-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VZ/gNl1Lid+PyUuj76GckpFIP6ufKHNtJEfdxHHSfjDZH5FXXhlZUMf6lAtgJn2B L8v1mtAsmtRnUzFK21rDhg== 0000935069-05-002619.txt : 20050907 0000935069-05-002619.hdr.sgml : 20050907 20050907122125 ACCESSION NUMBER: 0000935069-05-002619 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20050630 FILED AS OF DATE: 20050907 DATE AS OF CHANGE: 20050907 EFFECTIVENESS DATE: 20050907 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BISHOP STREET FUNDS CENTRAL INDEX KEY: 0000925737 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08572 FILM NUMBER: 051072176 BUSINESS ADDRESS: STREET 1: 1FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19087-1693 BUSINESS PHONE: 610 767-3204 MAIL ADDRESS: STREET 1: 1FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19087-1693 N-CSRS 1 bishopsarcomb6_05.txt BISHOP STREET SAR 6_05 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 811-08572 BISHOP STREET FUNDS (Exact name of registrant as specified in charter) -------- 2 Oliver Street Boston, MA 02109 (Address of principal executive offices) SEI Investments One Freedom Valley Drive Oaks, PA 19456 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-888-462-5386 DATE OF FISCAL YEAR END: DECEMBER 31, 2005 DATE OF REPORTING PERIOD: JUNE 30, 2005 ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC OMITTED] [BACKGROUND OMITTED] BISHOP STREET FUNDS SEMI-ANNUAL REPORT JUNE 30, 2005 EQUITY FUND STRATEGIC GROWTH FUND TAX MANAGED EQUITY FUND HIGH GRADE INCOME FUND HAWAII MUNICIPAL BOND FUND MONEY MARKET FUND TREASURY MONEY MARKET FUND INVESTMENT ADVISER BISHOP STREET CAPITAL MANAGEMENT [BISHOP STREET LOGO OMITTED] The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds' Forms N-Q are available on the Commission's website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities is available without charge, by calling 1-800-262-9565 or by visiting the Commission's website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, by calling 1-800-262-9565 or by visiting the Funds' website at http://www.bishopstreetfunds.com or the website of the Securities and Exchange Commission. BISHOP STREET TABLE OF CONTENTS FUNDS LETTER TO SHAREHOLDERS .............................................. 2 STATEMENTS OF NET ASSETS Equity Fund ................................................... 4 Strategic Growth Fund ......................................... 9 Tax Managed Equity Fund ....................................... 13 High Grade Income Fund ........................................ 17 Hawaii Municipal Bond Fund .................................... 25 Money Market Fund ............................................. 35 Treasury Money Market Fund .................................... 39 STATEMENTS OF OPERATIONS ............................................ 42 STATEMENTS OF CHANGES IN NET ASSETS ................................. 44 FINANCIAL HIGHLIGHTS ................................................ 48 NOTES TO FINANCIAL STATEMENTS ....................................... 52 DISCLOSURE OF FUND EXPENSES ......................................... 60 APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS ....................................... 62 SHAREHOLDER VOTING RESULTS .......................................... 65 1 BISHOP STREET LETTER TO SHAREHOLDERS FUNDS [Dale Kobayashi Photo Omitted] The second quarter of 2005 did little to resolve the growing uncertainty about the economy and the markets. In the end, stocks moved up ever so slightly, but were still down for the year. Although the final tally of economic growth for the first quarter was surprisingly strong at 3.80%, and inflation remained under control, stock investors had nagging doubts. Chief among these: tightening monetary policy, record oil prices, and increasing indications of a real estate bubble. Meanwhile, bond investors seemed to ignore rising short-term rates (the Federal-funds rate hit 3.25% after the 9th consecutive quarter point hike), and the potential inflationary effects of higher energy prices. Instead of inflation, bond markets are pointing towards slowing economic growth, pushing the 10-year Treasury yield once again under 4.00%. As a result, the yield curve has flattened dramatically. Looking ahead, we share the view that economic growth will continue to slow, although not to "stall" speed. Such is the combined effect of oil, monetary policy, and an economic recovery now in its fourth year. Each time the Federal Reserve (the "Fed") lifts interest rates, however, the stakes seem to grow a little higher, even as the end of the tightening cycle comes, tantalizingly, a little nearer. In large part, it is our expectation of an end to monetary tightening, along with attractive valuations relative to bonds, which underpins our positive outlook for the stock market. Of course, there is no guarantee the Fed will "get Bishop Street Funds 2 [BISHOP STREET LOGO OMITTED] it right", and there are plenty of unexpected shocks which could derail our forecast (as we are reminded by the recent terrorist attacks in London), but history has shown repeatedly: don't underestimate the resilience of the U.S. economy. Thank you for your continued support and confidence. Sincerely, /s/ Dale Kobayashi Dale Kobayashi President and Chief Investment Officer Bishop Street Capital Management June 30, 2005 3 www.bishopstreetfunds.com Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS+ - -------------------------------------------------------------------------------- Percentage of Investments ---------------------------------------------------------------------------- 1 PepsiCo 3.3% ---------------------------------------------------------------------------- 2. Citigroup 3.3% ---------------------------------------------------------------------------- 3. Johnson & Johnson 3.2% ---------------------------------------------------------------------------- 4. General Electric 3.2% ---------------------------------------------------------------------------- 5. Pfizer 3.0% ---------------------------------------------------------------------------- 6. GlobalSantaFe 2.9% ---------------------------------------------------------------------------- 7. Microsoft 2.9% ---------------------------------------------------------------------------- 8. JPMorgan Chase 2.9% ---------------------------------------------------------------------------- 9. Amgen 2.8% ---------------------------------------------------------------------------- 10. Intel 2.8% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 16.4% Information Technology 15.5% Health Care 14.6% Financials 13.2% Industrials 12.2% Energy 10.9% Consumer Staples 9.0% Consumer Discretionary 3.7% Materials 2.4% Short-Term Investments 2.1% Telecommunication Services - -------------------------------------------------------------------------------- +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. STATEMENT OF NET ASSETS Market Value Shares (000) --------- --------- COMMON STOCK -- 98.7% CONSUMER DISCRETIONARY -- 9.1% 21,410 Carnival (A) $ 1,168 41,120 Comcast, Cl A* (A) 1,262 73,080 eBay* 2,412 61,723 IAC/InterActiveCorp* (A) 1,484 15,657 Mohawk Industries* 1,292 12,503 Omnicom Group 999 35,000 Viacom, Cl B 1,121 -------- 9,738 -------- Bishop Street Funds 4 Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) -------- --------- CONSUMER STAPLES -- 11.0% 48,686 CVS $ 1,415 66,950 PepsiCo 3,611 54,720 Procter & Gamble 2,886 67,610 Sysco (A) 2,447 29,160 Wal-Mart Stores 1,406 -------- 11,765 -------- ENERGY -- 12.3% 33,880 Devon Energy 1,717 48,080 Exxon Mobil 2,763 77,210 GlobalSantaFe 3,150 56,240 Halliburton 2,689 37,538 Schlumberger Ltd. 2,851 -------- 13,170 -------- FINANCIALS -- 14.8% 18,440 AMBAC Financial Group 1,286 25,933 American Express 1,381 77,133 Citigroup 3,566 26,560 Goldman Sachs Group 2,710 87,950 JPMorgan Chase 3,106 31,404 St. Paul Travelers 1,241 40,610 Wells Fargo 2,501 -------- 15,791 -------- HEALTH CARE -- 15.7% 50,430 Amgen* 3,049 63,014 Boston Scientific* 1,701 16,140 Eli Lilly 899 14,280 Forest Laboratories* 555 12,731 Genzyme* 765 14,560 Gilead Sciences* 641 54,019 Johnson & Johnson 3,511 118,061 Pfizer 3,256 46,014 UnitedHealth Group 2,399 -------- 16,776 -------- June 30, 2005 5 www.bishopstreetfunds.com Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) -------- -------- INDUSTRIALS -- 13.4% 13,360 Apollo Group, Cl A* $ 1,045 39,300 Danaher 2,057 100,175 General Electric 3,471 17,200 Joy Global 578 27,832 Pentair 1,192 70,110 Tyco International Ltd. (A) 2,047 19,820 Union Pacific 1,284 19,800 United Parcel Service Inc/Georgia, Cl B 1,369 24,080 United Technologies 1,237 -------- 14,280 -------- INFORMATION TECHNOLOGY -- 16.6% 81,039 Applied Materials* (A) 1,311 72,890 Cisco Systems* 1,393 50,642 Dell* 2,001 46,970 EMC Corp/Massachusetts* 644 86,200 Flextronics International Ltd.* 1,139 116,900 Intel 3,046 13,222 International Business Machines 981 17,112 Linear Technology 628 11,930 Mercury Interactive* 458 126,194 Microsoft 3,135 37,340 Paychex 1,215 33,110 Qualcomm 1,093 32,866 Symantec* 714 -------- 17,758 -------- MATERIALS -- 3.7% 35,776 Alcoa 935 35,760 Dow Chemical (A) 1,592 31,600 Praxair 1,473 -------- 4,000 -------- TELECOMMUNICATION SERVICES -- 2.1% 33,680 Verizon Communications 1,164 45,010 Vodafone Group ADR* (A) 1,094 -------- 2,258 -------- TOTAL COMMON STOCK (Cost $99,280) 105,536 -------- Bishop Street Funds 6 Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Shares/Face Value Amount (000) (000) -------------- --------- CASH EQUIVALENTS -- 2.5% 1,320,105 Dreyfus Cash Management Fund $ 1,320 1,320,077 Fidelity Institutional Money Market Fund 1,320 -------- TOTAL CASH EQUIVALENTS (Cost $2,640) 2,640 -------- CORPORATE OBLIGATIONS (B) -- 2.9% FINANCIALS -- 2.9% Bank of America $1,013 3.518%, 07/01/05 1,013 Bear Stearns 1,013 3.588%, 07/06/05 1,013 Bear Stearns MTN (C) 1,013 3.536%, 01/12/06 1,013 -------- TOTAL CORPORATE OBLIGATIONS (Cost $3,039) 3,039 -------- CERTIFICATES OF DEPOSIT/BANK NOTES (B)(C) -- 1.9% First Tennessee Bank 2,026 3.080%, 03/21/06 2,026 -------- TOTAL CERTIFICATES OF DEPOSIT/BANK NOTES (Cost $2,026) 2,026 -------- COMMERCIAL PAPER (B)(C) -- 1.4% Morgan Stanley 1,519 3.508%, 08/19/05 1,519 -------- TOTAL COMMERCIAL PAPER (Cost $1,519) 1,519 -------- REPURCHASE AGREEMENTS (B) -- 4.7% Bank of America 3.490%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $3,737,400 (collateralized by various corporate obligations, par value $3,818,446, 5.000%, 12/16/13; 3,737 total market value $3,923,890) 3,737 Lehman Brothers 3.508%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $1,311,010 (collateralized by a mortgage obligation, par value $1,598,060, 4.080%, 03/25/33; total market 1,311 value $1,376,657) 1,311 -------- TOTAL REPURCHASE AGREEMENTS (Cost $5,048) 5,048 -------- TOTAL INVESTMENTS (COST $113,552) -- 112.1% 119,808 -------- June 30, 2005 7 www.bishopstreetfunds.com Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Value (000) --------- OTHER ASSETS AND LIABILITIES -- (12.1)% Payable Upon Return of Securities Loaned $(11,632) Payable for Capital Shares Redeemed (1,276) Investment Adviser Fees Payable (60) Administrative Fees Payable (11) Shareholder Servicing Fees Payable (9) Other Assets and Liabilities, Net 103 -------- TOTAL OTHER ASSETS AND LIABILITIES (12,885) -------- NET ASSETS -- 100.0% $106,923 ======== NET ASSETS: Fund Shares (unlimited authorization -- no par value) $157,608 Distributions in Excess of Net Investment Income (6) Accumulated Net Realized Loss on Investments (56,935) Net Unrealized Appreciation on Investments 6,256 -------- NET ASSETS $106,923 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($106,922,902 / 11,345,294 SHARES) $ 9.42 ======== * NON-INCOME PRODUCING SECURITY (A) THE SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2005 (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS.) THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2005 WAS $11,215,841. (B) THESE SECURITIES WERE PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS.) THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2005 WAS $11,631,528. (C) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 2005. THE MATURITY DATE SHOWN IS THE NEXT SCHEDULED RESET DATE. