-----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, Wx6yTUIGQJrOPbAShTPTEm3F6qPKg3myZuuPDuAf6KWya1bjFb6Y3V1XxI150sR8 UOj+oede2lqXgbe98nIKiw== 0000950123-09-041106.txt : 20090904 0000950123-09-041106.hdr.sgml : 20090904 20090904105528 ACCESSION NUMBER: 0000950123-09-041106 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090904 DATE AS OF CHANGE: 20090904 EFFECTIVENESS DATE: 20090904 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: 091055166 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 GOVERNMENT 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 g52785_bishopstreet-ncsrs.txt G52785_BISHOPSTREET-NCSRS.TXT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM N-CSRS ---------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-08572 BISHOP STREET FUNDS (Exact name of registrant as specified in charter) ---------- 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, 2009 DATE OF REPORTING PERIOD: JUNE 30, 2009 ITEM 1. REPORTS TO STOCKHOLDERS. (GRAPHIC) BISHOP STREET FUNDS SEMI-ANNUAL REPORT JUNE 30, 2009 STRATEGIC GROWTH FUND LARGE CAP CORE EQUITY FUND HIGH GRADE INCOME FUND HAWAII MUNICIPAL BOND FUND GOVERNMENT MONEY MARKET FUND TREASURY MONEY MARKET FUND INVESTMENT ADVISER BISHOP STREET CAPITAL MANAGEMENT (BISHOP STREET FUNDS LOGO) 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 SCHEDULES OF INVESTMENTS Strategic Growth Fund ................................................. 4 Large Cap Core Equity Fund ............................................ 7 High Grade Income Fund ................................................ 13 Hawaii Municipal Bond Fund ............................................ 22 Government Money Market Fund .......................................... 32 Treasury Money Market Fund ............................................ 35 STATEMENTS OF ASSETS AND LIABILITIES ..................................... 36 STATEMENTS OF OPERATIONS ................................................. 38 STATEMENTS OF CHANGES IN NET ASSETS ...................................... 40 FINANCIAL HIGHLIGHTS ..................................................... 44 NOTES TO FINANCIAL STATEMENTS ............................................ 48 DISCLOSURE OF FUND EXPENSES .............................................. 61 APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS .............. 63
1 BISHOP STREET LETTER TO SHAREHOLDERS FUNDS (PHOTO OF MICHAEL K. HIRAI) Dear Shareholder: The past eighteen months have proven to be a truly tumultuous period in the history of the financial markets. A deepening credit crisis and massive bank and business failures created a state of panic forcing the hands of central banks around the world in a desperate attempt to avert a global financial meltdown. Perhaps even more shocking was the discovery of a number of financial scandals so large that they have left even deeper scars and destruction on the financial landscape. Over this period, the equity markets declined more than 50% from their October 2007 highs, driving the economy into a deep and prolonged recession - one not witnessed in generations. And although the future looks bleak, there does appear to be a light at the end of the tunnel. At least we think so. A LIGHT AT THE END OF THE TUNNEL? Investors approached the New Year with much trepidation following the shocking events of 2008. The credit markets continued to contract as equity and commodity markets around the world fell in a synchronous fashion. Investors continued to seek solace in the safety of the treasury markets much more concerned about the return of capital rather than the return on capital. Following a 37% decline in 2008, the U.S. stock market declined further, falling another 24% in the first 65 days of the year. Since the March 6, 2009 low, the U.S. equity markets soared +36% eking out a +3.2% return in the first half of 2009. AN APPETITE FOR RISK Meanwhile, the fixed income markets continued to provide a positive environment for investors with the broad market indices generating a +1.9% return year-to-date, building upon the +5.2% return realized in 2008. But an even more surprising development in the bond market was the strong performance registered in the corporate sector as U.S. credit generated a +6.9% return in the Bishop Street Funds 2 (BISHOP STREET FUNDS LOGO) first six months with lower quality credits significantly outperforming both U.S. treasuries and government issues. This was particularly evident in the high yield bond markets as non-investment grade bonds gained more than +30% in 2009, well ahead of most asset classes. BALANCE AND FOCUS REMAIN IMPORTANT KEYS TO INVESTING These past six months have proven the importance of balance and focus in investing successfully over the long term. Although last year was truly disappointing for equity investors, our main focus on a diversified mix of stocks, bonds, and money market funds has once again proven to be key to reaching your goals. Recent events have only given us more reason to pause and reflect again on our long-term investment goals as well as our tolerances for risk. The Bishop Street Funds continue to offer you selected stock, bond and money market alternatives that should be included in your overall investment program. Many of the stock fund holdings in the Strategic Growth Fund and the Large Cap Core Equity Fund continue to have extremely attractive earnings and income potential enhancing their long-term growth potential. Our High Grade Income and Hawaii Municipal Bond Funds hold high-quality fixed income securities that provide you with stable and predictable income cash flows and our money market funds provide stable values and safety. Thank you for your continued trust and confidence in Bishop Street Capital Management. Sincerely, /s/ Michael K. Hirai Michael K. Hirai, CFA, CPA President and Chief Investment Officer July 15, 2009 June 30, 2009 www.bishopstreetfunds.com 3 Strategic Growth Fund (UNAUDITED) TOP TEN EQUITY HOLDINGS+
Percentage of Investments ------------- 1. Oracle 2.3% 2. Microsoft 2.2% 3. Western Digital 2.2% 4. Hewlett-Packard 2.2% 5. Thermo Fisher Scientific 2.2% 6. Symantec 2.2% 7. Red Hat 2.2% 8. Amgen 2.2% 9. ACE 2.1% 10. Suncor Energy 2.1%
SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) Information Technology 24.9% Industrials 19.4% Health Care 16.5% Consumer Discretionary 13.7% Energy 9.7% Financials 7.9% Consumer Staples 6.1% Materials 1.8%
+ PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. SCHEDULE OF INVESTMENTS
Market Value Shares (000) ------ ---------- COMMON STOCK -- 100.1% CONSUMER DISCRETIONARY -- 13.7% 17,300 Apollo Group, Cl A* $ 1,230 31,383 Best Buy 1,051 56,000 GameStop, Cl A* 1,233 22,400 McDonald's 1,288 20,700 Nike, Cl B 1,072 39,500 TJX 1,243 37,500 Yum! Brands 1,250 ---------- 8,367 ----------
Bishop Street Funds 4 Strategic Growth Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- CONSUMER STAPLES -- 6.1% 37,713 CVS $ 1,202 22,400 General Mills 1,255 28,900 Philip Morris International 1,260 ---------- 3,717 ---------- ENERGY -- 9.8% 32,800 National Oilwell Varco* 1,071 17,600 Occidental Petroleum 1,158 30,100 Southwestern Energy* 1,169 42,900 Suncor Energy 1,302 16,821 Transocean* 1,250 ---------- 5,950 ---------- FINANCIALS -- 7.9% 29,600 ACE 1,309 3,558 CME Group, Cl A 1,107 53,100 Nasdaq Stock Market* 1,132 27,400 State Street 1,293 ---------- 4,841 ---------- HEALTH CARE -- 16.5% 17,700 Aetna 443 24,800 Amgen* 1,313 23,900 Baxter International 1,266 17,400 Becton Dickinson 1,241 18,000 Express Scripts, Cl A* 1,237 21,800 Genzyme* 1,214 25,500 Gilead Sciences* 1,194 14,300 Quest Diagnostics 807 32,700 Thermo Fisher Scientific* 1,333 ---------- 10,048 ---------- INDUSTRIALS -- 19.4% 20,300 Danaher 1,253 6,500 First Solar* 1,054 43,800 Iron Mountain* 1,259 27,800 ITT 1,237 14,800 Lockheed Martin 1,194 23,000 Stericycle* 1,185 43,200 Tyco International 1,122 23,500 Union Pacific 1,224 21,200 United Technologies 1,102 14,500 W.W. Grainger 1,187 ---------- 11,817 ----------
June 30, 2009 www.bishopstreetfunds.com 5 Strategic Growth Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- INFORMATION TECHNOLOGY -- 24.9% 48,900 Broadcom, Cl A* $ 1,212 2,700 Google, Cl A* 1,138 35,100 Hewlett Packard 1,357 60,200 MEMC Electronic Materials* 1,072 57,700 Microsoft 1,371 64,500 Oracle 1,382 26,700 Qualcomm 1,207 65,900 Red Hat* 1,327 85,600 Symantec* 1,332 56,900 Texas Instruments 1,212 51,400 Western Digital* 1,362 73,193 Western Union 1,200 ---------- 15,172 ---------- MATERIALS -- 1.8% 14,500 Monsanto 1,078 ---------- TOTAL COMMON STOCK (Cost $64,652) 60,990 ---------- TOTAL INVESTMENTS (Cost $64,652) -- (100.1%) $ 60,990 ==========
PERCENTAGES ARE BASED ON NET ASSETS OF $60,943 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. CL -- CLASS COST FIGURES ARE SHOWN IN THOUSANDS. 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. Microsoft 2.3% 2. Chevron 2.0% 3. Johnson & Johnson 1.9% 4. Apple 1.7% 5. JPMorgan Chase 1.7% 6. AT&T 1.6% 7. Cisco Systems 1.5% 8. Google 1.5% 9. Wal-Mart Stores 1.4% 10. Hewlett-Packard 1.4%
SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) Information Technology 19.0% Health Care 15.2% Financials 13.2% Energy 12.7% Consumer Staples 10.8% Consumer Discretionary 9.9% Industrials 9.8% Telecommunication Services 3.2% Materials 3.0% Utilities 2.0% Short-Term Investments 0.9% Exchange Traded Fund 0.3%
+ PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. SCHEDULE OF INVESTMENTS
Market Value Shares (000) ------ ---------- COMMON STOCK -- 99.7% CONSUMER DISCRETIONARY -- 10.0% 3,800 Apollo Group, Cl A* $ 270 6,060 Bed Bath & Beyond*(A) 186 7,510 Best Buy (A) 252 6,200 Carnival 160 6,880 Coach 185 23,400 Comcast, Cl A 339 13,800 DISH Network, Cl A* 224
June 30, 2009 www.bishopstreetfunds.com 7 Large Cap Core Equity Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- CONSUMER DISCRETIONARY -- (CONTINUED) 14,580 Expedia* $ 220 10,000 GameStop, Cl A* 220 13,100 International Game Technology 208 8,030 Johnson Controls (A) 175 5,700 Kohl's*(A) 244 14,960 Lowe's 290 25,680 News, Cl A 234 4,600 Nike, Cl B 238 11,500 Staples (A) 232 5,511 Time Warner Cable, Cl A (A) 175 10,086 Time Warner 254 3,800 VF 210 6,600 Yum! Brands 220 ---------- 4,536 ---------- CONSUMER STAPLES -- 10.9% 17,300 Archer Daniels Midland 463 13,460 CVS 429 6,600 Kimberly-Clark 346 11,580 PepsiCo (A) 637 13,650 Philip Morris International 595 14,120 Procter & Gamble 722 17,220 SYSCO 387 21,950 Tyson Foods, Cl A (A) 277 11,130 Walgreen (A) 327 16,400 Wal-Mart Stores 794 ---------- 4,977 ---------- ENERGY -- 12.8% 6,254 Anadarko Petroleum 284 4,878 Apache 352 13,050 Chesapeake Energy (A) 259 16,990 Chevron 1,126 5,800 Consol Energy 197 5,480 Devon Energy 299 35,000 El Paso 323 6,700 Exxon Mobil 468 11,300 Halliburton 234 12,990 Marathon Oil 391 7,820 National Oilwell Varco* 255 12,160 Nexen (A) 263 5,240 Noble Energy (A) 309 8,510 Noble 258
