HSBC Global Investment Funds Unaudited Semi-Annual Report for the period from 1 April 2009 to 30 September 2009 Unaudited semi-annual report for the period from 1 April 2009 to 30 September 2009 Société d’Investissement à Capital Variable (SICAV), Luxembourg 1 Information concerning the distribution of shares of HSBC Global Investment Funds in Switzerland or from Switzerland. HSBC Private Bank (Suisse) SA, Quai du Général Guisan 2, case postale 3580 CH-1211 Geneva 3, is the legal representative of the Company in Switzerland and the Company’s paying agent. The prospectus, simplified prospectuses, articles and annual and semi-annual reports of the Company may be obtained free of charge upon request from the HSBC Private Bank (Suisse) S.A. A breakdown of all the transactions carried out on behalf of each sub-fund of HSBC Global Investment Funds in the period under review can be obtained, free of charge, from the Company’s representative in Switzerland. Information concerning the distribution of shares of HSBC Global Investment Funds in Germany or from Germany. HSBC Trinkaus & Burkhardt AG, 21-23 Königsallee, D-40212 Düsseldorf, is the legal representative of the Company in Germany and the Company’s paying agent. The prospectus, simplified prospectuses, articles and annual and semi-annual reports of the Company may be obtained free of charge upon request from the HSBC Trinkaus & Burkhardt AG. A breakdown of all the transactions carried out on behalf of each sub-fund of HSBC Global Investment Funds in the period under review can be obtained, free of charge, from the Company’s representative in Germany. No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus accompanied by the latest annual and the most recent semi-annual report, if published thereafter. Unaudited semi-annual report for the period from 1 April 2009 to 30 September 2009 2 Table of Contents Board of Directors 4 Management and Administration 5 Directors’ Report 8 Statement of Net Assets as at 30 September 2009 24 Key Figures as at 30 September 2009 35 Statement of Operations and Changes in Net Assets 46 Notes to the Financial Statements 57 Comparative Table of Net Assets 115 Portfolio of Investments and other Net Assets 130 Currency Conversion Table 269 Dealing Days of the Fund 270 Non-Dealing Days of the Fund 271 3 Board of Directors BOARD OF DIRECTORS OF THE COMPANY Didier Deleage (Chairman), Chief Operating Officer, HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. Thies Clemenz, Chief Operating Officer, HSBC Global Asset Management (Deutschland) GmbH, Königsallee 21/23, D-40212 Düsseldorf, Germany. Jennifer Foo Chin Hau Kau Fong, Vice President, HSBC Customer Services, Global Business, The HongKong and Shanghai Banking Corporation Limited, HSBC Centre, 18, CyberCity, Ebene, Mauritius. David Dibben, Chief Operating Officer - Global Fund Ranges, HSBC Global Asset Management Limited, 8 Canada Square, London E14 5HQ, United Kingdom. George Efthimiou, Global Chief Operating Officer, HSBC Global Asset Management Limited, 8 Canada Square, London E14 5HQ, United Kingdom. David Silvester, Head of Global Product Management, HSBC Global Asset Management Limited, 8 Canada Square, London E14 5HQ, United Kingdom. Edmund Stokes, Chief Operating Officer, HSBC Global Asset Management (Hong Kong) Limited HSBC Main Building, 1 Queen’s Road Central, Hong Kong. Sylvie Vigneaux, Head of Regulatory and Wealth Engineering, HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. 4 Management and Administration Registered Office 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg. R.C.S. Luxembourg N° B-25087 Management Company HSBC Investment Funds (Luxembourg) S.A., 16, boulevard d'Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg. Custodian, Administration Agent, Transfer Agent and Central Paying Agent RBC Dexia Investor Services Bank S.A. 14, Porte de France, L- 4360 Esch-sur-Alzette, Grand Duchy of Luxembourg. Investment Advisers Halbis Capital Management (USA) Inc., 452 Fifth Avenue, 18th Floor, New York, NY 10018, USA. Halbis Capital Management (Hong Kong) Limited, HSBC Main Building, 1, Queen’s Road Central, Hong Kong. Halbis Capital Management (UK) Limited, 8, Canada Square, London E14 5HQ, United Kingdom. Halbis Capital Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. HSBC Bank Brazil SA - Banco Múltiplo, Travessa Oliveira Belo, 11-B, 80020-030 Curitiba, Brazil. HSBC Global Asset Management (Singapore) Limited, 21 Collyer Quay, # 15-02 HSBC Building, Singapore 049320, Singapore. HSBC Global Asset Management (USA) Inc., 452 Fifth Avenue, 18th Floor, New York, NY 10018, USA. HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. HSBC Global Asset Management (Deutschland) GmbH, Königsallee 21/23, D-40212 Düsseldorf, Germany. HSBC Portfoy Yonetimi A.S., Esentepe Mahallesi, Büyükdere Caddesi, No:128, 34394 Sisli, Istanbul, Turkey Sinopia Asset Management (UK) Limited, 8, Canada Square, London