UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-4084

Hawaiian Tax-Free Trust

(Exact name of Registrant as specified in charter)

120 West 45th Street, Suite 3600

New York, New York 10036

(Address of principal executive offices)  (Zip code)

Joseph P. DiMaggio

120 West 45th Street, Suite 3600

New York, New York 10036

(Name and address of agent for service)

Registrant's telephone number, including area code: 

(212) 697-6666

Date of fiscal year end:   3/31/15

Date of reporting period: 9/30/15

FORM N-CSRS

ITEM 1. REPORTS TO STOCKHOLDERS

 

Semi-Annual

Report

September 30, 2015

 

Hawaiian Tax-Free Trust   Serving Hawaii investors since 1985

November, 2015

Dear Fellow Shareholder:

     As you are no doubt aware, the Federal Funds rate (a key short term interest rate between commercial banks, which influences borrowing costs throughout the economy) has been held close to zero since 2008.

     With no change in this rate in seven years, the relationship between interest rates and the share value of fixed-income securities, such as those in which Hawaiian Tax-Free Trust (the”Trust”) and the other bond funds in the Aquila Group of Funds invest, has attracted limited attention.

     Now that it seems probable that interest rates may slowly start to climb, we thought it was a good time to revisit this topic. Management of the Aquila Group of Funds well recognizes that it is much easier to accept variations with your investment when you understand the forces influencing them.

     Simply put, interest rates and the share prices of the bond funds in the Aquila Group of Funds are inversely related. When interest rates increase, the share value of your Trust will generally decrease. And, conversely, when interest rates decrease, the share value will generally increase.

Why is this the case?

     When a bond is issued, it has a fixed face value and coupon rate (that is usually close to prevailing marketplace interest rates). For example, a $1,000 bond with a 5% coupon rate will pay interest of $50 per year and, at maturity, will repay the bondholder the $1,000 face value. The promise to pay $1,000 at maturity and the $50 per year interest payment doesn’t change. What does change is the bond’s market price.

     If interest rates on similar bonds rise to 6%, our example above may no longer be attractive.

     For the 5% bond to be attractive, its market price must fall below its $1,000 face value until the $50 per year represents a yield closer to 6%. Conversely, if prevailing interest rates decrease to 4%, people may be willing to pay more than the bond’s $1,000 face value in order to receive the $50 per year interest payments.

     Simply put, bond prices fluctuate so that their yield reflects prevailing interest rates in the marketplace.

NOT A PART OF THE SEMI-ANNUAL REPORT

     While we cannot control the direction in which interest rates will move, or the resulting effect such changes will have on your Trust’s share price, we do take steps which are designed to minimize (to the extent possible) the volatility of such movement.

     We firmly believe that credit quality has an impact on stability. Your Trust and each of the other municipal bond funds in the Aquila Group of Funds intentionally limits, by prospectus, its investments (at the time of purchase) to Investment Grade bonds - that is to say, bonds that are rated in one of the four highest credit ratings assigned by a nationally recognized statistical rating organization, or if unrated, determined to be of comparable credit quality by the Adviser. Investment Grade credit ratings are one of several factors the Adviser considers in identifying those municipal issues which are most likely to pay interest when due and to return principal at maturity.

     Another technique your Adviser uses in the construction of the overall portfolio of your Trust in an effort to achieve a stable share price is the laddering of bond maturities. Generally, bonds with short-term maturities tend to have relatively less price fluctuation, and provide a lower yield. Conversely, bonds with long-term maturities may provide a higher yield, and have higher price volatility. This higher price volatility reflects the risks associated with the unpredictability of future events and the potential interest rate changes over the extended life of the municipal bond.

     Through utilizing a blend of maturities – both short-term and long-term – your Trust attempts to provide as high a level of current income as is consistent with the preservation of capital. We believe these portfolio management construction techniques are reasonably designed to manage, to the extent possible, share price variations – gaining both a degree of stability from the shorter-term maturities and higher yields from the longer-term maturities.

     With more than 30 years of experience utilizing these techniques, with your Trust, we believe that your Adviser has developed a process that helps to mitigate some of the volatility that will inevitably occur in the bond markets with changes in interest rate.

Sincerely,

Diana P. Herrmann, Vice Chair and President

NOT A PART OF THE SEMI-ANNUAL REPORT

Mutual fund investing involves risk and loss of principal is possible.

The market prices of the Trust’s securities may rise or decline in value due to general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates, lack of liquidity in the bond markets or adverse investor sentiment. When market prices fall, the value of your investment may go down.

The value of your investment may go down when interest rates rise. A rise in interest rates tends to have a greater impact on the prices of longer term securities. Conversely, when interest rates fall, the value of your investment may rise. Interest rates in the U.S. recently have been historically low and are expected to rise at some point in time.

Investments in the Trust are subject to possible loss due to the financial failure of the issuers of underlying securities and their inability to meet their debt obligations.

The value of municipal securities can be adversely affected by changes in the financial condition of one or more individual municipal issuers or insurers of municipal issuers, regulatory developments, legislative actions, and by uncertainties and public perceptions concerning these and other factors. The Trust may be affected significantly by adverse economic, political or other events affecting state and other municipal issuers in which it invests, and may be more volatile than a more geographically diverse fund.

If interest rates fall, an issuer may exercise its right to prepay its securities, and the Trust could be forced to reinvest prepayment proceeds at a time when yields on securities available in the market are lower than the yield on the prepaid security.

A portion of income may be subject to local, state, Federal and/or alternative minimum tax. Capital gains, if any, are subject to capital gains tax.

These risks may result in share price volatility.

Past performance is no guarantee of future results, and there is no guarantee that any market forecasts discussed will be realized.

Any information in this Semi-Annual Report regarding market or economic trends or the factors influencing the Trust’s historical or future performance are statements of opinion as of the date of this report. These statements should not be relied upon for any other purposes.

NOT A PART OF THE SEMI-ANNUAL REPORT

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (55.8)%	and Fitch	Value
		City and County of Honolulu, Hawaii,
		Refunding, Series B
$	5,000,000	5.000%, 12/01/30	Aa1/NR/AA+	$	5,739,150
	3,000,000	5.000%, 12/01/33	Aa1/NR/AA+		3,410,340
	5,000,000	4.750%, 12/01/35	Aa1/NR/AA+		5,512,850
		City and County of Honolulu, Hawaii,
		Series A
	2,000,000	5.000%, 10/01/20	Aa1/NR/AA+		2,341,560
	2,000,000	5.000%, 10/01/21	Aa1/NR/AA+		2,384,340
	2,000,000	5.000%, 10/01/22	Aa1/NR/AA+		2,415,600
	2,000,000	5.000%, 10/01/23	Aa1/NR/AA+		2,439,320
	5,000,000	5.000%, 10/01/24	Aa1/NR/AA+		6,177,500
	5,000,000	5.000%, 10/01/25	Aa1/NR/AA+		6,239,150
	5,000,000	5.000%, 10/01/26	Aa1/NR/AA+		6,153,500
	2,000,000	5.000%, 11/01/26	Aa1/NR/AA+		2,379,300
	5,000,000	5.000%, 11/01/27	Aa1/NR/AA+		5,915,800
	5,000,000	5.000%, 11/01/31	Aa1/NR/AA+		5,788,050
	5,000,000	5.000%, 11/01/32	Aa1/NR/AA+		5,767,050
	5,000,000	4.000%, 11/01/35	Aa1/NR/AA+		5,187,100
		City and County of Honolulu, Hawaii,
		Series A, Prerefunded to 4/01/19 @100
	3,930,000	5.000%, 04/01/20	Aa1/NR/AA+		4,480,750
	460,000	5.000%, 04/01/25	Aa1/NR/AA+		524,464
	1,875,000	5.250%, 04/01/32	Aa1/NR/AA+		2,153,831
		City and County of Honolulu, Hawaii,
		Series A, Prerefunded to 7/1/17 @100
	230,000	5.000%, 07/01/22 AGM Insured	Aa1/AA/AA+		247,728
	3,000,000	5.000%, 07/01/29 AGM Insured	Aa1/AA/AA+		3,231,240
	2,470,000	5.000%, 07/01/30 AGM Insured	Aa1/AA/AA+		2,660,388
		City and County of Honolulu, Hawaii,
		Series A, Refunding
	2,000,000	5.250%, 04/01/17	Aa1/NR/AA+		2,141,980
	5,000,000	5.000%, 04/01/19	Aa1/NR/AA+		5,678,550
		City and County of Honolulu, Hawaii,
		Series B
	4,430,000	5.000%, 11/01/21	Aa1/NR/AA+		5,289,730
	5,000,000	5.000%, 11/01/22	Aa1/NR/AA+		6,043,200
	5,000,000	4.000%, 11/01/27	Aa1/NR/AA+		5,456,200
	5,000,000	4.500%, 11/01/28	Aa1/NR/AA+		5,623,750
	5,000,000	4.500%, 11/01/29	Aa1/NR/AA+		5,552,000