Bishop Street Funds 8 Large Cap Core Equity Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- ENERGY -- (CONTINUED) 6,000 Range Resources $ 249 15,172 Valero Energy 256 8,160 XTO Energy 311 ---------- 5,834 ---------- FINANCIALS -- 13.3% 4,306 ACE 190 8,900 Aflac 277 9,500 Allstate 232 6,800 Annaly Capital Management+ 103 53,094 Bank of America (A) 701 10,700 Bank of New York Mellon 314 2,200 Boston Properties+ (A) 105 2,800 Capital One Financial (A) 61 4,400 Chubb 176 46,110 Citigroup (A) 137 485 CME Group, Cl A 151 5,500 Equity Residential (B) 122 1,900 Goldman Sachs Group 280 10,400 Host Hotels & Resorts+ (A) 87 2,300 IntercontinentalExchange* (A) 263 27,770 JPMorgan Chase 947 22,400 Keycorp (A) 117 4,217 Loews 116 6,870 MetLife 206 10,360 Morgan Stanley (A) 295 9,490 State Street 448 5,730 Travelers 235 19,832 Wells Fargo (A) 481 ---------- 6,044 ---------- HEALTH CARE -- 15.3% 9,507 Abbott Laboratories 447 11,470 Aetna 287 4,967 Allergan 236 6,700 Amgen* 355 19,100 Bristol-Myers Squibb 388 6,520 Celgene* 312 2,600 Cephalon* (A) 147 11,600 Forest Laboratories* 291 5,080 Genzyme* 283 9,370 Gilead Sciences* 439 18,760 Johnson & Johnson 1,066
June 30, 2009 www.bishopstreetfunds.com 9 Large Cap Core Equity Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- HEALTH CARE -- (CONTINUED) 7,840 McKesson $ 345 10,030 Medtronic 350 19,880 Pfizer (A) 298 14,860 Schering Plough 373 8,630 St. Jude Medical* 355 8,700 Thermo Fisher Scientific* 355 12,580 UnitedHealth Group 314 5,200 Varian Medical Systems* 183 3,317 Wyeth 151 ---------- 6,975 ---------- INDUSTRIALS -- 9.9% 9,700 Boeing (A) 412 8,320 Caterpillar (A) 275 8,710 Deere (A) 348 8,000 Fluor 410 58,227 General Electric 683 7,114 Illinois Tool Works 266 3,210 L-3 Communications Holdings, Cl 3 223 7,330 Norfolk Southern (A) 276 4,967 Parker Hannifin 213 4,110 Precision Castparts 300 7,950 Rockwell Collins 332 8,100 Union Pacific (A) 422 6,800 United Technologies 353 ---------- 4,513 ---------- INFORMATION TECHNOLOGY -- 19.2% 4,400 Accenture, Cl A 147 8,720 Adobe Systems* (A) 247 6,670 Apple* 950 9,800 Broadcom, Cl A* (A) 243 45,770 Cisco Systems* 853 7,500 Cognizant Technology Solutions, Cl A* 200 16,460 Corning 264 20,610 EMC*(A) 270 4,400 Fiserv* 201 2,000 Google, Cl A* 843 19,580 Hewlett-Packard 757 24,620 Intel (A) 408 52,280 Microsoft 1,243 34,470 Oracle 738 14,770 Qualcomm 668
Bishop Street Funds 10 Large Cap Core Equity Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- INFORMATION TECHNOLOGY -- (CONTINUED) 3,100 Research In Motion* $ 220 18,350 Symantec* 286 10,070 Xilinx (A) 206 ---------- 8,744 ---------- MATERIALS -- 3.1% 14,900 Dow Chemical (A) 240 5,720 Freeport-McMoRan Copper & Gold (A) 287 3,100 Monsanto 230 5,400 Mosaic 239 15,490 Teck Cominco, Cl B 247 4,300 United States Steel (A) 154 ---------- 1,397 ---------- TELECOMMUNICATION SERVICES -- 3.2% 35,810 AT&T 889 9,400 NII Holdings* 179 13,230 Verizon Communications (A) 407 ---------- 1,475 ---------- UTILITIES -- 2.0% 2,400 Entergy 186 5,290 Exelon (A) 271 3,635 FPL Group 206 8,720 Questar 271 ---------- 934 ---------- TOTAL COMMON STOCK (Cost $57,244) 45,429 ---------- EXCHANGE TRADED FUND -- 0.3% 1,265 SPDR Trust, Ser 1 (A) 116 ---------- TOTAL EXCHANGE TRADED FUND (Cost $142) 116 ----------
June 30, 2009 www.bishopstreetfunds.com 11 Large Cap Core Equity Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Market Value Shares (000) ------ ---------- CASH EQUIVALENTS (C) -- 21.2% 2,104,518 AIM Liquid Asset Portfolio, Institutional Shares, 0.522% (B) $ 2,104 201,755 Dreyfus Cash Management Fund, Institutional Shares, 0.457% 202 1,618,860 Dreyfus Institutional Cash Advantage Fund, 0.479% (B) 1,619 1,942,632 Federated Prime Obligation Fund, 0.438% (B) 1,943 201,755 Fidelity Institutional Money Market Portfolio, Institutional Shares, 0.714% 202 1,942,632 Fidelity Prime Money Market, Institutional Shares, 0.521% (B) 1,943 647,544 JPMorgan Prime Money Market Fund, 0.444% (B) 647 1,018,076 Merrill Lynch Select Institutional Fund, 0.465% (B) 1,018 ---------- TOTAL CASH EQUIVALENTS (Cost $9,678) 9,678 ---------- TOTAL INVESTMENTS (Cost $67,064) -- (121.2%) $ 55,223 ==========
PERCENTAGES ARE BASED ON NET ASSETS OF $45,570 ($ THOUSANDS). * NON-INCOME PRODUCING SECURITY. (A) THIS SECURITY OR PORTION OF THIS SECURITY WAS ON LOAN AT JUNE 30, 2009. THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2009 WAS $9,048 ($ THOUSANDS). (B) THIS SECURITY WAS PURCHASED WITH CASH COLLATERAL HELD FROM SECURITIES ON LOAN. THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2009 WAS $9,274 ($ THOUSANDS). (C) THE RATE REPORTED IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2009. + REAL ESTATE INVESTMENT TRUST CL -- CLASS SER -- SERIES SPDR -- STANDARD & POOR'S DEPOSITORY RECEIPTS COST FIGURES ARE SHOWN IN THOUSANDS. 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. Citibank Credit Card Issuance Trust 2.700% 06/23/13 1.8% 2. Potash Corp of Saskatchewan 5.250% 05/15/14 1.6% 3. FNMA 3.750% 03/25/33 1.5% 4. General Electric Capital MTN 5.450% 01/15/13 1.5% 5. FHLMC MTN 4.250% 05/22/13 1.4% 6. Chase Issuance Trust 1.111% 06/15/12 1.4% 7. Rio Tinto Finance USA 9.000% 05/01/19 1.3% 8. U.S. Treasury Bond 7.250% 05/15/16 1.3% 9. IBM 8.375% 11/01/19 1.3% 10. U.S. Treasury Inflation-Protected Security 2.125% 01/15/19 1.2%
SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) Financials 20.8% U.S. Government Agency Obligations 11.9% Materials 8.4% Information Technology 7.5% Consumer Discretionary 7.3% U.S. Government Mortgage-Backed Obligations 6.4% Industrials 5.8% Health Care 5.5% Energy 5.3% Asset-Backed Securities 5.0% Consumer Staples 4.7% Telecommunication Services 4.5% U.S. Treasury Obligations 4.0% Municipal Bonds 1.8% Short-Term Investments 1.1%
+ PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES LENDING. SCHEDULE OF INVESTMENTS
Face Market Amount Value (000) (000) ------ ---------- CORPORATE OBLIGATIONS -- 69.5% AEROSPACE & DEFENSE -- 2.1% Emerson Electric (C) $ 500 5.250%, 10/15/18 $ 512 Rockwell Automation 800 6.700%, 01/15/28 832 United Technologies 1,200 6.350%, 03/01/11 1,285 ---------- 2,629 ----------
June 30, 2009 www.bishopstreetfunds.com 13 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- AUTO FINANCE -- 1.9% Capital One Financial $ 1,000 7.375%, 05/23/14 $ 1,031 Toyota Motor Credit 1,200 5.450%, 05/18/11 1,256 ---------- 2,287 ---------- BANKS -- 10.3% American Express Bank 600 5.500%, 04/16/13 589 Australia & New Zealand Banking Group (A) 1,500 0.893%, 06/18/12 1,493 Bank of America (A) (C) 1,325 0.989%, 06/22/12 1,343 Bank of Oklahoma (A) 500 5.750%, 05/15/17 440 Barclays Bank PLC 1,150 6.750%, 05/22/19 1,141 BHP Billiton Finance 950 5.250%, 12/15/15 989 HSBC Holdings PLC 1,375 6.800%, 06/01/38 1,382 JPMorgan Chase 500 4.650%, 06/01/14 499 JPMorgan Chase (C) 1,400 5.875%, 06/13/16 1,349 Rio Tinto Finance USA (C) 1,700 9.000%, 05/01/19 1,890 Wells Fargo (C) 1,600 4.375%, 01/31/13 1,614 ---------- 12,729 ---------- BEVERAGES -- 1.2% PepsiCo 1,450 4.650%, 02/15/13 1,522 ---------- BROADCASTING & CABLE -- 1.1% Comcast Cable Holdings 1,200 7.875%, 08/01/13 1,365 ----------
Bishop Street Funds 14 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- CHEMICALS -- 4.1% Dow Chemical $ 1,200 8.550%, 05/15/19 $ 1,202 Monsanto 1,400 7.375%, 08/15/12 1,601 Potash Corp of Saskatchewan 2,150 5.250%, 05/15/14 2,219 ---------- 5,022 ---------- COMPUTER HARDWARE -- 6.3% Cisco Systems (C) 1,500 5.500%, 02/22/16 1,589 Dell 400 5.625%, 04/15/14 422 Hewlett-Packard (C) 1,375 4.500%, 03/01/13 1,430 IBM 1,500 8.375%, 11/01/19 1,853 Nokia 1,250 5.375%, 05/15/19 1,265 Oracle 1,200 5.250%, 01/15/16 1,256 ---------- 7,815 ---------- CONSUMER DISCRETIONARY -- 3.1% Costco Wholesale (C) 1,100 5.500%, 03/15/17 1,164 Home Depot 1,400 5.875%, 12/16/36 1,235 Wal-Mart Stores 1,300 5.375%, 04/05/17 1,383 ---------- 3,782 ---------- FINANCIALS -- 10.9% Bank of New York Mellon (C) 1,325 4.300%, 05/15/14 1,347 Bear Stearns LLC 1,500 7.250%, 02/01/18 1,581 Boeing Capital (C) 1,400 6.500%, 02/15/12 1,536 BP Capital Markets PLC 725 3.625%, 05/08/14 723
June 30, 2009 www.bishopstreetfunds.com 15 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- FINANCIALS -- (CONTINUED) Bunge Finance $ 1,300 8.500%, 06/15/19 $ 1,359 General Electric Capital MTN, Ser A 2,050 5.450%, 01/15/13 2,104 Goldman Sachs Group (C) 1,100 7.500%, 02/15/19 1,178 Jefferies Group 675 6.250%, 01/15/36 466 John Deere Capital 550 7.000%, 03/15/12 604 Morgan Stanley MTN 1,050 6.000%, 05/13/14 1,063 Morgan Stanley (C) 1,300 7.300%, 05/13/19 1,348 State Street 250 4.300%, 05/30/14 247 ---------- 13,556 ---------- HEALTH CARE -- 1.1% Johnson & Johnson 1,200 6.950%, 09/01/29 1,414 ---------- HOUSEHOLD DURABLES -- 0.8% Whirlpool MTN 1,000 8.600%, 05/01/14 1,045 ---------- HOUSEHOLD PRODUCTS -- 1.4% Procter & Gamble 1,300 8.000%, 10/26/29 1,684 ---------- INDUSTRIALS -- 0.5% Burlington Northern Santa Fe 650 5.650%, 05/01/17 663 ---------- MACHINERY -- 1.2% Caterpillar 1,250 7.900%, 12/15/18 1,442 ---------- MEDIA -- 1.9% News America 1,000 6.650%, 11/15/37 900 Walt Disney MTN 1,300 6.200%, 06/20/14 1,449 ---------- 2,349 ----------
Bishop Street Funds 16 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- MOVIES & ENTERTAINMENT -- 3.0% Comcast $ 1,000 6.500%, 01/15/17 $ 1,061 Time Warner 1,200 7.700%, 05/01/32 1,179 Time Warner Cable (C) 1,350 8.250%, 04/01/19 1,532 ---------- 3,772 ---------- OFFICE ELECTRONICS -- 1.1% Xerox (C) 1,350 8.250%, 05/15/14 1,404 ---------- OIL & GAS -- EXPLORATION/PRODUCTION -- 2.8% Anadarko Petroleum 1,250 7.200%, 03/15/29 1,139 Devon Energy 1,200 5.625%, 01/15/14 1,264 Occidental Petroleum (C) 1,000 6.750%, 01/15/12 1,090 ---------- 3,493 ---------- OIL & GAS -- INTEGRATED -- 2.5% Atlantic Richfield 1,385 9.125%, 03/01/11 1,540 ConocoPhillips (C) 1,500 4.750%, 10/15/12 1,580 ---------- 3,120 ---------- PHARMACEUTICALS -- 5.4% Abbott Laboratories 1,400 5.600%, 05/15/11 1,496 Bristol-Myers Squibb 680 5.450%, 05/01/18 720 Genentech 1,300 4.750%, 07/15/15 1,343 Merck 650 5.000%, 06/30/19 658 500 5.850%, 06/30/39 514 Pfizer (C) 850 6.200%, 03/15/19 930 Teva Pharmaceutical Finance LLC 1,000 5.550%, 02/01/16 1,034 ---------- 6,695 ----------
