-----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, Bkm70k/jyVp8vFywR8CdkZWJuoa1kmx0xpDpS17uiamnf4qKXRjng6ttz7Ja9uVa CpdfhJd7L8JE8DyA0+d0yQ== 0000935069-07-002167.txt : 20070904 0000935069-07-002167.hdr.sgml : 20070903 20070904172442 ACCESSION NUMBER: 0000935069-07-002167 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20070630 FILED AS OF DATE: 20070904 DATE AS OF CHANGE: 20070904 EFFECTIVENESS DATE: 20070904 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: 071097579 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 0000925737 S000005796 MONEY MARKET FUND C000015928 CLASS I SHARES BISXX C000015929 CLASS A SHARES BSAXX 0000925737 S000005797 HAWAII MUNICIPAL BOND FUND C000015930 CLASS I SHARES BSHIX C000015931 CLASS A SHARES BHIAX 0000925737 S000005798 HIGH GRADE INCOME FUND C000015932 CLASS I SHARES BSHGX 0000925737 S000005800 TREASURY MONEY MARKET FUND C000015934 CLASS I SHARES BSTXX 0000925737 S000005801 STRATEGIC GROWTH FUND C000015935 CLASS I SHARES BSRIX 0000925737 S000011779 LARGE CAP CORE EQUITY FUND C000032215 CLASS I SHARES N-CSRS 1 bishopstsar6_07comb.txt BISHOP STREET SAR 6_07 COMBINED UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM N-CSR -------- 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) -------- 101 Federal 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: 1-800-262-9565 DATE OF FISCAL YEAR END: DECEMBER 31, 2007 DATE OF REPORTING PERIOD: JUNE 30, 2007 ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC OMITTED] BISHOP STREET FUNDS SEMI-ANNUAL REPORT JUNE 30, 2007 STRATEGIC GROWTH FUND LARGE CAP CORE 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 FUNDS LOGO OMITTED] The Funds file their complete schedules 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 SCHEDULE OF INVESTMENTS Strategic Growth Fund ................................................ 4 Large Cap Core Equity Fund ........................................... 7 High Grade Income Fund ............................................... 13 Hawaii Municipal Bond Fund ........................................... 21 Money Market Fund .................................................... 30 Treasury Money Market Fund ........................................... 33 STATEMENTS OF ASSETS AND LIABILITIES ....................................... 34 STATEMENTS OF OPERATIONS ................................................... 36 STATEMENTS OF CHANGES IN NET ASSETS ........................................ 38 FINANCIAL HIGHLIGHTS ....................................................... 42 NOTES TO FINANCIAL STATEMENTS .............................................. 46 DISCLOSURE OF FUND EXPENSES ................................................ 57 APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS .................................................. 59 SHAREHOLDER VOTING RESULTS ................................................. 62 1 - -------------------------------------------------------------------------------- BISHOP STREET LETTER TO SHAREHOLDERS FUNDS - -------------------------------------------------------------------------------- [PHOTO OMITTED] The first six months of 2007 was an interesting period in the investment world, leaving investors with a host of questions yet to be answered. A slowing U.S. economy, the threat of rising inflation, higher interest rates, a housing slowdown, the sub-prime debacle, and the near collapse of two large hedge funds has created greater uncertainty for investors. Meanwhile, corporate profits were strong and liquidity remained abundant fueling capital expansion, increased merger and acquisition activity, share repurchases, and excessive risk taking that has driven stock prices around the world into record territory. At least in the short run, it appears that these latter influences have won the battle. Or have they? STOCKS SOAR TO NEW HIGHS IN 2007 The U.S. stock market remained volatile in the first half of the year with all major indices managing to finish on a strong note. Most impressive was the Dow Jones Industrial Average which gained 8.75% so far this year, pushed to record highs time and time again even after the big sell off in late February. The S&P 500 and NASDAQ managed equally impressive gains yet those returns paled in comparison to the extraordinary gains witnessed abroad as those international markets continued to reap the benefits of the unprecedented broad-based, global economic boom. Interestingly, in a marked turnaround from recent years, large-capitalization stocks managed to outpace small-cap issues. MODEST HALF-YEAR GAINS FOR THE BOND MARKET The Federal Reserve maintained its target for the federal funds rate at 5.25% during the first six months of the year despite concerns about inflation, market speculation, a weak housing market, and a sub-prime mess that threatened to undermine the stability of our financial markets. Perhaps even more significant, the yield curve steepened from its inverted condition with the premiums generally paid for longer term bonds and the longer commitment of capital beginning to return. Bishop Street Funds 2 - -------------------------------------------------------------------------------- [BISHOP STREET FUNDS LOGO OMITTED] - -------------------------------------------------------------------------------- Money market instruments continued to be a bright spot in the fixed income markets, returning 2.5% for the first half. The yield on the 3-month U.S. Treasury Bill stood at 4.8% at the end of June -- not much changed from a year ago. Over this same period, the broad taxable bond market gained just 1.0%, while municipal bonds posted a modest 0.2% return. A BALANCED STRATEGY WILL POSITION YOUR PORTFOLIO FOR THE LONG TERM At BSCM, we encourage shareholders to take a long-term perspective when evaluating their investment portfolio. And in our view, the Strategic Growth Fund and Large Cap Core Fund should be a part of a carefully designed, balanced portfolio utilizing a strategic asset allocation that reflects your personal risk appetite, investment time horizon, and investment goals. Over time, a well-diversified portfolio holding both growth and core stock funds as well as bond and money market funds will help position your portfolio to realize the benefits of the market's best performing asset classes while mitigating the negative impact of those that under-perform. And with a long-term focus on maximizing the value of your investment portfolio, the BSCM family of funds can play an important role in helping to achieve those goals. Thank you for investing with Bishop Street Capital Management. Sincerely, /s/ Michael K. Hirai Michael K. Hirai, CFA President and Chief Investment Officer July 15, 2007 June 30, 2007 3 www.bishopstreetfunds.com Strategic Growth Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS+ ------------------------------------------------------------------------ Percentage of Investments ------------------------------------------------------------------------ 1. Monsanto 2.3% ------------------------------------------------------------------------ 2. W.W. Grainger 2.3% ------------------------------------------------------------------------ 3. Google, Cl A 2.2% ------------------------------------------------------------------------ 4. Accenture Ltd., Cl A 2.2% ------------------------------------------------------------------------ 5. Target 2.2% ------------------------------------------------------------------------ 6. Transocean 2.2% ------------------------------------------------------------------------ 7. Affiliated Managers Group 2.1% ------------------------------------------------------------------------ 8. Akamai Technologies 2.1% ------------------------------------------------------------------------ 9. Oracle 2.1% ------------------------------------------------------------------------ 10. Franklin Resources 2.1% ------------------------------------------------------------------------ ------------------------------------------------------------------------ SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 22.5% Information Technology 19.6% Financials 15.9% Health Care 15.3% Consumer Discretionary 11.8% Industrials 4.2% Energy 4.1% Materials 3.8% Consumer Staples 2.0% Telecommunications 0.8% Short-Term Investments ------------------------------------------------------------------------ +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS.
SCHEDULE OF INVESTMENTS Market Value Shares (000) ------ ------ COMMON STOCK -- 99.4% CONSUMER DISCRETIONARY -- 15.3% 32,300 Abercrombie & Fitch, Cl A $ 2,357 54,600 Coach* 2,588 77,307 Hilton Hotels 2,588 36,900 Kohl's* 2,621 51,800 McDonald's 2,629 50,300 Nordstrom 2,571 8,250 Staples 196 48,700 Target 3,097 78,740 Wyndham Worldwide* 2,855 -------- 21,502 -------- Bishop Street Funds 4 Strategic Growth Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Value Shares (000) ------ ------ CONSUMER STAPLES -- 3.8% 73,313 CVS $ 2,672 45,700 General Mills 2,670 -------- 5,342 -------- ENERGY -- 4.2% 29,200 Transocean* 3,095 46,000 XTO Energy 2,764 -------- 5,859 -------- FINANCIALS -- 19.7% 23,500 Affiliated Managers Group* 3,026 40,800 Allstate 2,510 40,000 American International Group 2,801 77,200 CB Richard Ellis Group, Cl A* 2,818 27,200 Everest Re Group Ltd. 2,955 22,500 Franklin Resources 2,981 13,100 Goldman Sachs Group 2,839 50,700 JPMorgan Chase 2,456 36,100 Lehman Brothers Holdings 2,690 30,700 Merrill Lynch 2,566 -------- 27,642 -------- HEALTH CARE -- 15.9% 57,400 Aetna 2,835 48,000 Cigna 2,507 57,400 Express Scripts* 2,871 33,000 Genentech* 2,497 45,000 Genzyme* 2,898 71,200 Gilead Sciences* 2,760 17,600 Sepracor* 722 53,300 Thermo Electron* 2,757 50,200 UnitedHealth Group 2,567 -------- 22,414 -------- INDUSTRIALS -- 11.8% 28,300 Lockheed Martin 2,664 30,600 Manpower 2,823 35,700 McDermott International* 2,967 40,200 United Technologies 2,852 34,400 W.W. Grainger 3,201 17,100 Precision Castparts 2,075 -------- 16,582 -------- June 30, 2007 5 www.bishopstreetfunds.com Strategic Growth Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Value Shares (000) ------ ------ INFORMATION TECHNOLOGY -- 22.6% 73,100 Accenture Ltd., Cl A $ 3,135 61,900 Akamai Technologies* 3,011 102,500 Cisco Systems* 2,855 6,000 Google, Cl A* 3,140 61,800 Hewlett-Packard 2,758 44,800 Intuit* 1,348 87,500 Marvel Technology Group Ltd.* 1,593 43,700 Memc Electronic Materials* 2,671 67,700 Nvidia* 2,797 152,100 Oracle* 2,998 120,400 Red Hat* 2,682 142,900 Western Digital* 2,765 -------- 31,753 -------- MATERIALS -- 4.1% 24,100 Allegheny Technologies 2,527 48,000 Monsanto 3,242 -------- 5,769 -------- TELECOMMUNICATIONS -- 2.0% 63,700 Qualcomm 2,764 -------- TOTAL COMMON STOCK (Cost $108,542) 139,627 -------- CASH EQUIVALENTS (A) -- 0.8% 588,243 Dreyfus Cash Management Fund, Institutional Shares, 5.190% 588 588,243 Fidelity Institutional Money Market Portfolio, Institutional Shares, 5.250% 588 -------- TOTAL CASH EQUIVALENTS (Cost $1,176) 1,176 -------- TOTAL INVESTMENTS (COST $109,718) -- 100.2% $140,803 ========
PERCENTAGES ARE BASED ON NET ASSETS OF $140,457 (000). * NON-INCOME PRODUCING SECURITY (A) RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2007. CL -- CLASS LTD. -- LIMITED COST FIGURES ARE SHOWN WITH "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 6 Large Cap Core Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- TOP TEN EQUITY HOLDINGS+ ------------------------------------------------------------------------- Percentage of Investments ------------------------------------------------------------------------- 1. Citigroup 2.4% ------------------------------------------------------------------------- 2. JPMorgan Chase 2.3% ------------------------------------------------------------------------- 3. Johnson & Johnson 2.1% ------------------------------------------------------------------------- 4. American International Group 2.1% ------------------------------------------------------------------------- 5. Microsoft 2.1% ------------------------------------------------------------------------- 6. Bank of America 1.9% ------------------------------------------------------------------------- 7. Cisco Systems 1.5% ------------------------------------------------------------------------- 8. ConocoPhillips 1.4% ------------------------------------------------------------------------- 9. Norfolk Southern 1.3% ------------------------------------------------------------------------- 10. Chevron 1.3% ------------------------------------------------------------------------- ------------------------------------------------------------------------- SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 19.0% Financials 15.5% Information Technology 11.9% Health Care 11.8% Industrials 10.2% Consumer Discretionary 10.1% Energy 7.1% Consumer Staples 4.7% Short-Term Investments 3.4% Materials 2.8% Telecommunications 2.1% Master Notes 0.8% Exchange Traded Fund 0.6% Utilities ------------------------------------------------------------------------- +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS, WHICH INCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING.