1 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (continued)	and Fitch	Value
		City and County of Honolulu, Hawaii,
		Series C
$	2,860,000	5.000%, 10/01/23	Aa1/NR/AA+	$	3,488,228
	2,615,000	5.000%, 10/01/26	Aa1/NR/AA+		3,218,280
	2,000,000	5.000%, 10/01/27	Aa1/NR/AA+		2,443,500
		City and County of Honolulu, Hawaii,
		Series D
	3,500,000	5.250%, 09/01/26	Aa1/NR/AA+		4,049,395
	3,820,000	5.250%, 09/01/27	Aa1/NR/AA+		4,408,509
	7,390,000	5.250%, 09/01/28	Aa1/NR/AA+		8,507,146
	8,585,000	5.250%, 09/01/30	Aa1/NR/AA+		9,833,345
	9,105,000	5.250%, 09/01/31	Aa1/NR/AA+		10,410,293
		City and County of Honolulu, Hawaii,
		Series F
	5,000,000	5.000%, 09/01/19	Aa1/NR/AA+		5,741,350
	5,000,000	5.000%, 09/01/20	Aa1/NR/AA+		5,720,700
		City and County of Honolulu, Hawaii,
		Water Utility Refunding and
		Improvement, ETM, Collateral: U.S.
		Government Securities
	1,050,000	6.000%, 12/01/15 FGIC/ TCRS Insured	Aa1/NR/NR		1,059,618
		County of Hawaii
	1,890,000	5.500%, 07/15/22	Aa2/AA-/AA-		2,120,183
	2,245,000	5.500%, 07/15/23	Aa2/AA-/AA-		2,519,070
	1,990,000	5.750%, 07/15/24	Aa2/AA-/AA-		2,245,934
	2,370,000	5.750%, 07/15/25	Aa2/AA-/AA-		2,674,118
	3,585,000	6.000%, 07/15/27	Aa2/AA-/AA-		4,064,207
		County of Hawaii, Series A
	1,500,000	5.000%, 09/01/30	Aa2/AA-/AA-		1,726,185
		County of Hawaii, Series A
	2,850,000	5.000%, 07/15/20 AGC Insured	Aa2/AA/NR		2,951,688
		County of Hawaii, Series A
	2,000,000	5.000%, 07/15/17 AMBAC Insured	Aa2/AA-/AA-		2,157,600
		County of Hawaii, Series B
	750,000	5.000%, 07/15/17 AMBAC Insured	Aa2/AA-/AA-		809,100
		County of Hawaii, Series B
	1,185,000	4.000%, 09/01/19	Aa2/AA-/AA-		1,314,094
		County of Hawaii, 2010-Series A
	1,650,000	5.000%, 03/01/19	Aa2/AA-/AA-		1,869,235
	2,870,000	5.000%, 03/01/29	Aa2/AA-/AA-		3,250,734

2 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (continued)	and Fitch	Value
		County of Hawaii, 2013-Series A
$	500,000	5.000%, 09/01/23	Aa2/AA-/AA-	$	603,455
	1,000,000	5.000%, 09/01/24	Aa2/AA-/AA-		1,201,150
	1,000,000	5.000%, 09/01/25	Aa2/AA-/AA-		1,194,720
	1,575,000	5.000%, 09/01/26	Aa2/AA-/AA-		1,869,383
	1,000,000	5.000%, 09/01/27	Aa2/AA-/AA-		1,178,460
	1,000,000	5.000%, 09/01/28	Aa2/AA-/AA-		1,168,680
		County of Kauai, Hawaii, 2005-Series A,
		Unrefunded
	715,000	5.000%, 08/01/16 NPFG/ FGIC Insured	Aa2/AA/NR		717,510
	930,000	5.000%, 08/01/17 NPFG/ FGIC Insured	Aa2/AA/NR		933,320
	760,000	5.000%, 08/01/18 NPFG/ FGIC Insured	Aa2/AA/NR		762,622
	510,000	5.000%, 08/01/19 NPFG/ FGIC Insured	Aa2/AA/NR		511,759
		County of Kauai, Hawaii, Refunding,
		Series A
	1,000,000	3.250%, 08/01/21	Aa2/AA/AA-		1,090,780
	1,445,000	4.000%, 08/01/22	Aa2/AA/AA-		1,617,403
	1,240,000	4.000%, 08/01/24	Aa2/AA/AA-		1,378,992
	1,000,000	3.625%, 08/01/25	Aa2/AA/AA-		1,070,670
	970,000	3.000%, 08/01/25	Aa2/AA/AA-		1,009,508
	600,000	3.000%, 08/01/26	Aa2/AA/AA-		619,842
	2,280,000	4.500%, 08/01/28	Aa2/AA/AA-		2,547,626
	345,000	5.000%, 08/01/29	Aa2/AA/AA-		400,655
		County of Kauai, Hawaii, Series A
	855,000	2.250%, 08/01/17	Aa2/AA/AA-		881,154
		County of Maui, Hawaii
	3,000,000	4.000%, 06/01/16	Aa1/AA+/AA+		3,074,430
	1,035,000	3.000%, 06/01/27	Aa1/AA+/AA+		1,061,372
	2,000,000	3.000%, 06/01/28	Aa1/AA+/AA+		2,030,100
		County of Maui, Hawaii
	1,250,000	3.800%, 03/01/16 NPFG Insured	Aa1/AA+/AA+		1,253,388
		County of Maui, Hawaii, Refunding,
		Series B
	3,950,000	4.000%, 06/01/19	Aa1/AA+/AA+		4,351,834
	4,620,000	4.000%, 06/01/20	Aa1/AA+/AA+		5,168,348
	2,385,000	4.000%, 06/01/21	Aa1/AA+/AA+		2,648,709
		County of Maui, Hawaii, Series 2012
	270,000	5.000%, 06/01/21	Aa1/AA+/AA+		320,568
		County of Maui, Hawaii, Series 2014
	4,065,000	5.000%, 06/01/20	Aa1/AA+/AA+		4,730,237

3 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (continued)	and Fitch	Value
		County of Maui, Hawaii, Series 2014
		Refunding
$	1,000,000	5.000%, 06/01/18	Aa1/AA+/AA+	$	1,107,890
	1,500,000	5.000%, 06/01/19	Aa1/AA+/AA+		1,706,130
	1,900,000	5.000%, 06/01/22	Aa1/AA+/AA+		2,286,308
	1,000,000	5.000%, 06/01/23	Aa1/AA+/AA+		1,216,690
	4,015,000	5.000%, 06/01/24	Aa1/AA+/AA+		4,946,319
		County of Maui, Hawaii, Series A
		Prerefunded to 07/01/16 @100
	1,165,000	4.375%, 07/01/19 NPFG Insured	Aa1/AA+/AA+		1,200,451
	750,000	5.000%, 07/01/20 NPFG Insured	Aa1/AA+/AA+		776,280
		County of Maui, Hawaii, Unrefunded
		Balance
	820,000	5.000%, 03/01/18 NPFG Insured	Aa1/NR/NR		822,575
	590,000	5.000%, 03/01/19 NPFG Insured	Aa1/NR/NR		591,829
		State of Hawaii
	6,285,000	5.000%, 05/01/19	Aa2/AA/AA		6,952,278
		State of Hawaii, Prerefunded
		to 05/01/18 @100
	715,000	5.000%, 05/01/19	NR/NR/NR*		792,656
		State of Hawaii, Series CM
	3,000,000	6.500%, 12/01/15 NPFG/ FGIC Insured	Aa2/AA/NR		3,030,210
		State of Hawaii, Series DI, Prerefunded
		to 03/01/16 @100
	5,550,000	5.000%, 03/01/20 AGM Insured	Aa2/AA/NR		5,659,557
	2,750,000	5.000%, 03/01/21 AGM Insured	Aa2/AA/NR		2,804,285
	5,000,000	5.000%, 03/01/22 AGM Insured	Aa2/AA/NR		5,098,700
	1,135,000	5.000%, 03/01/25 AGM Insured	Aa2/AA/NR		1,157,405
		State of Hawaii, Series DJ, Prerefunded
		to 04/1/17 @100
	5,000,000	5.000%, 04/01/23 AGM - CR AMBAC
		Insured	Aa2/AA/NR		5,335,650
	1,605,000	5.000%, 04/01/26 AMBAC Insured	Aa2/AA/AA		1,709,277
		State of Hawaii, Series DJ, Prerefunded
		to 04/01/17 @100
	3,040,000	5.000%, 04/01/23 AMBAC Insured	Aa2/AA/NR		3,246,446
	2,465,000	5.000%, 04/01/23 AMBAC Insured	Aa2/AA/NR		2,632,398
	6,130,000	5.000%, 04/01/25 AMBAC Insured	Aa2/NR/NR		6,546,288
		State of Hawaii, Series DK, ETM 5/01/18
	470,000	5.000%, 05/01/18	NR/NR/NR*		521,047

4 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (continued)	and Fitch	Value
		State of Hawaii, Series DK, Prerefunded
		to 05/01/18 @100
$	930,000	5.000%, 05/01/20	NR/NR/NR*	$	1,031,007
		State of Hawaii, Series DK, Unrefunded
		Balance
	70,000	5.000%, 05/01/20	Aa2/AA/AA		77,356
		State of Hawaii, Series DN
	1,000,000	5.250%, 08/01/25	Aa2/AA/AA		1,121,240
		State of Hawaii, Series DQ
	500,000	5.000%, 06/01/17	Aa2/AA/AA		536,875
	10,000,000	5.000%, 06/01/23	Aa2/AA/AA		11,389,600
	1,000,000	5.000%, 06/01/25	Aa2/AA/AA		1,137,810
		State of Hawaii, Series DR
	1,075,000	5.000%, 06/01/17	Aa2/AA/AA		1,154,281
		State of Hawaii, Series DY, Refunding
	725,000	5.000%, 02/01/16	Aa2/AA/AA		736,390
	3,765,000	5.000%, 02/01/20	Aa2/AA/AA		4,364,087
		State of Hawaii, Series DZ
	1,500,000	5.000%, 12/01/19	Aa2/AA/AA		1,732,995
	8,390,000	5.000%, 12/01/26	Aa2/AA/AA		9,899,361
	5,000,000	5.000%, 12/01/28	Aa2/AA/AA		5,861,400
	10,575,000	5.000%, 12/01/29	Aa2/AA/AA		12,356,887
	6,500,000	5.000%, 12/01/30	Aa2/AA/AA		7,574,775
		State of Hawaii, Series EA
	1,600,000	5.000%, 12/01/16	Aa2/AA/AA		1,685,712
		State of Hawaii, Series EE
	1,195,000	5.000%, 11/01/21	Aa2/AA/AA		1,429,973
	5,000,000	5.000%, 11/01/22	Aa2/AA/AA		6,054,250
	1,000,000	5.000%, 11/01/24	Aa2/AA/AA		1,200,560
	5,300,000	5.000%, 11/01/25	Aa2/AA/AA		6,324,384
	1,000,000	5.000%, 11/01/27	Aa2/AA/AA		1,182,440
		State of Hawaii, Series EH
	1,500,000	5.000%, 08/01/18	Aa2/AA/AA		1,672,320
	1,500,000	5.000%, 08/01/20	Aa2/AA/AA		1,754,745
		State of Hawaii, Series EK, Refunding
	1,500,000	5.000%, 08/01/16	Aa2/AA/AA		1,557,840
		State of Hawaii, Series EL, Refunding
	2,000,000	5.000%, 08/01/23	Aa2/AA/AA		2,437,260
		State of Hawaii, Series EO, Refunding
	2,000,000	5.000%, 08/01/27	Aa2/AA/AA		2,407,640

