UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-04782

HSBC FUNDS
(Exact name of registrant as specified in charter)
 
452 Fifth Avenue, New York, NY 10018
(Address of principal executive offices) (Zip code)
 
Citi Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219
(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-782-8183

Date of fiscal year end: October 31

Date of reporting period: January 31, 2014


Item 1. Schedule of Investments.

HSBC GROWTH FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Value ($)    
Affiliated Portfolio — 100.1%  
HSBC Growth Portfolio 81,486,581
TOTAL INVESTMENT SECURITIES - 100.1% 81,486,581  

Percentages indicated are based on net assets of $81,424,243.

See notes to schedules of portfolio investments.


HSBC GROWTH PORTFOLIO

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Common Stocks — 98.6%
Aerospace & Defense — 3.1%
Precision Castparts Corp. 6,000 1,528,500
United Technologies Corp. 9,950 1,134,499
2,662,999
Airlines — 0.8%
Delta Air Lines, Inc. 22,350 684,134
Auto Components — 1.2%
BorgWarner, Inc. 19,200 1,031,040
Automobiles — 0.1%
Tesla Motors, Inc. (a) 500 90,705
Biotechnology — 12.1%
Alexion Pharmaceuticals, Inc. (a) 8,900 1,412,697
Amgen, Inc. 14,850 1,766,408
Biogen Idec, Inc. (a) 7,100 2,219,744
Celgene Corp. (a) 16,750 2,544,827
Gilead Sciences, Inc. (a) 24,350 1,963,828
Incyte Corp. (a) 11,100 727,272
10,634,776
Capital Markets — 3.9%
BlackRock, Inc. 5,165 1,551,928
Morgan Stanley 34,600 1,021,046
The Charles Schwab Corp. 32,300 801,686
3,374,660
Chemicals — 4.0%
Ecolab, Inc. 9,100 914,914
Monsanto Co. 23,849 2,541,111
3,456,025
Communications Equipment — 1.4%
Qualcomm, Inc. 16,550 1,228,341
Computers & Peripherals — 2.3%
Apple, Inc. 4,005 2,004,903
Diversified Financial Services — 2.2%
American Express Co. 12,400 1,054,248
JPMorgan Chase & Co. 15,300 847,008
1,901,256
Energy Equipment & Services — 1.7%
Schlumberger Ltd. 17,200 1,506,204
Food & Staples Retailing — 2.1%
Costco Wholesale Corp. 7,600 853,936
CVS Caremark Corp. 14,600 988,712
1,842,648
Health Care Providers & Services — 1.8%
Catamaran Corp. (a) 16,100 782,782
McKesson Corp. 4,600 802,286
1,585,068
Health Care Technology — 1.2%
Cerner Corp. (a) 18,600 1,058,154
Hotels, Restaurants & Leisure — 5.0%
Chipotle Mexican Grill, Inc. (a) 1,170 645,793
Hilton Worldwide Holdings, Inc. (a) 36,400 788,060
Starbucks Corp. 30,700 2,183,384
Wynn Resorts Ltd. 3,600 782,712
4,399,949
Internet & Catalog Retail — 6.6%
Amazon.com, Inc. (a) 7,240 2,596,916
Priceline.com, Inc. (a) 2,600 2,976,713
TripAdvisor, Inc. (a) 2,400 185,256
5,758,885
Internet Software & Services — 9.4%
Baidu, Inc., ADR (a) 6,900 1,079,850
eBay, Inc. (a) 9,450 502,740
Facebook, Inc., Class A (a) 28,500 1,783,245
Google, Inc., Class A (a) 3,450 4,074,346
LinkedIn Corp., Class A (a) 4,040 869,448
8,309,629
IT Services — 6.6%
Cognizant Technology Solutions Corp.,
Class A (a) 		11,200 1,085,504
MasterCard, Inc., Class A 18,950 1,434,136
Visa, Inc., Class A 15,300 3,296,078
5,815,718
Machinery — 2.7%
Danaher Corp. 31,300 2,328,407
Media — 5.5%
CBS Corp., Class B 18,600 1,092,192
Liberty Global plc, Class A (a) 9,400 751,342
Liberty Global plc, Class C (a) 4,200 333,186
The Walt Disney Co. 13,600 987,496
Twenty-First Century Fox, Inc., Class A 50,750 1,614,865
4,779,081
Oil, Gas & Consumable Fuels — 2.2%
Noble Energy, Inc. 15,400 959,882
Range Resources Corp. 10,800 930,852
1,890,734
Personal Products — 1.0%
The Estee Lauder Cos., Inc., Class A 12,450 855,813
Pharmaceuticals — 1.2%
Zoetis, Inc. 34,100 1,035,276
Real Estate Investment Trusts (REITs) — 1.3%
American Tower Corp. 14,500 1,172,760
Road & Rail — 4.0%
Union Pacific Corp. 20,050 3,493,512
Semiconductors & Semiconductor Equipment — 2.1%
Applied Materials, Inc. 45,400 763,628
ARM Holdings plc ADR 23,200 1,068,824
1,832,452
Software — 4.6%
Salesforce.com, Inc. (a) 40,750 2,466,598
ServiceNow, Inc. (a) 9,300 589,899
Splunk, Inc. (a) 5,100 392,853
Workday, Inc., Class A (a) 6,475 579,772
4,029,122
Specialty Retail — 4.2%
Dollar General Corp. (a) 20,100 1,132,032
Lowe's Cos., Inc. 21,200 981,348
Ross Stores, Inc. 12,000 814,920
Ulta Salon, Cosmetics & Fragrance, Inc. (a) 8,400 719,964
3,648,264
Textiles, Apparel & Luxury Goods — 3.1%
Michael Kors Holdings Limited (a) 7,800 623,454
NIKE, Inc., Class B 17,400 1,267,590
Ralph Lauren Corp. 5,400 847,206
2,738,250

See notes to schedules of portfolio investments.


HSBC GROWTH PORTFOLIO

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Common Stocks, continued
Wireless Telecommunication Services — 1.2%
SBA Communications Corp., Class A (a) 11,550 1,071,263
 
TOTAL COMMON STOCKS
       (COST $61,592,483) 		86,220,028
Investment Company — 0.3%
Northern Institutional Diversified Assets
       Portfolio, Institutional Shares,
       0.01% (b) 		263,270 263,270
 
TOTAL INVESTMENT COMPANY
       (COST $263,270) 		263,270
TOTAL INVESTMENT SECURITIES
       (COST $61,855,753) — 98.9% 		86,483,298

Percentages indicated are based on net assets of $87,446,476.
(a)         Represents non-income producing security.
(b) The rate represents the annualized one-day yield that was in effect on January 31, 2014.
ADR American Depositary Receipt

See notes to schedules of portfolio investments.


HSBC OPPORTUNITY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Value ($)
Affiliated Portfolio — 100.6%      
HSBC Opportunity Portfolio 16,244,120
TOTAL INVESTMENT SECURITIES - 100.6% 16,244,120

Percentages indicated are based on net assets of $16,153,597.

See notes to schedules of portfolio investments.


HSBC OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Common Stocks — 97.1%
Aerospace & Defense — 3.1%
B/E Aerospace, Inc. (a) 45,120 3,585,686
TransDigm Group, Inc. 21,395 3,573,607
7,159,293
Auto Components — 2.5%
Gentex Corp. 71,350 2,311,027
WABCO Holdings, Inc. (a) 38,450 3,315,159
5,626,186
Biotechnology — 5.9%
ACADIA Pharmaceuticals, Inc. (a) 107,270 2,499,391
Alkermes plc (a) 92,780 4,516,530
Cubist Pharmaceuticals, Inc. (a) 69,610 5,087,795
Intercept Pharmaceuticals, Inc. (a) 5,258 1,582,027
13,685,743
Capital Markets — 1.7%
Raymond James Financial, Inc. 74,650 3,800,432
Chemicals — 7.1%
Cytec Industries, Inc. 34,010 3,059,880
Huntsman Corp. 147,350 3,229,912
PolyOne Corp. 85,420 3,037,535
Rockwood Holdings, Inc. 49,390 3,384,697
The Scotts Mircale-Gro Co. 61,310 3,641,200
16,353,224
Commercial Banks — 2.7%
Comerica, Inc. 57,110 2,615,638
First Republic Bank 71,650 3,477,175
6,092,813
Communications Equipment — 1.4%
Aruba Networks, Inc. (a) 92,610 1,825,343
JDS Uniphase Corp. (a) 106,850 1,420,037
3,245,380
Construction Materials — 1.2%
Martin Marietta Materials, Inc. 25,085 2,734,516
Containers & Packaging — 2.6%
Crown Holdings, Inc. (a) 46,830 1,924,713
Packaging Corp. of America 62,720 4,051,712
5,976,425
Distributors — 0.9%
LKQ Corp. (a) 74,960 2,029,167
Diversified Consumer Services — 1.4%
Service Corp. International 181,090 3,205,293
Electrical Equipment — 2.7%
Generac Holdings, Inc. 41,900 2,016,647
Hubbell, Inc., Class B 35,070 4,093,721
6,110,368
Electronic Equipment, Instruments & Components — 0.8%
Ingram Micro, Inc. (a) 70,350 1,760,157
Energy Equipment & Services — 2.2%
McDermott International, Inc. (a) 176,680 1,473,511
Rowan Cos. plc, Class A (a) 112,160 3,518,459
4,991,970
Health Care Equipment & Supplies — 5.0%
ArthroCare Corp. (a) 61,630 2,796,769
IDEXX Laboratories, Inc. (a) 36,300 4,147,638
Spectranetics Corp. (a) 31,650 823,533
Wright Medical Group, Inc. (a) 122,300 3,719,143
11,487,083
Health Care Providers & Services — 2.9%
Community Health Systems, Inc. (a) 106,740 4,420,104
MWI Veterinary Supply, Inc. (a) 12,140 2,261,196
6,681,300
Health Care Technology — 1.7%
Allscripts Healthcare Solutions, Inc. (a) 239,640 3,968,438
Hotels, Restaurants & Leisure — 1.3%
Brinker International, Inc. 60,680 2,934,485
Household Durables — 5.2%
Harman International Industries, Inc. 28,400 2,937,412
Jarden Corp. (a) 67,295 4,067,983
NVR, Inc. (a) 2,347 2,707,053
Tempur Sealy International, Inc. (a) 42,760 2,107,640
11,820,088
Insurance — 1.8%
Everest Re Group Ltd. 9,920 1,436,019
Genworth Financial, Inc., Class A (a) 187,120 2,760,020
4,196,039
Internet Software & Services — 1.2%
Pandora Media, Inc. (a) 76,060 2,743,484
IT Services — 5.5%
Alliance Data Systems Corp. (a) 12,045 2,886,705
FleetCor Technologies, Inc. (a) 28,405 3,020,020
Total System Services, Inc. 96,880 2,894,774
VeriFone Systems, Inc. (a) 133,990 3,887,049
12,688,548
Life Sciences Tools & Services — 3.2%
Covance, Inc. (a) 33,490 3,166,814
Mettler-Toledo International, Inc. (a) 17,290 4,258,527
7,425,341
Machinery — 3.1%
Lincoln Electric Holdings, Inc. 45,680 3,161,056
The Timken Co. 71,650 4,036,045
7,197,101
Media — 0.8%
Nexstar Broadcasting Group, Inc.,
Class A 		36,470 1,752,384
Oil, Gas & Consumable Fuels — 5.4%
CONSOL Energy, Inc. 122,770 4,585,460
Denbury Resources, Inc. (a) 135,360 2,175,235
Tesoro Corp. 108,680 5,599,193
12,359,888
Professional Services — 2.7%
IHS, Inc., Class A (a) 29,390 3,333,120
Robert Half International, Inc. 68,700 2,870,286
6,203,406
Real Estate Investment Trusts (REITs) — 1.2%
Starwood Property Trust, Inc. 92,370 2,789,574
Real Estate Management & Development — 1.7%
Jones Lang LaSalle, Inc. 34,250 3,913,405
Road & Rail — 2.6%
Genesee & Wyoming, Inc. (a) 48,300 4,363,422
Landstar System, Inc. 29,490 1,693,906
6,057,328

See notes to schedules of portfolio investments.


HSBC OPPORTUNITY PORTFOLIO

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Common Stocks — 97.1%, continued
Semiconductors & Semiconductor Equipment — 2.2%
NXP Semiconductors NV (a) 72,280 3,494,738
Skyworks Solutions, Inc. (a) 52,690 1,593,873
5,088,611
Software — 4.6%
Concur Technologies, Inc. (a) 20,400 2,475,336
Informatica Corp. (a) 55,870 2,254,913
Qlik Technologies, Inc. (a) 104,470 2,822,779
ServiceNow, Inc. (a) 48,270 3,061,767
10,614,795
Specialty Retail — 5.4%
GNC Holdings, Inc., Class A 29,390 1,502,123
Signet Jewelers Ltd. 36,090 2,870,960
Tractor Supply Co. 33,730 2,243,382
Urban Outfitters, Inc. (a) 99,890 3,578,060
Williams-Sonoma, Inc. 40,394 2,202,281
12,396,806
Technology — 0.2%
Infoblox, Inc. (a) 13,660 479,193
Trading Companies & Distributors — 3.2%
United Rentals, Inc. (a) 45,690 3,698,148
WESCO International, Inc. (a) 42,610 3,534,926
7,233,074
 
TOTAL COMMON STOCKS
       (COST $173,868,284) 		222,801,338
Investment Company — 4.8%
Northern Institutional Government
       Select Portfolio, Institutional
       Shares, 0.01% (b) 		11,041,953 11,041,953
 
TOTAL INVESTMENT COMPANY
       (COST $11,041,953) 		11,041,953
TOTAL INVESTMENT SECURITIES
       (COST $184,910,237) — 101.9% 		233,843,291

Percentages indicated are based on net assets of $229,503,002.
(a)         Represents non-income producing security.
(b) The rate represents the annualized one-day yield that was in effect on January 31, 2014.

See notes to schedules of portfolio investments.


HSBC PRIME MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
Certificates of Deposit — 35.6%          
Banking — 35.6%
Agricultural Bank of China, N.Y.,  
       0.53%, 3/17/14 30,000,000 30,002,554
Bank of Montreal Chicago,
       0.17%, 3/14/14   80,000,000 80,000,000
Bank of Montreal Chicago,  
       0.17%, 4/7/14 80,000,000 80,000,000  
Bank of Nova Scotia Houston,
       0.17%, 3/28/14 (a) 20,000,000 20,000,361
Bank of Nova Scotia Houston,
       0.20%, 4/14/14 25,000,000 25,000,461
Bank of Nova Scotia Houston,
       0.25%, 7/18/14 (a) 50,000,000 50,000,000
Bank of Tokyo-Mitsubishi UFJ,
       N.Y., 0.42%, 2/12/14 50,000,000   50,000,000
Bank of Tokyo-Mitsubishi UFJ,
       N.Y., 0.84%, 3/7/14 (a) 5,800,000 5,802,241
Bank of Tokyo-Mitsubishi UFJ,
       N.Y., 0.23%, 7/2/14 80,000,000 80,000,000
Credit Industriel et Commercial,
       N.Y., 0.15%, 2/3/14 40,000,000 40,000,000
Credit Industriel et Commercial,
       N.Y., 0.22%, 2/5/14 55,000,000 55,000,000
Credit Suisse, N.Y., 0.21%,
       4/4/14 30,000,000 30,001,459
Credit Suisse, N.Y., 0.25%,
       4/22/14 60,000,000 60,000,643
Deutsche Bank, N.Y., 0.47%,
       4/30/14 (a) 100,000,000 100,000,000
DnB NOR Bank ASA, N.Y.,
       0.16%, 2/18/14 50,000,000 50,000,000
Industrial & Commercial Bank of
       China, N.Y., 0.46%, 2/3/14 40,000,000 40,000,000
JPMorgan Chase Bank N.A.,
       0.28%, 7/28/14 (a) 50,000,000 50,000,000
Mizuho Bank Ltd., N.Y., 0.21%,
       4/15/14 20,000,000 20,000,000
Mizuho Bank Ltd., N.Y., 0.20%,
       4/28/14 70,000,000 70,000,000
National Australia Bank, N.Y.,
       0.20%, 6/18/14 (a) 60,000,000 60,000,000
Norinchukin Bank, N.Y., 0.21%,
       2/25/14 80,000,000 80,000,000
Royal Bank of Canada, N.Y.,
       0.30%, 2/3/14 (a) 65,000,000 65,000,000
Royal Bank of Canada, N.Y.,
       0.29%, 2/19/14 (a) 35,000,000 35,000,000
Royal Bank of Canada, N.Y.,
       0.24%, 1/13/15 (a) 50,000,000 50,000,000
Royal Bank of Canada, N.Y. ,
       2/4/15 (a) 25,000,000 25,000,000
Royal Bank of Canada, N.Y.,
       0.33%, 2/4/15 (a) 15,500,000 15,500,000
Shinhan Bank, N.Y., 0.35%,
       3/17/14 30,000,000 30,000,000
Shinhan Bank, N.Y., 0.35%,
       4/3/14 20,000,000 20,000,000
Shinhan Bank, N.Y., 0.35%,
       4/23/14 20,000,000 20,000,000
Societe' Generale, N.Y., 0.28%,
       10/31/14 (a) 80,000,000 80,000,000
Sumitomo Mitsui Bank, N.Y.,
       0.10%, 2/4/14 50,000,000 50,000,000
Sumitomo Mitsui Bank, N.Y.,
       0.21%, 4/30/14 90,000,000 90,000,000
Svenska Handelsbanken NY,
       0.22%, 3/24/14 30,000,000 30,000,206
Svenska Handelsbanken, N.Y.,
       0.17%, 4/14/14 25,000,000 25,000,249
Toronto Dominion Bank, N.Y.,
       0.21%, 6/17/14 (a) 13,000,000 13,000,000
Toronto Dominion Bank, N.Y.,
       0.23%, 7/28/14 (a) 20,000,000 20,000,000
Toronto Dominion Bank, N.Y.,
       0.22%, 11/18/14 (a) 55,000,000 55,000,000
1,699,308,174
   
TOTAL CERTIFICATES OF DEPOSIT    
       (COST $1,699,308,174) 1,699,308,174
Commercial Paper and Notes — 31.6%    
Banking — 13.5%
Australia & New Zealand
       Banking Group Ltd., 0.28%,
       4/15/14 (a)(b) 25,000,000 25,000,000
Australia & New Zealand
       Banking Group Ltd., 0.30%,
       1/16/15 (a)(b) 25,000,000 25,000,000
Bank of Nova Scotia Houston,
       0.19%, 3/26/14 (c) 50,000,000 49,986,382
Bank of Nova Scotia Houston,
       0.22%, 4/25/14 (c) 20,000,000 19,990,086
Bank of Tokyo-Mitsubishi UFJ,
       N.Y., 0.19%, 4/14/14 (c) 25,000,000 24,990,500
Banque et Caisse d'Epargne de
       I'Etat, 0.13%, 3/6/14 (c) 25,000,000 24,997,021
Commonwealth Bank of
       Australia, 0.24%, 5/16/14 (a) 10,000,000 10,000,000
Commonwealth Bank of
       Australia, 0.24%, 9/11/14 (a)(b) 40,000,000 40,000,000
DnB NOR Bank ASA, N.Y.,
       0.17%, 4/1/14 (b)(c) 25,000,000 24,993,035
Kookmin Bank, N.Y., 0.25%,
       2/6/14 (b)(c) 20,000,000 19,999,306
Kookmin Bank, N.Y., 0.24%,
       3/3/14 (b)(c) 10,000,000 9,998,000
Kookmin Bank, N.Y., 0.26%,
       3/5/14 (b)(c) 11,000,000 10,997,458
Korea Development Bank, N.Y.,
       0.30%, 5/22/14 (c) 10,000,000 9,990,833
Nordea Bank AB, 0.18%,
       3/26/14 (b)(c) 65,000,000 64,983,254
Nordea Bank AB, 0.22%,
       6/5/14 (b)(c) 30,000,000 29,977,784
Nordea Bank AB, 0.21%,
       6/12/14 (b)(c) 45,000,000 44,965,613
Oversea-Chinese Bank Corp.
       Ltd., 0.20%, 4/3/14 (c) 20,000,000 19,993,222
Svenska Handelsbank, Inc.,
       0.25%, 2/4/14 (b)(c) 20,000,000 19,999,583
Svenska Handelsbank, Inc.,
       0.16%, 3/27/14 (b)(c) 15,000,000 14,996,400
United Overseas Bank Ltd.,
       0.22%, 3/10/14 (b)(c) 25,000,000 24,994,347

See notes to schedules of portfolio investments.


