<PAGE>
HSBC INVESTOR
MONEY MARKET FUND
HSBC INVESTOR
U.S. GOVERNMENT
MONEY MARKET FUND
PROSPECTUS
FEBRUARY 29, 2000
AS SUPPLEMENTED
THROUGH SEPTEMBER 11, 2000
HSBC INVESTOR
NEW YORK TAX-FREE
MONEY MARKET FUND
HSBC INVESTOR FAMILY OF FUNDS
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
<PAGE>
--------------------------------------------------------------------------------
HSBC INVESTOR FUNDS TABLE OF CONTENTS
<TABLE>
<S> <C> <C>
[LOGO] RISK/RETURN SUMMARY AND FUND EXPENSES
----------------------------------------------------------------------------------------
Carefully review this 3 HSBC Investor Money Market Fund
important section, which 9 HSBC Investor U.S. Government Money Market Fund
summarizes each Fund's 15 HSBC Investor New York Tax-Free Money Market Fund
investments, risks, past
performance, and fees.
[LOGO] INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
----------------------------------------------------------------------------------------
Review this section for 22 HSBC Investor Money Market Fund
information on investment 23 HSBC Investor U.S. Government Money Market Fund
strategies and risks. 24 HSBC Investor New York Tax-Free Money Market Fund
[LOGO] FUND MANAGEMENT
----------------------------------------------------------------------------------------
Review this section 28 The Investment Adviser
for details on 28 The Distributor and Administrator
the people and
organizations who provide
services to the Funds.
[LOGO] SHAREHOLDER INFORMATION
----------------------------------------------------------------------------------------
Review this section for 29 Pricing of Fund Shares
details on how 30 Purchasing and Adding to Your Shares
shares are valued, and 33 Selling Your Shares
how to purchase, 35 General Policies on Selling Shares
sell and exchange shares. 37 Distribution Arrangements/Sales Charges
This section also describes 41 Exchanging Your Shares
related charges and 42 Dividends, Distributions and Taxes
payments of dividends
and distributions.
[LOGO] FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------------------
Review this section 45 HSBC Investor Money Market Fund
for details on selected 48 HSBC Investor U.S. Government Money Market Fund
financial statements 51 HSBC Investor New York Tax-Free Money Market Fund
of the Funds.
[LOGO] TAX EQUIVALENT YIELD TABLES
----------------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The following is a summary of certain key information about the Funds. You will
find additional information about the Funds, including a detailed description of
the risks of an investment in the Funds, after this summary.
<TABLE>
<S> <C>
HSBC INVESTOR MONEY MARKET FUND
INVESTMENT OBJECTIVE The investment objective of the Money Market
Fund is to provide shareholders of the Fund
with liquidity and as high a level of current
income as is consistent with the preservation
of capital.
PRINCIPAL The Fund seeks to achieve its investment
INVESTMENT STRATEGIES objective by investing the assets of the Fund
in a portfolio of high quality money market
instruments with maturities of 397 days or
less and a dollar-weighted average portfolio
maturity of 90 days or less, and repurchase
agreements with respect to these types of
obligations.
The Fund invests primarily in bank
certificates of deposit, bankers'
acceptances, prime commercial paper,
corporate obligations, municipal obligations,
and U.S. government securities.
The Fund may invest without limit in the
banking industry and in commercial paper and
short-term corporate obligations of financial
institutions.
PRINCIPAL INVESTMENT RISKS AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OF
HSBC BANK USA ('HSBC') AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE
OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS
POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
Market Risk: The Fund's performance per share
will change daily based on many factors,
including the quality of the instruments in
the Fund's investment portfolio, national and
international economic conditions and general
market conditions.
Interest Rate Risk: Changes in interest rates
will affect the yield or value of the Fund's
investments in debt securities. If interest
rates rise, the value of the Fund's
investments may fall. Conversely, if interest
rates fall, the value of the Fund's
investments may rise.
Credit Risk: The Fund could lose money if the
issuer of a fixed income security owned by
the Fund defaults on its financial
obligation.
</TABLE>
3
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
<TABLE>
<S> <C>
WHO MAY WANT TO INVEST? Consider investing in the Fund if you:
Are seeking preservation of capital
Have a low risk tolerance
Are willing to accept lower potential returns
in exchange for a high degree of safety
Are investing for a short-term
This Fund will not be appropriate for anyone:
Seeking high total returns
Pursuing a long-term goal or investing for
retirement
The investment objective and strategies of
the Fund are not fundamental and may be
changed without approval of Fund
shareholders. If there is a change in the
investment objective and strategies of the
Fund, shareholders should consider whether
the Fund remains an appropriate investment in
light of their then current financial
position and needs.
</TABLE>
4
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The bar chart on this page shows the Money Market Fund's annual returns and how
its performance has varied from year to year. The bar chart assumes reinvestment
of dividends and distributions.
The returns for Class B, Class C, Class D and Adviser (Class Y) Shares will
differ from the Class A returns shown in the bar chart because of differences in
expenses of each class.
PERFORMANCE BAR
CHART AND TABLE
Year-by-Year
Total Returns
as of 12/31
for Class A
Shares
1999
4.62%
Of course, past performance does not indicate how
the Fund will perform in the future.
<TABLE>
<S> <C> <C>
Best quarter: Q4 Dec. 99 +1.22%
Worst quarter: Q2 June 99 +1.07
</TABLE>
5
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The table below lists the average annual total return for each class of shares
for various time periods.
AVERAGE ANNUAL
TOTAL RETURNS (for
the periods ended
December 31, 1999)
<TABLE>
<CAPTION>
INCEPTION PAST SINCE
DATE YEAR INCEPTION
---------------------------------------
<S> <C> <C> <C>
CLASS A Nov. 13, 1998 4.62% 4.66%
---------------------------------------
CLASS B
(with applicable CDSC) N/A N/A N/A*
---------------------------------------
CLASS C
(with applicable CDSC) N/A N/A N/A*
---------------------------------------
CLASS D Apr. 1, 1999 N/A N/A'D'
---------------------------------------
ADVISER (CLASS Y) Nov. 12, 1998 4.98% 5.01%
---------------------------------------
LIPPER MONEY MARKET
FUNDS AVERAGE 4.49% 4.49%**
---------------------------------------
</TABLE>
As of December 31, 1999 the 7-day yields of the Fund's Class A, B, C, D and Y
shares were 5.34%, N/A, N/A, 5.50%, and 5.76%, respectively. For current yield
information on the Fund, call 1-800-782-8183. The Money Market Fund's yield
appears in the Wall Street Journal each Thursday.
* Average annual return information is not provided because there were no
Class B or Class C shareholders as of the date of this Prospectus.
'D' Average annual return information is not provided because Class D shares
were outstanding for less than one year.
** Since October 31, 1998.
6
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
MONEY MARKET FUND
As an investor in the Money Market Fund, you may pay the following fees and
expenses if you buy and hold shares of the Fund. Shareholder fees are paid from
your account. Annual Fund operating expenses are paid out of Fund assets, and
are reflected in the share price.
The Fund offers five different types of shares:
CLASS A SHARES (or 'Investor Shares') are offered to the public, customers of
Shareholder Servicing Agents and certain securities brokers on a continuous
basis with no sales charge on purchases.
CLASS B SHARES are not offered for sale but are only offered as an exchange
option. See 'Exchanging Your Shares.'
CLASS C SHARES are primarily offered as an exchange option, see 'Exchanging Your
Shares,' but are also available for purchase by customers of HSBC Bank USA
sweep programs.
CLASS D SHARES (or 'Private Investor Shares') are identical to Class A Shares,
except that Class D Shares are offered only to domestic private banking
clients and are subject to lower operating expenses.
ADVISER (CLASS Y) SHARES are continuously offered for sale only to customers of
Shareholder Servicing Agents. At present, the only Shareholder Servicing Agents
for Class Y Shares are the Fund's Investment Adviser (HSBC) and its affiliates.
FEES AND EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER
FEES
(FEES PAID
DIRECTLY FROM A B C D Y
YOUR INVESTMENT) SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C>
Maximum sales charge (load)
on purchases None None None None None
----------------------------------------------------------------------
Maximum deferred sales
charge (load) on redemptions None 4.00% 1.00% None None
<CAPTION>
ANNUAL FUND
OPERATING
EXPENSES
(EXPENSES THAT
ARE DEDUCTED A B C D Y
FROM FUND ASSETS) SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C>
Management fee 0.20% 0.20% 0.20% 0.20% 0.20%
----------------------------------------------------------------------
Distribution
(12b-1) fee 0.00%* 0.75% 0.75% 0.00%* None
----------------------------------------------------------------------
Shareholder
servicing fees 0.60% 0.25% 0.25% 0.25% None
Other operating expenses 0.18% 0.18% 0.18% 0.18% 0.18%
Total other expenses: 0.78% 0.43% 0.43% 0.43% 0.18%
----------------------------------------------------------------------
Total Fund
operating expenses 0.98% 1.38% 1.38% 0.63% 0.38%
----------------------------------------------------------------------
</TABLE>
The Fund's Statement of Additional Information contains more detailed discussion
of the different classes of shares.
* There are 12b-1 plans for Class A and Class D Shares, which authorize
payments up to .25% of the Fund's assets. To date, no payments under the 12b-1
plans have been made.
7
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. It illustrates the amount of
fees and expenses you would pay, assuming the following:
$10,000 investment
5% annual return
redemption at the end of each period (unless otherwise indicated)
no changes in the Fund's operating expenses
Because this example is hypothetical and for comparison only, your actual costs
may be higher or lower.
EXAMPLE
<TABLE>
<CAPTION>
1 3 5 10
MONEY MARKET FUND YEAR YEARS YEARS YEARS
<S> <C> <C> <C> <C>
CLASS A SHARES $100 $312 $542 $1,201
----------------------------------------------------
CLASS B SHARES
Assuming
Redemption $540 $637 $755 $1,449
Assuming no
Redemption $140 $437 $755 $1,449
----------------------------------------------------
CLASS C SHARES
Assuming
Redemption $240 $437 $755 $1,657
Assuming no
Redemption $140 $437 $755 $1,657
----------------------------------------------------
CLASS D SHARES $ 64 $202 $351 $ 786
----------------------------------------------------
CLASS Y SHARES $ 39 $122 $213 $ 480
----------------------------------------------------
</TABLE>
8
<PAGE>
HSBC Investor Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES The investment objective of the U.S.
Government Money Market Fund is to provide
shareholders of the Fund with liquidity
and as high a level of current income as
is consistent with the preservation of
capital.
PRINCIPAL The Fund seeks to achieve this investment
INVESTMENT STRATEGIES objective by investing in obligations
issued or guaranteed by the U.S.