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS LTD. -- LIMITED MTN -- MEDIUM TERM NOTE COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 8 Strategic Growth Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS+ - -------------------------------------------------------------------------------- Percentage of Investments ---------------------------------------------------------------------------- 1. Express Scripts 2.2% ---------------------------------------------------------------------------- 2. Nordstrom 2.2% ---------------------------------------------------------------------------- 3. L-3 Communications Holdings 2.2% ---------------------------------------------------------------------------- 4. IVAX 2.2% ---------------------------------------------------------------------------- 5. WellPoint 2.1% ---------------------------------------------------------------------------- 6. Lehman Brothers Holdings 2.1% ---------------------------------------------------------------------------- 7. Coach 2.1% ---------------------------------------------------------------------------- 8. Jabil Circuit 2.1% ---------------------------------------------------------------------------- 9. UnitedHealth Group 2.1% ---------------------------------------------------------------------------- 10. Western Digital 2.1% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 24.1% Information Technology 19.9% Health Care 19.7% Consumer Discretionary 15.4% Financials 11.8% Industrials 3.9% Energy 2.0% Telecommunication Services 1.9% Materials 1.3% Short-Term Investments +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. STATEMENT OF NET ASSETS Market Value Shares (000) -------- -------- COMMON STOCK -- 98.3% CONSUMER DISCRETIONARY -- 19.6% 26,200 Apollo Group, Cl A* $ 2,049 47,100 Bed Bath & Beyond* 1,968 63,000 Coach* 2,115 26,400 Federated Department Stores 1,934 21,900 Harman International Industries 1,782 78,107 Hilton Hotels 1,863 33,200 Lowe's 1,933 32,700 Nordstrom 2,223 82,950 Staples 1,768 37,800 Yum! Brands 1,969 ------- 19,604 ------- June 30, 2005 9 www.bishopstreetfunds.com Strategic Growth Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) -------- -------- ENERGY -- 4.0% 35,400 BJ Services $ 1,858 60,800 XTO Energy 2,067 ------- 3,925 ------- FINANCIALS -- 15.3% 33,700 Allstate 2,014 38,700 Bank of America 1,765 25,400 Capital One Financial 2,032 38,400 Citigroup 1,775 20,300 Everest Re Group Ltd. 1,888 18,200 Goldman Sachs Group 1,857 21,400 Lehman Brothers Holdings 2,125 41,200 Moody's 1,852 ------- 15,308 ------- HEALTH CARE -- 19.8% 23,400 Aetna 1,938 29,700 Amgen* 1,796 45,300 Caremark Rx* 2,017 44,600 Express Scripts* 2,229 32,000 Genzyme* 1,923 45,300 Gilead Sciences* 1,993 17,900 Invitrogen* 1,490 99,800 IVAX* 2,146 40,000 UnitedHealth Group 2,085 30,600 WellPoint* 2,131 ------- 19,748 ------- INDUSTRIALS -- 11.7% 88,600 Cendant 1,982 23,200 FedEx 1,880 94,100 JetBlue Airways* 1,923 28,300 L-3 Communications Holdings 2,167 64,000 Norfolk Southern 1,982 34,800 United Technologies 1,787 ------- 11,721 ------- INFORMATION TECHNOLOGY -- 24.0% 77,700 Accenture Ltd., Cl A* 1,761 54,700 Apple Computer* 2,014 55,700 Autodesk 1,914 242,500 Avaya* 2,018 100,400 Cisco Systems* 1,919 Bishop Street Funds 10 Strategic Growth Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) -------- -------- INFORMATION TECHNOLOGY -- (CONTINUED) 14,500 Cognos* $ 495 45,600 Dell* 1,802 76,500 Intel 1,994 68,500 Jabil Circuit* 2,105 46,800 Mercury Interactive* 1,795 111,600 Motorola 2,038 76,700 Nvidia* 2,049 154,600 Western Digital* 2,075 ------- 23,979 ------- MATERIALS -- 1.9% 42,200 Dow Chemical 1,879 ------- TELECOMMUNICATION SERVICES -- 2.0% 63,000 Nextel Communications, Cl A* 2,035 ------- TOTAL COMMON STOCK (Cost $85,158) 98,199 ------- CASH EQUIVALENTS -- 1.3% 656,485 Dreyfus Cash Management Fund 656 656,485 Fidelity Institutional Money Market Fund 656 ------- TOTAL CASH EQUIVALENTS (Cost $1,312) 1,312 ------- TOTAL INVESTMENTS (COST $86,470) -- 99.6% 99,511 ------- OTHER ASSETS AND LIABILITIES -- 0.4% Payable for Investment Securities Purchased (1,530) Investment Adviser Fees Payable (60) Payable for Capital Shares Redeemed (14) Administrative Fees Payable (9) Shareholder Servicing Fees Payable (8) Other Assets and Liabilities, Net 2,015 ------- TOTAL OTHER ASSETS AND LIABILITIES 394 ------- NET ASSETS -- 100.0% $99,905 ======= June 30, 2005 11 www.bishopstreetfunds.com Strategic Growth Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Value (000) -------- NET ASSETS: Fund Shares (unlimited authorization -- no par value) $86,226 Accumulated Net Investment Loss (175) Accumulated Net Realized Gain on Investments 813 Net Unrealized Appreciation on Investments 13,041 ------- NET ASSETS $99,905 ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($99,905,167 / 7,701,395 SHARES) $ 12.97 ======= * NON-INCOME PRODUCING SECURITY CL -- CLASS LTD. -- LIMITED COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 12 Tax Managed Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS+ - -------------------------------------------------------------------------------- Percentage of Investments ---------------------------------------------------------------------------- 1. Citigroup 4.2% ---------------------------------------------------------------------------- 2. Exxon Mobil 3.7% ---------------------------------------------------------------------------- 3. General Electric 3.3% ---------------------------------------------------------------------------- 4. Johnson & Johnson 3.0% ---------------------------------------------------------------------------- 5. Amgen 2.6% ---------------------------------------------------------------------------- 6. Altria Group 2.4% ---------------------------------------------------------------------------- 7. Microsoft 2.4% ---------------------------------------------------------------------------- 8. Pfizer 2.3% ---------------------------------------------------------------------------- 9. Halliburton 2.2% ---------------------------------------------------------------------------- 10. JPMorgan Chase 2.1% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 18.3% Financials 15.3% Information Technology 12.0% Energy 11.9% Industrials 11.6% Health Care 10.7% Consumer Discretionary 10.6% Consumer Staples 4.8% Materials 2.5% Telecommunication Services 1.7% Utilities 0.6% Short-Term Investments +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. STATEMENT OF NET ASSETS Market Value Shares (000) --------- --------- COMMON STOCK -- 97.4% CONSUMER DISCRETIONARY -- 10.5% 4,300 Carnival $ 235 12,600 Comcast, Cl A* 387 13,900 eBay* 459 8,930 Home Depot 347 26,710 IAC/InterActiveCorp* 642 4,700 Mohawk Industries* 388 4,000 Omnicom Group 319 6,950 Target 378 June 30, 2005 www.bishopstreetfunds.com 13 Tax Managed Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) --------- -------- CONSUMER DISCRETIONARY -- (CONTINUED) 14,750 Time Warner* $ 246 14,200 Viacom, Cl B 455 ------- 3,856 ------- CONSUMER STAPLES -- 10.4% 13,400 Altria Group 867 11,380 Avon Products 431 15,000 CVS 436 10,180 PepsiCo 549 11,940 Procter & Gamble 630 12,000 Sysco 434 9,200 Wal-Mart Stores 443 ------- 3,790 ------- ENERGY -- 11.8% 8,820 Chevron 493 12,000 Devon Energy 608 23,000 Exxon Mobil 1,322 12,730 GlobalSantaFe 520 16,250 Halliburton 777 7,850 Schlumberger Ltd. 596 ------- 4,316 ------- FINANCIALS -- 17.9% 4,200 Aflac 182 10,500 Allstate 627 7,580 American Express 403 3,130 American International Group* 182 32,400 Citigroup 1,498 4,300 Goldman Sachs Group 439 21,790 JPMorgan Chase 770 5,760 Merrill Lynch 317 13,200 Montpelier Re Holdings Ltd. 456 13,230 Wachovia 656 6,500 Washington Mutual 265 12,230 Wells Fargo 753 ------- 6,548 ------- HEALTH CARE -- 11.3% 15,400 Amgen* 931 6,200 Eli Lilly 345 3,670 Genzyme* 221 16,340 Johnson & Johnson 1,062 30,088 Pfizer 830 Bishop Street Funds 14 Tax Managed Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) --------- -------- HEALTH CARE -- (CONTINUED) 14,560 UnitedHealth Group $ 759 ------- 4,148 ------- INDUSTRIALS -- 11.7% 5,690 3M 411 3,330 General Dynamics 365 34,100 General Electric 1,182 4,900 Illinois Tool Works 390 4,000 Joy Global 134 13,080 Pentair 560 9,850 Tyco International Ltd. 288 7,470 Union Pacific 484 8,850 United Technologies 455 ------- 4,269 ------- INFORMATION TECHNOLOGY -- 15.0% 23,500 Applied Materials* 380 25,480 Cisco Systems* 487 13,060 Dell* 516 15,480 EMC Corp/Massachusetts* 212 25,200 Flextronics International Ltd.* 333 26,740 Intel 697 5,400 International Business Machines 401 5,070 Linear Technology 186 34,200 Microsoft 849 13,640 Paychex 444 10,520 Qualcomm 347 20,000 Symantec* 435 7,700 Texas Instruments 216 ------- 5,503 ------- MATERIALS -- 4.8% 15,960 Alcoa 417 11,100 Dow Chemical 494 8,100 E.I. Du Pont de Nemours 349 10,220 Praxair 476 ------- 1,736 ------- TELECOMMUNICATION SERVICES -- 2.4% 13,030 Verizon Communications 450 18,000 Vodafone Group ADR* 438 ------- 888 ------- UTILITIES -- 1.6% 11,600 Exelon 595 ------- TOTAL COMMON STOCK (Cost $30,628) 35,649 ------- June 30, 2005 www.bishopstreetfunds.com 15 Tax Managed Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Value Shares (000) --------- -------- CASH EQUIVALENTS -- 0.6% 104,810 Dreyfus Cash Management Fund $ 105 104,810 Fidelity Institutional Money Market Fund 105 ------- TOTAL CASH EQUIVALENTS (Cost $210) 210 ------- TOTAL INVESTMENTS (COST $30,838) -- 98.0% 35,859 ------- OTHER ASSETS AND LIABILITIES -- 2.0% Investment Adviser Fees Payable (18) Payable for Capital Shares Redeemed (12) Administrative Fees Payable (4) Shareholder Servicing Fees Payable (3) Other Assets and Liabilities, Net 768 ------- TOTAL OTHER ASSETS AND LIABILITIES 731 ------- NET ASSETS -- 100.0% $36,590 ======= NET ASSETS: Fund Shares (unlimited authorization -- no par value) $31,123 Accumulated Net Realized Gain on Investments 446 Net Unrealized Appreciation on Investments 5,021 ------- NET ASSETS $36,590 ======= NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($36,590,135 / 3,090,170 SHARES) $ 11.84 ======= * NON-INCOME PRODUCING SECURITY ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS LTD. -- LIMITED COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 16 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN HOLDINGS+ - -------------------------------------------------------------------------------- Percentage Coupon Maturity of Rate Date Investments - -------------------------------------------------------------------------------- 1. U.S. Treasury Bonds 7.250% 05/15/16 6.2% ---------------------------------------------------------------------------- 2. FNMA 3.750% 09/15/08 3.4% ---------------------------------------------------------------------------- 3. U.S. Treasury Bonds 5.375% 02/15/31 3.4% ---------------------------------------------------------------------------- 4. U.S. Treasury Bonds 6.250% 08/15/23 3.4% ---------------------------------------------------------------------------- 5. FNMA 7.250% 01/15/10 2.8% ---------------------------------------------------------------------------- 6. U.S. Treasury Bonds 6.375% 08/15/27 2.7% ---------------------------------------------------------------------------- 7. U.S. Treasury Bonds 7.500% 11/15/16 2.5% ---------------------------------------------------------------------------- 8. U.S. Treasury Notes 2.375% 08/15/06 2.1% ---------------------------------------------------------------------------- 9. FHLMC MTN 4.850% 12/01/09 2.0% ---------------------------------------------------------------------------- 10. FNMA 2.540% 01/12/07 1.8% - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 27.9% U.S. Treasury Obligations 25.9% U.S. Government Agency Obligations 12.1% Financials 7.1% Industrials 6.8% Consumer Discretionary 4.9% Energy 3.5% Health Care 3.1% Consumer Staples 2.8% Short-Term Investments 2.6% U.S. Government Mortgage-Backed Obligations 1.4% Telecommunication Services 1.0% Information Technology 0.9% Collaterlized Mortgage Obligation +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. STATEMENT OF NET ASSETS Face Market Amount Value (000) (000) -------- -------- CORPORATE OBLIGATIONS -- 47.6% AEROSPACE & DEFENSE -- 1.7% General Dynamics $ 1,000 4.500%, 08/15/10 $ 1,013 United Technologies 1,350 6.350%, 03/01/11 1,487 -------- 2,500 -------- AUTOMOTIVE -- 0.5% DaimlerChrysler NA Holding 700 8.000%, 06/15/10 791 -------- June 30, 2005 www.bishopstreetfunds.com 17 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- BANKS -- 1.7% Bank of America $ 2,350 4.875%, 01/15/13 $ 