SCHEDULE OF INVESTMENTS Market Value Shares (000) ------ ------ COMMON STOCK -- 98.1% CONSUMER DISCRETIONARY -- 10.9% 11,100 Apollo Group, Cl A* $ 649 12,600 Bed Bath & Beyond* 454 16,400 Best Buy 765 5,200 Black & Decker 459 7,800 Carnival (A) 380 20,700 Centex 830 15,300 Coach* 725 25,650 Comcast, Cl A* 721 June 30, 2007 7 www.bishopstreetfunds.com Large Cap Core Equity Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Value Shares (000) ------ ------ CONSUMER DISCRETIONARY -- (CONTINUED) 11,100 EchoStar Communications, Cl A* $ 482 8,200 Harley-Davidson (A) 489 17,200 Hasbro 540 23,100 Home Depot 909 9,300 International Game Technology 369 7,835 Liberty Media Capital, Ser A* 922 8,000 Omnicom Group 423 17,100 Pulte Homes 384 15,800 Staples 375 30,100 Time Warner 633 15,000 Viacom, Cl B* 625 8,600 Whirlpool 956 -------- 12,090 -------- CONSUMER STAPLES -- 7.5% 16,400 Altria Group 1,150 28,100 Archer-Daniels-Midland 930 8,000 Campbell Soup 311 16,000 Constellation Brands, Cl A* 389 12,600 Costco Wholesale 737 7,500 Kellogg 388 16,500 PepsiCo 1,070 23,600 Procter & Gamble 1,444 27,000 Wal-Mart Stores 1,299 15,800 Walgreen 688 -------- 8,406 -------- ENERGY -- 10.7% 13,200 Apache 1,077 6,500 Canadian Natural Resources (A) 431 17,900 Chevron 1,508 21,700 ConocoPhillips 1,703 11,600 Devon Energy 908 17,000 Encana 1,045 11,200 National Oilwell Varco* 1,168 12,300 Noble 1,200 7,900 Peabody Energy 382 6,500 Suncor Energy* 584 16,300 Valero Energy 1,204 11,400 XTO Energy 685 -------- 11,895 -------- Bishop Street Funds 8 Large Cap Core Equity Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Value Shares (000) ------ ------ FINANCIALS -- 20.2% 17,500 ACE $ 1,094 8,800 Allstate 541 36,100 American International Group 2,528 45,000 Bank of America 2,200 7,500 Bear Stearns 1,050 15,200 Capital One Financial 1,192 54,800 Citigroup 2,811 28,400 Countrywide Financial 1,033 20,700 E*Trade Financial* (A) 457 18,900 Genworth Financial 650 6,200 Goldman Sachs Group 1,344 12,000 Hartford Financial Services Group 1,182 55,100 JPMorgan Chase 2,670 6,000 Legg Mason 590 14,800 Lehman Brothers Holdings 1,103 14,400 Morgan Stanley 1,208 15,700 Travelers 840 -------- 22,493 -------- HEALTH CARE -- 12.6% 10,700 Abbott Laboratories 573 22,300 Amgen* 1,233 19,400 Biogen Idec* (A) 1,038 15,700 Coventry Health Care* 905 11,400 Genzyme* 734 8,000 Gilead Sciences* 310 41,200 Johnson & Johnson 2,539 11,400 Laboratory Corp of America Holdings* (A) 892 16,600 Merck 827 50,800 Pfizer 1,299 21,100 St. Jude Medical* 875 23,100 UnitedHealth Group 1,181 14,200 Wyeth 814 9,300 Zimmer Holdings* 790 -------- 14,010 -------- INDUSTRIALS -- 12.6% 19,000 Caterpillar 1,488 15,700 Danaher 1,185 20,500 Dover 1,049 7,300 Eaton 679 11,900 Equifax 529 June 30, 2007 9 www.bishopstreetfunds.com Large Cap Core Equity Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Value Shares (000) ------ ------ INDUSTRIALS -- (CONTINUED) 11,500 Exelon $ 835 16,300 General Dynamics 1,275 21,800 General Electric 834 18,000 Illinois Tool Works 975 20,500 Ingersoll-Rand, Cl A 1,124 9,300 L-3 Communications Holdings 906 29,600 Norfolk Southern 1,556 11,300 Parker Hannifin 1,106 8,600 Questar 454 -------- 13,995 -------- INFORMATION TECHNOLOGY -- 16.4% 11,400 Accenture Ltd., Cl A 489 16,300 Adobe Systems* 654 11,700 Apple Computer* 1,428 37,600 Applied Materials 747 14,900 Autodesk* 702 17,700 Broadcom, Cl A* 518 63,300 Cisco Systems* 1,763 17,300 Citrix Systems* 583 18,800 eBay* 605 51,600 EMC* 934 2,200 Google, Cl A* 1,151 5,300 International Business Machines 558 10,600 Kla-Tencor (A) 582 10,300 Memc Electronic Materials* 630 84,100 Microsoft 2,478 16,900 Nvidia* 698 53,500 Oracle* 1,054 14,500 SanDisk* 710 84,200 Sun Microsystems* 443 29,800 Texas Instruments 1,121 14,200 VeriSign* 451 -------- 18,299 -------- MATERIALS -- 3.6% 19,900 Alcoa 806 3,400 Allegheny Technologies 357 17,000 Freeport-McMoRan Copper & Gold, Cl B (A) 1,408 26,800 Teck Cominco Ltd, Cl B (A) 1,139 3,300 United States Steel 359 -------- 4,069 -------- Bishop Street Funds 10 Large Cap Core Equity Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Shares/Face Value Amount (000) (000) ------------ -------- TELECOMMUNICATION SERVICES -- 3.0% 32,100 Corning* $ 820 6,200 NII Holdings* 501 42,300 Sprint Nextel 876 27,200 Verizon Communications 1,120 -------- 3,317 -------- UTILITIES -- 0.6% 10,600 FirstEnergy 686 -------- TOTAL COMMON STOCK (Cost $97,574) 109,260 -------- MASTER NOTES (B) -- 2.2% $ 775 Bank of America 5.435%, 07/02/07 775 554 Bear Stearns 5.575%, 06/27/07 554 1,107 JPMorgan Securities 5.250%, 07/16/07 1,108 -------- TOTAL MASTER NOTES (Cost $2,437) 2,437 -------- EXCHANGE TRADED FUND (A) -- 0.8% 6,100 SPDR Trust, Ser 1* 917 -------- TOTAL EXCHANGE TRADED FUND (Cost $936) 917 -------- CASH EQUIVALENTS (C) -- 0.2% 97,912 Dreyfus Cash Management Fund, Institutional Shares, 5.190% 98 97,912 Fidelity Institutional Money Market Portfolio, Institutional Shares, 5.250% 98 -------- TOTAL CASH EQUIVALENTS (Cost $196) 196 -------- REPURCHASE AGREEMENT (B) -- 4.8% $5,386 Lehman Brothers 5.425%, dated 06/29/07, to be repurchased on 07/02/07, repurchase price $5,388,832 (collateralized by various U.S. Government collateralized mortgage obligations, ranging in par value $12,890,000-$15,420,000, 5.000%-5.484%, 09/25/34-06/10/39, with a total market value of $5,494,988) 5,386 -------- TOTAL REPURCHASE AGREEMENT (Cost $5,386) 5,386 -------- TOTAL INVESTMENTS (COST $106,529) -- 106.1% $118,196 ========
June 30, 2007 11 www.bishopstreetfunds.com Large Cap Core Equity Fund (UNAUDITED) - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) PERCENTAGES ARE BASED ON NET ASSETS OF $111,403 (000). * NON-INCOME PRODUCING SECURITY (A) THE SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2007. THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2007 WAS $7,619,915. (B) THIS SECURITY WAS PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2007, WAS $7,822,715. (C) RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2007. CL -- CLASS LTD. -- LIMITED SER -- SERIES SPDR -- STANDARD & POOR'S DEPOSITORY RECEIPT. COST FIGURES ARE SHOWN WITH "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 12
High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- TOP TEN HOLDINGS+ - ----------------------------------------------------------------------------------------------------- Percentage Coupon Maturity of Rate Date Investments - --------------------------------------------------------------------------------------------------- 1. U.S. Treasury Bond 7.250% 05/15/16 3.3% ------------------------------------------------------------------------------------------------- 2. U.S. Treasury Bond 7.500% 11/15/16 2.1% ------------------------------------------------------------------------------------------------- 3. U.S. Treasury Bond 4.500% 02/15/36 1.8% ------------------------------------------------------------------------------------------------- 4. FHLMC MTN 4.850% 12/01/09 1.8% ------------------------------------------------------------------------------------------------- 5. FNMA 7.250% 01/15/10 1.6% ------------------------------------------------------------------------------------------------- 6. Goldman Sachs Group 6.600% 01/15/12 1.6% ------------------------------------------------------------------------------------------------- 7. FHLMC 5.125% 10/15/08 1.5% ------------------------------------------------------------------------------------------------- 8. General Electric Capital MTN, Ser A 5.450% 01/15/13 1.5% ------------------------------------------------------------------------------------------------- 9. Bank of America 4.875% 01/15/13 1.5% ------------------------------------------------------------------------------------------------- 10. Abbott Laboratories 5.600% 05/15/11 1.3% - -----------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 28.1% U.S. Government Agency Obligations 14.2% U.S. Treasury Obligations 13.1% Short-Term Investments 10.9% Financials 5.5% Master Notes 4.5% Health Care 4.3% Information Technology 4.2% Consumer Discretionary 3.4% Energy 2.8% Industrials 2.6% U.S. Government Mortgage-Backed Obligations 2.0% Telecommunications 1.8% Utilities 1.6% Consumer Staples 1.0% Materials - -------------------------------------------------------------------------------- +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS, WHICH INCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING.