5 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		General Obligation Bonds (continued)	and Fitch	Value
		State of Hawaii, Series EO, Refunding
		(continued)
$	2,000,000	5.000%, 08/01/28	Aa2/AA/AA	$	2,390,100
	1,000,000	5.000%, 08/01/29	Aa2/AA/AA		1,186,350
	1,000,000	5.000%, 08/01/30	Aa2/AA/AA		1,178,590
		State of Hawaii, Series EP, Refunding
	2,000,000	5.000%, 08/01/22	Aa2/AA/AA		2,411,940
	5,000,000	5.000%, 08/01/23	Aa2/AA/AA		6,093,150
	5,000,000	5.000%, 08/01/24	Aa2/AA/AA		6,166,550
	5,000,000	5.000%, 08/01/25	Aa2/AA/AA		6,121,400
	5,245,000	5.000%, 08/01/26	Aa2/AA/AA		6,365,122
		Total General Obligation Bonds			427,648,667
		Revenue Bonds (41.8%)
		Airport (4.9%)
		State of Hawaii Airport System
		Revenue Refunding, AMT
	13,000,000	5.000%, 07/01/21	A2/A/A		15,043,080
	5,000,000	5.000%, 07/01/22	A2/A/A		5,756,600
	1,500,000	5.000%, 07/01/23	A2/A/A		1,711,320
	3,000,000	5.000%, 07/01/24	A2/A/A		3,403,680
		State of Hawaii Airport System
		Revenue Refunding, Series A
	1,150,000	5.250%, 07/01/21	A2/A/A		1,347,685
	1,000,000	5.250%, 07/01/23	A2/A/A		1,173,400
	1,000,000	5.250%, 07/01/27	A2/A/A		1,164,420
		State of Hawaii Airport System
		Revenue, Series A
	2,000,000	4.000%, 07/01/20	A2/A/A		2,236,620
	3,000,000	5.000%, 07/01/22	A2/A/A		3,481,500
	2,000,000	5.250%, 07/01/28	A2/A/A		2,323,880
		Total Airport			37,642,185
		Education (4.8%)
		University of Hawaii
	5,000,000	5.000%, 07/15/21 NPFG Insured	Aa2/AA-/AA		5,184,400
		University of Hawaii, Prerefunded
		to 10/1/16 @100
	2,325,000	5.000%, 10/01/23 AGC-ICC NPFG
		Insured	Aa2/AA/NR		2,433,996

6 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Education (continued)
		University of Hawaii, Revenue
		Refunding, Series A
$	775,000	5.000%, 07/15/22 NPFG Insured	Aa2/AA-/AA	$	803,582
	1,000,000	4.500%, 07/15/23 NPFG Insured	Aa2/AA-/AA		1,033,000
	4,840,000	4.500%, 07/15/25 NPFG Insured	Aa2/AA-/AA		4,999,720
		University of Hawaii, Series A
	760,000	5.000%, 10/01/15	Aa2/A+/AA		760,096
	1,510,000	5.000%, 10/01/17	Aa2/A+/AA		1,626,164
		University of Hawaii, Series A
	1,000,000	4.000%, 10/01/18	Aa2/A+/AA		1,086,580
	2,725,000	5.500%, 10/01/22	Aa2/A+/AA		3,182,364
	5,225,000	5.250%, 10/01/34	Aa2/A+/AA		5,930,950
		University of Hawaii, Series A-2
	500,000	4.000%, 10/01/15	Aa2/A+/AA		500,050
	1,125,000	4.000%, 10/01/16	Aa2/A+/AA		1,166,299
	2,175,000	4.000%, 10/01/17	Aa2/A+/AA		2,311,612
	1,000,000	4.000%, 10/01/19	Aa2/A+/AA		1,105,860
		University of Hawaii, Series B
	750,000	4.000%, 10/01/23	Aa2/A+/AA		855,488
	1,250,000	4.000%, 10/01/24	Aa2/A+/AA		1,428,213
	1,050,000	5.000%, 10/01/25	Aa2/A+/AA		1,295,396
	1,000,000	5.000%, 10/01/26	Aa2/A+/AA		1,218,780
		Total Education			36,922,550
		Housing (1.0%)
		Hawaii State Department of Hawaiian
		Home Lands
	715,000	5.000%, 04/01/17	A1/NR/A		757,492
	1,000,000	5.500%, 04/01/20	A1/NR/A		1,142,440
		State of Hawaii Housing Finance and
		Development Corp., Iwilei
		Apartments, Series A
	2,000,000	3.750%, 01/01/31 FHLMC Insured	NR/AA+/NR		2,029,220
		State of Hawaii Housing Finance and
		Development Corp., Kalani Gardens,
		Series A
	1,900,000	0.700%, 04/01/17	NR/AAA/NR		1,900,836

7 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Housing (continued)
		State of Hawaii Housing Finance and
		Development Corp. Single Family
		Mortgage, Series B
$	1,630,000	4.500%, 01/01/26 FNMA/GNMA
		Collateralized	Aaa/AA+/AAA	$	1,683,497
		Total Housing			7,513,485
		Medical (4.2%)
		Hawaii State Department of Budget
		and Finance, Special Purpose Revenue
		(Hawaii Pacific Health) Series A
	690,000	5.000%, 07/01/19	A2/A/A		783,405
	695,000	5.000%, 07/01/20	A2/A/A		804,817
	750,000	5.000%, 07/01/21	A2/A/A		884,767
	1,000,000	5.000%, 07/01/24	A2/A/A		1,188,040
	685,000	5.000%, 07/01/25	A2/A/A		807,430
	1,355,000	5.000%, 07/01/27	A2/A/A		1,560,052
		Hawaii State Department of Budget and
		Finance, Special Purpose Revenue
		(Hawaii Pacific Health) Series B
	420,000	5.000%, 07/01/20	A2/A/A		486,364
		Hawaii State Department of Budget and
		Finance, Special Purpose Revenue
		(Queens Health System) Series A
	2,015,000	5.000%, 07/01/20	A1/AA-/NR		2,327,406
	1,250,000	5.000%, 07/01/21	A1/AA-/NR		1,467,875
	1,500,000	5.000%, 07/01/22	A1/AA-/NR		1,773,000
	865,000	5.000%, 07/01/23	A1/AA-/NR		1,031,028
	2,760,000	5.000%, 07/01/24	A1/AA-/NR		3,317,741
	1,310,000	5.000%, 07/01/25	A1/AA-/NR		1,585,192
	1,715,000	5.000%, 07/01/26	A1/AA-/NR		2,067,055
	2,000,000	5.000%, 07/01/27	A1/AA-/NR		2,389,640
	850,000	5.000%, 07/01/28	A1/AA-/NR		1,006,808
	4,500,000	5.000%, 07/01/35	A1/AA-/NR		5,096,430
		Hawaii State Department of Budget and
		Finance, Special Purpose Revenue
		(Senior Living Revenue, Kahala Nui)
	3,575,000	5.125%, 11/15/32	NR/NR/BBB		3,846,843
		Total Medical			32,423,893

8 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Transportation (9.1%)
		State of Hawaii Harbor System, Series A
$	16,500,000	5.750%, 07/01/35	A2/A+/A+	$	19,145,940
	4,025,000	5.625%, 07/01/40	A2/A+/A+		4,616,635
		State of Hawaii Harbor System,
		Series A 2006, AMT
	4,910,000	5.250%, 01/01/25 AGM Insured	A2/AA/A+		4,963,175
	1,450,000	5.250%, 01/01/27 AGM Insured	A2/AA/A+		1,465,486
		State of Hawaii Harbor System,
		Series A-AMT
	2,215,000	5.250%, 07/01/17 AGM Insured	A2/AA/A+		2,382,033
		State of Hawaii Highway Revenue
	1,000,000	5.250%, 01/01/17	Aa2/AA+/AA		1,059,870
	1,000,000	5.250%, 01/01/18	Aa2/AA+/AA		1,099,010
	5,135,000	5.500%, 07/01/18	Aa2/AA+/AA		5,772,562
	5,220,000	6.000%, 01/01/23	Aa2/AA+/AA		6,008,116
		State of Hawaii Highway Revenue,
		Series A
	750,000	5.000%, 01/01/21	Aa2/AA+/AA		883,005
	500,000	5.000%, 01/01/24	Aa2/AA+/AA		612,125
	1,500,000	5.000%, 01/01/25	Aa2/AA+/AA		1,834,875
		State of Hawaii Highway Revenue,
		Series A
	6,000,000	5.000%, 01/01/28	Aa2/AA+/AA		6,921,240
	4,100,000	5.000%, 01/01/29	Aa2/AA+/AA		4,708,973
	3,980,000	5.000%, 01/01/30	Aa2/AA+/AA		4,519,330
	3,040,000	5.000%, 01/01/32	Aa2/AA+/AA		3,436,994
		Total Transportation			69,429,369
		Utility (0.6%)
		State of Hawaii, Department of Business,
		Economic Development and Tourism
		Green Energy Market Securitization
		Bonds, Series A (Federally Taxable)
	4,550,000	1.467%, 07/01/22	Aaa/AAA/AAA		4,577,937
		Water & Sewer (17.2%)
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		Series A
	1,000,000	5.000%, 07/01/23	Aa2/NR/AA+		1,214,870
	1,000,000	5.000%, 07/01/24	Aa2/NR/AA+		1,232,200