2,411 -------- BIOTECHNOLOGY -- 0.9% Boston Scientific 1,350 4.250%, 01/12/11 1,331 -------- BROADCASTING & CABLE -- 2.0% TCI Communications 1,400 7.875%, 08/01/13 1,666 Turner Broadcasting System 975 8.375%, 07/01/13 1,196 -------- 2,862 -------- COMPUTER HARDWARE -- 1.0% Dell 1,325 6.550%, 04/15/08 1,404 -------- FINANCIALS -- 17.7% American General Finance MTN, Ser G 1,400 5.750%, 03/15/07 1,433 Bank of America (B) 3,987 3.518%, 07/01/05 3,987 Bear Stearns (B) 3,987 3.588%, 07/06/05 3,987 Bear Stearns MTN (B)(C) 3,987 3.536%, 01/12/06 3,991 Citigroup 2,300 6.750%, 12/01/05 2,326 Countrywide Home Loans MTN, Ser H 1,350 6.250%, 04/15/09 1,432 General Electric Capital MTN, Ser A 2,350 5.450%, 01/15/13 2,493 Goldman Sachs Group 2,350 6.600%, 01/15/12 2,612 JPMorgan Chase 1,350 3.500%, 03/15/09 1,316 Morgan Stanley 1,250 6.600%, 04/01/12 1,390 Unitrin 850 4.875%, 11/01/10 848 -------- 25,815 -------- Bishop Street Funds 18 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) --------- -------- FOOD & BEVERAGE -- 2.1% ConAgra Foods $ 1,325 7.875%, 09/15/10 $ 1,526 Kraft Foods 1,400 5.625%, 11/01/11 1,485 -------- 3,011 -------- GENERAL MERCHANDISE -- 2.6% Target 1,150 6.350%, 01/15/11 1,265 Wal-Mart Stores 2,400 8.000%, 09/15/06 2,505 -------- 3,770 -------- HEALTH CARE -- 0.9% UnitedHealth Group 1,250 5.200%, 01/17/07 1,270 -------- HOUSEHOLD PRODUCTS -- 0.4% Rubbermaid 600 6.600%, 11/15/06 619 -------- MACHINERY - INDUSTRIAL -- 2.0% Lennar, Ser B 1,400 5.500%, 09/01/14 1,430 Masco 1,350 5.875%, 07/15/12 1,448 -------- 2,878 -------- MOVIES & ENTERTAINMENT -- 1.1% Walt Disney MTN 1,400 6.200%, 06/20/14 1,554 -------- OIL & GAS - EQUIPMENT/SERVICES -- 1.3% Baker Hughes 1,175 6.000%, 02/15/09 1,245 Kinder Morgan 675 6.800%, 03/01/08 713 -------- 1,958 -------- OIL & GAS - EXPLORATION/PRODUCTION -- 2.3% Anadarko Petroleum 1,250 7.200%, 03/15/29 1,520 Ocean Energy 1,700 7.250%, 10/01/11 1,899 -------- 3,419 -------- June 30, 2005 www.bishopstreetfunds.com 19 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) ---------- -------- OIL & GAS - INTEGRATED -- 1.2% Atlantic Richfield $ 1,385 9.125%, 03/01/11 $ 1,713 -------- PHARMACEUTICALS -- 1.7% Abbott Laboratories 2,400 6.400%, 12/01/06 2,479 -------- REAL ESTATE -- 0.8% Post Apartment Homes LP 1,050 7.700%, 12/20/10 1,194 -------- RETAIL - DRUGS -- 1.0% CVS 1,400 4.875%, 09/15/14 1,423 -------- RETAIL - FOOD -- 0.6% McDonald's MTN, Ser E 900 5.950%, 01/15/08 939 -------- SEMI-CONDUCTORS -- 0.9% Duke Energy 1,275 4.200%, 10/01/08 1,270 -------- TELECOMMUNICATIONS -- 1.4% GTE South, Ser C 675 6.000%, 02/15/08 697 New Cingular Wireless Services 1,350 7.350%, 03/01/06 1,380 -------- 2,077 -------- TRANSPORTATION SERVICES -- 0.9% FedEx 1,200 7.250%, 02/15/11 1,359 -------- UTILITIES -- 0.9% Dominion Resources 1,350 4.125%, 02/15/08 1,344 -------- TOTAL CORPORATE OBLIGATIONS (Cost $68,880) 69,391 -------- Bishop Street Funds 20 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) ------------ -------- U.S. TREASURY OBLIGATIONS -- 27.5% U.S. Treasury Bonds (A) $ 2,750 7.500%, 11/15/16 $ 3,604 7,000 7.250%, 05/15/16 8,963 3,000 6.375%, 08/15/27 3,890 3,900 6.250%, 08/15/23 4,860 1,000 6.250%, 05/15/30 1,303 1,050 6.000%, 02/15/26 1,294 4,125 5.375%, 02/15/31 4,868 1,500 5.250%, 11/15/28 1,713 U.S. Treasury Notes 200 6.500%, 02/15/10 (A) 223 2,500 4.375%, 05/15/07 (A) 2,533 1,350 4.375%, 08/15/12 (A) 1,400 1,200 4.000%, 02/15/14 1,207 1,200 4.000%, 02/15/15 (A) 1,204 3,000 2.375%, 08/15/06 (A) 2,961 -------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $35,842) 40,023 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 25.6% FHLB 200 6.875%, 08/13/10 226 1,350 5.375%, 02/15/07 1,382 1,400 4.750%, 08/13/10 1,443 2,000 4.000%, 03/10/08 2,001 1,000 3.875%, 07/24/09 996 1,750 3.875%, 02/12/10 (A) 1,740 1,800 3.750%, 08/15/08 1,789 2,500 3.375%, 02/15/08 (A) 2,467 FHLMC 2,400 5.125%, 10/15/08 2,488 1,400 4.750%, 05/06/13 1,386 1,350 4.375%, 07/30/09 (A) 1,349 1,400 4.375%, 03/01/10 1,402 FHLMC MTN 2,800 4.850%, 12/01/09 2,815 FNMA 3,600 7.250%, 01/15/10 (A) 4,082 1,250 5.500%, 07/18/12 1,251 1,400 4.400%, 03/08/10 1,403 800 3.875%, 11/17/08 795 5,000 3.750%, 09/15/08 (A) 4,956 2,700 2.540%, 01/12/07 2,649 625 2.350%, 03/30/09 (D) 625 -------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $37,119) 37,245 -------- June 30, 2005 www.bishopstreetfunds.com 21 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Shares/Face Value Amount (000) (000) ------------------ -------- CASH EQUIVALENTS -- 2.7% 1,983,881 Dreyfus Cash Management Fund $ 1,984 1,983,881 Fidelity Institutional Money Market Fund 1,984 -------- TOTAL CASH EQUIVALENTS (Cost $3,968) 3,968 -------- CERTIFICATES OF DEPOSIT/BANK NOTES (B)(C) -- 5.5% FINANCIALS -- 5.5% First Tennessee Bank $ 7,975 3.080%, 03/21/06 7,975 -------- TOTAL CERTIFICATES OF DEPOSIT/BANK NOTES (Cost $7,975) 7,975 -------- COMMERCIAL PAPER (B)(C) -- 4.1% Morgan Stanley 5,981 3.508%, 08/19/05 5,981 -------- TOTAL COMMERCIAL PAPER (Cost $5,981) 5,981 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 2.5% FHLMC 94 3.500%, 05/01/08 91 1,350 3.500%, 06/01/09 1,318 FHLMC, Ser 2922, Cl QE 1,000 5.000%, 05/15/34 999 FNMA 1,322 3.500%, 08/01/10 1,280 -------- TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $3,746) 3,688 -------- COLLATERALIZED MORTGAGE OBLIGATION -- 0.9% Citicorp Mortgage Securities, Ser 2003-11, Cl 2A8 1,303 5.500%, 12/25/33 1,322 -------- TOTAL COLLATERALIZED MORTGAGE OBLIGATION (Cost $1,337) 1,322 -------- Bishop Street Funds 22 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- ------- REPURCHASE AGREEMENTS (B) -- 13.6% Bank of America 3.490%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $3,737,400 (collateralized by various corporate obligations, par value $3,818,446, 5.000%, 12/16/13; total market $14,714 value $3,923,890) $ 14,714 Lehman Brothers 3.508%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $1,311,010, (collateralized by a mortgage obligation, par value $1,598,060, 4.080%, 03/25/33; total market 5,161 value $1,376,657) 5,161 -------- TOTAL REPURCHASE AGREEMENTS (Cost $19,875) 19,875 -------- TOTAL INVESTMENTS (COST $184,723) -- 130.0% 189,468 -------- OTHER ASSETS AND LIABILITIES -- (30.0)% Payable Upon Return of Securities Loaned (45,796) Income Distribution Payable (209) Investment Adviser Fees Payable (52) Payable for Capital Shares Redeemed (34) Administrative Fees Payable (13) Shareholder Servicing Fees Payable (12) Other Assets and Liabilities, Net 2,380 -------- TOTAL OTHER ASSETS AND LIABILITIES (43,736) -------- NET ASSETS -- 100.0% $145,732 ======== June 30, 2005 www.bishopstreetfunds.com 23 High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Value (000) -------- NET ASSETS: Fund Shares (unlimited authorization -- no par value) $139,859 Undistributed Net Investment Income 2 Accumulated Net Realized Gain on Investments 1,126 Net Unrealized Appreciation on Investments 4,745 -------- NET ASSETS $145,732 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($145,732,476 / 13,990,223 SHARES) $ 10.42 ======== (A) THE SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2005 (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS.) THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2005 WAS $44,777,892. (B) THESE SECURITIES WERE PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS.) THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2005 WAS $45,796,050. (C) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 2005. THE MATURITY DATE SHOWN IS THE NEXT SCHEDULED RESET DATE. (D) STEP BOND -- COUPON RATE INCREASES IN INCREMENTS TO MATURITY. RATE DISCLOSED IS AS OF JUNE 30, 2005. FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION LP -- LIMITED PARTNERSHIP MTN -- MEDIUM TERM NOTE NA -- NATIONAL ASSOCIATION SER -- SERIES COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 24 Hawaii Municipal Bond Fund(UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN HOLDINGS+ - --------------------------------------------------------------------------------
Percentage Coupon Maturity of Rate Date Investments - ------------------------------------------------------------------------------------- 1. Leander, Texas GO 5.170% 08/15/23 2.7% ------------------------------------------------------------------------------- 2. Puerto Rico Housing Financing Authority RB 5.000% 12/01/16 2.6% ------------------------------------------------------------------------------- 3. Hawaii State Department of Budget & Finance RB 5.650% 10/01/27 2.3% ------------------------------------------------------------------------------- 4. Hawaii State Highway RB 5.000% 07/01/15 2.2% ------------------------------------------------------------------------------- 5. Honolulu City & County, Hawaii GO 5.000% 07/01/19 2.1% ------------------------------------------------------------------------------- 6. Hawaii State Airport System RB 5.750% 07/01/17 2.0% ------------------------------------------------------------------------------- 7. Maui County, Hawaii GO 5.000% 03/01/14 1.9% ------------------------------------------------------------------------------- 8. Schaumburg, Illinois GO 5.000% 12/01/38 1.6% ------------------------------------------------------------------------------- 9. Hawaii State Airport System RB 6.500% 07/01/14 1.6% ------------------------------------------------------------------------------- 10. Honolulu City & County, Hawaii RB 5.250% 07/01/18 1.5% - -------------------------------------------------------------------------------------
[THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 40.1% General Revenue 11.6% Transportation 6.3% Facilities 6.1% Airport 5.7% School District 5.2% Power 4.8% Higher Education 4.2% Utilities 4.1% Medical 3.2% Housing 2.9% Short-Term Investments 1.8% Single Family Housing 1.4% Water 1.0% Development 0.9% Education 0.7% Multifamily Housing +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. STATEMENT OF NET ASSETS Face Market Amount Value (000) (000) -------- -------- MUNICIPAL BONDS -- 97.6% ARKANSAS -- 2.8% Alma, School District No. 30, Construction Project, Ser D, GO $ 1,015 4.800%, 01/01/33 $ 1,025 Alma, School District No. 30, Refunding & Construction Project, Ser C, GO 2,000 4.875%, 01/01/33 2,028 1,000 4.750%, 01/01/29 1,011 June 30, 2005 www.bishopstreetfunds.com 25
Hawaii Municipal Bond Fund (UNAUDITED) - ---------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- ARKANSAS -- (CONTINUED) Lincoln, School District No. 48, Construction Project, GO $ 430 4.875%, 02/01/34 $ 435 Osceola, School District No. 001, Construction Project, GO 395 4.800%, 11/01/34 398 -------- 4,897 -------- CALIFORNIA -- 2.1% California State, GO 1,000 5.000%, 02/01/33 1,050 Coast, Unified School District, School Facilities District 1-B, GO, FSA Insured 1,610 5.050%, 08/01/40 298 Highland, Redevelopment Agency, Project Area No. 1 Tax Allocation, RB, AMBAC Insured 1,440 5.650%, 12/01/24 1,726 La Mesa-Spring Valley, School District, Electric of 2002 Project, Ser B, GO, FGIC Insured 630 5.250%, 08/01/27 224 San Bernardino, Community College District, GO, FSA Insured 1,060 5.000%, 08/01/21 521 -------- 3,819 -------- FLORIDA -- 0.3% Leesburg, Utilities, RB, FGIC Insured 500 5.000%, 10/01/34 531 -------- HAWAII -- 76.3% Hawaii County, Refunding & Improvement Project, Ser A, GO, FGIC Insured 450 5.600%, 05/01/12 512 430 5.600%, 05/01/13 494 400 5.550%, 05/01/09 437 Hawaii County, Ser A, GO, FGIC Insured 630 5.500%, 07/15/12 708 Hawaii County, Ser A, GO, FSA Insured 1,000 5.625%, 05/15/19 1,094 500 5.400%, 05/15/15 543 1,000 5.250%, 05/15/11 1,086 1,000 5.000%, 07/15/23 1,067 Hawaii County, Ser A, GO, MBIA Insured 1,055 5.250%, 07/15/18 1,182 1,205 5.000%, 07/15/15 1,338 1,470 5.000%, 07/15/24 1,573