SCHEDULE OF INVESTMENTS Face Market Amount Value (000) (000) ------ -------- CORPORATE OBLIGATIONS -- 43.9% AEROSPACE & DEFENSE -- 2.7% General Dynamics $ 1,000 4.500%, 08/15/10 $ 978 Rockwell Automation 1,200 6.700%, 01/15/28 1,272 United Technologies 1,200 6.350%, 03/01/11 1,235 -------- 3,485 -------- June 30, 2007 13 www.bishopstreetfunds.com High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- AUTO FINANCE -- 1.8% DaimlerChrysler NA Holding $ 700 8.000%, 06/15/10 $ 745 Toyota Motor Credit (A) 1,500 5.450%, 05/18/11 1,510 -------- 2,255 -------- BANKS -- 3.4% Bank of America 2,350 4.875%, 01/15/13 2,272 BHP Billiton Finance 850 5.250%, 12/15/15 814 JPMorgan Chase 1,400 5.875%, 06/13/16 1,402 -------- 4,488 -------- BROADCASTING & CABLE -- 1.8% TCI Communications 1,200 7.875%, 08/01/13 1,315 Turner Broadcasting System 975 8.375%, 07/01/13 1,089 -------- 2,404 -------- COMPUTER HARDWARE -- 4.3% Cisco Systems 1,400 5.500%, 02/22/16 1,366 Dell 1,325 6.550%, 04/15/08 1,336 IBM 1,400 8.375%, 11/01/19 1,693 Oracle 1,200 5.250%, 01/15/16 1,151 -------- 5,546 -------- FINANCIALS -- 7.2% Boeing Capital 1,400 6.500%, 02/15/12 1,459 CIT Group 1,350 5.000%, 11/24/08 1,341 General Electric Capital MTN, Ser A (A) 2,350 5.450%, 01/15/13 2,326 Goldman Sachs Group 2,350 6.600%, 01/15/12 2,433 Bishop Street Funds 14 High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- FINANCIALS -- (CONTINUED) Jefferies Group $ 675 6.250%, 01/15/36 $ 633 Merrill Lynch 1,200 5.000%, 02/03/14 1,147 -------- 9,339 -------- FOOD & BEVERAGE -- 0.7% ConAgra Foods 884 7.875%, 09/15/10 943 -------- FOREIGN GOVERNMENTS -- 0.8% Republic of Italy 1,000 5.375%, 06/12/17 985 -------- GENERAL MERCHANDISE -- 1.2% Office Depot 600 6.250%, 08/15/13 600 Target 1,000 6.350%, 01/15/11 1,027 -------- 1,627 -------- HEALTH CARE -- 1.2% Johnson & Johnson 1,400 6.950%, 09/01/29 1,607 -------- HEALTHCARE - DISTRIBUTION/SERVICES -- 0.8% Hillenbrand Industries 1,125 4.500%, 06/15/09 1,104 -------- HOUSEHOLD PRODUCTS -- 1.1% Proctor & Gamble 1,200 8.000%, 10/26/29 1,481 -------- MEDIA -- 1.0% News America 1,200 7.250%, 05/18/18 1,298 -------- MOVIES & ENTERTAINMENT -- 0.9% Walt Disney MTN 1,200 6.200%, 06/20/14 1,241 -------- OIL & GAS - EQUIPMENT/SERVICES -- 1.1% Baker Hughes 1,400 6.000%, 02/15/09 1,413 -------- June 30, 2007 15 www.bishopstreetfunds.com High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- OIL & GAS - EXPLORATION/PRODUCTION -- 1.0% Anadarko Petroleum $ 1,250 7.200%, 03/15/29 $ 1,283 -------- OIL & GAS - INTEGRATED -- 2.0% BP Amoco 1,385 9.125%, 03/01/11 1,556 Occidental Petroleum 1,000 6.750%, 01/15/12 1,052 -------- 2,608 -------- PHARMACEUTICALS -- 3.4% Abbott Laboratories 2,100 5.600%, 05/15/11 2,109 Genentech 1,200 4.750%, 07/15/15 1,121 Teva Pharmaceutical LLC (A) 1,200 5.550%, 02/01/16 1,150 -------- 4,380 -------- SEMI-CONDUCTORS -- 1.0% Duke Energy 1,275 4.200%, 10/01/08 1,255 -------- STEEL & STEEL WORKS -- 1.3% Nucor 1,800 4.875%, 10/01/12 1,735 -------- TELECOMMUNICATIONS -- 1.4% GTE South, Ser C 500 6.000%, 02/15/08 501 Sprint Capital 1,200 7.625%, 01/30/11 1,263 -------- 1,764 -------- TELEPHONES & TELECOMMUNICATION -- 1.0% AT&T Wireless Services 1,200 8.125%, 05/01/12 1,320 -------- TRANSPORTATION SERVICES -- 0.6% FedEx 800 7.250%, 02/15/11 841 -------- Bishop Street Funds 16 High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- UTILITIES -- 2.2% Dominion Resources $ 1,350 4.125%, 02/15/08 $ 1,339 Hydro-Quebec 1,325 7.500%, 04/01/16 1,500 -------- 2,839 -------- TOTAL CORPORATE OBLIGATIONS (Cost $58,801) 57,241 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 33.6% FHLB 200 6.875%, 08/13/10 209 1,400 5.300%, 01/16/09 1,400 1,000 5.000%, 02/22/13 975 1,300 4.750%, 08/13/10 1,284 1,450 4.100%, 06/13/08 1,434 1,000 3.875%, 07/24/09 974 1,750 3.875%, 02/12/10 1,694 FHLMC 875 8.250%, 06/01/16 1,031 1,000 6.500%, 06/27/22 994 1,000 6.000%, 07/10/13 1,005 1,000 5.500%, 03/05/10 998 700 5.500%, 08/20/19 694 1,400 5.500%, 03/22/22 1,365 1,000 5.400%, 01/11/12 996 1,400 5.200%, 03/05/19 1,345 2,400 5.125%, 10/15/08 (A) 2,399 1,000 5.000%, 01/30/14 980 1,400 4.750%, 05/06/13 1,350 1,500 4.625%, 08/15/08 1,489 1,400 4.375%, 03/01/10 1,371 1,800 4.250%, 05/22/13 1,701 1,100 4.000%, 06/12/13 1,025 FHLMC MTN 1,400 5.750%, 05/23/11 1,403 1,400 5.500%, 02/22/13 1,392 1,400 5.400%, 02/01/16 1,384 1,400 5.250%, 12/01/14 1,362 200 5.000%, 06/18/18 (C) 192 2,800 4.850%, 12/01/09 2,772 FHLMC REMIC, Ser R010, Cl AB 999 5.500%, 12/15/19 985 June 30, 2007 17 www.bishopstreetfunds.com High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- (CONTINUED) FNMA $ 2,400 7.250%, 01/15/10 $ 2,515 400 6.000%, 08/22/16 400 1,400 5.650%, 04/10/13 1,396 1,400 5.300%, 01/12/10 1,400 625 4.750%, 03/30/09 (C) 620 FNMA, Ser 2007, Cl BE 1,007 5.450%, 12/25/20 993 FNMA MTN 300 6.930%, 09/17/12 301 -------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $44,297) 43,828 -------- U.S. TREASURY OBLIGATIONS -- 17.0% U.S. Treasury Bonds 2,750 7.500%, 11/15/16 (A) 3,243 4,500 7.250%, 05/15/16 (A) 5,201 1,700 6.375%, 08/15/27 (A) 1,943 1,500 6.250%, 08/15/23 (A) 1,666 800 6.250%, 05/15/30 914 1,000 6.000%, 02/15/26 (A) 1,091 1,300 5.250%, 11/15/28 (A) 1,309 3,100 4.500%, 02/15/36 (A) 2,807 U.S. Treasury Notes (A) 400 4.750%, 02/15/37 377 1,400 4.250%, 08/15/15 1,328 1,200 4.000%, 02/15/14 1,136 1,200 4.000%, 02/15/15 1,124 -------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $21,933) 22,139 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 3.0% FHLMC 57 3.500%, 05/01/08 55 FHLMC, Ser 2844, Cl VB 189 5.500%, 12/15/19 185 FHLMC, Ser 3070, Cl DH 572 5.500%, 11/15/35 569 FHLMC, Ser 3196, Cl CB 971 5.250%, 08/15/11 954 Bishop Street Funds 18 High Grade Income Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Shares/Face Value Amount (000) (000) ------------- -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- (CONTINUED) FNMA $ 893 3.500%, 08/01/10 $ 856 GNMA 1,400 5.500%, 11/16/31 1,376 -------- TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $4,060) 3,995 -------- MASTER NOTES (B) -- 6.6% Bank of America 2,725 5.435%, 07/02/07 2,725 Bear Stearns 1,946 5.575%, 07/05/07 1,946 JPMorgan Securities 3,893 5.455%, 07/16/07 3,893 -------- TOTAL MASTER NOTES (Cost $8,564) 8,564 -------- CASH EQUIVALENTS (D) -- 1.2% 784,856 Dreyfus Cash Management Fund, Institutional Shares, 5.190% 785 784,856 Fidelity Institutional Money Market Portfolio, Institutional Shares, 5.250% 785 -------- TOTAL CASH EQUIVALENTS (Cost $1,570) 1,570 -------- REPURCHASE AGREEMENT (B) -- 14.5% 18,933 Lehman Brothers 5.425%, dated 06/29/07, to be repurchased on 07/02/07, repurchase price $18,941,796 (collateralized by various U.S. Government collateralized mortgage obligations, ranging in par value $12,890,000-$15,420,000, 5.000%-5.484%, 09/25/34-06/10/39, with a total market value of $19,314,935) 18,933 -------- TOTAL REPURCHASE AGREEMENT (Cost $18,933) 18,933 -------- TOTAL INVESTMENTS (COST $158,158) -- 119.8% $156,270 ========
June 30, 2007 19 www.bishopstreetfunds.com High Grade Income Fund (UNAUDITED) - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) PERCENTAGES ARE BASED ON NET ASSETS OF $130,450 (000). (A) THIS SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2007. THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2007 WAS $26,995,948. (B) THESE SECURITIES WERE PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2007 WAS $27,496,919. (C) STEP BOND -- COUPON RATE INCREASES IN INCREMENTS TO MATURITY. RATE DISCLOSED IS AS OF JUNE 30, 2007. (D) RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30,2007. CL -- CLASS FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION LLC -- LIMITED LIABILITY COMPANY MTN -- MEDIUM TERM NOTE NA -- NATIONAL ASSOCIATION REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT SER -- SERIES COST FIGURES ARE SHOWN WITH "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 20
Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- TOP TEN HOLDINGS+ - ----------------------------------------------------------------------------------------------------- Percentage Coupon Maturity of Rate Date Investments ----------------------------------------------------------------------------------------------- 1. University of Hawaii, RB 4.625% 07/15/31 2.9% ----------------------------------------------------------------------------------------------- 2. Hawaii State, Highway, RB 5.000% 07/01/12 2.4% ----------------------------------------------------------------------------------------------- 3. Hawaii State, Department of Budget & Finance, RB 5.650% 10/01/27 2.1% ----------------------------------------------------------------------------------------------- 4. Puerto Rico, Public Buildings Authority, RB 5.250% 07/01/25 1.9% ----------------------------------------------------------------------------------------------- 5. Hawaii State Department Hawaiian Home, COP 5.000% 11/01/31 1.8% ----------------------------------------------------------------------------------------------- 6. Honolulu City & County, RB 5.000% 07/01/31 1.7% ----------------------------------------------------------------------------------------------- 7. Honolulu City & County, GO 5.000% 07/01/19 1.5% ----------------------------------------------------------------------------------------------- 8. Puerto Rico, Housing Financing Authority, RB 5.000% 12/01/16 1.4% ----------------------------------------------------------------------------------------------- 9. Hawaii State, Highway, RB 5.000% 07/01/16 1.4% ----------------------------------------------------------------------------------------------- 10. Hawaii State, GO 6.500% 12/01/13 1.3% - -----------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 33.8% General Obligations 14.0% Transportation 9.5% Water 8.5% Facilities 7.6% Higher Education 4.7% Power 4.5% Airport 3.8% Utilities 3.7% General Revenue 3.3% Medical 1.9% School District 1.4% Housing 1.3% Single-Family Housing 1.0% Development 0.8% Short-Term Investments 0.2% Multi-Family Housing - -------------------------------------------------------------------------------- +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS.