HSBC PRIME MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
Commercial Paper and Notes — 31.6%, continued
Banking, continued
United Overseas Bank Ltd.,  
       0.22%, 6/26/14 (b)(c)   28,000,000 27,975,189
Westpac Securities NZ Ltd.,
       0.17%, 3/12/14 (b)(c) 32,136,000 32,130,082
Westpac Securities NZ Ltd.,
       0.17%, 3/27/14 (b)(c) 40,000,000 39,989,800
Westpac Securities NZ Ltd.,
       0.28%, 4/11/14 (a)(b) 29,000,000 29,000,208
644,948,103
Diversified — 6.3%  
Caisse Centrale Desjardins du
       Quebec, 0.24%, 2/19/14 (b)(c) 20,000,000 19,997,600
Caisse Centrale Desjardins du  
       Quebec, 0.17%, 4/9/14 (b)(c) 20,000,000 19,993,858
Caisse Centrale Desjardins du
       Quebec, 0.18%, 4/15/14 (b)(c) 25,000,000 24,990,875
Caisse des Depots et
       Consignations, 0.17%,
       3/4/14 (c) 30,000,000 29,995,608
Caisse des Depots et
       Consignations, 0.17%,
       4/16/14 (c) 20,000,000 19,993,011
Caisse des Depots et
       Consignations, 0.35%,
       8/29/14 (b)(c) 30,000,000 29,939,042
Erste Abwicklungsanstalt,
       0.20%, 2/5/14 (b)(c) 85,000,000 84,998,112
Erste Abwicklungsanstalt,
       0.35%, 2/12/14 (b)(c) 15,000,000 14,998,396
Erste Abwicklungsanstalt,
       0.13%, 2/19/14 (b)(c) 19,000,000 18,998,765
Erste Abwicklungsanstalt,
       0.16%, 2/20/14 (b)(c) 30,000,000 29,997,467
Erste Abwicklungsanstalt,
       0.17%, 4/2/14 (b)(c) 9,000,000 8,997,450
302,900,184
Finance — 11.8%
Antalis US Funding Corp.,
       0.23%, 4/16/14 (b)(c) 19,000,000 18,991,017
ASB Finance Ltd., 0.18%,
       3/4/14 (b)(c) 20,000,000 19,996,900
ASB Finance Ltd., 0.27%,
       9/2/14 (a)(b) 25,000,000 25,000,000
BNZ International Funding,
       0.22%, 6/13/14 (b)(c) 30,000,000 29,975,800
National Australia Funding,
       0.22%, 2/20/14 (b)(c) 20,000,000 19,997,731
National Australia Funding,
       0.14%, 3/26/14 (b)(c) 40,000,000 39,991,756
Natixis US Finance Co. LLC,
       0.10%, 2/3/14 (c) 180,000,000 179,999,000
Nieuw Amsterdam Receivables
       Corp., 0.18%, 2/3/14 (b)(c) 20,000,000 19,999,806
Rabobank USA Finance Corp.,
       0.21%, 4/2/14 (c) 70,000,000 69,975,500
Rabobank USA Finance Corp.,
       0.23%, 7/7/14 (c) 45,000,000 44,955,150
Sheffield Receivables, 0.19%,
       2/19/14 (b)(c) 25,000,000 24,997,625
Toyota Motor Credit Corp.,
       0.24%, 2/4/14 (c) 23,000,000 22,999,540
Toyota Motor Credit Corp.,
       0.28%, 5/9/14 (c) 20,000,000 19,984,911
Toyota Motor Credit Corp.,
       0.26%, 8/8/14 (c) 25,000,000 24,966,056
561,830,792
 
TOTAL COMMERCIAL PAPER AND NOTES
       (COST $1,509,679,079) 1,509,679,079
Corporate Obligations — 6.0%
Banking — 4.2%
Bank of America N.A., 0.19%,
       3/10/14 35,000,000 35,000,000
JPMorgan Chase Bank N.A.,
       0.34%, 2/18/15 25,000,000 25,000,000
JPMorgan Chase Bank N.A.,
       0.36%, 12/21/14 20,000,000 20,000,000
U.S. BanCorp, 4.20%, 5/15/14,
       MTN 20,733,000 20,971,848
Wells Fargo Bank N.A., 0.29%,
       1/10/15 40,000,000 40,000,000
Wells Fargo Bank N.A., 0.29%,
       2/13/15, MTN 60,000,000 60,000,000
200,971,848
Finance — 1.6%
General Electric Capital Corp.,
       5.50%, 6/4/14, MTN 23,733,000 24,150,609
General Electric Capital Corp.,
       5.90%, 5/13/14 19,380,000 19,686,524
MetLife Institutional Funding,
       0.61%, 1/6/15 (a)(b) 34,400,000 34,521,096
78,358,229
Household Products — 0.2%
The Procter & Gamble Co.,
       0.70%, 8/15/14 7,250,000 7,266,617
 
TOTAL CORPORATE OBLIGATIONS
        (COST $286,596,694) 286,596,694
Yankee Dollars — 1.5%
Banking — 1.1%
Westpac Banking Corp., 0.38%,
       1/31/15 (a) 35,000,000 35,000,000
Westpac Banking Corp., 0.98%,
       3/31/14 (a)(b) 15,750,000 15,767,873
50,767,873
Commercial Banks — 0.5%
Commonwealth Bank of
       Australia, 0.97%, 3/17/14 (a)(b) 12,500,000 12,511,131
Commonwealth Bank of
       Australia, 2.13%, 3/17/14 (b) 10,000,000 10,022,075
22,533,206
 
TOTAL YANKEE DOLLARS (COST $73,301,079) 73,301,079

See notes to schedules of portfolio investments.


HSBC PRIME MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
Time Deposits — 18.0%
Abbey National Treasury  
       Services, 0.09%, 2/3/14 100,000,000 100,000,000
ABN AMRO Bank NV, 0.08%,
       2/3/14 150,000,000 150,000,000
Australia & New Zealand Bank,  
       0.04%, 2/3/14 150,000,000 150,000,000
Bank of Tokyo-Mitsubishi UFJ,
       N.Y., 0.07%, 2/3/14   70,000,000 70,000,000
Credit Industriel et Commercial,
       N.Y., 0.09%, 2/3/14 100,000,000 100,000,000
Credit Agricole CIB, N.Y.,  
       0.09%, 2/3/14 126,000,000 126,000,000
Nordea Bank AB, 0.03%,
       2/3/14 75,000,000 75,000,000
Sumitomo Mitsui Bank, N.Y.,
       0.05%, 2/3/14 90,000,000 90,000,000
 
TOTAL TIME DEPOSITS
       (Cost $861,000,000) 861,000,000
U.S. Treasury Obligations — 7.8%
U.S. Treasury Bills — 1.1%
       0.08%, 3/6/14 (d) 50,000,000 49,996,311
U.S. Treasury Notes — 6.7%
       0.38%, 11/15/14 20,000,000 20,034,847
       1.75%, 3/31/14 50,000,000 50,124,315
       1.88%, 2/28/14 50,000,000 50,062,616
       2.25%, 5/31/14 50,000,000 50,342,126
       2.38%, 8/31/14 50,000,000 50,634,369
       2.38%, 9/30/14 100,000,000 101,451,864
  322,650,137
       
TOTAL U.S. TREASURY OBLIGATIONS
       (COST $372,646,448) 372,646,448
TOTAL INVESTMENT SECURITIES
       (COST $4,802,531,474) — 100.5% 4,802,531,474

Percentages indicated are based on net assets of $4,780,669,625.

(a)         Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on January 31, 2014. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the Fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(b)   Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c)   Rate presented represents the effective yield at time of purchase.
(d)   Discount note. Rate presented represents the effective yield at time of purchase.
MTN   Medium Term Note
LLC   Limited Liability Company

See notes to schedules of portfolio investments.


HSBC U.S. GOVERNMENT MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
U.S. Government and Government Agency Obligations — 28.8%
Federal Farm Credit Bank — 7.9%
       0.02%, 2/10/14 (a) 18,000,000 17,999,633
       0.04%, 2/3/14 (b) 90,000,000 89,999,801
       0.10%, 3/26/14 (a) 23,500,000 23,500,056
       0.10%, 10/24/14 (a) 18,000,000 17,999,326
       0.12%, 5/26/15 (a) 50,000,000 50,000,000
       0.12%, 6/6/14 (a) 30,000,000 29,998,956  
       0.16%, 6/11/14 15,000,000 14,999,344
       0.17%, 2/27/15 (a) 3,695,000   3,696,200
       0.20%, 7/24/15 (a) 22,150,000 22,172,225
       2.13%, 3/5/14   50,000,000 50,094,275
320,459,816
Federal Home Loan Bank — 10.0%
       0.03%, 2/7/14 (b) 50,000,000 49,999,750
       0.09%, 6/27/14 (a) 15,000,000 14,999,398
       0.10%, 9/2/14 (a) 15,000,000 14,999,561
       0.11%, 3/19/14 (b) 101,000,000 100,986,450
       0.11%, 6/5/14 (a) 75,000,000 74,998,552
       0.13%, 3/27/14 18,000,000 17,999,019
       0.13%, 7/25/14 15,000,000 14,996,656
       0.14%, 6/16/14 (a) 30,000,000 30,000,604
       0.16%, 3/3/14 (b) 45,000,000 44,994,188
       0.17%, 3/24/14 (b) 15,000,000 14,996,494
       0.19%, 7/22/14 25,000,000 24,998,477
403,969,149
Federal Home Loan Mortgage Corp. — 9.4%
       0.09%, 3/17/14 (b) 83,350,000 83,341,341
       0.12%, 6/18/14 (b) 25,000,000 24,988,583
       0.14%, 10/16/15 (a) 160,000,000 160,000,000
       0.15%, 11/25/15 (a) 75,000,000 75,000,000
       0.21%, 2/27/15 40,000,000 40,000,000
383,329,924
Federal National Mortgage Association — 1.5%
       0.09%, 2/5/14 (b) 12,734,000 12,733,868
       0.34%, 1/27/15 (a) 3,065,000 3,071,881
       0.46%, 11/21/14 (a) 6,000,000 6,017,059
       0.63%, 10/30/14 31,573,000 31,681,764
       0.88%, 8/28/14 7,500,000 7,529,952
61,034,524
 
TOTAL U.S. GOVERNMENT AND GOVERNMENT
       AGENCY OBLIGATIONS
       (COST $1,168,793,413) 1,168,793,413
U.S. Treasury Obligations — 32.2%
U.S. Treasury Bills — 3.7%
       0.13%, 4/24/14 (b) 150,000,000 149,956,438
U.S. Treasury Notes — 28.5%
       0.25%, 3/31/14 100,000,000 100,026,880
       0.38%, 11/15/14 45,000,000 45,078,568
       0.50%, 10/15/14 34,500,000 34,591,697
       1.25%, 2/15/14 225,000,000 225,098,304
       1.25%, 3/15/14 250,000,000 250,344,512
       1.25%, 4/15/14 15,000,000 15,032,499
       1.75%, 3/31/14 115,000,000 115,298,000
       2.25%, 1/31/15 65,000,000 66,347,126
       2.38%, 9/30/14 250,000,000 253,614,591
       4.25%, 11/15/14 50,000,000 51,603,827
1,157,036,004
 
TOTAL U.S. TREASURY OBLIGATIONS
       (COST $1,306,992,442) 1,306,992,442
 
Repurchase Agreements — 36.9%
Barclays Capital Group,
       purchased on 1/31/14,
       0.03%, due on 2/4/14 with
       a maturity value of
       $250,000,833,
       collateralized by various
       U.S. Government and
       Government Agency
       Obligations, 0.00%-8.00%,
       4/15/15-12/20/62, fair
       value $255,000,000 250,000,000 250,000,000
Barclays Capital Group,
       purchased on 1/31/14,
       0.02%, due on 2/3/14 with
       a maturity value of
       $200,000,333,
       collateralized by various
       U.S. Treasury Obligations,
       2.13%-2.38%, 8/31/14-
       8/15/21, fair value
       $204,031,317 200,000,000 200,000,000
BNP Paribas, purchased on    
       1/31/14, 0.03%, due on
       2/7/14 with a maturity
       value of $300,001,750,
       collateralized by various
       U.S. Government and
       Government Agency
       Obligations, 2.75%-7.00%,
       4/1/17-11/1/47, fair value
       $306,000,001 300,000,000 300,000,000
Citigroup Global Markets,
       purchased on 1/31/14,
       0.02%, due on 2/3/14 with
       a maturity value of
       $150,000,250,
       collateralized by various
       U.S. Treasury Obligations,
       1.25%-2.38%, 11/30/18-
       1/15/27, fair value
       $153,000,015 150,000,000 150,000,000
Citigroup Global Markets,
       purchased on 1/31/14,
       0.03%, due on 2/3/14 with
       a maturity value of
       $100,000,250,
       collateralized by various
       U.S. Government and
       Government Agency
       Obligations, 2.21%-5.00%,
       10/1/20-9/1/43, fair value
       $102,000,001 100,000,000 100,000,000

See notes to schedules of portfolio investments.


HSBC U.S. GOVERNMENT MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
Repurchase Agreements — 36.9%, continued
Deutsche Bank, purchased on
       1/31/14, 0.03%, due on
       2/3/14 with a maturity
       value of $300,000,750,
       collateralized by various
       U.S. Government and  
       Government Agency  
       Obligations, 3.00%-6.00%,      
       6/1/26-5/20/43, fair value
       $306,000,001 300,000,000 300,000,000
Societe Generale, purchased
       on 1/31/14, 0.03%, due
       on 2/3/14 with a maturity
       value of $200,000,500,
       collateralized by various
       U.S. Treasury Obligations,
       0.38%-8.75%, 3/15/15-
       2/15/41, fair value
       $204,000,099 200,000,000 200,000,000
 
TOTAL REPURCHASE AGREEMENTS
       (COST $1,500,000,000) 1,500,000,000
TOTAL INVESTMENT SECURITIES
       (COST $3,975,785,855) — 97.9% 3,975,785,855

Percentages indicated are based on net assets of $4,062,918,386.

(a)         Variable rate security. The rate presented represents the rate in effect on January 31, 2014. These securities are deemed to have a maturity remaining until the next adjustment of the interest rate or the longer of the demand period or time to the next readjustment.
(b)   Discount note. Rate presented represents the effective yield at time of purchase.

See notes to schedules of portfolio investments.


HSBC U.S. TREASURY MONEY MARKET FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal Amortized
      Amount ($)       Cost ($)    
U.S. Treasury Obligations — 96.0%
U.S. Treasury Bills — 5.7%
       0.00%, 2/13/14 (a) 8,000,000 8,000,000
       0.04%, 3/13/14 (a) 50,000,000 49,997,778
       0.06%, 4/3/14 (a) 50,000,000 49,994,917  
107,992,695
U.S. Treasury Notes — 90.3%
       0.10%, 1/31/16 (b) 50,000,000 49,994,943
       0.25%, 3/31/14 450,000,000 450,124,376
       0.63%, 7/15/14 30,000,000   30,061,651
       1.25%, 2/15/14 250,000,000 250,113,491
       1.25%, 3/15/14 300,000,000 300,405,273
       1.75%, 3/31/14 525,000,000 526,375,368
       2.38%, 8/31/14 25,000,000 25,317,410
       2.38%, 9/30/14 30,000,000 30,439,800
       2.38%, 10/31/14 25,000,000 25,415,729
       4.00%, 2/15/14 10,000,000 10,014,907
       4.25%, 11/15/14 15,000,000 15,480,416
1,713,743,364
 
TOTAL U.S. TREASURY OBLIGATIONS
       (COST $1,821,736,059) 1,821,736,059
TOTAL INVESTMENT SECURITIES
       (COST $1,821,736,059) — 96.0% 1,821,736,059

Percentages indicated are based on net assets of $1,897,667,699.

(a)         Discount note. Rate presented represents the effective yield at time of purchase.
(b)   Variable rate security. The rate presented represents the rate in effect on January 31, 2014. These securities are deemed to have a maturity remaining until the next adjustment of the interest rate or the longer of the demand period or time to the next readjustment.

See notes to schedules of portfolio investments.


HSBC AGGRESSIVE STRATEGY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Shares       Value ($)    
Affiliated Investment Companies — 2.0%      
HSBC Emerging Markets Debt Fund,
       Class I Shares 13,026 127,520
HSBC Prime Money Market Fund,
       Class I Shares, 0.03% (a) 230,895 230,895
 
TOTAL AFFILIATED INVESTMENT COMPANIES  
       (COST $363,028) 358,415
Affiliated Portfolios — 11.6%
HSBC Growth Portfolio 1,339,791
HSBC Opportunity Portfolio 728,137
 
TOTAL AFFILIATED PORTFOLIOS 2,067,928
Unaffiliated Investment Companies — 42.1%
Artisan Value Fund, Investor Shares 68,579 880,561
Brookfield Global Listed Real Estate
       Fund, Institutional Shares 10,132 120,262
Brown Advisory Growth Equity Fund,
       Institutional Shares 48,044 880,164
Columbia High Yield Bond Fund,
       Class Z Shares 208,793 622,205
CRM Small/Mid Cap Value Fund,
       Institutional Shares 41,637 720,742
Delaware Emerging Markets Fund,
       Institutional Shares 64,623 979,688
JPMorgan Equity Income Fund, Select
       Shares 106,109   1,329,542
JPMorgan High Yield Fund, Select
       Shares 77,859 622,872
Principal Global Real Estate Securities
       Fund, Institutional Shares 14,445 117,294
Trilogy Emerging Markets Equity Fund,
       Institutional Shares 150,606 1,201,839
 
TOTAL UNAFFILIATED INVESTMENT COMPANIES
       (COST $6,999,984) 7,475,169
Exchange Traded Funds — 44.6%
iShares MSCI EAFE Index Fund 40,364 2,567,554
iShares MSCI Emerging Markets Index
       Fund 6,274 239,604
PowerShares Global Listed Private
       Equity Portfolio ETF 60,684 704,541
SPDR S&P 500 ETF Trust 24,663 4,394,454
 
TOTAL EXCHANGE TRADED FUNDS
       (COST $6,830,425) 7,906,153
TOTAL INVESTMENT SECURITIES — 100.3% 17,807,665

Percentages indicated are based on net assets of $17,754,688.

(a)         The rate represents the annualized one-day yield that was in effect on January 31, 2014.
ETF        

Exchange Traded Fund

SPDR        

Standard & Poor's Depositary Receipt

See notes to schedules of portfolio investments.


HSBC BALANCED STRATEGY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Shares       Value ($)    
Affiliated Investment Companies — 10.9%
HSBC Emerging Markets Debt Fund,
       Class I Shares 293,302 2,871,430
HSBC Emerging Markets Local Debt  
       Fund, Class I Shares 173,574 1,425,040
HSBC Prime Money Market Fund,
       Class I Shares, 0.03% (a) 939,195 939,195
 
TOTAL AFFILIATED INVESTMENT COMPANIES
       (COST $5,671,971) 5,235,665
Affiliated Portfolios — 8.4%
HSBC Growth Portfolio 2,614,843
HSBC Opportunity Portfolio 1,425,537
 
TOTAL AFFILIATED PORTFOLIOS 4,040,380
Unaffiliated Investment Companies — 46.1%
Artisan Value Fund, Investor Shares 134,270 1,724,028
Brookfield Global Listed Real Estate
       Fund, Institutional Shares 83,751 994,119
Brown Advisory Growth Equity Fund,
       Institutional Shares 93,193 1,707,297
Columbia High Yield Bond Fund,  
       Class Z Shares 1,079,205 3,216,031
CRM Small/Mid Cap Value Fund,
       Institutional Shares 80,601 1,395,207
Delaware Emerging Markets Fund,  
       Institutional Shares 85,928 1,302,674
Janus Flexible Bond Fund,
       Institutional Shares 28,337 296,684
JPMorgan Equity Income Fund,
       Select Shares 206,510 2,587,565
JPMorgan High Yield Fund, Select
       Shares 402,064 3,216,510
Lord Abbett Core Fixed Income Fund,
       Institutional Shares 38,212 414,576
Metropolitan West Total Return Bond,
       Institutional Shares 27,819 297,109
PIMCO Commodity RealReturn
       Strategy Fund, Institutional
       Shares 273,991 1,515,173
PIMCO Total Return Fund,
       Institutional Shares 51,146 553,400
Principal Global Real Estate
       Securities Fund, Institutional
       Shares 123,978 1,006,705
T. Rowe Price New Income Fund,
       Retail Shares 43,666 410,898
Trilogy Emerging Markets Equity
       Fund, Institutional Shares 199,038 1,588,321
 
TOTAL UNAFFILIATED INVESTMENT COMPANIES
       (COST $21,979,905) 22,226,297
Exchange Traded Funds — 34.8%
iShares iBoxx $ Investment Grade
       Corporate Bond 5,332 620,325
iShares MSCI EAFE Index Fund 91,433 5,816,053
iShares MSCI Emerging Markets
       Index Fund 12,949 494,522
PowerShares Global Listed Private
       Equity Portfolio ETF 111,394 1,293,284
SPDR S&P 500 ETF Trust 48,001 8,552,819
  
TOTAL EXCHANGE TRADED FUNDS
       (COST $14,610,298) 16,777,003
TOTAL INVESTMENT SECURITIES — 100.2% 48,279,345

Percentages indicated are based on net assets of $48,163,139.

(a)        

The rate represents the annualized one-day yield that was in effect on January 31, 2014.

ETF        

Exchange Traded Fund

SPDR        

Standard & Poor's Depositary Receipt


See notes to schedules of portfolio investments.


HSBC MODERATE STRATEGY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Shares       Value ($)    
Affiliated Investment Companies — 12.4%
HSBC Emerging Markets Debt Fund,
       Class I Shares 270,913 2,652,239
HSBC Emerging Markets Local Debt  
       Fund, Class I Shares 198,651 1,630,928
HSBC Prime Money Market Fund,
       Class I Shares, 0.03% (a) 1,012,962 1,012,962
 
TOTAL AFFILIATED INVESTMENT COMPANIES
       (COST $5,702,766) 5,296,129
Affiliated Portfolios — 5.6%
HSBC Growth Portfolio 1,546,812
HSBC Opportunity Portfolio 838,940
 
TOTAL AFFILIATED PORTFOLIOS 2,385,752
Unaffiliated Investment Companies — 55.9%  
Artisan Value Fund, Investor Shares 80,309 1,031,164
ASG Global Alternatives Fund -
       Class Y Shares 29,039 321,171
Brookfield Global Listed Real Estate
       Fund, Institutional Shares 69,905 829,770
Brown Advisory Growth Equity Fund,
       Institutional Shares 56,322 1,031,821
Columbia High Yield Bond Fund,
       Class Z Shares 964,079   2,872,956
CRM Small/Mid Cap Value Fund,
       Institutional Shares 48,643 842,016
Delaware Emerging Markets Fund,
       Institutional Shares 52,493 795,801
Janus Flexible Bond Fund,
       Institutional Shares 118,838 1,244,229
JPMorgan Equity Income Fund,
       Select Shares 122,850 1,539,310
JPMorgan High Yield Fund, Select
       Shares 360,543 2,884,344
Lord Abbett Core Fixed Income Fund,
       Institutional Shares 160,946 1,746,262
Metropolitan West Total Return Bond,
       Institutional Shares 114,660 1,224,570
PIMCO Commodity RealReturn
       Strategy Fund, Institutional
       Shares 287,125 1,587,801
PIMCO Total Return Fund,
       Institutional Shares 214,908 2,325,308
Principal Global Real Estate
       Securities Fund, Institutional
       Shares 104,172 845,880
T. Rowe Price New Income Fund,
       Retail Shares 183,441 1,726,178
Trilogy Emerging Markets Equity
       Fund, Institutional Shares 126,894 1,012,617
 
TOTAL UNAFFILIATED INVESTMENT COMPANIES
       (COST $24,099,404) 23,861,198
Exchange Traded Funds — 26.1%
iShares iBoxx $ Investment Grade
       Corporate Bond 3,771 438,718
iShares MSCI EAFE Index Fund 74,831 4,760,000
iShares MSCI Emerging Markets
       Index Fund 7,276 277,870
PowerShares Global Listed Private
       Equity Portfolio ETF 52,626 610,988
SPDR S&P 500 ETF Trust 28,328 5,047,483
 
TOTAL EXCHANGE TRADED FUNDS
       (COST $9,680,452) 11,135,059
TOTAL INVESTMENT SECURITIES — 100.0% 42,678,138

Percentages indicated are based on net assets of $42,658,648.

(a)        The rate represents the annualized one-day yield that was in effect on January 31, 2014.
ETF       

Exchange Traded Fund

SPDR       

Standard & Poor's Depositary Receipt

See notes to schedules of portfolio investments.