Government, its agencies or
instrumentalities with maturities of 397
days or less and a dollar-weighted average
portfolio maturity of 90 days or less, and
repurchase agreements with respect to such
obligations.
The Fund invests primarily in issues of
the U.S. Treasury, such as bills, notes
and bonds, and issues of U.S. Government
agencies and instrumentalities established
under the authority of an Act of Congress.
PRINCIPAL AN INVESTMENT IN THE FUND IS NOT A DEPOSIT
INVESTMENT RISKS OF HSBC AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
Market Risk: The Fund's performance per
share will change daily based on many
factors, including national and
international economic conditions and
general market conditions.
Interest Rate Risk: Changes in interest
rates will affect the yield or value of
the Fund's investments in debt securities.
If interest rates rise, the value of the
Fund's investments may fall. Conversely,
if interest rates fall, the value of the
Fund's investments may rise.
Credit Risk: The Fund could lose money if
the issuer of a fixed income security
owned by the Fund defaults on its
financial obligation.
</TABLE>
9
<PAGE>
HSBC Investor U.S. Government Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
<TABLE>
<S> <C>
WHO MAY WANT TO INVEST? Consider investing in the Fund if you:
Are seeking preservation of capital
Have a low risk tolerance
Are willing to accept lower potential
returns in exchange for a high degree of
safety
Are investing for a short-term
This Fund will not be appropriate for
anyone:
Seeking high total returns
Pursuing a long-term goal or investing
for retirement
The investment objective and strategies of
the Fund are not fundamental and may be
changed without approval of Fund
shareholders. If there is a change in the
investment objective and strategies of the
Fund, shareholders should consider whether
the Fund remains an appropriate investment
in light of their then current financial
position and needs.
</TABLE>
10
<PAGE>
HSBC Investor U.S. Government Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The bar chart on this page shows the U.S. Government Money Market Fund's annual
returns and how its performance has varied from year to year. The bar chart
assumes reinvestment of dividends and distributions.
The returns for Class B, Class C, Class D and Adviser (Class Y) Shares will
differ from the returns for Class A Shares shown in the bar chart because of
differences in expenses of each class.
PERFORMANCE BAR
CHART AND TABLE
Year-by-Year
Total Returns
as of 12/31
for Class A
Shares
<TABLE>
<CAPTION> 91 92 93 94 95 96 97 98 99
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5.59% 3.29% 2.78% 3.96% 5.44% 4.84% 4.95% 4.86% 4.30%
</TABLE>
Of course, past performance does not indicate how
the Fund will perform in the future.
<TABLE>
<S> <C> <C>
Best quarter: Q1 March 91 +1.60%
Worst quarter: Q1 March 93 +0.64%
</TABLE>
11
<PAGE>
HSBC Investor U.S. Government Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The table below lists the average annual total return for each class of shares
for various time periods.
AVERAGE ANNUAL
TOTAL RETURNS (for
the periods ended
December 31, 1999)
<TABLE>
<CAPTION>
INCEPTION PAST PAST SINCE
DATE YEAR 5 YEARS INCEPTION
------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A May 3, 1990 4.30% 4.86% 4.67%
------------------------------------------------
CLASS B
(with applicable CDSC) Feb. 2, 1998 3.63% N/A 3.67%
------------------------------------------------
CLASS C
(with applicable CDSC) N/A N/A N/A N/A*
------------------------------------------------
CLASS D Apr. 1, 1999 N/A N/A N/A'D'
------------------------------------------------
ADVISER (CLASS Y) July 1, 1996 4.66% 5.07% 4.78%
------------------------------------------------
LIPPER U.S. GOVERNMENT
MONEY MARKET FUNDS
AVERAGE** 4.44% 4.91% 3.76%
------------------------------------------------
</TABLE>
As of December 31, 1999 the 7-day yields of the Fund's Class A, B, C, D and
Adviser (Class Y) Shares were 4.82%, 4.19%, N/A, 4.97% and 5.24%, respectively.
For current yield information on the Fund, call 1-800-782-8183. The U.S.
Government Money Market Fund's yield appears in the Wall Street Journal each
Thursday.
* Average annual return information is not provided because there were no
Class C shareholders as of the date of this Prospectus.
** Since May 31, 1990.
'D' Average annual return information is not provided because Class D Shares
were outstanding for less than one calendar year. The information in the table
provides some indication of the risks of investing in Class D Shares of the Fund
by comparing the Fund's performance to a broad measure of market performance.
12
<PAGE>
HSBC Investor U.S. Government Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
U.S. GOVERNMENT MONEY MARKET FUND
As an investor in the U.S. Government Money Market Fund, you may pay the
following fees and expenses if you buy and hold shares of the Fund. Shareholder
fees are paid from your account. Annual Fund operating expenses are paid out of
Fund assets, and are reflected in the share price.
The Fund offers five different types of shares:
CLASS A SHARES (or 'Investor Shares') are offered to the public, customers of
Shareholder Servicing Agents and certain securities brokers on a continuous
basis with no sales charge on purchases.
CLASS B SHARES are not offered for sale but are only offered as an exchange
option. See 'Exchanging Your Shares.'
CLASS C SHARES are primarily offered as an exchange option, see 'Exchanging Your
Shares,' but are also available for purchase by customers of HSBC Bank USA
sweep programs.
CLASS D SHARES (or 'Private Investor Shares') are identical to Class A Shares,
except that Class D Shares are offered only to domestic private banking clients
and are subject to lower operating expenses.
ADVISER (CLASS Y) SHARES are continuously offered for sale only to customers of
Shareholder Servicing Agents. At present, the only Shareholder Servicing Agents
for Adviser (Class Y) Shares are the Investment Adviser (HSBC) and its
affiliates.
The Fund's Statement of Additional Information contains more detailed discussion
of the different classes of shares.
FEES AND EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER
FEES
(FEES PAID DIRECTLY
FROM YOUR A B C D Y
INVESTMENT) SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C>
Maximum sales charge
(load) on purchases None None None None None
-------------------------------------------------------------------
Maximum deferred sales
charge (load) on
redemptions None 4.00% 1.00% None None
<CAPTION>
ANNUAL FUND
OPERATING
EXPENSES
(EXPENSES THAT
ARE DEDUCTED A B C D Y
FROM FUND ASSETS) SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C>
Management fee 0.20% 0.20% 0.20% 0.20% 0.20%
-------------------------------------------------------------------
Distribution (12b-1) fee 0.00%* 0.75% 0.75% 0.00%* None
-------------------------------------------------------------------
Shareholder servicing
fees 0.60% 0.25% 0.25% 0.25% None
Other operating
expenses 0.16% 0.16% 0.16% 0.16% 0.16%
Total other expenses: 0.76% 0.41% 0.41% 0.41% 0.16%
-------------------------------------------------------------------
Total Fund operating
expenses 0.96% 1.36% 1.36% 0.61% 0.36%
-------------------------------------------------------------------
</TABLE>
* There are 12b-1 plans for Class A and Class D Shares, which authorize
payments up to .25% of the Fund's assets. To date, no payments under the 12b-1
plans have been made.
13
<PAGE>
HSBC Investor U.S. Government Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. It illustrates the amount of
fees and expenses you would pay, assuming the following:
$10,000 investment
5% annual return
redemption at the end of each period (unless otherwise indicated)
no changes in the Fund's operating expenses
Because this example is hypothetical and for comparison only, your actual costs
may be higher or lower.
EXAMPLE
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET 1 3 5 10
FUND YEAR YEARS YEARS YEARS
<S> <C> <C> <C> <C>
CLASS A SHARES $ 98 $306 $531 $1,178
-----------------------------------------------------
CLASS B SHARES
Assuming
Redemption $538 $631 $745 $1,426
Assuming no
Redemption $138 $431 $745 $1,426
-----------------------------------------------------
CLASS C SHARES
Assuming
Redemption $238 $431 $745 $1,635
Assuming no
Redemption $138 $431 $745 $1,635
-----------------------------------------------------
CLASS D SHARES $ 62 $195 $340 $ 762
-----------------------------------------------------
CLASS Y SHARES $ 37 $116 $202 $ 456
-----------------------------------------------------
</TABLE>
14
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE MONEY
MARKET FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVE The investment objective of the New York
Tax-Free Money Market Fund is to provide
shareholders of the Fund with liquidity
and as high a level of current income that
is exempt from federal, New York State and
New York City personal income taxes as is
consistent with the preservation of
capital.
PRINCIPAL INVESTMENT The Fund seeks to achieve this investment
STRATEGIES objective by investing the assets of the
Fund primarily in a non-diversified
portfolio of short-term, high quality,
tax-exempt money market instruments.
The Fund invests primarily in high-quality
commercial paper, municipal bonds, and
municipal notes, including tax and revenue
authorization notes, tax anticipation
notes, bond anticipation notes and revenue
anticipation notes, that are exempt from
federal, New York State, and New York City
personal income tax.
The Fund may invest more than 25% of the
Fund's assets in participation interests
issued by banks in industrial development
bonds and other Municipal Obligations if
such investments meet the prescribed
quality standards for the Fund (rated AA
or higher by a Nationally Recognized
Statistical Ratings Organization or of
comparable quality).
</TABLE>
15
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
<TABLE>
<S> <C>
PRINCIPAL AN INVESTMENT IN THE FUND IS NOT A DEPOSIT
INVESTMENT RISKS OF HSBC AND IS NOT INSURED OR GUARANTEED
BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
Market Risk: The Fund's performance per
share will change daily based on many
factors, including the quality of the
instruments in the Fund's investment
portfolio, national and international
economic conditions and general market
conditions.
Interest Rate Risk: Changes in interest
rates will affect the yield or value of
the Fund's investments in debt securities.
If interest rates rise, the value of the
Fund's investments may fall. Conversely,
if interest rates fall, the value of the
Fund's investments may rise.
Concentration Risk: Because the Fund will
concentrate its investments in New York
obligations and may invest a significant
portion of its assets in the securities of
a single issuer or sector, the Fund's
assets could lose significant value due to
the poor performance of a single issuer or
sector.
Credit Risk: The Fund could lose money if
the issuer of a fixed income security
owned by the Fund defaults on its
financial obligation.
Historically, New York State and other
issuers of New York Municipal Obligations
have experienced periods of financial
difficulty. Because a significant share of
New York State's economy depends on
financial and business services, any
change in market conditions that adversely
affect these industries could affect the
ability of New York and its localities to
meet their financial obligations. If such
difficulties arise in the future, you
could lose money on your investment.
Tax Risk: The Fund may invest up to 20% of
its total assets in obligations the
interest income on which is subject to
federal, New York State and New York City
personal income tax. In addition,
dividends attributable to interest on
certain municipal obligations may be
included in a shareholder's alternative
minimum taxable income.