SCHEDULE OF INVESTMENTS Face Market Amount Value (000) (000) -------- -------- MUNICIPAL BONDS -- 99.1% CALIFORNIA -- 1.3% Coast, Unified School District, School Facilities District 1-B, GO, FSA Insured (A) $1,610 4.595%, 08/01/40 $ 333 Highland, Redevelopment Agency, Project Area No. 1 Tax Allocation, RB, AMBAC Insured 1,440 5.650%, 12/01/24 1,646 June 30, 2007 21 www.bishopstreetfunds.com Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- CALIFORNIA -- (CONTINUED) La Mesa-Spring Valley, School District, Electric of 2002 Project, Ser B, GO, FGIC Insured (A) $ 630 5.017%, 08/01/27 $ 240 -------- 2,219 -------- GEORGIA -- 1.2% Main Street, Natural Gas, Ser B, RB 2,000 5.000%, 03/15/18 2,082 -------- HAWAII -- 80.4% Hawaii County, Refunding & Improvement Project, Ser A, GO, FGIC Insured 450 5.600%, 05/01/12 481 430 5.600%, 05/01/13 464 400 5.550%, 05/01/09 412 Hawaii County, Ser A, GO, AMBAC 1,000 5.000%, 07/15/15 1,060 1,580 4.250%, 07/15/26 1,487 Hawaii County, Ser A, GO, FSA Insured 1,000 5.000%, 07/15/23 1,030 Hawaii County, Ser A, GO, FSA Insured, Pre-Refunded @ 101 (B) 500 5.400%, 05/15/09 519 Hawaii County, Ser A, GO, MBIA Insured 1,055 5.250%, 07/15/18 1,124 1,205 5.000%, 07/15/15 1,270 1,470 5.000%, 07/15/24 1,520 Hawaii State Airport System, RB, AMT, FGIC Insured 2,000 5.625%, 07/01/18 2,096 Hawaii State Department Hawaiian Home,Kapolei Office Facilities, Ser A, COP, FSA Insured 3,000 5.000%, 11/01/31 3,092 Hawaii State, Airport System, RB, AMT, FGIC Insured 280 5.250%, 07/01/21 287 Hawaii State, Airport System, Second Ser, RB, AMT, ETM 60 6.900%, 07/01/12 65 Hawaii State, Airport System, Second Ser, RB, AMT, ETM, MBIA Insured 1,505 6.900%, 07/01/12 1,623 Hawaii State, Airport System, Ser B, RB, AMT, FGIC Insured 1,500 6.625%, 07/01/18 1,612 1,500 6.500%, 07/01/14 1,611 500 6.000%, 07/01/19 528 Bishop Street Funds 22 Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, Department of Budget & Finance, Chaminade University, RB, Radian Insured $1,000 5.000%, 01/01/26 $ 1,023 1,000 4.750%, 01/01/36 964 1,000 4.700%, 01/01/31 981 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, RB, MBIA Insured 170 5.450%, 11/01/23 170 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser A, RB, AMT, FGIC Insured 1,500 4.800%, 01/01/25 1,486 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser B, RB, AMT, XLCA Insured 1,025 5.000%, 12/01/22 1,044 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, AMBAC Insured 675 5.100%, 09/01/32 684 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, MBIA Insured 3,380 5.650%, 10/01/27 3,586 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser C, RB, AMT, AMBAC Insured 1,000 6.200%, 11/01/29 1,051 Hawaii State, Department of Budget & Finance, Mid Pacific Institute, RB, Radian Insured 1,000 5.000%, 01/01/26 1,034 1,000 4.625%, 01/01/31 950 Hawaii State, Department of Budget & Finance, Queens Health Systems, Ser B, RB, MBIA Insured, Pre-Refunded @ 101 (B) 750 5.250%, 07/01/08 768 Hawaii State, Harbor Capital Improvement, RB, AMT, MBIA Insured 2,000 5.500%, 07/01/27 2,043 545 5.400%, 07/01/09 557 Hawaii State, Harbor System, Ser A, RB, AMT, FSA Insured 2,025 5.750%, 07/01/17 2,130 670 5.750%, 07/01/29 701 1,210 5.700%, 07/01/16 1,271 1,000 5.600%, 07/01/15 1,050 Hawaii State, Harbor System, Ser B, RB, AMT, AMBAC Insured 200 5.500%, 07/01/19 210 Hawaii State, Harbor System, Ser B, RB, AMT, FSA Insured 1,000 5.000%, 01/01/13 1,037 June 30, 2007 23 www.bishopstreetfunds.com Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) -------- -------- HAWAII -- (CONTINUED) Hawaii State, Highway, RB $1,000 6.000%, 07/01/08 $ 1,021 2,000 6.000%, 07/01/09 2,080 Hawaii State, Highway, RB, FSA Insured 4,000 5.000%, 07/01/12 4,179 Hawaii State, Highway, Ser A, RB, FSA Insured 725 5.000%, 07/01/21 757 Hawaii State, Highway, Ser A, RB, FSA Insured 1,565 5.000%, 07/01/22 1,630 1,805 5.000%, 07/01/23 1,875 Hawaii State, Highway, Ser B, RB, FSA Insured 2,300 5.000%, 07/01/16 2,432 Hawaii State, Housing, Finance & Development, Single-Family Housing, Ser A, RB, AMT, FNMA Collateral 350 5.750%, 07/01/30 358 650 5.400%, 07/01/30 663 145 5.250%, 07/01/13 147 Hawaii State, Housing, Finance & Development, Single-Family Housing, Ser B, RB, FNMA Collateral 1,000 5.450%, 07/01/17 1,016 Hawaii State, Housing, Finance & Development, University of Hawaii Faculty Housing Project, RB, AMBAC Insured 700 5.650%, 10/01/16 703 Hawaii State, Kapolei Office Building, Ser A, COP, AMBAC Insured 1,475 5.250%, 05/01/13 1,514 1,000 5.000%, 05/01/08 1,010 1,100 5.000%, 05/01/15 1,125 1,000 5.000%, 05/01/16 1,022 1,000 5.000%, 05/01/17 1,022 500 5.000%, 05/01/18 511 Hawaii State, No. 1 Capitol District State Office, COP, MBIA Insured 1,000 5.200%, 05/01/14 1,028 175 5.000%, 05/01/11 179 Hawaii State, Ser CL, GO 1,000 6.000%, 03/01/09 1,033 Hawaii State, Ser CM, GO, FGIC Insured 2,000 6.500%, 12/01/13 2,276 500 6.000%, 12/01/09 524 1,500 6.000%, 12/01/11 1,623 Hawaii State, Ser CP, GO, FGIC Insured 90 5.000%, 10/01/16 91 Hawaii State, Ser CU, GO, MBIA Insured 550 5.750%, 10/01/12 580 Bishop Street Funds 24 Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- HAWAII -- (CONTINUED) Hawaii State, Ser CU, GO, MBIA Insured, Pre-Refunded @ 100 (B) $ 25 5.750%, 10/01/10 $ 26 Hawaii State, Ser CV, GO, FGIC Insured 1,000 5.250%, 08/01/21 1,040 Hawaii State, Ser CX, GO, FSA Insured 1,000 5.500%, 02/01/21 1,059 Hawaii State, Ser DF, GO, AMBAC Insured 1,250 5.000%, 07/01/21 1,304 Hawaii State, Ser DG, GO AMBAC Insured 1,000 5.000%, 07/01/16 1,057 Hawaii State, University of Hawaii, Ser A, RB, FGIC Insured, Pre-Refunded @ 100 (B) 1,605 5.500%, 07/15/12 1,714 500 5.125%, 07/15/12 526 Hawaii State, University of Hawaii, Ser B, RB, FSA Insured 320 5.250%, 10/01/16 334 775 5.250%, 10/01/17 808 Honolulu City & County, 1st Board Resolution, Senior Ser C, RB, MBIA Insured 2,850 5.000%, 07/01/31 2,946 Honolulu City & County, 2nd Board Resolution, Junior Ser B-1, RB, MBIA Insured 865 5.000%, 07/01/23 902 Honolulu City & County, 2nd Board Resolution, Junior Ser A-1, RB, MBIA Insured 815 5.000%, 07/01/22 851 Honolulu City & County, 2nd Board, Junior Ser A-1, RB, MBIA Insured 1,130 5.000%, 07/01/23 1,177 Honolulu City & County, 2nd Board, Junior Ser B-1, RB, MBIA Insured 1,485 5.000%, 07/01/24 1,547 Honolulu City & County, Board of Water Supply, Ser A, RB, FGIC Insured 2,000 5.000%, 07/01/33 2,052 Honolulu City & County, GO 1,320 5.400%, 09/27/07 1,325 625 5.250%, 03/01/17 662 Honolulu City & County, GO, ETM 230 6.000%, 12/01/09 241 Honolulu City & County, Senior Ser A, RB, FGIC Insured 2,000 5.000%, 07/01/18 2,101 1,280 5.000%, 07/01/20 1,338 Honolulu City & County, Ser A, GO 55 6.000%, 01/01/10 58 1,000 5.750%, 04/01/12 1,074 June 30, 2007 25 www.bishopstreetfunds.com Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- HAWAII -- (CONTINUED) Honolulu City & County, Ser A, GO, ETM $ 500 6.000%, 01/01/09 $ 516 95 6.000%, 01/01/10 100 Honolulu City & County, Ser A, GO, MBIA Insured 500 5.250%, 03/01/28 522 1,000 5.000%, 07/01/14 1,056 Honolulu City & County, Ser B, GO, ETM, FGIC Insured 635 5.500%, 10/01/11 674 Honolulu City & County, Ser B, RB, AMT, MBIA Insured 1,000 5.250%, 07/01/21 1,051 Honolulu City & County, Ser C, GO, FGIC Insured 565 5.125%, 07/01/11 583 1,100 5.125%, 07/01/15 1,134 2,500 5.000%, 07/01/19 2,570 Honolulu City & County, Ser C, GO, MBIA Insured 500 5.000%, 07/01/16 529 Honolulu City & County, Ser D, GO, AMT, FGIC Insured 245 4.850%, 02/01/10 249 Honolulu City & County, Ser D, GO, MBIA Insured 885 5.000%, 07/01/19 927 2,000 5.000%, 07/01/23 2,077 Honolulu City & County, Ser E, GO, FGIC Insured 1,500 5.250%, 07/01/20 1,597 Honolulu City & County, Waipahu Towers Project, Ser A, RB, AMT, GNMA Collateral 200 6.900%, 06/20/35 201 Honolulu City & County, Waste Water, 2nd Board Resolution, Junior Ser, RB, FGIC Insured 1,000 5.000%, 07/01/23 1,024 Honolulu City & County, Water Board, Ser A, RB, FGIC Insured, Pre-Refunded @ 100 (B) 1,700 4.750%, 07/01/14 1,773 2,000 4.750%, 07/01/14 2,086 Honolulu City & County, Water Board, Ser B, RB, AMT, MBIA Insured 1,000 5.250%, 07/01/20 1,053 325 5.000%, 07/01/15 339 Kauai County, Ser A, GO, FGIC Insured 1,610 5.000%, 08/01/21 1,681 1,440 5.000%, 08/01/23 1,496 1,555 5.000%, 08/01/24 1,615 Bishop Street Funds 26 Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- HAWAII -- (CONTINUED) Kauai County, Ser A, GO, FGIC Insured, Pre-Refunded @ 100 (B) $1,135 6.250%, 08/01/18 $ 1,212 1,480 6.250%, 08/01/20 1,580 1,335 6.250%, 08/01/21 1,425 1,050 6.250%, 08/01/22 1,121 Kauai County, Ser A, GO, MBIA Insured 490 5.625%, 08/01/18 518 1,500 5.000%, 08/01/25 1,533 Kauai County, Ser A, GO, MBIA Insured, Pre-Refunded @ 100 (B) 260 5.625%, 08/01/18 276 Maui County, Ser A, GO, MBIA Insured 1,000 4.750%, 07/01/25 1,011 Maui County, GO, MBIA Insured 1,100 5.000%, 03/01/24 1,140 Maui County, Ser A, GO 260 5.375%, 03/01/12 272 Maui County, Ser A, GO, FGIC Insured 150 5.000%, 03/01/13 153 Maui County, Ser A, GO, FGIC Insured, Pre-Refunded @ 101 (B) 100 5.125%, 03/01/14 102 50 5.000%, 03/01/13 51 Maui County, Ser A, GO, Pre-Refunded @ 100 (B) 225 5.375%, 03/01/12 236 Maui County, Ser B, GO, MBIA Insured 500 5.000%, 09/01/17 525 University of Hawaii, Ser A, RB, MBIA Insured 5,000 4.625%, 07/15/31 4,918 -------- 138,488 -------- ILLINOIS -- 1.0% Illinois State, Educational Facilities Authority, Northwestern University, RB 670 5.000%, 12/01/38 682 Illinois State, Finance Authority, Hospital Sisters Services, Ser A, RB 1,000 5.000%, 03/15/27 1,022 -------- 1,704 -------- INDIANA -- 0.9% Indiana State, Health & Educational Facilities Financing Authority, Clarian Health Obligation, Ser A, RB 1,500 5.000%, 02/15/39 1,493 -------- June 30, 2007 27 www.bishopstreetfunds.com Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Market Amount Value (000) (000) ------ -------- MASSACHUSETTS -- 0.3% Massachusetts State, Water Resources Authority, Ser J, RB $ 565 5.000%, 08/01/42 $ 575 -------- OKLAHOMA -- 1.2% Tulsa County, Oklahoma Industrial Authority, St. Francis Health System, RB 2,000 5.000%, 12/15/36 2,016 -------- PUERTO RICO -- 8.1% Commonwealth of Puerto Rico, GO, MBIA Insured 500 6.500%, 07/01/14 573 1,500 6.000%, 07/01/15 1,697 Commonwealth of Puerto Rico, Public Improvement, GO, FSA Insured 435 5.000%, 07/01/21 451 Commonwealth of Puerto Rico, Public Improvement, Ser A, GO 1,000 5.000%, 07/01/27 1,018 Commonwealth of Puerto Rico, Highway and Transportation Authority, Ser E, RB, FSA Insured 1,000 5.500%, 07/01/21 1,121 Puerto Rico, Electric Power Authority, Ser DD, RB, FSA Insured, Partially Pre-Refunded @ 101 (B) 1,000 5.000%, 07/01/08 1,020 Puerto Rico, Electric Power Authority, Ser HH, RB, FSA Insured, Pre-Refunded @ 101 (B) 500 5.250%, 07/01/10 524 Puerto Rico, Housing Financing Authority, Capital Funding Program, RB 2,360 5.000%, 12/01/16 2,464 Puerto Rico, Industrial Tourist Educational Medical Environmental Control Facilities, Hospital Auxilio Mutuo Obligation Group, Ser A, RB, MBIA Insured 300 6.250%, 07/01/24 300 Puerto Rico, Public Buildings Authority, Ser F, RB 3,000 5.250%, 07/01/25 3,299 Puerto Rico, University of Puerto Rico, Ser O, RB, MBIA Insured, Pre-Refunded @ 100 (B) 1,500 5.750%, 06/01/10 1,578 -------- 14,045 -------- SOUTH CAROLINA -- 0.4% Edisto Beach, GO 735 5.000%, 04/01/37 734 -------- Bishop Street Funds 28 Hawaii Municipal Bond Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Market Shares/Face Value Amount (000) (000) ------------ ------ TEXAS -- 4.3% Clint, Independent School District, GO $1,505 5.000%, 08/15/23 $ 1,563 Grayson County, Pass Through Toll, GO, FSA Insured 2,000 4.300%, 01/01/24 1,887 Harris County, Houston Texas Sports Authority, Ser A, Special RB, MBIA Insured (A) 5,000 5.400%, 11/15/40 824 Rockdale, Independent School District, GO 1,140 5.000%, 02/15/27 1,167 University of Texas, Permanent University Fund, Ser B, RB 2,000 4.500%, 07/01/33 1,892 -------- 7,333 -------- TOTAL MUNICIPAL BONDS (Cost $169,730) 170,689 -------- CASH EQUIVALENTS (C) -- 0.8% 646,397 Dreyfus Tax-Exempt Cash Management Fund, Institutional Shares, 3.470% 646 646,397 Fidelity Institutional Tax-Exempt Portfolio, Institutional Shares, 3.470% 646 -------- TOTAL CASH EQUIVALENTS (Cost $1,292) 1,292 -------- TOTAL INVESTMENTS (COST $171,022) -- 99.9% $171,981 ========
PERCENTAGES ARE BASED ON NET ASSETS OF $172,136 (000). (A) ZERO COUPON SECURITY -- THE RATE REPORTED ON THE SCHEDULE OF INVESTMENTS IS THE EFFECTIVE YIELD AT TIME OF PURCHASE. (B) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. (C) RATE SHOWN IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2007. AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY AMT -- ALTERNATIVE MINIMUM TAX COP -- CERTIFICATE OF PARTICIPATION ETM -- ESCROWED TO MATURITY FGIC -- FINANCIAL GUARANTEE INSURANCE 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 "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2007 29 www.bishopstreetfunds.com Money Market Fund (UNAUDITED) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 89.0% Commercial Paper 4.7% Certificates of Deposit/Bank Notes 4.4% Repurchase Agreement 1.9% Corporate Obligations - -------------------------------------------------------------------------------- +PERCENTAGES ARE BASED ON TOTAL INVESTMENTS.