HSBC CONSERVATIVE STRATEGY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Shares       Value ($)    
Affiliated Investment Companies — 12.4%
HSBC Emerging Markets Debt Fund,
       Class I Shares 118,155 1,156,734
HSBC Emerging Markets Local Debt
       Fund, Class I Shares 105,833 868,891
HSBC Prime Money Market Fund,
       Class I Shares, 0.03% (a) 501,297 501,297
 
TOTAL AFFILIATED INVESTMENT COMPANIES
       (COST $2,732,558) 2,526,922
Affiliated Portfolios — 3.5%
HSBC Growth Portfolio 458,448
HSBC Opportunity Portfolio 249,369
 
TOTAL AFFILIATED PORTFOLIOS 707,817
Unaffiliated Investment Companies — 65.9%
Artisan Value Fund, Investor Shares 23,554   302,432  
ASG Global Alternatives Fund -
       Class Y Shares 37,373 413,344
Brookfield Global Listed Real Estate        
       Fund, Institutional Shares 32,979   391,466  
Brown Advisory Growth Equity Fund,
       Institutional Shares 16,637 304,796
Columbia High Yield Bond Fund,        
       Class Z Shares 421,383   1,255,723  
CRM Small/Mid Cap Value Fund,
       Institutional Shares 14,561 252,049
Delaware Emerging Markets Fund,        
       Institutional Shares 6,261   94,916  
Janus Flexible Bond Fund, Institutional
       Shares 108,574 1,136,766
JPMorgan Equity Income Fund, Select        
       Shares 36,184   453,389  
JPMorgan High Yield Fund, Select
       Shares 157,321 1,258,571
Lord Abbett Core Fixed Income Fund,        
       Institutional Shares 146,950   1,594,407  
Metropolitan West Total Return Bond,
       Institutional Shares 107,383 1,146,853
PIMCO Commodity RealReturn        
       Strategy Fund, Institutional        
       Shares 112,567   622,494  
PIMCO Total Return Fund, Institutional
       Shares 197,546 2,137,448
Principal Global Real Estate Securities        
       Fund, Institutional Shares 48,325   392,400  
T. Rowe Price New Income Fund,
       Retail Shares 169,141 1,591,618
Trilogy Emerging Markets Equity Fund,        
       Institutional Shares 14,436   115,196  
 
TOTAL UNAFFILIATED INVESTMENT COMPANIES
       (COST $13,457,065) 13,463,868
Exchange Traded Funds — 18.3%
iShares iBoxx $ Investment Grade
       Corporate Bond 2,679 311,675
iShares MSCI EAFE Index Fund 30,363 1,931,391
SPDR S&P 500 ETF Trust 8,369 1,491,188
 
TOTAL EXCHANGE TRADED FUNDS
       (COST $3,244,208)     3,734,254  
TOTAL INVESTMENT SECURITIES — 100.1% 20,432,861

Percentages indicated are based on net assets of $20,404,870.

(a)         The rate represents the annualized one-day yield that was in effect on January 31, 2014.
ETF        

Exchange Traded Fund

SPDR        

Standard & Poor's Depositary Receipt

See notes to schedules of portfolio investments.


HSBC INCOME STRATEGY FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Shares       Value ($)    
Affiliated Investment Companies — 10.2%
HSBC Emerging Markets Debt Fund,
       Class I Shares 4,821 47,196
HSBC Emerging Markets Local Debt
       Fund, Class I Shares 7,184 58,983
HSBC Prime Money Market Fund,
       Class I Shares, 0.03% (a) 26,454 26,454
 
TOTAL AFFILIATED INVESTMENT COMPANIES
       (COST $146,342) 132,633
Unaffiliated Investment Companies — 87.1%
Brookfield Global Listed Real Estate
       Fund, Institutional Shares 2,469 29,312
Columbia High Yield Bond Fund,
       Class Z Shares 19,043 56,748
Eaton Vance Floating-Rate Fund,
       Institutional Shares 5,544 51,005
Federated Strategic Value Dividend
       Fund, Institutional Shares 9,954 56,739
Janus Flexible Bond Fund, Institutional
       Shares 9,813 102,738
JPMorgan Equity Income Fund, Select
       Shares 4,423 55,415
JPMorgan High Yield Fund, Select
       Shares 7,073 56,583
Lord Abbett Core Fixed Income Fund,
       Institutional Shares 13,261 143,880
Metropolitan West Total Return Bond,
       Institutional Shares 9,627 102,816
PIMCO Total Return Fund, Institutional
       Shares 17,834 192,959
Principal Global Real Estate Securities
       Fund, Institutional Shares 3,574 29,022
T. Rowe Price International Growth &
       Income Fund, Retail Shares 6,962 104,993
T. Rowe Price New Income Fund, Retail
       Shares 15,307 144,036
 
TOTAL UNAFFILIATED INVESTMENT COMPANIES
       (COST $1,136,823) 1,126,246
Exchange Traded Fund — 1.5%
iShares iBoxx $ Investment Grade
       Corporate Bond 168 19,545
 
TOTAL EXCHANGE TRADED FUND (COST $19,930) 19,545
TOTAL INVESTMENT SECURITIES (COST $1,303,095) — 98.8% 1,278,424

Percentages indicated are based on net assets of $1,294,186.

(a)         The rate represents the annualized one-day yield that was in effect on January 31, 2014.

See notes to schedules of portfolio investments.


HSBC EMERGING MARKETS DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal  
      Amount ($)       Value ($)    
Corporate Obligation — 0.0%
Pemex Project Funding Master Trust,  
       6.63%, 6/15/35 10,000 10,433
 
TOTAL CORPORATE OBLIGATION
       (COST $10,888) 10,433
Yankee Dollars — 97.3%
Brazil — 7.5%  
Banco ABC Brasil SA, 7.88%, 4/8/20 100,000 99,000
Banco do Brasil SA, Registered,
       5.88%, 1/26/22 450,000 425,813
Banco Nacional de Desenvolvimento
       Economico e Social, 5.75%,
       9/26/23 (a) 200,000 194,750
Banco Votorantim, Registered,
       5.25%, 2/11/16 200,000 206,250
Caixa Economica Federal, 4.50%,
       10/3/18 (a) 150,000 147,000
Federal Republic of Brazil, 4.25%,
       1/7/25 650,000 606,774
Federal Republic of Brazil, 8.25%,
       1/20/34 180,000 225,000
Federal Republic of Brazil, 7.13%,
       1/20/37 540,000 604,800
Federal Republic of Brazil, 5.63%,
       1/7/41 100,000 95,000
Petrobras International Finance Co.,
       5.75%, 1/20/20 50,000 51,582
Vale Overseas Ltd., 6.88%, 11/21/36 100,000 101,969
Votorantim Cimentos SA, Registered,
       7.25%, 4/5/41 200,000 185,000
2,942,938
Chile — 1.0%          
CorpBanca SA, 3.13%, 1/15/18 200,000 191,998
Empresa Nacional de Petroleo,          
       Registered, 4.75%, 12/6/21   220,000   218,343  
410,341
China — 2.2%          
CNOOC Curtis Funding No.1 Pty
       Ltd., 4.50%, 10/3/23 (a) 200,000 197,700
Sinopec Capital (2013) Ltd., 3.13%,          
       4/24/23 (a)   200,000   178,924  
Sinopec Group Overseas
       Development (2013) Ltd.,
       4.38%, 10/17/23 (a) 500,000 492,563
        869,187  
Colombia — 5.8%
Bancolombia SA, 5.95%, 6/3/21   100,000   104,250  
Grupo Aval Ltd., Registered, 4.75%,
       9/26/22 200,000 185,500
Republic of Colombia, 4.38%,          
       7/12/21   740,000   751,100  
Republic of Colombia, 2.63%,
       3/15/23 , Callable 12/15/22 @ 100 500,000 435,000
Republic of Colombia, 4.00%,          
       2/26/24   200,000   190,500  
Republic of Colombia, 8.13%,
       5/21/24 300,000 379,500
Republic of Colombia, 6.13%,          
       1/18/41   250,000   260,625  
2,306,475
Croatia — 2.7%          
Croatia, Registered, 6.75%, 11/5/19 500,000 533,125
Croatia, Registered, 6.63%, 7/14/20   100,000   105,500  
Croatia, Registered, 6.38%, 3/24/21 400,000 414,000
        1,052,625  
Dominican Republic — 0.3%
Dominican Republic, 7.50%, 5/6/21   100,000   109,125  
El Salvador — 0.6%
Republic of El Salvador, 7.75%,
       1/24/23 (b) 225,000 241,313
Gabon — 0.5%
Gabonese Republic, 6.38%,
       12/12/24 (a) 200,000 205,500
Hungary — 1.1%
Republic of Hungary, 6.38%, 3/29/21 130,000 138,450
Republic of Hungary, 5.38%, 2/21/23 300,000 293,250
431,700
India — 0.5%
Vedanta Resources plc, Registered,
       7.13%, 5/31/23 200,000 178,750
Indonesia — 11.7%
Majapahit Holding BV, 8.00%, 8/7/19 125,000 138,750
PT Pertamina (Persero) Tbk, 4.30%,
       5/20/23 (a) 200,000 169,500
PT Pertamina Tbk, Registered,
       4.88%, 5/3/22 400,000 365,000
Republic of Indonesia, 6.88%,
       1/17/18 575,000 640,406
Republic of Indonesia, 3.38%,
       4/15/23 (a) 350,000 299,250
Republic of Indonesia, 5.38%,
       10/17/23 (a) 500,000 497,500
Republic of Indonesia, 5.88%,
       1/15/24 (a) 200,000 203,750
Republic of Indonesia, Registered,
       5.88%, 3/13/20 1,150,000 1,213,249
Republic of Indonesia, Registered,
       3.75%, 4/25/22 525,000 473,813
Republic of Indonesia, Registered,
       5.38%, 10/17/23, MTN 200,000 199,000
Republic of Indonesia, Registered,
       8.50%, 10/12/35 100,000 119,250
Republic of Indonesia, Registered,
       6.63%, 2/17/37 175,000 173,688
Republic of Indonesia, Registered,
       7.75%, 1/17/38 100,000 111,250
4,604,406
Iraq — 0.5%
Republic of Iraq, Registered, 5.80%,
       1/15/28 , Callable 3/23/14 @ 100 250,000 210,000

See notes to schedules of portfolio investments.


HSBC EMERGING MARKETS DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Principal                
Amount ($) Value ($)
Yankee Dollars, continued
Ireland (Republic of) — 0.5%
Vnesheconombank, Registered,
       5.38%, 2/13/17   200,000 210,140
Kazakhstan — 1.0%
Development Bank of Kazakhstan,
       4.13%, 12/10/22 (a) 200,000 179,000
Kazakhstan Temir Zholy, Registered,
       6.95%, 7/10/42 200,000   197,500
376,500
Lebanon — 0.3%
Republic of Lebanon, Registered,
       Series 42, 8.25%, 4/12/21 100,000 111,460
Lithuania — 1.0%
Republic of Lithuania, Registered,
       6.13%, 3/9/21 150,000 169,095
Republic of Lithuania, Registered,
       6.63%, 2/1/22 200,000 232,250
401,345
Mexico — 13.2%
Banco Santander SA, 4.13%,
       11/9/22 (a) 150,000 140,250
Comision Federal de Electricidad,
       4.88%, 1/15/24 (a) 200,000 197,500
Petroleos Mexicanos, 5.50%,
       1/21/21 1,000,000 1,065,000
Petroleos Mexicanos, 4.88%,
       1/18/24 (a) 50,000 49,762
Petroleos Mexicanos, 6.50%, 6/2/41 200,000 204,525
Petroleos Mexicanos, 5.50%,
       6/27/44 30,000 26,826
Petroleos Mexicanos, 6.38%,
       1/23/45 (a) 50,000 50,005
United Mexican States, 3.63%,
       3/15/22 300,000 295,200
United Mexican States, 4.00%,
       10/2/23 1,280,000 1,260,800
United Mexican States, Series A,
       6.05%, 1/11/40 1,286,000 1,363,159
United Mexican States, 5.55%,
       1/21/45 590,000 582,625
5,235,652
Namibia — 0.5%
Namibia International Bond,
       Registered, 5.50%, 11/3/21 200,000 200,500
Nigeria — 0.5%
Republic of Nigeria, 6.38%, 7/12/23 (a) 200,000 204,040
Panama — 3.4%
Republic of Panama, 5.20%, 1/30/20 875,000 950,250
Republic of Panama, 7.13%, 1/29/26 200,000 240,000
Republic of Panama, 4.30%, 4/29/53 200,000 152,000
1,342,250
Paraguay — 0.5%
Republic of Paraguay, 4.63%,
       1/25/23 (c) 200,000 192,500
Peru — 2.3%    
Banco de Credito del Peru,
       Registered, 4.25%, 4/1/23 70,000 64,050
Republic of Peru, 7.13%, 3/30/19 100,000 119,250
Republic of Peru, 7.35%, 7/21/25 100,000 124,500  
Republic of Peru, 8.75%, 11/21/33 110,000 154,550
Republic of Peru, 6.55%, 3/14/37 390,000 443,625
905,975
Philippines — 1.5%
Republic of Philippines, 4.00%,
       1/15/21 250,000 258,125
Republic of Philippines, 4.20%,
       1/21/24 200,000 202,000
Republic of Philippines, 7.75%,
       1/14/31 100,000 132,000
592,125
Poland — 1.1%
Republic of Poland, 5.13%, 4/21/21 265,000 288,320
Republic of Poland, 5.00%, 3/23/22 130,000 139,100
427,420
Republic of Serbia — 0.5%
Republic of Serbia, Registered,
       7.25%, 9/28/21 200,000 210,040
Romania — 0.4%
Romania, 6.13%, 1/22/44 (a) 150,000 146,250
Russian Federation — 12.9%
Alfa Issuance Ltd., Series E, 8.00%,
       3/18/15, MTN 100,000 106,290
Gazprom OAO, Registered, 9.25%,
       4/23/19 125,000 150,938
Gazprom OAO, Registered, 6.51%,
       3/7/22 100,000 105,500
Gazprom OAO, Registered, 7.29%,
       8/16/37 100,000 104,125
RSHB Capital SA, 6.30%, 5/15/17 475,000 501,719
Russia Foreign Bond, 4.88%,
       9/16/23 (a) 400,000 401,000
Russia Foreign Bond, Registered,
       7.50%, 3/31/30 2,599,025 2,992,777
RZD Capital Ltd., Series E, 5.74%,
       4/3/17 500,000 537,000
Sberbank, Registered, 5.18%,
       6/28/19 200,000 207,500
5,106,849
South Africa — 4.7%
Republic of South Africa, 6.88%,
       5/27/19 350,000 393,750
Republic of South Africa, 5.50%,
       3/9/20 175,000 184,625
Republic of South Africa, 5.88%,
       5/30/22 200,000 211,000
Republic of South Africa, 4.67%,
       1/17/24 640,000 604,800
Republic of South Africa, 5.88%,
       9/16/25 450,000 460,125
1,854,300
Sri Lanka — 0.5%
Bank of Ceylon, Registered, 6.88%,
       5/3/17 200,000 204,500
Turkey — 11.3%
Republic of Turkey, 5.63%, 3/30/21 1,975,000 1,972,530
Republic of Turkey, 5.13%, 3/25/22 1,175,000 1,122,713

See notes to schedules of portfolio investments.


HSBC EMERGING MARKETS DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Principal          
Amount ($) Value ($)
Yankee Dollars, continued
Turkey, continued  
Republic of Turkey, 7.38%, 2/5/25 540,000 585,225  
Republic of Turkey, 6.75%, 5/30/40   100,000 98,300
Republic of Turkey, 6.00%, 1/14/41 325,000 290,063
Turkiye Is Bankasi AS, 3.88%,
       11/7/17 (a) 200,000 188,540
Turkiye Vakiflar Bankasi TAO, 5.00%,
       10/31/18 (a) 200,000 188,000
4,445,371
Uruguay — 0.9%
Republic of Uruguay, PIK, 7.88%,
       1/15/33 260,000 321,425
Republic of Uruguay, PIK, 7.63%,
       3/21/36 40,000 48,650
370,075
Venezuela — 5.9%
Bolivarian Republic of Venezuela,
       7.65%, 4/21/25 90,000 52,200
Bolivarian Republic of Venezuela,
       9.25%, 5/7/28 815,000 513,450
Bolivarian Republic of Venezuela,
       Registered, 9.00%, 5/7/23 210,000 134,400
Republic of Venezuela, 7.00%,
       12/1/18 100,000 68,000
Republic of Venezuela, 7.75%,
       10/13/19 1,545,000 1,027,425
Republic of Venezuela, 9.25%,
       9/15/27 500,000 330,000
Republic of Venezuela, Registered,
       8.25%, 10/13/24 235,000 141,000
Republic of Venezuela, Registered,
       7.00%, 3/31/38 100,000 55,500
2,321,975
 
TOTAL YANKEE DOLLARS
       (COST $39,804,503) 38,421,627
 
Shares
Investment Company — 0.8%
Northern Institutional Diversified
       Assets Portfolio, Institutional
       Shares, 0.01% (d) 316,837 316,837
 
TOTAL INVESTMENT COMPANY
       (COST $316,837) 316,837
TOTAL INVESTMENT SECURITIES
       (COST $40,132,228) — 98.1% 38,748,897

Percentages indicated are based on net assets of $39,490,248.
(a)        Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(b)        This security has been deemed illiquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c)        Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed illiquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(d)        The rate represents the annualized one-day yield that was in effect on January 31, 2014.
MTN        Medium Term Note
PIK        Payment-in-Kind


The Fund invested, as a percentage of net assets at value, in the following industries, as of January 31, 2014:

Percentage of
Net Assets at    
Industry    Value (%)
Sovereign Bonds 75.7
Oil, Gas & Consumable Fuels 8.6
Commercial Banks 8.3
Transportation Infrastructure 1.9
Electric Utilities 0.9
Metals & Mining 0.8
Investment Company 0.8
Capital Markets 0.5
Trading Companies & Distributors 0.5
Diversified Financial Services 0.1
Total 98.1

See notes to schedules of portfolio investments.


HSBC EMERGING MARKETS DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

The following tables reflect the open derivative positions held by the Fund as of January 31, 2014.

Futures Contracts

                              Unrealized
  Expiration   Number of Notional Appreciation/
Description   Type Date Contracts Value (Depreciation)
10-Year U.S. Treasury Note March Future Long   3/21/14   21 $ 2,640,750 $ 1,924
$ 2,640,750 $ 1,924


Credit Default Swap Agreements - Sell Protection(a)

Implied Credit Unrealized
Spread at Notional Upfront Premiums Appreciation/
Expiration   January 31, 2014 Amount   Fixed Rate   Value   Paid/(Received)   (Depreciation)
Underlying Instrument   Counterparty   Date   (%)(b)   ($)(c)   (%)   ($)   ($)   ($)
Federative Republic of Brazil   Barclays Bank PLC   9/20/16 1.49   550,000 1.00 (3,647 ) (11,666 ) 8,019
Federative Republic of Brazil Barclays Bank PLC 6/20/18 1.91 300,000 1.00 (10,185 ) (8,671 ) (1,514 )
Federative Republic of Brazil JPMorgan Chase Bank N.A. 6/20/18 1.91 500,000 1.00 (16,975 ) (9,814 ) (7,161 )
People's Republic of China JPMorgan Chase Bank N.A. 9/20/16 0.47 500,000 1.00 7,026 (4,641 ) 11,667
People's Republic of China JPMorgan Chase Bank N.A. 9/20/16 0.47 500,000 1.00 7,026 (3,227 ) 10,253
      (16,755 )                    (38,019 )              21,264

(a)        When a credit event occurs as defined under the terms of the swap agreement, the Fund as a seller of credit protection will either (i) pay to the buyer of protection an amount equal to the par value of the defaulted reference entity and take delivery of the reference entity or (ii) pay a net amount equal to the par value of the defaulted reference entity less its recovery value. Alternatively, the Fund as a buyer of credit protection will either (i) receive from the seller of protection an amount equal to the par value of the defaulted reference entity and deliver the reference entity to the seller or (ii) receive a net amount equal to the par value of the defaulted reference entity less its recovery value.
(b) Implied credit spread, represented in absolute terms, utilized in determining the fair value of the credit default swap agreements as of period end serve as an indicator of the current status of the payment/performance risk and represents the likelihood or risk of default for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement.
(c) The notional amount represents the maximum potential amount of future payments that the Fund may receive as a buyer of credit protection if a credit event occurs, as defined under the terms of the swap agreement. Alternatively, the notional amount represents the maximum potential amount the Fund could be required to make as a seller of credit protection if a credit event occurs, as defined under the terms of the swap agreement.

See notes to schedules of portfolio investments.