</TABLE>
16
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
<TABLE>
<S> <C>
WHO MAY WANT TO INVEST? Consider investing in the Fund if you:
Are seeking tax-free income
Are seeking preservation of capital
Have a low risk tolerance
Are willing to accept lower potential
returns in exchange for a high degree of
safety
Are investing for a short-term
Live in New York
This Fund will not be appropriate for
anyone:
Seeking high total returns
Pursuing a long-term goal or investing
for retirement
Investing through a tax-advantaged
retirement plan
The investment objective and strategies of
the Fund are not fundamental and may be
changed without approval of Fund
shareholders. If there is a change in the
investment objective and strategies of the
Fund, shareholders should consider whether
the Fund remains an appropriate investment
in light of their then current financial
position and needs.
</TABLE>
17
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The bar chart on this page shows the New York Tax-Free Money Market Fund's
annual returns and how its performance has varied from year to year. The bar
chart assumes reinvestment of dividends and distributions.
The returns for Class B, Class C, Class D and Adviser (Class Y) Shares will
differ from the returns for Class A Shares shown in the bar chart because of
differences in expenses of each class.
PERFORMANCE BAR
CHART AND TABLE
Year-by-Year
Total Returns
as of 12/31
for Class A
Shares
<TABLE>
<CAPTION> 95 96 97 98 99
<S> <C> <C> <C> <C>
3.46% 2.94% 3.06% 2.83% 2.43%
</TABLE>
Of course, past performance does not indicate how
the Fund will perform in the future.
<TABLE>
<S> <C> <C>
Best quarter: Q2 June 95 +0.92%
Worst quarter: Q1 Mar. 99 +0.51%
</TABLE>
18
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
The table below lists the average annual total return for each class of shares
for various time periods.
AVERAGE ANNUAL
TOTAL RETURNS (for
the periods
ended December 31,
1999)
<TABLE>
<CAPTION>
INCEPTION PAST PAST SINCE
DATE YEAR 5 YEARS INCEPTION
<S> <C> <C> <C> <C>
CLASS A Nov. 17, 1994 2.43% 2.94% 2.96%
------------------------------------------------
CLASS B
(with applicable CDSC) Apr. 29, 1998 N/A N/A N/A*
------------------------------------------------
CLASS C
(with applicable CDSC) N/A N/A N/A N/A*
------------------------------------------------
CLASS D Apr. 1, 1999 N/A N/A N/A'D'
------------------------------------------------
ADVISER (CLASS Y) July 1, 1996 2.80% 3.14% 3.15%
LIPPER NY TAX EXEMPT MONEY
MARKET FUNDS AVERAGE 2.63% 2.94% 2.95%**
----------------------------------------------------------------------------
</TABLE>
As of December 31, 1999 the 7-day yields of the Fund's Class A, B, C, D and Y
shares were 3.66%, N/A, N/A, 3.82% and 4.08%, respectively. As of December 31,
1999 the 7-day tax-equivalent yields of the Fund's Class A, B, C, D and Y shares
were 6.06%, N/A, N/A, 6.33% and 6.76%, respectively. For current yield
information on the Fund, call 1-800-782-8183. The New York Tax-Free Money Market
Fund's yield appears in the Wall Street Journal each Thursday.
* Average annual return information is not provided because there were no
Class B or Class C shareholders as of the date of this Prospectus.
** Since November 30, 1994.
'D' Average annual return information is not provided because Class D shares
were outstanding for less than one Calendar year. The information in the table
provides some indication of the risks of investing in Class D Shares of the Fund
by comparing performance to a broad measure of market performance.
19
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
NEW YORK TAX-FREE MONEY MARKET FUND
As an investor in the New York Tax-Free Money Market Fund, you may pay the
following fees and expenses if you buy and hold shares of the Fund. Shareholder
fees are paid from your account. Annual Fund operating expenses are paid out of
Fund assets, and are reflected in the share price.
The Fund offers five different types of shares:
CLASS A SHARES (or 'Investor Shares') are offered to the public, customers of
Shareholder Servicing Agents and certain securities brokers on a continuous
basis with no sales charge on purchases.
CLASS B SHARES are not offered for sale but are only offered as an exchange
option. See 'Exchanging Your Shares.'
CLASS C SHARES are primarily offered as an exchange option, see 'Exchanging Your
Shares,' but are also available for purchase by customers of HSBC Bank USA
sweep programs.
CLASS D SHARES (or 'Private Investor Shares') are identical to Class A Shares,
except that Class D Shares are offered only to domestic private banking clients
and are subject to lower operating expenses.
ADVISER (CLASS Y) SHARES are continuously offered for sale only to customers of
Shareholder Servicing Agents. At present, the only Shareholder Servicing Agents
for Adviser (Class Y) Shares are the Investment Adviser (HSBC) and its
affiliates.
The Fund's Statement of Additional Information contains more detailed discussion
of the different classes of shares.
FEES AND EXPENSES
<TABLE>
<CAPTION>
SHAREHOLDER
FEES
(FEES PAID
DIRECTLY FROM A B C D Y
YOUR INVESTMENT) SHARES SHARES SHARES SHARES SHARES
<S> <C> <C> <C> <C> <C>
Maximum sales
charge (load) on
purchases None None None None None
--------------------------------------------------------------
Maximum
deferred sales
charge (load)
on redemptions None 4.00% 1.00% None None
ANNUAL FUND
OPERATING
EXPENSES
(EXPENSES THAT
ARE DEDUCTED A B C D Y
FROM FUND ASSETS) SHARES SHARES SHARES SHARES SHARES
Management fee 0.15% 0.15% 0.15% 0.15% 0.15%
--------------------------------------------------------------
Distribution
(12b-1) fee 0.00%* 0.75% 0.75% 0.00%* None
--------------------------------------------------------------
Shareholder
servicing fees 0.60% 0.25% 0.25% 0.25% None
Other
operating
expenses 0.22% 0.22% 0.22% 0.22% 0.22%
Total other
expenses: 0.82% 0.47% 0.47% 0.47% 0.22%
--------------------------------------------------------------
Total Fund
operating
expenses 0.97% 1.37% 1.37% 0.62% 0.37%
--------------------------------------------------------------
</TABLE>
* There are 12b-1 plans for Class A and Class D Shares, which authorize
payments up to .25% of the Fund's assets. To date, no payments under the 12b-1
plans have been made.
20
<PAGE>
HSBC Investor New York Tax-Free Money Market Fund
Risk/Return Summary and Fund Expenses [LOGO]
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. It illustrates the amount of
fees and expenses you would pay, assuming the following:
$10,000 investment
5% annual return
redemption at the end of each period (unless otherwise indicated)
no changes in the Fund's operating expenses
Because this example is hypothetical and for comparison only, your actual costs
may be higher or lower.
EXAMPLE
<TABLE>
<CAPTION>
NEW YORK TAX-FREE 1 3 5 10
MONEY MARKET FUND YEAR YEARS YEARS YEARS
<S> <C> <C> <C> <C>
CLASS A SHARES $ 99 $309 $536 $1,190
----------------------------------------------------
CLASS B SHARES
Assuming Redemption $539 $634 $750 $1,437
Assuming no
Redemption $139 $434 $750 $1,437
----------------------------------------------------
CLASS C SHARES
Assuming Redemption $239 $434 $750 $1,646
Assuming no
Redemption $139 $434 $750 $1,646
----------------------------------------------------
CLASS D SHARES $ 63 $199 $346 $ 774
----------------------------------------------------
CLASS Y SHARES $ 38 $119 $208 $ 468
----------------------------------------------------
</TABLE>
21
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
HSBC INVESTOR MONEY MARKET FUND
<TABLE>
<S> <C> <C> <C>
TICKER CLASS A: REAXX CLASS B: RMMBX CLASS C: RMMCX
SYMBOLS: CLASS D: N/A CLASS Y: RMYXX
</TABLE>
INVESTMENT OBJECTIVE, POLICIES AND STRATEGY
The investment objective of the Money Market Fund is to provide shareholders of
the Fund with liquidity and as high a level of current income as is consistent
with the preservation of capital.
The Money Market Fund seeks to achieve this investment objective by investing in
a portfolio of high quality debt obligations with maturities of 397 days or less
and a dollar-weighted average portfolio maturity of 90 days or less, and
repurchase agreements with respect to these types of obligations. The Fund
primarily invests in bank certificates of deposit, bankers' acceptances, prime
commercial paper, corporate obligations and U.S. government securities.
Consistent with its investment objective, the Money Market Fund:
will attempt to maximize yields by portfolio trading and by buying and
selling portfolio investments in anticipation of or in response to changing
economic and money market conditions and trends.
will invest to take advantage of temporary disparities in yields of different
segments of the high-grade money market or among particular instruments
within the same segment of the market.
may invest without limit in commercial paper of foreign issuers and in bank
certificates of deposit and bankers' acceptances payable in U.S. dollars and
issued by foreign banks or by foreign branches of U.S. banks.
may invest without limit in the banking industry and in commercial paper and
short-term corporate obligations of issuers in the personal credit
institution and business credit institution industries. The Fund will invest
no more than 25% of its assets in such obligations and may do so only when,
in the opinion of the Fund's investment adviser, the yield, marketability and
availability of investments in those industries justify any additional risks
associated with the concentration of the Fund's assets in those industries.
may lend portfolio securities amounting to not more than 25% of its assets to
broker-dealers. These transactions will be fully collateralized at all times
with cash and short-term high-quality debt obligations.
22
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
<TABLE>
<S> <C> <C> <C>
TICKER CLASS A: FTRXX CLASS B: RUGXX CLASS C: RUSMX
SYMBOLS: CLASS D: N/A CLASS Y: RGYXX
</TABLE>
INVESTMENT OBJECTIVE, POLICIES AND STRATEGY
The investment objective of the U.S. Government Money Market Fund is to provide
shareholders of the Fund with liquidity and as high a level of current income as
is consistent with the preservation of capital.
The U.S. Government Money Market Fund seeks to achieve this investment objective
by investing at least 65% of the assets of the Fund in obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities with
maturities of 397 days or less and a dollar-weighted average portfolio maturity
of 90 days or less, and repurchase agreements with respect to these types of
obligations.
Consistent with its investment objective, the U.S. Government Money Market Fund
will invest in:
* issues of the U.S. Treasury, such as bills, notes and bonds.
* issues of U.S. Government agencies and instrumentalities established under
the authority of an Act of Congress, including obligations:
supported by the 'full faith and credit' of the United States (e.g.,
obligations guaranteed by the Export-Import Bank of the United States).
supported by the right of the issuer to borrow from the U.S. Treasury
(e.g., obligations of the Federal National Mortgage Association).
supported only by the credit of the agency or instrumentality (e.g.,
obligations of the Student Loan Marketing Association).