9 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Water & Sewer (continued)
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		Series A (continued)
$	1,700,000	5.000%, 07/01/26	Aa2/NR/AA+	$	2,056,949
	800,000	5.000%, 07/01/27	Aa2/NR/AA+		960,272
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System
		Prerefunded 7/01/16 @100
	2,005,000	4.500%, 07/01/22 NPFG Insured	Aa2/AA-/NR		2,067,857
	5,000,000	5.000%, 07/01/26 NPFG Insured	Aa2/AA-/NR		5,175,200
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		Refunding Series A
	4,795,000	4.500%, 07/01/29	Aa2/NR/AA+		5,286,056
	4,955,000	4.500%, 07/01/30	Aa2/NR/AA+		5,427,410
	5,020,000	5.000%, 07/01/31	Aa2/NR/AA+		5,706,937
	3,040,000	5.000%, 07/01/32	Aa2/NR/AA+		3,438,027
	3,495,000	5.000%, 07/01/33	Aa2/NR/AA+		3,936,628
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		Refunding Series A, Prerefunded
		to 7/01/16 @100
	640,000	5.000%, 07/01/21 NPFG Insured	Aa2/AA-/NR		662,426
	4,525,000	4.500%, 07/01/24 NPFG Insured	Aa2/AA-/NR		4,666,859
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		AMT, Refunding Series A
		Prerefunded 7/01/16 @100
	3,205,000	5.250%, 07/01/18 NPFG Insured	Aa2/AA-/NR		3,318,329
		City and County of Honolulu, Hawaii,
		Board of Water Supply Water System,
		Refunding Series A Prerefunded
		7/01/16 @100
	3,010,000	4.750%, 07/01/31 NPFG Insured	Aa2/AA-/NR		3,109,902
		City and County of Honolulu, Hawaii,
		Wastewater System
	5,360,000	4.500%, 07/01/28	Aa2/NR/AA		5,993,445
	4,480,000	4.500%, 07/01/30	Aa2/NR/AA		4,946,010
	1,000,000	4.000%, 07/01/31	Aa2/NR/AA		1,051,250
	2,000,000	5.250%, 07/01/36	Aa2/NR/AA		2,311,940

10 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Water & Sewer (continued)
		City and County of Honolulu, Hawaii,
		Wastewater System, Prerefunded to
		7/1/16@100
$	3,000,000	5.000%, 07/01/32 NPFG Insured	Aa3/NR/AA-	$	3,106,260
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2009 A,
		Prerefunded to 07/01/19 @100
	555,000	5.000%, 07/01/20	NR/NR/NR*		637,146
	445,000	5.000%, 07/01/20	Aa2/NR/AA		508,395
	1,925,000	5.000%, 07/01/21	NR/NR/NR*		2,209,919
	1,565,000	5.000%, 07/01/22	NR/NR/NR*		1,796,636
	1,845,000	5.000%, 07/01/23	NR/NR/NR*		2,118,078
	1,395,000	5.000%, 07/01/24	NR/NR/NR*		1,601,474
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2009 A,
		Unrefunded Balance
	530,000	5.000%, 07/01/21	Aa2/NR/AA		605,292
	1,235,000	5.000%, 07/01/22	Aa2/NR/AA		1,409,962
	1,455,000	5.000%, 07/01/23	Aa2/NR/AA		1,660,548
	1,105,000	5.000%, 07/01/24	Aa2/NR/AA		1,260,672
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2012 A
	1,000,000	5.000%, 07/01/30	Aa2/NR/AA		1,154,790
	1,000,000	5.000%, 07/01/31	Aa2/NR/AA		1,149,440
	1,500,000	5.000%, 07/01/32	Aa2/NR/AA		1,714,185
	2,500,000	5.000%, 07/01/42	Aa2/NR/AA		2,815,900
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2012 B
	2,500,000	5.000%, 07/01/22	Aa2/NR/AA		2,996,725
	2,000,000	4.000%, 07/01/28	Aa2/NR/AA		2,159,160
	3,000,000	4.000%, 07/01/30	Aa2/NR/AA		3,210,060
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2015 B
	1,000,000	5.000%, 07/01/22	Aa2/NR/AA		1,198,690
	2,000,000	5.000%, 07/01/23	Aa2/NR/AA		2,421,760

11 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

			Rating
Principal			Moody’s, S&P
Amount		Revenue Bonds (continued)	and Fitch	Value
		Water & Sewer (continued)
		City and County of Honolulu, Hawaii,
		Wastewater System (First Bond
		Resolution) Senior Series 2015 B
		(continued)
$	2,000,000	5.000%, 07/01/24	Aa2/NR/AA	$	2,451,840
	2,000,000	5.000%, 07/01/25	Aa2/NR/AA		2,478,540
	2,000,000	5.000%, 07/01/30	Aa2/NR/AA		2,376,460
	2,000,000	5.000%, 07/01/31	Aa2/NR/AA		2,361,480
		City and County of Honolulu, Hawaii,
		Wastewater System (Second Bond
		Resolution) Junior Series 2009 A
	1,080,000	5.000%, 07/01/22	Aa3/NR/AA-		1,230,023
		City and County of Honolulu, Hawaii,
		Wastewater System (Second Bond
		Resolution) Junior Series 2010 A
	7,400,000	4.500%, 07/01/27	Aa3/NR/AA-		8,175,816
		City and County of Honolulu, Hawaii,
		Wastewater System (Second Bond
		Resolution) Junior Series 2015 A
	850,000	5.000%, 07/01/21	Aa3/NR/AA-		1,006,306
	2,000,000	5.000%, 07/01/22	Aa3/NR/AA-		2,383,400
	500,000	5.000%, 07/01/24	Aa3/NR/AA-		610,735
	4,000,000	5.000%, 07/01/25	Aa3/NR/AA-		4,937,400
		City and County of Honolulu, Hawaii,
		Wastewater System (Second Bond
		Resolution) Junior Series B-1
		Remarket 09/15/06, Prerefunded to
		07/01/16 @100
	1,340,000	5.000%, 07/01/18 NPFG Insured	Aa3/NR/AA-		1,387,463
	1,935,000	5.000%, 07/01/19 NPFG Insured	Aa3/NR/AA-		2,003,538
	2,035,000	5.000%, 07/01/20 NPFG Insured	Aa3/NR/AA-		2,107,080
		Total Water & Sewer			131,807,740
		Total Revenue Bonds			320,317,159
		U.S. Territory of Guam (0.8%)
		Guam Government, Series A,
		Prerefunded to 11/15/19 @100
	5,000,000	6.750%, 11/15/29	NR/BB-/NR		6,136,950
		Total Investments (cost $719,841,359 -
		note 4)	98.4%		754,102,776
		Other assets less liabilities	1.6		12,232,328
		Net Assets	100.0%	$	766,335,104

12 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

SCHEDULE OF INVESTMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

	Percent of
Portfolio Distribution by Quality Rating	Portfolio†
Aaa of Moody’s or AAA of S&P		1.1	%
Pre-Refunded bonds††/ETM bonds		12.7
Aa of Moody’s or AA of S&P/Fitch		72.4
A of Moody’s		13.3
BBB of Fitch		0.5
		100.0	%

PORTFOLIO ABBREVIATIONS:
AGC – Assured Guaranty Insurance	FNMA – Federal National Mortgage Association
AGM – Assured Guaranty Municipal Corp.	GNMA – Government National Mortgage
AMBAC – American Municipal Bond	Association
Assurance Corporation	ICC – Insured Custody Certificate
AMT – Alternative Minimum Tax	NPFG – National Public Finance Guarantee
CR – Custodial Receipts	NR – Not Rated
ETM – Escrowed to Maturity	TCRS – Transferable Custodial Receipts
FGIC – Financial Guaranty Insurance Co.
FHLMC – Federal Home Loan Mortgage
Corporation

*	Any security not rated (“NR”) by any of the Nationally Recognized Statistical Rating Organizations (“NRSRO”) has been determined by the Investment Adviser to have sufficient quality to be ranked in the top four credit ratings if a credit rating were to be assigned by a NRSRO.
†	Calculated using the Moody’s rating unless otherwise noted.
††	Pre-refunded bonds are bonds for which U.S. Government Obligations usually have been placed in escrow to retire the bonds at their earliest call date.

See accompanying notes to financial statements.

13 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

STATEMENT OF ASSETS AND LIABILITIES

SEPTEMBER 30, 2015 (unaudited)

ASSETS
Investments at value (cost $719,841,359)	$	754,102,776
Cash		4, 239,354
Interest receivable		9,163,354
Receivable for Trust shares sold		191,220
Other assets		58,102
Total assets		767,754,806
LIABILITIES
Payable for Trust shares redeemed		664, 548
Dividends payable		337,114
Advisory and Administrative fees payable		282,386
Accrued expenses payable		135,654
Total liabilities		1,419, 702
NET ASSETS	$	766,335,104
Net Assets consist of:
Capital Stock – Authorized an unlimited number of shares,
par value $0.01 per share	$	668,218
Additional paid-in capital		737,302,737
Net unrealized appreciation on investments (note 4)		34,261, 417
Accumulated net realized loss on investments		(5,897,268	)
	$	766,335,104
CLASS A
Net Assets	$	663,973,787
Capital shares outstanding		57,898,729
Net asset value and redemption price per share	$	11.47
Maximum offering price per share (100/96 of $11.47)	$	11.95
CLASS C
Net Assets	$	57,844,066
Capital shares outstanding		5,047,314
Net asset value and offering price per share	$	11.46
Redemption price per share (*a charge of 1% is imposed
on the redemption proceeds, or on the original price,
whichever is lower, if redeemed during the first 12
months after purchase)	$	11.46	*
CLASS Y
Net Assets	$	44,517,251
Capital shares outstanding		3,875,786
Net asset value, offering and redemption price per share	$	11.49

See accompanying notes to financial statements.

14 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

STATEMENT OF OPERATIONS

SIX MONTHS ENDED SEPTEMBER 30, 2015 (unaudited)

Investment Income:
Interest income				$	12,007,739
Expenses:
Investment Adviser fees (note 3)	$	893,161
Distribution and service fees (note 3)		974,081
Administrator/Business Manager fees (note 3)		854,324
Transfer and shareholder servicing agent fees		225,229
Trustees’ fees and expenses (note 8)		109,250
Legal fees		97,504
Fund accounting fees		78,801
Shareholders’ reports and proxy statements		43,950
Custodian fees (note 6)		26,317
Insurance		20,528
Registration fees and dues		19,116
Auditing and tax fees		13,437
Chief compliance officer services (note 3)		3,266
Miscellaneous		35,480
Total expenses		3,394,444
Expenses paid indirectly (note 6)		(577	)
Net expenses					3,393,867
Net investment income					8,613,872
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from securities
transactions		343,045
Change in unrealized appreciation on
investments		(4,417,718	)
Net realized and unrealized gain
on investments					(4,074,673	)
Net change in net assets resulting from
operations				$	4,539,199

See accompanying notes to financial statements.