SCHEDULE OF INVESTMENTS Face Amount Value (000) (000) ------ -------- COMMERCIAL PAPER (A) -- 89.3% AUTO FINANCE -- 3.9% BMW Capital $ 9,000 5.342%, 07/02/07 $ 8,999 -------- BANKS -- 36.8% Bank of America 3,300 5.304%, 07/05/07 3,298 6,000 5.285%, 07/27/07 5,977 Bank of Montreal 8,300 5.302%, 08/15/07 8,246 Danske 5,700 5.275%, 07/10/07 5,693 5,600 5.299%, 08/20/07 5,560 Deutsche Bank 5,500 5.283%, 07/13/07 5,490 Fortis Bank 8,000 5.285%, 08/03/07 7,961 3,000 5.318%, 08/20/07 2,978 JPMorgan Chase 11,500 5.299%, 08/29/07 11,401 Lloyds TSB Bank 3,000 5.273%, 07/13/07 2,995 6,000 5.273%, 07/26/07 5,978 UBS Finance 9,000 5.350%, 07/02/07 8,999 Westpac Capital 1,642 5.294%, 07/09/07 1,640 9,000 5.301%, 07/31/07 8,961 -------- 85,177 -------- Bishop Street Funds 30 Money Market Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Amount Value (000) (000) ------ -------- BROADCASTING & CABLE -- 2.8% Charta $ 6,500 5.294%, 07/18/07 $ 6,484 -------- FINANCIALS -- 45.8% Abbey National Treasury Services 11,000 5.297%, 08/06/07 10,942 ABN-Amro North American Finance 10,000 5.308%, 09/21/07 9,881 Atlantic Asset Securitization 5,000 5.361%, 07/12/07 4,992 6,500 5.314%, 07/16/07 6,486 CBA Financial 11,000 5.297%, 07/06/07 10,992 Chariot Funding 5,500 5.303%, 07/20/07 5,485 5,000 5.333%, 07/24/07 4,983 Dexdel 8,000 5.314%, 09/18/07 7,908 Dresdner Financial 12,100 5.294%, 07/05/07 12,093 HBOS Treasury Services 7,275 5.289%, 07/02/07 7,274 3,000 5.301%, 08/03/07 2,985 Societe Generale 11,000 5.291%, 07/26/07 10,960 Svenska Handels New York 11,000 5.301%, 07/12/07 10,982 -------- 105,963 -------- TOTAL COMMERCIAL PAPER (Cost $206,623) 206,623 -------- CERTIFICATES OF DEPOSIT/BANK NOTES -- 4.8% Citicorp 11,000 5.300%, 07/27/07 11,000 -------- TOTAL CERTIFICATES OF DEPOSIT/BANK NOTES (Cost $11,000) 11,000 -------- June 30, 2007 31 www.bishopstreetfunds.com Money Market Fund (UNAUDITED) - ----------------------------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (CONTINUED) Face Amount Value (000) (000) ------ -------- CORPORATE OBLIGATIONS (B) -- 1.8% FINANCIALS -- 1.9% General Electric Capital $ 2,300 5.445%, 07/09/07 $ 2,300 General Electric Capital MTN 2,000 5.445%, 10/17/07 2,000 -------- TOTAL CORPORATE OBLIGATIONS (Cost $4,300) 4,300 -------- REPURCHASE AGREEMENT -- 4.4% 10,200 Barclays Bank 5.000%, dated 06/29/07, to be repurchased on 07/02/07, repurchase price $10,204,505 (collateralized by a U.S. Government obligation, par value $77,962,290, 5.000%, 05/01/36 with a total market value $10,404,000) 10,200 -------- TOTAL REPURCHASE AGREEMENT (Cost $10,200) 10,200 -------- TOTAL INVESTMENTS (COST $232,123) -- 100.3% $232,123 ========
PERCENTAGES ARE BASED ON NET ASSETS OF $231,472 (000). (A) THE RATE REPORTED ON THE SCHEDULE OF INVESTMENTS IS THE EFFECTIVE YIELD AT THE TIME OF PURCHASE. (B) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE IN EFFECT ON JUNE 30, 2007. THE MATURITY DATE SHOWN IS THE NEXT SCHEDULED RESET DATE. MTN -- MEDIUM TERM NOTE COST FIGURES ARE SHOWN WITH "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 32 Treasury Money Market Fund (UNAUDITED) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS+ [GRAPHIC OMITTED] PLOT POINTS ARE AS FOLLOWS: 73.1% U.S. Treasury Obligations 26.9% Repurchase Agreement - -------------------------------------------------------------------------------- +PERCENTAGES BASED ON TOTAL INVESTMENTS.
SCHEDULE OF INVESTMENTS Face Amount Value (000) (000) ------ -------- U.S. TREASURY OBLIGATIONS (A) -- 73.3% U.S. Treasury Bills $10,000 4.740%, 08/30/07 $ 9,922 75,000 4.710%, 09/27/07 74,147 35,000 4.780%, 12/20/07 34,214 -------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $118,283) 118,283 -------- REPURCHASE AGREEMENT -- 27.0% 43,600 Barclays Bank 4.250%, dated 06/29/07, to be repurchased on 07/02/07, repurchase price $43,615,442 (collateralized by a U.S. Government obligation, par value $45,616,000, 3.125%, 04/15/09 with a total market value $44,472,119) 43,600 -------- TOTAL REPURCHASE AGREEMENT (Cost $43,600) 43,600 -------- TOTAL INVESTMENTS (COST $161,883) -- 100.3% $161,883 ========
PERCENTAGES ARE BASED ON NET ASSETS OF $161,311 (000). (A) THE RATE SHOWN REPRESENTS THE SECURITY'S EFFECTIVE YIELD AT TIME OF PURCHASE. COST FIGURES ARE SHOWN WITH "000" OMITTED. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2007 33 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 2007 (IN THOUSANDS) Large High Strategic Cap Core Grade Growth Equity Income Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------- ASSETS: Investments, at Cost $109,718 $101,143 $139,225 Repurchase Agreements, at Cost -- 5,386 18,933 ================================================================================================================= Investments, at Value $140,803 $112,810(1) $137,337(1) Repurchase Agreements, at Value -- 5,386 18,933 Receivable for Investment Securities Sold 2,383 937 -- Receivable for Fund Shares Sold 85 154 24 Dividends and Interest Receivable 33 71 1,997 Prepaid Expenses 4 2 1 - ----------------------------------------------------------------------------------------------------------------- Total Assets 143,308 119,360 158,292 - ----------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for Investment Securities Purchased 2,537 -- -- Payable for Fund Shares Redeemed 166 18 14 Income Distribution Payable -- -- 217 Collateral on Securities Loaned -- 7,823 27,497 Advisory Fees Payable 86 66 45 Administrative Fees Payable 13 11 12 Shareholder Servicing Fees Payable 12 9 11 Chief Compliance Officer Fees Payable 3 2 3 Trustees' Fees Payable 1 1 1 Other Accrued Expenses Payable 33 27 42 - ----------------------------------------------------------------------------------------------------------------- Total Liabilities 2,851 7,957 27,842 - ----------------------------------------------------------------------------------------------------------------- Net Assets $140,457 $111,403 $130,450 ================================================================================================================= Fund Shares $100,080 $ 97,297 $133,348 Undistributed Net Investment Income (Distributions in Excess of Net Investment Income/ Accumulated Net Investment Loss) (56) (7) 2 Accumulated Net Realized Gain (Loss) on Investments 9,348 2,446 (1,012) Net Unrealized Appreciation (Depreciation) on Investments 31,085 11,667 (1,888) - ----------------------------------------------------------------------------------------------------------------- Net Assets $140,457 $111,403 $130,450 ================================================================================================================= Class I Shares: Net Assets $140,457 $111,403 $130,450 Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 8,725 9,752 13,324 Net Asset Value, Offering and Redemption Price Per Share (Net Assets / Shares Outstanding) $16.10 $11.42 $9.79 =================================================================================================================
(1) INCLUDED IN "INVESTMENTS, AT VALUE" IS THE MARKET VALUE OF SECURITIES ON LOAN IN THE AMOUNTS OF $7,619,915, AND $26,995,948 FOR THE LARGE CAP CORE EQUITY AND HIGH GRADE INCOME FUNDS, RESPECTIVELY. 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 34 Bishop Street Funds (UNAUDITED) - --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 2007 (IN THOUSANDS) Hawaii Treasury Municipal Money Money Bond Market Market Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------- ASSETS: Investments, at Cost $171,022 $221,923 $118,283 Repurchase Agreements, at Cost -- 10,200 43,600 ================================================================================================================= Investments, at Value $171,981 $221,923 $118,283 Repurchase Agreements, at Value -- 10,200 43,600 Cash -- 11 51 Interest Receivable 3,399 120 10 Receivable for Fund Shares Sold 210 -- -- Prepaid Expenses 3 4 3 - ----------------------------------------------------------------------------------------------------------------- Total Assets 175,593 232,258 161,947 - ----------------------------------------------------------------------------------------------------------------- LIABILITIES: Payable for Investment Securities Purchased 2,789 -- -- Income Distribution Payable 465 640 570 Payable for Fund Shares Redeemed 81 -- -- Advisory Fees Payable 33 31 11 Shareholder Servicing Fees Payable 14 19 13 Administrative Fees Payable 10 22 14 Distribution Fees Payable 6 13 -- Chief Compliance Officer Fees Payable 3 4 3 Trustees' Fees Payable 2 2 1 Other Accrued Expenses Payable 54 55 24 - ----------------------------------------------------------------------------------------------------------------- Total Liabilities 3,457 786 636 - ----------------------------------------------------------------------------------------------------------------- Net Assets $172,136 $231,472 $161,311 ================================================================================================================= Fund Shares $170,598 $231,494 $161,362 Undistributed Net Investment Income 3 -- -- Accumulated Net Realized Gain (Loss) on Investments 576 (22) (51) Net Unrealized Appreciation on Investments 959 -- -- - ----------------------------------------------------------------------------------------------------------------- Net Assets $172,136 $231,472 $161,311 ================================================================================================================= Class I Shares: Net Assets $142,382 $168,669 $161,311 Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 13,529 168,694 161,363 Net Asset Value, Offering and Redemption Price Per Share (Net Assets / Shares Outstanding) $10.52 $1.00 $1.00 ================================================================================================================= Class A Shares: Net Assets $ 29,754 $ 62,803 -- Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 2,827 62,802 -- Net Asset Value and Redemption Price Per Share (Net Assets / Shares Outstanding) $10.53 $1.00 -- ================================================================================================================= Maximum Offering Price Per Shares -- Class A ($10.53 / 97.00%) $10.86 N/A N/A =================================================================================================================
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, 2007 35 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2007 (IN THOUSANDS) Large High Strategic Cap Core Grade Growth Equity Income Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividend Income $ 693 $ 745 $ 45 Interest Income -- -- 3,411 Securities Lending, Net -- 4 31 Foreign Taxes Withheld (2) (3) -- - ----------------------------------------------------------------------------------------------------------------- Total Investment Income 691 746 3,487 - ----------------------------------------------------------------------------------------------------------------- EXPENSES: Investment Adviser Fees 521 393 373 Shareholder Servicing Fee 176 133 170 Administrative Fees 141 106 136 Trustees' Fees 5 4 5 Chief Compliance Officer Fees 2 1 2 Transfer Agent Fees 23 23 22 Professional Fees 20 15 19 Printing Fees 12 9 12 Custody Fees 7 5 7 Registration Fees -- 1 1 Miscellaneous Expenses 4 3 10 - ----------------------------------------------------------------------------------------------------------------- Total Expenses 911 693 757 - ----------------------------------------------------------------------------------------------------------------- Less Waivers: Investment Adviser Fees -- (10) (81) Shareholder Servicing Fees (106) (80) (102) Administrative Fees (60) (45) (58) - ----------------------------------------------------------------------------------------------------------------- Total Waivers (166) (135) (241) - ----------------------------------------------------------------------------------------------------------------- Total Net Expenses 745 558 516 - ----------------------------------------------------------------------------------------------------------------- Net Investment Income (Loss) (54) 188 2,971 - ----------------------------------------------------------------------------------------------------------------- Net Realized Gain (Loss) on Investments 8,612 2,154 (235) Change in Unrealized Appreciation (Depreciation) on Investments 2,794 5,651 (1,712) - ----------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments 11,406 7,805 (1,947) - ----------------------------------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations $11,352 $7,993 $ 1,024 =================================================================================================================