23
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE MONEY MARKET FUND
<TABLE>
<S> <C> <C> <C>
TICKER CLASS A: RNTXY CLASS B: RNYXX CLASS C: RTFMX
SYMBOLS: CLASS D: N/A CLASS Y: RYYXX
</TABLE>
INVESTMENT OBJECTIVE, POLICIES AND STRATEGY
The investment objective of the New York Tax-Free Money Market Fund is to
provide shareholders of the Fund with liquidity and as high a level of current
income exempt from federal, New York State and New York City personal income
taxes as is consistent with the preservation of capital.
The New York Tax-Free Money Market Fund seeks to achieve this investment
objective by investing the assets of the Fund primarily in a non-diversified
portfolio of short-term, high quality, tax-exempt money market instruments with
maturities of 397 days or less and a dollar-weighted average portfolio maturity
of 90 days or less.
The Fund will primarily invest in municipal bonds, notes and commercial paper
issued by or on behalf of the State of New York and its authorities, agencies,
instrumentalities and political subdivisions, and in participation interests
issued by banks, insurance companies or other financial institutions with
respect to these types of obligations.
Consistent with its investment objective, the New York Tax-Free Money Market
Fund:
will invest at least 80% of its assets in tax-exempt obligations and at least
65% of the Fund's assets in New York Municipal Obligations (however, market
conditions may from time to time limit the availability of these
obligations).
may invest up to 20% of the Fund's total assets in obligations the interest
income on which is subject to federal, New York State, and New York City
personal income tax.
may invest in taxable securities (such as U.S. Government obligations or
certificates of deposit of domestic banks), but only if such securities are
of comparable quality and credit risk with the Municipal Obligations
described above.
may invest more than 25% of the Fund's assets in participation interests
issued by banks in industrial development bonds and other Municipal
Obligations if such investments meet the prescribed quality standards for the
Fund.
may acquire stand-by commitments from banks with respect to municipal
obligations purchased on behalf of the Fund. The Fund intends to acquire the
stand-by commitments to facilitate portfolio liquidity and does not intend to
exercise its rights thereunder for trading purposes.
24
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
GENERAL RISK FACTORS: ALL MONEY MARKET FUNDS
The Funds expect to maintain a net asset value of $1.00 per share, but there is
no assurance that the Funds will be able to do so on a continuous basis. The
Funds' performance per share will change daily based on many factors, including
fluctuation in interest rates, the quality of the instruments in each Fund's
investment portfolio, national and international economic conditions and general
market conditions.
An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. Shares of a Fund are not deposits or obligations of, or guaranteed
or endorsed by, HSBC or any other bank, and the Shares are not federally insured
by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency.
There can be no assurance that the investment objectives of each Fund will be
achieved. In addition, each Fund's investment policies, as well as the
relatively short maturity of obligations purchased by the Funds, may result in
frequent changes in each Fund's portfolio, which may give rise to taxable gains
and reduce investment returns.
The Funds may also be subject to credit risks. The Funds could lose money if the
issuer of a security owned by the Fund is unable to meet its financial
obligations.
YEAR 2000
Like other funds and business organizations around the world, each Fund and its
service providers rely heavily on computer systems that use date fields. The
Funds could be adversely affected if the computer systems used by the Funds and
their service providers do not properly process and calculate date-related
information for the year 2000 and beyond (the 'Year 2000 Issue'). As of the date
of this Prospectus, the Year 2000 has not resulted in any adverse consequences
to the Funds, but there is no assurance that the Year 2000 Issue will not cause
problems in the future.
The Funds and their service providers have taken steps to minimize risks to
services critical to the Funds' operations associated with Year 2000 Issues.
25
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
The Funds currently have no reason to believe that the Year 2000 will have a
material adverse effect on their business or operations but complications as yet
unidentified may occur. The Funds will continue to closely monitor developments
relating to the Year 2000 Issue.
SPECIFIC RISK FACTORS: MONEY MARKET FUND
The Money Market Fund may invest in U.S. dollar-denominated foreign securities.
Foreign investments subject the Fund to investment risks different from those
associated with domestic investments. Foreign investments may be riskier than
U.S. investments because of unstable international political and economic
conditions, foreign controls on investment, withholding taxes, or a lack of
adequate company information or government regulation.
SPECIFIC RISK FACTORS: NEW YORK TAX-FREE MONEY MARKET FUND
Because this Fund will concentrate its investments in New York and may
concentrate a significant portion of its assets in the securities of a single
issuer or sector, investment in this Fund may pose investment risks greater than
those posed by a more broadly diversified portfolio. Consequently, unlike a more
diversified portfolio, the value of the Fund's assets could lose significant
value due to the poor performance of a single issuer or sector.
The Fund may also be subject to credit risks. Historically, New York State and
other issuers of New York Municipal Obligations have experienced periods of
financial difficulty. Because a significant share of New York State's economy
depends on financial and business services, any change in market conditions that
adversely affect these industries could affect the ability of New York and its
localities to meet its financial obligations. The financial stability of New
York State is closely related to the financial stability of its localities,
particularly New York City, which has required and continues to require
significant financial assistance from New York State. To the extent that New
York City and other New York localities require the State's assistance, the
ability of the State to meet its own obligations as they come due or to obtain
additional financing could be adversely affected. If this occurs, you could lose
money on your investment.
26
<PAGE>
Investment Objectives, Strategies and Risks [LOGO]
The purchase of participation interests may involve the risk that the Fund will
not be deemed to be the owner of the underlying Municipal Obligation for
purposes of the ability to claim tax exemption of interest paid thereon.
The Fund may invest to a limited degree in stand-by commitments. Stand-by
commitments are also subject to certain risks, which include the ability of the
issuer to pay when the commitment is exercised, the fact that the commitment is
not marketable, and the fact that the maturity of the underlying obligation
generally differs from that of the commitment.
While the interest on bonds issued to finance essential state and local
government operations is generally exempt from federal income tax, dividends
attributable to interest on certain municipal bonds may be treated as a tax
preference item for purposes of the alternative minimum tax. Such dividends may
result in (or may increase) shareholder liability for the alternative minimum
tax.
27
<PAGE>
Fund Management [LOGO]
THE INVESTMENT ADVISER
HSBC Bank USA ('HSBC'), 452 Fifth Avenue, New York, New York 10018, is the
investment adviser for the Funds, pursuant to an Investment Advisory Contract
with the HSBC Investor Funds. HSBC is a wholly owned subsidiary of HSBC USA,
Inc., a registered bank holding company. HSBC currently provides investment
advisory services for individuals, trusts, estates and institutions. HSBC
manages more than $80 billion in assets, including $3.2 billion in the HSBC
Investor Family of Funds.
Through its portfolio management team, HSBC makes the day-to-day investment
decisions and continuously reviews, supervises and administers the Funds'
investment programs.
For these advisory services, the Funds are paid a management fee as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF
AVERAGE NET ASSETS
AS OF 10/31/99
<S> <C>
--------------------
MONEY MARKET FUND .20%
--------------------
U.S. GOVERNMENT MONEY MARKET FUND .20%
--------------------
NEW YORK TAX-FREE MONEY MARKET FUND .15%
--------------------
</TABLE>
THE DISTRIBUTOR AND ADMINISTRATOR
BISYS Fund Services ('BISYS'), whose address is 3435 Stelzer Road, Columbus,
Ohio 43219-3035, serves as the Fund's administrator (the 'Administrator').
Management and administrative services of BISYS include providing office space,
equipment and clerical personnel to the Fund and supervising custodial,
auditing, valuation, bookkeeping, legal and dividend disbursing services.
BISYS also serves as the distributor (the 'Distributor') of the Fund's shares.
BISYS may provide financial assistance to the Funds in connection with pre-
approved seminars, conferences and advertising to the extent permitted by
applicable state or self-regulatory agencies, such as the National Association
of Securities Dealers.
The Statement of Additional Information has more detailed information about the
Adviser, Distributor and Administrator, and other service providers.
28
<PAGE>
Shareholder Information [LOGO]
PRICING OF FUND SHARES
------------------------
HOW NAV IS CALCULATED
The NAV for each class of shares is calculated by dividing the total value of a
Fund's investments and other assets attributable to a class, less any
liabilities, by the total number of outstanding shares of that class:
----------------------------
NAV =
----------------------------
Total Assets - Liabilities
Number of Shares
Outstanding
---------------------------
MONEY MARKET FUNDS
The net asset value per share (NAV) of the Money Market Fund, the U.S.
Government Money Market Fund, and the New York Tax-Free Money Market Fund
(collectively, the 'Money Market Funds' or 'Funds') is determined daily at the
close of regular trading on the New York Stock Exchange, normally at 4 p.m.
Eastern time on days the Exchange is open. The New York Stock Exchange is open
every weekday except for the days on which national holidays are observed.
The Funds value their securities at their amortized cost. This method involves
valuing an instrument at its cost and thereafter applying a constant
amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the market value of the investment.
Your order for purchase, sale or exchange of shares is priced at the next NAV
calculated after your order is received by the Fund (whether by mail, overnight
service, or telephone). This is what is known as the offering price. If you sell
Class B Shares or Class C Shares, a contingent deferred sales load may apply,
which would reduce the amount of money paid to you by the Fund, as noted in the
section on 'Distribution Arrangements/Sales Charges.'
29
<PAGE>
Shareholder Information [LOGO]
PURCHASING AND ADDING TO YOUR SHARES
You may purchase Funds through the HSBC Investor Funds Distributor or through
banks, brokers and other investment representatives, which may charge additional
fees and may require higher minimum investments or impose other limitations on
buying and selling shares. If you purchase shares through an investment
representative, that party is responsible for transmitting orders by close of
business and may have an earlier cut-off time for purchase and sale requests.
Consult your investment representative or institution for specific information.
<TABLE>
<CAPTION>
MINIMUM
INITIAL MINIMUM
ACCOUNT TYPE INVESTMENT SUBSEQUENT
CLASS A AND
CLASS D SHARES
<S> <C> <C>
----------------------------------------------
Regular $ 1,000 $ 100
(non-retirement)
----------------------------------------------
Retirement (IRA) $ 250 $ 100
----------------------------------------------
Automatic
Investment Plan $ 250 $ 25
----------------------------------------------
CLASS Y SHARES* $1,000,000 N/A
----------------------------------------------
</TABLE>
* HSBC clients that maintain an investment management account are not subject
to the minimum initial investment requirements.
All purchases must be in U.S. dollars. A fee will be charged for any checks that
do not clear. Third-party checks are not accepted.
A Fund may waive its minimum purchase requirement, and the Distributor may
reject a purchase order if the Distributor considers it in the best interest
of the Fund and its shareholders.
Class B Shares of the Funds are not offered for sale but are only offered as an
exchange option for Class B Shareholders of the Trust's other investment
portfolios.