E14 5HQ, United Kingdom. Sinopia Asset Management, Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. Sinopia Asset Management (Asia Pacific) Limited, Level 22, HSBC Main Building, 1 Queen’s Road Central, Hong Kong. 5 Management and Administration (continued) Share Distributors Global Distributor HSBC Investment Funds (Luxembourg) S.A., 16, boulevard d’Avranches, L-1160 Luxembourg, Grand Duchy of Luxembourg. Austria and Eastern Europe Share Distributor HSBC Trinkaus & Burkhardt AG, Königsallee 21/23, D-40212 Düsseldorf, Germany. Hong Kong Representative and Share Distributor HSBC Investment Funds (Hong Kong) Limited, HSBC Main Building, 1 Queen's Road Central, Hong Kong. United Kingdom Representative and Share Distributor HSBC Global Asset Management (UK) Limited, 8, Canada Square, London E14 5HQ, United Kingdom. Republic of Ireland Distributor HSBC Global Asset Management (UK) Limited, 8, Canada Square, London E14 5HQ, United Kingdom. Republic of Ireland Representative HSBC Securities Services (Ireland) Limited, HSBC House, Harcourt Centre, Harcourt Street, Dublin 2, Ireland. Jersey Representative and Share Distributor HSBC Global Asset Management (International) Limited, HSBC House, Esplanade, St Helier, Jersey, JE1 1HS Channel Islands. Singapore Representative and Share Distributor HSBC Global Asset Management (Singapore) Limited, 21, Collyer Quay, #15-02 HSBC Building, Singapore 049320, Singapore. Swiss Representative and Paying Agent in Switzerland HSBC Private Bank (Suisse) S.A., Quai du Général Guisan 2, Case postale 3580, CH-1211 Geneva 3, Switzerland. Korea Representative and Share Distributor HSBC Korea Ltd, HSBC Building #25, 1-Ka, Bongrae-Dong, Chung-Ku, Seoul, Korea. Distributor for Continental Europe HSBC Global Asset Management (France), Immeuble Ile de France, 4, Place de la Pyramide, La Défense 9, 92800 Puteaux, France. Poland Representative and Paying Agent HSBC Bank Polska SA, PL, Pilsudskiego 2,00-073, Warszawa, Poland. 6 Management and Administration (continued) Paying Agent in Hong Kong The Hongkong and Shanghai Banking Corporation Limited, HSBC Main Building, 1, Queen’s Road Central, Hong Kong. Auditor KPMG Audit S. à r. l. 9, allée Scheffer, L-2520 Luxembourg, Grand Duchy of Luxembourg. Legal Adviser Elvinger, Hoss & Prussen, 2, place Winston Churchill, B.P. 425, L - 2014 Luxembourg, Grand Duchy of Luxembourg. 7 Directors’ Report Directors Comments The directors present the Semi-Annual Report and Accounts for HSBC Global Investment Funds for year ending 30 September 2009 HSBC GIF Funds – Interim Report – 1 April 2009 to 30 September 2009 Investment Manager comments regarding the performance during the period. Reserve Sub-Fund HGIF Euro Reserve For the period 1 April 2009 to 30 September 2009, the Fund returned 0.15% (net of fees, Class AC), against a benchmark return of 0.28% (European Overnight Index Average – EONIA). During the period the eurozone suffered a recession, while headline inflation remained negative. In this context, the European Central Bank (ECB) decided to cut its refinancing interest rate from 1.25% to 1.00% in early May. As a second measure, the ECB added considerable liquidity to the inter-bank system. As a consequence the excess liquidity pushed the EONIA to a record low level (and well below the eurozone refinancing rate). However, recent data showed that the eurozone managed to exit the recession sooner than had been expected. Real GDP seemed to have expanded again in the third quarter of 2009, after contracting marginally in spring 2009. The economic outlook remains uncertain with a poor labour market. The Manager remained cautious during the period and maintained liquidity within the Fund by investing mainly in government bonds. Bond Sub-Funds HGIF Brazil Bond For the period 1 April 2009 to 30 September 2009, the Fund returned 34.00% (net of fees Class AC), against a benchmark return of 36.20% (Brazilian Interbank Rate). During the period, the Brazilian Real appreciated significantly against the US Dollar and other major currencies, on the expectation that the country would be among the first to emerge from the global recession, boosted by resiliant local consumer. The government interest rate was cut by a further 2.50% between March and July. Along with other local measures, such as tax breaks for durable goods and lower reserve requirements, this created a more benign environment for economic activity. Although the base rate was cut, bond yields of the longer end of the curve widened by 0.80% over the period, as the outlook for the economy became more positive. After increasing the duration of the Fund in March, the Manager managed duration tactically reducing it during the rest of the period. The credit quality of the Fund remained unchanged, currently holding around one-third of its assets in local sovereign bonds with the remainder invested in certificates of deposit issued by top tier local banks.