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 36 Bishop Street Funds (UNAUDITED) - --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2007 (IN THOUSANDS) Hawaii Treasury Municipal Money Money Bond Market Market Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Dividend Income $ 28 $ -- $ -- Interest Income 3,778 5,975 4,186 - ----------------------------------------------------------------------------------------------------------------- Total Investment Income 3,806 5,975 4,186 - ----------------------------------------------------------------------------------------------------------------- EXPENSES: Investment Adviser Fees 297 335 241 Shareholder Servicing Fee 212 279 201 Administrative Fees 170 224 161 Distribution Fees, Class A 37 75 -- Trustees' Fees 7 9 6 Chief Compliance Officer Fees 2 2 1 Transfer Agent Fees 38 40 24 Professional Fees 24 32 22 Printing Fees 14 19 14 Custody Fees 8 12 8 Registration Fees 1 2 2 Miscellaneous Expenses 16 8 21 - ----------------------------------------------------------------------------------------------------------------- Total Expenses 826 1,037 701 - ----------------------------------------------------------------------------------------------------------------- Less Waivers: Investment Adviser Fees (86) (139) (161) Shareholder Servicing Fees (127) (167) (121) Administrative Fees (110) (95) (68) - ----------------------------------------------------------------------------------------------------------------- Total Waivers (323) (401) (350) - ----------------------------------------------------------------------------------------------------------------- Total Net Expenses 503 636 351 - ----------------------------------------------------------------------------------------------------------------- Net Investment Income 3,303 5,339 3,835 - ----------------------------------------------------------------------------------------------------------------- Net Realized Gain on Investments 320 -- 6 Change in Unrealized Depreciation on Investments (4,164) -- -- - ----------------------------------------------------------------------------------------------------------------- Net Realized and Unrealized Gain (Loss) on Investments (3,844) -- 6 - ----------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets Resulting from Operations $ (541) $5,339 $3,841 =================================================================================================================
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, 2007 37 www.bishopstreetfunds.com Bishop Street Funds - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2006 (IN THOUSANDS) Strategic Large Cap Core Growth Fund Equity Fund - ---------------------------------------------------------------------------------------------------------- 2007 2006 2007 2006* - ---------------------------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income (Loss) $ (54) $ (316) $ 188 $ 310 Net Realized Gain on Investments 8,612 7,651 2,154 300 Change in Unrealized Appreciation on Investments 2,794 5,124 5,651 6,016 - ---------------------------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations 11,352 12,459 7,993 6,626 - ---------------------------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares -- -- (195) (318) Capital Gains: Class I Shares -- (8,326) -- -- - ---------------------------------------------------------------------------------------------------------- Total Dividends and Distributions -- (8,326) (195) (318) - ---------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 4,590 32,077 7,718 100,103 Reinvestments of Cash Distributions -- 5,766 153 275 Cost of Shares Redeemed (18,414) (22,388) (7,116) (3,836) - ---------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets From Capital Share Transactions (13,824) 15,455 755 96,542 - ---------------------------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets (2,472) 19,588 8,553 102,850 - ---------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 142,929 123,341 102,850 -- - ---------------------------------------------------------------------------------------------------------- End of Period $140,457 $142,929 $111,403 $102,850 ========================================================================================================== Accumulated Net Investment Loss/ Distributions in Excess of Net Investment Income $ (56) $ (2) $ (7) $ -- ========================================================================================================== SHARE TRANSACTIONS: Class I Shares: Shares Issued 294 2,180 704 10,032 Shares Issued in Lieu of Cash Distributions -- 395 14 27 Shares Redeemed (1,201) (1,539) (650) (375) - ---------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Shares Outstanding from Share Transactions (907) 1,036 68 9,684 ==========================================================================================================
*COMMENCED OPERATIONS ON MAY 3, 2006. 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 38 Bishop Street Funds - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2006 (IN THOUSANDS) High Grade Hawaii Municipal Income Fund Bond Fund - ---------------------------------------------------------------------------------------------------------- 2007 2006 2007 2006 - ---------------------------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 2,971 $ 5,601 $ 3,303 $ 6,726 Net Realized Gain (Loss) on Investments (235) (681) 320 842 Change in Unrealized Depreciation on Investments (1,712) (1,041) (4,164) (354) - ---------------------------------------------------------------------------------------------------------- Increase (Decrease) in Net Assets Resulting from Operations 1,024 3,879 (541) 7,214 - ---------------------------------------------------------------------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares (2,971) (5,603) (2,797) (5,556) Class A Shares -- -- (561) (1,160) Capital Gains: Class I Shares -- -- -- (486) Class A Shares -- -- -- (107) - ---------------------------------------------------------------------------------------------------------- Total Dividends and Distributions (2,971) (5,603) (3,358) (7,309) - ---------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 7,496 21,382 14,402 18,308 Reinvestments of Cash Distributions 1,666 3,249 353 838 Cost of Shares Redeemed (18,213) (22,898) (7,494) (25,935) - ---------------------------------------------------------------------------------------------------------- Total Class I Capital Share Transactions (9,051) 1,733 7,261 (6,789) - ---------------------------------------------------------------------------------------------------------- Class A Shares: Proceeds from Shares Issued -- -- 1,256 1,111 Reinvestments of Cash Distributions -- -- 224 543 Cost of Shares Redeemed -- -- (1,460) (2,744) - ---------------------------------------------------------------------------------------------------------- Total Class A Capital Share Transactions -- -- 20 (1,090) - ---------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Capital Share Transactions (9,051) 1,733 7,281 (7,879) - ---------------------------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets (10,998) 9 3,382 (7,974) - ---------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 141,448 141,439 168,754 176,728 - ---------------------------------------------------------------------------------------------------------- End of Period $130,450 $141,448 $172,136 $168,754 ========================================================================================================== Undistributed Net Investment Income $ 2 $ 3 $ 3 $ 58 ========================================================================================================== SHARE TRANSACTIONS: Class I Shares: Shares Issued 758 2,158 1,349 1,709 Shares Issued in Lieu of Cash Distributions 168 328 33 78 Shares Redeemed (1,834) (2,320) (701) (2,425) - ---------------------------------------------------------------------------------------------------------- Total Class I Share Transactions (908 166 681 (638) - ---------------------------------------------------------------------------------------------------------- Class A Shares: Shares Issued -- -- 117 104 Shares Issued in Lieu of Cash Distributions -- -- 21 51 Shares Redeemed -- -- (136) (256) - ---------------------------------------------------------------------------------------------------------- Total Class A Share Transactions -- -- 2 (101) - ---------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Shares Outstanding from Share Transactions (908) 166 683 (739) ==========================================================================================================
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, 2007 39 www.bishopstreetfunds.com Bishop Street Funds - --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2006 (IN THOUSANDS) Money Market Treasury Money Fund Market Fund - ---------------------------------------------------------------------------------------------------------- 2007 2006 2007 2006 - ---------------------------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 5,339 $ 9,883 $ 3,835 $ 8,671 Net Realized Gain (Loss) on Investments -- 1 6 (3) - ---------------------------------------------------------------------------------------------------------- Increase in Net Assets Resulting from Operations 5,339 9,884 3,841 8,668 - ---------------------------------------------------------------------------------------------------------- DIVIDENDS TO SHAREHOLDERS: Net Investment Income: Class I Shares (3,933) (7,975) (3,835) (8,671) Class A Shares (1,406) (1,904) -- -- - ---------------------------------------------------------------------------------------------------------- Total Dividends (5,339) (9,879) (3,835) (8,671) - ---------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE): Class I Shares: Proceeds from Shares Issued 179,920 434,439 233,283 410,744 Reinvestments of Cash Distributions 152 284 6 17 Cost of Shares Redeemed (170,446) (446,137) (230,348) (476,008) - ---------------------------------------------------------------------------------------------------------- Total Class I Capital Share Transactions 9,626 (11,414) 2,941 (65,247) - ---------------------------------------------------------------------------------------------------------- Class A Shares: Proceeds from Shares Issued 64,131 164,007 -- -- Reinvestments of Cash Distributions 1,406 1,905 -- -- Cost of Shares Redeemed (61,947) (142,232) -- -- - ---------------------------------------------------------------------------------------------------------- Total Class A Capital Share Transactions 3,590 23,680 -- -- - ---------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Net Assets from Capital Share Transactions 13,216 12,266 2,941 (65,247) - ---------------------------------------------------------------------------------------------------------- Total Increase (Decrease) in Net Assets 13,216 12,271 2,947 (65,250) - ---------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of Period 218,256 205,985 158,364 223,614 - ---------------------------------------------------------------------------------------------------------- End of Period $ 231,472 $ 218,256 $ 161,311 $ 158,364 ========================================================================================================== Undistributed Net Investment Income $ -- $ -- $ -- $ -- ==========================================================================================================
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 40 This page intentionally left Blank. Bishop Street Funds - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 (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 --------- ------------- -------------- ---------- ---------- ------- ------------- - --------------------- STRATEGIC GROWTH FUND - --------------------- CLASS I SHARES: 2007(1) $14.84 $(0.01) $ 1.27 $ 1.26 $ -- $ -- $ -- 2006(1) 14.35 (0.03) 1.41 1.38 -- (0.89) (0.89) 2005(1) 13.08 (0.05) 1.56 1.51 -- (0.24) (0.24) 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) -- -- -- - -------------------------- LARGE CAP CORE EQUITY FUND - -------------------------- CLASS I SHARES: 2007(1) $10.62 $ 0.02 $ 0.80 $ 0.82 $(0.02) $ -- $(0.02) 2006(1)(3) 10.00 0.04 0.62 0.66 (0.04) -- (0.04) - ---------------------- HIGH GRADE INCOME FUND - ---------------------- CLASS I SHARES: 2007(1) $ 9.94 $ 0.22 $(0.15) $ 0.07 $(0.22) $ -- $(0.22) 2006(1) 10.06 0.41 (0.12) 0.29 (0.41) -- (0.41) 2005(1) 10.33 0.39 (0.19) 0.20 (0.39) (0.08) (0.47) 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) - -------------------------- HAWAII MUNICIPAL BOND FUND - -------------------------- CLASS I SHARES: 2007(1) $10.77 $ 0.21 $(0.25) $(0.04) $(0.21) $ -- $(0.21) 2006(1) 10.77 0.43 0.04 0.47 (0.43) (0.04) (0.47) 2005(1) 11.02 0.43 (0.16) 0.27 (0.43) (0.09) (0.52) 2004(1) 11.21 0.44 (0.07) 0.37 (0.44) (0.12) (0.56) 2003(1) 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) CLASS A SHARES: 2007(1) $10.77 $ 0.20 $(0.24) $(0.04) $(0.20) $ -- $(0.20) 2006(1) 10.77 0.40 0.04 0.44 (0.40) (0.04) (0.44) 2005(1) 11.02 0.41 (0.16) 0.25 (0.41) (0.09) (0.50) 2004(1) 11.21 0.41 (0.07) 0.34 (0.41) (0.12) (0.53) 2003(1) 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)