Class C Shares are primarily offered as an exchange option, see 'Exchanging Your
Shares,' but are also available for purchase by customers of HSBC Bank USA
sweep programs.
--------------------------------------------------------------------------------
AVOID 31% TAX WITHHOLDING
The Funds are required to withhold 31% of taxable dividends, capital gains
distributions and redemptions paid to shareholders who have not provided the
Funds with their certified taxpayer identification number in compliance with IRS
rules, or if you have been notified by the IRS that you are subject to backup
withholding. Backup withholding is not an additional tax; rather, it is a way in
which the IRS ensures it will collect taxes otherwise due. Any amounts withheld
may be credited against your U.S. federal income tax liability. To avoid tax
withholding, make sure you provide your correct Tax Identification Number
(Social Security Number for most investors) on your account application.
--------------------------------------------------------------------------------
30
<PAGE>
Shareholder Information [LOGO]
PURCHASING AND ADDING TO YOUR SHARES
CONTINUED
INSTRUCTIONS FOR OPENING OR ADDING TO AN ACCOUNT
BY REGULAR MAIL OR BY OVERNIGHT SERVICE
Initial Investment:
If purchasing through your financial advisor or brokerage account, simply tell
your advisor or broker that you wish to purchase shares of the Funds and he or
she will take care of the necessary documentation. For all other purchases,
follow the instructions below.
1. Carefully read, complete, and sign the account application. Establishing your
account privileges now saves you the inconvenience of having to add them
later.
2. Make check, bank draft or money order payable to 'HSBC Investor Funds' and
include the name of the appropriate Fund(s) on the check.
Mail to: HSBC Investor Funds, PO Box 182845, Columbus, Ohio 43218-2845.
Subsequent:
1. Use the investment slip attached to your account statement.
Or, if unavailable,
2. Include the following information in writing:
Fund name
Share class
Amount invested
Account name
Account number
Include your account number on your check.
-------------------------------
ELECTRONIC VS. WIRE TRANSFER
Wire transfers allow financial
institutions to send funds to
each other, almost
instantaneously. With an
electronic purchase or sale, the
transaction is made through the
Automated Clearing House (ACH)
and may take up to eight days to
clear. There is generally no fee
for ACH transactions.
-------------------------------
3. Mail investment slip and check to: HSBC Investor Funds, PO Box 182845,
Columbus, Ohio 43218-2845.
ELECTRONIC PURCHASES
Your bank must participate in the Automated Clearing House (ACH) and must be a
United States Bank. Your bank or broker may charge for this service.
Establish electronic purchase option on your account application or call
1-800-782-8183. Your account can generally be set up for electronic purchases
within 15 days.
Call 1-800-782-8183 to arrange a transfer from your bank account.
BY WIRE TRANSFER
For information on how to request a wire transfer, call 1-800-782-8183.
31
<PAGE>
Shareholder Information [LOGO]
PURCHASING AND ADDING TO YOUR SHARES
CONTINUED
AUTOMATIC INVESTMENT PLAN
You can make automatic investments in the Funds from your bank account, through
payroll deduction or from your federal employment, Social Security or other
regular government checks. Automatic investments can be as little as $25, once
you've invested the $250 minimum required to open the account.
To invest regularly from your bank account:
Complete the Automatic Investment Plan portion on your Account Application.
Make sure you note:
Your bank name, address and account number
The amount you wish to invest automatically (minimum $25)
How often you want to invest (every month, 4 times a year, twice a year or
once a year)
Attach a voided personal check.
To invest regularly from your paycheck or government check:
Call 1-800-782-8183 for an enrollment form.
-------------------------------------
DIRECTED DIVIDEND OPTION
By selecting the appropriate box in
the Account Application, you can
elect to receive your distributions
in cash (check) or have
distributions (capital gains and
dividends) reinvested in another
HSBC Investor Fund without a sales
charge. You must maintain the
minimum balance in each Fund into
which you plan to reinvest dividends
or the reinvestment will be
suspended and your dividends paid to
you. The Fund may modify or
terminate this reinvestment option
without notice. You can change or
terminate your participation in the
reinvestment option at any time.
------------------------------------
DIVIDENDS AND DISTRIBUTIONS
All dividends and distributions will be automatically reinvested unless you
request otherwise. There are no sales charges for reinvested distributions.
Dividends are higher for Class A Shares than for Class B and Class C Shares,
because Class A Shares have lower operating expenses. Class D Shares receive a
higher dividend than Class A Shares because Class D Shares have lower operating
expenses. Adviser (Class Y) Shares receive the highest dividends because they
have the lowest operating expenses. Capital gains are distributed at least
annually.
Distributions are made on a per share basis regardless of how long you've owned
your shares. Therefore, if you invest shortly before the distribution date, some
of your investment will be returned to you in the form of a distribution, which
may be taxable.
32
<PAGE>
Shareholder Information [LOGO]
You may sell your shares at any
time. Your sales price will be
the next NAV after your sell
order is accepted by the Fund,
its transfer agent, or your
investment representative.
Normally you will receive your
proceeds within a week after
your request is received. See
section on 'General Policies on
Selling Shares' below.
SELLING YOUR SHARES
--------------------------------------
WITHDRAWING MONEY FROM YOUR FUND
INVESTMENT
As a mutual fund shareholder, you are
technically selling shares when you
request a withdrawal in cash. This is
also known as redeeming shares or a
redemption of shares.
------------------------------------
CONTINGENT DEFERRED SALES CHARGE
When you sell Class B or C shares,
you will be charged a fee for any
shares that have not been held for a
sufficient length of time. These fees
will be deducted from the money paid
to you. See the sections on
'Distribution Arrangements/Sales
Charges' and 'Exchanging your Shares'
below for details.
INSTRUCTIONS FOR SELLING SHARES
If selling your shares through your financial adviser or broker, ask him or her
for redemption procedures. Your adviser and/or broker may have transaction
minimums and/or transaction times that will affect your redemption. For all
other sales transactions, follow the instructions below.
BY TELEPHONE
(unless you have declined telephone sales privileges)
1. Call 1-800-782-8183 with instructions as to how you wish to receive your
funds (mail, wire, electronic transfer). (See 'General Policies on
Selling Shares -- Verifying Telephone Redemptions' below)
BY MAIL OR OVERNIGHT SERVICE
(See 'General Policies on Selling Shares -- Redemptions in Writing Required'
below)
1. Call 1-800-782-8183 to request redemption forms or write a letter of
instruction indicating:
your Fund and account number
amount you wish to redeem
address where your check should be sent
account owner signature
2. Mail to: HSBC Investor Funds, PO Box 182845, Columbus, Ohio 43218-2845.
33
<PAGE>
Shareholder Information [LOGO]
SELLING YOUR SHARES
CONTINUED
WIRE TRANSFER
You must indicate this option on your account application.
Call 1-800-782-8183 to request a wire transfer.
If you call by 12:00 p.m. Eastern time, your payment will normally be wired to
your bank on the same business day. If you call by 4 p.m. Eastern time, your
payment will normally be wired to your bank on the next business day. Otherwise,
it will normally be wired on the second business day after your call.
The Fund may charge a wire transfer fee.
NOTE: Your financial institution may also charge a separate fee.
ELECTRONIC REDEMPTIONS
Call 1-800-782-8183 to request an electronic redemption.
Your bank must participate in the Automated Clearing House (ACH) and must be a
U.S. bank.
If you call by 12:00 p.m. Eastern time, the NAV of your shares will normally be
determined on the same day and the proceeds credited within 7 days.
Your bank may charge for this service.
SYSTEMATIC WITHDRAWAL PLAN
You can receive automatic payments from your account on a monthly, quarterly,
semi-annual or annual basis. The minimum withdrawal is $50. To activate this
feature:
Make sure you've checked the appropriate box on the Account Application, or
call 1-800-782-8183.
Include a voided personal check.
Your account must have a value of $10,000 or more to start withdrawals.
If the value of your account falls below $1,000, you may be asked to add
sufficient funds to bring the account back to $1,000, or the Fund may close
your account and mail the proceeds to you.
34
<PAGE>
Shareholder Information [LOGO]
SELLING YOUR SHARES
CONTINUED
CHECK REDEMPTION SERVICE
You may write checks in amounts of $250 or more on your account in the Money
Market Funds. To obtain checks, complete the signature card section of the
Account Application or contact the Funds to obtain a signature card. Dividends
and distributions will continue to be paid up to the day the check is presented
for payment. The check writing feature may be modified or terminated upon
30-days written notice. You may not close your Money Market Fund account by
writing a check.
REDEMPTIONS IN WRITING REQUIRED
You must request redemption in writing in the following situations:
1. Redemptions from Individual Retirement Accounts ('IRAs').
2. Redemption requests requiring a signature guarantee, which include [any] of
the following:
Redemptions over $10,000;
Your account registration or the name(s) on your account has changed within
the last 15 days;
The check is not being mailed to the address on your account;
The check is not being made payable to the owner of the account; or
The redemption proceeds are being transferred to another Fund account with a
different registration.
You must obtain a signature guarantee from members of the STAMP (Securities
Transfer Agents Medallion Program), MSP (New York Stock Exchange Signature
Program) or SEMP (Stock Exchanges Medallion Program). Members are subject to
dollar limitations that must be considered when requesting their guarantee. The
Transfer Agent may reject any signature guarantee if it believes the transaction
would otherwise be improper.
VERIFYING TELEPHONE REDEMPTIONS
The Funds make every effort to insure that telephone redemptions are only made
by authorized shareholders. All telephone calls are recorded for your protection
and you will be asked for information to verify your identity. Given these
precautions, unless you have specifically indicated on your application that you
do not want the telephone redemption feature, you may be responsible for any
fraudulent telephone orders. If appropriate precautions have not been taken, the
Transfer Agent may be liable for losses due to unauthorized transactions.
35
<PAGE>
Shareholder Information [LOGO]
SELLING YOUR SHARES
CONTINUED
REDEMPTIONS WITHIN 15 DAYS OF INITIAL INVESTMENT
When you have made your initial investment by check, you cannot redeem any
portion of it until the Transfer Agent is satisfied that the check has cleared
(which may require up to 15 business days). You can avoid this delay by
purchasing shares with a certified check.
REFUSAL OF REDEMPTION REQUEST
Payment for shares may be delayed under extraordinary circumstances or as
permitted by the SEC in order to protect remaining shareholders.
CLOSING OF SMALL ACCOUNTS
If your account falls below $50 due to redemptions, the Fund may ask you to
increase your balance. If it is still below $50 after 30 days, the Fund may
close your account and send you the proceeds at the current NAV.
UNDELIVERABLE REDEMPTION CHECKS
For any shareholder who chooses to receive distributions in cash, if
distribution checks (1) are returned and marked as 'undeliverable' or (2) remain
uncashed for six months, your account will be changed automatically so that all
future distributions are reinvested in your account. Checks that remain uncashed
for six months will be canceled and the money reinvested in the Fund.