15 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

STATEMENTS OF CHANGES IN NET ASSETS

	Six Months Ended
	September 30, 2015			Year Ended
	(unaudited)			March 31, 2015
OPERATIONS:
Net investment income	$	8,613,872		$	19,728,778
Net realized gain (loss) from securities
transactions		343,045			601,455
Change in unrealized appreciation on
investments		(4,417,718	)		10,986,723
Net change in net assets resulting from
operations		4,539,199			31,316,956
DISTRIBUTIONS TO SHAREHOLDERS (note 10):
Class A Shares:
Net investment income		(7,591,463	)		(17,511,442	)
Class C Shares:
Net investment income		(448,518	)		(1,163,585	)
Class Y Shares:
Net investment income		(573,891	)		(1,053,751	)
Change in net assets from distributions		(8,613,872	)		(19,728,778	)
CAPITAL SHARE TRANSACTIONS (note 7):
Proceeds from shares sold		32,107,351			65,472,325
Reinvested dividends and distributions		6,558,182			14,718,601
Cost of shares redeemed		(55,152,055	)		(94,484,783	)
Change in net assets from capital share
transactions		(16,486,522	)		(14,293,857	)
Change in net assets		(20,561,195	)		(2,705,679	)
NET ASSETS:
Beginning of period		786,896,299			789,601,978
End of period	$	766,335,104		$	786,896,299

See accompanying notes to financial statements.

16 | Hawaiian Tax-Free Trust

HAWAIIAN TAX-FREE TRUST

NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2015 (unaudited)

1. Organization

     Hawaiian Tax-Free Trust (the “Trust”), a non-diversified, open-end investment company, was organized on May 7, 1984, as a Massachusetts business trust and commenced operations on February 20, 1985. The Trust is authorized to issue an unlimited number of shares. Class A Shares are sold at net asset value plus a sales charge of varying size (depending upon a variety of factors) paid at the time of purchase and bear a distribution fee. Class C Shares are sold at net asset value with no sales charge payable at the time of purchase but with a level charge for service and distribution fees for six years thereafter. Class C Shares automatically convert to Class A Shares after six years. Class Y Shares are sold only through authorized financial institutions acting for investors in a fiduciary, advisory, agency, custodial or similar capacity, and are not offered directly to retail customers. Class Y Shares are sold at net asset value with no sales charge, no redemption fee, no contingent deferred sales charge (“CDSC”) and no distribution fee. Class I Shares are offered and sold only through financial intermediaries and are not offered directly to retail customers. Class I Shares are sold at net asset value with no sales charge and no redemption fee or CDSC, although a financial intermediary may charge a fee for effecting a purchase or other transaction on behalf of its customers. Class I Shares carry a distribution and a service fee. As of the report date, there were no Class I Shares outstanding. All classes of shares represent interests in the same portfolio of investments and are identical as to rights and privileges but differ with respect to the effect of sales charges, the distribution and/or service fees borne by each class, expenses specific to each class, voting rights on matters affecting a single class and the exchange privileges of each class.

2. Significant Accounting Policies

     The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America for investment companies.

a) Portfolio valuation: Municipal securities are valued each business day based upon information provided by a nationally prominent independent pricing service and periodically verified through other pricing services. In the case of securities for which market quotations are readily available, securities are valued by the pricing service at the mean of bid and asked quotations. If a market quotation or a valuation from the pricing service is not readily available, the security is valued at fair value determined in good faith under procedures established by and under the general supervision of the Board of Trustees.

b) Fair value measurements: The Trust follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Trust’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Trust’s investments and are summarized in the following fair value hierarchy:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access.

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HAWAIIAN TAX-FREE TRUST

NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, based on the best information available.

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the valuation inputs, representing 100% of the Trust’s investments, used to value the Trust’s net assets as of September 30, 2015:

Valuation Inputs	Investments in Securities
Level 1 – Quoted Prices	$	—
Level 2 – Other Significant Observable
Inputs – Municipal Bonds*		754,102,776
Level 3 – Significant Unobservable Inputs		–
Total	$	754,102,776

*See schedule of investments for a detailed listing of securities.

c) Subsequent events: In preparing these financial statements, the Trust has evaluated events and transactions for potential recognition or disclosure through the date these financial statements were issued.

d) Securities transactions and related investment income: Securities transactions are recorded on the trade date. Realized gains and losses from securities transactions are reported on the identified cost basis. Interest income is recorded daily on the accrual basis and is adjusted for amortization of premium and accretion of original issue discount and market discount.

e) Federal income taxes: It is the policy of the Trust to continue to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code applicable to certain investment companies. The Trust intends to make distributions of income and securities profits sufficient to relieve it from all, or substantially all, Federal income and excise taxes.

Management has reviewed the tax positions for each of the open tax years (2012–2014) or expected to be taken in the Fund’s 2015 tax returns and has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements.

f) Multiple class allocations: All income, expenses (other than class-specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares based on the relative net assets of each class. Class-specific expenses, which include distribution and service fees and any other items that are specifically attributed to a particular class, are also charged directly to such class on a daily basis.

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NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

g) Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

h) Reclassification of capital accounts: Accounting principles generally accepted in the United States of America require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. On March 31, 2015, the Trust decreased additional paid-in capital by $1,982,286 and increased accumulated net realized loss by $1,982,286. These reclassifications had no effect on net assets or net asset value per share.

i) The Trust is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services-Investment Companies”.

3. Fees and Related Party Transactions

a) Management Arrangements:

     The Asset Management Group of Bank of Hawaii (“the Adviser”), serves as Investment Adviser to the Trust. In this role, under an Investment Advisory Agreement, the Adviser supervises the Trust’s investments. Aquila Investment Management LLC (the “Administrator/ Business Manager”), a wholly-owned subsidiary of Aquila Management Corporation, the Trust’s founder and sponsor, serves as the Administrator/Business Manager for the Trust under an Administration and Business Management Agreement with the Trust. The Administrator/Business Manager provides all administrative services to the Trust other than those relating to its investment portfolio. These include providing the office of the Trust and all related services as well as overseeing the activities of all the various support organizations to the Trust such as the shareholder servicing agent, fund accounting agent, custodian, legal counsel, auditors and distributor.

     The Trust pays the Adviser a fee which is payable monthly and computed on the net assets of the Trust as of the close of business each day at the annual rate of 0.23% of the Trust’s net assets up to and including $875 million; 0.17% of the Trust’s net assets between $875 million and $1.5 billion; and 0.155% of the Trust’s net assets over $1.5 billion. For its services, the Administrator/Business Manager is entitled to receive a fee which is payable monthly and computed as of the close of business each day at the annual rate of 0.22% of the Trust’s net assets.

     Under a Compliance Agreement with the Administrator/Business Manager, the Administrator/Business Manager is additionally compensated by the Trust for Chief Compliance Officer related services provided to enable the Trust to comply with Rule 38a-1 of the Investment Company Act of 1940.

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NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

     Specific details as to the nature and extent of the services provided by the Adviser and the Administrator/Business Manager are more fully defined in the Trust’s Prospectus and Statement of Additional Information.

b) Distribution and Service Fees:

     The Trust has adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 (the “Rule”) under the Investment Company Act of 1940. Under one part of the Plan, with respect to Class A Shares, the Trust is authorized to make distribution fee payments to broker-dealers or others (“Qualified Recipients”) selected by Aquila Distributors, Inc. (the “Distributor”), including, but not limited to, any principal underwriter of the Trust, with which the Distributor has entered into written agreements contemplated by the Rule and which have rendered assistance in the distribution and/or retention of the Trust’s shares or servicing of shareholder accounts. The Trust makes payment of this distribution fee at the annual rate of 0.20% of the Trust’s average net assets represented by Class A Shares. For the six months ended September 30, 2015, service fees on Class A Shares amounted to $669,196 of which the Distributor retained $31,410.

     Under another part of the Plan, the Trust is authorized to make payments with respect to Class C Shares to Qualified Recipients which have rendered assistance in the distribution and/or retention of the Trust’s Class C shares or servicing of shareholder accounts. These payments are made at the annual rate of 0.75% of the Trust’s average net assets represented by Class C Shares and for the six months ended September 30, 2015, amounted to $228,664. In addition, under a Shareholder Services Plan, the Trust is authorized to make service fee payments with respect to Class C Shares to Qualified Recipients for providing personal services and/or maintenance of shareholder accounts. These payments are made at the annual rate of 0.25% of the Trust’s average net assets represented by Class C Shares and for the six months ended September 30, 2015, amounted to $76,221. The total of these payments made with respect to Class C Shares amounted to $304,885 of which the Distributor retained $70,130.

     Specific details about the Plans are more fully defined in the Trust’s Prospectus and Statement of Additional Information.

     Under a Distribution Agreement, the Distributor serves as the exclusive distributor of the Trust’s shares. Through agreements between the Distributor and various brokerage and advisory firms (“intermediaries”), the Trust’s shares are sold primarily through the facilities of these intermediaries having offices within Hawaii, with the bulk of any sales commissions inuring to such intermediaries. For the six months ended September 30, 2015, total commissions on sales of Class A Shares amounted to $327,347, of which the Distributor received $29,449.

4. Purchases and Sales of Securities

     During the six months ended September 30, 2015, purchases of securities and proceeds from the sales of securities aggregated $90,763,442 and $105,253,113, respectively.

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NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

     At September 30, 2015, the aggregate tax cost for all securities was $719,841,359. At September 30, 2015, the aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost amounted to $34,566,416 and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value amounted to $304,999 for a net unrealized appreciation of $34,261,417.

5. Portfolio Orientation

     Since the Trust invests principally and may invest entirely in double tax-free municipal obligations of issuers within Hawaii, it is subject to possible risks associated with economic, political, or legal developments or industrial or regional matters specifically affecting Hawaii and whatever effects these may have upon Hawaii issuers’ ability to meet their obligations.

6. Expenses

     The Trust had negotiated an expense offset arrangement with JPMorgan Chase Bank N.A., which served as its custodian until November 2, 2015. Under these arrangements, it received credit toward the reduction of custodian fees and other Trust expenses whenever there were uninvested cash balances. The Statement of Operations reflects the total expenses before any offset, the amount of offset, if any, and the net expenses. Effective November 2, 2015, the Trust no longer receives credits toward the reduction of custody fees from the Trust’s new custodian.

