Bishop Street Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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 02110

(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, 2013

Date of reporting period: June 30, 2013

Item 1. Reports to Stockholders.

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities is available without charge, by calling 1-800-262-9565 or by visiting the Commission’s website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, by calling 1-800-262-9565 or by visiting the Funds’ website at http://www.bishopstreetfunds.com or the website of the Securities and Exchange Commission.

BISHOP STREET

TABLE OF CONTENTS

FUNDS

Letter to Shareholders	2
Schedule of Investments
Strategic Growth Fund	5
Dividend Value Fund	8
High Grade Income Fund	12
Hawaii Municipal Bond Fund	20
Statements of Assets and Liabilities	31
Statements of Operations	33
Statements of Changes in Net Assets	35
Financial Highlights	38
Notes to Financial Statements	42
Disclosure of Fund Expenses	54
Approval of Investment Advisory Agreement	56

1

BISHOP STREET

LETTER TO SHAREHOLDERS

FUNDS

Dear Shareholder:

As in years past, the first six months of 2013 proved to be full of surprises. The year began with the U.S. economy teetering on the edge of a fiscal cliff as lawmakers struggled to find a workable solution to our budget deficits. But with a fiscal policy resolution finally in hand and the Federal Reserve willing to provide much needed support, investor confidence returned and the search for growth opportunities continued. The big winner was U.S. stocks, with the S&P 500 Index gaining an impressive 14 percent – its best start in fifteen years! The U.S. economy was the “best of the worst” as the Eurozone continued to struggle and the emerging economies experienced a slowdown. The exception in Asia was the MSCI Japan Index which surged almost 15.4 percent in U.S. dollar terms on the heels of aggressive economic policy measures designed to resolve Japan’s macro-economic problems.

Perhaps the most significant event in the first half was the message from Fed Chairman Bernanke that the economy was finally beginning to show sustained life and the time had come to unwind its aggressive easy monetary programs. The change in policy stance sent shock waves around the globe leading to a sell-off in both stocks and bonds. Bonds in particular, took the news especially hard as investors abandoned fixed income strategies sending the ten-year Treasury yields soaring 100 basis points to 2.6 percent. As a result, the Barclay’s U.S. Aggregate Bond Index declined 2.4 percent – the worst first half showing for bonds in nearly 20 years. Further, with no inflation in sight, gold and commodities suffered as well declining 27 percent and 5.5 percent, respectively.

So what is in store for the balance of the year?

From a technical standpoint, the S&P 500 has generally responded well with a strong performance in the first half. This will depend on how the bond market responds to QE tapering, investor reaction and confidence in Japan’s new economic policies and the success of emerging economies in engineering their respective soft landings. If the U.S. economy continues to improve, the Eurozone rises from recession and emerging economies seize the opportunity to enact much needed reforms, we believe the longer-term uptrends in the equity markets are likely to continue.

Bishop Street Funds

2

Diversification remains the key

As we have discussed in previous messages to our shareholders, we believe in the benefits of a balanced, diversified portfolio in any successful investment program. Whether enjoying the benefits of growth and higher earnings found in our equity funds or stable income and cash flow found in our investment grade fixed income funds, we believe a balanced portfolio will likely result in long-term investment success. In this regard, we hope that the Bishop Street family of funds will continue to play an important role in your investment program.

Thank you for your continued trust and investment in the Bishop Street Funds.

Sincerely,

Michael K. Hirai, CFA, CPA

President and Chief Investment Officer

Bishop Street Capital Management

July 15, 2013

The performance data quoted represents past performance. Past performance does not guarantee future results. Index returns are for illustrative purposes only and do not represent actual Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Investing involves risk including possible loss of principal. Diversification does not protect against market loss.

June 30, 2013 www.bishopstreetfunds.com

3

BISHOP STREET

DEFINITIONS OF COMPARATIVE INDICES

FUNDS

Definitions of Comparative Indices

The S&P 500 Composite Index is a widely recognized index of 500 stocks designed to mimic the overall U.S. equity market’s industry weightings.

Barclay’s U.S. Aggregate Bond Index covers the USD-denominated, investment-grade fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Goverment-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors. The U.S. Aggregate Index is a component of the U.S. Universal Index in its entirety. The index was created in 1986, with index history backfilled to January 1, 1976.