Forward Foreign Currency Exchange Contracts

Unrealized
Contract Contract Appreciation/
Delivery Amount Value Value (Depreciation)
Short Contracts     Counterparty   Date   (Local Currency)   ($)   ($)   ($)
Brazilian Real Barclays Bank PLC 2/4/14 355,871 155,000 147,346 7,654
Brazilian Real Barclays Bank PLC 2/4/14 453,915 204,062 187,940 16,122
Brazilian Real Barclays Bank PLC 2/4/14 480,023 197,841 198,750 (909 )
Brazilian Real Barclays Bank PLC 2/4/14 2,019,738 848,095 836,257 11,838
Brazilian Real Standard Chartered Bank 2/4/14 98,797 43,000 40,906 2,094
Brazilian Real Standard Chartered Bank 2/4/14 905,848 373,345 375,060 (1,715 )
Brazilian Real Standard Chartered Bank 2/4/14 1,542,450 635,721 638,640 (2,919 )
2,457,064 2,424,899 32,165
 
Unrealized
Contract Contract Appreciation/
  Delivery   Amount Value   Value (Depreciation)
Long Contracts     Counterparty   Date   (Local Currency)   ($)   ($)   ($)
Brazilian Real Barclays Bank PLC 2/4/14 355,871 146,672 147,346 674
Brazilian Real Barclays Bank PLC 2/4/14 453,915 187,081 187,940 859
Brazilian Real Barclays Bank PLC 2/4/14 480,023 207,000 198,750 (8,250 )
Brazilian Real Barclays Bank PLC 2/4/14 2,019,738 832,435 836,257 3,822
Brazilian Real Barclays Bank PLC 4/2/14 2,019,738 837,232 823,798 (13,434 )
Brazilian Real Standard Chartered Bank 2/4/14 98,797 40,719 40,906 187
Brazilian Real Standard Chartered Bank 2/4/14 905,848 396,502 375,060 (21,442 )
Brazilian Real Standard Chartered Bank 2/4/14 1,542,450 650,000 638,640 (11,360 )
Mexican Peso Barclays Bank PLC 4/8/14 1,573,920 119,991 117,082 (2,909 )
South African Rand Barclays Bank PLC 6/11/14 23,898 2,143 2,107 (36 )
Turkish Lira Barclays Bank PLC 4/7/14 542,947 246,000 235,878 (10,122 )
Turkish Lira Standard Chartered Bank 4/7/14 340,340 154,000 147,857 (6,143 )
3,819,775 3,751,621              (68,154 )


HSBC EMERGING MARKETS LOCAL DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal
      Amount ($)       Value ($)    
Foreign Bonds — 61.1%†
Brazil — 8.6%  
Nota do Tesouro Nacional,  
       Series F, 10.00%, 1/1/17 6,400,000   2,493,790
Colombia — 1.3%
Republic of Colombia, 9.85%,
       6/28/27 650,000,000 391,089
Indonesia — 8.5%
Indonesia Government, Series
       FR28, 10.00%, 7/15/17 9,100,000,000 784,739
Indonesia Government, Series
       FR70, 8.38%, 3/15/24 6,830,000,000 544,218
Indonesia Government, Series
       FR56, 8.38%, 9/15/26 9,605,000,000 728,941
Indonesia Government, Series
       FR65, 6.63%, 5/15/33 6,890,000,000 417,747
2,475,645
Malaysia — 4.3%
Malaysian Government, Series
       0111, 4.16%, 7/15/21 305,000 90,795
Malaysian Government, Series
       0112, 3.42%, 8/15/22 3,850,000 1,078,805
Malaysian Government, Series
       0412, 4.13%, 4/15/32 340,000 94,294
1,263,894
Mexico — 5.0%
Mexican Bonos Desarr, Series
       M10, 8.50%, 12/13/18 (a) 5,060,700 427,766
Mexican Bonos Desarr, Series
       M20, 10.00%, 12/5/24 (a) 7,246,500 679,940
Mexican Bonos Desarr, Series
       M30, 8.50%, 11/18/38 (a) 2,600,000 210,583
Mexican Bonos Desarr, Series M,
       7.75%, 11/13/42 (a) 2,000,000 149,539
1,467,828
Peru — 2.9%
Peru Bono Soberano, 9.91%,
       5/5/15 515,000 195,875  
Republic of Peru, Registered,
       6.95%, 8/12/31 1,500,000 503,283
Republic of Peru, Registered,
       6.90%, 8/12/37 400,000 131,086
830,244
Poland — 4.8%    
Poland Government Bond, Series
       1021, 5.75%, 10/25/21 1,040,000 354,646
Poland Government Bond, Series
       0922, 5.75%, 9/23/22 660,000 224,833
Poland Government Bond, Series
       0429, 5.75%, 4/25/29 2,350,000 803,528
1,383,007
Russian Federation — 5.6%
Russia Government Bond, Series
       6206, 7.40%, 6/14/17 (a) 6,000,000 170,623
Russia Government Bond, Series
       6215, 7.00%, 8/16/23 (a) 56,000,000 1,467,350
1,637,973
South Africa — 3.0%
Republic of South Africa, Series
       R203, 8.25%, 9/15/17 2,477,000 224,640
Republic of South Africa, Series
       R213, 7.00%, 2/28/31 1,800,000 130,134
Republic of South Africa, Series
       R209, 6.25%, 3/31/36 8,000,000 514,525
869,299
Thailand — 10.9%
Thailand Government Bond,
       4.13%, 11/18/16 91,500,000 2,873,839
Thailand Government Bond,
       3.63%, 6/16/23 9,000,000 265,952
3,139,791
Turkey — 6.2%
Turkey Government Bond, Series
       5Y, 6.30%, 2/14/18 (a) 2,500,000 952,391
Turkey Government Bond, Series
       CPI, 3.00%, 1/6/21 240,000 128,283
Turkey Government Bond,
       9.50%, 1/12/22 (a) 590,000 252,175
Turkey Government Bond, Series
       CPI, 3.00%, 2/23/22 1,000,000 482,069
1,814,918
 
TOTAL FOREIGN BONDS
       (COST $21,293,621) 17,767,478
Yankee Dollars — 6.4%
Brazil — 0.5%
Petrobras Global Finance BV,
       2.00%, 5/20/16 150,000 148,636
China — 0.7%
CNOOC Finance (2013) Ltd.,
       1.13%, 5/9/16 200,000 199,623
Luxembourg — 1.1%
VTB Bank OJSC (VTB Capital
       SA), Registered, 6.47%,
       3/4/15 300,000 314,580
Russian Federation — 2.0%
Alfa Issuance Ltd., Series E,
       8.00%, 3/18/15, MTN 300,000 318,870
Sberbank of Russia (SB Capital
       SA), 5.50%, 7/7/15 250,000 264,225
583,095
Turkey — 2.1%
Republic of Turkey, 7.00%,
       9/26/16 565,000 615,171
 
TOTAL YANKEE DOLLARS
       (COST $1,876,660) 1,861,105
U.S. Treasury Obligation — 2.6%
U.S. Treasury Bills, 0.04%,
       6/26/14 750,000 749,873
 
TOTAL U.S. TREASURY OBLIGATION
       (COST $749,849) 749,873

See notes to schedules of portfolio investments.


HSBC EMERGING MARKETS LOCAL DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)   
Investment Company — 27.0%
Northern Institutional Diversified  
       Assets Portfolio, Institutional
       Shares, 0.01% (b)   7,851,888 7,851,888
 
TOTAL INVESTMENT COMPANY  
       (COST $7,851,888)     7,851,888
TOTAL INVESTMENT SECURITIES
       (COST $31,772,018) — 97.1% 28,230,344

Percentages indicated are based on net assets of $29,087,555.

†       

The principal amount is disclosed in local currency and the value is disclosed in U.S. Dollars.

(a)       

Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on January 31, 2014. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the Fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.

(b)       

The rate represents the annualized one-day yield that was in effect on January 31, 2014.

MTN       

Medium Term Note


See notes to schedules of portfolio investments.


The Fund invested, as a percentage of net assets at value, in the following industries, as of January 31, 2014:

Percentage of
Net Assets
Industry         at Value (%)   
Sovereign Bonds 63.2
Investment Company   27.0
Commercial Banks 3.1  
U.S. Treasury Obligation 2.6
Oil, Gas & Consumable Fuels 1.2
Total 97.1


HSBC EMERGING MARKETS LOCAL DEBT FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

The following tables reflect the open derivative positions held by the Fund as of January 31, 2014.

Interest Rate Swap Agreements

Unrealized
Pay/Receive Fixed Notional Notional Appreciation/
Floating Rate   Expiration Amount Amount Value (Depreciation)
Rate    Floating Rate Index    (%)    Date    Counterparty    (Local)    ($)    ($)    ($)   
Pay 1-Year BRL CDI 9.71 1/2/15 Barclays Bank PLC 5,700,000 BRL 2,362,401 (28,547 ) (28,547 )
Pay 1-Year BRL CDI 9.96 1/2/15 JPMorgan Chase Bank N.A. 5,100,000 BRL 2,113,727 (20,124 ) (20,124 )
Pay 3-Month ZAR-JIBAR-SAFEX 5.94 8/8/15 JPMorgan Chase Bank N.A. 17,000,000 ZAR 1,531,325   (26,871 ) (26,871 )
Pay 1-Month MXN-TIIE-Banxico 4.33 9/8/15 Barclays Bank PLC 24,603,000 MXN 1,839,889 (641 ) (641 )
Pay   3-Month ZAR-JIBAR-SAFEX 6.27 11/12/15 JPMorgan Chase Bank N.A. 16,600,000 ZAR 1,495,293 (24,892 )   (24,892 )
Pay 1-Year BRL CDI 10.94   1/2/16 Barclays Bank PLC 5,700,000   BRL   2,362,401 (42,076 ) (42,076 )
Receive 1-Month MXN-TIIE-Banxico   4.38 1/21/16 Barclays Bank PLC 30,000,000 MXN 2,243,494 3,578 3,578
Receive 1-Month MXN-TIIE-Banxico 4.34 1/26/16 Barclays Bank PLC   30,000,000 MXN 2,243,494 5,785 5,785
Pay 1-Year ZAR-JIBAR-SAFEX 5.98 1/24/18 Barclays Bank PLC 20,000,000 ZAR 1,801,558 (127,868 ) (127,868 )
Pay 3-Month MYR-KLIBOR-BNM 3.52 1/25/18 Standard Chartered Bank 2,200,000 MYR 657,698 (7,815 ) (7,815 )
Pay 3-Month MYR-KLIBOR-BNM 3.24 5/3/18 Standard Chartered Bank 1,500,000 MYR 448,430 (11,091 ) (11,091 )
Pay 1-Month MXN-TIIE-Banxico 5.67 1/17/19 Barclays Bank PLC 13,000,000 MXN 972,181 (2,670 ) (2,670 )
Pay 1-Month MXN-TIIE-Banxico 5.66 1/22/19   Barclays Bank PLC 13,000,000 MXN 972,181 (3,583 ) (3,583 )
Pay 1-Year BRL CDI 10.02 1/4/21 Barclays Bank PLC 2,400,000 BRL 994,695 (76,296 ) (76,296 )
Pay 1-Month MXN-TIIE-Banxico 6.69 12/23/21 Barclays Bank PLC 6,250,000 MXN 467,395 2,303 2,303
Pay 1-Month MXN-TIIE-Banxico 6.38 7/11/23 Credit Suisse International 14,000,000 MXN 1,046,964 (34,635 ) (34,635 )
Pay 1-Month MXN-TIIE-Banxico 6.47 9/12/23 JPMorgan Chase Bank N.A. 6,000,000 MXN 448,699 (13,153 ) (13,153 )
Pay 1-Month MXN-TIIE-Banxico 6.21 10/6/23 Barclays Bank PLC 10,000,000 MXN 747,831 (36,784 ) (36,784 )
(445,380 ) (445,380 )

See notes to schedules of portfolio investments.


Forward Foreign Currency Exchange Contracts

Unrealized
Contract Contract Appreciation/
Delivery Amount Value Value (Depreciation)
Short Contracts     Counterparty   Date   (Local Currency)   ($)   ($)   ($)   
Brazilian Real Barclays Bank PLC 2/4/14 328,104 147,000 135,849 11,151
Brazilian Real Barclays Bank PLC 2/4/14 355,500 146,519 147,192 (673 )
Brazilian Real Barclays Bank PLC 2/4/14 968,887 422,000 401,160 20,840
Brazilian Real Barclays Bank PLC 2/4/14 994,290 446,992 411,678 35,314
Brazilian Real Barclays Bank PLC 2/4/14 1,604,713 661,383 664,420 (3,037 )
Brazilian Real Barclays Bank PLC 2/4/14 2,008,629 843,430 831,658   11,772
Brazilian Real Standard Chartered Bank 2/4/14 271,117 118,000 112,254 5,746
Brazilian Real Standard Chartered Bank 2/4/14 2,610,813   1,076,047 1,080,988 (4,941 )
Chilean Peso Standard Chartered Bank 2/14/14 326,312,040 598,189   586,729 11,460
Chinese Yuan JPMorgan Chase Bank N.A. 2/20/14 430,290 70,000 70,982 (982 )
Chinese Yuan   Standard Chartered Bank 2/20/14 3,791,712 622,000 625,496 (3,496 )
Colombian Peso Barclays Bank PLC 2/28/14 1,140,388,345 567,357 565,153 2,204
Colombian Peso Barclays Bank PLC 2/28/14 1,195,350,000 613,000 592,390 20,610
European Euro Barclays Bank PLC 3/19/14 45,473 61,589 61,325 264
European Euro Standard Chartered Bank 3/19/14 437,000 595,865 589,342 6,523
Hungarian Forint Standard Chartered Bank 2/6/14   209,457,712 937,590 905,436 32,154
Indonesian Rupiah Barclays Bank PLC 2/7/14 752,700,000 65,000 61,603 3,397
Indonesian Rupiah Barclays Bank PLC 4/15/14 1,446,600,000 120,000 117,008 2,992
Indonesian Rupiah Standard Chartered Bank   2/7/14 400,160,000 34,304 32,750 1,554
Indonesian Rupiah Standard Chartered Bank 10/17/14 1,152,860,000 91,497 89,924 1,573
Korean Won Barclays Bank PLC 7/15/14 651,600,000 609,884 605,811 4,073
Korean Won JPMorgan Chase Bank N.A. 2/6/14 651,600,000 602,998 608,756 (5,758 )
Malaysian Ringgit Barclays Bank PLC 2/10/14 7,447,889 2,276,250 2,225,366 50,884
Mexican Peso Barclays Bank PLC 2/4/14 2,975,000 222,438 222,414 24
Mexican Peso Barclays Bank PLC 2/5/14 990,000 74,074 74,008 66
Mexican Peso Barclays Bank PLC 2/5/14 993,000 74,181 74,232 (51 )
Mexican Peso Barclays Bank PLC 2/5/14 993,000 74,181 74,232 (51 )
Mexican Peso Barclays Bank PLC 2/5/14 1,980,000 148,582 148,016 566
Mexican Peso JPMorgan Chase Bank N.A. 4/8/14 9,127,735 692,255 679,002 13,253
Peruvian Nuevo Sol Standard Chartered Bank 2/20/14 1,357,373 486,863 479,416 7,447
Peruvian Nuevo Sol Standard Chartered Bank 10/7/14 441,000 150,000 150,862 (862 )
Peruvian Nuevo Sol Standard Chartered Bank 10/7/14 699,847 239,387 239,411 (24 )
Philippine Peso Standard Chartered Bank 2/25/14 8,118,880 179,304 179,119 185
Polish Zloty Barclays Bank PLC 2/3/14 97,000 31,033 30,790 243
Polish Zloty Standard Chartered Bank 3/4/14 398,905 130,000 126,397 3,603
Russian Ruble Standard Chartered Bank 2/6/14 13,936,495 424,021 396,290 27,731
Russian Ruble Standard Chartered Bank 7/14/14 12,945,970 377,918 356,291 21,627
Singapore Dollar Barclays Bank PLC 4/10/14 352,471 278,000 276,152 1,848
Singapore Dollar Standard Chartered Bank 4/10/14 390,472 308,000 305,924 2,076
South African Rand Standard Chartered Bank 2/3/14 300,000 26,858 27,012 (154 )
Taiwan Dollar Barclays Bank PLC 10/16/14 8,872,500 297,186 295,650 1,536
Taiwan Dollar JPMorgan Chase Bank N.A. 2/7/14 8,872,500 304,270 292,947 11,323
Thai Baht Standard Chartered Bank 6/17/14 25,682,033 772,508 773,270 (762 )
17,017,953 16,724,705             293,248


Unrealized
Contract Contract Appreciation/
Delivery Amount Value Value (Depreciation)
Long Contracts     Counterparty   Date   (Local Currency)   ($)   ($)   ($)
Brazilian Real Barclays Bank PLC 2/4/14 328,104 135,228 135,849 621
Brazilian Real Barclays Bank PLC 2/4/14 355,500 150,000 147,192 (2,808 )
Brazilian Real Barclays Bank PLC 2/4/14 968,887 399,327 401,160 1,833
Brazilian Real Barclays Bank PLC 2/4/14 994,290 409,797 411,678 1,881
Brazilian Real Barclays Bank PLC 2/4/14 1,604,713 692,000 664,420 (27,580 )
Brazilian Real Barclays Bank PLC 2/4/14 2,008,629 827,857 831,658 3,801
Brazilian Real   Barclays Bank PLC 4/2/14 2,008,629 832,627 819,267 (13,360 )
Brazilian Real Standard Chartered Bank 2/4/14 271,117 111,741 112,254 513
Brazilian Real Standard Chartered Bank 2/4/14 2,610,813 1,142,788   1,080,988 (61,800 )
Brazilian Real Standard Chartered Bank 4/2/14 368,850 150,000 150,444 444
Chilean Peso Bank of America 2/14/14 326,312,040 618,894 586,729 (32,165 )
Chilean Peso Standard Chartered Bank 5/28/14 326,312,040 592,014 580,296 (11,718 )
Chinese Yuan Standard Chartered Bank 2/20/14 22,077 3,618 3,642 24
Chinese Yuan Standard Chartered Bank 2/20/14 4,199,925 683,192 692,836   9,644
Colombian Peso Barclays Bank PLC 8/4/14 1,140,388,345 559,837 557,398 (2,439 )
Colombian Peso Standard Chartered Bank 2/28/14 2,335,738,345 1,228,237 1,157,543 (70,694 )
Hungarian Forint Barclays Bank PLC 2/6/14 19,874,700 90,000 85,914 (4,086 )
Hungarian Forint Standard Chartered Bank 2/6/14 189,583,012 853,094 819,523 (33,571 )
Hungarian Forint Standard Chartered Bank 7/23/14 98,091,000 420,000 418,747 (1,253 )
Hungarian Forint Standard Chartered Bank 7/23/14 209,457,712 928,591 894,168 (34,423 )
Indian Rupee Barclays Bank PLC   3/24/14 9,197,790   147,000 145,105 (1,895 )
Indian Rupee Standard Chartered Bank 3/24/14 532,280 8,338 8,397 59
Indian Rupee Standard Chartered Bank 3/24/14 18,064,100 290,000 284,980 (5,020 )
Indonesian Rupiah Standard Chartered Bank 2/7/14   1,152,860,000 96,960 94,354 (2,606 )
Korean Won Barclays Bank PLC 2/6/14 651,600,000 615,297 608,756 (6,541 )
Malaysian Ringgit Barclays Bank PLC 7/16/14 7,447,889 2,257,141 2,205,006 (52,135 )
Malaysian Ringgit JPMorgan Chase Bank N.A. 2/10/14 224,588 70,000 67,105 (2,895 )
Malaysian Ringgit Standard Chartered Bank 2/10/14 493,865 156,000 147,563 (8,437 )
Malaysian Ringgit Standard Chartered Bank 2/10/14 6,729,436 2,105,449 2,010,699 (94,750 )
Malaysian Ringgit Standard Chartered Bank 7/16/14 202,337 61,000 59,903 (1,097 )
Mexican Peso Barclays Bank PLC 4/8/14 990,000 73,705 73,645 (60 )
Mexican Peso Barclays Bank PLC 4/8/14 993,000 73,813 73,868 55
Mexican Peso Barclays Bank PLC 4/8/14 993,000 73,813 73,868 55
Mexican Peso Barclays Bank PLC 4/8/14 1,980,000 147,849 147,290 (559 )
Mexican Peso Barclays Bank PLC 4/8/14 2,975,000 221,321 221,307 (14 )
Mexican Peso Barclays Bank PLC 4/8/14 30,591,615 2,332,211 2,275,677 (56,534 )
Mexican Peso Standard Chartered Bank 4/8/14 919,000 69,743 68,363 (1,380 )
Peruvian Nuevo Sol Standard Chartered Bank 2/20/14 657,526 233,000 232,235 (765 )
Peruvian Nuevo Sol Standard Chartered Bank 2/20/14 699,847 246,990 247,182 192
Philippine Peso Standard Chartered Bank 2/25/14 8,118,880 188,680 179,119 (9,561 )
Philippine Peso Standard Chartered Bank 7/30/14 8,118,880 178,791 178,869 78
Polish Zloty Barclays Bank PLC 6/5/14 97,000 30,808 30,553 (255 )
Polish Zloty Standard Chartered Bank 3/4/14 3,863,561 1,240,527 1,224,207 (16,320 )
Romanian Leu Standard Chartered Bank 3/4/14 1,113,572 338,523 333,514 (5,009 )
Russian Ruble Barclays Bank PLC 2/6/14 990,525 30,000 28,166 (1,834 )
Russian Ruble Credit Suisse 7/14/14 50,870,498 1,422,553 1,400,028 (22,525 )
Russian Ruble Standard Chartered Bank 2/6/14 12,945,970 387,697 368,124 (19,573 )
Singapore Dollar Standard Chartered Bank 4/10/14 743,683 584,974 582,656 (2,318 )
South African Rand Barclays Bank PLC 6/11/14 27,706,933 2,484,815 2,442,392 (42,423 )
South African Rand JPMorgan Chase Bank N.A. 4/15/14 1,633,353 145,000 145,476 476
South African Rand Standard Chartered Bank 4/15/14 3,845,282 349,000 342,482 (6,518 )
South African Rand Standard Chartered Bank 6/11/14 300,000 26,309 26,445 136
Taiwan Dollar Barclays Bank PLC 2/7/14 8,872,500 295,356 292,947 (2,409 )
Turkish Lira Barclays Bank PLC 4/7/14 710,496 320,000 308,668 (11,332 )
Turkish Lira Barclays Bank PLC 4/7/14 743,534 334,000 323,021 (10,979 )
Turkish Lira Standard Chartered Bank 4/7/14 1,792,603 802,167 778,778 (23,389 )
29,267,672 28,582,454            (685,218 )


HSBC FRONTIER MARKETS FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Common Stocks — 80.9%
Cambodia — 1.0%
NagaCorp Ltd. 1,102,000 1,054,438
Colombia — 1.7%
Banco Davivienda SA 139,633   1,482,922
Ecopetrol SA 175,062 305,809  
1,788,731
Croatia — 0.5%
Hrvatski Telekom dd 18,622 558,428
Egypt — 1.2%
Centamin plc (a) 1,097,037 789,006
Global Telecom Holding GDR (a) 136,808 508,980
1,297,986
Estonia — 0.4%
Tallink Group Ltd. 388,290 471,600
Georgia — 2.8%
Bank of Georgia Holdings plc 84,954 2,997,312
Kazakhstan — 1.5%
KazMunaiGas Exploration
       Production GDR (b) 108,164 1,564,851
Kenya — 1.0%
Safaricom Ltd. 8,668,900 1,104,346
Kuwait — 6.3%
Kuwait Projects Co. (Holding) KSC 1,056,875 2,459,869
Mabanee Co. SAKC 457,550 1,911,591
Mobile Telecommunications Co. 545,000 1,317,139
National Bank of Kuwait 342,850 1,144,988
6,833,587
Nigeria — 10.1%
Dangote Cement plc 1,115,592 1,604,456
Diamond Bank plc (a) 35,071,177 1,502,839
FBN Holdings plc 18,302,589 1,635,628
Guaranty Trust Bank plc 9,932,877 1,681,342
Nestle Foods Nigeria plc 217,516 1,509,689
Nigerian Breweries plc 1,171,588 1,131,203
Zenith Bank plc 12,855,509 1,855,215
10,920,372
Oman — 3.7%
Bank Muscat SAOG 1,384,457 2,358,402
Renaissance Services SAOG (a) 811,782 1,673,937
4,032,339
Pakistan — 11.0%
Bank Alfalah Ltd. 4,844,000 1,271,200
D.G. Khan Cement Co. Ltd. 3,084,500 2,803,903
Engro Corp. Ltd. (a) 1,700,300 2,875,691
MCB Bank Ltd. 291,745 786,482
Pakistan Petroleum Ltd. 873,050 1,834,650
The Hub Power Co. Ltd. 1,668,692 1,019,476
United Bank Ltd. 998,600 1,265,777
11,857,179
Peru — 2.1%
Credicorp Ltd. 17,400 2,295,408
Philippines — 4.0%
Cebu Air, Inc. 785,700 857,144
First Gen Corp. 3,525,900 1,216,350
Security Bank Corp. 484,924 1,210,509
SM Investments Corp. 68,935 1,066,516
4,350,519
Qatar — 13.9%
Doha Bank QSC 37,685 662,078
Gulf International Services QSC 52,535 1,092,816
Industries Qatar QSC 61,386 3,033,281
Qatar Electricity & Water Co. 27,145 1,349,692
Qatar Islamic Bank 105,524 2,175,108
Qatar National Bank (a) 69,416 3,514,683
Qatar Telecom (QTEL) QSC 74,796 3,049,795
14,877,453
Romania — 2.1%
SIF 5 Oltenia Craiova 3,940,000 2,223,964
Sri Lanka — 1.4%
John Keells Holdings plc 853,718 1,556,159
Turkmenistan — 2.0%
Dragon Oil plc 222,455 2,144,334
Ukraine — 0.0%
EastCoal, Inc. (a) 36,050 324
EastCoal, Inc. (a) 181,908 2,541
2,865
United Arab Emirates — 14.2%
Al Noor Hospitals Group plc (a) 27,903 385,758
Aramex PJSC 71,225 58,799
DAMAC Real Estate Development
       Ltd., GDR (a) 76,674 1,054,268
DP World Ltd. 119,104 2,171,391
Emaar Properties PJSC 1,747,678 3,804,117
First Gulf Bank PJSC 372,730 2,019,119
National Bank of Abu Dhabi 339,818 1,408,123
NMC Health plc 194,584 1,561,029
Union National Bank PJSC 1,493,956 2,792,946
15,255,550
TOTAL COMMON STOCKS
       (COST $79,236,324) 87,187,421
 
Principal
Amount ($)
Convertible Corporate Bonds — 0.0%
Oman — 0.0%
Bank Muscat SAOG, 4.50%, 3/20/16 45,141 12,428
Renaissance Services SAOG, 3.75%, 7/25/17 142,800 40,800
  53,228
TOTAL CONVERTIBLE CORPORATE BONDS
       (COST $74,763) 53,228
 
Shares
Warrants — 0.0%
Sri Lanka — 0.0%
John Keells Holdings plc , 11/12/15 (a) 1 1
John Keells Holdings plc , 11/11/16 (a) 1 –
1
Ukraine — 0.0%
EastCoal, Inc. , 5/31/15 (a) (c) 360,500 –
 
TOTAL WARRANTS
       (COST $–) 1

See notes to schedules of portfolio investments.