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Hawaii Municipal Bond Fund (UNAUDITED) - ------------------------------------------------------------------------------------------ STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, Airport System, RB, AMT, FGIC Insured $ 3,235 5.750%, 07/01/17 $ 3,591 250 5.250%, 07/01/21 264 Hawaii State, Airport System, Second Ser, RB, AMT, ETM 60 6.900%, 07/01/12 69 Hawaii State, Airport System, Second Ser, RB, AMT, ETM, MBIA Insured 1,155 6.900%, 07/01/12 1,329 Hawaii State, Airport System, Ser B, RB, AMT, FGIC Insured 1,500 6.625%, 07/01/18 1,712 2,500 6.500%, 07/01/14 2,858 100 6.000%, 07/01/19 111 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser A, RB, AMT, FGIC Insured 1,500 4.800%, 01/01/25 1,532 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser B, RB, AMT, XLCA Insured 1,000 5.000%, 12/01/22 1,051 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, AMBAC Insured 460 5.100%, 09/01/32 478 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, MBIA Insured 785 6.200%, 05/01/26 812 3,810 5.650%, 10/01/27 4,197 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser C, RB, AMT, AMBAC Insured 1,000 6.200%, 11/01/29 1,124 Hawaii State, Department of Budget & Finance, Kapiolani Health Care System Project, RB, Pre-Refunded @ 102 (A) 100 6.250%, 07/01/06 105 Hawaii State, Department of Budget & Finance, Queens Health Systems, Ser B, RB, MBIA Insured 750 5.250%, 07/01/11 800 1,445 5.250%, 07/01/12 1,537 1,275 5.250%, 07/01/13 1,355 1,000 5.250%, 07/01/14 1,061 Hawaii State, Department of Budget & Finance, Special Purpose Mortgage, Kapiolani Health Care System Project, RB, Pre-Refunded @ 100 (A) 1,460 6.300%, 07/01/05 1,460 Hawaii State, Harbor Capital Improvement, RB, AMT, MBIA Insured 2,000 5.500%, 07/01/27 2,085 545 5.400%, 07/01/09 580 June 30, 2005 www.bishopstreetfunds.com
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Hawaii Municipal Bond Fund (UNAUDITED) - ---------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, Harbor System, Ser A, RB, AMT, FSA Insured $ 2,025 5.750%, 07/01/17 $ 2,227 670 5.750%, 07/01/29 726 1,210 5.700%, 07/01/16 1,331 1,000 5.600%, 07/01/15 1,100 Hawaii State, Harbor System, Ser B, RB, AMT, AMBAC Insured 200 5.500%, 07/01/19 219 Hawaii State, Harbor System, Ser B, RB, AMT, FSA Insured 1,000 5.000%, 01/01/13 1,090 Hawaii State, Highway, RB 1,000 6.000%, 07/01/08 1,087 2,000 6.000%, 07/01/09 2,224 Hawaii State, Highway, RB, FGIC Insured, Pre-Refunded @ 101 (A) 405 5.000%, 07/01/08 435 Hawaii State, Highway, RB, Pre-Refunded @ 102 (A) 375 5.250%, 07/01/06 392 Hawaii State, Highway, Ser A, RB, FSA Insured 1,000 5.000%, 07/01/20 1,090 Hawaii State, Highway, Ser B, RB, FSA Insured 3,500 5.000%, 07/01/15 3,916 2,000 5.000%, 07/01/16 2,225 Hawaii State, Housing, Finance & Development, Affordable Rental Housing Program, Ser A, RB, Pre-Refunded @ 102 (A) 750 6.050%, 07/01/05 765 315 6.000%, 07/01/05 321 Hawaii State, Housing, Finance & Development, Single-Family Housing, Ser A, RB, AMT, FNMA Collateral 840 5.750%, 07/01/30 847 960 5.400%, 07/01/30 981 180 5.250%, 07/01/13 187 15 4.900%, 07/01/28 15 Hawaii State, Housing, Finance & Development, Single-Family Housing, Ser B, RB, FNMA Collateral 1,000 5.450%, 07/01/17 1,038 Hawaii State, Housing, Finance & Development, University of Hawaii Faculty Housing Project, RB, AMBAC Insured 700 5.650%, 10/01/16 712 415 5.000%, 10/01/06 422 395 4.850%, 10/01/05 397
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Hawaii Municipal Bond Fund (UNAUDITED) - -------------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, Kapolei Office Building, Ser A, COP, AMBAC Insured $ 1,475 5.250%, 05/01/13 $ 1,585 1,000 5.000%, 05/01/08 1,055 1,000 5.000%, 05/01/14 1,064 1,100 5.000%, 05/01/15 1,170 1,500 5.000%, 05/01/16 1,595 1,000 5.000%, 05/01/17 1,063 500 5.000%, 05/01/18 531 Hawaii State, No. 1 Capitol District State Office, COP, MBIA Insured 1,000 5.200%, 05/01/14 1,075 175 5.000%, 05/01/11 189 Hawaii State, Pacific Health Special Purpose, Ser A, RB 615 5.600%, 07/01/33 645 Hawaii State, Ser CL, GO 1,000 6.000%, 03/01/09 1,101 Hawaii State, Ser CL, GO, MBIA Insured 555 6.000%, 03/01/08 599 Hawaii State, Ser CM, GO, FGIC Insured 2,000 6.500%, 12/01/13 2,448 500 6.000%, 12/01/09 560 1,500 6.000%, 12/01/11 1,736 Hawaii State, Ser CN, GO, FGIC Insured, Pre-Refunded @ 102 (A) 540 5.250%, 03/01/07 573 Hawaii State, Ser CO, GO, FGIC Insured 200 6.000%, 09/01/05 201 Hawaii State, Ser CP, GO, FGIC Insured, Partially Pre-Refunded @ 101 (A) 300 5.000%, 10/01/07 315 Hawaii State, Ser CR, GO, MBIA Insured, Pre-Refunded @ 101 (A) 270 5.250%, 04/01/08 290 2,500 5.250%, 04/01/08 2,686 1,000 4.750%, 04/01/08 1,061 Hawaii State, Ser CU, GO, MBIA Insured 500 5.750%, 10/01/11 561 550 5.750%, 10/01/12 616 Hawaii State, Ser CV, GO, FGIC Insured 1,000 5.250%, 08/01/21 1,089 Hawaii State, Ser CX, GO, FSA Insured 1,000 5.500%, 02/01/21 1,107 Hawaii State, Ser DF, GO, AMBAC Insured 2,000 5.000%, 07/01/25 2,152 Hawaii State, University of Hawaii, Ser A, RB, FGIC Insured 500 5.500%, 07/15/21 557 June 30, 2005 www.bishopstreetfunds.com
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Hawaii Municipal Bond Fund (UNAUDITED) - ------------------------------------------------------------------------------------------ STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, University of Hawaii, Ser B, RB, FSA Insured $ 320 5.250%, 10/01/16 $ 350 775 5.250%, 10/01/17 848 Hawaiian Home Lands Department, RB 1,250 4.000%, 07/01/05 1,250 Honolulu City & County, Board of Water Supply, Ser A, RB, FGIC Insured 2,000 5.000%, 07/01/33 2,120 Honolulu City & County, FHA-Smith-Beretania, Ser 8A, RB, MBIA Insured 1,000 5.450%, 01/01/25 1,002 Honolulu City & County, GO 1,320 5.400%, 09/27/07 1,393 200 2.850%, 09/11/08 200 Honolulu City & County, GO, ETM 230 6.000%, 12/01/09 258 Honolulu City & County, Ser A, GO 55 6.000%, 01/01/10 62 Honolulu City & County, Ser A, GO, ETM 500 6.000%, 01/01/09 551 95 6.000%, 01/01/10 107 245 5.700%, 04/01/09 269 Honolulu City & County, Ser A, GO, ETM, MBIA Insured 135 6.000%, 11/01/10 154 Honolulu City & County, Ser A, GO, MBIA Insured 365 6.000%, 11/01/10 417 1,000 5.250%, 03/01/27 1,082 500 5.250%, 03/01/28 541 Honolulu City & County, Ser B, GO, ETM, FGIC Insured 635 5.500%, 10/01/11 718 Honolulu City & County, Ser B, GO, FGIC Insured, Pre-Refunded @ 101 (A) 2,000 5.125%, 07/01/09 2,184 Honolulu City & County, Ser B, GO, MBIA Insured 825 5.000%, 07/01/13 916 Honolulu City & County, Ser C, GO, FGIC Insured 125 5.500%, 11/01/07 133 1,200 5.125%, 07/01/11 1,301 1,100 5.125%, 07/01/15 1,185 650 5.000%, 07/01/09 698 3,500 5.000%, 07/01/19 3,734 Honolulu City & County, Ser D, GO, AMT, FGIC Insured 245 4.850%, 02/01/10 260 Bishop Street Funds
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Hawaii Municipal Bond Fund (UNAUDITED) - ---------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Honolulu City & County, Waipahu Towers Project, Ser A, RB, AMT, GNMA Collateral $ 200 6.900%, 06/20/35 $ 204 Honolulu City & County, Waste Water, 2nd Board Resolution, Junior Ser, RB, FGIC Insured 1,000 5.250%, 07/01/12 1,086 900 5.250%, 07/01/13 977 1,000 5.250%, 07/01/17 1,081 2,500 5.250%, 07/01/18 2,701 1,000 5.000%, 07/01/23 1,064 Kauai County, Public Improvement, Ser B, GO, MBIA Insured 175 5.200%, 08/01/15 184 165 5.150%, 08/01/14 174 155 5.100%, 08/01/13 163 120 5.050%, 08/01/12 126 140 5.000%, 08/01/11 147 135 4.950%, 08/01/10 142 100 4.850%, 08/01/09 105 120 4.750%, 08/01/08 125 Kauai County, Ser A, GO, FGIC Insured, Pre-Refunded @ 100 (A) 1,135 6.250%, 08/01/10 1,305 1,480 6.250%, 08/01/10 1,702 1,335 6.250%, 08/01/10 1,535 1,050 6.250%, 08/01/10 1,207 Kauai County, Ser A, GO, MBIA Insured 750 5.625%, 08/01/18 836 Maui County, GO, MBIA Insured 3,000 5.000%, 03/01/14 3,337 1,100 5.000%, 03/01/24 1,183 1,450 3.800%, 03/01/16 1,468 Maui County, Ser A, GO 485 5.375%, 03/01/12 537 Maui County, Ser A, GO, FGIC Insured 150 5.000%, 03/01/13 158 Maui County, Ser A, GO, FGIC Insured, Pre-Refunded @ 101 (A) 100 5.125%, 03/01/08 107 50 5.000%, 03/01/08 53 Maui County, Ser A, GO, MBIA Insured 1,840 5.000%, 03/01/20 1,957 Maui County, Ser B, GO, MBIA Insured 500 5.000%, 09/01/17 549 -------- 135,462 -------- June 30, 2005 www.bishopstreetfunds.com
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Hawaii Municipal Bond Fund (UNAUDITED) - ---------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- ILLINOIS -- 2.0% Illinois State, Educational Facilities Authority, Northwestern University, RB $ 670 5.000%, 12/01/38 $ 699 Schaumburg, Ser B, GO, FGIC Insured 2,750 5.000%, 12/01/38 2,908 -------- 3,607 -------- INDIANA -- 0.9% Elkhart, Community School Building Company, First Meeting, RB, XLCA Insured 1,500 4.500%, 07/15/24 1,524 -------- KENTUCKY -- 0.6% Kenton County, Airport Board, Ser C, RB, AMT, MBIA Insured 1,000 5.000%, 03/01/10 1,062 -------- NEW YORK -- 0.6% New York, Transitional Financing Authority, Ser C, RB 1,000 5.000%, 02/01/33 1,056 -------- PUERTO RICO -- 6.9% Commonwealth of Puerto Rico, GO, MBIA Insured 1,500 6.500%, 07/01/10 1,732 500 6.500%, 07/01/14 620 Commonwealth of Puerto Rico, Public Improvement, GO, FSA Insured 435 5.000%, 07/01/21 468 Commonwealth of Puerto Rico, Public Improvement, Ser A, GO 1,000 5.000%, 07/01/27 1,051 Puerto Rico, Electric Power Authority, Ser DD, RB, FSA Insured 1,000 5.000%, 07/01/28 1,042 Puerto Rico, Electric Power Authority, Ser HH, RB, FSA Insured 500 5.250%, 07/01/29 542 Puerto Rico, Housing, Banking & Financing Agency, Single-Family Mortgage, Affordable Housing Mortgage, Portfolio I, RB, AMT, GNMA/FNMA/FHLMC Collateral 180 6.100%, 10/01/15 184 Puerto Rico, Housing Financing Authority, Capital Funding Program, RB 4,360 5.000%, 12/01/16 4,720 Puerto Rico, Industrial Tourist Educational Medical Environmental Control Facilities, Hospital Auxilio Mutuo Obligation Group, Ser A, RB, MBIA Insured 300 6.250%, 07/01/24 307 Bishop Street Funds
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Hawaii Municipal Bond Fund (UNAUDITED) - ------------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Market Face Amount Value (000)/Shares (000) -------------- -------- Puerto Rico, University of Puerto Rico, Ser O, RB, MBIA Insured $ 1,500 5.750%, 06/01/19 $ 1,668 -------- 12,334 -------- TEXAS -- 3.7% Collin County, GO 860 5.000%, 02/15/21 928 Harris County, Houston Texas Sports Authority, Ser A, Special RB, MBIA Insured 5,000 5.400%, 11/15/40 756 Leander, Independent School District, GO, FGIC Insured 12,000 5.170%, 08/15/23 4,830 -------- 6,514 -------- WASHINGTON -- 1.4% Washington State, University of Washington, RB, FSA Insured 2,315 5.000%, 06/01/23 2,494 -------- TOTAL MUNICIPAL BONDS (Cost $164,859) 173,300 -------- CASH EQUIVALENTS -- 2.9% 2,599,174 Dreyfus Tax-Exempt Cash Management Fund 2,599 2,599,174 Fidelity Institutional Money Market Tax-Exempt Fund 2,599 -------- TOTAL CASH EQUIVALENTS (Cost $5,198) 5,198 -------- TOTAL INVESTMENTS (COST $170,057) -- 100.5% 178,498 -------- OTHER ASSETS AND LIABILITIES -- (0.5)% Payable for Capital Shares Redeemed (3,693) Income Distribution Payable (469) Investment Adviser Fees Payable (38) Shareholder Servicing Fees Payable (15) Administrative Fees Payable (10) Distribution Fees Payable (6) Other Assets and Liabilities, Net 3,346 -------- TOTAL OTHER ASSETS AND LIABILITIES (885) -------- NET ASSETS -- 100.0% $177,613 ======== June 30, 2005 www.bishopstreetfunds.com
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Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Value (000) -------- NET ASSETS: Fund Shares (unlimited authorization -- no par value) $167,782 Undistributed Net Investment Income 59 Accumulated Net Realized Gain on Investments 1,331 Net Unrealized Appreciation on Investments 8,441 -------- NET ASSETS $177,613 ======== NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS I ($145,743,932 / 13,213,105 SHARES) $ 11.03 ======== NET ASSET VALUE AND REDEMPTION PRICE PER SHARE -- CLASS A ($31,868,713 / 2,888,664 SHARES) $ 11.03 ======== MAXIMUM OFFERING PRICE PER SHARE -- CLASS A SHARES ($11.03 / 97.00%) $ 11.37 ========
(A) PREREFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY AMT -- ALTERNATIVE MINIMUM TAX COP -- CERTIFICATE OF PARTICIPATION ETM -- ESCROWED TO MATURITY FGIC -- FINANCIAL GUARANTEE INSURANCE CORPORATION FHA -- FEDERAL HOUSING ADMINISTRATION FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION FSA -- FINANCIAL SECURITY ASSURANCE GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION GO -- GENERAL OBLIGATION MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE RB -- REVENUE BOND SER -- SERIES XLCA -- XL CAPITAL COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 34 Money Market Fund (UNAUDITED) - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 44.5% Commercial Paper 18.2% U.S. Government Agency Obligations 15.0% Certificates of Deposit/Bank Notes 9.2% Repurchase Agreements 4.8% Collateralized Mortgage Obligations 4.3% Insurance Funding Agreements 4.0% Corporate Obligations +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS.