7. Capital Share Transaction

Transactions in Capital Shares of the Trust were as follows:

	Six Months Ended
	September 30, 2015						Year Ended
	(unaudited)						March 31, 2015
	Shares			Amount			Shares			Amount
Class A Shares:
Proceeds from shares sold		1,887,792		$	21,532,063			3,296,636		$	37,983,177
Reinvested distributions		522,375			5,967,207			1,161,983			13,386,967
Cost of shares redeemed		(3,343,679	)		(38,190,760	)		(6,131,972	)		(70,513,812	)
Net change		(933,512	)		(10,691,490	)		(1,673,353	)		(19,143,668	)
Class C Shares:
Proceeds from shares sold		457,210			5,217,596			783,599			9,041,520
Reinvested distributions		28,595			326,421			71,487			822,946
Cost of shares redeemed		(935,129	)		(10,659,207	)		(1,491,645	)		(17,154,535	)
Net change		(449,324	)		(5,115,190	)		(636,559	)		(7,290,069	)
Class Y Shares:
Proceeds from shares sold		468,095			5,357,692			1,595,937			18,447,628
Reinvested distributions		23,146			264,554			44,025			508,688
Cost of shares redeemed		(551,468	)		(6,302,088	)		(589,630	)		(6,816,436	)
Net change		(60,227	)		(679,842	)		1,050,332			12,139,880
Total transactions in Trust
shares		(1,443,063	)	$	(16,486,522	)		(1,259,580	)	$	(14,293,857	)

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NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

8. Trustees’ Fees and Expenses

     At September 30, 2015 there were 5 Trustees, one of whom is affiliated with the Administrator/Business Manager and is not paid any fees. The total amount of Trustees’ service fees (for carrying out their responsibilities) and attendance fees paid during the six months ended September 30, 2015 was $94,722. Attendance fees are paid to those in attendance at regularly scheduled quarterly Board Meetings and meetings of the Independent Trustees held prior to each quarterly Board Meeting, as well as additional meetings (such as Audit, Nominating, Shareholder and special meetings). Trustees are reimbursed for their expenses such as travel, accommodations and meals incurred in connection with attendance at Board Meetings and the Annual and Outreach Meetings of Shareholders. For the six months ended September 30, 2015, such meeting-related expenses amounted to $14,528.

9. Securities Traded on a When-Issued Basis

     The Trust may purchase or sell securities on a when-issued basis. When-issued transactions arise when securities are purchased or sold by the Trust with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Trust at the time of entering into the transaction. Beginning on the date the Trust enters into a when-issued transaction, cash or other liquid securities are segregated in an amount equal to or greater than the value of the when-issued transaction. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other securities.

10. Income Tax Information and Distributions

     The Trust declares dividends daily from net investment income and makes payments monthly. Net realized capital gains, if any, are distributed annually and are taxable. These distributions are paid in additional shares at the net asset value per share, in cash, or in a combination of both, at the shareholder’s option.

     The Trust intends to maintain, to the maximum extent possible, the tax-exempt status of interest payments received from portfolio municipal securities in order to allow dividends paid to shareholders from net investment income to be exempt from regular Federal and State of Hawaii income taxes. Due to differences between financial statement reporting and Federal income tax reporting requirements, distributions made by the Trust may not be the same as the Trust’s net investment income, and/or net realized securities gains. Further, a portion of the dividends and distributions may, under some circumstances, be subject to taxes at ordinary income and/or capital gain rates. For certain shareholders, some dividend income may, under some circumstances, be subject to the alternative minimum tax. As a result of the passage of the Regulated Investment Company Act of 2010 (the “Act”), losses incurred in this fiscal year and beyond retain their character as short-term or long-term, have no expiration date and are utilized before capital losses incurred prior to the enactment of the Act. At March 31, 2015 the Trust had a capital loss carryover of $6,240,313, of which, $1,251,412 expires in 2016, $1,198,556 expires in 2017, $3,244,561 expires in 2018, and $62,543 expires in 2019 and $36,407 and $446,834 have no expiration and retain their character of short-term and long-term, respectively. This carryover is available to offset future net realized gains on securities transactions to the extent provided for in the Internal Revenue Code.

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NOTES TO FINANCIAL STATEMENTS (continued)

SEPTEMBER 30, 2015 (unaudited)

The tax character of distributions was as follows:

	Year Ended March 31,
	2015		2014
Net tax-exempt income	$	19,630,531	$	21,487,202
Ordinary income		98,247		65,708
	$	19,728,778	$	21,552,910

     As of March 31, 2015, the components of distributable earnings on a tax basis were as follows:

Unrealized appreciation	$	38,679,135
Undistributed tax-exempt income		287,303
Other accumulated losses		(6,240,313	)
Other temporary differences		(287,303	)
	$	32,438,822

     The difference between book basis and tax basis undistributed income is due to the timing difference in recognizing dividends paid.

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FINANCIAL HIGHLIGHTS

For a share outstanding throughout each period

	Class A
	Six Months
	Ended
	9/30/15			Year Ended March 31,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.53		$	11.36		$	11.74		$	11.64		$	11.17		$	11.34
Income (loss) from investment operations:
Net investment income(1)		0.13			0.30			0.30			0.30			0.34			0.36
Net gain (loss) on securities (both
realized and unrealized)		(0.06	)		0.17			(0.38	)		0.10			0.47			(0.17	)
Total from investment operations		0.07			0.47			(0.08	)		0.40			0.81			0.19
Less distributions (note 10):
Dividends from net investment income		(0.13	)		(0.30	)		(0.30	)		(0.30	)		(0.34	)		(0.36	)
Distributions from capital gains		–			–			–			–			–			–
Total distributions		(0.13	)		(0.30	)		(0.30	)		(0.30	)		(0.34	)		(0.36	)
Net asset value, end of period	$	11.47		$	11.53		$	11.36		$	11.74		$	11.64		$	11.17
Total return (not reflecting sales charge)		0.62	%(2)		4.14	%		(0.63	)%		3.49	%		7.34	%		1.69	%
Ratios/supplemental data
Net assets, end of period (in millions)	$	664		$	678		$	687		$	774		$	751		$	709
Ratio of expenses to average net assets .		0.82	%(3)		0.81	%		0.82	%		0.79	%		0.74	%		0.74	%
Ratio of net investment income to
average net assets		2.27	%(3)		2.57	%		2.65	%		2.58	%		2.97	%		3.19	%
Portfolio turnover rate		12	%(2)		14	%		4	%		9	%		20	%		7	%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets .		0.82	%(3)		0.81	%		0.82	%		0.79	%		0.74	%		0.74	%

_________________

(1) Per share amounts have been calculated using the daily average shares method.

(2) Not annualized.

(3) Annualized.

See accompanying notes to financial statements.

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FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period

	Class C
	Six Months
	Ended
	9/30/15			Year Ended March 31,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.52		$	11.35		$	11.73		$	11.63		$	11.16		$	11.34
Income (loss) from investment operations:
Net investment income(1)		0.08			0.20			0.21			0.21			0.25			0.27
Net gain (loss) on securities (both
realized and unrealized)		(0.05	)		0.17			(0.37	)		0.10			0.47			(0.18	)
Total from investment operations		0.03			0.37			(0.16	)		0.31			0.72			0.09
Less distributions (note 10):
Dividends from net investment income		(0.09	)		(0.20	)		(0.22	)		(0.21	)		(0.25	)		(0.27	)
Distributions from capital gains		–			–			–			–			–			–
Total distributions		(0.09	)		(0.20	)		(0.22	)		(0.21	)		(0.25	)		(0.27	)
Net asset value, end of period	$	11.46		$	11.52		$	11.35		$	11.73		$	11.63		$	11.16
Total return (not reflecting CDSC)		0.21	%(2)		3.31	%		(1.38	)%		2.67	%		6.49	%		0.79	%
Ratios/supplemental data
Net assets, end of period (in millions)	$	58		$	63		$	70		$	92		$	79		$	65
Ratio of expenses to average net assets		1.62	%(3)		1.61	%		1.62	%		1.59	%		1.54	%		1.54	%
Ratio of net investment income to
average net assets		1.47	%(3)		1.78	%		1.85	%		1.77	%		2.15	%		2.38	%
Portfolio turnover rate		12	%(2)		14	%		4	%		9	%		20	%		7	%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets		1.62	%(3)		1.61	%		1.62	%		1.58	%		1.54	%		1.54	%

_________________

(1) Per share amounts have been calculated using the daily average shares method.

(2) Not annualized.

(3) Annualized.

See accompanying notes to financial statements.

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FINANCIAL HIGHLIGHTS (continued)

For a share outstanding throughout each period

	Class Y
	Six Months
	Ended
	9/30/15			Year Ended March 31,
	(unaudited)			2015			2014			2013			2012			2011
Net asset value, beginning of period	$	11.55		$	11.38		$	11.76		$	11.66		$	11.19		$	11.36
Income (loss) from investment operations:
Net investment income(1)		0.14			0.32			0.33			0.33			0.36			0.38
Net gain (loss) on securities (both
realized and unrealized)		(0.06	)		0.17			(0.38	)		0.10			0.47			(0.16	)
Total from investment operations		0.08			0.49			(0.05	)		0.43			0.83			0.22
Less distributions (note 10):
Dividends from net investment income		(0.14	)		(0.32	)		(0.33	)		(0.33	)		(0.36	)		(0.39	)
Distributions from capital gains		–			–			–			–			–			–
Total distributions		(0.14	)		(0.32	)		(0.33	)		(0.33	)		(0.36	)		(0.39	)
Net asset value, end of period	$	11.49		$	11.55		$	11.38		$	11.76		$	11.66		$	11.19
Total return		0.72	%(2)		4.34	%		(0.43	)%		3.69	%		7.55	%		1.89	%
Ratios/supplemental data
Net assets, end of period (in millions)	$	45		$	45		$	33		$	39		$	30		$	28
Ratio of expenses to average net assets		0.62	%(3)		0.61	%		0.62	%		0.59	%		0.54	%		0.54	%
Ratio of net investment income to
average net assets		2.47	%(3)		2.77	%		2.85	%		2.77	%		3.17	%		3.38	%
Portfolio turnover rate		12	%(2)		14	%		4	%		9	%		20	%		7	%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets		0.62	%(3)		0.61	%		0.62	%		0.59	%		0.54	%		0.54	%

_________________

(1) Per share amounts have been calculated using the daily average shares method.