June 30, 2009 www.bishopstreetfunds.com 17 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- RETAIL FOOD -- 1.3% McDonald's MTN (C) $ 1,525 4.125%, 06/01/13 $ 1,569 ---------- STEEL & STEEL WORKS -- 2.0% ArcelorMittal (C) 1,050 9.850%, 06/01/19 1,133 Nucor 1,300 4.875%, 10/01/12 1,353 ---------- 2,486 ---------- TELECOMMUNICATIONS -- 2.7% AT&T 500 5.800%, 02/15/19 508 AT&T Wireless Services 1,300 8.125%, 05/01/12 1,455 Verizon Wireless Capital LLC 1,300 5.550%, 02/01/14 1,380 ---------- 3,343 ---------- TRANSPORTATION SERVICES -- 0.8% Canadian Pacific Railway 1,000 7.250%, 05/15/19 1,038 ---------- TOTAL CORPORATE OBLIGATIONS (Cost $83,692) 86,224 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- 11.9% FHLB 1,000 6.000%, 07/10/13 1,001 1,000 4.875%, 12/14/12 1,087 FHLMC 875 8.250%, 06/01/16 1,017 1,000 5.875%, 05/23/16 1,070 1,100 5.000%, 01/30/14 1,194 800 4.000%, 06/12/13 836 1,100 3.250%, 02/18/14 1,094 FHLMC MTN 1,000 5.000%, 10/27/14 1,091 1,900 4.250%, 05/22/13 2,020 FNMA 1,500 5.750%, 05/11/22 1,542 1,400 5.550%, 02/16/17 1,430 600 5.500%, 11/17/16 610 700 5.000%, 03/02/15 758 ---------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $14,235) 14,750 ----------
Bishop Street Funds 18 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS -- 6.4% FHLMC REMIC, Ser 2844, Cl VB $ 173 5.500%, 12/15/19 $ 176 FHLMC REMIC, Ser 3070, Cl DH 65 5.500%, 11/15/35 66 FHLMC REMIC, Ser 3196, Cl CB 554 5.250%, 08/15/11 570 FHLMC REMIC, Ser R010, Cl AB 814 5.500%, 12/15/19 837 FNMA 860 5.000%, 10/01/23 891 567 3.500%, 08/01/10 578 FNMA REMIC, Ser B1, Cl BE 969 5.450%, 12/25/20 1,018 FNMA, Ser 33, Cl AB 2,116 3.750%, 03/25/33 2,111 FNMA, Ser 84, Cl KA 230 5.000%, 09/25/36 232 GNMA, Ser 7, Cl PE 1,400 5.500%, 11/16/31 1,453 ---------- TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $7,725) 7,932 ---------- ASSET-BACKED SECURITIES -- 5.0% Capital One Multi Asset Execution Trust 1,600 3.200%, 04/15/14 1,612 Chase Issuance Trust, Cl A5 (A) 2,000 1.111%, 06/15/12 2,000 Citibank Credit Card Issuance Trust, Cl A3 (A) 2,600 2.700%, 06/23/13 2,606 ---------- TOTAL ASSET-BACKED SECURITIES (Cost $6,196) 6,218 ---------- U.S. TREASURY OBLIGATIONS -- 4.0% U.S. Treasury Bond (C) 1,500 7.250%, 05/15/16 1,880 U.S. Treasury Inflation-Protected Security 1,700 2.125%, 01/15/19 1,744 U.S. Treasury Notes 500 4.125%, 08/31/12 537 800 3.125%, 05/15/19 (C) 774 ---------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $4,666) 4,935 ----------
June 30, 2009 www.bishopstreetfunds.com 19 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Amount Market (000)/ Value Shares (000) ------ ---------- MUNICIPAL BONDS -- 1.8% MUNICIPAL -- 1.8% Michigan Municipal Bond Authority, RB, Merrill Lynch Insured (A) $ 500 6.411%, 09/01/48 $ 500 New Jersey State, Turnpike Authority, Ser B, RB, AMBAC Insured, Pre-Refunded @ 100 (B) 1,250 4.252%, 01/01/15 1,250 New Mexico Mortgage Finance Authority, RB, AMT, GNMA/FNMA/FHLMC Collateral 500 4.200%, 07/01/28 493 ---------- TOTAL MUNICIPAL BONDS (Cost $2,260) 2,243 ---------- CASH EQUIVALENTS (E) -- 16.7% 4,395,482 AIM Liquid Asset Portfolio, Institutional Shares, 0.522% (D) 4,396 700,962 Dreyfus Cash Management Fund, Institutional Shares, 0.457% 701 3,381,140 Dreyfus Institutional Cash Advantage Fund, 0.479% (D) 3,381 4,057,368 Federated Prime Obligation Fund, 0.438% (D) 4,057 700,962 Fidelity Institutional Money Market Portfolio, Institutional Shares, 0.714% 701 4,057,368 Fidelity Prime Money Market, Institutional Shares, 0.521% (D) 4,057 1,352,456 JPMorgan Prime Money Market Fund, 0.444% (D) 1,353 2,126,348 Merrill Lynch Select Institutional Fund, 0.465% (D) 2,126 ---------- TOTAL CASH EQUIVALENTS (Cost $20,772) 20,772 ---------- TOTAL INVESTMENTS (Cost $139,546) -- (115.3%) $ 143,074 ==========
Bishop Street Funds 20 High Grade Income Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED) PERCENTAGES ARE BASED ON NET ASSETS OF $124,082 ($ THOUSANDS). (A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE SCHEDULE OF INVESTMENTS IS THE RATE IN EFFECT ON JUNE 30, 2009. THE MATURITY DATE SHOWN IS THE NEXT SCHEDULED RESET DATE. (B) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE. (C) THIS SECURITY OR PORTION OF THIS SECURITY WAS ON LOAN AT JUNE 30, 2009. THE TOTAL VALUE OF SECURITIES ON LOAN AT JUNE 30, 2009 WAS $18,943 ($ THOUSANDS). (D) THIS SECURITY WAS PURCHASED WITH CASH COLLATERAL HELD FROM SECURITIES ON LOAN. THE TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2009 WAS $19,370 ($ THOUSANDS). (E) THE RATE REPORTED IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2009. AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY AMT -- ALTERNATIVE MINIMUM TAX CL -- CLASS FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE ASSOCIATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION LLC -- LIMITED LIABILITY COMPANY MTN -- MEDIUM TERM NOTE PLC -- PUBLIC LIMITED COMPANY RB -- REVENUE BOND REMIC -- REAL ESTATE MORTGAGE INVESTMENT CONDUIT SER -- SERIES COST FIGURES ARE SHOWN IN THOUSANDS. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 21 Hawaii Municipal Bond Fund (UNAUDITED) TOP TEN HOLDINGS+
Percentage Coupon Maturity of Rate Date Investments ------ ---------- ----------- 1. Honolulu Hawaii City & County GO 5.000% 07/01/17 3.4% 2. Honolulu City & County GO 5.000% 07/01/21 1.9% 3. Honolulu City & County GO 5.000% 07/01/26 1.7% 4. Hawaii State, Housing Finance & Development RB 5.350% 07/01/18 1.6% 5. Hawaii State, Highway RB 5.000% 07/01/16 1.6% 6. Honolulu City & County, Board of Water Supply RB 4.750% 07/01/14 1.4% 7. Honolulu Hawaii City & County GO 5.000% 07/01/15 1.4% 8. Hawaii State, Highway RB 5.000% 07/01/12 1.4% 9. Hawaii State, Housing Finance & Development RB 6.500% 07/01/33 1.3% 10. Hawaii State, Harbor System RB 5.750% 07/01/17 1.3%
SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) General Obligations 48.8% Transportation 11.8% Water 10.7% Housing 8.9% General Revenue 6.4% Airport 4.1% Power 3.9% Single-Family Housing 3.3% Medical 1.0% Short-Term Investments 0.5% School District 0.5% Multi-Family Housing 0.1%
+ PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. Bishop Street Funds 22 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS
Face Market Amount Value (000) (000) ------ ---------- MUNICIPAL BONDS -- 97.8% ARIZONA -- 1.0% Phoenix Civic Improvement, Ser A, RB $ 1,435 5.000%, 07/01/21 $ 1,561 ---------- CALIFORNIA -- 0.2% San Jose Evergreen Community College District, Ser B, GO, FSA Insured (A) 1,000 5.893%, 09/01/28 320 ---------- GEORGIA -- 0.5% Main Street, Natural Gas, Ser B, RB 1,000 5.000%, 03/15/18 884 ---------- HAWAII -- 84.1% Hawaii County, Refunding & Improvement Project, Ser A, GO, National-RE FGIC Insured 450 5.600%, 05/01/12 497 430 5.600%, 05/01/13 482 Hawaii County, Ser A, GO, AMBAC Insured 1,000 5.000%, 07/15/15 1,109 Hawaii County, Ser A, GO, FSA Insured 125 5.000%, 07/15/21 131 1,500 5.000%, 07/15/23 1,552 Hawaii County, Ser A, GO, National-RE Insured 505 5.000%, 07/15/21 537 1,000 5.000%, 07/15/22 1,053 Hawaii County, Ser A, GO, National-RE Insured 1,055 5.250%, 07/15/18 1,130 1,000 5.000%, 07/15/24 1,033 Hawaii State, Airport System, RB, AMT, National-RE FGIC Insured 1,000 5.750%, 07/01/15 1,017 280 5.250%, 07/01/21 270 Hawaii State, Airport System, Second Ser, RB, AMT, ETM 50 6.900%, 07/01/12 53 Hawaii State, Airport System, Ser B, RB, AMT, National-RE FGIC Insured 1,500 6.625%, 07/01/18 1,527 500 6.000%, 07/01/19 502 Hawaii State, Department of Budget & Finance, Chaminade University, RB, RADIAN Insured 1,000 4.750%, 01/01/36 711 Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser A, RB, AMT, FGIC Insured 750 4.800%, 01/01/25 629
June 30, 2009 www.bishopstreetfunds.com 23 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- HAWAII -- (CONTINUED) Hawaii State, Department of Budget & Finance, Electric Company & Subsidiary Project, Ser B, RB, AMT, XLCA Insured $ 1,025 5.000%, 12/01/22 $ 904 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, AMBAC Insured 675 5.100%, 09/01/32 549 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, FGIC Insured 1,000 4.650%, 03/01/37 729 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser A, RB, AMT, National-RE Insured 2,000 5.650%, 10/01/27 1,812 Hawaii State, Department of Budget & Finance, Hawaiian Electric, Ser C, RB, AMT, AMBAC Insured 1,000 6.200%, 11/01/29 955 Hawaii State, Department of Budget & Finance, Mid Pacific Institute, RB, RADIAN Insured 1,000 5.000%, 01/01/26 821 1,000 4.625%, 01/01/31 737 Hawaii State, Department of Hawaiian Home Lands, Kapolei Office Facilities, Ser A, COP, FSA Insured 2,000 5.000%, 11/01/31 2,008 Hawaii State, Harbor System, Ser A, RB, AMT, FSA Insured 2,025 5.750%, 07/01/17 2,073 770 5.750%, 07/01/29 776 1,210 5.700%, 07/01/16 1,240 1,000 5.600%, 07/01/15 1,027 Hawaii State, Harbor System, Ser B, RB, AMT, AMBAC Insured 200 5.500%, 07/01/19 209 Hawaii State, Harbor System, Ser B, RB, AMT, FSA Insured 1,000 5.000%, 01/01/13 1,064 Hawaii State, Highway, RB, FSA Insured 2,000 5.000%, 07/01/12 2,200 Hawaii State, Highway, Ser A, RB, FSA Insured 1,725 5.000%, 07/01/21 1,807 1,565 5.000%, 07/01/22 1,631 1,805 5.000%, 07/01/23 1,871 Hawaii State, Highway, Ser B, RB, FSA Insured 2,300 5.000%, 07/01/16 2,504 Hawaii State, Housing Finance & Development, Ser A, RB, AMT, FNMA Collateral 2,500 5.350%, 07/01/18 2,509
Bishop Street Funds 24 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- HAWAII -- (CONTINUED) Hawaii State, Housing Finance & Development, Ser B-RMKT, RB, FSA Insured $ 2,000 6.500%, 07/01/33 $ 2,119 Hawaii State, Housing Finance & Development, Single-Family Housing, Ser A, RB, AMT, FNMA Collateral 620 5.400%, 07/01/30 613 Hawaii State, Housing Finance & Development, Single-Family Housing, Ser B, RB, FNMA Collateral 1,000 5.450%, 07/01/17 1,002 Hawaii State, Kapolei Office Building, Ser A, COP, AMBAC Insured 1,475 5.250%, 05/01/13 1,488 1,000 5.000%, 05/01/16 1,009 1,000 5.000%, 05/01/17 1,010 500 5.000%, 05/01/18 505 Hawaii State, No. 1 Capitol District State Office, COP, National RE-Insured 1,000 5.200%, 05/01/14 1,021 Hawaii State, RB 300 5.500%, 07/01/18 346 500 5.500%, 01/01/25 560 Hawaii State, Ser CL, GO, FGIC-TCRS Insured 1,000 6.000%, 03/01/11 1,072 Hawaii State, Ser CU, GO, National-RE Insured 550 5.750%, 10/01/12 580 Hawaii State, Ser CU, GO, National-RE Insured, Pre Refunded @ 100 (B) 25 5.750%, 10/01/10 27 Hawaii State, Ser CV, GO, National-RE FGIC Insured 475 5.375%, 08/01/18 497 1,620 5.375%, 08/01/19 1,691 Hawaii State, Ser CX, GO, FSA Insured 1,000 5.500%, 02/01/16 1,067 1,000 5.500%, 02/01/21 1,048 Hawaii State, Ser CZ, GO, FSA Insured 225 5.250%, 07/01/16 240 Hawaii State, Ser DA, GO, National-RE Insured 850 5.250%, 09/01/23 894 Hawaii State, Ser DB, GO, National-RE Insured 200 5.250%, 09/01/15 220 Hawaii State, Ser DD, GO, National-RE Insured 1,500 5.250%, 05/01/15 1,675 1,000 5.000%, 05/01/16 1,091