STATEMENT OF NET ASSETS Face Amount Value (000) (000) -------- -------- COMMERCIAL PAPER (C) -- 44.6% AUTO FINANCE -- 4.3% BMW U.S. Capital $ 8,500 3.380%, 07/01/05 $ 8,500 -------- BANKS -- 33.0% ANZ 7,500 3.076%, 07/12/05 7,493 Bank of Montreal 8,000 3.208%, 07/22/05 7,985 Danske Bank 6,000 3.275%, 08/01/05 5,983 3,200 3.243%, 08/02/05 3,191 Deutsche Bank Financial 8,500 3.274%, 07/29/05 8,479 HBOS Treasury Services 5,000 3.073%, 07/18/05 4,993 Lloyds TSB Bank 4,500 3.018%, 07/01/05 4,500 Royal Bank of Scotland 8,000 3.258%, 07/27/05 7,981 Societe Generale 8,300 3.272%, 07/06/05 8,296 UBS Finance 6,000 3.049%, 07/01/05 6,000 -------- 64,901 -------- COMPUTER HARDWARE -- 1.5% IBM 3,000 3.041%, 07/13/05 2,997 -------- June 30, 2005 www.bishopstreetfunds.com 35 Money Market Fund (UNAUDITED) - --------------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Amount Value (000) (000) -------- -------- FINANCIALS -- 5.8% General Electric Capital $ 2,500 3.073%, 07/18/05 $ 2,497 Svenska Handelsbank 5,000 3.056%, 07/05/05 4,998 Morgan Stanley 4,000 3.104%, 07/18/05 3,994 -------- 11,489 -------- TOTAL COMMERCIAL PAPER (Cost $87,887) 87,887 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 18.2% FHLMC (C) 31,900 3.148%, 07/19/05 31,850 FNMA 4,000 7.000%, 07/15/05 4,006 -------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $35,856) 35,856 -------- CERTIFICATES OF DEPOSIT/BANK NOTES -- 15.0% American Express Centurion (A) 3,500 3.280%, 02/28/06 3,500 Citigroup 5,000 3.190%, 08/16/05 5,000 Credit Suisse First Boston (A) 3,000 3.380%, 12/08/05 3,000 DEPFA Bank 5,000 3.065%, 07/14/05 5,000 Regions Bank 5,000 3.120%, 08/09/05 5,000 WFFB 8,000 3.260%, 07/11/05 8,000 -------- TOTAL CERTIFICATES OF DEPOSIT/BANK NOTES (Cost $29,500) 29,500 -------- COLLATERALIZED MORTGAGE OBLIGATIONS (A) -- 4.8% Aire Valley Mortgages, Ser 2004-1A, Cl 1A (D) 1,800 3.090%, 09/20/05 1,800 DaimlerChrysler Auto Trust, Ser 2005-B, Cl A1 (D) 3,191 3.260%, 05/08/06 3,191 Bishop Street Funds 36 Money Market Fund (UNAUDITED) - ----------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Face Amount Value (000) (000) -------- -------- COLLATERALIZED MORTGAGE OBLIGATION -- (CONTINUED) GE Commercial Equipment Financing, Ser 2004-1, Cl A1 $ 410 3.220%, 11/20/05 $ 410 GE Commerical Equipment Financing, Ser 2004-A, Cl A1 (D) 466 2.590%, 12/22/05 466 Lothian Mortgages, Ser 4A, Cl A1 (D) 2,025 3.290%, 01/24/06 2,025 Permanent Financing, Ser 7, Cl 1A 1,540 3.150%, 03/10/06 1,540 -------- TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $9,432) 9,432 -------- INSURANCE FUNDING AGREEMENTS (A)(B)(D) -- 4.3% Allstate 3,000 3.100%, 06/16/05 3,000 Monumental Life Insurance 5,500 2.830%, 07/01/05 5,500 -------- TOTAL INSURANCE FUNDING AGREEMENTS (Cost $8,500) 8,500 -------- CORPORATE OBLIGATIONS (A) -- 4.0% BANKS -- 1.8% U.S. Bancorp MTN, Ser N 3,500 3.564%, 09/16/05 3,501 -------- FINANCIALS -- 2.2% General Electric Capital 2,300 3.284%, 01/09/06 2,300 General Electric Capital MTN 2,000 3.340%, 07/17/06 2,000 -------- 4,300 -------- TOTAL CORPORATE OBLIGATIONS (Cost $7,801) 7,801 -------- REPURCHASE AGREEMENT -- 9.2% Lehman Brothers 2.830%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $18,101,423 (collateralized by a Treasury Obligation, par value $20,372,000, 18,100 0.000%, 08/18/05; total market value $20,289,508) 18,100 -------- TOTAL REPURCHASE AGREEMENT (Cost $18,100) 18,100 -------- TOTAL INVESTMENTS (COST $197,076) -- 100.1% 197,076 -------- June 30, 2005 www.bishopstreetfunds.com 37 Money Market Fund (UNAUDITED) - ------------------------------------------------------------------------------------------ STATEMENT OF NET ASSETS (CONTINUED) Value (000) ------- OTHER ASSETS AND LIABILITIES -- (0.1)% Income Distribution Payable $ (331) Investment Adviser Fees Payable (27) Administrative Fees Payable (18) Shareholder Servicing Fees Payable (15) Distribution Fees Payable (5) Other Assets and Liabilities, Net 298 -------- TOTAL OTHER ASSETS AND LIABILITIES (98) -------- NET ASSETS -- 100.0% $196,978 ======== NET ASSETS: Fund Shares (unlimited authorization -- no par value) $197,004 Distributions in Excess of Net Investment Income (1) Accumulated Net Realized Loss on Investments (25) -------- NET ASSETS $196,978 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($175,679,627 / 175,705,682 SHARES) $ 1.00 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS A ($21,298,638 / 21,298,885 SHARES) $ 1.00 ======== (A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 2005. THE MATURITY DATE SHOWN IS THE NEXT SCHEDULED RESET DATE. (B) SECURITY CONSIDERED ILLIQUID. THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2005 WAS APPROXIMATELY $8,500,000 AND REPRESENTS 4.3% OF NET ASSETS. (C) REPRESENTS THE EFFECTIVE YIELD AT THE DATE OF PURCHASE. (D) SECURITIES SOLD WITHIN THE TERMS OF PRIVATE PLACEMENT MEMORANDUM, EXEMPT FROM REGISTRATION UNDER SECTION 3A-4, 4(2) OR 144A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM OR OTHER "ACCREDITED INVESTORS." CL -- CLASS FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION MTN -- MEDIUM TERM NOTE SER -- SERIES COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 38 Treasury Money Market Fund (UNAUDITED) - ------------------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] SECTOR WEIGHTINGS+ 81.2% U.S. Treasury Obligations 18.8% Repurchase Agreements +PERCENTAGES BASED ON TOTAL INVESTMENTS. STATEMENT OF NET ASSETS Face Amount Value (000) (000) -------- -------- U.S. TREASURY OBLIGATIONS (A) -- 81.4% U.S. Treasury Bills $50,000 2.833%, 07/14/05 $ 49,949 50,000 2.971%, 08/11/05 49,837 45,000 2.919%, 09/01/05 44,775 70,000 2.962%, 09/08/05 69,605 -------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $214,166) 214,166 -------- REPURCHASE AGREEMENT -- 18.8% Lehman Brothers 2.830%, dated 06/30/05, to be repurchased on 07/01/05, repurchase price $49,603,899 (collateralized by government obligations, ranging in par value $20,651,000-$26,110,000, 2.375%-6.500%, 49,600 02/15/10-01/15/25; total market value $53,147,302) 49,600 -------- TOTAL REPURCHASE AGREEMENT (Cost $49,600) 49,600 -------- TOTAL INVESTMENTS (COST $263,766) -- 100.2% 263,766 -------- OTHER ASSETS AND LIABILITIES -- (0.2)% Income Distribution Payable (513) Investment Adviser Fees Payable (28) Administrative Fees Payable (24) Shareholder Servicing Fees Payable (21) Other Assets and Liabilities, Net 20 -------- TOTAL OTHER ASSETS AND LIABILITIES (566) -------- NET ASSETS -- 100.0% $263,200 ======== June 30, 2005 www.bishopstreetfunds.com 39 Treasury Money Market Fund (UNAUDITED) - ------------------------------------------------------------------------------------------- STATEMENT OF NET ASSETS (CONTINUED) Value (000) ------- NET ASSETS: Fund Shares (unlimited authorization -- no par value) $263,244 Undistributed Net Investment Income 10 Accumulated Net Realized Loss on Investments (54) -------- NET ASSETS $263,200 ======== NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE -- CLASS I ($263,199,753 / 263,244,979 SHARES) $ 1.00 ======== (A) REPRESENTS THE EFFECTIVE YIELD AT THE DATE OF PURCHASE. COST FIGURES ARE SHOWN WITH "000S" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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Bishop Street Funds (UNAUDITED) - ------------------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (IN THOUSANDS) Tax High Strategic Managed Grade Equity Growth Equity Income Fund Fund Fund Fund - ----------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividend Income $ 1,000 $283 $ 360 $ -- Interest Income 26 17 9 3,218 Securities Lending, Net 14 -- -- 35 - ----------------------------------------------------------------------------------------- Total Investment Income 1,040 300 369 3,253 - ----------------------------------------------------------------------------------------- EXPENSES: Investment Adviser Fees 524 324 131 396 Shareholder Servicing Fees 177 109 44 180 Administrative Fees 142 87 36 144 Distribution Fees, Class A 1 -- -- -- Transfer Agent Fees 30 16 14 29 Professional Fees 20 11 4 19 Custody Fees 8 4 2 7 Printing Fees 7 4 2 7 Trustees' Fees 6 3 1 5 Registration Fees 2 2 3 1 Miscellaneous Expenses 10 4 2 15 - ----------------------------------------------------------------------------------------- Total Expenses 927 564 239 803 - ----------------------------------------------------------------------------------------- Less Waivers: Investment Adviser Fees (50) -- (21) (86) Shareholder Servicing Fees (106) (66) (26) (108) Administrative Fees (61) (38) (15) (62) - ----------------------------------------------------------------------------------------- Total Waivers (217) (104) (62) (256) - ----------------------------------------------------------------------------------------- Total Net Expenses 710 460 177 547 - ----------------------------------------------------------------------------------------- Net Investment Income (Loss) 330 (160) 192 2,706 - ----------------------------------------------------------------------------------------- Net Realized Gain on Investments 6,726 541 428 951 Change in Unrealized Appreciation (Depreciation) on Investments (12,445) (562) (1,808) 282 - ----------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments (5,719) (21) (1,380) 1,233 - ----------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets Resulting from Operations $ (5,389) $(181) $(1,188) $3,939 =========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 42
Bishop Street Funds (UNAUDITED) - ----------------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (IN THOUSANDS) Hawaii Treasury Municipal Money Money Bond Market Market Fund Fund Fund - ----------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest Income $4,051 $2,764 $2,916 - ----------------------------------------------------------------------------------------- Total Investment Income 4,051 2,764 2,916 - ----------------------------------------------------------------------------------------- EXPENSES: Investment Adviser Fees 310 305 335 Shareholder Servicing Fees 222 254 279 Administrative Fees 177 203 223 Distribution Fees, Class A 38 27 -- Transfer Agent Fees 32 34 23 Professional Fees 22 25 26 Custody Fees 9 11 11 Printing Fees 8 9 10 Trustees' Fees 6 7 8 Registration Fees 1 2 1 Miscellaneous Expenses 27 16 32 - ----------------------------------------------------------------------------------------- Total Expenses 852 893 948 - ----------------------------------------------------------------------------------------- Less Waivers: Investment Adviser Fees (79) (117) (192) Shareholder Servicing Fees (133) (152) (168) Administrative Fees (115) (88) (97) - ----------------------------------------------------------------------------------------- Total Waivers (327) (357) (457) - ----------------------------------------------------------------------------------------- Total Net Expenses 525 536 491 - ----------------------------------------------------------------------------------------- Net Investment Income 3,526 2,228 2,425 - ----------------------------------------------------------------------------------------- Net Realized Gain (Loss) on Investments 1,306 (1) (7) Change in Unrealized Depreciation on Investments (1,123) -- -- - ----------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments 183 (1) (7) - ----------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations $3,709 $ 2,227 $2,418 =========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2005 www.bishopstreetfunds.com 43
Bishop Street Funds - ----------------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2004 (IN THOUSANDS) Equity Fund - ----------------------------------------------------------------------------------------- 2005 2004 - ----------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 330 $ 1,039 Net Realized Gain on Investments 6,726 2,061 Change in Unrealized Appreciation (Depreciation) on Investments (12,445) 2,789 - ----------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets Resulting from Operations (5,389) 5,889 - ----------------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS: Net Investment Income: Class I Shares (335) (1,043) Class A Shares (1) (6) - ----------------------------------------------------------------------------------------- Total Dividends (336) (1,049) - ----------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 4,925 38,484 Reinvestments of Cash Distributions 246 711 Proceeds from Shares Issued in Connection with Reclassification from Class A Shares(1) 1,428 -- Cost of Shares Redeemed (63,722) (30,690) - ----------------------------------------------------------------------------------------- Total Class I Capital Share Transactions (57,123) 8,505 - ----------------------------------------------------------------------------------------- Class A Shares: Proceeds from Shares Issued 2 144 Reinvestments of Cash Distributions -- 3 Value of Shares Liquidated in Connection with Reclassification to Class I Shares(1) (1,428) -- Cost of Shares Redeemed (99) (161) - ----------------------------------------------------------------------------------------- Total Class A Capital Share Transactions (1,525) (14) - ----------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets From Capital Share Transactions (58,648) 8,491 - ----------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets (64,373) 13,331 - ----------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 171,296 157,965 - ----------------------------------------------------------------------------------------- End of Period $106,923 $171,296 ========================================================================================= Distributions in Excess of Net Investment Income $ (6) $ -- ========================================================================================= SHARE TRANSACTIONS: Class I Shares: Shares Issued 517 4,055 Shares Issued in Lieu of Cash Distributions 26 74 Shares Issued in Connection with Reclassification from Class A Shares(1) 155 -- Shares Redeemed (6,712) (3,249) - ----------------------------------------------------------------------------------------- Total Class I Share Transactions (6,014) 880 - ----------------------------------------------------------------------------------------- Class A Shares: Shares Issued -- 15 Shares Issued in Lieu of Cash Distributions -- -- Value of Shares Liquidated in Connection with Reclassification to Class I Shares(1) (156) -- Shares Redeemed (10) (17) - ----------------------------------------------------------------------------------------- Total Class A Share Transactions (166) (2) - ----------------------------------------------------------------------------------------- Net Increase (Decrease) in Shares Outstanding from Share Transactions (6,180) 878 ========================================================================================= (1) ON APRIL 29, 2005, CLASS A SHARES OF THE BISHOP STREET EQUITY FUND WERE RECLASSIFIED AS CLASS I SHARES. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR ADDITIONAL INFORMATION. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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Bishop Street Funds - ------------------------------------------------------------------------------------------------ STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2004 (IN THOUSANDS) Strategic Tax Managed Growth Fund Equity Fund - ----------------------------------------------------------------------------------------- 2005 2004 2005 2004 - ----------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income (Loss) $ (160) $ (217) $ 192 $ 253 Net Realized Gain on Investments 541 1,549 428 1,216 Change in Unrealized Appreciation (Depreciation) on Investments (562) 5,453 (1,808) 706 - ---------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets Resulting from Operations (181) 6,785 (1,188) 2,175 - ---------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares -- -- (192) (254 Capital Gains: Class I Shares -- -- -- (1,183 - ---------------------------------------------------------------------------------------- Total Dividends and Distributions -- -- (192) (1,437 - ---------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 25,282 34,231 6,918 3,777 Reinvestments of Cash Distributions -- -- 14 80 Cost of Shares Redeemed (4,364) (8,693) (4,537) (3,828 - ---------------------------------------------------------------------------------------- Net Increase in Net Assets From Capital Share Transactions 20,918 25,538 2,395 29 - ---------------------------------------------------------------------------------------- Total Increase in Net Assets 20,737 32,323 1,015 767 - ---------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 79,168 46,845 35,575 34,808 - ---------------------------------------------------------------------------------------- End of Period $99,905 $79,168 $36,590 $35,575 ======================================================================================== Accumulated Net Investment Loss $ (175) $ (15) $ -- $ -- ======================================================================================== SHARE TRANSACTIONS: Class I Shares: Shares Issued 1,990 2,842 579 311 Shares Issued in Lieu of Cash Distributions -- -- 1 7 Shares Redeemed (341) (715) (378) (316) - ---------------------------------------------------------------------------------------- Net Increase in Shares Outstanding from Share Transactions 1,649 2,127 202 2 ========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2005 www.bishopstreetfunds.com 45