HSBC FRONTIER MARKETS FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal
      Amount ($)       Value ($)    
Participatory Notes — 12.0%
Netherlands — 0.0%
FTP Corp., 9/6/16, (JPMorgan  
       Chase) 20,310 53,586
Saudi Arabia — 7.8%
Etihad Etisalat Co., 9/27/16,
       (Deutsche Bank AG) 31,418 735,093
Samba Financial Group, 9/27/16,  
       (Deutsche Bank AG) 184,683 2,622,185
Saudi Dairy & Foodstuff Co.,
       3/25/15, (Merrill Lynch    
       International & Co.) 12,126 258,547
Saudi Dairy & Foodstuff Co.,
       4/30/15, (Citigroup Global Markets
       Holding, Inc.) 53,659 1,148,150
United Electronics Co., 2/13/15,
       (Citigroup Global Markets
       Holding, Inc.) 58,325 1,551,619
Yanbu National Petrochemical Co.,
       10/14/15, (Credit Suisse AG) 105,740 2,065,208
8,380,802
Vietnam — 4.2%
PetroVietnam Drilling & Well
       Services JSC, 9/6/16,
       (JPMorgan Chase) 696,058 2,382,468
Vietnam Dairy Products JSC,
       1/20/15, (Citigroup Global Markets
       Holding, Inc.) 314,599 2,109,386
4,491,854
TOTAL PARTICIPATORY NOTES
       (COST $11,781,896) 12,926,242
Shares
Investment Company — 6.1%
Northern Institutional Diversified
       Assets Portfolio, Institutional
       Shares, 0.01% (d) 6,534,552 6,534,552
TOTAL INVESTMENT COMPANY
       (COST $6,534,552) 6,534,552
TOTAL INVESTMENT SECURITIES
       (COST $97,627,535) — 99.0% 106,701,444

Percentages indicated are based on net assets of $107,820,724.

(a)       

Represents non-income producing security.

(b)       

Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.

(c)       

Security was valued in good faith pursuant to procedures approved by the Board of Trustees as of January 31, 2014. The total of all such securities represents less than 0.005% of net assets of the Fund.

(d)       

The rate represents the annualized one-day yield that was in effect on January 31, 2014.

GDR       

Global Depositary Receipt



The Fund invested, as a percentage of net assets at value, in the following industries, as of January 31, 2014:

Percentage of
Net Assets
Industry         at Value (%)    
Commercial Banks 37.1
Oil, Gas & Consumable Fuels 7.3
Diversified Financial Services 6.8
Investment Company 6.1  
Chemicals 4.6
Energy Equipment & Services 4.2
Construction Materials 4.1
Real Estate Management & Development 3.8
Food Products 3.6
Diversified Telecommunication Services 2.8
Industrial Conglomerates 2.4
Hotels, Restaurants & Leisure 2.2
Capital Markets 2.1
Independent Power Producers & Energy Traders 2.1
Health Care Providers & Services 1.8
Marine 1.7
Wireless Telecommunication Services 1.7
Multi-Utilities 1.3
Beverages 1.0
Airlines 0.8
Wireless Telecommunication Services 0.7
Metals & Mining 0.7
Air Freight & Logistics 0.1
Electronic Equipment, Instruments & Components 0.0
Total 99.0

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal          
Amount ($) Value ($)
Foreign Bonds — 3.9%†
Mexico — 3.4%
Mexican Bonos Desarr, Series M,  
       6.50%, 6/10/21 (a) 1,000,000 75,732
Mexican Bonos Desarr, Series  
       M20, 10.00%, 12/5/24 (a) 241,984,000 22,705,399
Mexican Bonos Desarr, Series
       M30, 10.00%, 11/20/36 (a) 711,800 66,210
  22,847,341
South Africa — 0.5%
Republic of South Africa, Series
       R203, 8.25%, 9/15/17 35,115,000 3,184,595
 
TOTAL FOREIGN BONDS
       (COST $27,112,354) 26,031,936
Yankee Dollars — 64.0%
Brazil — 9.7%
Banco Bradesco SA, Registered,
       4.10%, 3/23/15 9,000,000 9,168,750
Banco do Brasil SA, Registered,
       5.88%, 1/26/22 200,000 189,250
Banco do Estado do Rio Grande
       do Sul SA, Registered,
       7.38%, 2/2/22 1,900,000 1,852,500
Banco Nacional de
       Desenvolvimento Economico
       e Social, 5.75%, 9/26/23 (b) 2,200,000 2,142,250
Banco Votorantim, Registered,
       5.25%, 2/11/16 200,000 206,250
Caixa Economica Federal, 4.50%,
       10/3/18 (b) 2,200,000 2,156,000
Caixa Economica Federal,
       Registered, 2.38%, 11/6/17 3,750,000 3,468,750
Centrais Eletricas Brasileiras SA,
       Registered, 6.88%, 7/30/19 2,160,000 2,305,800
Centrais Eletricas Brasileiras SA,
       Registered, 5.75%, 10/27/21 2,775,000 2,622,375
Federal Republic of Brazil, 6.00%,
       1/17/17 5,900,000 6,519,500
Federal Republic of Brazil, 2.63%,
       1/5/23 14,025,000 11,949,299
Federal Republic of Brazil,
       11.00%, 8/17/40 , Callable
       8/17/15 @ – 100.00 900,000 1,022,400
Petrobras International Finance
       Co., 6.13%, 10/6/16 15,014,000 16,177,585
Petrobras International Finance
       Co., 7.88%, 3/15/19 800,000 904,600
Petrobras International Finance
       Co., 5.75%, 1/20/20 1,950,000 2,011,680
Votorantim Cimentos SA,
       Registered, 7.25%, 4/5/41 1,600,000 1,480,000
64,176,989
Canada — 0.2%
Harvest Operations Corp., 2.13%,
       5/14/18 (b) 1,100,000 1,081,212
Chile — 1.1%
Banco del Estado de Chile,
       2.00%, 11/9/17 (b) 2,600,000 2,580,397
Codelco, Inc., Registered, 7.50%,
       1/15/19 1,300,000 1,561,856
CorpBanca SA, 3.13%, 1/15/18 2,400,000 2,303,978
Empresa Nacional de Petroleo,
       Registered, 4.75%, 12/6/21 800,000 793,975
7,240,206
China — 3.3%
CNOOC Curtis Funding No.1 Pty
       Ltd., 4.50%, 10/3/23 (b) 1,425,000 1,408,613
CNOOC Finance (2013) Ltd.,
       1.13%, 5/9/16 1,300,000 1,297,547
CNPC General Capital Ltd.,
       1.45%, 4/16/16 (b) 800,000 801,209
Sinopec Capital (2013) Ltd.,
       1.25%, 4/24/16 (b) 3,300,000 3,289,945
Sinopec Group Overseas
       Development (2012) Ltd.,
       Registered, 3.90%, 5/17/22 10,000,000 9,746,509
Sinopec Group Overseas
       Development (2013) Ltd.,
       4.38%, 10/17/23 (b) 5,400,000 5,319,675
21,863,498
Colombia — 9.8%
Banco Davivienda SA,
       Registered, 2.95%, 1/29/18 5,000,000 4,835,000
Banco de Bogota SA, Registered,
       5.00%, 1/15/17 2,200,000 2,310,000
Bancolombia SA, 6.13%, 7/26/20 1,200,000 1,236,000
Bancolombia SA, 5.95%, 6/3/21 1,500,000 1,563,750
Grupo Aval Ltd., Registered,
       5.25%, 2/1/17 3,410,000 3,565,155
Grupo Aval Ltd., Registered,
       4.75%, 9/26/22 1,150,000 1,066,625
Republic of Colombia, 8.25%,
       12/22/14 1,040,000 1,103,700
Republic of Colombia, 7.38%,
       1/27/17 20,955,000 24,150,637
Republic of Colombia, 7.38%,
       3/18/19 14,930,000 17,785,362
Republic of Colombia, 4.38%,
       7/12/21 4,760,000 4,831,400
Republic of Colombia, 2.63%,
       3/15/23 , Callable 12/15/22
       @ 100.00 750,000 652,500
Republic of Colombia, 6.13%,
       1/18/41 1,330,000 1,386,525
64,486,654
Costa Rica — 0.2%
Republic of Costa Rica, 4.25%,
       1/26/23 (b) 1,200,000 1,080,000
Croatia — 1.0%
Croatia, Registered, 6.25%,
       4/27/17 900,000 954,000
Croatia, Registered, 6.75%,
       11/5/19 2,640,000 2,814,900
Croatia, Registered, 6.63%,
       7/14/20 400,000 422,000
Croatia, Registered, 6.38%,
       3/24/21 2,260,000 2,339,100
6,530,000

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal          
Amount ($) Value ($)
Yankee Dollars, continued
Dominican Republic — 0.1%  
Dominican Republic, 7.50%,
       5/6/21 600,000 654,750
Gabon — 0.3%
Gabonese Republic, 6.38%,
       12/12/24 (b) 2,200,000 2,260,500
India — 0.2%
Vedanta Resources plc,
       Registered, 6.75%, 6/7/16 1,400,000 1,453,200
Indonesia — 5.3%
PT Pertamina (Persero) Tbk,
       4.30%, 5/20/23 (b) 1,300,000 1,101,750
PT Pertamina Tbk, Registered,
       4.88%, 5/3/22 1,300,000 1,186,250
Republic of Indonesia, 3.38%,
       4/15/23 (b) 1,800,000   1,539,000
Republic of Indonesia, 5.88%,
       1/15/24 (b) 3,700,000 3,769,375
Republic of Indonesia,
       Registered, 7.25%, 4/20/15 4,784,000 5,077,020
Republic of Indonesia,
       Registered, 7.50%, 1/15/16 4,323,000 4,766,108
Republic of Indonesia,
       Registered, 5.88%, 3/13/20 2,990,000 3,154,450
Republic of Indonesia,
       Registered, 4.88%, 5/5/21 6,960,000 6,864,299
Republic of Indonesia,
       Registered, 3.75%, 4/25/22 3,825,000 3,452,063
Republic of Indonesia,
       Registered, 5.38%, 10/17/23 4,500,000 4,471,830
35,382,145
Iraq — 0.3%
Republic of Iraq, Registered,
       5.80%, 1/15/28, Callable
       3/23/14 @ 100.00 2,675,000 2,247,000
Kazakhstan — 2.1%
Development Bank of
       Kazakhstan, 4.13%,
       12/10/22 (b) 1,750,000 1,566,250
KazMunaiGaz Finance Sub B.V.,
       Registered, 11.75%, 1/23/15 11,281,000 12,330,133
13,896,383
Korea, Republic Of — 0.5%
Export-Import Bank of Korea,
       0.99%, 1/14/17 (a) 3,600,000 3,616,740
Lithuania — 0.2%
Republic of Lithuania, Registered,
       7.38%, 2/11/20 870,000 1,038,345
Luxembourg — 0.2%
VTB Bank OJSC (VTB Capital
       SA), Registered, 6.47%,
       3/4/15 1,150,000 1,205,890
VTB Bank OJSC (VTB Capital
       SA), Registered, 6.00%,
       4/12/17 200,000 212,250
1,418,140
Mexico — 4.7%
Banco Santander SA, 4.13%,
       11/9/22 (b) 1,100,000 1,028,500
BBVA Bancomer SA Institucion
       de Banca, Registered,
       6.75%, 9/30/22 800,000 857,000
Comision Federal de Electricidad,
       4.88%, 1/15/24 (b) 1,600,000 1,580,000
Petroleos Mexicanos, 4.88%,
       3/15/15 2,000,000 2,079,999
Petroleos Mexicanos, 4.88%,
       1/18/24 (b) 250,000 248,811
Petroleos Mexicanos, 6.38%,
       1/23/45 (b) 500,000 500,047
United Mexican States, 5.63%,
       1/15/17 5,610,000 6,227,100
United Mexican States, 4.00%,
       10/2/23 6,940,000 6,835,900
United Mexican States, Series A,
       6.05%, 1/11/40 8,710,000 9,232,600
United Mexican States, 5.55%,
       1/21/45 2,370,000 2,340,375
30,930,332
Namibia — 0.5%
Namibia International Bond,
       Registered, 5.50%, 11/3/21 3,400,000 3,408,500
Panama — 1.0%
Republic of Panama, 5.20%,
       1/30/20 6,140,000 6,668,040
Peru — 2.6%
Banco de Credito del Peru,
       Registered, 5.38%, 9/16/20 780,000 797,550
BBVA Banco Continental SA,
       Registered, 2.25%, 7/29/16 5,000,000 4,968,750
Continental Senior Trust,
       Registered, 5.75%, 1/18/17 3,150,000 3,406,536
Corp. Financiera de Desarrollo
       SA, 4.75%, 2/8/22 200,000 196,500
El Fondo MIVIVIENDA SA,
       Registered, 3.50%, 1/31/23 975,000 865,313
Republic of Peru, 8.38%, 5/3/16 4,525,000 5,203,750
Republic of Peru, 6.55%, 3/14/37 1,660,000 1,888,250
17,326,649
Republic of Serbia — 0.6%
Republic of Serbia, 5.88%,
       12/3/18 (b) 2,800,000 2,835,000
Republic of Serbia, 4.88%,
       2/25/20 925,000 881,063
Republic of Serbia, Registered,
       5.25%, 11/21/17 410,000 414,100
4,130,163
Russian Federation — 8.6%
AK Transneft OAO, Registered,
       5.67%, 3/5/14 400,000 401,400
Alfa Bank OJSC, Registered,
       7.88%, 9/25/17 1,200,000 1,332,000
Alfa Bank OJSC, Registered,
       7.75%, 4/28/21 500,000 536,250
Alfa Issuance Ltd., Series E,
       8.00%, 3/18/15, MTN 450,000 478,305

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal          
Amount ($) Value ($)
Yankee Dollars, continued
Russian Federation, continued
Gazprom OAO, Registered,
       Series 2009/2, 10.50%,
       3/25/14 10,000,000 10,118,000
Gazprom OAO, Registered,
       8.13%, 7/31/14 3,601,000 3,718,033
Gazprom OAO, Registered,
       Series 7, 6.21%, 11/22/16 4,600,000 5,082,080
Gazprom OAO, Registered,
       9.25%, 4/23/19 2,050,000 2,475,375
Gazprom OAO, Registered,
       6.00%, 1/23/21 1,200,000 1,243,500
Gazprom OAO, Registered,
       6.51%, 3/7/22 11,100,000 11,710,500
Russia Foreign Bond, 4.88%,
       9/16/23 (b) 2,400,000 2,406,000
Russia Foreign Bond, Registered,
       7.50%, 3/31/30 8,265,400 9,517,608
Russian Federation, Registered,
       3.25%, 4/4/17 1,600,000 1,674,320  
RZD Capital Ltd., Registered,
       5.70%, 4/5/22 300,000 300,375
Sberbank of Russia (SB Capital  
       SA), Registered, 4.95%,
       2/7/17 5,600,000   5,901,000
56,894,746
South Africa — 4.1%
Eskom Holdings SOC Ltd.,  
       6.75%, 8/6/23 (b) 2,450,000 2,465,313
Republic of South Africa, 6.88%,
       5/27/19 6,100,000 6,862,500
Republic of South Africa, 5.50%,
       3/9/20 16,070,000 16,953,850
Republic of South Africa, 5.88%,
       9/16/25 1,200,000 1,227,000
27,508,663
Turkey — 7.1%
Akbank TAS, Registered, 5.13%,
       7/22/15 9,080,000 9,238,900
Republic of Turkey, 7.25%,
       3/15/15 18,392,000 19,407,238
Republic of Turkey, 7.50%,
       7/14/17 2,860,000 3,174,600
Republic of Turkey, 7.50%,
       11/7/19 540,000 600,480
Republic of Turkey, 5.63%,
       3/30/21 2,638,000 2,634,703
Republic of Turkey, 5.13%,
       3/25/22 660,000 630,630
Republic of Turkey, 6.25%,
       9/26/22 4,800,000 4,914,240
Turkiye Halk Bankasi AS, 3.88%,
       2/5/20 (b) 2,500,000 2,162,500
Turkiye Is Bankasi AS, 3.88%,
       11/7/17 (b) 1,000,000 942,700
Turkiye Is Bankasi AS, 5.50%,
       4/21/19 (b) 1,450,000 1,395,625
Turkiye Vakiflar Bankasi TAO,
       5.00%, 10/31/18 (b) 800,000 752,000
Turkiye Vakiflar Bankasi TAO,
       6.00%, 11/1/22 (b) 1,400,000 1,176,000
47,029,616
Uruguay — 0.3%
Republica Oriental del Uruguay,
       4.50%, 8/14/24 1,755,000 1,730,869
Republica Oriental del Uruguay,
       6.88%, 9/28/25 275,000 313,156
2,044,025
 
TOTAL YANKEE DOLLARS
       (COST $436,816,449) 424,366,496
U.S. Treasury Obligations — 6.7%
U.S. Treasury Notes, 1.75%,
       5/15/23 48,243,000 44,760,434
 
TOTAL U.S. TREASURY OBLIGATIONS
       (COST $46,061,494) 44,760,434
 
Shares
Investment Company — 13.6%
Northern Institutional Diversified
       Assets Portfolio, Institutional
       Shares, 0.01% (c) 90,586,173 90,586,173
 
TOTAL INVESTMENT COMPANY
       (COST $90,586,173) 90,586,173
TOTAL INVESTMENT SECURITIES
       (COST $600,576,470) — 88.2% 585,745,039

Percentages indicated are based on net assets of $664,212,309.
†

The principal amount is disclosed in local currency and the value is disclosed in U.S. Dollars.

(a)         Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on January 31, 2014. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the Fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(b) Rule 144A security or other security which is restricted as to resale to institutional investors. This security has been deemed liquid by the Investment Adviser based on procedures approved by the Board of Trustees.
(c) The rate represents the annualized one-day yield that was in effect on January 31, 2014.
MTN   Medium Term Note

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

The Fund invested, as a percentage of net assets at value, in the following industries, as of January 31, 2014:

    Percentage of  
      Net Assets    
Industry   at Value (%)
Sovereign Bonds 40.0
Oil, Gas & Consumable Fuels 14.1
Investment Company   13.6
Commercial Banks 10.7
U.S. Treasury Obligations 6.7
Electric Utilities 1.3
Capital Markets 0.7
Diversified Financial Services 0.5
Metals & Mining 0.4  
Trading Companies & Distributors 0.2
Transportation Infrastructure 0.0
Total 88.2

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

The following tables reflect the open derivative positions held by the Fund as of January 31, 2014.