The MSCI Japan Index is a free-float adjusted market capitalization weighted index that is designed to track the equity market performance of Japanese securities listed on Tokyo Stock Exchange, Osaka Stock Exchange, JASDAQ and Nagoya Stock Exchange. The MSCI Japan Total Return Index takes into account both price performance and income from dividend payments. The MSCI Japan Index is constructed based on the MSCI Global Investable Market Indices Methodology, targeting a free-float market capitalization coverage of 85%.

Bishop Street Funds

4

Strategic Growth Fund (unaudited)

Top Ten Equity Holdings^†

		Percentage of Investments
1.	Honeywell International		2.3%
2.	Hertz Global Holdings		2.2%
3.	Michael Kors Holdings		2.2%
4.	Macy’s		2.2%
5.	Union Pacific		2.2%
6.	Cigna		2.2%
7.	AutoZone		2.2%
8.	Herbalife		2.1%
9.	Microsoft		2.1%
10.	Alliance Data Systems		2.1%

† Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments

Shares			Value (000)
	COMMON STOCK — 99.8%
	Consumer Discretionary — 18.6%
	2,600	AutoZone*	$	1,102
	20,900	CBS		1,022
	13,400	Home Depot		1,038
	26,000	Lowe’s		1,063
	23,200	Macy’s		1,114
	18,000	Michael Kors Holdings*		1,116
	13,300	PetSmart		891
	14,700	Scripps Networks Interactive		981
	19,300	TJX		966
				9,293

June 30, 2013 www.bishopstreetfunds.com

5

Strategic Growth Fund (unaudited)

Schedule of Investments

(continued)

Shares			Value (000)
	Consumer Staples — 6.0%
	8,700	Costco Wholesale	$	962
	16,800	CVS		961
	23,800	Herbalife		1,074
				2,997
	Energy — 3.9%
	27,200	Oasis Petroleum*		1,057
	12,400	Schlumberger		889
				1,946
	Financials — 16.2%
	11,700	ACE		1,047
	20,600	Allstate		991
	13,600	American Express		1,016
	3,900	BlackRock		1,002
	20,800	Citigroup		998
	6,500	Goldman Sachs Group		983
	1,850	Mastercard		1,063
	13,800	Prudential Financial		1,008
				8,108
	Health Care — 12.1%
	18,700	AmerisourceBergen		1,044
	10,300	Amgen		1,016
	4,600	Biogen Idec*		990
	7,600	Celgene*		889
	15,200	Cigna		1,102
	33,500	Mylan*		1,039
				6,080
	Industrials — 14.6%
	16,000	BE Aerospace*		1,009
	8,500	Cummins		922
	17,200	Equifax		1,013
	45,400	Hertz Global Holdings*		1,126
	14,600	Honeywell International		1,159
	8,700	Stericycle*		961
	7,200	Union Pacific		1,111
				7,301
	Information Technology — 22.9%
	5,900	Alliance Data Systems*		1,068
	2,150	Apple		852

Bishop Street Funds

6

Strategic Growth Fund (unaudited)

Schedule of Investments

(concluded)

Shares			Value (000)
	Information Technology — (continued)
	28,200	Broadcom	$	952
	40,700	Cisco Systems		989
	16,800	eBay*		869
	31,100	Microsoft		1,074
	29,000	Oracle		891
	14,800	Qualcomm		904
	18,700	Teradata*		939
	5,700	Visa		1,042
	12,900	VMware*		864
	25,500	Xilinx		1,010
				11,454
	Materials — 5.5%
	5,000	CF Industries Holdings		858
	13,900	Eastman Chemical		973
	9,600	Monsanto		948
				2,779
	TOTAL COMMON STOCK (Cost $40,169)			49,958
	SHORT-TERM INVESTMENT (A) — 0.3%
	150,346	Dreyfus Cash Management Fund, Institutional Shares, 0.050% (Cost $150)		150
	TOTAL INVESTMENTS (Cost $40,319) — 100.1%		$	50,108

Percentages are based on Net Assets of $50,073 (000).

* Non-income producing security.

(A) The rate shown is the 7-day effective yield as of June 30, 2013.

Cost figures are shown in thousands.

The accompanying notes are an integral part of the financial statements.