Bishop Street Funds - ----------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2004 (IN THOUSANDS) High Grade Hawaii Municipal Income Fund Bond Fund - ---------------------------------------------------------------------------------------- 2005 2004 2005 2004 - ---------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 2,706 $ 5,305 $ 3,526 $ 7,014 Net Realized Gain on Investments 951 837 1,306 1,678 Change in Unrealized Appreciation (Depreciation) on Investments 282 (1,214) (1,123) (2,892) - ---------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations 3,939 4,928 3,709 5,800 - ---------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares (2,710) (5,288) (2,936) (5,870) Class A Shares (3) (10) (576) (1,133) Capital Gains: Class I Shares -- (546) -- (1,540) Class A Shares -- (1) -- (317) - ---------------------------------------------------------------------------------------- Total Dividends and Distributions (2,713) (5,845) (3,512) (8,860) - ---------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 10,262 40,169 8,556 14,569 Reinvestments of Cash Distributions 1,427 2,530 448 1,202 Proceeds from Shares Issued in Connection with Reclassification from Class A Shares(1) 310 -- -- -- Cost of Shares Redeemed (24,662) (19,460) (11,994) (15,048) - ---------------------------------------------------------------------------------------- Total Class I Capital Share Transactions (12,663) 23,239 (2,990) 723 - ---------------------------------------------------------------------------------------- Class A Shares: Proceeds from Shares Issued 96 2 1,395 2,467 Reinvestments of Cash Distributions 2 7 229 680 Value of Shares Liquidated in Connection with Reclassification to Class I Shares(1) (310) -- -- -- Cost of Shares Redeemed (14) (57) (277) (3,099) - ---------------------------------------------------------------------------------------- Total Class A Capital Share Transactions (226) (48) 1,347 48 - ---------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Capital Share Transactions (12,889) 23,191 (1,643) 771 - ---------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets (11,663) 22,274 (1,446) (2,289) - ---------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 157,395 135,121 179,059 181,348 - ---------------------------------------------------------------------------------------- End of Period $145,732 $157,395 $177,613 $179,059 ======================================================================================== Undistributed Net Investment Income $ 2 $ 9 $ 59 $ 45 ======================================================================================== SHARE TRANSACTIONS: Class I Shares: Shares Issued 995 3,890 779 1,310 Shares Issued in Lieu of Cash Distributions 138 244 41 108 Shares Issued in Connection with Reclassification from Class A Shares(1) 30 -- -- -- Shares Redeemed (2,387) (1,881) (1,089) (1,356) - ---------------------------------------------------------------------------------------- Total Class I Share Transactions (1,224) 2,253 (269) 62 - ---------------------------------------------------------------------------------------- Class A Shares: Shares Issued 10 -- 127 221 Shares Issued in Lieu of Cash Distributions -- 1 21 61 Value of Shares Liquidated in Connection with Reclassification to Class I Shares(1) (30) -- -- -- Shares Redeemed (2) (6) (25) (280) - ---------------------------------------------------------------------------------------- Total Class A Share Transactions (22) (5) 123 2 - ---------------------------------------------------------------------------------------- Net Increase (Decrease) in Shares Outstanding from Share Transactions (1,246) 2,248 (146) 64 ======================================================================================== (1) ON APRIL 29, 2005, CLASS A SHARES OF THE BISHOP STREET HIGH GRADE INCOME FUND WERE RECLASSIFIED AS CLASS I SHARES. SEE NOTE 1 IN NOTES TO FINANCIAL STATEMENTS FOR ADDITIONAL INFORMATION. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 46
Bishop Street Funds - ----------------------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2004 (IN THOUSANDS) Money Market Treasury Money Fund Market Fund - ---------------------------------------------------------------------------------------- 2005 2004 2005 2004 - ---------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 2,228 $ 2,031 $ 2,425 $ 2,158 Net Realized Loss on Investments (1) (2) (7) (46) - ---------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations 2,227 2,029 2,418 2,112 - ---------------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS: Net Investment Income: Class I Shares (2,010) (1,908) (2,425) (2,173) Class A Shares (219) (122) -- -- - ---------------------------------------------------------------------------------------- Total Dividends (2,229) (2,030) (2,425) (2,173) - ---------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: (ALL AT $1.00 PER SHARE): Class I Shares: Proceeds from Shares Issued 214,569 443,764 299,865 501,131 Reinvestments of Cash Distributions 62 83 6 6 Cost of Shares Redeemed (206,860) (458,078) (244,817)(563,288) - ---------------------------------------------------------------------------------------- Total Class I Capital Share Transactions 7,771 (14,231) 55,054 (62,151) - ---------------------------------------------------------------------------------------- Class A Shares: Proceeds from Shares Issued 48,157 47,431 -- -- Reinvestments of Cash Distributions 242 99 -- -- Cost of Shares Redeemed (44,924) (47,170) -- -- - ---------------------------------------------------------------------------------------- Total Class A Capital Share Transactions 3,475 360 -- -- - ---------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Capital Share Transactions 11,246 (13,871) 55,054 (62,151) - ---------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets 11,244 (13,872) 55,047 (62,212) - ---------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 185,734 199,606 208,153 270,365 - ---------------------------------------------------------------------------------------- End of Period $ 196,978 $185,734 $ 263,200 $208,153 ======================================================================================== Undistributed (Distributions in Excess of) Net Investment Income $ (1) $ -- $ 10 $ 10 ========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2005 www.bishopstreetfunds.com 47 Bishop Street Funds - -------------------------------------------------------------------------------- Financial Highlights FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
DIVIDENDS AND INVESTMENT ACTIVITIES DISTRIBUTIONS FROM ------------------------------- --------------------- TOTAL NET ASSET NET REALIZED INVESTMENT TOTAL VALUE, NET AND UNREALIZED ACTIVITIES NET DIVIDENDS BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND OF PERIOD INCOME (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS --------- ------------- -------------- ---------- ---------- ------- --------------- - ----------- EQUITY FUND - ----------- CLASS I SHARES: 2005(1) $ 9.78 $ 0.02 $(0.36) $(0.34) $(0.02) $ -- $(0.02) 2004(1) 9.49 0.06 0.29 0.35 (0.06) -- (0.06) 2003(1) 7.53 0.04 1.96 2.00 (0.04) -- (0.04) 2002(1) 10.08 0.02 (2.55) (2.53) (0.02) -- (0.02) 2001 13.55 -- (3.47) (3.47) -- -- -- 2000 17.88 -- (2.77) (2.77) -- (1.56) (1.56) - --------------------- STRATEGIC GROWTH FUND - --------------------- CLASS I SHARES: 2005(1) $13.08 $(0.02) $(0.09)(4) $(0.11) $ -- $ -- $ -- 2004(1) 11.93 (0.05) 1.20 1.15 -- -- -- 2003(1) 8.64 (0.06) 3.35 3.29 -- -- -- 2002(2) 10.00 (0.03) (1.33) (1.36) -- -- -- - ----------------------- TAX MANAGED EQUITY FUND - ----------------------- CLASS I SHARES: 2005(1) $12.32 $ 0.06 $(0.48) $(0.42) $(0.06) $ -- $(0.06) 2004(1) 12.06 0.09 0.68 0.77 (0.09) (0.42) (0.51) 2003(1) 9.83 0.07 2.25 2.32 (0.07) (0.02) (0.09) 2002(3) 10.00 0.01 (0.17) (0.16) (0.01) -- (0.01) - --------------------- HIGH GRADEINCOME FUND - --------------------- CLASS I SHARES: 2005(1) $10.33 $ 0.19 $ 0.09 $ 0.28 $(0.19) $ -- $(0.19) 2004(1) 10.40 0.38 (0.03) 0.35 (0.38) (0.04) (0.42) 2003(1) 10.67 0.42 (0.07) 0.35 (0.42) (0.20) (0.62) 2002 10.00 0.46 0.67 1.13 (0.46) -- (0.46) 2001 9.81 0.50 0.19 0.69 (0.50) -- (0.50) 2000 9.39 0.52 0.42 0.94 (0.52) -- (0.52) + TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. * ANNUALIZED (1) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES. (2) COMMENCED OPERATIONS ON JULY 1, 2002. (3) COMMENCED OPERATIONS ON NOVEMBER 13, 2002. (4) THE AMOUNT SHOWN FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD DOES NOT ACCORD WITH THE AGGREGATE NET LOSSES ON INVESTMENTS FOR THAT PERIOD BECAUSE OF THE SALES AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUE OF THE INVESTMENTS OF THE FUND.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. Bishop Street Funds 48
- ------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES RATIO OF NET NET ASSET NET ASSETS, EXPENSES TO TO AVERAGE INVESTMENT VALUE, END OF AVERAGE NET ASSETS INCOME (LOSS) PORTFOLIO END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE TURNOVER PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS RATE --------- ------- ----------- ----------- ----------------- ------------- --------- - ----------- EQUITY FUND - ----------- CLASS I SHARES: 2005(1) $ 9.42 (3.43)% $106,923 1.00%* 1.31%* 0.47%* 16% 2004(1) 9.78 3.72 169,685 1.00 1.30 0.67 42 2003(1) 9.49 26.62 156,381 1.00 1.28 0.48 43 2002(1) 7.53 (25.06) 129,981 1.00 1.27 0.24 60 2001 10.08 (25.61) 216,412 1.00 1.27 -- 86 2000 13.55 (16.20) 300,565 1.00 1.28 (0.23) 52 - --------------------- STRATEGIC GROWTH FUND - --------------------- CLASS I SHARES: 2005(1) $12.97 (0.84)% $ 99,905 1.05%* 1.29%* (0.37)%* 25% 2004(1) 13.08 9.64 79,168 1.05 1.29 (0.38) 59 2003(1) 11.93 38.08 46,845 1.17 1.41 (0.57) 59 2002(2) 8.64 (13.60) 19,899 1.25* 1.67* (0.61)* 50 - ----------------------- TAX MANAGED EQUITY FUND - ----------------------- CLASS I SHARES: 2005(1) $11.84 (3.38)% $ 36,590 1.00%* 1.35%* 1.08%* 12% 2004(1) 12.32 6.40 35,575 1.00 1.34 0.74 36 2003(1) 12.06 23.66 34,808 1.00 1.43 0.68 34 2002(3) 9.83 (1.57) 24,635 1.00* 1.50* 0.99* 1 - --------------------- HIGH GRADEINCOME FUND - --------------------- CLASS I SHARES: 2005(1) $10.42 2.77% $145,732 0.76%* 1.12%* 3.76%* 19% 2004(1) 10.33 3.41 157,170 0.76 1.11 3.68 45 2003(1) 10.40 3.31 134,845 0.76 1.10 3.91 48 2002 10.67 11.54 138,516 0.76 1.09 4.45 19 2001 10.00 7.16 124,416 0.76 1.09 5.02 89 2000 9.81 10.25 127,888 0.77 1.14 5.41 88
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS June 30, 2005 www.bishopstreetfunds.com 49 Bishop Street Funds - -------------------------------------------------------------------------------- Financial Highlights FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2005 (UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
DIVIDENDS AND INVESTMENT ACTIVITIES DISTRIBUTIONS FROM ------------------------------- --------------------- TOTAL NET ASSET NET REALIZED INVESTMENT TOTAL VALUE, NET AND UNREALIZED ACTIVITIES NET DIVIDENDS BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND OF PERIOD INCOME (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS --------- ------------- -------------- ---------- ---------- ------- --------------- - -------------------------- HAWAII MUNICIPAL BOND FUND - -------------------------- CLASS I SHARES: 2005(2) $11.02 $ 0.22 $ 0.01 $ 0.23 $(0.22) $ -- $(0.22) 2004(2) 11.21 0.44 (0.07) 0.37 (0.44) (0.12) (0.56) 2003(2) 11.20 0.45 0.13 0.58 (0.45) (0.12) (0.57) 2002 10.66 0.47 0.57 1.04 (0.46) (0.04) (0.50) 2001 10.70 0.49 (0.04) 0.45 (0.49) -- (0.49) 2000 9.98 0.50 0.72 1.22 (0.50) -- (0.50) CLASS A SHARES: 2005(2) $11.02 $ 0.21 $ 0.01 $ 0.22 $(0.21) $ -- $(0.21) 2004(2) 11.21 0.41 (0.07) 0.34 (0.41) (0.12) (0.53) 2003(2) 11.20 0.42 0.13 0.55 (0.42) (0.12) (0.54) 2002 10.66 0.44 0.58 1.02 (0.44) (0.04) (0.48) 2001 10.69 0.46 (0.02) 0.44 (0.47) -- (0.47) 2000 9.97 0.46 0.73 1.19 (0.47) -- (0.47) - ----------------- MONEY MARKET FUND - ----------------- CLASS I SHARES: 2005(2) $ 1.00 $ 0.01 $ -- $ 0.01 $(0.01) $ -- $(0.01) 2004(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2003(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2001 1.00 0.04 -- 0.04 (0.04) -- (0.04) 2000 1.00 0.06 -- 0.06 (0.06) -- (0.06) CLASS A SHARES: 2005(2) $ 1.00 $ 0.01 $ -- $ 0.01 $(0.01) $ -- $(0.01) 2004(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2003(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2001(1) 1.00 0.02 -- 0.02 (0.02) -- (0.02) - -------------------------- TREASURY MONEY MARKET FUND - -------------------------- CLASS I SHARES: 2005(2) $ 1.00 $ 0.01 $ -- $ 0.01 $(0.01) $ -- $(0.01) 2004(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2003(2) 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) 2001 1.00 0.04 -- 0.04 (0.04) -- (0.04) 2000 1.00 0.06 -- 0.06 (0.06) -- (0.06) + TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. TOTAL RETURN DOES NOT REFLECT THE SALES CHARGE ON CLASS A SHARES. RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. * ANNUALIZED (1) COMMENCED OPERATIONS ON MAY 1, 2001. (2) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. Bishop Street Funds 50 - ------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF EXPENSES RATIO OF NET NET ASSET NET ASSETS, EXPENSES TO TO AVERAGE INVESTMENT VALUE, END OF AVERAGE NET ASSETS INCOME (LOSS) PORTFOLIO END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE TURNOVER PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS RATE --------- ------- ----------- ----------- ----------------- ------------- --------- - -------------------------- HAWAII MUNICIPAL BOND FUND - -------------------------- CLASS I SHARES: 2005(2) $11.03 2.09% $145,744 0.55%* 0.92%* 4.02%* 21% 2004(2) 11.02 3.36 148,575 0.55 0.92 3.97 40 2003(2) 11.21 5.27 150,373 0.45 0.91 4.01 38 2002 11.20 10.02 150,287 0.45 0.89 4.23 26 2001 10.66 4.24 137,206 0.45 0.88 4.54 4 2000 10.70 12.61 134,901 0.44 0.92 4.89 19 CLASS A SHARES: 2005(2) $11.03 1.97% 31,869 0.80%* 1.17%* 3.77%* 21% 2004(2) 11.02 3.10 30,484 0.80 1.17 3.72 40 2003(2) 11.21 5.01 30,975 0.70 1.16 3.76 38 2002 11.20 9.75 33,456 0.70 1.14 3.98 26 2001 10.66 4.13 30,499 0.70 1.13 4.29 4 2000 10.69 12.34 19,951 0.69 1.17 4.63 19 - ----------------- MONEY MARKET FUND - ----------------- CLASS I SHARES: 2005(2) $ 1.00 1.11% $175,679 0.50%* 0.85%* 2.22%* n/a 2004(2) 1.00 0.92 167,910 0.50 0.84 0.90 n/a 2003(2) 1.00 0.76 182,166 0.50 0.83 0.76 n/a 2002 1.00 1.34 238,498 0.50 0.81 1.33 n/a 2001 1.00 3.86 309,935 0.50 0.82 3.71 n/a 2000 1.00 6.13 305,678 0.50 0.83 5.95 n/a CLASS A SHARES: 2005(2) $ 1.00 0.99% $ 21,299 0.75%* 1.10%* 2.00%* n/a 2004(2) 1.00 0.67 17,824 0.75 1.09 0.65 n/a 2003(2) 1.00 0.50 17,440 0.75 1.08 0.41 n/a 2002 1.00 1.08 188 0.75 1.06 1.10 n/a 2001(1) 1.00 1.96 500 0.75* 1.07* 2.66* n/a - -------------------------- TREASURY MONEY MARKET FUND - -------------------------- CLASS I SHARES: 2005(2) $ 1.00 1.07% $263,200 0.44%* 0.85%* 2.17%* n/a 2004(2) 1.00 0.91 208,153 0.44 0.84 0.89 n/a 2003(2) 1.00 0.74 270,365 0.44 0.83 0.75 n/a 2002 1.00 1.29 331,678 0.44 0.83 1.28 n/a 2001 1.00 3.68 372,422 0.44 0.85 3.68 n/a 2000 1.00 5.89 455,612 0.44 0.82 5.73 n/a THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2005 www.bishopstreetfunds.com