(2) Not annualized.

(3) Annualized.

See accompanying notes to financial statements.

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Additional information (unaudited)

Renewal of the Investment Advisory Agreement

     Asset Management Group of Bank of Hawaii (the “Adviser”) serves as the investment adviser to the Trust pursuant to an Investment Advisory Agreement (the “Advisory Agreement”). In order for the Adviser to remain the investment adviser of the Trust, the Trustees of the Trust must determine annually whether to renew the Advisory Agreement for the Trust.

     In considering whether to approve the renewal of the Advisory Agreement, the Trustees requested and obtained such information as they deemed reasonably necessary. Contract review materials were provided to the Trustees in August, 2015. The independent Trustees met telephonically on September 9, 2015 and in person on September 30, 2015 to review and discuss the contract review materials. The Trustees considered, among other things, information presented by the Adviser and by Aquila Investment Management LLC (the “Administrator”). They also considered information presented in a report prepared by an independent consultant with respect to the Trust’s fees, expenses and investment performance, which included comparisons of the Trust’s investment performance against peers and the Trust’s benchmark and comparisons of the advisory fee payable under the Advisory Agreement against the advisory fees paid by the Trust’s peers, as well as information regarding the operating margins of certain investment advisory firms (the “Consultant’s Report”). In addition, the Trustees took into account the information related to the Trust provided to the Trustees at each regularly scheduled meeting.

     At the meeting held on September 30, 2015, based on their evaluation of the information provided by the Adviser, Administrator and the independent consultant, the Trustees of the Trust, including the independent Trustees voting separately, unanimously approved the renewal of the Advisory Agreement until September 30, 2016. In considering the renewal of the Advisory Agreement, the Trustees considered various factors that they determined were relevant, including the factors described below. The Trustees did not identify any single factor as the controlling factor in determining to approve the renewal of the Advisory Agreement.

The nature, extent, and quality of the services provided by the Adviser

     The Trustees considered the nature, extent and quality of the services that had been provided by the Adviser to the Trust, taking into account the investment objectives and strategies of the Trust. The Trustees reviewed the terms of the Advisory Agreement.

     The Trustees also reviewed the Adviser’s investment approach for the Trust and its research process. The Trustees considered the personnel of the Adviser who provide investment management services to the Trust. The Trustees considered the portfolio management team employed by the Adviser for the Trust and the Adviser’s facilities for credit analysis of the Trust’s portfolio securities. It was noted that the portfolio management team, based in Honolulu, has provided local information regarding specific holdings in the Trust’s portfolio, a particular advantage as to holdings with less than the highest ratings from the rating agencies.

     The Trustees considered that the Adviser had provided all portfolio management services to the Trust that the Trustees deemed necessary or appropriate, including the specific services that the Trustees have determined are required for the Trust, given that it seeks to provide shareholders with as high a level of current income exempt from Hawaii state and regular Federal income taxes as is consistent with preservation of capital.

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     Based on these considerations, the Trustees concluded that the nature, extent and quality of services that had been provided by the Adviser to the Trust were satisfactory and consistent with the terms of the Advisory Agreement.

The investment performance of the Trust

     The Trustees reviewed the Trust’s performance and compared its performance to the performance of:

• the funds in the Trust’s peer group (the “Peer Group”), as selected by the independent consultant (seven municipal single-state intermediate and municipal single-state long funds, as classified by Morningstar, that are similar to the Trust in size and that charge a front-end sales charge and one fund is a no-load fund that also is a Hawaii state-specific tax-free municipal bond fund);

• the funds in the Trust’s product category for performance (the “Product Category for Performance”) (all funds in the Peer Group and, without duplication, all funds (and all classes) included in the Morningstar Single-State Intermediate Municipal Bond Funds category); and

• the Trust’s benchmark index, the Barclays Capital Quality Intermediate Municipal Bond Index.

     The Trustees considered that the materials included in the Consultant’s Report indicated that the Trust’s average annual total return was less than the average annual total return of the funds in the Peer Group and the funds in the Product Category for Performance, in each case for the one, three, five and ten year periods ended June 30, 2015. They also considered that the Trust’s average annual total return was less than the average annual total return of the benchmark index for each of those periods. The Trustees noted that, unlike the Trust’s returns, the performance of the benchmark index did not reflect any fees, expenses or sales charges. They also noted that less than 1% of the benchmark index consists of Hawaii bonds. The Trustees considered that, as reflected in the Consultant’s Report, the Trust was less volatile, as measured by standard deviation, than the average volatility of the funds in its product category (for the three and five year period ended June 30, 2015).

     The Trustees discussed the Trust’s performance record with the Adviser and considered the Adviser’s view that the Trust’s performance, as compared to the Product Category for Performance and the Peer Group, was explained in part by the Trust’s somewhat higher-quality portfolio and its historical intermediate maturity structure. The Trustees considered that, in periods of volatility, the Trust has historically provided above average returns relative to the funds in the Product Category for Performance. They also considered data provided by the Adviser that reflected that, during turbulent market periods, the Trust historically has tended to outperform other Hawaii municipal bond funds, as well as the Adviser’s view that the better downside protection historically provided by the Trust in volatile markets is consistent with the expectations of the Trust’s shareholders. Evaluation of the investment performance of the Trust indicated to the Trustees that renewal of the Advisory Agreement would be appropriate.

28 | Hawaiian Tax-Free Trust

Advisory Fees and Trust Expenses

     The Trustees reviewed the Trust’s advisory fees and expenses and compared them to the advisory fee and expense data for:

• the funds in the Peer Group (as defined above); and

• the funds in the product category for expenses (the “Product Category for Expenses”) (Morningstar Single-State Intermediate Municipal Bond Funds and Morningstar Single State Long Municipal Bond Funds from states within which 1-3 mutual funds are operating, with similar operating expense structures).

     The Trustees noted the independent consultant’s report compared the aggregate advisory and administration fee for the Trust with the advisory fee data for the Peer Group and the Product Category for Expenses. The Trustees considered that the Trust’s contractual advisory fee and the Trust’s aggregate advisory and administration fee was lower than the average contractual advisory fee of the funds in the Peer Group (at the current asset level) and lower than the asset-weighted average contractual advisory fee of the funds in the Product Category for Expenses (at various asset levels). They also noted that the Trust’s expenses were lower than the average actual expenses of the funds in both the product category and peer group.

     The Trustees reviewed management fees charged by the Adviser to its other clients. The Trustees noted that, in most instances, the fee rates for those clients were lower than the fees paid to the Adviser with respect to the Trust. In evaluating the fees associated with the client accounts, the Trustees took into account the respective demands, resources and complexity associated with the Trust and those client accounts.

     The Trustees concluded that the advisory fee and expenses of the Trust were reasonable in relation to the nature and quality of the services provided by the Adviser to the Trust.

Profitability

     The Adviser and the Administrator each provided materials which showed the profitability to the Adviser and the Administrator, respectively, of their services to the Trust, as well as material provided by the Administrator which showed the profitability to Aquila Distributors, Inc. (the “Distributor”) of distribution services provided to the Trust.

     The Trustees considered information regarding the profitability of the Adviser with respect to the services provided by the Adviser to the Trust, including the methodology used by the Adviser in allocating certain of its costs to the portfolio management of the Trust. The Trustees concluded that profitability to the Adviser with respect to the services provided to the Trust did not argue against approval of the fees to be paid under the Advisory Agreement.

The extent to which economies of scale would be realized as the Trust grows

     The Trustees considered the extent to which the Adviser may realize economies of scale or other efficiencies in managing the Trust. The Trust has in place breakpoints in the advisory fee which would be realized as the Trust grows. Under the Advisory Agreement, the Trust pays the Adviser an advisory fee at the annual rate of 0.23% of the Trust’s net asset value on assets up to and including $875 million; 0.17% of the Trust’s net asset value on assets between $875 million and $1.5 billion; and 0.155% of the Trust’s net asset value on assets over $1.5 billion. Accordingly, the Trustees concluded that economies of scale, if any, were being appropriately shared with the Trust.

29 | Hawaiian Tax-Free Trust

Benefits derived or to be derived by the Adviser and its affiliates from the relationship with the Trust

     The Trustees observed that, as is generally true of most fund complexes, the Adviser, by providing services to other funds and accounts including the Trust, was able to spread costs as it would otherwise be unable to do. The Trustees noted that while that produces efficiencies and increased profitability for the Adviser, it also makes their services available to the Trust at favorable levels of quality and cost which are more advantageous to the Trust than would otherwise have been possible.

30 | Hawaiian Tax-Free Trust

Analysis of Expenses (unaudited)

     As a shareholder of the Trust, you may incur two types of costs: (1) transaction costs, including front-end sales charges with respect to Class A shares or contingent deferred sales charges (“CDSC”) with respect to Class C shares; and (2) ongoing costs, including management fees; distribution (12b-1) and/or service fees; and other Trust expenses. The table below is intended to help you understand your ongoing costs (in dollars) of investing in the Trust and to compare these costs with the ongoing costs of investing in other mutual funds.

     The table below is based on an investment of $1,000 invested on April 1, 2015 and held for the six months ended September 30, 2015.

Actual Expenses

     This table provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading “Expenses Paid During the Period”.

Six months ended September 30, 2015

	Actual
	Total Return	Beginning	Ending	Expenses
	Without	Account	Account	Paid During
	Sales Charges(1)	Value	Value	the Period(2)
Class A	0.62%	$1,000.00	$1,006.20	$4.12
Class C	0.21%	$1,000.00	$1,002.10	$8.13
Class Y	0.72%	$1,000.00	$1,007.20	$3.12

(1) Assumes reinvestment of all dividends and capital gain distributions, if any, at net asset value and does not reflect the deduction of the applicable sales charges with respect to Class A shares or the applicable CDSC with respect to Class C shares. Total return is not annualized; as such, it may not be representative of the total return for the year.