June 30, 2009 www.bishopstreetfunds.com 25 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- HAWAII -- (CONTINUED) Hawaii State, Ser DF, GO, AMBAC Insured $ 1,250 5.000%, 07/01/18 $ 1,358 1,250 5.000%, 07/01/21 1,343 90 5.000%, 07/01/22 96 Hawaii State, Ser DG, GO, AMBAC Insured 1,000 5.000%, 07/01/16 1,110 Hawaii State, Ser DJ, GO, AMBAC Insured 500 5.000%, 04/01/13 554 300 5.000%, 04/01/15 336 1,425 5.000%, 04/01/17 1,594 Hawaii State, Ser DK, GO 500 5.000%, 05/01/20 545 350 5.000%, 05/01/24 370 Hawaii State, Ser DN, GO 1,000 5.500%, 08/01/26 1,089 Hawaii State, Ser DO, GO 1,000 5.000%, 08/01/16 1,125 Hawaii State, Ser DQ, GO 500 5.000%, 06/01/27 524 1,100 5.000%, 06/01/28 1,145 Honolulu City & County, 1st Board Resolution, Senior Ser C, RB, National-RE Insured 250 5.000%, 07/01/31 252 Honolulu City & County, 2nd Board Resolution, Junior Ser A 1, RB, National-RE Insured 815 5.000%, 07/01/22 868 630 5.000%, 07/01/23 667 Honolulu City & County, 2nd Board Resolution, Junior Ser B 1, RB, National-RE Insured 865 5.000%, 07/01/23 916 Honolulu City & County, Board of Water Supply, Ser A, RB, FGIC Insured, Pre-Refunded @ 100 (B) 1,700 4.750%, 07/01/14 1,919 2,000 4.750%, 07/01/14 2,258 Honolulu City & County, Board of Water Supply, Ser A, RB, National-RE FGIC Insured 2,000 5.000%, 07/01/33 2,017 Honolulu City & County, Board of Water Supply, Ser B, RB, AMT, National-RE Insured 1,000 5.250%, 07/01/20 924 1,000 5.250%, 07/01/21 919 325 5.000%, 07/01/15 323
Bishop Street Funds 26 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- HAWAII -- (CONTINUED) Honolulu City & County, GO, ETM, FGIC Insured $ 1,000 6.000%, 12/01/12 $ 1,154 Honolulu City & County, Ser A, GO, National-RE Insured 625 5.250%, 03/01/17 672 500 5.250%, 03/01/28 517 1,000 5.000%, 07/01/14 1,117 2,800 5.000%, 07/01/21 2,960 2,680 5.000%, 07/01/26 2,755 Honolulu City & County, Ser B, GO, National-RE Insured 1,500 5.000%, 07/01/16 1,661 Honolulu City & County, Ser C, GO, National-RE Insured 600 5.000%, 07/01/16 664 Honolulu City & County, Ser D, GO, National-RE Insured 885 5.000%, 07/01/19 950 1,700 5.000%, 07/01/23 1,777 Honolulu City & County, Ser E, GO, National-RE FGIC Insured 1,500 5.250%, 07/01/20 1,619 Honolulu City & County, Ser F, GO, FSA-Credit FGIC Insured 820 5.000%, 07/01/24 853 Honolulu City & County, Waipahu Towers Project, Ser A, RB, AMT, GNMA Collateral 195 6.900%, 06/20/35 196 Honolulu Hawaii City & County, Senior Ser A, RB, National-RE Insured 500 5.000%, 07/01/20 533 1,000 5.000%, 07/01/36 993 Honolulu Hawaii City & County, Ser A, GO 1,000 5.000%, 04/01/33 992 Honolulu Hawaii City & County, Ser A, GO, FSA Insured 275 5.000%, 07/01/24 289 Honolulu Hawaii City & County, Ser A, GO, National-RE Insured 725 5.250%, 03/01/18 775 1,000 5.250%, 03/01/20 1,058 1,500 5.250%, 03/01/24 1,567 550 5.000%, 07/01/25 570 1,000 5.000%, 07/01/27 1,021 Honolulu Hawaii City & County, Ser A, RB, FSA Insured 1,000 5.000%, 07/01/23 1,052 1,900 5.000%, 07/01/27 1,955 Honolulu Hawaii City & County, Ser B, GO, National-RE Insured 2,000 5.000%, 07/01/15 2,217 4,950 5.000%, 07/01/17 5,362
June 30, 2009 www.bishopstreetfunds.com 27 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- HAWAII -- (CONTINUED) Kauai County, Ser A, GO, National-RE Insured $ 1,610 5.000%, 08/01/21 $ 1,684 1,440 5.000%, 08/01/23 1,486 Kauai County, Ser A, GO, National-RE Insured 1,500 5.000%, 08/01/25 1,523 Maui County, GO, National-RE Insured 100 5.000%, 03/01/17 108 1,100 5.000%, 03/01/24 1,151 Maui County, Hawaii, Ser A, GO, National-RE Insured 1,000 5.000%, 07/01/19 1,087 Maui County, Ser A, GO, FSA Insured 1,000 3.500%, 07/01/16 1,028 Maui County, Ser A, GO, National-RE Insured 1,000 4.750%, 07/01/25 1,020 Maui County, Ser A, GO, Pre-Refunded @ 100 (B) 225 5.375%, 03/01/11 241 Maui County, Ser B, GO, National-RE Insured 500 5.000%, 07/01/16 561 500 5.000%, 09/01/17 537 University of Hawaii, Ser A, RB 500 5.000%, 10/01/14 552 University of Hawaii, Ser A, RB, AGC MBIA Insured 1,400 5.000%, 10/01/23 1,479 University of Hawaii, Ser A, RB, FGIC Insured, Pre Refunded @ 100 (B) 1,605 5.500%, 07/15/12 1,808 500 5.125%, 07/15/12 558 University of Hawaii, Ser A, RB, National-RE Insured 150 5.000%, 07/15/19 159 975 5.000%, 07/15/21 1,025 150 5.000%, 07/15/22 157 1,300 3.500%, 07/15/27 1,068 University of Hawaii, Ser B, RB, FSA Insured 320 5.250%, 10/01/16 335 775 5.250%, 10/01/17 807 ---------- 135,339 ---------- ILLINOIS -- 1.0% Chicago O'Hare International Airport, General Airport, Ser E, RB, CIFG Insured 1,550 5.250%, 01/01/22 1,572 ----------
Bishop Street Funds 28 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Market Amount Value (000) (000) ------ ---------- INDIANA -- 1.2% Indiana Finance Authority, Highway Revenue, Ser A, RB, National-RE FGIC Insured $ 1,200 4.500%, 06/01/27 $ 1,171 Wayne Township School Building, RB, National-RE FGIC insured 1,000 3.500%, 07/15/24 819 ---------- 1,990 ---------- NEVADA -- 0.7% Las Vegas New Convention & Visitors Authority, RB, AMBAC Insured 1,055 5.000%, 07/01/28 1,052 ---------- NEW MEXICO -- 0.6% New Mexico Mortgage Finance Authority, RB, AMT, GNMA/FNMA/FHLMC Collateral 1,050 4.200%, 07/01/28 1,036 ---------- OKLAHOMA -- 2.2% Durant Community Facilities Authority, GO, XLCA Insured 1,730 5.750%, 11/01/24 1,825 Tulsa Industrial Authority, University of Tulsa, RB 2,000 5.000%, 10/01/37 1,701 ---------- 3,526 ---------- OREGON -- 0.6% Oregon State, Ser C, GO 1,000 4.100%, 08/01/28 912 ---------- PUERTO RICO -- 1.3% Commonwealth of Puerto Rico, GO, National-RE Insured 1,500 6.000%, 07/01/15 1,554 Commonwealth of Puerto Rico, Public Improvement, GO, FSA Insured, Pre-Refunded @ 100 (B) 55 5.000%, 07/01/11 59 Puerto Rico, Electric Power Authority, Ser HH, RB, FSA Insured, Pre-Refunded @ 101 (B) 500 5.250%, 07/01/10 529 ---------- 2,142 ----------
June 30, 2009 www.bishopstreetfunds.com 29 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Amount Market (000)/ Value Shares (000) ------ ---------- SOUTH CAROLINA -- 1.3% Edisto Beach, GO $ 735 5.000%, 04/01/37 $ 738 Sumter South Carolina, Waterworks & Sewer Improvement Systems, RB, XLCA Insured 500 5.000%, 12/01/21 520 840 5.000%, 12/01/24 858 ---------- 2,116 ---------- TEXAS -- 2.8% Alamo Community College District, GO, National-RE FGIC Insured 1,000 4.500%, 08/15/26 979 City of El Paso Texas, GO 500 4.000%, 08/15/16 529 North Texas Tollway Authority, RB, Assured Guarantee Insured (A) 5,000 5.433%, 01/01/30 1,409 University of Texas, Permanent University Fund, Ser B, RB 1,600 4.500%, 07/01/33 1,510 ---------- 4,427 ---------- WASHINGTON -- 0.3% Washington State, Ser F-MTR, GO, AMBAC Insured (A) 1,000 4.618%, 12/01/25 436 ---------- TOTAL MUNICIPAL BONDS (Cost $158,328) 157,313 ---------- CASH EQUIVALENTS (C) -- 0.5% 408,395 Dreyfus Tax-Exempt Cash Management Fund, Institutional Shares, 0.470% 408 408,395 Fidelity Institutional Tax-Exempt Portfolio, Institutional Shares, 0.203% 408 ---------- TOTAL CASH EQUIVALENTS (Cost $816) 816 ---------- TOTAL INVESTMENTS (Cost $159,144) -- (98.3%) $ 158,129 ==========
Bishop Street Funds 30 Hawaii Municipal Bond Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED) PERCENTAGES ARE BASED ON NET ASSETS OF $160,830 ($ THOUSANDS). (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) THE RATE REPORTED IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2009. AGC -- ASSURED GUARANTEE INSURANCE AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY AMT -- ALTERNATIVE MINIMUM TAX CIFG -- CIFG ASSURANCE NORTH AMERICA, INC. COP -- CERTIFICATE OF PARTICIPATION ETM -- ESCROWED TO MATURITY FGIC -- FINANCIAL GUARANTEE INSURANCE CORPORATION FHLMC -- FEDERAL HOME LOAN MORTGAGE ASSOCIATION 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 TCRS -- TAX CREDIT RETURN SUMMARY XLCA -- XL CAPITAL COST FIGURES ARE SHOWN IN THOUSANDS. COST FIGURES ARE SHOWN IN THOUSANDS. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 31 Government Money Market Fund (UNAUDITED) SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) U.S. Government Agency Obligations 72.1% U.S. Treasury Obligations 14.2% Short-Term Investments 13.7%
+ PERCENTAGES ARE BASED ON TOTAL INVESTMENTS. SCHEDULE OF INVESTMENTS
Face Market Amount Value (000) (000) ------ ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS (A) -- 72.2% FFCB $ 4,500 0.308%, 07/27/09 $ 4,499 FHLB 2,500 0.316%, 11/12/09 2,497 3,000 0.230%, 09/28/09 2,998 5,000 0.210%, 08/05/09 4,999 4,100 0.210%, 09/29/09 4,098 2,000 0.205%, 09/11/09 1,999 3,000 0.200%, 08/24/09 2,999 8,000 0.190%, 08/21/09 7,998 3,148 0.180%, 08/20/09 3,147 3,000 0.170%, 07/21/09 3,000 1,200 0.155%, 07/08/09 1,200 FHLMC 15,000 0.381%, 10/05/09 14,985 7,800 0.220%, 09/23/09 7,796 5,000 0.198%, 09/28/09 4,998 5,000 0.190%, 08/17/09 4,999 3,000 0.170%, 07/14/09 3,000 4,342 0.170%, 08/24/09 4,341 2,562 0.150%, 07/06/09 2,562 FHLMC MTN 5,000 1.219%, 07/30/09 5,011
Bishop Street Funds 32 Government Money Market Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED)
Face Amount Market (000)/ Value Shares (000) ------ ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS (A) -- (CONTINUED) FNMA $ 7,000 0.551%, 07/30/09 $ 6,997 9,400 0.220%, 10/26/09 9,393 12,400 0.180%, 08/03/09 12,398 10,000 0.160%, 07/20/09 9,999 5,794 0.160%, 07/22/09 5,793 ---------- TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $131,706) 131,706 ---------- U.S. TREASURY OBLIGATIONS (A) -- 14.2% U.S. Treasury Bills 10,000 0.160%, 07/16/09 9,999 8,000 0.175%, 07/30/09 7,999 2,000 0.275%, 10/01/09 1,999 4,000 0.675%, 11/19/09 3,989 2,000 0.678%, 12/17/09 1,994 ---------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $25,980) 25,980 ---------- CASH EQUIVALENTS (B) -- 13.7% 8,255,829 AIM STIT Government & Agency Portfolio, 0.050% 8,256 8,506,005 Dreyfus Government Cash Management Fund, Institutional Shares, 0.193% 8,506 8,255,829 Fidelity Institutional Money Market Funds, Institutional Shares, 0.549% 8,256 ---------- TOTAL CASH EQUIVALENTS (Cost $25,018) 25,018 ---------- TOTAL INVESTMENTS (Cost $182,704) -- (100.1%) $ 182,704 ==========
June 30, 2009 www.bishopstreetfunds.com 33 Government Money Market Fund (UNAUDITED) SCHEDULE OF INVESTMENTS (CONTINUED) PERCENTAGES ARE BASED ON NET ASSETS OF $182,588 ($ THOUSANDS). (A) THE RATE REPORTED ON THE SCHEDULE OF INVESTMENTS IS THE EFFECTIVE YIELD AT TIME OF PURCHASE. (B) THE RATE REPORTED IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2009. FFCB -- FEDERAL FARM CREDIT BANK FHLB -- FEDERAL HOME LOAN BANK FHLMC -- FEDERAL HOME LOAN MORTGAGE ASSOCIATION FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION MTN -- MEDIUM TERM NOTE COST FIGURES ARE SHOWN IN THOUSANDS. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 34 Treasury Money Market Fund (UNAUDITED) SECTOR WEIGHTINGS+ (PERFORMANCE GRAPH) U.S. Treasury Obligations 82.0% Short-Term Investments 18.0%
+ PERCENTAGES BASED ON TOTAL INVESTMENTS. SCHEDULE OF INVESTMENTS