51 Bishop Street Funds - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION The Bishop Street Funds (the "Trust") are registered under the Investment Company Act of 1940, as amended, as an open-end, management investment company. The Bishop Street Funds consist of a series of seven funds (each a Fund, collectively the "Funds") which includes the Equity Fund, Strategic Growth Fund, Tax Managed Equity Fund, High Grade Income Fund, Hawaii Municipal Bond Fund, Money Market Fund and the Treasury Money Market Fund. Class A Shares of the Hawaii Municipal Bond Fund are subject to a sales load as disclosed in the prospectus. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectus provides a description of each Fund's investment objectives, policies and strategies. Prior to April 29, 2005, the Equity Fund and High Grade Income Fund offered Class A Shares and Class I Shares. Effective April 29, 2005 Class A Shares were fully liquidated and reclassified as Class I Shares. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Trust. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS 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 amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. SECURITY VALUATION The Funds' investments in equity securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ) are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded, or, if there is no such reported sale, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. Prices for most securities held in the Funds are provided daily by recognized Bishop Street Funds 52 - -------------------------------------------------------------------------------- independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Funds' Board of Trustees (the "Board"). The Funds' Fair Value Procedures are implemented through a Fair Value Pricing Committee (the "Committee") designated by the Funds' Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security's primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. Investment securities held by the Money Market and Treasury Money Market Funds are stated at amortized cost, which approximates market value. Under this valuation method, purchase discounts and premiums are accreted and amortized ratably to maturity and are included in interest income. SECURITY TRANSACTIONS AND INVESTMENT INCOME Security transactions are accounted for on trade date. Costs used in determining net realized capital gains and losses on the sale of securities are on the basis of the specific identification method. Interest income is recorded on the accrual basis; dividend income is recorded on ex-dividend date. DISCOUNTS AND PREMIUMS Discounts and premiums are accreted or amortized over the life of each security and are recorded as interest income. The Equity, Strategic Growth, Tax Managed Equity, High Grade Income and Hawaii Municipal Bond Funds use the scientific interest method, which approximates the effective interest method. The Money Market and Treasury Money Market Funds use the straight line method. REPURCHASE AGREEMENTS Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements are repurchased. The Funds may also invest in tri-party repurchase agreements. Securities held as collateral for tri-party repurchase agreements are maintained in a segregated account by the broker's custodian bank. Provisions of repurchase agreements and procedures adopted by the Adviser (see Note 3) monitor that the market value of the collateral is sufficient in the event of default by the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters an insolvency proceeding, realization of the collateral by the Fund may be delayed or limited. June 30, 2005 www.bishopstreetfunds.com 53 Bishop Street Funds - -------------------------------------------------------------------------------- CLASSES Class-specific expenses are borne by that class of shares. Income, realized and unrealized gains/losses and non class-specific expenses are allocated to the respective class on the basis of relative daily net assets. EXPENSES Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses of the Funds are prorated to the Funds on the basis of relative net assets. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income are declared daily and paid on a monthly basis for the High Grade Income, Hawaii Municipal Bond, Money Market and Treasury Money Market Funds. The Equity, Strategic Growth and Tax Managed Equity Funds declare and pay dividends from any net investment income on a quarterly basis. Any net realized capital gains will be distributed at least annually for all Funds. Distributions to shareholders are recorded on the ex-dividend date. ILLIQUID SECURITIES Valuations of illiquid securities may differ significantly from the values that would have been used had an active market value for these securities existed. 3. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENT Investment advisory services are provided to the Funds by Bishop Street Capital Management (the "Adviser"). The Adviser is entitled to receive an annual fee of 0.74% of the average daily net assets of the Equity, Strategic Growth and the Tax Managed Equity Funds, 0.55% of the average daily net assets of the High Grade Income Fund, 0.35% of the average daily net assets of the Hawaii Municipal Bond Fund, and 0.30% of the average daily net assets of the Money Market and Treasury Money Market Funds (collectively, the "Money Market Funds"). The Adviser has voluntarily agreed to waive a portion of its advisory fee to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. The voluntary expense limitations are as follows: Equity Fund (Class I) 1.00%, Strategic Growth Fund (Class I) 1.05%, Tax Managed Equity Fund (Class I) 1.00%, High Grade Income Fund (Class I) 0.76%, Hawaii Municipal Bond Fund (Class I) 0.55%, Hawaii Municipal Bond Fund (Class A) 0.80%, Money Market Fund (Class I) 0.50%, Money Market Fund (Class A) 0.75% and Treasury Money Market Fund (Class I) 0.44%. BNP Paribas Asset Management, Inc. ("BNP PAM") serves as the investment sub-adviser for the Strategic Growth Fund, pursuant to a sub-adviser agreement. BNP PAM is entitled to receive from the Adviser a fee, computed daily and paid monthly, at the annual rate of 0.37% of the average daily net assets of the Strategic Growth Fund. Bishop Street Funds 54 - -------------------------------------------------------------------------------- Fisher, Francis, Trees & Watts ("FFTW") serves as the investment sub-adviser for the Money Market Funds, pursuant to a sub-adviser agreement dated July 1, 2005, as approved by shareholders on August 15, 2005. FFTW is entitled to receive from the Adviser a fee, computed daily and paid monthly, at the annual rate of 0.060% of the average daily net assets of the Money Market Funds up to $500 million and 0.020% of the average daily net assets of the Money Market Funds in excess of $500 million. Union Bank of California, N.A. acts as custodian (the "Custodian") for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased or sold by the Funds. 4. ADMINISTRATIVE, TRANSFER AGENT AND DISTRIBUTION SERVICES Pursuant to an administration agreement dated January 27, 1995, (the "Agreement") SEI Investments Global Funds Services ("GFS"), a wholly owned subsidiary of SEI Investments Company, acts as the Trust's Administrator. Under the terms of the Agreement, GFS is entitled to receive an annual fee of 0.20% of the average daily net assets of the Funds. GFS has voluntarily agreed to waive a portion of its fee in order to limit operating expenses, as disclosed in the Statements of Operations. Pursuant to an agreement dated January 30, 1995, DST Systems, Inc. ("DST") acts as the Transfer Agent of the Trust. As such, DST provides transfer agency, dividend disbursing and shareholder services to the Trust. SEI Investments Distribution Co. ("SIDCO"), a wholly owned subsidiary of SEI Investments Company, acts as the Trust's Distributor pursuant to a distribution agreement dated June 10, 1999. The Funds have adopted a Distribution Plan (the "Plan") on behalf of Class A Shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan provides that Class A Shares will bear the cost of their distribution expenses. SIDCO, as compensation for its services under the Plan, receives a distribution fee, computed daily and payable monthly, of 0.25% of the average daily net assets attributable to each Fund's Class A Shares. The Trust has adopted and entered into a shareholder service plan and agreement with SIDCO. Each Fund pays to SIDCO a shareholder servicing fee at an annual rate of 0.25% of the average daily net asset value of all shares of each Fund, which is computed daily and paid monthly. Under the shareholder service plan, SIDCO may perform, or may compensate other service providers for performing various shareholder and administrative services. SIDCO may also retain as profit any difference between the fee it receives and amount it pays to third parties. For the period, SIDCO paid the entire amount of fees received under the shareholder service plan to First Hawaiian Bank, the Parent Company of Bishop Street Capital Management, for shareholder services performed for the Funds. SIDCO has voluntarily agreed to waive a portion of its fee in order to limit operating expenses, as disclosed in the Statements of Operations. June 30, 2005 www.bishopstreetfunds.com 55 Bishop Street Funds - -------------------------------------------------------------------------------- Certain ministerial officers of the Trust are also ministerial officers of the Administrator. Such officers are paid no fees by the Trust. 5. SECURITIES LENDING Each Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Board. These loans may not exceed 331/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser, sub-adviser or their affiliates unless it has applied for and received specific authority to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash, letters of credit or U.S. Government securities, and the collateral will be maintained in an amount equal to at least 100% of the current market value of the loaned securities by marking to market daily, although the borrower will be required to deliver collateral of 102% of the market value of borrowed securities for domestic and foreign securities, respectively. Although the risk of lending is mitigated by the collateral, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return them. 6. INVESTMENT TRANSACTIONS The cost of security purchases and the proceeds from the sale and maturities of securities, other than temporary cash investments for the six-month period ended June 30, 2005 are presented below for the Funds.
Strategic Tax High Grade Hawaii Equity Growth Managed Income Municipal Fund Fund Equity Fund Fund Bond Fund (000) (000) (000) (000) (000) ------ --------- ----------- ---------- --------- Purchases U.S. Government Securities $ -- $ -- $ -- $12,754 $ -- Other 22,500 41,621 6,447 12,592 37,054 Sales and Maturities U.S. Government Securities $ -- $ -- $ -- $19,635 $ -- Other 79,996 21,968 4,288 22,733 38,619
7. FEDERAL TAX INFORMATION It is each Fund's intention to continue to qualify as a regulated investment company for federal income tax purposes under Subchapter M of the Internal Revenue Code, as amended, and to distribute a majority of its taxable income and net capital gains. Accordingly, no pro- Bishop Street Funds 56 - -------------------------------------------------------------------------------- vision for federal income taxes is required. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for the reporting period may differ from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. The tax character of dividends and distributions declared during the years ended December 31, 2004 and December 31, 2003 were as follows:
Ordinary Tax Exempt Long-Term Income Income Capital Gain Total (000) (000) (000) (000) --------- ---------- ------------ ------- Equity Fund 2004 $1,049 $ -- $ -- $1,049 2003 653 -- -- 653 Strategic Growth Fund 2004 $ -- $ -- $ -- $ -- 2003 -- -- -- -- Tax Managed Equity Fund 2004 $ 311 $ -- $1,126 $1,437 2003 250 -- -- 250 High Grade Income Fund 2004 $5,298 $ -- $ 547 $5,845 2003 5,273 -- 2,577 7,850 Hawaii Municipal Bond Fund 2004 $ 71 $7,003 $1,786 $8,860 2003 14 7,326 1,872 9,212 Money Market Fund 2004 $2,030 $ -- $ -- $2,030 2003 1,740 -- -- 1,740 Treasury Money Market Fund 2004 $2,173 $ -- $ -- $2,173 2003 2,386 -- -- 2,386
June 30, 2005 www.bishopstreetfunds.com 57 Bishop Street Funds - -------------------------------------------------------------------------------- As of December 31, 2004, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:
Treasury Strategic Tax High Grade Hawaii Money Money Equity Growth Managed Income Municipal Market Market Fund Fund Equity Fund Fund Bond Fund Fund Fund (000) (000) (000) (000) (000) (000) (000) ------ --------- ----------- ---------- --------- ------- -------- Undistributed ordinary income $ -- $ -- $ 14 $ 654 $ -- $ -- $ 9 Undistributed tax exempt income -- -- -- -- 1 -- -- Undistributed long-term capital gain in -- 368 49 108 25 -- -- Capital loss carryforward expiring: Dec. 2005 -- -- -- -- -- (2) -- Dec. 2008 -- -- -- -- -- (2) -- Dec. 2009 (36,271) -- -- -- -- (18) -- Dec. 2010 (25,686) -- -- -- -- -- -- Dec. 2011 (1,697) -- -- -- -- -- -- Dec. 2012 -- -- -- -- -- -- (27) Post-October Losses -- -- -- -- -- (2) (19) Other Temporary Differences -- (16) (15) (486) 44 -- -- Unrealized appreciation 18,694 13,508 6,799 4,371 9,564 -- --
For Federal income tax purposes, capital loss carryforwards represent realized losses of the Funds that may be carried forward for a maximum period of eight years and applied against future capital gains. During the year ended December 31, 2004 the Equity Fund, Strategic Growth Fund, and the Money Market Fund, utilized capital loss carryforwards of $1,987,036, $1,048,930 and $442, respectively, to offset realized capital gains. Post-October losses represent losses realized on investment transactions from November 1, 2003 through December 31, 2004 that, in accordance with Federal income tax regulations the Funds have elected to defer and treat as having arisen in the following fiscal year. Bishop Street Funds 58 - -------------------------------------------------------------------------------- The aggregate gross unrealized appreciation and depreciation of securities held by the Equity, Strategic Growth, Tax Managed Equity, High Grade Income, and Hawaii Municipal Bond Funds for Federal income tax purposes at June 30, 2005 were as follows:
Strategic Tax High Grade Hawaii Equity Growth Managed Income Municipal Fund Fund Equity Fund Fund Bond Fund (000) (000) (000) (000) (000) ------- --------- ----------- ---------- --------- Federal Tax Cost $113,884 $86,620 $30,838 $184,723 $169,980 -------- ------- ------- -------- -------- Gross Unrealized Appreciation 13,239 15,979 6,102 5,414 8,579 Gross Unrealized Depreciation (7,315) (3,088) (1,081) (669) (61) -------- ------- ------- -------- -------- Net Unrealized Appreciation $ 5,924 $12,891 $ 5,021 $ 4,745 $ 8,518 ======== ======= ======= ======== ========