(2) Expenses are equal to the annualized expense ratio of 0.82%, 1.62% and 0.62% for the Trust’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

31 | Hawaiian Tax-Free Trust

Analysis of Expenses (unaudited) (continued)

Hypothetical Example for Comparison Purposes

     The table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Trust’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Trust and other mutual funds. To do so, compare this 5.00% hypothetical example relating to the Trust with the 5.00% hypothetical examples that appear in the shareholder reports of other mutual funds.

     Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, with respect to Class A shares. The example does not reflect the deduction of CDSC with respect to Class C shares. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transaction costs were included, your costs would have been higher.

Six months ended September 30, 2015

	Hypothetical
	Annualized	Beginning	Ending	Expenses
	Total	Account	Account	Paid During
	Return	Value	Value	the Period(1)
Class A	5.00%	$1,000.00	$1,020.96	$4.15
Class C	5.00%	$1,000.00	$1,016.95	$8.19
Class Y	5.00%	$1,000.00	$1,021.96	$3.14

(1) Expenses are equal to the annualized expense ratio of 0.82%, 1.62% and 0.62% for the Trust’s Class A, C and Y shares, respectively, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).

32 | Hawaiian Tax-Free Trust

Shareholder Meeting Results (unaudited)

     The Annual Meeting of Shareholders of Hawaiian Tax-Free Trust (the “Trust”) was held on October 1, 2015. The holders of shares representing 79% of the total net asset value of the shares entitled to vote were present in person or by proxy. At the meeting, the following matters were voted upon and approved by the shareholders (the resulting votes are presented below).

1. To elect Trustees.

	Dollar Amount of Votes:
Trustee	For	Withheld
Diana P. Herrmann	$567,164,718	$19,109,555
Richard L. Humphreys	$566,673,342	$19,600,931
Bert A. Kobayashi, Jr.	$559,125,905	$27,148,368
Glenn P. O’Flaherty	$568,161,129	$18,113,144
Russell K. Okata	$548,596,894	$37,677,379

2. To ratify the selection of Tait, Weller & Baker LLP as the Trust’s independent registered public accounting firm.

	Dollar Amount of Votes:
For	Against	Abstain
$562,796,726	$9,756,204	$13,721,296

33 | Hawaiian Tax-Free Trust

Shareholder Meeting Results (unaudited)

     A reconvened Special Meeting of Shareholders of Hawaiian Tax-Free Trust was held on November 10, 2015. The holders of shares representing 60% of the total net asset value of the shares entitled to vote were present in person or by proxy. At the meeting, the following matters were voted upon and approved by the shareholders (the resulting votes are presented below).

		Dollar Amount of Votes:
		For	Against	Abstain
1.	Approve an Amended and Restated Declaration of Trust regarding.
1A.	Future Amendments	$411,127,047	$20,930,342	$32,965,918
1B.	Termination	$395,165,666	$32,509,314	$37,348,327
1C.	Annual Shareholder Meetings	$415,438,939	$17,275,862	$32,308,506
1D.	Removal of Trustees	$412,475,913	$14,222,256	$38,325,138
1E.	Indemnification/liability of Trustees,
	officers and employees	$408,489,164	$20,041,976	$36,492,167
1F.	Shareholder/Derivative Actions	$400,562,339	$27,697,200	$36,763,768
1G.	Number of Trustees/Vacancies	$407,150,041	$22,421,465	$35,451,801
1H.	Series and classes	$412,847,603	$14,613,874	$37,561,830
1I.	Other changes effected by Amended
	Declaration	$402,700,651	$24,624,579	$37,698,077
2.	Approve changes to the Trust’s fundamental policies relating to:
2A.	Concentration of Trust investments	$413,441,597	$17,253,151	$34,328,559
2B.	Lending of Trust assets	$389,795,848	$33,644,401	$41,583,058
2C.	Borrowing of money	$387,993,981	$36,546,463	$40,482,863
2D.	Issuance of senior securities	$407,693,138	$21,087,239	$36,242,930
2E.	Investments in commodities	$397,895,020	$29,820,964	$37,307,320
2F.	Certain affiliated transactions	$398,842,873	$25,635,148	$40,545,286
2G.	Investments in real estate	$406,127,670	$24,481,761	$34,413,876
2H.	Restrictions on control investments	$407,012,774	$21,454,085	$36,556,448
2I.	Restrictions on short sales and use
	of margin	$400,834,213	$28,605,040	$35,584,053
2J.	Underwriting	$401,004,221	$24,166,977	$39,852,109

34 | Hawaiian Tax-Free Trust

Information Available (unaudited)

     Much of the information that the funds in the Aquila Group of Funds produce is automatically sent to you and all other shareholders. Specifically, you are routinely sent your Trust’s entire list of portfolio securities twice a year in the semi-annual and annual reports you receive. Additionally, under Trust policies, the Administrator/Business Manager publicly discloses the complete schedule of the Trust’s portfolio holdings, as of each calendar quarter, generally by the 15th day after the end of each calendar quarter. Such information remains accessible until the next schedule is made publicly available. You may obtain a copy of the Trust’s portfolio holdings schedule for the most recently completed period by visiting the Trust’s website at www.aquilafunds.com. The Trust may also disclose other portfolio holdings as of a specified date (currently the Trust discloses its five largest holdings and/or sector holdings by value as of the close of the last business day of each calendar month in a posting to its website on approximately the 5th business day following the month end). This information remains on the website until the next such posting. Whenever you wish to see a listing of your Trust’s portfolio other than in your shareholder reports, please check our website at www.aquilafunds.com or call us at 1-800-437-1020.

     The Trust additionally files a complete list of its portfolio holdings with the SEC for the first and third quarter ends of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the SEC website at www.sec.gov. You may also review or, for a fee, copy the forms at the SEC’s Public Reference Room in Washington, D.C. or by calling 1-800-SEC-0330.

Proxy Voting Record (unaudited)

     During the 12 month period ended June 30, 2015, the Trust did not hold any portfolio securities for which the Trust was entitled to participate in proxy voting. Applicable regulations require us to inform you that the Trust’s proxy voting information is available on the SEC website at www.sec.gov.

Federal Tax Status of Distributions (unaudited)

     This information is presented in order to comply with a requirement of the Internal Revenue Code. No current action on the part of shareholders is required.

     For the fiscal year ended March 31, 2015, $19,630,531 of dividends paid by Hawaiian Tax-Free Trust, constituting 99.5% of total dividends paid, were exempt-interest dividends, exempt from regular Federal income tax and Hawaii state income tax; and the balance was ordinary dividend income.

     Prior to February 15, 2016, shareholders will be mailed the appropriate tax form(s) which will contain information on the status of distributions paid for the 2015 calendar year.

35 | Hawaiian Tax-Free Trust

Founders

     Lacy B. Herrmann (1929-2012)

 Aquila Management Corporation, Sponsor

Administrator/Business Manager

AQUILA INVESTMENT MANAGEMENT LLC

 120 West 45th Street, Suite 3600

 New York, New York 10036

Investment Adviser

ASSET MANAGEMENT GROUP of

BANK of HAWAII

130 Merchant Street, Suite 370

 Honolulu, Hawaii 96813

Board of Trustees

Richard L. Humphreys, Chair

 Diana P. Herrmann, Vice

 Chair Bert A. Kobayashi, Jr.

Glenn P. O’Flaherty

 Russell K. Okata

Officers

     Diana P. Herrmann, President

 Charles E. Childs, III, Executive Vice President

 and Secretary

 Marie E. Aro, Senior Vice President

 Sherri Foster, Senior Vice President

 Paul G. O’Brien, Senior Vice President

 Stephen J. Caridi, Vice President

 Randall S. Fillmore, Chief Compliance Officer

 Joseph P. DiMaggio, Chief Financial Officer

and Treasurer

Distributor

AQUILA DISTRIBUTORS, INC.

 120 West 45th Street, Suite 3600

 New York, New York 10036

Transfer and Shareholder Servicing Agent

     BNY MELLON

 4400 Computer Drive

 Westborough, Massachusetts 01581

Custodian

     BNY MELLON

 225 Liberty Street

 New York, New York 10286

Further information is contained in the Prospectus,

 which must precede or accompany this report.

ITEM 2. CODE OF ETHICS.

Not applicable

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

Included in Item 1 above

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Board of Directors of the Registrant has adopted a Nominating Committee Charter which provides that the Nominating Committee (the 'Committee') may consider and evaluate nominee candidates properly submitted by shareholders if a vacancy among the Independent Trustees of the Registrant occurs and if, based on the Board's then current size, composition and structure, the Committee determines that the vacancy should be filled.  The Committee will consider candidates submitted by shareholders on the same basis as it considers and evaluates candidates recommended by other sources.  A copy of the qualifications and procedures that must be met or followed by shareholders to properly submit a nominee candidate to the Committee may be obtained by submitting a request in writing to the Secretary of the Registrant.

ITEM 11. CONTROLS AND PROCEDURES.

(a)  Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing of this report, the registrant's chief financial and executive officers have concluded that the disclosure controls and procedures of the registrant are appropriately designed to ensure that information required to be disclosed in the registrant's reports that are filed under the Securities Exchange Act of 1934 are accumulated and communicated to registrant's management, including its principal executive officer(s) and principal financial officer(s), to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the Securities and Exchange Commission.

(b)  There have been no significant changes in registrant's internal controls or in other factors that could significantly affect registrant's internal controls subsequent to the date of the most recent evaluation, including no significant deficiencies or material weaknesses that required corrective action.

ITEM 12. EXHIBITS.

  (a)(2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of1940.

  (b) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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.

HAWAIIAN TAX-FREE TRUST

By:	/s/ Diana P. Herrmann
	Vice Chair, President and Trustee December   7, 2015
By:	/s/ Joseph P. DiMaggio
	Chief Financial Officer and Treasurer December   7, 2015

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:	/s/ Diana P. Herrmann
	Diana P. Herrmann Vice Chair, President and Trustee December   7, 2015
By:	/s/ Joseph P. DiMaggio
	Joseph P. DiMaggio Chief Financial Officer and Treasurer December   7, 2015

HAWAIIAN TAX-FREE TRUST

EXHIBIT INDEX

(a)(2)Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(b) Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940.