AMENDMENT
TO
EXPENSE LIMITATION AGREEMENT
HSBC INVESTOR FUNDS
March 1, 2004
HSBC Asset Management (Americas) Inc.
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Dear Sirs:
Re: HSBC Investor Bond Fund
HSBC Investor U.S. Treasury Money Market Fund
HSBC Investor Opportunity Fund
HSBC Investor California Tax-Free Money Market Fund
HSBC Investor Overseas Equity Fund
HSBC Investor Money Market Fund (together, the "Funds")
This letter confirms amendments to Schedule A and Schedule B of the Expense
Limitation Agreement between the undersigned (the "Trust") and HSBC Asset
Management (Americas) Inc. (the "Adviser"). The Trust and the Adviser agree as
follows:
1. The Trust is a registered open-end investment management company
organized as a Massachusetts business trust and consists of separate investment
portfolios as have been or may be established by the Trustees of the Trust from
time to time.
2. The Trust and the Adviser have entered into an Investment Management
Agreement pursuant to which the Adviser provides investment management services
to each Fund for compensation based on the value of the average daily net assets
of each Fund.
3. The Trust and the Adviser have entered into an Expense Limitation
Agreement dated February 28, 2003 pursuant to which the Trust and the Adviser
have determined that it is appropriate and in the best interests of each Fund
and its shareholders to maintain the expenses of each Fund at a level below the
level to which each such Fund may normally be subject.
4. Terms used but not otherwise defined herein shall have the same meanings
assigned to them in the Expense Limitation Agreement.
5. The maximum Operating Expense Limit in any year with respect to each
Fund shall be the amount specified in Schedule A based on a percentage of the
average daily net assets of each Fund.
6. The Operating Expense Limit with respect to each Fund shall remain in
effect until the date specified for that Fund on Schedule B.
If the foregoing correctly sets forth the agreement between the Trust and
the Adviser, please so indicate by signing and returning to the Trust the
enclosed copy hereof.
Very truly yours,
HSBC INVESTOR FUNDS
By
----------------
Name:
Title:
ACCEPTED:
HSBC ASSET MANAGEMENT (AMERICAS) INC.
By
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Name:
Title:
Attachments
SCHEDULE A
OPERATING EXPENSE LIMITS
This Agreement relates to the following Funds of the Trust:
Maximum Operating
Expense Limit
(as a percentage of
Name of Fund average net assets)
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HSBC Investor Bond Fund Class A Shares: 1.10%
Class B Shares: 1.85%
Class C Shares: 1.85%
HSBC Investor U.S. Treasury Money Market Fund Class A Shares: 0.80%
Class B Shares: 1.40%
Class C Shares: 1.40%
Class D Shares: 0.65%
Class Y Shares: 0.40%
HSBC Investor Opportunity Fund Class A Shares: 1.65%
Class B Shares: 2.40%
Class C Shares: 2.40%
HSBC Investor California Tax-Free Money Market Fund Class A Shares: 0.80%
Class B Shares: 1.40%
Class C Shares: 1.40%
Class D Shares: 0.65%
Class Y Shares: 0.40%
HSBC Investor Overseas Equity Fund Class A Shares: 1.85%
Class B Shares: 2.60%
Class C Shares: 2.60%
HSBC Investor Money Market Fund Class I Shares: 0.20%
SCHEDULE B
DURATION OF OPERATING EXPENSE LIMITS
The duration of each Operating Expense Limit shall be as follows:
Date on Which Operating
Name of Fund Expense Limit Terminates
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HSBC Investor Bond Fund March 1, 2005
HSBC Investor U.S. Treasury Money Market Fund March 1, 2005
HSBC Investor Opportunity Fund March 1, 2005
HSBC Investor California Tax-Free Money Market Fund March 1, 2005
HSBC Investor Overseas Equity Fund March 1, 2005
HSBC Investor Money Market Fund March 1, 2005