+ 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. FEE WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. * ANNUALIZED (1) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES. (2) COMMENCED OPERATIONS ON JULY 1, 2002. (3) COMMENCED OPERATIONS ON MAY 3, 2006. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. Bishop Street Funds 42 - --------------------------------------------------------------------------------
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 --------- ------- ----------- ----------- ----------------- ------------- --------- - --------------------- STRATEGIC GROWTH FUND - --------------------- CLASS I SHARES: 2007(1) $16.10 8.49% $140,457 1.06%* 1.29%* (0.08)%* 26% 2006(1) 14.84 9.78 142,929 1.06 1.30 (0.23) 53 2005(1) 14.35 11.52 123,341 1.07 1.31 (0.35) 55 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 - -------------------------- LARGE CAP CORE EQUITY FUND - -------------------------- CLASS I SHARES: 2007(1) $11.42 7.73% $111,403 1.05%* 1.30%* 0.35%* 28% 2006(1)(3) 10.62 6.63 102,850 1.05* 1.32* 0.64* 51 - ---------------------- HIGH GRADE INCOME FUND - ---------------------- CLASS I SHARES: 2007(1) $ 9.79 0.65% $130,450 0.76%* 1.11%* 4.38%* 13% 2006(1) 9.94 2.96 141,448 0.76 1.12 4.12 41 2005(1) 10.06 2.00 141,439 0.76 1.13 3.82 45 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 - -------------------------- HAWAII MUNICIPAL BOND FUND - -------------------------- CLASS I SHARES: 2007(1) $10.52 (0.36)% $142,382 0.55%* 0.93%* 3.94%* 12% 2006(1) 10.77 4.42 138,333 0.55 0.93 3.99 47 2005(1) 10.77 2.51 145,213 0.55 0.93 3.97 41 2004(1) 11.02 3.36 148,575 0.55 0.92 3.97 40 2003(1) 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 CLASS A SHARES: 2007(1) $10.53 (0.39)% $ 29,754 0.80%* 1.18%* 3.69%* 12% 2006(1) 10.77 4.16 30,421 0.80 1.18 3.74 47 2005(1) 10.77 2.25 31,515 0.80 1.18 3.72 41 2004(1) 11.02 3.10 30,484 0.80 1.17 3.72 40 2003(1) 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
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2007 43 www.bishopstreetfunds.com Bishop Street Funds - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2007 (UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
INVESTMENT ACTIVITIES ----------------------------- TOTAL DIVIDENDS NET ASSET NET REALIZED INVESTMENT FROM VALUE, NET AND UNREALIZED ACTIVITIES NET BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT TOTAL OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME DIVIDENDS --------- ---------- -------------- ---------- ---------- --------- - ----------------- MONEY MARKET FUND - ----------------- CLASS I SHARES: 2007(1) $1.00 $ 0.02 $ -- $ 0.02 $(0.02) $(0.02) 2006(1) 1.00 0.05 -- 0.05 (0.05) (0.05) 2005(1) 1.00 0.03 -- 0.03 (0.03) (0.03) 2004(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2003(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2002 1.00 0.01 -- 0.01 (0.01) (0.01) CLASS A SHARES: 2007(1) $1.00 $ 0.02 $ -- $ 0.02 $(0.02) $(0.02) 2006(1) 1.00 0.04 -- 0.04 (0.04) (0.04) 2005(1) 1.00 0.03 -- 0.03 (0.03) (0.03) 2004(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2003(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2002 1.00 0.01 -- 0.01 (0.01) (0.01) - -------------------------- TREASURY MONEY MARKET FUND - -------------------------- CLASS I SHARES: 2007(1) $1.00 $ 0.02 $ -- $ 0.02 $(0.02) $(0.02) 2006(1) 1.00 0.04 -- 0.04 (0.04) (0.04) 2005(1) 1.00 0.03 -- 0.03 (0.03) (0.03) 2004(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2003(1) 1.00 0.01 -- 0.01 (0.01) (0.01) 2002 1.00 0.01 -- 0.01 (0.01) (0.01)
+ 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. FEE WAIVERS ARE IN EFFECT; IF THEY HAD NOT BEEN IN EFFECT, PERFORMANCE WOULD HAVE BEEN LOWER. * ANNUALIZED (1) 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 44 - --------------------------------------------------------------------------------
RATIO OF RATIO OF EXPENSES RATIO OF NET NET ASSET NET ASSETS, EXPENSES TO TO AVERAGE INVESTMENT VALUE, END OF AVERAGE NET ASSETS INCOME END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS --------- ------- --------- ----------- ----------------- ------------ - ----------------- MONEY MARKET FUND - ----------------- CLASS I SHARES: 2007(1) $1.00 2.43% $168,669 0.50%* 0.86%* 4.85%* 2006(1) 1.00 4.63 159,044 0.50 0.86 4.55 2005(1) 1.00 2.78 170,455 0.50 0.87 2.73 2004(1) 1.00 0.92 167,910 0.50 0.84 0.90 2003(1) 1.00 0.76 182,166 0.50 0.83 0.76 2002 1.00 1.34 238,498 0.50 0.81 1.33 CLASS A SHARES: 2007(1) $1.00 2.30% $ 62,803 0.75%* 1.11%* 4.60%* 2006(1) 1.00 4.37 59,212 0.75 1.11 4.33 2005(1) 1.00 2.53 35,530 0.75 1.12 2.60 2004(1) 1.00 0.67 17,824 0.75 1.09 0.65 2003(1) 1.00 0.50 17,440 0.75 1.08 0.41 2002 1.00 1.08 188 0.75 1.06 1.10 TREASURY MONEY MARKET FUND CLASS I SHARES: 2007(1) $1.00 2.39% $161,311 0.44%* 0.87%* 4.77%* 2006(1) 1.00 4.51 158,364 0.44 0.87 4.39 2005(1) 1.00 2.62 223,614 0.44 0.87 2.61 2004(1) 1.00 0.91 208,153 0.44 0.84 0.89 2003(1) 1.00 0.74 270,365 0.44 0.83 0.75 2002 1.00 1.29 331,678 0.44 0.83 1.28
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2007 45 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- 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 six funds (each a Fund, collectively the "Funds") which includes the Strategic Growth Fund, Large Cap Core 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. 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 increases and decreases in net assets from operations 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. Debt securities are priced based upon valuations provided by independent, third-party pricing agents, if available. 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 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. Bishop Street Funds 46 (UNAUDITED) - -------------------------------------------------------------------------------- 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 delisted 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 specific identification. Interest income is recorded on the accrual basis; dividend income is recorded on ex-dividend date. Discounts and premiums are accreted or amortized over the life of each security and are recorded as interest income. The Strategic Growth, Large Cap Core 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 (as defined in 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 Funds may be delayed or limited. June 30, 2007 47 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- 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 Strategic Growth and Large Cap Core Equity Funds declare and pay dividends from any net investment income, if available, on a quarterly basis. Any netrealized 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. At June 30, 2007, there were no illiquid securities held by the Funds. CASH OVERDRAFT CHARGES Per the terms of an informal agreement with Union Bank of California, N.A., the custodian of the Funds, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of 110% of the current Fed funds rate. Cash overdraft charges are included in miscellaneous expenses on the Statements of Operations. 3. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENT Investment advisory services are provided to the Funds by Bishop Street Capital Management (the "Adviser"), a registered adviser and wholly owned subsidiary of First Hawaiian Bank. First Hawaiian Bank is a subsidiary of Banc West Corporation, itself a subsidiary of BNP Paribas. The Adviser is entitled to receive an annual fee of 0.74% of the average daily net assets of the Strategic Growth and the Large Cap Core 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 Bishop Street Funds 48 (UNAUDITED) - -------------------------------------------------------------------------------- are as follows: Strategic Growth Fund (Class I) 1.06%, Large Cap Core Equity Fund (Class I) 1.05%, 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. Fischer Francis Trees & Watts Inc. ("FFTW") serves as the investment sub-adviser for the Money Market Funds, pursuant to a sub-adviser agreement dated December 15, 2006 as approved by shareholders on December 15, 2006. 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. Lotsoff Capital Management ("Lotsoff") serves as the investment sub-adviser for the Large Cap Core Equity Fund pursuant to a sub-adviser agreement dated April 28, 2006. Lotsoff is entitled to receive from the Adviser a fee, computed daily and paid monthly, at the annual rate of 0.24% of the average daily net assets of the Large Cap Core Equity Fund up to (but not including) $300 million, 0.225% of the average daily net assets of the Large Cap Core Equity Fund up to (but not including) $1 billion and 0.20% of the average daily net assets of the Large Cap Core Equity Fund in excess of $1 billion. 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 administrative fee to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. 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. June 30, 2007 49 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- 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 shareholder servicing fee to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. 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 33(1)/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. Although the risk of lending is mitigated by the collateral, a Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return them. Securities lending on the Statements of Operations is net of commissions to the security lending agent. Bishop Street Funds 50 (UNAUDITED) - -------------------------------------------------------------------------------- 6. INVESTMENT TRANSACTIONS The cost of security purchases and the proceeds from the sale and maturities of securities, other than short-term investments for the six-month period ended June 30, 2007 are presented below for the Funds. Strategic Large High Grade Hawaii Growth Cap Core Income Municipal Fund Equity Fund Fund Bond Fund (000) (000) (000) (000) ----------- -------------- ------------- ------------ Purchases U.S. Government Securities $ -- $ -- $ 7,756 $ -- Other 36,406 30,396 8,740 30,268 Sales and Maturities U.S. Government Securities $ -- $ -- $11,079 $ -- Other 50,033 29,642 12,365 20,600 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 substantially all of its taxable income and net capital gains. Accordingly, no provision 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 undistributed net investment income/(loss), paid-in capital or accumulated net realized gain/(loss), as appropriate, in the period that the differences arise. June 30, 2007 51 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- Accordingly, the following permanent differences, primarily attributable to paydown gains and losses have been reclassified: Undistributed Accumulated Net Investment Net Realized Income (Loss) Gain (Loss) (000) (000) -------------- ------------ High Grade Income Fund $(1) $1 Theses reclassifications had no effect on net assets or net asset value per share. The tax character of dividends and distributions declared during the years ended December 31, 2006 and December 31, 2005 were as follows: Ordinary Tax Exempt Long-Term Income Income Capital Gain Total (000) (000) (000) (000) ------------ ------------ ------------ ----------- Strategic Growth Fund 2006 $ 93 $ -- $8,233 $8,326 2005 -- -- 2,019 2,019 Large Cap Core Equity Fund 2006 $ 318 $ -- $ -- $ 318 High Grade Income Fund 2006 $5,603 $ -- $ -- $5,603 2005 6,284 -- 379 6,663 Hawaii Municipal Bond Fund 2006 $ 67 $6,717 $ 525 $7,309 2005 24 7,000 1,411 8,435 Money Market Fund 2006 $9,879 $ -- $ -- $9,879 2005 5,599 -- -- 5,599 Treasury Money Market Fund 2006 $8,671 $ -- $ -- $8,671 2005 6,178 -- -- 6,178 Bishop Street Funds 52 (UNAUDITED) - -------------------------------------------------------------------------------- As of December 31, 2006, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:
Large Cap Treasury Strategic Core High Grade Hawaii Money Money Growth Equity Income Municipal Market Market Fund Fund Fund Bond Fund Fund Fund (000) (000) (000) (000) (000) (000) --------- --------- ---------- --------- ------- -------- Undistributed net investment income $ -- $ 410 $ 492 $ 132 $ 930 $ 647 Undistributed tax exempt income -- -- -- 557 -- -- Undistributed long-term capital gain 862 -- -- 127 -- -- Capital loss carryforwards -- -- (642) -- (22) (57) Post-October losses -- -- (83) -- -- -- Other temporary differences (1) -- (489) (556) (930) (647) Unrealized appreciation (depreciation) 28,164 5,898 (229) 5,177 -- -- ------- ------ ----- ------ ----- ----- Total Distributable Earnings (Accumulated Losses) $29,025 $6,308 $(951) $5,437 $ (22) $ (57) ======= ====== ===== ====== ===== =====