Face Amount Market (000)/ Value Shares (000) ------ ---------- U.S. TREASURY OBLIGATIONS (A) -- 82.0% U.S. Cash Management Bills $ 1,000 0.170%, 09/15/09 $ 1,000 U.S. Treasury Bills 7,500 0.100%, 07/16/09 7,500 3,500 0.164%, 07/23/09 3,500 7,500 0.162%, 07/30/09 7,499 2,000 0.123%, 08/06/09 2,000 6,500 0.128%, 08/13/09 6,499 3,000 0.190%, 08/20/09 2,999 1,000 0.130%, 09/03/09 1,000 6,000 0.166%, 09/10/09 5,998 3,000 0.189%, 09/24/09 2,999 3,000 0.160%, 10/08/09 2,999 1,000 0.235%, 10/22/09 999 2,000 0.235%, 11/19/09 1,998 ---------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $46,990) 46,990 ---------- CASH EQUIVALENTS (B) -- 18.0% 3,397,456 AIM STIT-Treasury Portfolio, 0.050% 3,397 3,397,456 BlackRock Liquidity Funds Treasury Trust Fund, 0.010% 3,397 3,500,409 Dreyfus Treasury Cash Management, 0.129% 3,500 ---------- TOTAL CASH EQUIVALENTS (Cost $10,294) 10,294 ---------- TOTAL INVESTMENTS (Cost $57,284) -- (100.0%) $ 57,284 ==========
PERCENTAGES ARE BASED ON NET ASSETS OF $57,269 ($ THOUSANDS). (A) THE RATE REPORTED ON THE SCHEDULE OF INVESTMENTS IS THE EFFECTIVE YIELD AT TIME OF PURCHASE. (B) THE RATE REPORTED IS THE 7-DAY EFFECTIVE YIELD AS OF JUNE 30, 2009. COST FIGURES ARE SHOWN IN THOUSANDS. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 35 Bishop Street Funds (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 2009 (IN THOUSANDS)
Large High Strategic Cap Core Grade Growth Equity Income Fund Fund Fund --------- -------- -------- ASSETS: Investments, at Cost $ 64,652 $ 67,064 $139,546 ======== ======== ======== Investments, at Value $ 60,990 $ 55,223(1) $143,074(1) Receivable for Investment Securities Sold 562 -- -- Dividends and Interest Receivable 54 63 1,467 Receivable for Fund Shares Sold 2 -- 73 Prepaid Expenses 2 1 2 -------- -------- -------- Total Assets 61,610 55,287 144,616 -------- -------- -------- LIABILITIES: Collateral on Securities Loaned -- 9,274 19,370 Payable for Fund Shares Redeemed 355 388 880 Payable for Investment Securities Purchased 174 -- -- Payable to Custodian 66 -- -- Income Distribution Payable -- -- 175 Advisory Fees Payable 38 26 41 Administrative Fees Payable 6 5 12 Shareholder Servicing Fees Payable 5 4 10 Chief Compliance Officer Fees Payable 1 1 3 Other Accrued Expenses Payable 22 19 43 -------- -------- -------- Total Liabilities 667 9,717 20,534 -------- -------- -------- Net Assets $ 60,943 $ 45,570 $124,082 ======== ======== ======== Paid-in Capital $ 76,982 $ 77,309 $117,704 Undistributed (Distributions in Excess of) Net Investment Income 1 (3) (23) Accumulated Net Realized Gain (Loss) on Investments (12,378) (19,895) 2,873 Net Unrealized Appreciation (Depreciation) on Investments (3,662) (11,841) 3,528 -------- -------- -------- Net Assets $ 60,943 $ 45,570 $124,082 ======== ======== ======== Class I Shares: Net Assets $ 60,943 $ 45,570 $124,082 Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 6,499 7,088 11,761 Net Asset Value, Offering and Redemption Price Per Share (Net Assets / Shares Outstanding) $ 9.38 $ 6.43 $ 10.55 ======== ======== ========
(1) INCLUDED IN "INVESTMENTS, AT VALUE" IS THE MARKET VALUE OF SECURITIES ON LOAN IN THE AMOUNTS OF $9,048 ($ THOUSANDS), AND $18,943 ($ THOUSANDS) 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 36 Bishop Street Funds (UNAUDITED) STATEMENTS OF ASSETS AND LIABILITIES JUNE 30, 2009 (IN THOUSANDS)
Hawaii Government Treasury Municipal Money Money Bond Market Market Fund Fund Fund --------- ---------- -------- ASSETS: Investments, at Cost $159,144 $182,704 $57,284 ======== ======== ======= Investments, at Value $158,129 $182,704 $57,284 Interest Receivable 3,086 15 -- Receivable for Fund Shares Sold 119 9 -- Receivable due from Investment Adviser -- 12 8 Prepaid Expenses 4 6 2 -------- -------- ------- Total Assets 161,338 182,746 57,294 -------- -------- ------- LIABILITIES: Income Distribution Payable 395 -- -- Payable for Fund Shares Redeemed -- 79 -- Advisory Fees Payable 28 -- -- Shareholder Servicing Fees Payable 13 -- -- Administrative Fees Payable 9 18 5 Distribution Fees Payable 5 10 -- Chief Compliance Officer Fees Payable 3 4 1 Other Accrued Expenses Payable 55 47 19 -------- -------- ------- Total Liabilities 508 158 25 -------- -------- ------- Net Assets $160,830 $182,588 $57,269 ======== ======== ======= Paid-in Capital $163,057 $182,547 $57,187 Undistributed Net Investment Income 9 -- 21 Accumulated Net Realized Gain (Loss) on Investments (1,221) 41 61 Net Unrealized Depreciation on Investments (1,015) -- -- -------- -------- ------- Net Assets $160,830 $182,588 $57,269 ======== ======== ======= Class I Shares: Net Assets $136,224 $131,158 $57,269 Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 13,221 131,138 57,188 Net Asset Value, Offering and Redemption Price Per Share -- Class I (Net Assets / Shares Outstanding) $ 10.30 $ 1.00 $ 1.00 ======== ======== ======= Class A Shares: Net Assets $ 24,606 $ 51,430 -- Outstanding Shares of Beneficial Interest (unlimited authorization -- no par value) 2,388 51,412 -- Net Asset Value, and Redemption Price Per Share -- Class A (Net Assets / Shares Outstanding) $ 10.30 $ 1.00 -- ======== ======== ======= Maximum Offering Price Per Shares -- Class A ($10.30 / 97.00%) $ 10.62 -- -- ======== ======== =======
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, 2009 www.bishopstreetfunds.com 37 Bishop Street Funds (UNAUDITED) STATEMENTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009 (IN THOUSANDS)
Large High Strategic Cap Core Grade Growth Equity Income Fund Fund Fund --------- -------- ------- INVESTMENT INCOME: Dividend Income $ 341 $ 480 $ 9 Interest Income -- -- 2,880 Securities Lending, Net of commissions paid to lending agent -- 16 46 ------- -------- ------- Total Investment Income 341 496 2,935 ------- -------- ------- EXPENSES: Investment Adviser Fees 227 171 336 Shareholder Servicing Fee 77 58 153 Administrative Fees 61 46 122 Chief Compliance Officer Fees 1 1 2 Transfer Agent Fees 20 19 25 Professional Fees 12 8 24 Printing Fees 6 4 12 Trustees' Fees 2 2 4 Custody Fees 2 1 3 Line of Credit 1 -- -- Registration Fees 1 1 1 Miscellaneous Expenses 2 2 12 ------- -------- ------- Total Expenses 412 313 694 ------- -------- ------- Less Waivers: Investment Adviser Fees -- (18) (89) Shareholder Servicing Fees (46) (35) (92) Administrative Fees (24) (18) (49) ------- -------- ------- Total Waivers (70) (71) (230) ------- -------- ------- Total Net Expenses 342 242 464 ------- -------- ------- Net Investment Income (Loss) (1) 254 2,471 ------- -------- ------- Net Realized Gain (Loss) on Investments (5,425) (11,151) 3,909 Change in Unrealized Appreciation (Depreciation) on Investments 14,828 13,980 (3,967) ------- -------- ------- Net Realized and Unrealized Gain (Loss) on Investments 9,403 2,829 (58) ------- -------- ------- Increase in Net Assets Resulting from Operations $ 9,402 $ 3,083 $ 2,413 ======= ======== =======
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 (UNAUDITED) STATEMENTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2009 (IN THOUSANDS)
Hawaii Government Treasury Municipal Money Money Bond Market Market Fund Fund Fund --------- ---------- -------- INVESTMENT INCOME: Interest Income $3,419 $ 515 $ 49 Dividend Income 5 -- -- ------ ------ ----- Total Investment Income 3,424 515 49 ------ ------ ----- EXPENSES: Investment Adviser Fees 278 320 101 Shareholder Servicing Fee 199 267 66 Administrative Fees 159 214 64 Distribution Fees, Class A 30 68 -- Chief Compliance Officer Fees 3 3 1 Transfer Agent Fees 40 48 22 Professional Fees 30 42 13 Printing Fees 15 21 7 Trustees' Fees 6 8 3 Custody Fees 4 5 2 Registration Fees 2 4 2 Miscellaneous Expenses 22 19 8 ------ ------ ----- Total Expenses 788 1,019 289 ------ ------ ----- Less: Waiver of Investment Adviser Fees (98) (172) (81) Waiver of Shareholder Servicing Fees (119) (267) (66) Reimbursement of Shareholder Servicing Fees -- (27) (60) Waiver of Administrative Fees (104) (85) (32) ------ ------ ----- Total Waivers (321) (551) (239) ------ ------ ----- Total Net Expenses 467 468 50 ------ ------ ----- Net Investment Income (Loss) 2,957 47 (1) ------ ------ ----- Net Realized Gain (Loss) on Investments (808) 55 83 Change in Unrealized Appreciation on Investments 4,662 -- -- ------ ------ ----- Net Realized and Unrealized Gain on Investments 3,854 55 83 ------ ------ ----- Increase in Net Assets Resulting from Operations $6,811 $ 102 $ 82 ====== ====== =====
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, 2009 www.bishopstreetfunds.com 39 Bishop Street Funds STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2009 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2008 (IN THOUSANDS)
Strategic Large Cap Core Growth Fund Equity Fund ------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income (Loss) $ (1) $ (179) $ 254 $ 657 Net Realized Loss on Investments (5,425) (6,780) (11,151) (8,415) Change in Unrealized Appreciation (Depreciation) on Investments 14,828 (40,393) 13,980 (31,430) -------- -------- -------- -------- Increase (Decrease) in Net Assets Resulting from Operations 9,402 (47,352) 3,083 (39,188) -------- -------- -------- -------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares -- -- (257) (663) Capital Gains: Class I Shares -- (1,792) -- (405) -------- -------- -------- -------- Total Dividends and Distributions -- (1,792) (257) (1,068) -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 2,501 7,881 1,878 7,026 Reinvestments of Cash Distributions -- 1,339 177 802 Cost of Shares Redeemed (13,197) (24,223) (11,170) (17,055) -------- -------- -------- -------- Net Decrease in Net Assets From Capital Share Transactions (10,696) (15,003) (9,115) (9,227) -------- -------- -------- -------- Total Decrease in Net Assets (1,294) (64,147) (6,289) (49,483) -------- -------- -------- -------- NET ASSETS: Beginning of Period 62,237 126,384 51,859 101,342 -------- -------- -------- -------- End of Period $ 60,943 $ 62,237 $ 45,570 $ 51,859 ======== ======== ======== ======== Undistributed (Distributions in Excess of) Net Investment Income $ 1 $ 2 $ (3) $ -- ======== ======== ======== ======== SHARE TRANSACTIONS: Class I Shares: Shares Issued 297 713 329 906 Shares Issued in Lieu of Cash Distributions -- 110 31 100 Shares Redeemed (1,500) (2,118) (1,881) (2,014) -------- -------- -------- -------- Net Decrease in Shares Outstanding from Share Transactions (1,203) (1,295) (1,521) (1,008) ======== ======== ======== ========
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR ZERO SHARES, OR HAVE BEEN ROUNDED TO $0 OR ZERO SHARES. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 40 Bishop Street Funds STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2009 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2008 (IN THOUSANDS)