36
<PAGE>
Shareholder Information [LOGO]
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
This section describes the sales charges and fees you will pay as an investor in
different share classes offered by the Funds.
<TABLE>
<CAPTION>
CLASS A SHARES CLASS C SHARES CLASS D SHARES CLASS Y SHARES
<S> <C> <C> <C> <C>
Sales Charge (Load) No front-end sales No front-end sales No front-end sales No front-end sales
charge. charge. A contingent charge. charge.
deferred sales charge
(CDSC) may be imposed
on shares redeemed
within one year
after purchase.
------------------------------------------------------------------------------------------------------------------
Distribution (12b-1) Subject to Subject to combined Subject to No distribution or
and Service Fees aggregate annual annual distribution aggregate annual service fees.
distribution and and shareholder distribution and
shareholder servicing fees of shareholder
servicing fees of up to 1.00% annually servicing fees of
up to .60% of the of the Fund's average up to .25% of the
Fund's total daily net assets. Fund's total
assets. assets.
------------------------------------------------------------------------------------------------------------------
Fund Expenses Lower annual Higher annual Lower annual Lower annual
expenses than expenses than expenses than expenses than
Class B or C Class A, B, D Class A, B or C Class A, B, C
shares. or Y shares. shares. or D shares.
------------------------------------------------------------------------------------------------------------------
</TABLE>
CLASS B SHARES
Class B Shares are not being sold but are only offered as an exchange option for
Class B shareholders of other funds in the HSBC Investor Family of Funds who
wish to exchange some or all of those shares for Class B Shares of the Money
Market Funds. Although Class B Shares are not subject to a sales charge when
a shareholder exchanges Class B Shares of another Trust portfolio, they may
be subject to a contingent deferred sales charge (CDSC) when redeemed. See
'Exchanging Your Shares' below. In addition, Class B Shares are subject to an
aggregate annual distribution and shareholder servicing fees of up to 1.00%
of the Funds' assets. Shareholders of Class B Shares pay higher annual expenses
than shareholders of Class A Shares, Class D Shares and Class Y Shares.
CLASS C SHARES
Class C Shares are primarily offered as an exchange option for Class C
shareholders of other funds in the HSBC Investor Family of Funds who wish to
exchange some or all of those shares for Class C Shares of the Money Market
Funds. Customers of HSBC Bank USA sweep programs are able to purchase
Class C Shares of the Money Market Funds.
37
<PAGE>
Shareholder Information [LOGO]
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
DISTRIBUTION (12B-1) AND SHAREHOLDER SERVICE FEES
The Funds have adopted Distribution ('12b-1') plans for Class A, Class B, Class
C and Class D Shares. 12b-1 fees compensate the Distributor and other dealers
and investment representatives for services and expenses relating to the sale
and distribution of the Funds' shares and/or for providing shareholder services.
12b-1 fees are paid from Fund assets on an ongoing basis, and will decrease the
return on your investment.
The 12b-1 fees vary by share class as follows:
Class A Shares may pay a 12b-1 fee of up to 0.25% of the average daily
net assets of the applicable Fund.
Class B and Class C Shares pay a 12b-1 fee of up to 0.75% of the average
daily net assets of the applicable Fund. This will cause expenses for
Class B and Class C Shares to be higher and dividends to be lower than
for Class A Shares, Class D Shares, and Class Y Shares.
Class D Shares may pay a 12b-1 fee of up to 0.25% of the average daily
net assets of the applicable Fund.
Class Y Shares do not pay a 12b-1 fee.
The higher 12b-1 fees on Class B and Class C Shares, together with the CDSC,
help the Distributor sell Class B and Class C Shares without an 'up-front'
sales charge. In particular, these fees help to defray the Distributor's
costs of advancing brokerage commissions to investment representatives.
In addition to the 12b-1 fees, Class A Shares are subject to a shareholder
servicing fee of up to 0.60%. Class B, Class C and Class D Shares are subject
to a shareholder servicing fee of up to 0.25%.
The aggregate of the 12b-1 fees and shareholder servicing fees will not
exceed 0.60% for the Class A Shares, 1.00% for the Class B and Class C
Shares, and 0.25% for Class D Shares.
Long-term Class B and Class C shareholders may pay indirectly more than the
equivalent of the maximum permitted front-end sales charge due to the recurring
nature of 12b-1 distribution and service fees.
38
<PAGE>
Shareholder Information [LOGO]
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CLASS B SHARES
Investors purchasing shares of the Funds will ordinarily purchase either
Class A Shares, Class D Shares or Class Y Shares. Class C Shares of the Money
Market Funds are only available for purchase by customers of HSBC Bank USA
sweep programs. Investors will only receive Class B Shares by exchanging the
Class B Shares of other HSBC Investor Funds. If you exchange shares of other
HSBC Investor Funds for shares of the Funds and wish to sell your shares,
Class B Shares may be subject to a contingent deferred sales charge ('CDSC').
Specifically, Class B Shares of the Fund will be subject to a declining CDSC if
Class B Shares of any of the HSBC Investor Funds are exchanged for
Class B Shares of any of the Money Market Funds and redeemed within 4 years.
In such cases, the CDSC will be:
<TABLE>
<CAPTION>
----------------------------------------------------------------------
CDSC AS A % OF DOLLAR
YEARS SINCE PURCHASE AMOUNT SUBJECT TO CHARGE
----------------------------------------------------------------------
<S> <C>
0-1 4.00%
1-2 3.00%
2-3 2.00%
3-4 1.00%
more than 4 None
----------------------------------------------------------------------
</TABLE>
The CDSC will be based upon the lower of the NAV at the time of purchase or the
NAV at the time of redemption. There is no CDSC on reinvested dividends or
distributions.
If you sell some but not all of your Class B Shares, shares not subject to the
CDSC (i.e., shares purchased with reinvested dividends) will be redeemed first,
followed by shares subject to the lowest CDSC (typically shares held for the
longest time).
39
<PAGE>
Shareholder Information [LOGO]
DISTRIBUTION ARRANGEMENTS/SALES CHARGES
CONTINUED
CONVERSION FEATURE -- CLASS B SHARES
Class B Shares of the Money Market Funds will convert automatically to
Class A Shares of the same Fund (or Class D Shares, depending on your
eligibility), after six years from the beginning of the calendar
month in which the Class B Shares were originally purchased.
After conversion, your shares will be subject to the lower distribution and
shareholder servicing fees charged on Class A Shares (or Class D Shares)
which will increase your investment return compared to the Class B Shares.
You will not pay any sales charge or fees when your shares convert, nor will
the transaction be subject to any tax.
If you purchased Class B Shares of one Fund which you exchanged for Class B
Shares of another Fund, your holding period will be calculated from the time
of your original purchase of Class B Shares. The dollar value of Class A
Shares (or Class D Shares) you receive will equal the dollar value of the
Class B shares converted.
CLASS C SHARES
Class C Shares of the Money Market Funds are only available for purchase by
customers of HSBC Bank USA sweep programs.
Other investors will only receive Class C Shares by exchanging the Class C
Shares of other HSBC Investor Funds. If you purchase Class C Shares or exchange
Class C Shares of other HSBC Investor Funds for Class C Shares of the Funds and
wish to sell your shares, your redemption may be subject to a 1.00% CDSC if
the shares are redeemed less than one year after the original purchase of the
Class C Shares. The CDSC will be assessed on the lesser of the current NAV or
the NAV at the time of purchase.
Unlike Class B Shares, Class C Shares have no conversion feature.
WAIVER OF SALES CHARGES -- CLASS B SHARES AND CLASS C SHARES
The following qualify for waivers of sales charges:
Distributions following the death or disability of a shareholder.
Redemptions representing the minimum distribution from an IRA or a Custodial
Account to a shareholder who has reached age 70 1/2.
Redemptions representing the minimum distribution from 401(k) retirement
plans where such redemptions are necessary to make distributions to plan
participants.
40
<PAGE>
Shareholder Information [LOGO]
EXCHANGING YOUR SHARES
You can exchange your shares in one Fund for shares of the same class of another
HSBC Investor Fund, usually without paying additional sales charges (see 'Notes
on Exchanges' below). No transaction fees are charged for exchanges.
You must meet the minimum investment requirements for the Fund into which you
are exchanging. Exchanges from one Fund to another are taxable.
Exchanges may be made by sending a written request to HSBC Investor Funds,
P.O. Box 182845, Columbus, Ohio 43218-2845 or by calling 1-800-782-8183.
Please provide the following information:
Your name and telephone number
The exact name on your account and account number
Taxpayer identification number (usually your social security number)
Dollar value or number of shares to be exchanged
The name of the Fund from which the exchange is to be made
The name of the Fund into which the exchange is being made.
See 'Selling your Shares' for important information about telephone
transactions.
To prevent disruption in the management of the Funds, due to market timing
strategies, exchange activity may be limited.
NOTES ON EXCHANGES
When exchanging from a Fund that has no sales charge or a lower sales charge to
a Fund with a higher sales charge, you will pay the difference.
The registration and tax identification numbers of the two accounts must be
identical.
The Exchange Privilege (including automatic exchanges) may be changed or
eliminated at any time upon a 60-day notice to shareholders.
Be sure to read carefully the Prospectus of any Fund into which you wish to
exchange shares.
Class A Shares of the HSBC Investor Funds may be exchanged for Class D Shares
of the Money Market Funds only if you are otherwise eligible to receive them.
In all other cases, you will receive Class A Shares of the Money Market Funds
in exchange for your Class A Shares of the HSBC Investor Funds.
41
<PAGE>
Shareholder Information [LOGO]
DIVIDENDS, DISTRIBUTIONS AND TAXES
The following information is meant as a general summary for U.S. taxpayers.
Please see the Fund's Statement of Additional Information for more
information. Because everyone's tax situation is unique, you should rely on
your own tax advisor for advice about the particular federal, state and local
tax consequences to you of investing in a Fund.
A Fund generally will not have to pay income tax on amounts it distributes to
shareholders, although shareholders will be taxed on distributions they
receive.
Any income a Fund receives in the form of interest and dividends is paid out,
less expenses, to its shareholders. Shares begin accruing interest and
dividends on the day they are purchased.
Dividends on all Funds are paid monthly. Capital gains for all Funds are
distributed at least annually. Unless a shareholder elects to receive
dividends in cash, dividends will be automatically invested in additional
shares of the Fund.
Dividends and distributions are treated in the same manner for federal income
tax purposes whether you receive them in cash or in additional shares.
Dividends are generally taxable as ordinary income; however, distributions of
tax-exempt interest income earned by the New York Tax-Free Money Market Fund
are expected to be exempt from the regular federal income tax.