Post-October losses represent losses realized on investment transactions from November 1, 2006 through December 31, 2006 that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year. June 30, 2007 53 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- 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 as follows: High Treasury Grade Money Money Income Market Market Fund Fund Fund (000) (000) (000) ------ ------ -------- Dec. 2008 $ -- $ 1 $-- Dec. 2009 -- 18 -- Dec. 2012 -- -- 27 Dec. 2013 -- 3 27 Dec. 2014 642 -- 3 ---- --- ---- Total $642 $22 $57 ==== === === During the year ended December 31, 2006, the Money Market Fund utilized capital loss carryforwards of $838 to offset realized capital gains. The aggregate gross unrealized appreciation and depreciation of securities held by the Strategic Growth, Large Cap Core Equity, High Grade Income, and Hawaii Municipal Bond Funds for Federal income tax purposes at June 30, 2007 were as follows: Strategic Large Cap High Grade Hawaii Growth Core Income Municipal Fund Equity Fund Fund Bond Fund (000) (000) (000) (000) -------- ----------- ---------- --------- Federal Tax Cost $109,718 $106,633 $158,158 $171,021 -------- -------- -------- -------- Gross Unrealized Appreciation 31,958 13,541 848 2,492 Gross Unrealized Depreciation (873) (1,978) (2,736) (1,532) -------- -------- -------- -------- Net Unrealized Appreciation (Depreciation) $ 31,085 $ 11,563 $ (1,888) $ 960 ======== ======== ======== ====== Bishop Street Funds 54 (UNAUDITED) - -------------------------------------------------------------------------------- 8. RISKS 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. 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. 9. LINE OF CREDIT The Funds entered into an agreement which enables them to participate in a $2 million unsecured committed revolving line of credit with Union Bank of California, N.A. (the "Bank"). The proceeds from the borrowings shall be used to finance the Funds short term general working capital requirements, including the funding of shareholder redemptions. Interest is charged to the Funds based on their borrowings at the current reference rate minus 1%. For the six months ended June 30, 2007, the Funds had no borrowings under the agreement. 10. OTHER At June 30, 2007, the percentage of total shares outstanding held by shareholders for each Fund, which comprised an omnibus account that was held on behalf of several individual shareholders, was as follows: Number of % of Outstanding Shareholders Shares ------------ ---------------- Strategic Growth Fund, Class I Shares 1 91.96% Large Cap Core Equity Fund, Class I Shares 1 94.60 High Grade Income Fund, Class I Shares 2 95.14 Hawaii Municipal Bond Fund, Class I Shares 1 90.76 Hawaii Municipal Bond Fund, Class A Shares 2 27.50 Money Market Fund, Class I Shares 1 96.20 Money Market Fund, Class A Shares 1 99.97 Treasury Money Market Fund, Class I Shares 1 99.81 June 30, 2007 55 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- 11. NEW ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB INTERPRETATION NO. 48, "ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Funds' tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 was required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Based on its analysis, management has determined that the adoption of FIN 48 did not have a material impact to the Fund's financial statements upon adoption. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from the FASB, and on-going analyses of and changes to tax laws, regulations and interpretations thereof. In September 2006, the FASB issued STATEMENT ON FINANCIAL ACCOUNTING STANDARDS ("SFAS") NO. 157, "FAIR VALUE MEASUREMENTS." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of June 30, 2007, the Funds do not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements reported on the Statements of Changes in net assets for a fiscal period. Bishop Street Funds 56 Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES 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. June 30, 2007 57 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------- Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During 1/1/07 6/30/07 Ratios Period* - ----------------------------------------------------------------------------------------------------------- STRATEGIC GROWTH FUND -- CLASS I - ----------------------------------------------------------------------------------------------------------- ACTUAL FUND RETURN $1,000.00 $1,084.90 1.06% $5.48 HYPOTHETICAL 5% RETURN 1,000.00 1,019.54 1.06 5.31 - ----------------------------------------------------------------------------------------------------------- LARGE CAP CORE EQUITY FUND -- CLASS I - ----------------------------------------------------------------------------------------------------------- ACTUAL FUND RETURN $1,000.00 $1,077.30 1.05% $5.41 HYPOTHETICAL 5% RETURN 1,000.00 1,019.59 1.05 5.26 - ----------------------------------------------------------------------------------------------------------- HIGH GRADE INCOME FUND -- CLASS I - ----------------------------------------------------------------------------------------------------------- ACTUAL FUND RETURN $1,000.00 $1,006.50 0.76% $3.78 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 $ 996.40 0.55% $2.72 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 $ 996.10 0.80% $3.96 HYPOTHETICAL 5% RETURN 1,000.00 1,020.83 0.80 4.01 - ----------------------------------------------------------------------------------------------------------- MONEY MARKET FUND -- CLASS I - ----------------------------------------------------------------------------------------------------------- ACTUAL FUND RETURN $1,000.00 $1,024.30 0.50% $2.51 HYPOTHETICAL 5% RETURN 1,000.00 1,022.32 0.50 2.51 - ----------------------------------------------------------------------------------------------------------- MONEY MARKET FUND -- CLASS A - ----------------------------------------------------------------------------------------------------------- ACTUAL FUND RETURN $1,000.00 $1,023.00 0.75% $3.76 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 $1,023.90 0.44% $2.21 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). Bishop Street Funds 58 Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS The continuance of the investment advisory agreement with Bishop Street Capital Management (the "Adviser") and the sub-advisory agreement with BNP Paribas Asset Management, Inc. ("BNP PAM") must be specifically approved at least annually 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 (the "Independent Trustees"), as defined in the Investment Company Act of 1940, 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. In preparation for the meeting, the Board requests and reviews a wide variety of information from the Adviser and BNP PAM. The Trustees use this information, as well as information that the Adviser, BNP PAM, and other service providers may submit to the Board, to help them decide whether to renew the agreements for another year. In preparation for a meeting held on February 20-21, 2007, at which the Board considered the renewal of the agreements with the Adviser and BNP PAM, the Board requested and received materials from the Adviser and BNP PAM about: (a) the quality of the Adviser's and BNP PAM's investment management and other services; (b) the Adviser's and BNP PAM's investment management personnel; (c) the Adviser's and BNP PAM's operations and financial condition; (d) the Adviser's and BNP PAM's brokerage practices (including any soft dollar arrangements) and investment strategies; (e) the level of the advisory fees that the Adviser and BNP PAM charge the Funds compared with the fees they charge to comparable mutual funds or accounts; (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 and BNP PAM's compliance systems; (i) the Adviser's and BNP PAM's policies and procedures for personal securities transactions; (j) the Adviser's and BNP PAM's reputation, expertise and resources in domestic financial markets; and (k) each Fund's performance compared with similar mutual funds. Representatives from the Adviser and BNP PAM presented additional oral and written information to the Board at the meeting to help the Board evaluate the Adviser's and BNP PAM's fees and other aspects of the agreements. The Board also considered June 30, 2007 59 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- information presented by these and other service providers at meetings held 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. Based on the Board's deliberations and evaluation of the information it received, the Board, including the Independent Trustees, approved the agreements and the selection of the Adviser and BNP PAM, and determined that the compensation under the agreements is fair and reasonable in light of the services to be performed. 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 and BNP PAM. In this regard, the Trustees evaluated, among other things, the Adviser's and BNP PAM's personnel, experience, track record, and compliance program. The Board considered the background and experience of the Adviser's and BNP PAM'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. The Board also reviewed information pertaining to the Adviser's and BNP PAM'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 and BNP PAM 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 and Bishop Street Funds 60 (UNAUDITED) - -------------------------------------------------------------------------------- BNP PAM's explanations regarding specific performance issues. The Board concluded that, within the context of its full deliberations, the performance of the Funds, the Adviser, and BNP PAM 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 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 other service providers' voluntary waiver and/or reimbursement of fees and expenses, where applicable, to prevent total expenses from exceeding a specified amount and that, due to these waivers and/or reimbursements, 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. 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 and/or reimbursements by the Adviser and other service providers. The Board also considered the potential economies of scale and other efficiencies that may result from increases in the Funds' asset levels. The Board concluded that, within the context of its full deliberations, the Funds obtain reasonable benefit from economies of scale. June 30, 2007 61 www.bishopstreetfunds.com Bishop Street Funds (UNAUDITED) - -------------------------------------------------------------------------------- SHAREHOLDER VOTING RESULTS At a special meeting held on December 15, 2006, the shareholders of the Bishop Street Money Market Fund and Bishop Street Treasury Money Market Fund voted to approve a new investment sub-advisory agreement between Bishop Street Funds, on behalf of the Funds, Bishop Street Capital Management, and Fischer, Francis, Trees & Watts, Inc. The results of the voting were as follows: % OF % OF SHARES SHARES SHARES VOTED VOTED OUTSTANDING ------------- --------- ----------- 1. BISHOP STREET MONEY MARKET FUND FOR 118,967,070 99.63% 51.44% AGAINST 396,375 0.33% 0.17% ABSTAIN 41,623 0.04% 0.01% ------------- --------- -------- TOTAL 119,405,068 100.00% 51.62% 2. BISHOP STREET TREASURY MONEY MARKET FUND FOR 103,524,370 100.00% 55.69% AGAINST -- -- -- ABSTAIN 2,016 0.00% 0.00% ------------- --------- -------- TOTAL 103,526,386 100.00% 55.69% Bishop Street Funds 62 NOTES NOTES [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 FUNDS 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 FUNDS 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-004-1300 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. Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form. 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/ James F. Volk ------------------------ James F. Volk, President Date: August 20, 2007 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/ James F. Volk ------------------------ James F. Volk, President Date: August 20, 2007 By (Signature and Title)* /s/ Michael Lawson ------------------------ Michael Lawson Controller & CFO Date: August 20, 2007 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 bishop302cert607_jv.txt BISHOP STREET 302 CERT 6_07 JV CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, James F. Volk, 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 20, 2007 /s/ James F. Volk - --------------------- James F. Volk President EX-99.CERT 3 bishop302cert607_ml.txt BISHOP STREET 302 CERT 6_07 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 20, 2007 /s/ Michael Lawson - ----------------------- Michael Lawson Controller & CFO EX-99.906CERT 4 bishop906cert607_jv.txt BISHOP STREET 906 CERT 6_07 JV 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 December 31, 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 20, 2007 /s/ James F. Volk --------------------- James F. Volk President EX-99.906CERT 5 bishop906cert607_ml.txt BISHOP STREET 906 CERT 6_07 ML CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Controller and CFO of the Bishop Street Funds (the "Funds"), with respect to the Funds' Form N-CSR for the period ended December 31, 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 20, 2007 /s/ Michael Lawson ----------------------- Michael Lawson Controller & CFO -----END PRIVACY-ENHANCED MESSAGE-----