High Grade Hawaii Municipal Income Fund Bond Fund ------------------- ------------------- 2009 2008 2009 2008 -------- -------- -------- -------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income $ 2,471 $ 5,575 $ 2,957 $ 6,375 Net Realized Gain (Loss) on Investments 3,909 (29) (808) (373) Change in Unrealized Appreciation (Depreciation) on Investments (3,967) 4,542 4,662 (7,800) -------- -------- -------- -------- Increase (Decrease) in Net Assets Resulting from Operations 2,413 10,088 6,811 (1,798) -------- -------- -------- -------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares (2,496) (5,571) (2,533) (5,387) Class A Shares -- -- (425) (980) -------- -------- -------- -------- Total Dividends and Distributions (2,496) (5,571) (2,958) (6,367) -------- -------- -------- -------- CAPITAL SHARE TRANSACTIONS: Class I Shares: Proceeds from Shares Issued 19,632 15,292 8,501 13,137 Reinvestments of Cash Distributions 1,485 3,249 335 685 Cost of Shares Redeemed (18,928) (37,305) (6,676) (20,981) -------- -------- -------- -------- Total Class I Capital Share Transactions 2,189 (18,764) 2,160 (7,159) -------- -------- -------- -------- Class A Shares: Proceeds from Shares Issued -- -- 812 1,938 Reinvestments of Cash Distributions -- -- 200 423 Cost of Shares Redeemed -- -- (709) (6,466) -------- -------- -------- -------- Total Class A Capital Share Transactions -- -- 303 (4,105) -------- -------- -------- -------- Net Increase (Decrease) in Net Assets from Capital Share Transactions 2,189 (18,764) 2,463 (11,264) -------- -------- -------- -------- Total Increase (Decrease) in Net Assets 2,106 (14,247) 6,316 (19,429) -------- -------- -------- -------- NET ASSETS: Beginning of Period 121,976 136,223 154,514 173,943 -------- -------- -------- -------- End of Period $124,082 $121,976 $160,830 $154,514 ======== ======== ======== ======== Undistributed (Distributions in Excess of) Net Investment Income $ (23) $ 2 $ 9 $ 10 ======== ======== ======== ======== SHARE TRANSACTIONS: Class I Shares: Shares Issued 1,888 1,504 823 1,294 Shares Issued in Lieu of Cash Distributions 143 320 33 67 Shares Redeemed (1,817) (3,693) (649) (2,064) -------- -------- -------- -------- Total Class I Share Transactions 214 (1,869) 207 (703) -------- -------- -------- -------- Class A Shares: Shares Issued -- -- 79 188 Shares Issued in Lieu of Cash Distributions -- -- 20 41 Shares Redeemed -- -- (69) (628) -------- -------- -------- -------- Total Class A Share Transactions -- -- 30 (399) -------- -------- -------- -------- Net Increase (Decrease) in Shares Outstanding from Share Transactions 214 (1,869) 237 (1,102) ======== ======== ======== ========
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR ZERO SHARES, OR HAVE BEEN ROUNDED TO $0 OR ZERO SHARES. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 41 Bishop Street Funds STATEMENTS OF CHANGES IN NET ASSETS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2009 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2008 (IN THOUSANDS)
Government Money Market Treasury Money Fund Market Fund --------------------- --------------------- 2009 2008 2009 2008 --------- --------- --------- --------- INVESTMENT ACTIVITIES FROM OPERATIONS: Net Investment Income (Loss) $ 47 $ 4,965 $ (1) $ 1,908 Net Realized Gain on Investments 55 5 83 59 --------- --------- --------- --------- Increase in Net Assets Resulting from Operations 102 4,970 82 1,967 --------- --------- --------- --------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Net Investment Income: Class I Shares (47) (3,629) -- (1,908) Class A Shares -- (1,336) -- -- Capital Gains: Class I Shares -- -- (81) -- --------- --------- --------- --------- Total Dividends and Distributions (47) (4,965) (81) (1,908) --------- --------- --------- --------- CAPITAL SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE): Class I Shares: Proceeds from Shares Issued 283,629 497,017 134,111 497,540 Reinvestments of Cash Distributions 31 952 71 267 Cost of Shares Redeemed (316,708) (513,532) (156,881) (565,411) --------- --------- --------- --------- Total Class I Capital Share Transactions (33,048) (15,563) (22,699) (67,604) --------- --------- --------- --------- Class A Shares: Proceeds from Shares Issued 25,205 93,907 -- -- Reinvestments of Cash Distributions -- 1,336 -- -- Cost of Shares Redeemed (34,235) (98,367) -- -- --------- --------- --------- --------- Total Class A Capital Share Transactions (9,030) (3,124) -- -- --------- --------- --------- --------- Net Decrease in Net Assets from Capital Share Transactions (42,078) (18,687) (22,699) (67,604) --------- --------- --------- --------- Total Decrease in Net Assets (42,023) (18,682) (22,698) (67,545) --------- --------- --------- --------- NET ASSETS: Beginning of Period 224,611 243,293 79,967 147,512 --------- --------- --------- --------- End of Period $ 182,588 $ 224,611 $ 57,269 $ 79,967 ========= ========= ========= ========= Undistributed Net Investment Income $ -- $ -- $ 21 $ 22 ========= ========= ========= =========
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. Bishop Street Funds 42 This page intentionally left blank. Bishop Street Funds FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2009 (UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
INVESTMENT ACTIVITIES DIVIDENDS AND ---------------------------- TOTAL DISTRIBUTIONS FROM NET ASSET NET NET REALIZED INVESTMENT --------------------- TOTAL VALUE, INVESTMENT AND UNREALIZED ACTIVITIES NET DIVIDENDS BEGINNING INCOME GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND OF PERIOD (LOSS)(1) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS --------- ---------- --------------- ---------- ---------- -------- ------------- STRATEGIC GROWTH FUND CLASS I SHARES: 2009 $ 8.08 $ -- $ 1.30 $ 1.30 $ -- $ -- $ -- 2008 14.05 (0.02) (5.73) (5.75) -- (0.22) (0.22) 2007 14.84 (0.03) 1.53 1.50 -- (2.29) (2.29) 2006 14.35 (0.03) 1.41 1.38 -- (0.89) (0.89) 2005 13.08 (0.05) 1.56 1.51 -- (0.24) (0.24) 2004 11.93 (0.05) 1.20 1.15 -- -- -- LARGE CAP CORE EQUITY FUND CLASS I SHARES: 2009 $ 6.02 $ 0.03 $ 0.41 $ 0.44 $(0.03) $ -- $(0.03) 2008 10.54 0.07 (4.47) (4.40) (0.07) (0.05) (0.12) 2007 10.62 0.04 0.52 0.56 (0.04) (0.60) (0.64) 2006(2) 10.00 0.04 0.62 0.66 (0.04) -- (0.04) HIGH GRADE INCOME FUND CLASS I SHARES: 2009 $10.56 $ 0.21 $(0.01) $0.20 $(0.21) $ -- $(0.21) 2008 10.15 0.43 0.41 0.84 (0.43) -- (0.43) 2007 9.94 0.44 0.21 0.65 (0.44) -- (0.44) 2006 10.06 0.41 (0.12) 0.29 (0.41) -- (0.41) 2005 10.33 0.39 (0.19) 0.20 (0.39) (0.08) (0.47) 2004 10.40 0.38 (0.03) 0.35 (0.38) (0.04) (0.42) HAWAII MUNICIPAL BOND FUND CLASS I SHARES: 2009 $10.05 $ 0.19 $ 0.25 $ 0.44 $(0.19) $ -- $(0.19) 2008 10.56 0.40 (0.51) (0.11) (0.40) -- (0.40) 2007 10.77 0.42 (0.16) 0.26 (0.42) (0.05) (0.47) 2006 10.77 0.43 0.04 0.47 (0.43) (0.04) (0.47) 2005 11.02 0.43 (0.16) 0.27 (0.43) (0.09) (0.52) 2004 11.21 0.44 (0.07) 0.37 (0.44) (0.12) (0.56) CLASS A SHARES: 2009 $10.05 $ 0.18 $ 0.25 $ 0.43 $(0.18) $ -- $(0.18) 2008 10.56 0.38 (0.51) (0.13) (0.38) -- (0.38) 2007 10.77 0.39 (0.16) 0.23 (0.39) (0.05) (0.44) 2006 10.77 0.40 0.04 0.44 (0.40) (0.04) (0.44) 2005 11.02 0.41 (0.16) 0.25 (0.41) (0.09) (0.50) 2004 11.21 0.41 (0.07) 0.34 (0.41) (0.12) (0.53)
+ 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 MAY 3, 2006. 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 (LOSS) PORTFOLIO END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE TURNOVER PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS RATE - --------- ------- ----------- ----------- ------------- ------------- --------- $ 9.38 16.09% $ 60,943 1.11%* 1.34%* 0.00%* 26% 8.08 (41.46) 62,237 1.06 1.29 (0.19) 73 14.05 10.10 126,384 1.07 1.30 (0.22) 61 14.84 9.78 142,929 1.06 1.30 (0.23) 53 14.35 11.52 123,341 1.07 1.31 (0.35) 55 13.08 9.64 79,168 1.05 1.29 (0.38) 59 $ 6.43 7.43% $ 45,570 1.05%* 1.36%* 1.10%* 46% 6.02 (42.02) 51,859 1.05 1.30 0.84 75 10.54 5.24 101,342 1.05 1.31 0.38 65 10.62 6.63 102,850 1.05* 1.32* 0.64* 51 $10.55 1.95% $124,082 0.76%* 1.14%* 4.04%* 49% 10.56 8.53 121,976 0.76 1.10 4.22 28 10.15 6.67 136,223 0.76 1.11 4.38 26 9.94 2.96 141,448 0.76 1.12 4.12 41 10.06 2.00 141,439 0.76 1.13 3.82 45 10.33 3.41 157,170 0.76 1.11 3.68 45 $10.30 4.41% $136,224 0.55%* 0.95%* 3.76%* 13% 10.05 (1.02) 130,807 0.55 0.92 3.91 36 10.56 2.47 144,828 0.55 0.93 3.92 25 10.77 4.42 138,333 0.55 0.93 3.99 47 10.77 2.51 145,213 0.55 0.93 3.97 41 11.02 3.36 148,575 0.55 0.92 3.97 40 $10.30 4.28% $ 24,606 0.80%* 1.20%* 3.51%* 13% 10.05 (1.27) 23,707 0.80 1.17 3.66 36 10.56 2.21 29,115 0.80 1.18 3.67 25 10.77 4.16 30,421 0.80 1.18 3.74 47 10.77 2.25 31,515 0.80 1.18 3.72 41 11.02 3.10 30,484 0.80 1.17 3.72 40
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 45 Bishop Street Funds FINANCIAL HIGHLIGHTS FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2009 (UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
INVESTMENT ACTIVITIES DIVIDENDS AND --------------------------- TOTAL DISTRIBUTIONS FROM NET ASSET NET NET REALIZED INVESTMENT -------------------- TOTAL VALUE, INVESTMENT AND UNREALIZED ACTIVITIES NET DIVIDENDS BEGINNING INCOME GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND OF PERIOD (LOSS)(1) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS --------- ---------- -------------- ---------- ---------- ------- ------------- GOVERNMENT MONEY MARKET FUND CLASS I SHARES: 2009 $1.00 $ --* $--* $ -- $ --* $-- $ --* 2008 1.00 0.02 --* 0.02 (0.02) -- (0.02) 2007 1.00 0.05 -- 0.05 (0.05) -- (0.05) 2006 1.00 0.05 -- 0.05 (0.05) -- (0.05) 2005 1.00 0.03 -- 0.03 (0.03) -- (0.03) 2004 1.00 0.01 -- 0.01 (0.01) -- (0.01) CLASS A SHARES: 2009 $1.00 $ --* $--* $ -- $ --* $-- $ --* 2008 1.00 0.02 --* 0.02 (0.02) -- (0.02) 2007 1.00 0.05 -- 0.05 (0.05) -- (0.05) 2006 1.00 0.04 -- 0.04 (0.04) -- (0.04) 2005 1.00 0.03 -- 0.03 (0.03) -- (0.03) 2004 1.00 0.01 -- 0.01 (0.01) -- (0.01) TREASURY MONEY MARKET FUND CLASS I SHARES: 2009 $1.00 $ (--)* $--* $ -- $ -- $--* $ --* 2008 1.00 0.01 --* 0.01 (0.01) -- (0.01) 2007 1.00 0.04 -- 0.04 (0.04) --* (0.04) 2006 1.00 0.04 -- 0.04 (0.04) -- (0.04) 2005 1.00 0.03 -- 0.03 (0.03) -- (0.03) 2004 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. * AMOUNT REPRESENTS LESS THAN $0.01. ** ANNUALIZED (1) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES. (2) THE RATIO OF EXPENSES TO AVERAGE NET ASSETS INCLUDES THE IMPACT OF THE COST OF THE TREASURY GUARANTEE PROGRAM. IF THIS EXPENSE HAD BEEN SUBJECT TO THE ADVISER'S VOLUNTARY EXPENSE LIMITATION, THE RATIO WOULD HAVE BEEN .50% FOR CLASS I SHARES AND .75% FOR CLASS A SHARES, FOR FISCAL YEAR ENDED 2008. (3) THE RATIO OF EXPENSES TO AVERAGE NET ASSETS INCLUDES THE IMPACT OF A YIELD FLOOR WAIVER WHICH IS INCLUDED IN SHAREHOLDER SERVICING FEES WAIVERS AND REIMBURSEMENT ON THE STATEMENT OF OPERATIONS. IF THIS EXPENSE WERE NOT WAIVED AND REIMBURSED, THE RATIO WOULD HAVE BEEN .44%, FOR THE FISCAL YEAR ENDED 2008 AND THE SIX-MONTH PERIOD ENDED JUNE 30, 2009. (4) THE RATIO OF EXPENSES TO AVERAGE NET ASSETS INCLUDES THE IMPACT OF A YIELD FLOOR WAIVER WHICH IS INCLUDED IN SHAREHOLDER SERVICING FEES WAIVERS AND REIMBURSEMENT ON THE STATEMENT OF OPERATIONS. IF THIS EXPENSE WERE NOT WAIVED AND REIMBURSED, THE RATIO WOULD HAVE BEEN .50% FOR CLASS I SHARES AND .75% FOR CLASS A SHARES, FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2009. AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0. Bishop Street Funds 46
