbyterian

Hospital (AMBAC Insured), 5.50%,

8/1/10................................ 750,000 797,460

New York State Dormitory Authority

Revenue, New York University (AMBAC

Insured), 5.50%, 7/1/18............... 500,000 556,375

New York State Dormitory Authority

Revenue, NYSARC (FSA Insured), 2.00%,

7/1/06................................ 475,000 473,219

New York State Dormitory Authority

Revenue, NYSARC (FSA Insured), 5.25%,

7/1/18, Callable 7/1/12 @ 101......... 1,460,000 1,558,857

New York State Dormitory Authority

Revenue, Rockefeller University,

5.25%, 7/1/13, Callable 7/1/08 @

101................................... 500,000 520,005

New York State Dormitory Authority

Revenue, School District Board

Financing, 5.00%, 7/1/08.............. 595,000 611,244

New York State Dormitory Authority

Revenue, School District Rescue,

5.00%, 4/1/07......................... 500,000 505,115

New York State Dormitory Authority

Revenue, Sloan Kettering Institute

(MBIA Insured), 5.50%, 7/1/23......... 1,300,000 1,465,957

New York State Dormitory Authority,

Personal Income Tax Revenue, 5.00%,

3/15/23, Callable 3/15/15 @ 100....... 1,000,000 1,042,170

New York State Environmental Facscorp.,

5.00%, 6/15/09........................ 1,000,000 1,039,350

New York State Environmental Facscorp.,

5.70%, 1/15/14, Callable 7/15/09 @

101................................... 415,000 442,581

See notes to financial statements. HSBC INVESTOR FAMILY OF FUNDS 24

--------------------------------------------------------------------------------

HSBC INVESTOR NEW YORK TAX-FREE BOND FUND

--------------------------------------------------------------------------------

SCHEDULE OF PORTFOLIO INVESTMENTS -- APRIL 30, 2006 (UNAUDITED) (CONTINUED)


---------------------------------------------------------------

MUNICIPAL BONDS, CONTINUED

---------------------------------------------------------------

SHARES OR

PRINCIPAL

AMOUNT($) VALUE($)

--------- ----------
New York State Environmental Facscorp.,

5.70%, 1/15/14, Prerefunded 7/15/09 @

101................................... 570,000 610,174

New York State Environmental Facscorp.,

5.70%, 1/15/14, Prerefunded 7/15/09 @

101................................... 15,000 16,057

New York State Mortgage Agency Revenue,

AMT, 5.60%, 10/1/14, Callable 9/1/07 @

101.5................................. 1,000,000 1,025,400

New York State Municipal Bond Bank

Revenue (LOC State Aid Withholding),

5.50%, 12/1/12........................ 850,000 922,437

New York State Thruway Authority

Revenue, Highway & Bridge (FGIC

Insured), 5.25%, 4/1/07............... 300,000 304,290

New York State Thruway Authority

Revenue, Highway & Bridge (FGIC

Insured), 5.50%, 4/1/17, Callable

4/1/11 @ 101.......................... 1,000,000 1,089,150

New York State Thruway Authority

Revenue, Highway & Bridge (MBIA

Insured), 5.00%, 4/1/22, Callable

4/1/14 @ 100.......................... 1,000,000 1,040,420

New York State Thruway Authority,

Personal Income Tax Revenue, 5.50%,

3/15/20, Prerefunded 3/15/12 @ 100.... 500,000 544,780

New York State Thruway Authority,

Personal Income Tax Revenue (FSA

Insured), 5.00%, 3/15/13.............. 645,000 684,951

New York State Thruway Authority,

Personal Income Tax Revenue (MBIA

Insured), 5.00%, 3/15/19, Callable

3/15/13 @ 100......................... 1,400,000 1,455,286

New York State Thruway Authority,

Personal Income Tax Revenue (MBIA

Insured), 5.00%, 3/15/21, Callable

3/15/13 @ 100......................... 500,000 518,620

New York State Thruway Authority,

Service Contract Revenue, 5.50%,

4/1/11................................ 1,000,000 1,074,510

New York State Urban Development Corp.

(LOC GO of Corp.), 5.125%, 1/1/22,

Callable 7/1/14 @ 100................. 885,000 924,896

New York State Urban Development Corp.

Revenue, 5.75%, 4/1/12, Prerefunded

4/1/07 @ 102.......................... 1,000,000 1,038,610

New York State Urban Development Corp.

Revenue, 5.75%, 4/1/12................ 500,000 544,910

New York State Urban Development Corp.

Revenue, 5.125%, 1/1/25, Prerefunded

1/1/11 @ 100.......................... 175,000 185,761

New York State Urban Development Corp.

Revenue, Series A (MBIA Insured),

6.50%, 1/1/09......................... 500,000 534,915

New York State Urban Development Corp.

Revenue, Series B (FSA Insured),

5.00%, 3/15/21, Callable 3/15/15

@100.................................. 1,000,000 1,045,160

Onondaga County, New York Water

Authority Revenue (FSA Insured),

5.00%, 9/15/14, Callable 9/15/10 @

101................................... 300,000 317,433

Onondaga County, New York Water

Authority Revenue (FSA Insured),

5.00%, 9/15/15, Callable 9/15/10 @

101................................... 665,000 701,981

Document MFPE000020060712e27a000me
HSBC Investor Intermediate Duration Fixed Income Portfolio (Master) - Part 1
11,499 words

10 July 2006

Mutual Fund Prospectus Express

MFPE

English

(c) 2006 NewRiver Format. Data Licensing LLC. All Rights Reserved.
Family: HSBC Funds
Nasdaq-Symbol: No
Fund Type: OEMMF
Filing: July 10, 2006
Effective: April 30, 2006
Type: Semi-Annual Report
Sequence: 1

Semi-Annual Report

HSBC Investor LifeLine Funds'TM'
April 30, 2006
HSBC Investor Aggressive

Growth Strategy Fund

LifeLine

HSBC Investor Growth

Strategy Fund

It's simple.

HSBC Investor Moderate

Growth Strategy Fund

It's easy.

HSBC Investor Conservative

Growth Strategy Fund

It's affordable.

HSBC Investor Conservative

Income Strategy Fund

HSBC Investor LifeLine Funds
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE

SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY

REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
[HSBC LOGO]

--------------------------------------------------------------------------------

Table of Contents

--------------------------------------------------------------------------------
HSBC Investor Lifeline Funds

Semi Annual Report - April 30, 2006


Chairman's Message ..................................................... 1

Commentary From the Investment Manager ................................. 2

Portfolio Reviews ...................................................... 3

Statements of Assets and Liabilities ...................................20

Statements of Operations ...............................................21

Statements of Changes in Net Assets ....................................22

Financial Highlights ...................................................28

Notes to Financial Statements ..........................................33

Table of Shareholder Expenses ..........................................38

HSBC Investor Portfolios

Schedules of Portfolio Investments

HSBC Investor Intermediate Duration Fixed Income Portfolio .....40

HSBC Investor Core Plus Fixed Income Portfolio .................43

HSBC Investor High Yield Fixed Income Portfolio ................47

HSBC Investor Growth Portfolio .................................49

HSBC Investor Value Portfolio ..................................50

HSBC Investor International Equity Portfolio ...................51

HSBC Investor Small Cap Equity Portfolio .......................55

Statements of Assets and Liabilities ...................................56

Statements of Operations ...............................................58

Statements of Changes in Net Assets ....................................60

Financial Highlights ...................................................64

Notes to Financial Statements ..........................................65