Futures Contracts

                              Unrealized
Expiration Number of Notional Appreciation/
Description   Type Date   Contracts   Value (Depreciation)
10-Year U.S. Treasury Note March Future Short 3/21/14 350 $ 44,012,500              ($47,208 )
$ 44,012,500 ($47,208 )

Interest Rate Swap Agreements

Unrealized
Pay/Receive       Fixed          Notional    Notional       Appreciation/
Floating Rate Expiration Amount Amount Value (Depreciation)
Rate Floating Rate Index (%) Date Counterparty (Local) ($) ($) ($)
Pay 1-Year BRL CDI    10.71    1/2/15 Standard Charter Bank 400,000,000   BRL 165,782,493 (773,302 ) (773,302 )
Pay 1-Year BRL CDI   9.93 1/2/15 Credit Suisse International 272,600,000 BRL 112,980,769 (1,111,626 )                     (1,111,626 )
Pay 1-Year BRL CDI 9.71 1/2/15 Barclays Bank PLC 120,800,000 BRL 50,066,313 (604,994 ) (604,994 )
Receive 1-Month MXN-TIIE-Banxico 4.29 9/9/15 Credit Suisse International 194,337,000   MXN 14,533,129 3,470 3,470
Receive 1-Month MXN-TIIE-Banxico 5.30 9/20/18 Standard Charter Bank 124,000,000 MXN 9,273,108 115,071 115,071
Receive 1-Month MXN-TIIE-Banxico 5.30 9/20/18 Barclays Bank PLC 124,000,000 MXN 9,273,108 115,071 115,071
Receive   1-Month MXN-TIIE-Banxico 5.31 9/20/18 Barclays Bank PLC 124,000,000 MXN 9,273,108 111,147 111,147
Receive   3-Month LIBOR BBA   1.96 5/17/22   Standard Charter Bank 1,200,000 USD 1,200,000 46,892 46,892
Receive 3-Month LIBOR BBA 1.77   8/10/22 Barclays Bank PLC 13,000,000 USD 13,000,000 709,329 709,329
Pay 1-Month MXN-TIIE-Banxico 6.50 9/13/23 Standard Charter Bank 48,000,000 MXN 3,589,590 (97,680 ) (97,680 )
Pay 1-Month MXN-TIIE-Banxico 6.54 9/14/23 Standard Charter Bank 71,000,000 MXN 5,309,602 (129,396 ) (129,396 )
Pay 1-Month MXN-TIIE-Banxico 6.54 9/14/23 Barclays Bank PLC 71,000,000 MXN 5,309,602 (129,396 ) (129,396 )
Pay 1-Month MXN-TIIE-Banxico 6.54 9/14/23 Barclays Bank PLC 71,000,000  MXN 5,309,602 (129,396 ) (129,396 )
(1,874,810 ) (1,874,810 )

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Credit Default Swap Agreements - Buy Protection(a)

Implied Credit Unrealized
      Spread at   Notional       Upfront Premiums   Appreciation/
Expiration January 31, 2014 Amount Fixed Rate Value Paid/(Received)   (Depreciation)
Underlying Instrument Counterparty Date (%)(b) ($)(c) (%) ($) ($) ($)
Emirate of Abu Dhabi Barclays Bank PLC 6/20/18 0.48 4,400,000 1.00 (113,201 ) (72,021 ) (41,180 )
Republic of Korea JPMorgan Chase Bank N.A. 9/20/17 0.47 5,000,000 1.00 (101,419 ) 12,067        (113,486 )
Republic of Korea JPMorgan Chase Bank N.A. 9/20/17 0.42 100,000 1.00 (2,028 ) 1,211 (3,239 )
Republic of Korea JPMorgan Chase Bank N.A. 6/20/18 0.60 6,000,000 1.00 (114,004 ) (77,634 ) (36,370 )
Republic of Korea Credit Suisse International 6/20/18 0.60 6,000,000 1.00 (114,004 ) (63,927 ) (50,077 )
Republic of Korea JPMorgan Chase Bank N.A. 6/20/18 0.60 7,000,000 1.00 (133,005 ) (59,599 ) (73,406 )
Republic of Korea JPMorgan Chase Bank N.A. 6/20/18 0.60 5,500,000 1.00 (104,504 ) (65,689 ) (38,815 )
Republic of Korea JPMorgan Chase Bank N.A. 6/20/18 0.60 7,000,000 1.00 (133,005 ) (45,513 ) (87,492 )
Republic of Korea Barclays Bank PLC 12/20/18 0.69 5,500,000 1.00 (92,646 ) (97,533 ) 4,887
Republic of Korea JPMorgan Chase Bank N.A. 12/20/18 0.69 10,500,000 1.00 (176,870 ) (191,452 ) 14,582
Republic of Korea Barclays Bank PLC 12/20/18 0.69 5,500,000 1.00 (92,646 ) (97,481 ) 4,835
Republic of Philippines JPMorgan Chase Bank N.A. 9/20/17 0.86 1,700,000 1.00 (11,557 ) 38,756 (50,313 )
Republic of South Africa Barclays Bank PLC 12/20/17 1.95 3,500,000 1.00 170,229 93,237 76,992
Republic of Turkey JPMorgan Chase Bank N.A. 12/20/17 2.39 3,500,000 1.00 170,229 89,748 80,481
Republic of Ukraine Bank Of America 3/20/19 10.93 2,000,000 5.00 390,926 184,293 206,633
Republic of Ukraine Barclays Bank PLC 3/20/19 10.93 1,500,000 5.00 293,195 132,520 160,675
Republic of Ukraine Bank Of America 3/20/19 10.93 4,000,000 5.00 781,852 360,850 421,002
Republic of Ukraine Bank Of America 3/20/19 10.93 1,600,000 5.00 312,741 147,219 165,522
Republic of Ukraine Bank Of America 3/20/19 10.93 9,000,000 5.00 1,759,168 736,153 1,023,015
Republic of Ukraine Bank Of America 3/20/19 10.93 3,500,000 5.00 684,121 322,041 362,080
State of Qatar Barclays Bank PLC 9/20/17 0.40 6,250,000 1.00 (141,842 ) 74,259 (216,101 )
3,231,730 1,421,505 1,810,225

See notes to schedules of portfolio investments.


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Credit Default Swap Agreements - Sell Protection(a)

Implied Credit Unrealized
Spread at Notional Upfront Premiums Appreciation/
  Expiration January 31, 2014 Amount Fixed Rate Value Paid/(Received) (Depreciation)
Underlying Instrument   Counterparty   Date (%)(b) ($)(c) (%) ($) ($) ($)
Federative Republic of Brazil Credit Suisse International 6/20/18   1.91   4,500,000   1.00   (152,776 )   (96,534 )   (56,242 )
Federative Republic of Brazil Credit Suisse International 6/20/18 1.91 14,000,000 1.00 (475,304 ) (297,735 ) (177,569 )
Federative Republic of Brazil Barclays Bank PLC 6/20/18 1.91 2,500,000 1.00 (84,945 ) (39,915 ) (45,030 )
Federative Republic of Brazil JPMorgan Chase Bank N.A. 6/20/18 1.86 2,500,000 1.00 (84,876 ) (46,715 ) (38,161 )
Federative Republic of Brazil Barclays Bank PLC 3/20/19 2.02 3,000,000 1.00 (147,716 ) (125,239 ) (22,477 )
Federative Republic of Brazil JPMorgan Chase Bank N.A. 3/20/19 2.02 10,000,000 1.00 (492,388 ) (421,353 ) (71,035 )
People's Republic of China JPMorgan Chase Bank N.A. 6/20/18 0.81 5,500,000 1.00 47,626 71,224 (23,598 )
People's Republic of China JPMorgan Chase Bank N.A. 6/20/18 0.81 6,000,000 1.00 51,956 83,678 (31,722 )
People's Republic of China Credit Suisse International 6/20/18 0.81 6,000,000 1.00 51,956 37,634 14,322
Republic of Indonesia Credit Suisse International 6/20/18 2.11 3,800,000 1.00 (156,791 ) (207,184 ) 50,393
Republic of Indonesia JPMorgan Chase Bank N.A. 9/20/18 2.11 500,000 1.00 (23,873 ) (26,156 ) 2,283
Republic of Indonesia Credit Suisse International 9/20/18 2.21 1,800,000 1.00 (85,943 ) (120,906 ) 34,963
Republic of Peru JPMorgan Chase Bank N.A. 6/20/17 1.03 100,000 1.00 (6 ) (3,224 ) 3,218
Republic of South Africa JPMorgan Chase Bank N.A. 12/20/17 1.95 3,500,000 1.00 (119,666 ) (99,897 ) (19,769 )
Republic of South Africa JPMorgan Chase Bank N.A. 9/20/18 2.16 13,000,000 1.00 (648,770 ) (716,665 ) 67,895
Republic of Turkey Barclays Bank PLC 12/20/17 2.39 3,500,000 1.00 (119,666 ) (88,148 ) (31,518 )
(2,441,182 ) (2,097,135 ) (344,047 )

(a)        When a credit event occurs as defined under the terms of the swap agreement, the Fund as a seller of credit protection will either (i) pay to the buyer of protection an amount equal to the par value of the defaulted reference entity and take delivery of the reference entity or (ii) pay a net amount equal to the par value of the defaulted reference entity less its recovery value. Alternatively, the Fund as a buyer of credit protection will either (i) receive from the seller of protection an amount equal to the par value of the defaulted reference entity and deliver the reference entity to the seller or (ii) receive a net amount equal to the par value of the defaulted reference entity less its recovery value.
(b)        Implied credit spread, represented in absolute terms, utilized in determining the fair value of the credit default swap agreements as of period end serve as an indicator of the current status of the payment/performance risk and represents the likelihood or risk of default for the credit derivative. The implied credit spread of a referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Generally, wider credit spreads represent a perceived deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap agreement.
(c) The notional amount represents the maximum potential amount of future payments that the Fund may receive as a buyer of credit protection if a credit event occurs, as defined under the terms of the swap agreement. Alternatively, the notional amount represents the maximum potential amount the Fund could be required to make as a seller of credit protection if a credit event occurs, as defined under the terms of the swap agreement.

See notes to schedules of portfolio investments .


HSBC TOTAL RETURN FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Forward Foreign Currency Exchange Contracts

Unrealized
Contract Contract Appreciation/
Delivery Amount   Value Value (Depreciation)
Short Contracts Counterparty Date (Local Currency) ($) ($) ($)
Brazilian Real   Barclays Bank PLC 2/4/14 32,710,986 13,481,839   13,543,739 (61,900 )
Brazilian Real Barclays Bank PLC   2/4/14   47,824,430   20,830,000 19,801,347   1,028,653
Brazilian Real Barclays Bank PLC 2/4/14 57,180,060 25,705,835 23,674,976 2,030,859
Brazilian Real Barclays Bank PLC 2/4/14 64,394,923 26,540,379 26,662,236 (121,857 )
Brazilian Real Barclays Bank PLC 2/4/14 96,893,715 40,686,002 40,118,117 567,885
Brazilian Real Credit Suisse 2/4/14 7,339,046 3,192,000 3,038,677 153,323
Brazilian Real Standard Chartered Bank 2/4/14 6,215,008 2,705,000 2,573,278 131,722
Brazilian Real Standard Chartered Bank 2/4/14 118,346,351 48,776,471 49,000,421 (223,950 )
Chilean Peso Standard Chartered Bank 2/14/14 6,611,932,000 12,120,865 11,888,650 232,215
Chinese Yuan Bank of America 2/20/14 73,188,000 12,000,000 12,073,377 (73,377 )
Chinese Yuan Standard Chartered Bank 2/20/14 3,103,470 508,557 511,960 (3,403 )
Chinese Yuan Standard Chartered Bank 2/20/14 73,176,000 12,000,000 12,071,397 (71,397 )
European Euro Barclays Bank PLC 3/19/14 23,997,740 32,503,019 32,363,587 139,432
Hungarian Forint                     Standard Chartered Bank 2/6/14 6,892,384,514 31,014,645 29,794,159 1,220,486
Hungarian Forint Standard Chartered Bank 7/23/14 6,892,384,514 30,556,090 29,423,376 1,132,714
Mexican Peso Barclays Bank PLC 2/4/14 73,010,000 5,458,896 5,458,303 593
Mexican Peso Barclays Bank PLC 2/5/14 24,375,000 1,823,793 1,822,165 1,628
Mexican Peso Barclays Bank PLC 2/5/14 24,391,000 1,822,100 1,823,362 (1,262 )
Mexican Peso Barclays Bank PLC 2/5/14 24,391,000 1,822,100 1,823,362 (1,262 )
Mexican Peso Barclays Bank PLC 2/5/14 48,600,000 3,647,006 3,633,118 13,888
Mexican Peso Barclays Bank PLC 4/8/14 57,600,000 4,368,269 4,284,802 83,467
Mexican Peso Barclays Bank PLC 4/8/14 57,700,000 4,310,635 4,292,241 18,394
Mexican Peso Standard Chartered Bank 4/8/14 56,200,000 4,193,091 4,180,657 12,434
Mexican Peso Standard Chartered Bank 4/8/14 58,250,000 4,337,143 4,333,155 3,988
Polish Zloty Bank of America 3/4/14 13,505,800 4,400,000 4,279,446 120,554
Polish Zloty Barclays Bank PLC 2/4/14 87,704,720 28,531,139 27,837,783 693,356
Polish Zloty Credit Suisse 3/4/14 13,485,230 4,400,000 4,272,928 127,072
Polish Zloty Standard Chartered Bank 3/4/14 13,502,632 4,400,000 4,278,442 121,558
Polish Zloty Standard Chartered Bank 3/4/14 88,075,458 28,279,619 27,907,579 372,040
Russian Ruble Standard Chartered Bank 2/6/14 3,999,150 119,764 113,718 6,046
414,534,257 406,880,358 7,653,899


Unrealized
Contract Contract Appreciation/
Delivery Amount Value Value (Depreciation)
Long Contracts   Counterparty Date (Local Currency) ($) ($) ($)
Brazilian Real Barclays Bank PLC 2/4/14 32,710,986 13,860,000 13,543,739 (316,261 )
Brazilian Real Barclays Bank PLC 2/4/14 47,824,430 19,710,848   19,801,347   90,499
Brazilian Real   Barclays Bank PLC 2/4/14   57,180,060 23,566,772 23,674,976 108,204
Brazilian Real Barclays Bank PLC 2/4/14 64,394,923 27,769,000 26,662,236 (1,106,764 )
Brazilian Real Barclays Bank PLC 2/4/14 96,893,715 39,934,763 40,118,117 183,354
Brazilian Real Barclays Bank PLC 4/2/14 96,893,715   40,164,863 39,520,390 (644,473 )
Brazilian Real Credit Suisse   2/4/14 7,339,046 3,024,789 3,038,677 13,888
Brazilian Real Standard Chartered Bank 2/4/14 6,215,008 2,561,517 2,573,278 11,761
Brazilian Real Standard Chartered Bank 2/4/14 118,346,351 51,801,782 49,000,421 (2,801,361 )
Chilean Peso Bank of America 2/14/14 6,611,932,000 12,540,412 11,888,650 (651,762 )
Chilean Peso Standard Chartered Bank 5/28/14 6,611,932,000 11,995,740 11,758,309 (237,431 )
Chinese Yuan Standard Chartered Bank 2/20/14 149,467,470 24,313,537 24,656,734 343,197
Hungarian Forint Bank of America 7/23/14 1,470,925,760 6,271,000 6,279,336 8,336
Hungarian Forint Barclays Bank PLC 7/23/14 2,546,297,500 10,870,000 10,870,065 65
Hungarian Forint JPMorgan Chase Bank N.A. 7/23/14 1,470,047,820 6,271,000 6,275,589 4,589
Hungarian Forint Standard Chartered Bank 2/6/14 6,892,384,514 30,852,214 29,794,159 (1,058,055 )
Hungarian Forint Standard Chartered Bank 7/23/14 1,466,786,900 6,271,000 6,261,668 (9,332 )
Indian Rupee Barclays Bank PLC 3/24/14 401,574,260 6,418,000 6,335,243 (82,757 )
Indian Rupee Standard Chartered Bank 3/24/14 14,705,200 230,345 231,990 1,645
Indonesian Rupiah Barclays Bank PLC 4/15/14 56,917,140,000 4,673,000 4,603,743 (69,257 )
Mexican Peso Barclays Bank PLC 4/8/14 24,375,000 1,814,696 1,813,230 (1,466 )
Mexican Peso Barclays Bank PLC 4/8/14 24,391,000 1,813,066 1,814,420 1,354
Mexican Peso Barclays Bank PLC 4/8/14 24,391,000 1,813,066 1,814,420 1,354
Mexican Peso Barclays Bank PLC 4/8/14 48,600,000 3,629,032 3,615,301 (13,731 )
Mexican Peso Barclays Bank PLC 4/8/14 73,010,000 5,431,483 5,431,135 (348 )
Mexican Peso Barclays Bank PLC 4/8/14 217,403,376 16,574,169 16,172,402 (401,767 )
Mexican Peso Standard Chartered Bank 4/8/14 12,402,000 941,185 922,571 (18,614 )
Polish Zloty Barclays Bank PLC 6/5/14 87,704,720 28,315,594 27,625,079 (690,515 )
Polish Zloty Credit Suisse 2/4/14 33,577,600 10,924,874 10,657,647 (267,227 )
Polish Zloty Standard Chartered Bank 2/4/14 54,127,120 17,704,223 17,180,136 (524,087 )
Russian Ruble Standard Chartered Bank 2/6/14 3,999,150 121,675 113,718 (7,957 )
Russian Ruble Standard Chartered Bank 7/14/14 3,999,150 116,743 110,062 (6,681 )
South African Rand                  Barclays Bank PLC 4/15/14 83,914,445 7,453,000 7,473,887 20,887
South African Rand Barclays Bank PLC 6/11/14 301,594,831 27,047,651 26,585,868 (461,783 )
South African Rand Credit Suisse 4/15/14 31,496,296 2,795,000 2,805,235 10,235
Turkish Lira Credit Suisse 4/7/14 12,071,360 5,322,000 5,244,277 (77,723 )
Turkish Lira Standard Chartered Bank 4/7/14 425,008 190,186 184,640 (5,546 )
Turkish Lira Standard Chartered Bank 4/7/14 9,014,760 4,080,000 3,916,369 (163,631 )
Turkish Lira Standard Chartered Bank 4/7/14 19,757,110 8,900,000 8,583,271 (316,729 )
488,088,225 478,952,335 (9,135,890 )


HSBC RMB FIXED INCOME FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

Principal
Amount ($) Value ($)    
Foreign Bonds — 87.3%†
Australia — 1.2%
Australia & New Zealand Banking
       Group Ltd., Series E, 2.90%,
       8/14/15, MTN (a)       1,000,000       166,343
Brazil — 2.3%
Banco BTG Pactual SA, Series G,
       4.10%, 3/26/16, MTN (a) 2,000,000 326,071
China — 40.4%
Baosteel Group Corp. Ltd.,
       Registered, 4.15%, 3/1/17 (a) 2,000,000 335,079
Beijing Enterprises Water Group Ltd.,
       3.75%, 6/30/14 (a) 3,000,000 496,950
Bestgain Real Estate Lyra Ltd.,
       4.50%, 12/4/18 2,000,000 329,358
Big Will Investments Ltd., Registered,
       7.00%, 4/29/14 (a) 2,000,000 333,019
Bitronic Ltd., 4.00%, 12/12/15 (a) 3,000,000 497,546
China Guangdong Nuclear Power
       Holding Co. Ltd., Registered,
       3.75%, 11/1/15 (a) 2,000,000 333,453
China Shanshui Cement Group Ltd.,
       6.50%, 7/22/14 (a) 2,000,000 334,079
Greentown China Holdings, 5.63%,
       5/13/16 1,000,000 165,753
Huaneng Power International, Inc.,
       3.85%, 2/5/16 (a) 2,000,000 333,161
ICBC Luxembourg SA, 2.60%,
       5/28/14 2,000,000 331,996
Industrial & Commercial Bank of
       China Ltd., Registered, 3.75%,
       11/19/18 1,000,000 165,464
Intime Department Store (Group) Co.
       Ltd., Registered, 4.65%,
       7/21/14 (a) 2,000,000 331,431
Kaisa Group Holdings Ltd., 6.88%,
       4/22/16 2,000,000 329,463
New World China Land Ltd., 8.50%,
       4/11/15 (a) 2,000,000 348,696
Right Century Ltd., 1.85%, 6/3/14 (a) 2,000,000 329,864
RKI Finance 2013 Ltd., 6.00%,
       12/3/16 2,000,000 331,852
The Export-Import Bank of China,
       2.70%, 4/7/14 (a) 2,000,000 331,297
5,658,461
France — 3.6%
Veolia Environnement SA, Series E,
       4.50%, 6/28/17, MTN (a) 3,000,000 509,458
Germany — 1.2%
BSH Bosch und Siemens Hausgerate
       GmbH, Registered, 3.80%,
       7/24/17 (a) 1,000,000 168,058
Hong Kong — 29.1%
BECL Investment Holding Ltd.,
       4.75%, 2/21/14 (a) 3,000,000 497,224
Dorsett Hospitality International Ltd.,
       Series E, 6.00%, 4/3/18, MTN (a) 2,000,000 324,991
Eastern Air Overseas (Hong Kong)
       Corp. Ltd., 4.00%, 8/8/14 (a) 2,000,000 331,395
Gemdale International Holdings Ltd.,
       9.15%, 7/26/15 (a) 2,000,000 349,277
Lafarge Shui On Cement Ltd.,
       Registered, 9.00%, 11/14/14 (a) 2,000,000 344,914
Lai Fung Holdings Ltd., 6.88%,
       4/25/18 2,000,000 323,492
Noble Group Ltd., Series E, 4.00%,
       1/30/16 2,000,000 332,837
Rainbow Days Ltd., Registered,
       3.00%, 6/30/16 (a) 2,000,000 323,573
Silvery Castle Ltd., 2.75%, 7/14/14 (a) 2,000,000 329,076
Singamas Container Holdings Ltd.,
       Registered, 4.75%, 4/14/14 (a) 2,000,000 330,468
SK Global Chemical Co. Ltd., 4.13%,
       9/26/16 2,000,000 335,889
Starway Assets Enterprises, Inc.,
       4.10%, 1/22/17 1,600,000 264,690
4,087,826
Japan — 2.4%
Mitsui & Co. Ltd., Series E, 4.25%,
       3/1/17, MTN (a) 2,000,000 339,703
Singapore — 2.4%
Global Logistic Properties Ltd.,
       Registered, 3.37%, 5/11/16 (a) 2,000,000 330,389
United States — 4.7%
Caterpillar Financial Services Corp.,
       Registered, 3.35%, 11/26/14 2,000,000 333,104
Yum! Brands, Inc., Registered,
       2.38%, 9/29/14 (a) 2,000,000 329,655
662,759
 
TOTAL FOREIGN BONDS
       (COST $11,716,305) 12,249,068
Certificates of Deposit — 10.6%
China — 4.7%
China Construction Bank (Asia) Corp.
       Ltd., 2.75%, 3/11/14 2,000,000 331,736
China Development Bank Corp.,
       2.90%, 6/25/14 (a) 2,000,000 332,326
664,062
Japan — 2.4%
Sumitomo Mitsui Banking Corp.,
       1.10%, 4/22/14 (a) 2,000,000 330,352
Singapore — 3.5%
Oversea-Chinese Banking Corp. Ltd.,
       1.10%, 3/28/14 (a) 3,000,000 496,166
 
TOTAL CERTIFICATES OF DEPOSIT
       (COST $1,417,595) 1,490,580
 
Shares
Investment Company — 0.9%
Northern Institutional Diversified
       Assets Portfolio, Institutional
       Shares, 0.01% (b) 120,132 120,132

See notes to schedules of portfolio investments.


HSBC RMB FIXED INCOME FUND

Schedule of Portfolio Investments — as of January 31, 2014 (Unaudited)

      Shares       Value ($)    
Investment Company, continued
TOTAL INVESTMENT COMPANY
       (COST $120,132) 120,132
TOTAL INVESTMENT SECURITIES
       (COST $13,254,032) — 98.8% 13,859,780

Percentages indicated are based on net assets of $14,023,912.
†

The principal amount is disclosed in local currency and the value is disclosed in U.S. Dollars.

(a)        Variable rate security. The interest rates on these securities are adjusted periodically to reflect then-current short-term interest rates. The rates presented represent the rates in effect on January 31, 2014. The maturity dates presented reflect the final maturity dates. However, some of these securities may contain put or demand features that allow the Fund to require the issuer to repurchase the security from the fund within various time periods, including daily, weekly, monthly, or semi-annually.
(b) The rate represents the annualized one-day yield that was in effect on January 31, 2014.
MTN   Medium Term Note

The Fund invested, as a percentage of net assets at value, in the following industries, as of January 31, 2014:

Percentage of
Net Assets at
Industry Value (%)    
Real Estate Management & Development 21.3
Commercial Banks 17.9
Diversified Financial Services 10.0
Trading Companies & Distributors 7.0
Water Utilities 6.9
Construction Materials 4.9
Electric Utilities 4.8
Hotels, Restaurants & Leisure 4.7
Machinery       2.4
Distributors 2.4
Metals & Mining 2.4
Specialty Retail 2.4
Industrial Conglomerates 2.4
Airlines 2.4
Chemicals 2.4
Food Products 2.4
Household Durables 1.2
Investment Company 0.9
Total 98.8

See notes to schedules of portfolio investments .