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 - --------- ------- ----------- ----------- ------------- ------------ $1.00 0.02% $131,158 0.43%(4)** 0.89%** 0.06%** 1.00 2.18 164,165 0.51(2) 0.88 2.19 1.00 4.86 179,725 0.50 0.86 4.75 1.00 4.63 159,044 0.50 0.86 4.55 1.00 2.78 170,455 0.50 0.87 2.73 1.00 0.92 167,910 0.50 0.84 0.90 $1.00 0.00% $ 51,430 0.47%(4)* 1.14%** 0.00%** 1.00 1.93 60,446 0.76(2) 1.13 1.94 1.00 4.60 63,568 0.75 1.11 4.50 1.00 4.37 59,212 0.75 1.11 4.33 1.00 2.53 35,530 0.75 1.12 2.60 1.00 0.67 17,824 0.75 1.09 0.65 $1.00 0.13% $ 57,269 0.15%(3)** 0.90%** (0.00)%** 1.00 1.37 79,967 0.43(3) 0.87 1.49 1.00 4.49 147,512 0.44 0.88 4.38 1.00 4.51 158,364 0.44 0.87 4.39 1.00 2.62 223,614 0.44 0.87 2.61 1.00 0.91 208,153 0.44 0.84 0.89
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. June 30, 2009 www.bishopstreetfunds.com 47 Bishop Street Funds (UNAUDITED) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 THE AMOUNTS INCLUDED IN THE NOTES TO FINANCIAL STATEMENTS ARE IN THOUSANDS UNLESS OTHERWISE NOTED. 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, Government Money Market Fund (formerly 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 in the most advantageous market, 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 fair 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 48 (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 Government 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. In September, 2006, the Financial Accounting Standards Board ("FASB") released STATEMENT OF FINANCIAL ACCOUNTING STANDARDS ("SFAS") No. 157, which provides enhanced guidance for using fair value to measure assets and liabilities. The Fund adopted SFAS No. 157 on January 1, 2008. SFAS No. 157 establishes a fair value hierarchy and specifies that a valuation technique used to measure fair value shall maximize the use of observable inputs and minimize the use of unobservable inputs. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under SFAS No. 157 are described below: - Level 1 -- Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date; - Level 2 -- Quoted prices which are not in active markets, or inputs that are observable (either directly or indirectly) for substantially similar assets; and - Level 3 -- Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity). As required by SFAS No.157, investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3, whose fair value measurement considers several inputs, may include Level 1 or Level 2 inputs as components of the overall fair value measurement. The table below sets June 30, 2009 www.bishopstreetfunds.com 49 Bishop Street Funds (UNAUDITED) forth information about the level within the fair value hierarchy at which the Funds' investments are measured at June 30, 2009: STRATEGIC GROWTH FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Common Stock $60,990 $ -- $ -- $ 60,990 ------- -------- ------- -------- Total Investments in Securities $60,990 $ -- $ -- $ 60,990 ======= ======== ======= ======== LARGE CAP CORE EQUITY FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Common Stock $45,429 $ -- $ -- $ 45,429 Exchange Traded Fund 116 -- -- 116 Cash Equivalents 9,678 -- -- 9,678 ------- -------- ------- -------- Total Investments in Securities $55,223 $ -- $ -- $ 55,223 ======= ======== ======= ======== HIGH GRADE INCOME FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Corporate Obligations $ -- $ 86,224 $ -- $ 86,224 U.S. Government Agency Obligations -- 14,750 -- 14,750 U.S. Government Mortgage-Backed Obligations -- 7,932 -- 7,932 Asset-Backed Securities -- 6,218 -- 6,218 U.S. Treasury Obligations -- 4,935 -- 4,935 Municipal Bonds -- 2,243 -- 2,243 Cash Equivalents 20,772 -- -- 20,772 ------- -------- ------- -------- Total Investments in Securities $20,772 $122,302 $ -- $143,074 ======= ======== ======= ======== HAWAII MUNICIPAL BOND FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Municipal Bonds $ -- $157,313 $ -- $157,313 Cash Equivalents 816 -- -- 816 ------- -------- ------- -------- Total Investments in Securities $ 816 $157,313 $ -- $158,129 ======= ======== ======= ======== GOVERNMENT MONEY MARKET FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL U.S. Government Agency Obligations $ -- $131,706 $ -- $131,706 U.S. Treasury Obligations -- 25,980 -- 25,980 Cash Equivalents 25,018 -- -- 25,018 ------- -------- ------- -------- Total Investments in Securities $25,018 $157,686 $ -- $182,704 ======= ======== ======= ======== TREASURY MONEY MARKET FUND Investments in Securities LEVEL 1 LEVEL 2 LEVEL 3 TOTAL U.S. Treasury Obligations $ -- $ 46,990 $ -- $ 46,990 Cash Equivalents 10,294 -- -- 10,294 ------- -------- ------- -------- Total Investments in Securities $10,294 $ 46,990 $ -- $ 57,284 ======= ======== ======= ========
Bishop Street Funds 50 (UNAUDITED) 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 and 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 High Grade Income and Hawaii Municipal Bond Funds use the scientific interest method, which approximates the effective interest method. The Government Money Market and Treasury Money Market Funds use the straight line method. REPURCHASE AGREEMENTS In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, the Funds have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. CLASSES Class-specific expenses are borne by the applicable 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. Distribution fees are the only class-specific expense. 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 The Strategic Growth and Large Cap Core Equity Funds declare and pay dividends from any net investment income, if available, on a quarterly basis. Dividends from net investment income are declared daily and paid on a monthly basis for the High Grade Income, Hawaii Municipal Bond, Government Money Market and Treasury Money Market Funds. Any net realized capital gains will be distributed at least annually for all Funds. Distributions to shareholders are recorded on the ex-dividend date. FRONT-END SALES COMMISSION Front-end sales commissions (the "sales charge") are not recorded as expenses of the Hawaii Municipal Bond Fund. Front-end sales commissions are deducted from proceeds from the sales of Hawaii Municipal Bond Fund shares prior to investment in Class A shares. During the six month period ended June 30, 2009 the Hawaii Municipal Bond June 30, 2009 www.bishopstreetfunds.com 51 Bishop Street Funds (UNAUDITED) Fund retained $13 in front-end sales commissions from the sales of Class A shares imposed on redemptions by shareholders. CASH OVERDRAFT CHARGES Per the terms of an informal agreement with Union Bank, 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. For the six month period ended June 30, 2009, there were no cash overdrafts. 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 Government Money Market and Treasury Money Market Funds (collectively, the "Money Market Funds"). The Adviser has voluntarily agreed to waive a portion of its advisory fee to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. The voluntary expense limitations are as follows: Strategic Growth Fund (Class I) 1.25%, 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%, Government Money Market Fund (Class I) 0.50%, Government Money Market Fund (Class A) 0.75% and Treasury Money Market Fund (Class I) 0.44%. These fees and waivers are labeled on the Statement of Operations as "Investment Adviser Fees." 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 Treasury and Government 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. Bishop Street Funds 52 (UNAUDITED) 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, and including $1 billion. Union Bank, 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. These fees are disclosed on the Statement of Operations as "Custodian Fees." 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 each Fund's respective average daily net assets. These fees and waivers are labeled as "Administrative Fees" on the Statement of Operations. Pursuant to an agreement dated January 30, 1995, DST Systems, Inc. ("DST") acts as the Transfer Agent of the Trust. As such, DST provides transfer agency, dividend disbursing and shareholder services to the Trust. These fees are disclosed on the Statement of Operations as "Transfer Agent Fees." 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. This fee is disclosed as "Distribution Fees, Class A" on the Statement of Operations. 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 June 30, 2009 www.bishopstreetfunds.com 53 Bishop Street Funds (UNAUDITED) 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 each Fund's respective average daily net assets. Additionally, SIDCO has voluntarily agreed to waive a portion of its shareholder servicing fee in order to limit the one-day net income yield of the Government Money Market Fund, and the Treasury Money Market Fund to not less than 0.0000% of the average daily net assets. These fees and waivers are represented as "Shareholder Servicing Fees" on the Statement of Operations. 5. TRANSACTIONS WITH AFFILIATES Certain officers of the Trust are also officers of SEI Investments Global Funds Services (the "Administrator"), a wholly owned subsidiary of SEI Investments Company, and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. A portion of the services provided by the Chief Compliance Officer ("CCO") and his staff, whom are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust's Advisers and service providers as required by SEC regulations. The CCO's services have been approved by and are reviewed by the Board. These fees are disclosed on the Statement of Operations as "Chief Compliance Officer Fees." 6. SECURITIES LENDING The Fund may lend securities having a market value up to one-third of the Fund's total assets. Such loans are secured by collateral equal to no less than the market value of the loaned securities determined daily. Such collateral will be cash or debt securities issued or guaranteed by the U.S. Government or any agencies. Cash collateral received in connection with these loans is invested in short-term money market instruments. It's the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loans were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the Bishop Street Funds 54 (UNAUDITED) securities. The Fund could also experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. At June 30, 2009, six counterparties held 85.93% of the total securities on loan of the Large Cap Core Equity Fund and seven counterparties held 92.96% of the total securities on loan of the High Grade Income Fund. 7. 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, 2009 are presented below for the Funds.