If a Fund designates a dividend as a capital gain distribution (e.g., when
the Fund has a gain from the sale of an asset the Fund held for more than 12
months), you will pay tax on that dividend at the long-term capital gains tax
rate, no matter how long you have held your Fund shares.
Dividends are taxable in the year in which they are paid or deemed paid, even
if they appear on your account statement the following year. If a Fund
declares a dividend in October, November, or December of a year and
distributes the dividend in January of the next year, you may be taxed as if
you received it in the year declared rather than the year received.
There may be tax consequences to you if you dispose of your shares in a Fund,
for example, through redemption, exchange or sale. The amount of any gain or
loss and the rate of tax will depend mainly upon how much you pay for the
shares, how much you sell them for, and how long you held them.
You will be notified before February 1 of each year about the federal tax
status of distributions made by the Funds. The notice will tell you which
dividends and redemptions must be treated as taxable ordinary income and
which (if any) are short-term or long-term capital gain. Depending on your
residence for tax purposes, distributions also may be subject to state and
local taxes, including withholding taxes.
42
<PAGE>
Shareholder Information [LOGO]
As with all mutual funds, the Fund may be required to withhold U.S. federal
income tax at the rate of 31% of all taxable distributions payable to you if
you fail to provide the Fund with your correct taxpayer identification number
or to make required certifications, or if you have been notified by the IRS
that you are subject to backup withholding. Backup withholding is not an
additional tax, but is a method in which the IRS ensures that it will collect
taxes otherwise due. Any amounts withheld may be credited against your U.S.
federal income tax liability.
Foreign shareholders may be subject to special withholding requirements.
If you invest through a tax-deferred retirement account, such as an IRA, you
generally will not have to pay tax on dividends or capital gains until they
are distributed from the account. These accounts are subject to complex tax
rules, and you should consult your tax adviser about investment through a
tax-deferred account.
There is a penalty on certain pre-retirement distributions from retirement
accounts.
43
<PAGE>
Financial Highlights [LOGO]
The financial highlights tables are intended to help you understand the Fund's
financial performance for the past five years, or, if shorter, the period of the
Fund's operations. Certain information reflects financial results for a single
Fund share. The total returns in the table represent the rate that an investor
would have earned or lost on an investment in the Fund (assuming reinvestment of
all dividends and distributions). This information has been derived from
information audited by KPMG LLP, whose report, along with the Fund's financial
statements, are included in the annual report, which is available upon request.
Financial information for Class B Shares of the Money Market Fund and Class C
Shares of all the HSBC Investor Money Market Funds is not shown because these
shares were not offered prior to October 31, 1999.
44
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR MONEY MARKET FUND
CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 13, 1998 TO
OCTOBER 31, 1999(d)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
-----------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.043
Net realized gains from investment transactions 0.000*
-----------------------------------------------------------------------------------
Total from investment activities 0.043
-----------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.043)
-----------------------------------------------------------------------------------
Total dividends (0.043)
-----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
-----------------------------------------------------------------------------------
TOTAL RETURN 4.42%(c)
-----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's) $226,783
Ratio of expenses to average net assets 0.67%(b)
Ratio of net investment income to average net assets 4.44%(b)
Ratio of expenses to average net assets (a) 0.75%(b)
-----------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
45
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR MONEY MARKET FUND
CLASS D (PRIVATE INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 1, 1999 TO
OCTOBER 31, 1999(d)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
----------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.027
Net realized gains from investment
transactions 0.000*
----------------------------------------------------------------------------------
Total from investment activities 0.027
----------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.027)
----------------------------------------------------------------------------------
Total dividends (0.027)
----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
----------------------------------------------------------------------------------
TOTAL RETURN 2.69%(c)
----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's) $46,863
Ratio of expenses to average net assets 0.59%(b)
Ratio of net investment income to average net assets 4.56%(b)
Ratio of expenses to average net assets (a) 0.62%(b)
----------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
46
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR MONEY MARKET FUND
ADVISER (CLASS Y) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
NOVEMBER 12, 1998 TO
OCTOBER 31,
1999(d)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
-----------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.047
Net realized gains from investment transactions 0.000*
-----------------------------------------------------------------------------------
Total from investment activities 0.047
-----------------------------------------------------------------------------------
Dividends:
Net investment income (0.047)
-----------------------------------------------------------------------------------
Total dividends (0.047)
-----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
-----------------------------------------------------------------------------------
TOTAL RETURN 4.76%(c)
-----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's) $73,672
Ratio of expenses to average net assets 0.31%(b)
Ratio of net investment income to average net assets 4.77%(b)
Ratio of expenses to average net assets(a) 0.40%(b)
-----------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
47
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
ONE MONTH
FOR THE PERIOD
YEAR ENDED ENDED FOR THE YEARS ENDED SEPTEMBER 30,
OCTOBER 31, OCTOBER 31, -----------------------------------------------
1999 1998 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.042 0.004 0.048 0.048 0.049 0.052
Net realized gains from
investment
transactions 0.000* 0.000* 0.000* 0.000* -- --
---------------------------------------------------------------------------------------------------------
Total from
investment
activities 0.042 0.004 0.048 0.048 0.049 0.052
---------------------------------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.042) (0.004) (0.048) (0.048) (0.049) (0.052)
In excess of net
investment income (0.000)* -- -- -- -- --
Net realized gains from
investment
transactions (0.000)* -- (0.000)* -- -- --
---------------------------------------------------------------------------------------------------------
Total dividends (0.042) (0.004) (0.048) (0.048) (0.049) (0.052)
---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------------------------------------------------------
TOTAL RETURN 4.24% 0.39%(c) 5.00% 4.89% 4.98% 5.27%
RATIOS/SUPPLEMENTARY
DATA:
Net assets at end of
year (000's) 9$32,874.. $1,055,163 $988,236 $505,702 $246,368 $113,218
Ratio of expenses to
average net assets 0.66% 0.50%(b) 0.52% 0.59% 0.57% 0.58%
Ratio of net investment
income to average net
assets 4.16% 4.40%(b) 4.89% 4.80% 4.80% 5.17%
Ratio of expenses to
average net assets 0.66% 0.60%(a)(b) 0.62%(a) 0.71%(a) 0.75%(a) 0.78%(a)
---------------------------------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
48
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
CLASS B SHARES
<TABLE>
<CAPTION>
ONE MONTH
FOR THE PERIOD FOR THE PERIOD
YEAR ENDED ENDED FEBRUARY 2, 1998
OCTOBER 31, OCTOBER 31, TO SEPTEMBER 30,
1999 1998 1998(d)
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $1.00 $1.00 $1.00
------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.035 0.003 0.002
Net realized gains from investment
transactions 0.000* 0.000* --
------------------------------------------------------------------------------------
Total from investment
activities 0.035 0.003 0.002
------------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.035) (0.003) (0.002)
Net realized gains from investment
transactions (0.000)* -- --
------------------------------------------------------------------------------------
Total dividends (0.035) (0.003) (0.002)
------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00
------------------------------------------------------------------------------------
TOTAL RETURN (EXCLUDES REDEMPTION
CHARGE) 3.54% 0.32%(c) 0.22%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's) $119 $113 $113
Ratio of expenses to average net
assets 1.34% 1.25%(b) 1.27%(b)
Ratio of net investment income to
average net assets 3.49% 3.65%(b) 4.14%(b)
Ratio of expenses to average net
assets 1.34% 1.35%(a)(b) 1.37%(a)(b)
------------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
49
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
CLASS D (PRIVATE INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 1, 1999 TO
OCTOBER 31, 1999(d)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
----------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.025
Net realized gains from investment transactions 0.000*
----------------------------------------------------------------------------------
Total income from investment activities 0.0025
----------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.025)
In excess of net investment income (0.000)*
----------------------------------------------------------------------------------
Total dividends (0.025)
----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
----------------------------------------------------------------------------------
TOTAL RETURN 2.53%(c)
----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $465,526
Ratio of expenses to average net assets 0.60%(b)
Ratio of net investment income to average net assets 4.26%(b)
Ratio of expenses to average net assets 0.60%(b)
----------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
50
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR U.S. GOVERNMENT MONEY MARKET FUND
ADVISER (CLASS Y) SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE YEARS
FOR THE PERIOD ENDED FOR THE PERIOD
YEAR ENDED ENDED SEPTEMBER 30, JULY 1, 1996,
OCTOBER 31, OCTOBER 31, --------------- TO SEPTEMBER 30,
1999 1998 1998 1997 1996(d)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.045 0.004 0.058 0.050 0.012
Net realized gains from
investment transactions 0.000* -- 0.000* 0.000* --
------------------------------------------------------------------------------------------
Total from investment
activities 0.045 0.004 0.058 0.050 0.012
------------------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.045) (0.004) (0.058) (0.050) (0.012)
In excess of net
investment income (0.000)* -- -- -- --
Net realized gains from
investment transactions (0.000)* -- (0.000)* -- --
------------------------------------------------------------------------------------------
Total dividends (0.045) (0.004) (0.058) (0.050) (0.012)
------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
------------------------------------------------------------------------------------------
TOTAL RETURN 4.57% 0.41%(c) 5.27% 5.15% 1.24%(c)
------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of
period (000's) $38,858 $34,617 $29,023 $16,180 $1,413
Ratio of expenses to
average net assets 0.34% 0.25%(b) 0.27% 0.33% 0.43%(b)
Ratio of net investment
income to average net
assets 4.47% 4.65%(b) 5.14% 5.06% 4.90%(b)
Ratio of expenses to
average net assets 0.34% 0.35%(a)(b) 0.37%(a) 0.45%(a) 0.61%(a)(b)
------------------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
51
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE
MONEY MARKET FUND
CLASS A (INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEARS ENDED OCTOBER 31, NOVEMBER 17, 1994
-------------------------------------- TO OCTOBER 31,
1999 1998 1997 1996 1995(d)
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.023 0.029 0.030 0.030 0.033
Net realized gains from
investment transactions 0.000* 0.000* 0.000* -- --
-------------------------------------------------------------------------------------------
Total from investment
activities 0.023 0.029 0.030 0.030 0.033
-------------------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.023) (0.029) (0.030) (0.030) (0.033)
Net realized gains from
investment transactions -- (0.000)* -- -- --
-------------------------------------------------------------------------------------------
Total dividends (0.023) (0.029) (0.030) (0.030) (0.033)
-------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------------------------------------------------------------------------------------------
TOTAL RETURN 2.36% 2.95% 3.01% 3.04% 3.31%(b)
-------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period
(000's) $113,583 $153,592 $123,324 $78,594 $52,652
Ratio of expenses to average
net assets 0.70% 0.58% 0.60% 0.54% 0.41%(c)
Ratio of net investment
income to average net
assets 2.39% 2.90% 2.98% 2.97% 3.45%(c)
Ratio of expenses to average
net assets 0.70% 0.66%(a) 0.72%(a) 0.63%(a) 0.65%(a)(c)
-----------------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Not annualized.