Notes to Schedules of Portfolio Investments
(Unaudited) January 31, 2014

1. Organization:

     The HSBC Funds (the “Trust’’), a Massachusetts business trust organized on April 22, 1987, and is registered under the Investment Company Act of 1940, as amended (the “Act’’), as open-end management investment companies. As of January 31, 2014, the Trust is comprised of 15 separate operational funds, each a series of the HSBC Family of Funds, which also includes the HSBC Advisor Funds Trust and the HSBC Portfolios (the “Trusts’’). The accompanying Schedules of Portfolio Investments (“Schedules”) are presented for the following funds (individually a “Fund”, collectively the “Funds”):

Fund       Short Name  
HSBC Growth Fund Growth Fund
HSBC Opportunity Fund Opportunity Fund
(Individually a “Feeder Fund”, collectively the “Feeder Funds”)
 
HSBC Prime Money Market Fund Prime Money Market Fund
HSBC U.S. Government Money Market Fund U.S. Government Money Market Fund
HSBC U.S. Treasury Money Market Fund U.S. Treasury Money Market Fund
(Individually a “Money Market Fund”, collectively the “Money Markets Funds”)
 
Aggressive Strategy Fund Aggressive Strategy Fund
Balanced Strategy Fund Balanced Strategy Fund
Moderate Strategy Fund   Moderate Strategy Fund
Conservative Strategy Fund Conservative Strategy Fund
Income Strategy Fund Income Strategy Fund
(Individually a “World Selection Fund”, collectively the “World Selection Funds”)
 
HSBC Emerging Markets Debt Fund Emerging Markets Debt Fund
HSBC Emerging Markets Local Debt Fund Emerging Markets Local Debt Fund
HSBC Frontier Markets Fund Frontier Markets Fund
HSBC Total Return Fund Total Return Fund
HSBC RMB Fixed Income Fund RMB Fixed Income Fund
(Individually a “Emerging Markets Fund”, collectively the “Emerging Markets Funds”)

     The Feeder Funds, Money Market Funds, World Selection Funds and Emerging Markets Funds are collectively referred to as the “Funds.”

     The HSBC Growth Portfolio and the HSBC Opportunity Portfolio (individually a “Portfolio”, collectively the “Portfolios”) are a diversified series of the HSBC Portfolios (the “Portfolios Trust”). The Portfolios Trust is an open-end management investment company organized as a master trust fund under the laws of the State of New York on November 1, 1994. The Portfolios operate as master funds in master-feeder arrangements, in which other funds invest all or part of their investable assets in the Portfolios. The Portfolios also receive investments from funds of funds. The Declaration of Trust permits the Board of Trustees to issue an unlimited number of beneficial interests in the Portfolios.


     The Feeder Funds utilize the master-feeder fund structure and seek to achieve their investment objectives by investing all of their investable assets in their respective Portfolios (as defined below):

Proportionate
Interest on
Feeder Fund Respective Portfolio January 31, 2014
Growth Fund HSBC Growth Portfolio   93.2%
Opportunity Fund   HSBC Opportunity Portfolio 7.1%

     The World Selection Funds, excluding the Income Strategy Fund, (“World Selection Feeder Funds”), currently invest in the Portfolios as follows:

Proportionate Ownership Proportionate Ownership
Interest in Growth Portfolio Interest in Opportunity
World Selection Feeder Fund on January 31, 2014   Portfolio on January 31, 2014
Aggressive Strategy Fund   1.5% 0.3%
Balanced Strategy Fund 3.0% 0.6%
Moderate Strategy Fund 1.8% 0.4%
Conservative Strategy Fund 0.5% 0.1%

     The Portfolios’ Schedules are published separately and should be read in conjunction with the Schedules of the Feeder Funds and the World Selection Feeder Funds.

     All of the World Selection Funds are diversified and are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share. Each of the World Selection Funds is a “fund of funds,” meaning that it seeks to achieve its investment objective by investing primarily in a combination of mutual funds managed by HSBC Global Asset Management (USA) Inc. (the “Affiliated Underlying Funds”), as well as mutual funds managed by other investment advisers and exchange-traded funds (“Unaffiliated Underlying Funds” and, together with the Affiliated Underlying Funds, the “Underlying Funds”). Each World Selection Fund invests according to the investment objectives and strategies described in its Prospectus.

     All of the Emerging Markets Funds are non-diversified and are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share.

     All of the Money Market Funds are diversified and are authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share.

2. Significant Accounting Policies:

     The following is a summary of the significant accounting policies followed by each Fund and each Portfolio in the preparation of their Schedule. The policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of Schedules requires management to make estimates and assumptions that affect the reported amounts. Actual results could differ from those estimates.

Securities Valuation:

A. Feeder Funds, Emerging Markets Funds and Portfolios

     The Feeder Funds, Emerging Markets Funds and Portfolios record their investments at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described in Note 3 below.

B. Money Market Funds

     Investments of the Money Market Funds are valued using the amortized cost method pursuant to Rule 2a-7 under the Act, which approximates fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value are further described in Note 3 below.


C. World Selection Funds

     The World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds. The World Selection Feeder Funds record their investments in the Portfolios at fair value. The underlying securities of the Portfolios are recorded at fair value, as more fully discussed in the notes to those financial statements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The valuation techniques used to determine fair value in funds or Portfolios in which the World Selection Funds are invested are described in their respective notes to financial statements. The valuation techniques employed by the World Selection Funds are further described in Note 3 below.

Investment Transactions:

A. Feeder Funds and World Selection Feeder Funds

     The Feeder Funds and World Selection Feeder Funds record investments into the Portfolios on a trade date basis. Changes in holdings of the Underlying Funds for each World Selection Fund are reflected no later than one business day after trade date. However, for financial reporting purposes, changes in holdings of the Underlying Funds are accounted for on trade date.

B. Portfolios, Money Market Funds and Emerging Markets Funds

     Investment transactions are accounted for no later than one business day after trade date. However, for financial reporting purposes, investment transactions are accounted for on trade date.

Restricted and Illiquid Securities:

     A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (the “1933 Act’’) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or another exemption from the registration requirements of the 1933 Act. Certain restricted securities may be resold in transactions exempt from registration, normally to qualified institutional buyers, and may be deemed liquid by the Investment Adviser based on procedures established by the Board of Trustees (“Trustees”) of the Trust and the Portfolios Trust. Therefore, not all restricted securities are considered illiquid. At January 31, 2014, all restricted securities held were deemed liquid (except as noted below). Restricted securities held as of January 31, 2014 are identified below:

Acquisition Total Principal Fair % of
HSBC Prime Money Market    Date    Cost    Amount    Value    Net Assets
Antalis US Funding Corp., 0.23%, 4/16/14 1/9/2014 $ 18,991,017 $ 19,000,000 $ 18,991,017              0.4 %
ASB Finance Ltd., 0.18%, 3/4/14 12/24/2013 19,996,900 20,000,000 19,996,900 0.4 %
ASB Finance Ltd., 0.27%, 9/2/14 8/29/2013 25,000,000 25,000,000 25,000,000 0.5 %
Australia & New Zealand Banking Group Ltd., 0.28%, 4/15/14 4/15/2013 25,000,000 25,000,000 25,000,000 0.5 %
Australia & New Zealand Banking Group Ltd., 0.30%, 1/16/15 4/11/2013 25,000,000 25,000,000 25,000,000 0.5 %
BNZ International Funding, 0.22%, 6/13/14 12/11/2013 29,975,800 30,000,000 29,975,800 0.6 %
Caisse Centrale Desjardins du Quebec, 0.17%, 4/9/14 1/13/2014 19,993,858 20,000,000 19,993,858 0.4 %
Caisse Centrale Desjardins du Quebec, 0.18%, 4/15/14 12/13/2013 24,990,875 25,000,000 24,990,875 0.5 %
Caisse Centrale Desjardins du Quebec, 0.24%, 2/19/14 9/10/2013 19,997,600 20,000,000 19,997,600 0.4 %
Caisse des Depots et Consignations, 0.35%, 8/29/14 9/6/2013 29,939,042 30,000,000 29,939,042 0.6 %
Commonwealth Bank of Australia, 0.24%, 9/11/14 9/11/2013 40,000,000 40,000,000 40,000,000 0.8 %
Commonwealth Bank of Australia, 0.97%, 3/17/14 2/14/2013 12,511,131 12,500,000 12,511,131 0.3 %
Commonwealth Bank of Australia, 2.13%, 3/17/14 5/21/2013 10,022,075 10,000,000   10,022,075 0.2 %
DnB NOR Bank ASA, N.Y., 0.17%, 4/1/14 1/3/2014 24,993,035 25,000,000 24,993,035 0.5 %
Erste Abwicklungsanstalt, 0.13%, 2/19/14 12/26/2013 18,998,765 19,000,000 18,998,765 0.4 %
Erste Abwicklungsanstalt, 0.16%, 2/20/14 12/24/2013 29,997,467 30,000,000 29,997,467 0.6 %
Erste Abwicklungsanstalt, 0.17%, 4/2/14 12/26/2013 8,997,450 9,000,000 8,997,450 0.2 %
Erste Abwicklungsanstalt, 0.20%, 2/5/14 9/3/2013 84,998,112 85,000,000 84,998,112 1.8 %
Erste Abwicklungsanstalt, 0.35%, 2/12/14 2/12/2013 14,998,396 15,000,000 14,998,396 0.3 %
Kookmin Bank, N.Y., 0.25%, 2/6/14 11/8/2013 19,999,306 20,000,000 19,999,306 0.4 %
Kookmin Bank, N.Y., 0.24%, 3/3/14 12/2/2013 9,998,000 10,000,000 9,998,000 0.2 %
Kookmin Bank, N.Y., 0.26%, 3/5/14 12/5/2013 10,997,458   11,000,000 10,997,458 0.2 %
MetLife Institutional Funding, 0.61%, 1/6/15 1/17/2014 34,521,096 34,400,000 34,521,096 0.7 %
National Australia Funding, 0.14%, 3/26/14 12/26/2013 39,991,756   40,000,000 39,991,756 0.8 %
National Australia Funding, 0.22%, 2/20/14 8/20/2013 19,997,731 20,000,000 19,997,731 0.4 %
Nieuw Amsterdam Receivables Corp., 0.18%, 2/3/14 11/5/2013 19,999,806 20,000,000 19,999,806 0.4 %
Nordea Bank AB, 0.18%, 3/26/14 12/26/2013   64,983,254 65,000,000 64,983,254   1.4 %
Nordea Bank AB, 0.21%, 6/12/14   12/13/2013 44,965,613 45,000,000 44,965,613 0.9 %
Nordea Bank AB, 0.22%, 6/5/14 12/5/2013 29,977,784 30,000,000 29,977,784 0.6 %
Sheffield Receivables, 0.19%, 2/19/14 11/14/2013 24,997,625 25,000,000   24,997,625 0.5 %
Svenska Handelsbank, Inc., 0.16%, 3/27/14 12/13/2013   14,996,400 15,000,000 14,996,400 0.3 %
Svenska Handelsbank, Inc., 0.25%, 2/4/14 8/8/2013 19,999,583 20,000,000 19,999,583 0.4 %
United Overseas Bank Ltd., 0.22%, 3/10/14 10/23/2013 24,994,347 25,000,000 24,994,347 0.5 %
United Overseas Bank Ltd., 0.22%, 6/26/14 1/28/2014 27,975,189 28,000,000 27,975,189 0.6 %
Westpac Banking Corp., 0.98%, 3/31/14 3/22/2013 15,767,873 15,750,000 15,767,873 0.3 %
Westpac Securities NZ Ltd., 0.17%, 3/12/14 12/17/2013 32,130,082 32,136,000 32,130,082 0.7 %
Westpac Securities NZ Ltd., 0.17%, 3/27/14 12/24/2013 39,989,800 40,000,000 39,989,800 0.8 %
Westpac Securities NZ Ltd., 0.28%, 4/11/14 4/25/2013 29,000,208 29,000,000 29,000,208 0.6 %


Acquisition Total Principal Fair % of
HSBC Emerging Markets Debt Fund   Date   Cost   Amount   Value   Net Assets
Banco Nacional de Desenvolvimento Economico e Social, 5.75%, 9/26/23 9/19/2013 $ 199,780 $ 200,000   $ 194,750           0.5 %
Banco Santander SA, 4.13%, 11/9/22 11/6/2012 147,550 150,000 140,250 0.4 %
Caixa Economica Federal, 4.50%, 10/3/18 9/26/2013 149,059 150,000 147,000 0.4 %
CNOOC Curtis Funding No.1 Pty Ltd., 4.50%, 10/3/23 9/26/2013 200,000 200,000 197,700 0.5 %
Comision Federal de Electricidad, 4.88%, 1/15/24 10/17/2013 198,878 200,000 197,500 0.5 %
Development Bank of Kazakhstan, 4.13%, 12/10/22 11/26/2012 197,068 200,000 179,000 0.5 %
Gabonese Republic, 6.38%, 12/12/24 12/5/2013 200,000 200,000 205,500   0.5 %
Petroleos Mexicanos, 4.88%, 1/18/24 1/15/2014 49,727 50,000 49,762 0.1 %
Petroleos Mexicanos, 6.38%, 1/23/45 1/15/2014 50,133 50,000 50,005 0.1 %
PT Pertamina (Persero) Tbk, 4.30%, 5/20/23 5/13/2013 200,000 200,000 169,500 0.4 %
Republic of Indonesia, 3.38%, 4/15/23 4/8/2013 346,584 350,000 299,250 0.8 %
Republic of Indonesia, 5.38%, 10/17/23   7/17/2013 514,393 500,000 497,500 1.3 %
Republic of Indonesia, 5.88%, 1/15/24 1/7/2014 198,886 200,000 203,750 0.5 %
Republic of Nigeria, 6.38%, 7/12/23 7/2/2013 196,531 200,000 204,040 0.5 %
Republic of Paraguay, 4.63%, 1/25/23 1/17/2013   200,000 200,000 192,500   0.5 %
Romania, 6.13%, 1/22/44 1/14/2014 147,314 150,000 146,250 0.4 %
Russia Foreign Bond, 4.88%, 9/16/23 9/9/2013 400,123 400,000 401,000 1.0 %
Sinopec Capital (2013) Ltd., 3.13%, 4/24/23 4/19/2013   198,021 200,000 178,924 0.5 %
Sinopec Group Overseas Development (2013) Ltd., 4.38%, 10/17/23   10/9/2013 499,478   500,000   492,563 1.2 %
Turkiye Is Bankasi AS, 3.88%, 11/7/17 11/1/2012   198,963     200,000     188,540   0.5 %
Turkiye Vakiflar Bankasi TAO, 5.00%, 10/31/18 10/24/2013 198,759   200,000 188,000 0.5 %
 
Acquisition Total Principal Fair % of
HSBC Frontier Market Fund   Date   Cost   Amount   Value   Net Assets
KazMunaiGas Exploration Production GDR 9/6/2011   $ 1,723,320   $ 108,164   $ 1,564,851

1.5

%


Acquisition Total Principal Fair % of
HSBC Total Return Fund    Date    Cost    Amount    Value    Net Assets
Banco del Estado de Chile, 2.00%, 11/9/17 5/7/2013 $ 2,614,122 $ 2,600,000 $ 2,580,396               0.4 %
Banco Nacional de Desenvolvimento Economico e Social,
       5.75%, 9/26/23 		9/19/2013 2,197,580 2,200,000 2,142,250 0.3 %
Banco Santander SA, 4.13%, 11/9/22 11/6/2012 1,082,037 1,100,000 1,028,500 0.2 %
Caixa Economica Federal, 4.50%, 10/3/18 9/26/2013 2,186,200 2,200,000 2,156,000 0.3 %
CNOOC Curtis Funding No.1 Pty Ltd., 4.50%, 10/3/23 9/26/2013 1,425,000 1,425,000 1,408,613 0.2 %
CNPC General Capital Ltd., 1.45%, 4/16/16 4/9/2013 799,397 800,000 801,209 0.1 %
Comision Federal de Electricidad, 4.88%, 1/15/24 10/17/2013 1,591,022 1,600,000 1,580,000 0.2 %
Development Bank of Kazakhstan, 4.13%, 12/10/22 11/29/2012 1,743,663 1,750,000 1,566,250 0.2 %
Eskom Holdings SOC Ltd., 6.75%, 8/6/23 7/30/2013 2,428,879 2,450,000 2,465,313 0.4 %
Gabonese Republic, 6.38%, 12/12/24 12/5/2013 2,200,000 2,200,000 2,260,500 0.3 %
Harvest Operations Corp., 2.13%, 5/14/18 5/7/2013 1,096,554 1,100,000 1,081,212 0.2 %
Petroleos Mexicanos, 4.88%, 1/18/24 1/15/2014 248,635 250,000 248,811 0.0 %
Petroleos Mexicanos, 6.38%, 1/23/45 1/15/2014 501,335 500,000 500,047 0.1 %
PT Pertamina (Persero) Tbk, 4.30%, 5/20/23   5/13/2013   1,300,000 1,300,000 1,101,750 0.2 %
Republic of Costa Rica, 4.25%, 1/26/23 11/16/2012 1,199,881 1,200,000 1,080,000 0.2 %
Republic of Indonesia, 3.38%, 4/15/23 4/8/2013 1,782,432 1,800,000 1,539,000 0.2 %
Republic of Indonesia, 5.88%, 1/15/24 1/7/2014 3,684,049 3,700,000 3,769,375 0.6 %
Republic of Serbia, 5.88%, 12/3/18 11/21/2013 2,771,081   2,800,000 2,835,000 0.4 %
Russia Foreign Bond, 4.88%, 9/16/23 9/9/2013 2,357,193   2,400,000 2,406,000 0.4 %
Sinopec Capital (2013) Ltd., 1.25%, 4/24/16 4/18/2013   3,293,578 3,300,000   3,289,945 0.5 %
Sinopec Group Overseas Development (2013) Ltd. 4.38%, 10/17/23 10/9/2013 5,363,723 5,400,000 5,319,675 0.8 %
Turkiye Halk Bankasi AS, 3.88%, 11/7/17 11/1/2012 994,813 1,000,000 942,700   0.1 %
Turkiye Halk Bankasi AS, 3.88%, 2/5/20 1/29/2013 2,475,955 2,500,000 2,162,500 0.3 %
Turkiye Is Bankasi AS, 5.50%, 4/21/19 10/10/2013 1,442,614 1,450,000   1,395,625 0.2 %
Turkiye Vakiflar Bankasi TAO, 5.00%, 10/31/18 10/24/2013 795,035 800,000 752,000 0.1 %
Turkiye Vakiflar Bankasi TAO, 6.00%, 11/1/22 12/3/2012 1,447,992 1,400,000 1,176,000 0.2 %

Foreign Currency Translation:

     The accounting records of the Funds and the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities are translated at the prevailing rate of exchange on the respective dates of such transactions. The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.

Participation Notes and Participatory Notes:

     The Frontier Markets Fund may invest in participation notes or participatory notes (“P-notes”). P-notes are participation interest notes that are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying equity, debt, currency or market. If the P-note was held to maturity, the issuer would pay to, or receive from, the purchaser the difference between the nominal value of the underlying instrument at the time of purchase and that instrument’s value at maturity. The holder of a P-note that is linked to a particular underlying security or instrument may be entitled to receive any dividends paid in connection with that underlying security or instrument, but typically does not receive voting rights as it would if it directly owned the underlying security or instrument. P-notes involve transaction costs. Investments in P-notes involve the same risks associated with a direct investment in the underlying securities, instruments or markets that they seek to replicate. In addition, there can be no assurance that there will be a trading market for a P-note or that the trading price of a P-note will equal the underlying value of the security, instrument or market that it seeks to replicate. Due to liquidity and transfer restrictions, the secondary markets on which a P-note is traded may be less liquid than the market for other securities, or may be completely illiquid, which may also affect the ability of a fund to accurately value a P-note. P-notes typically constitute general unsecured contractual obligations of the banks or broker-dealers that issue them, which subjects the Fund that holds them to counterparty risk (and this risk may be amplified if the Fund purchases P-notes from only a small number of issuers).


Repurchase Agreements:

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

Derivative Instruments:

     All open derivative positions at period end are reflected on each Fund’s Schedule. The following is a description of the derivative instruments utilized by the Funds, including the primary underlying risk exposure related to each instrument type.

Forward Foreign Currency Exchange Contracts:

     Each Emerging Market Fund may enter into forward foreign currency exchange contracts. The Emerging Market Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities, to hedge the U.S. dollar value of securities denominated in a particular currency or to enhance return. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.

     The Emerging Market Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

     The Emerging Market Funds remain subject to credit risk with respect to the amount they expect to receive from counterparties. However, the Emerging Markets Funds have sought to mitigate these risks by generally requiring the posting of collateral to a Fund at prearranged exposure levels to cover a Fund’s exposure to the counterparty.

     As of January 31, 2014, the Emerging Markets Funds entered into forward foreign currency exchange contracts to gain exposure to certain markets and for hedging purposes.


Options Contracts:

     The Emerging Markets Funds may purchase or write put and call options on securities, indices, foreign currencies and derivative instruments. When purchasing options, the Emerging Markets Funds pay a premium which is recorded as the cost basis in the investment which is subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options that expire are treated as realized losses. When an option is exercised or closed, premiums paid for purchasing options are offset against proceeds to determine the realized gain or loss on the transaction. When writing options, the Emerging Markets Funds receive a premium which is recorded as a liability which is subsequently marked to market to reflect the current value of the option written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options that are either exercised or closed are offset against the proceeds received or the amount paid on the transaction to determine realized gains or losses.

     The Emerging Markets Funds may purchase or write put and call options on foreign currencies for the purpose of protecting against declines in the dollar value of foreign portfolio securities and against increases in the U.S. dollar cost of foreign securities to be acquired. The Emerging Markets Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

     The Emerging Markets Funds may enter into interest rate swaption agreements for hedging purposes. A swaption is an option to enter into a pre-defined swap agreement by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed rate receiver or a fixed rate buyer. The Emerging Markets Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in interest rates.

     The Emerging Markets Funds remain subject to credit risk with respect to the amount they expect to receive from counterparties. However, the Emerging Markets Funds have sought to mitigate these risks by generally requiring the posting of collateral to an Emerging Markets Fund at prearranged exposure levels to cover an Emerging Markets Fund’s exposure to the counterparty.

