HSBC to liquidate three HSBC Investor funds in December

By Toni Weeks

San Diego, Nov. 15 - The boards of trustees of HSBC Investor Funds and HSBC Advisor Funds trust have approved plans of liquidation to close three funds on Dec. 31, according to a 497 filing with the Securities and Exchange Commission.

The affected funds are the HSBC Investor Value Fund, the HSBC Investor International Equity Fund and the HSBC Investor Overseas Equity Fund. The funds are no longer selling shares to new investors, including through exchanges into each fund from other HSBC funds.

All securities of each fund will converted to cash or cash equivalents on or before the liquidation date. Shareholders in each of the funds as of that date will receive an amount equal to their proportionate interest in the net assets of each of the funds, after each fund has paid all taxes and fees.

Shareholders may voluntarily redeem their shares prior to the liquidation date. The funds may also make a distribution of undistributed net income prior to the liquidation date.

Although the liquidations are not expected to be taxable events for the funds, for taxable shareholders, the automatic redemption of shares of each fund on the liquidation date will generally be treated as a sale that may result in a gain or loss for federal income tax purposes.

The funds' investment adviser is New York-based HSBC Global Asset Management (USA), Inc.

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