(c) Annualized.
(d) Period from commencement of operations.
See notes to financial statements.
52
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE
MONEY MARKET FUND
CLASS B SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE APRIL 29, 1998
YEAR ENDED TO OCTOBER 31,
OCTOBER 31, 1999 1998(d)
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $ 1.00
---------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income -- 0.012
Net realized gains from investment
transactions -- 0.000*
---------------------------------------------------------------------------------
Total from investment activities 0.000 0.012
---------------------------------------------------------------------------------
DIVIDENDS:
Net investment income -- (0.012)
---------------------------------------------------------------------------------
Total dividends 0.000 (0.012)
---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00
---------------------------------------------------------------------------------
TOTAL RETURN (EXCLUDES REDEMPTION CHARGE) 0.00% 1.24%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period $10 $10
Ratio of expenses to average net assets -- 1.33%(b)
Ratio of net investment income to average
net assets -- 2.15%(b)
Ratio of expenses to average net (a) -- 1.41%(b)
---------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
(e) Class B Shares operated from April 29, 1998 to September 11, 1998. Since
September 11, 1998 net assets represent seed money and accordingly no income
or expenses have been allocated to the class.
See notes to financial statements.
53
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE
MONEY MARKET FUND
CLASS D (PRIVATE INVESTOR) SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
APRIL 1, 1999
TO OCTOBER 31,
1999(d)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00
------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.015
Net realized gains from investment
transactions 0.000*
------------------------------------------------------------------------------
Total from investment activities 0.015
------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.015)
------------------------------------------------------------------------------
Total dividends (0.015)
------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00
------------------------------------------------------------------------------
TOTAL RETURN 1.50%(c)
------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's) $39,443
Ratio of expenses to average net assets 0.63%(b)
Ratio of net investment income to average net assets 2.51%(b)
Ratio of expenses to average net assets 0.63%(b)
------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
54
<PAGE>
Financial Highlights [LOGO]
HSBC INVESTOR NEW YORK TAX-FREE
MONEY MARKET FUND
ADVISER (CLASS Y) SHARES
<TABLE>
<CAPTION>
FOR THE YEARS ENDED FOR THE PERIOD
OCTOBER 31, JULY 1, 1996
---------------------------- TO OCTOBER 31,
1999 1998 1997 1996(d)
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
Net investment income 0.027 0.031 0.032 0.010
Net realized gains from investment
transactions 0.000* 0.000* 0.000* --
----------------------------------------------------------------------------------
Total from investment
activities 0.027 0.031 0.032 0.010
----------------------------------------------------------------------------------
DIVIDENDS:
Net investment income (0.027) (0.031) (0.032) (0.010)
Net realized gains from investment
transactions -- (0.000)* -- --
----------------------------------------------------------------------------------
Total dividends (0.027) (0.031) (0.032) (0.010)
----------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------------------------------------------------------------------------
TOTAL RETURN 2.70% 3.21% 3.27% 1.03%(c)
RATIOS/SUPPLEMENTARY DATA:
Net assets at end of period (000's) $11,986 $10,759 $8,674 $3,714
Ratio of expenses to average net
assets 0.38% 0.33% 0.35% 0.35%(b)
Ratio of net investment income to
average net assets 2.71% 3.15% 3.23% 3.12%(b)
Ratio of expenses to average net
assets 0.38% 0.41%(a) 0.47%(a) 0.45%(a)(b)
----------------------------------------------------------------------------------
</TABLE>
* Less than $0.001 per share.
(a) During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(b) Annualized.
(c) Not annualized.
(d) Period from commencement of operations.
See notes to financial statements.
55
<PAGE>
Taxable Equivalent Yield Tables [LOGO]
TAXABLE EQUIVALENT YIELD TABLES
The tables below show the approximate taxable yields which are equivalent to
tax-exempt yields, for the ranges indicated, under (i) federal and New York
State personal income tax laws, and (ii) federal, New York State and New York
City personal income tax laws, in each case based upon the applicable 2000
rates. Such yields may differ under the laws applicable to subsequent years if
the effect of any such law is to change any tax bracket or the amount of taxable
income which is applicable to a tax bracket. Separate calculations, showing the
applicable taxable income brackets, are provided for investors who file single
returns and for those investors who file joint returns. For cases in which two
or more state (or city) brackets fall within a federal bracket, the highest
state (or city) bracket is combined with the federal bracket. The combined
income tax brackets shown reflect the fact that state and city income taxes are
currently deductible as an itemized deduction for federal tax purposes (however,
a taxpayer's itemized deductions may be subject to an overall limitation, the
effect of which has not been taken into account in preparing these tables).
FEDERAL AND NEW YORK STATE TABLE
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
TAXABLE INCOME* TAX-EXEMPT YIELD
------------------------------------ INCOME ---------------------------------------------------------------
SINGLE JOINT TAX 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00%
RETURN RETURN BRACKET** EQUIVALENT TAXABLE YIELD
----------------- ----------------- --------- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0-26,250 $ 0-43,850 20.80% 3.16% 3.79% 4.42% 5.05% 5.68% 6.31% 6.95% 7.58%
$ 26,251-$ 63,550 $ 43,851-105,950 32.90% 3.73% 4.47% 5.22% 5.95% 6.71% 7.46% 8.20% 8.95%
$ 63,551-132,600 $ 105,951-161,450 35.70% 3.89% 4.67% 5.44% 6.22% 7.00% 7.78% 8.56% 9.34%
$132,601-$288,350 $161,450-$283,350 40.40% 4.19% 5.03% 5.87% 6.71% 7.55% 8.39% 9.23% 10.06%
> $288,350 > $283,350 43.70% 4.44% 5.33% 6.22% 7.11% 8.00% 8.89% 9.78% 10.66%
</TABLE>
* Net amount subject to federal and New York State personal income tax after
deductions and exemptions.
** Effective combined federal and state tax bracket.
This table does not take into account: (i) any taxes other than the regular
federal income tax and the regular New York State personal income tax; or
(ii) the New York State tax table benefit recapture tax. Also, it is assumed
that: (i) there are no federal or New York State minimum taxes applicable;
(ii) a shareholder has no net capital gain; and (iii) a shareholder's taxable
income for federal income tax purposes is the same as his or her taxable income
for New York State income tax purposes. Also, this table does not reflect the
fact that, due to factors including the federal phase-out of personal exemptions
and reduction of certain itemized deductions for taxpayers whose adjusted gross
income exceed specified thresholds, a shareholder's effective marginal tax rate
may differ from his or her tax bracket rate.
56
<PAGE>
Taxable Equivalent Yield Tables [LOGO]
FEDERAL, NEW YORK STATE AND NEW YORK CITY TABLE
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
TAXABLE INCOME* TAX-EXEMPT YIELD
----------------------------------- INCOME -----------------------------------------------------------------
SINGLE JOINT TAX 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00%
RETURN RETURN BRACKET** EQUIVALENT TAXABLE YIELD
----------------- ----------------- --------- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 0-$26,250 $ 0-43,850 23.60% 3.27% 3.93% 4.58% 5.24% 5.89% 6.54% 7.20% 7.85%
$ 26,251-$ 63,550 $ 43,851-$105,950 35.32% 3.87% 4.64% 5.41% 6.18% 6.96% 7.73% 8.06% 9.28%
$ 63,551-$ 132,600 $105,051-$161,450 38.01% 4.03% 4.84% 5.65% 6.45% 7.26% 8.07% 8.87% 9.68%
$132,601-$288,350 $161-450-$283,350 42.51% 4.35% 5.22% 6.09% 6.96% 7.83% 8.70% 9.56% 10.44%
> $288,350 > $283,350 45.74% 4.61% 5.53% 6.45% 7.37% 8.29% 9.21% 10.14% 11.06%
</TABLE>
------------
* Net amount subject to federal, New York State and New York City personal
income tax after deductions and exemptions.
** Effective combined federal, state and city tax bracket.
This table does not take into account: (i) any taxes other than the regular
federal income tax, the regular New York State personal income tax, and the
regular New York City personal income tax (including the temporary tax surcharge
and the additional tax); or (ii) the New York State tax table benefit recapture
tax. Also, it is assumed that: (i) there are no federal, state or city minimum
taxes applicable; (ii) a shareholder has no net capital gain; and (iii) a
shareholder's taxable income for federal income tax purposes is the same as his
or her income for state and city tax purposes. Also, this table does not reflect
the fact that, due to factors including the federal phase-out of personal
exemptions and reduction of certain itemized deductions for taxpayers whose
adjusted gross income exceed specified thresholds, a shareholder's effective
marginal tax rate may differ from his or her tax bracket rate.
While it is expected that most of the dividends paid to the shareholders of the
New York Tax-Free Bond Fund will be exempt from federal, New York State and New
York City personal income taxes, portions of such dividends from time to time
may be subject to such taxes.
57
<PAGE>
For more information about the Funds, the following documents are available free
upon request:
ANNUAL/SEMI-ANNUAL REPORTS (REPORTS):
The Funds' annual and semi-annual reports to shareholders contain additional
information on the Funds' investments. In the annual report, you will find a
discussion of the market conditions and investment strategies that significantly
affected the Funds' performance during its last fiscal year.
STATEMENTS OF ADDITIONAL INFORMATION (SAIS):
The SAIs provide more detailed information about the Funds, including their
operations and investment policies. They are incorporated by reference and
legally considered a part of this prospectus.
YOU CAN GET FREE COPIES OF REPORTS AND THE SAIS, PROSPECTUSES OF OTHER MEMBERS
OF THE HSBC INVESTOR FAMILY OF FUNDS, OR REQUEST OTHER INFORMATION AND DISCUSS
YOUR QUESTIONS ABOUT THE FUNDS, BY CONTACTING A BROKER OR HSBC BROKERAGE (USA)
INC. AT 1-888-525-5757. OR CONTACT THE FUNDS AT:
HSBC INVESTOR FUNDS
PO BOX 182845
COLUMBUS, OHIO 43218-2845
TELEPHONE: 1-800-782-8183
-----------------------------------
You can review the Funds' reports and SAIs at the Public Reference Room of the
Securities and Exchange Commission. You can get text-only copies:
For a duplicating fee, by writing the Public Reference Section of the
Commission, Washington, D.C. 20549-0102, or by electronic request at
[email protected]. Information on the operation of the Public Reference Room
may be obtained by calling the Commission at 1-202-942-8070.
Free from the Commission's Website at http://www.sec.gov.
Investment Company Act file no. 811-4782.
RFFMM (3/00)
STATEMENT OF DIFFERENCES
The dagger symbol shall be expressed as.................................'D'