Futures Contracts :

     Each Emerging Markets Fund may invest in futures contracts for the purpose of hedging existing portfolio securities or securities they intend to purchase against fluctuations in fair value caused by changes in prevailing market interest conditions. Upon entering into futures contracts, the Emerging Markets Funds are required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin”, are made or received each day, depending on the daily fluctuations in the fair value of the underlying security. The Emerging Markets Funds recognize an unrealized gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Emerging Markets Funds may not achieve the anticipated benefits of the futures contracts and may realize a loss. Futures contracts involve, to varying degrees, elements of market risk (generally equity price risk related to stock futures, interest rate risk related to bond futures, and foreign currency risk related to currency futures) and exposure to loss in excess of the variation margin. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Emerging Markets Funds and the prices of futures contracts, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract. As of January 31, 2014, the Emerging Market Debt Fund and Total Return Fund invested in futures contracts to gain exposure to certain markets and for hedging purposes.

Swap Agreements:

     The Emerging Markets Funds may enter into swap contracts in accordance with their investment objectives and policies. A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The payment streams are calculated by reference to a specified index and agreed upon notional amount. The term specified index includes currencies, fixed interest rates, prices and total return on interest rate indices, fixed income indices, stock indices and commodity indices.


     The Emerging Markets Funds will usually enter into swaps on a net basis, which means that the two return streams are netted out in a cash settlement on the payment date or dates specified in the instrument, with a Fund receiving or paying only the net amount of the two returns. Upfront receipts and payments are recorded as deferred income (liability) or deferred expense (asset), as the case may be. These upfront receipts and payments are amortized to income or expense over the life of the swap agreement. Until a swap agreement is settled in cash, the gain or loss on the notional amount plus income on the instruments, less the interest paid by the Fund on the notional amount, is recorded as “unrealized appreciation or depreciation on swap agreements” and, when cash is exchanged, the gain or loss realized is recorded as “realized gains or losses on swap agreements”. An Emerging Market Fund’s obligations under a swap agreement will be accrued daily (offset against any amounts owed to the Emerging Market Fund) and any accrued but unpaid net amounts owed to a swap counterparty will be covered by the maintenance of a segregated account consisting of cash, U.S. government securities, or other liquid securities or pledging such securities as collateral.

     Interest rate swaps involve the exchange of commitments to pay and receive interest based on a notional amount and are subject to interest rate risk exposure. Interest rate swaps do not involve the delivery of securities, other underlying assets or principal. Accordingly, the risk of loss with respect to interest rate swaps is limited to the net amount of interest payments that an Emerging Market Fund is contractually obligated to make. If the other party to an interest rate swap defaults, an Emerging Market Fund’s risk of loss consists of the net amount of interest payments that the Emerging Market Fund is contractually entitled to receive.

     Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index and are subject to credit risk exposure. The maximum potential amount of future payments that an Emerging Market Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of January 31, 2014 for which an Emerging Market Fund is the seller of protection are disclosed in the Schedules. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by an Emerging Market Fund for the same referenced entity or entities.

     The Emerging Markets Funds remain subject to credit risk with respect to the amount they expect to receive from counterparties. However, the Emerging Markets Funds have sought to mitigate these risks by generally requiring the posting of collateral to an Emerging Market Fund at prearranged exposure levels to cover an Emerging Market Fund’s exposure to the counterparty.

     The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Investment Adviser is incorrect in its forecasts of market values, interest rates and currency exchange rates, the investment performance of an Emerging Market Fund would be less favorable than it would have been if this investment technique were not used.

     As of January 31, 2014, the Emerging Markets Local Debt Fund and the Total Return Fund entered into interest rate swap agreements to manage their exposure to interest rates and as a substitute for investing directly in securities. The Emerging Markets Debt Fund and Total Return Fund also entered into credit default swap agreements primarily to manage and/or gain exposure to credit risk.


3. Investment Valuation Summary:

     The valuation techniques employed by the Funds and the Portfolios, as described below, maximize the use of observable inputs and minimize the use of unobservable inputs in determining fair value. The inputs used for valuing the Funds’ and the Portfolios’ investments are summarized in the three broad levels listed below:

  • Level 1—quoted prices in active markets for identical assets
     
  • Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayments speeds, credit risk, etc.)
     
  • Level 3—significant unobservable inputs (including the Fund’s and the Portfolios’ own assumptions in determining the fair value of investments)

     Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The Funds and the Portfolios determine transfers between fair value hierarchy levels at the reporting period end. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

Feeder Funds and World Selection Funds

     The World Selection Funds record their investments in the Underlying Funds at the net asset value reported by those funds and are typically categorized as Level 1 in the fair value hierarchy. The Feeder Funds and World Selection Feeder Funds record their investments in their respective Portfolios at fair value and are typically categorized as Level 2 in the fair value hierarchy. The underlying securities of the Portfolios are recorded at fair value, as more fully discussed below.

Portfolios and Emerging Markets Funds

     Exchange traded, domestic equity securities are valued at the last sales price on a national securities exchange, or in the absence of recorded sales, at the readily available closing bid price on such exchanges, or at the quoted bid price in the over-the-counter market and are typically categorized as Level 1 in the fair value hierarchy.

     Exchange traded, foreign equity securities are valued in the appropriate currency at the last quoted sale price or, in the absence of recorded sales, at the readily available closing bid price on such exchange. If no sale is available because the country is on holiday the previous day's last quoted sales price would be utilized. These securities are typically categorized as Level 1. Foreign equity securities that are not exchanged traded are valued in the appropriate currency at the average of the quoted bid and asked prices in the over-the-counter market and are typically categorized as Level 2 in the fair value hierarchy.

     Rights and Warrants are valued at the last sales price on a national securities exchange. If these instruments are not scheduled to trade for a certain period they are generally valued intrinsically based on the terms of the issuance and the price of the underlying security. The time value of the warrants may also be considered by the Advisor. These instruments are typically categorized as Level 1 in the fair value hierarchy.

     P-notes are valued by taking the last sales price of the underlying security on its primary exchange. In the absence of a recorded sale on the underlying security the readily available closing bid price on such exchange will be used. If no sale is available because the country is on holiday the previous day's last quoted sales price would be utilized. All local prices will be converted to U.S. dollars using the foreign currency exchange rate as of the close of regular trading on the New York Stock Exchange. These instruments are typically categorized as Level 2 in the fair value hierarchy.

     Shares of exchange traded and closed-end registered investment companies are valued in the same manner as other equity securities and are typically categorized as Level 1 in the fair value hierarchy. Mutual funds are valued at their net asset values, as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy.


     Exchange traded futures contracts are valued at their settlement price on the exchange on which they are traded and are typically categorized as Level 1 in the fair value hierarchy.

     Forward foreign currency contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate, and the prevailing forward rates and converted to U.S. dollars at the exchange rate of such currencies against the U.S. dollar, as of the close of regular trading on the New York Stock Exchange, as provided by an approved pricing service, and are typically categorized as Level 2 in the fair value hierarchy. Non-exchange traded derivatives, such as swaps and options, are generally valued by using a valuation provided by an approved independent pricing service and are typically categorized as Level 2 in the fair value hierarchy.

     Repurchase agreements are valued at original cost and are typically categorized as Level 2 in the fair value hierarchy.

     Bonds and other fixed income securities (other than short-term obligations but including listed issues) are valued at the bid price as of the time net asset value is determined on the basis of valuations furnished by a pricing service, the use of which has been approved by the Emerging Market Funds’ Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and matrix techniques which take into account appropriate factors such as the institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges or over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities and are typically categorized as Level 2 in the fair value hierarchy.

     Securities or other assets for which market quotations are not readily available, or are deemed unreliable due to a significant event, are valued pursuant to procedures adopted by the Trusts’ Board (“Procedures”). Depending on the source and relative significance of valuation inputs, these instruments may be classified as Level 2 or Level 3 in the fair value hierarchy. Examples of potentially significant events that could affect the value of an individual security and thus require pricing under the Procedures include corporate actions by the issuer, announcements by the issuer relating to its earnings or products, regulatory news, natural disasters, and litigation. Examples of potentially significant events that could affect multiple securities held by a Portfolio or Emerging Market Fund include governmental actions, natural disasters, and armed conflicts. Fair value pricing may require subjective determinations about the value of a security. While the Portfolios and Emerging Markets Funds Trusts’ policy is intended to result in a calculation of a Portfolio’s or Emerging Market Fund’s net asset value that fairly reflects security values as of the time of pricing, the Portfolios or Emerging Market Funds Trust cannot ensure that fair values determined would accurately reflect the price that a Portfolio or Emerging Market Fund could obtain for a security if it were to dispose of that security as of the time of pricing. The prices used by a Portfolio or Emerging Market Fund may differ from the value that would be released if the securities were sold and the differences could be material to the financial statements.

     In addition, if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the Emerging Markets Funds’ net assets are calculated, such securities may be valued using fair value pricing in accordance with procedures adopted by the Board. Management identifies possible fluctuations in foreign securities by monitoring the rise or fall in the value of a designated benchmark index. In the event of a rise or fall greater than predetermined levels, the Funds may use a systematic valuation model provided by an independent third party to value its foreign securities, rather than local market closing prices. When an Emerging Market Fund uses such a valuation model, the value assigned to the Emerging Market Fund’s foreign securities may not be the quoted or published prices of the investment on their primary markets or exchanges and are typically categorized as Level 2 in the fair value hierarchy. The valuation of these securities may represent a transfer between Levels 1 and 2. The number of days on which fair value prices will be used will depend on market activity and it is possible that fair value prices will be used by the Emerging Market Funds to a significant extent.


Money Market Funds

     Investments of the Money Market Funds are valued using the amortized cost method pursuant to Rule 2a-7 under the Act, which approximates fair value and are typically categorized as Level 2 in the fair value hierarchy. The amortized cost method involves valuing an instrument at its cost initially and thereafter assuming a constant amortization to maturity of any discounts or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. The amortized cost method may result in periods during which value, as determined by amortized cost, is higher or lower than the price a Money Market Fund holding the instrument would receive if it sold the instrument. The fair value of securities in the Money Market Funds can be expected to vary with changes in prevailing interest rates.

     Investments in other money market funds are priced at net asset value as reported by such companies and are typically categorized as Level 1 in the fair value hierarchy.

     As of the beginning and end of the quarter ended January 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.

     The following is a summary of the valuation inputs used as of January 31, 2014 in valuing the Funds’ and Portfolios’ investments based upon the three levels defined above. The breakdown of investment categorization is disclosed in the Funds’ and Portfolios’ Schedules.

Growth Fund                                                                                                    
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Portfolio (a)                      –   81,486,581 – 81,486,581
              Total Investment Securities – 81,486,581 – 81,486,581
 
Opportunity Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Portfolio (a) – 16,244,120   – 16,244,120  
              Total Investment Securities – 16,244,120 – 16,244,120
 
Prime Money Market Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Certificates of Deposit – 1,699,308,174 – 1,699,308,174
       Commercial Paper and Notes – 1,509,679,079 –  1,509,679,079
       Corporate Obligations – 286,596,694 – 286,596,694
       Yankee Dollars – 73,301,079 – 73,301,079
       U.S. Treasury Obligations – 372,646,448 – 372,646,448
       Time Deposits – 861,000,000 – 861,000,000
              Total Investment Securities – 4,802,531,474 – 4,802,531,474
 
U.S. Government Money Market Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       U.S. Government and Government Agency Obligations – 1,168,793,413 – 1,168,793,413
       U.S. Treasury Obligations – 1,306,992,442 – 1,306,992,442
       Repurchase Agreements – 1,500,000,000 – 1,500,000,000
              Total Investment Securities – 3,975,785,855 – 3,975,785,855
 
U.S. Treasury Money Market Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       U.S. Treasury Obligations – 1,821,736,059 – 1,821,736,059
              Total Investment Securities – 1,821,736,059 – 1,821,736,059
 
Aggressive Strategy Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Investment Companies 358,415 – – 358,415
       Affiliated Portfolios (a) – 2,067,928 – 2,067,928
       Unaffiliated Investment Companies 7,475,169 – – 7,475,169
       Exchange Traded Funds 7,906,153 – – 7,906,153
              Total Investment Securities 15,739,737 2,067,928 – 17,807,665
 
Balanced Strategy Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Investment Companies 5,235,665 – – 5,235,665
       Affiliated Portfolios (a) – 4,040,380 – 4,040,380
       Unaffiliated Investment Companies 22,226,297   –   –   22,226,297
       Exchange Traded Funds   16,777,003 – – 16,777,003
              Total Investment Securities 44,238,965 4,040,380 – 48,279,345
 
Moderate Strategy Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Investment Companies 5,296,129 – – 5,296,129
       Affiliated Portfolios (a) – 2,385,752 – 2,385,752
       Unaffiliated Investment Companies 23,861,198 – – 23,861,198
       Exchange Traded Funds 11,135,059 – – 11,135,059
              Total Investment Securities 40,292,386 2,385,752 – 42,678,138
 
Conservative Strategy Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Investment Companies 2,526,922 – – 2,526,922
       Affiliated Portfolios (a) – 707,817 – 707,817
       Unaffiliated Investment Companies 13,463,868 – – 13,463,868
       Exchange Traded Funds 3,734,254 – – 3,734,254
              Total Investment Securities 19,725,044 707,817 – 20,432,861


Income Strategy Fund                                                                                                  
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Affiliated Investment Companies           132,633 –                  – 132,633
       Unaffiliated Investment Companies 1,126,246 – – 1,126,246
       Exchange Traded Fund 19,545 – – 19,545
              Total Investment Securities 1,278,424 – –       1,278,424
 
Emerging Markets Debt Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Yankee Dollars –      38,421,627 – 38,421,627
       Corporate Obligation – 10,433 – 10,433
       Unaffiliated Investment Company 316,837 – – 316,837
              Total Investment Securities 316,837 38,432,060 – 38,748,897
Other Financial Instruments: (b)                      
       Futures Contracts 1,924 – – 1,924
       Credit Default Swaps   –     21,264     –   21,264  
       Forward Currency Contracts – (35,989 ) – (35,989 )
              Total Other Financial Instruments   1,924     (14,725 )   –   (12,801 )
 
Emerging Markets Local Debt Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Foreign Bonds – 17,767,478 – 17,767,478
       Yankee Dollars – 1,861,105 – 1,861,105
       U.S. Treasury Obligation – 749,873 – 749,873
       Unaffiliated Investment Company 7,851,888 – – 7,851,888
              Total Investment Securities 7,851,888 20,378,456 –   28,230,344
Other Financial Instruments: (b)
       Interest Rate Swaps – (445,380 ) – (445,380 )
       Forward Currency Contracts – (391,970 ) – (391,970 )
              Total Other Financial Instruments – (837,350 ) – (837,350 )
 
Frontier Markets Fund
Investment Securities:       LEVEL 1 ($)       LEVEL 2 ($)       LEVEL 3 ($)       Total ($)
       Common Stocks                
              Commercial Banks 3,778,330 33,560,900 – 37,339,230
              Oil and Gas Consumable Fuels   308,674   7,513,302   –   7,821,976
              Metals and Mining – – – –
              Real Estate Management and Development   1,054,268   3,065,724   –   4,119,992
              Wireless Telecommunication Services 508,980 1,317,139 – 1,826,119
              Other Common Stocks   –   36,080,104   –   36,080,104
       Convertible Corporate Bonds – 53,228 – 53,228
       Warrants   1   –   – (c)   1
       Participatory Notes – 12,926,242 – 12,926,242
       Unaffiliated Investment Company   6,534,552   –   –   6,534,552
              Total Investment Securities   12,184,805   94,516,639   –   106,701,444
 
Total Return Fund
Investment Securities: LEVEL 1 ($) LEVEL 2 ($) LEVEL 3 ($) Total ($)
       Foreign Bonds – 26,031,936 – 26,031,936
       Yankee Dollars – 424,366,496 – 424,366,496
       U.S. Treasury Obligation – 44,760,434 – 44,760,434
       Unaffiliated Investment Company 90,586,173 – – 90,586,173
              Total Investment Securities 90,586,173 495,158,866 – 585,745,039
Other Financial Instruments: (b)
       Futures Contracts (47,208 ) – – (47,208 )
       Interest Rate Swaps – (1,874,810 ) – (1,874,810 )
       Credit Default Swaps – 1,466,178 – 1,466,178
       Forward Currency Contracts – (1,481,991 ) – (1,481,991 )
              Total Other Financial Instruments (47,208 ) (1,890,623 ) – (1,937,831 )


RMB Fixed Income Fund                                                                            
Investment Securities: LEVEL 1 ($)       LEVEL 2 ($)       LEVEL 3 ($)       Total ($)
       Foreign Bonds –         12,249,068   –     12,249,068  
       Certificates of Deposit –   1,490,580 –   1,490,580
       Unaffiliated Investment Company            120,132 – – 120,132
              Total Investment Securities 120,132 13,739,648 – 13,859,780

Growth Portfolio                                                                            
Investment Securities: LEVEL 1 ($)       LEVEL 2 ($)       LEVEL 3 ($)       Total ($)
       Common Stocks       86,220,028   – –       86,220,028  
       Money Market 263,270   – –   263,270
              Total Investment Securities 86,483,298 – – 86,483,298
 
Opportunity Portfolio                                                                            
Investment Securities: LEVEL 1 ($)       LEVEL 2 ($)       LEVEL 3 ($)       Total ($)
       Common Stocks 222,801,338   – – 222,801,338  
       Investment Companies 11,041,953 – – 11,041,953
              Total Investment Securities      233,843,291 – –      233,843,291

(a)        Investments in Affiliated Portfolios represents ownership interests in the Portfolios. Due to the Funds' master-feeder structure, the inputs used for valuing the instruments are categorized as Level 2.
(b)        Other financial instruments would include any derivative instruments, such as forward foreign currency contracts, futures contracts and swap agreements.
(c) Security was received as part of a private placement offering. The underlying stock price is trading significantly below the strike price of the warrants and the warrants are non-transferable. Security valued at $0 in good faith pursuant to procedures approved by the Board of Trustees as of January 31, 2014.

     The only transfers between levels as of January 31, 2014 are related to the use of the systematic valuation model to value foreign securities in the Frontier Markets Fund.

4. Investment Risks:

     Foreign Securities Risk: Investments in foreign securities are generally considered riskier than investments in U.S. securities. Foreign securities, including those of emerging and frontier market issuers, are subject to additional risks, including international trade, political and regulatory risks.

     Emerging Markets Risk: The prices of securities in emerging markets can fluctuate more significantly than the prices of companies in more developed countries. Securities of emerging market issuers generally have more risk than securities issued by issuers in more developed markets. The less developed the country, the greater affect the risks may have in an investment, and as a result, an investment may exhibit a higher degree of volatility than either the general domestic securities market or the securities markets of developed foreign countries.

     Frontier Market Countries Risk: Frontier market countries generally have smaller economies and even less developed capital markets or legal and political systems than traditional emerging market countries. As a result, the risks of investing in emerging market countries are magnified in frontier market countries. The magnification of risks are the result of: the potential for extreme price volatility and illiquidity in frontier markets; government ownership or control of parts of private sector and of certain companies; trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which frontier market countries trade; and the relatively new and unsettled securities laws in many frontier market countries.

     Concentration of Credit Risk : The RMB Fixed Income Fund is likely to be more volatile than the performance of other mutual funds due to its focused investment in instruments having exposure to China. Because the Fund concentrates its investments in China, the Fund’s performance is expected to be closely tied to social, political, and economic conditions within China and to be more volatile than the performance of more geographically diversified funds.


     Derivatives Risk : The term “derivatives” covers a broad range of investments, including futures and currency forwards. In general, a derivative refers to any financial instrument whose value is derived, at least in part, from the price of another security or a specified index, asset or rate. The use of derivatives presents risks different from, and possibly greater than, the risks associated with investing directly in traditional securities. The use of derivatives can lead to losses because of adverse movements in the price or value of the underlying asset, index or rate, which may be magnified by certain features of the derivatives. These risks are heightened when derivatives are used to enhance a Fund’s return or as a substitute for a position or security, rather than solely to hedge (or offset) the risk of a position or security held by a Fund. The success of Fund’s derivatives strategies will also be affected by its ability to assess and predict the impact of market or economic developments on the underlying asset, index or rate and the derivative itself, without the benefit of observing the performance of the derivative under all possible market conditions. Derivatives involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, index or rate. Certain derivative positions may be difficult to close out when a Fund’s portfolio manager may believe it would be appropriate to do so. Also, suitable derivative transactions may not be available in all circumstances and there can be no assurance that a Fund will engage in these transactions to reduce exposure to other risks when that would be beneficial.

     Swap Risk : The use of swap agreements, which are agreements to exchange the return generated by one instrument for the return generated by another instrument (or index), and similar instruments involves risks that are different from those associated with ordinary portfolio securities transactions. For example, a Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Swap agreements may also subject a Fund to the risk that the counterparty to the transaction may not meet its obligations, causing the Fund’s value to decrease. Swap agreements may also be considered illiquid.

5. Federal Income Tax Information:

     At January 31, 2014, the cost basis of securities (which excludes investments in Affiliated Portfolios) for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation and net unrealized appreciation/depreciation were as follows:

Net Unrealized
Tax Unrealized Tax Unrealized Appreciation/
Appreciation Depreciation (Depreciation)
Fund   Tax Cost ($) ($) ($) ($)
Prime Money Market Fund 4,802,531,474 - - -
U.S. Government Money Market Fund       3,975,809,753 -       (23,898 ) (23,898 )
U.S. Treasury Money Market Fund 1,821,736,059 - -       -
Aggressive Strategy Fund 14,222,937 1,762,373 (245,573 ) 1,516,800
Balanced Strategy Fund 42,453,532       3,694,191 (1,908,758 ) 1,785,433
Moderate Strategy Fund 39,674,053 2,499,551 (1,881,219 ) 618,333
Conservative Strategy Fund 19,656,489 851,729 (783,174 ) 68,555
Income Strategy Fund 1,308,870 14,818 (45,264 ) (30,446 )
Emerging Markets Debt Fund 40,132,021 293,227 (1,676,351 ) (1,383,124 )
Emerging Markets Local Debt Fund 32,407,788 33,111 (4,210,555 ) (4,177,444 )
Frontier Markets Fund 97,935,430 11,536,229 (2,770,215 ) 8,766,014
Total Return Fund 602,158,938 1,025,146 (17,439,045 ) (16,413,899 )
RMB Fixed Income Fund 13,254,032 608,213 (2,465 ) 605,748
Growth Portfolio 58,454,869 28,525,953 (497,524 ) 28,028,429
Opportunity Portfolio 184,759,074 50,899,115 (1,814,898 ) 49,084,217


Item 2. Controls and Procedures.

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

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

Item 3. Exhibits.

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


SIGNATURES

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

(Registrant)        HSBC Funds

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

Date        March 27, 2014

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

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

Date        March 27, 2014

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

Date        March 28, 2014

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