Strategic Large High Grade Hawaii Growth Cap Core Income Municipal Fund Equity Fund Fund Bond Fund --------- ----------- ---------- --------- Purchases U.S. Government Securities $ -- $ -- $ 8,518 $ -- Other 15,864 21,120 48,197 24,135 Sales and Maturities U.S. Government Securities $ -- $ -- $39,288 $ -- Other 26,113 29,926 18,573 19,834
8. 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. On January 1, 2008, the Funds adopted Financial Accounting Standards Board ("FASB") Interpretation No 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the "more-likely-than-not" threshold, based on the largest benefit that is more than 50 percent likely to be realized. June 30, 2009 www.bishopstreetfunds.com 55 Bishop Street Funds (UNAUDITED) The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Management has completed their analysis and has determined that the adoption of FIN 48 will not have an impact on the Fund's financial statements, and therefore the Funds did not record any tax expense in the current period. If the Funds were to record a tax expense as a result of the adoption of FIN 48, the tax expense would include any interest and penalties. The Funds file U. S. federal income tax returns. While the statute of limitations remains open to examine the Fund's U.S. federal income tax returns filed for the fiscal years 2005 to 2008, no examinations are in progress or anticipated at this time. 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. 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. The tax character of dividends and distributions declared during the years ended December 31, 2008 and 2007 were as follows:
Ordinary Tax Exempt Long-Term Income Income Capital Gain Total -------- ---------- ------------ -------- Strategic Growth Fund 2008 $ -- $-- $ 1,792 $ 1,792 2007 1,827 -- 16,642 18,469 Large Cap Core Equity Fund 2008 $ 663 $-- $ 405 $ 1,068 2007 4,190 -- 1,777 5,967 High Grade Income Fund 2008 $5,571 $-- $ -- $ 5,571 2007 5,901 -- -- 5,901
Bishop Street Funds 56 (UNAUDITED)
Ordinary Tax Exempt Long-Term Income Income Capital Gain Total -------- ---------- ------------ ------- Hawaii Municipal Bond Fund 2008 $ -- $6,367 $ -- $ 6,367 2007 181 6,697 647 7,525 Government Money Market Fund 2008 $ 4,965 $ -- $ -- $ 4,965 2007 10,658 -- -- 10,658 Treasury Money Market Fund 2008 $ 1,908 $ -- $ -- $ 1,908 2007 7,119 -- -- 7,119
As of December 31, 2008, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:
Large Cap Government Treasury Strategic Core High Grade Hawaii Money Money Growth Equity Income Municipal Market Market Fund Fund Fund Bond Fund Fund Fund --------- --------- ---------- --------- ---------- -------- Undistributed net investment income $ -- $ -- $ -- $ -- $ -- $81 Undistributed tax-exempt income -- -- -- 1 -- -- Capital loss carryforwards (839) (5,569) (983) (410) (14) -- Post-October losses (2,317) (2,267) -- -- -- -- Unrealized appreciation (depreciation) (22,285) (26,729) 7,444 (5,671) -- -- -------- -------- ------ ------- ---- --- Total Distributable Earnings (Accumulated Losses) $(25,441) $(34,565) $6,461 $(6,080) $(14) $81 ======== ======== ====== ======= ==== ===
Post-October losses represent losses realized on investment transactions from November 1, 2008 through December 31, 2008 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, 2009 www.bishopstreetfunds.com 57 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:
Large High Government Strategic Cap Core Grade Hawaii Money Growth Growth Income Municipal Market Fund Fund Fund Bond Fund Fund --------- -------- ------ --------- ---------- Dec. 2009 $ -- $ -- $ -- $ -- $11 Dec. 2013 -- -- -- -- 3 Dec. 2014 -- -- 642 -- -- Dec. 2015 -- -- 316 -- -- Dec. 2016 839 5,569 25 410 -- ---- ------ ---- ---- --- Total $839 $5,569 $983 $410 $14 ==== ====== ==== ==== ===
During the year ended December 31, 2008, the Government Money Market utilized capital loss carryforwards of $5 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, 2009 were as follows:
Strategic Large Cap High Grade Hawaii Growth Core Income Municipal Fund Equity Fund Fund Bond Fund --------- ----------- ---------- --------- Federal Tax Cost $ 65,536 $ 67,826 $139,544 $159,137 -------- -------- -------- -------- Gross Unrealized Appreciation 6,297 2,525 4,398 2,819 Gross Unrealized Depreciation (10,843) (15,128) (868) (3,827) -------- -------- -------- -------- Net Unrealized Appreciation (Depreciation) $ (4,546) $(12,603) $ 3,530 $ (1,008) ======== ======== ======== ========
For Federal income tax purposes, the Government Money Market and Treasury Money Market Funds' aggregate tax cost is equal to book cost. 9. 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 addition, each Fund's investments in debt securities are subject to "credit risk," which is the risk that an issuer will be unable, or will be perceived to be unable, to repay its obligations at maturity. Funds that invest primarily in high Bishop Street Funds 58 (UNAUDITED) quality debt securities generally are subject to less credit risk than funds that invest in lower quality debt securities. Certain debt securities are backed by credit enhancements from various financial institutions and financial guarantee assurance agencies. These credit enhancements reinforce the credit quality of the individual securities; however, if any of the financial institutions or financial guarantee assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their credit enhancements in any one financial institution, the risk of credit quality deterioration increases. The value of asset-backed securities may be affected by the credit risk of the servicing agent for the pool, the originator of the loans or receivables, or the financial institution(s) providing the credit support. In addition to credit risk, asset-backed securities and other securities with early redemption features are subject to pre-payment risk. During periods of declining interest rates, prepayment of loans underlying asset-backed securities can be expected to accelerate or an issuer may retire an outstanding bond early to reduce interest costs. A Fund's ability to maintain positions in such securities will be affected by reductions in the principal amount of such securities resulting from prepayments, and its ability to reinvest the returns of principal at comparable yields is subject to generally prevailing interest rates at that time. 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 claims are considered remote. Due to volatility in the fixed income and equity markets, the market value of some of the Fund's holdings may currently be lower than shown in the Schedules of Investments ("SOI"). The values shown in the SOI's were the market values as of June 30, 2009 and do not reflect any market events after June 30, 2009. 10. LINE OF CREDIT The Funds entered into an agreement which enables them to participate in a $5 million unsecured committed revolving line of credit on a first come, first serve basis, with Union Bank, N.A. (the "Bank") which expires June 11, 2010. 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 during the year at the Bank current reference rate minus 1%. As of June 30, 2009 the Funds had no borrowings outstanding. For the six months ended June 30, 2009, the Funds had borrowings costs of $1 for the Strategic Growth Fund, over a period of 50 days at a weighted average interest rate of 2.25%. June 30, 2009 www.bishopstreetfunds.com 59 Bishop Street Funds (UNAUDITED) 11. OTHER At June 30, 2009, 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 94.13% Large Cap Core Equity Fund, Class I Shares 1 98.67 High Grade Income Fund, Class I Shares 1 86.27 Hawaii Municipal Bond Fund, Class I Shares 1 90.76 Hawaii Municipal Bond Fund, Class A Shares 1 35.53 Government Money Market Fund, Class I Shares 1 90.05 Government Money Market Fund, Class A Shares 1 99.56 Treasury Money Market Fund, Class I Shares 1 99.60
12. ACCOUNTING PRONOUNCEMENTS In October 2008, the FASB issued Staff Position 157-3, DETERMINING THE FAIR VALUE OF A FINANCIAL ASSET IN A MARKET THAT IS NOT ACTIVE ("FSP 157-3"), which clarifies the application of SFAS 157 in an inactive market and provides an illustrative example to demonstrate how the fair value of a financial asset is determined when the market for that financial asset is not active. The guidance provided by FSP 157-3 did not have an impact on the Fund's approach to valuing financial assets. 13. SUBSEQUENT EVENT The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through August 26, 2009, the date the financial statements were available to be issued. This evaluation resulted in the following subsequent event that necessitated disclosures and/or adjustments: On June 24, 2009, the Adviser approved the liquidation of the Treasury Money Market Fund and closed the Treasury Money Market Fund to new shareholders. The Treasury Money Market Fund liquidated on July 31, 2009. Bishop Street Funds 60 Bishop Street Funds DISCLOSURE OF FUND EXPENSES (UNAUDITED) All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, distribution fees, 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: - - 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." - - 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, 2009 www.bishopstreetfunds.com 61 Bishop Street Funds (UNAUDITED)
Beginning Ending Expenses Account Account Annualized Paid Value Value Expense During 1/1/09 6/30/09 Ratios Period* --------- --------- ---------- -------- STRATEGIC GROWTH FUND -- CLASS I ACTUAL FUND RETURN $1,000.00 $1,160.90 1.11% $5.95 HYPOTHETICAL 5% RETURN 1,000.00 1,019.29 1.11 5.56 LARGE CAP CORE EQUITY FUND -- CLASS I ACTUAL FUND RETURN $1,000.00 $1,074.30 1.05% $5.40 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 $1,019.50 0.76% $3.81 HYPOTHETICAL 5% RETURN 1,000.00 1,021.03 0.76 3.81 HAWAII MUNICIPAL BOND FUND -- CLASS I ACTUAL FUND RETURN $1,000.00 $1,044.10 0.55% $2.79 HYPOTHETICAL 5% RETURN 1,000.00 1,022.07 0.55 2.76 HAWAII MUNICIPAL BOND FUND -- CLASS A ACTUAL FUND RETURN $1,000.00 $1,042.80 0.80% $4.05 HYPOTHETICAL 5% RETURN 1,000.00 1,020.83 0.80 4.01 GOVERNMENT MONEY MARKET FUND -- CLASS I ACTUAL FUND RETURN $1,000.00 $1,000.20 0.43% $2.13 HYPOTHETICAL 5% RETURN 1,000.00 1,022.66 0.43 2.16 GOVERNMENT MONEY MARKET FUND -- CLASS A ACTUAL FUND RETURN $1,000.00 $1,000.00 0.47% $2.33 HYPOTHETICAL 5% RETURN 1,000.00 1,022.46 0.47 2.36 TREASURY MONEY MARKET FUND -- CLASS I ACTUAL FUND RETURN $1,000.00 $1,001.30 0.15% $0.74 HYPOTHETICAL 5% RETURN 1,000.00 1,024.05 0.15 0.75
* Expenses are equal to the Funds' 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 62 Bishop Street Funds (UNAUDITED) APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS BOARD CONSIDERATIONS IN RE-APPROVING THE ADVISORY AND SUB-ADVISORY AGREEMENTS Pursuant to Section 15(c) of the Investment Company Act of 1940 (the "1940 Act"), the Board of Trustees (the "Board") of Bishop Street Funds (the "Trust") must annually review and re-approve the existing Advisory Agreement and Sub-Advisory Agreements (the "Agreements") after their initial two-year terms: (i) by the vote of the Trustees or by a vote of the shareholders of each Fund; and (ii) by the vote of a majority of the Trustees who are not parties to the Agreements or "interested persons" of any party thereto, as defined in the 1940 Act (the "Independent Trustees"), cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board calls and holds a meeting to decide whether to renew the Agreements for additional one-year terms. In preparation for the meeting, the Board requests and reviews a wide variety of information from Bishop Street Capital Management, BNP Paribas Asset Management, Inc., Fischer Francis Tree & Watts, Inc. and Lotsoff Capital Management (each, an "Adviser," and, collectively, the "Advisers"). The Trustees use this information, as well as other information that the Advisers and other service providers of the Funds may submit to the Board, to help them decide whether to renew the Agreements for an additional year. Prior to this year's meeting held on February 17-18, 2009, the Board, including the Independent Trustees advised by their independent legal counsel, reviewed written materials from the Advisers regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Advisers; (ii) the investment performance of the Funds and the Advisers; (iii) the costs of the services to be provided and profits to be realized by the Advisers and their affiliates from their relationship with the Funds; (iv) the extent to which economies of scale would be realized as the Funds grow; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors, as discussed in further detail below. At the meeting, representatives from the Advisers, along with other Fund service providers, presented additional oral and written information to help the Board evaluate the Advisers' fees and other aspects of the Agreements. Among other things, the representatives presented overviews of the Advisers, including each Adviser's investment personnel, assets under management and investment process. The Trustees then discussed the written materials that the Board received before the meeting and the June 30, 2009 www.bishopstreetfunds.com 63 Bishop Street Funds (UNAUDITED) Advisers' oral presentations and any other information that the Board received at the meeting, and deliberated on the renewal of the Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the Advisers and the re-approval of the Agreements, and did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision. NATURE, EXTENT, AND QUALITY OF SERVICES PROVIDED BY THE ADVISERS In considering the nature, extent and quality of the services provided by the Advisers, the Board reviewed the portfolio management services provided by each Adviser to its respective Fund(s), including the quality and continuity of each Adviser's portfolio management personnel. The most recent investment adviser registration form ("Form ADV") for each Adviser was provided to the Board, as was the response of each Adviser to a detailed series of questions which included, among other things, information about the background and experience of the portfolio managers primarily responsible for the day-to-day management of each respective Fund. The Trustees also considered other services to be provided by each Adviser to its respective Fund(s) by the Advisers, such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds' investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities regulations. Based on the factors above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Funds by the Advisers. INVESTMENT PERFORMANCE OF THE FUNDS AND THE ADVISERS The Board was provided with information regarding each Fund's performance since the Agreements were last renewed, as well as information regarding each Fund's performance since its inception. The Board also compared each Fund's performance to its benchmark index and other similar mutual funds over various periods of time. Each Adviser provided information regarding and led a discussion of factors impacting the performance of its respective Fund(s) over the past year, focusing on its investment approach and general economic factors. The Adviser to the Treasury Money Market and Government Money Market Funds discussed certain repurchase agreements held by the Bishop Street Funds 64 (UNAUDITED) Funds and the effect of such holdings on the Funds' performance. The Board noted that the performance of the High Grade Income Fund and Hawaii Municipal Bond Fund was favorable in relationship to each Fund's respective benchmark over various periods of time, and that the Treasury Money Market and the Government Money Market Funds' performance was comparable to that of each Fund's peer groups. With respect to the Large Cap Core Equity Fund and the Strategic Growth Fund, the Board noted that although these Funds underperformed their respective benchmarks over various periods of time, their recent performance was not substantially below that of each Fund's respective benchmark and did not necessitate any significant additional review. Based on this information, the Board concluded that each Fund's performance was reasonable as compared to its relevant benchmark and was satisfied with the investment results that each Adviser had been able to achieve for the respective Fund(s). COSTS OF ADVISORY SERVICES, PROFITABILITY AND ECONOMIES OF SCALE In concluding that the advisory fees payable by each Fund were reasonable, the Trustees reviewed a report of the fees paid to each Adviser and the costs and other expenses incurred by each Adviser in providing advisory services. The Advisers' representatives then discussed the profits realized by the Advisers from their relationship with the Funds. The Trustees considered the information provided and concluded that such profits were not excessive. The Trustees also reviewed reports comparing the expense ratio and advisory fee paid by each Fund to those paid by other comparable mutual funds and concluded that the advisory fees were the result of arm's length negotiations, appeared reasonable in light of the services rendered and, after waivers, were comparable to the average advisory fees paid by similarly managed mutual funds. In addition, the Board considered whether economies of scale were realized during the current contract period, but did not conclude that such economies of scale had yet been achieved with respect to the Funds. Based on the Board's deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (a) concluded that terms of each Agreement are fair and reasonable; (b) concluded that each Adviser's fees are reasonable in light of the services that each Adviser provides to the respective Fund(s); and (c) agreed to renew each Agreement for another year. June 30, 2009 www.bishopstreetfunds.com 65 NOTES Bishop Street Funds 66 NOTES June 30, 2009 www.bishopstreetfunds.com 67 NOTES Bishop Street Funds 68 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, 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) 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) BISHOP STREET FUNDS P.O. BOX 219721 KANSAS CITY, MO 64121-9721 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-004-1500 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\ Philip T. Masterson ---------------------------------------- Philip T. Masterson, President Date: September 3, 2009 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\ Philip T. Masterson ---------------------------------------- Philip T. Masterson, President Date: September 3, 2009 By (Signature and Title)* \s\ Michael Lawson ---------------------------------------- Michael Lawson Controller & CFO Date: September 3, 2009 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 g52785_cert302.txt G52785_CERT302 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Philip T. Masterson, certify that: 1. I have reviewed this report on Form N-CSRS 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: September 3, 2009 \s\ Philip T. Masterson - ------------------------------------ Philip T. Masterson President 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-CSRS 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: September 3, 2009 /s./ Michael Lawson - ------------------------------------ Michael Lawson Controller & CFO EX-99.906CERT 3 g52785_cert906.txt G52785_CERT906 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-CSRS for the period ended June 30, 2009 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-CSRS 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-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: September 3, 2009 \s\ Philip T. Masterson ---------------------------------------- Philip T. Masterson President 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-CSRS for the period ended June 30, 2009 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-CSRS 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-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: September 3, 2009 \s\ Michael Lawson ---------------------------------------- Michael Lawson Controller & CFO -----END PRIVACY-ENHANCED MESSAGE-----