Fund Description

The fund was incepted in February 2001 and is managed by HSBC Asset Management (Americas). The fund seeks current income and long-term growth of capital consistent with reasonable risk. The fund seeks to achieve its investment objective by investing approximately 60% of its assets in stocks and other equity securities and approximately 40% in bonds and other debt securities rated at least Baa by Moody's or BBB by S&P or of comparable quality. While the allocation between equity and debt securities may vary, the fund will always invest at least 25% of its assets in debt securities. The fund ordinarily invests in equity securities of large companies having attractive valuations or the potential for future earnings growth. Fixed income securities in which the fund may invest include U.S. government and agency securities, corporate bonds, asset-backed securities (including mortgage-backed securities), obligations of savings and loans and U.S. and foreign banks, commercial paper and related repurchase agreements. The adviser selects fixed income securities based on various factors, including the credit quality of the issuer, the outlook for the economy and anticipated changes in interest rates and inflation. Dividends are distributed semi-annually. Capital gains are distributed annually.