8. CONCENTRATION OF CREDIT RISK The Hawaii Municipal Bond Fund invests primarily in debt instruments in the state of Hawaii. The issuers' ability to meet their obligations may be affected by economic developments in that state. 9. OTHER In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claim is considered remote. 10. SUBSEQUENTEVENT At a special meeting held on April 7, 2005, the Board of the Bishop Street Funds unanimously voted to change the name of the Equity Fund to the Large Cap Growth Fund. Effective July 1, 2005, all references to the "Equity Fund" are hereby replaced with "Large Cap Growth Fund." June 30, 2005 www.bishopstreetfunds.com 59 Bishop Street Funds - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES (UNAUDITED) All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from a mutual fund's gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the mutual fund's average net assets; this percentage is known as the mutual fund's expense ratio. The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table on the next page illustrates your Fund's costs in two ways: o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return. You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under "Expenses Paid During Period." o HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expenses Paid During Period" column with those that appear in the same charts in the shareholder reports for other funds. NOTE: Because the return is set at 5% for comparison purposes -- NOT your Fund's actual return -- the account values shown may not apply to your specific investment. Bishop Street Funds 60 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------ Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During 1/1/05 6/30/05 Ratios Period* - ------------------------------------------------------------------------------------------ EQUITY FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $ 965.70 1.00% $4.87 HYPOTHETICAL 5% RETURN 1,000.00 1,019.84 1.00 5.01 - ------------------------------------------------------------------------------------------ STRATEGIC GROWTH FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $ 991.60 1.05% $5.18 HYPOTHETICAL 5% RETURN 1,000.00 1,019.59 1.05 5.26 - ------------------------------------------------------------------------------------------ TAX MANAGED EQUITY FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $ 966.20 1.00% $4.88 HYPOTHETICAL 5% RETURN 1,000.00 1,019.84 1.00 5.01 - ------------------------------------------------------------------------------------------ HIGH GRADE INCOME FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,027.70 0.76% $3.82 HYPOTHETICAL 5% RETURN 1,000.00 1,021.03 0.76 3.81 - ------------------------------------------------------------------------------------------ HAWAII MUNICIPAL BOND FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,020.90 0.55% $2.76 HYPOTHETICAL 5% RETURN 1,000.00 1,022.07 0.55 2.76 - ------------------------------------------------------------------------------------------ HAWAII MUNICIPAL BOND FUND -- CLASS A - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,019.70 0.80% $4.01 HYPOTHETICAL 5% RETURN 1,000.00 1,020.83 0.80 4.01 - ------------------------------------------------------------------------------------------ MONEY MARKET FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,011.10 0.50% $2.49 HYPOTHETICAL 5% RETURN 1,000.00 1,022.32 0.50 2.51 - ------------------------------------------------------------------------------------------ MONEY MARKET FUND -- CLASS A - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,009.90 0.75% $3.74 HYPOTHETICAL 5% RETURN 1,000.00 1,021.08 0.75 3.76 - ------------------------------------------------------------------------------------------ TREASURY MONEY MARKET FUND -- CLASS I - ------------------------------------------------------------------------------------------ ACTUAL FUND RETURN $1,000.00 $1,010.70 0.44% $2.19 HYPOTHETICAL 5% RETURN 1,000.00 1,022.61 0.44 2.21 - ------------------------------------------------------------------------------------------ *Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
June 30, 2005 www.bishopstreetfunds.com 61 Bishop Street Funds - -------------------------------------------------------------------------------- APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS (UNAUDITED) BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS. The initial and annual approval of the investment advisory agreement with Bishop Street Capital Management (the "Adviser") and the sub-advisory agreements with BNP Paribas Asset Management, Inc. ("BNP PAM") and Fisher Francis Trees & Watts, Inc. ("FFTW") must be made by: (i) the vote of the Trustees or a vote of the shareholders of the relevant Fund, as applicable; and (ii) the vote of a majority of the Trustees who are not parties to the agreements or "interested persons" of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. Each year the Board of Trustees calls and holds a meeting to decide whether to renew the agreements for the upcoming year. This year the Board also called and held meetings to consider the approval of a new sub-advisory agreement. In preparation for such meetings, the Board requests and reviews a wide variety of information. The Trustees use this information to help them decide whether to approve a new agreement or renew an agreement for another year. In preparation for a meeting held on February 17, 2005, at which the Board considered the renewal of the agreements with the Adviser and BNP PAM, and for meetings held on April 7, 2005 and May 13, 2005, at which the Board considered the selection and approval of FFTW, the Board requested and received materials from the Adviser, BNP PAM, and FFTW about: (a) the quality of the Adviser's, BNP PAM's, and FFTW's investment management and other services; (b) the Adviser's, BNP PAM's, and FFTW's investment management personnel; (c) the Adviser's, BNP PAM's, and FFTW's operations and financial condition; (d) the Adviser's, BNP PAM's, and FFTW's trading practices (including any soft dollar arrangements) and investment strategies; (e) the level of the fees that the Adviser and BNP PAM charges the Funds compared with the fees they charge to comparable mutual funds or accounts (if any); (f) each Fund's overall fees and operating expenses compared with similar mutual funds; (g) the level of the Adviser's and BNP PAM's profitability from their Fund-related operations; (h) the Adviser's, BNP PAM's, and FFTW's compliance systems; (i) the Adviser's, BNP PAM's, and FFTW's policies on and compliance procedures for personal securities transactions; (j) the Adviser's, BNP PAM's, and FFTW's reputation, expertise and resources in domestic financial markets; (k) each Fund's performance compared with similar mutual funds; and (l) FFTW's performance records for similar mutual funds. Representatives from the Adviser, BNP PAM, and FFTW presented additional oral and written information to the Board at the relevant meeting to help the Board evaluate the Adviser's, BNP PAM's, and FFTW's fees and other aspects of the agreements. The Board also considered information presented by these and other service providers at meetings throughout the year. The Trustees discussed the written materials, oral presentations, and any other information that the Board received, and considered the approval of the agreements in light of this information. Bishop Street Funds 62 - -------------------------------------------------------------------------------- Based on the Board's deliberations and its evaluation of the information it received, the Board, including all of the independent Trustees, approved the agreements and the selection of the Adviser, BNP PAM, and FFTW. The Board considered the following specific factors, none of which was controlling, and made the following conclusions: NATURE, EXTENT, AND QUALITY OF SERVICES. The Board received and considered information regarding the nature, extent, and quality of services to be provided to the Funds by the Adviser, BNP PAM, and FFTW. In this regard, the Trustees evaluated, among other things, the Adviser's, BNP PAM's, and FFTW's personnel, experience, track record, and compliance program. The Board considered the background and experience of the Adviser's, BNP PAM's, and FFTW's senior management and the expertise of, and amount of attention expected to be given to the Funds by, their portfolio management teams. The Board reviewed the qualifications, backgrounds, and responsibilities of the portfolio managers responsible for the day-to-day management of the Funds. With respect to the Adviser, the Board specifically considered certain personnel changes and their implications for the Funds. The Board also reviewed information pertaining to the Adviser's, BNP PAM's, and FFTW's organizational structure, senior management, investment operations, and other relevant information. The Board concluded that, within the context of its full deliberations, the nature, extent, and quality of the services to be provided to the Funds by the Adviser, BNP PAM, and FFTW supported the approval of the agreements. PERFORMANCE. The Board considered the investment performance of each Fund, including any periods of outperformance and underperformance, both on an absolute basis and a comparative basis to indices and other funds within the same investment categories. Specifically, the Board considered each Fund's performance relative to its peer group and appropriate benchmarks in light of total return, yield, and market trends. As part of this review, the Board considered the composition of the peer group and selection criteria, as well as market risk and shareholder risk expectations. The Board considered the Adviser's explanations regarding specific performance issues relating to asset size and adviser resources. With respect to FFTW, the Board received and considered information regarding other money market funds advised by FFTW, noting that these funds had no history of any material deviation between amortized cost and market price. The Board concluded that, within the context of its full deliberations, the performance of the Funds and the Adviser, BNP PAM, and FFTW supported the approval of the agreements. FUND EXPENSES. With respect to advisory fees, the Board considered the rate of compensation under the agreements and each Fund's net operating expense ratio in comparison to those of comparable mutual funds. The Trustees also considered June 30, 2005 www.bishopstreetfunds.com 63 Bishop Street Funds - -------------------------------------------------------------------------------- information about average expense ratios of comparable mutual funds in each Fund's peer group. Finally, the Trustees considered the effect of the Adviser's and its affiliates' voluntary waiver of fees and expenses, where applicable, to prevent total fund expenses from exceeding a specified amount and that due to these waivers net operating expenses have been maintained at competitive levels. The Board concluded that, within the context of its full deliberations, the expenses of the Funds are reasonable and supported the approval of the agreements. PROFITABILITY. The Board reviewed information about the profitability of the Funds to the Adviser and BNP PAM and considered whether the level of profitability was reasonable and justified in light of the quality of the services rendered to the Funds. The Board concluded that, within the context of its full deliberations, the profitability of the Adviser and BNP PAM is within the range the Board considered reasonable and appropriate. With respect to FFTW, there is no historical profitability with regard to its arrangements with the Funds because the engagement of FFTW is new. ECONOMIES OF SCALE. The Board considered the existence of economies of scale and whether they were passed along to Fund shareholders through a graduated advisory fee schedule or other means, including any fee and expense waivers by the Adviser and its affiliates. The Board also considered the potential economies of scale and other efficiencies that may result from increases in the Funds' asset levels, as well as the potential ancillary benefits from FFTW's affiliation with BNP Paribas, which may result in additional distribution channels becoming available. The Board concluded that, within the context of its full deliberations, the Funds obtain reasonable benefit from economies of scale. Bishop Street Funds 64 Bishop Street Funds - -------------------------------------------------------------------------------- SHAREHOLDER VOTING RESULTS (UNAUDITED) At a special meeting held on August 15, 2005, the shareholders of the Bishop Street Funds voted on the proposal listed below. Proposal: To approve the new investment sub-advisory agreement between the Trust, on behalf of the Funds, Bishop Street Capital Management, and Fischer Francis Trees & Watts, Inc. The results of the voting were as follows: TREASURY MONEY MARKET FUND % OF NUMBER OUTSTANDING % OF SHARES OF SHARES SHARES VOTED --------- ----------- ----------- Affirmative 140,753,432.000 55.037% 99.961% Against 0.000 0.000% 0.000% Abstain 54,966.000 0.021% 0.039% TOTAL 140,808,398.000 55.058% 100.000% Record Total 255,743,563.690 Voted Shares 140,808,398.000 Percent Voted 55.058% MONEY MARKET FUND % OF NUMBER OUTSTANDING % OF SHARES OF SHARES SHARES VOTED --------- ----------- ----------- Affirmative 120,280,730.000 64.348% 98.293% Against 11,692.000 0.006% 0.010% Abstain 2,077,034.000 1.111% 1.697% TOTAL 122,369,456.000 65.465% 100.000% Record Total 186,922,125.776 Voted Shares 122,369,456.000 Percent Voted 65.465% June 30, 2005 www.bishopstreetfunds.com 65 Notes Notes Notes [Background Graphic Omitted] Investment Adviser Bishop Street Capital Management Honolulu, HI 96813 Administrator SEI Investments Global Funds Services Oaks, PA 19456 Distributor SEI Investments Distribution Co. Oaks, PA 19456 Transfer Agent DST Systems, Inc. Kansas City, MO 64121 Custodian Union Bank of California, N.A. San Francisco, CA 94101 Legal Counsel Morgan, Lewis & Bockius LLP Philadelphia, PA 19103 Independent registered public accounting firm PricewaterhouseCoopers LLP Philadelphia, PA 19103 [BISHOP STREET LOGO OMITTED] For more information about Bishop Street Funds, Call 1-800-262-9565 or your Investment Specialist Visit us online at www.bishopstreetfunds.com [BISHOP STREET LOGO OMITTED] Bishop Street Funds P.O. Box 3708 Honolulu, HI 96811 This report and the financial statements contained herein are submitted for the general information of Bishop Street Funds' shareholders. This report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Shares of Bishop Street Funds are NOT deposits or obligations of, or guaranteed by First Hawaiian Bank or any of its affiliates. Such shares are also NOT federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. Investment in shares of mutual funds involves risk, including the possible loss of principal. The Bishop Street Funds are distributed by SEI Investments Distribution Co., which is not affiliated with First Hawaiian Bank, Bank of the West or BancWest Corporation. BancWest Corporation is a wholly-owned subsidiary of BNP Paribas. BSF-SA-004-1100 ITEM 2. CODE OF ETHICS. Not applicable for semi-annual report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for semi-annual report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for semi-annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. 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. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005 ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEMS 12. EXHIBITS. (a)(1) Not applicable for semi-annual report. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), is filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit. - -------------------------------------------------------------------------------- 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. (Registrant) Bishop Street Funds By (Signature and Title)* /s/ Robert A. Nesher -------------------- Robert A. Nesher President Date: August 29, 2005 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 (Signature and Title)* /s/ Robert A. Nesher -------------------- Robert A. Nesher President Date: August 29, 2005 By (Signature and Title)* /s/ Michael Lawson -------------------- Michael Lawson Treasurer and Controller Date: August 29, 2005 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 bishop302cert_rn.txt BISHOP STREET SAR 302 CERT_RN CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Robert A. Nesher, certify that: 1. I have reviewed this report on Form N-CSR of the Bishop Street Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 29, 2005 /s/ Robert A. Nesher - ------------------------ Robert A. Nesher President EX-99.CERT 3 bishop302cert_ml.txt BISHOP STREET SAR 302 CERT_ML CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Michael Lawson, certify that: 1. I have reviewed this report on Form N-CSR of the Bishop Street Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 29, 2005 /s/ Michael Lawson - ------------------------------- Michael Lawson Treasurer and Controller EX-99.906CERT 4 bishop906cert_rn.txt BISHOP STREET SAR 906 CERT_RN CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the President of the Bishop Street Funds (the "Funds"), with respect to the Funds' Form N-CSR for the period ended June 30, 2005 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: August 29, 2005 /s/ Robert A. Nesher -------------------------- Robert A. Nesher EX-99.906CERT 5 bishop906cert_ml.txt BISHOP STREET SAR 906 CERT_ML CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Treasurer and Controller of the Bishop Street Funds (the "Funds"), with respect to the Funds' Form N-CSR for the period ended June 30, 2005 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: August 29, 2005 /s/ Michael Lawson ----------------------- Michael Lawson -----END PRIVACY-ENHANCED MESSAGE-----