June 30, 2013 www.bishopstreetfunds.com

7

Dividend Value Fund (unaudited)

Top Ten Equity Holdings^†

		Percentage of Investments
1.	Verizon Communications		3.0%
2.	Microsoft		2.8%
3.	Pfizer		2.8%
4.	Philip Morris International		2.8%
5.	International Business Machines		2.7%
6.	Exxon Mobil		2.7%
7.	Johnson & Johnson		2.7%
8.	Merck		2.6%
9.	Sherwin-Williams		2.5%
10.	AT&T		2.5%

† Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments

Shares			Value (000)
	COMMON STOCK — 97.3%
	Consumer Discretionary — 8.8%
	17,760	Home Depot	$	1,376
	6,055	Macy’s		291
	8,535	Mattel		386
	10,190	McDonald’s		1,009
	5,510	Nordstrom		330
	14,630	Time Warner		846
	8,650	TJX		433
	1,585	VF		306
				4,977

Bishop Street Funds

8

Dividend Value Fund (unaudited)

Schedule of Investments

(continued)

Shares			Value (000)
	Consumer Staples — 9.1%
	19,550	Altria Group	$	684
	13,040	Coca-Cola Co.		523
	8,500	General Mills		413
	6,725	Kimberly-Clark		653
	18,000	Philip Morris International		1,559
	9,890	Procter & Gamble		762
	7,120	Wal-Mart Stores		530
				5,124
	Energy — 9.6%
	10,270	Chevron		1,215
	5,870	ConocoPhillips		355
	16,910	Exxon Mobil		1,528
	15,690	Kinder Morgan		599
	6,460	Occidental Petroleum		577
	5,565	Phillips 66		328
	13,000	Royal Dutch Shell PLC ADR		829
				5,431
	Financials — 17.5%
	4,985	ACE		446
	11,065	American Express		827
	2,114	AvalonBay Communities‡		285
	2,555	BlackRock		656
	4,885	Chubb		414
	6,155	CME Group		467
	6,300	Fifth Third Bancorp		114
	23,675	JPMorgan Chase		1,250
	15,510	Marsh & McLennan		619
	6,365	MetLife		291
	8,290	Northern Trust		480
	19,100	People’s United Financial		285
	6,960	PNC Financial Services Group		507
	1,985	Public Storage‡		304
	1,625	Simon Property Group‡		257
	4,415	T Rowe Price Group		323
	13,705	Unum Group		403
	21,660	US Bancorp		783
	27,935	Wells Fargo		1,153
				9,864

June 30, 2013 www.bishopstreetfunds.com

9

Dividend Value Fund (unaudited)

Schedule of Investments

(continued)

Shares			Value (000)
	Health Care — 14.9%
	17,435	Abbott Laboratories	$	608
	23,390	AbbVie		967
	10,580	Amgen		1,044
	26,900	Bristol-Myers Squibb		1,202
	17,560	Johnson & Johnson		1,508
	31,615	Merck		1,468
	56,610	Pfizer		1,586
				8,383
	Industrials — 9.5%
	7,975	Boeing		817
	3,100	Deere		252
	6,725	Dover		522
	6,315	Emerson Electric		344
	10,760	Honeywell International		854
	3,955	Illinois Tool Works		274
	4,750	Parker Hannifin		453
	8,835	Raytheon		584
	6,400	United Parcel Service		553
	3,150	United Technologies		293
	10,190	Waste Management		411
				5,357
	Information Technology — 12.4%
	11,690	Accenture PLC		841
	8,535	Automatic Data Processing		588
	25,055	Cisco Systems		609
	36,890	Intel		893
	8,070	International Business Machines		1,542
	8,930	Kla-Tencor		498
	46,355	Microsoft		1,601
	11,925	Texas Instruments		416
				6,988
	Materials — 5.1%
	11,325	EI du Pont de Nemours		595
	4,700	LyondellBasell Industries NV		311
	8,280	RPM International		265
	7,900	Sherwin-Williams		1,395
	8,070	Sonoco Products		279
				2,845

Bishop Street Funds

10

Dividend Value Fund (unaudited)

Schedule of Investments

(concluded)

Shares			Value (000)
	Telecommunication Services — 5.5%
	39,260	AT&T	$	1,390
	33,815	Verizon Communications		1,702
				3,092
	Utilities — 4.9%
	7,900	American Electric Power		354
	10,650	CMS Energy		289
	4,725	Dominion Resources		269
	4,065	Duke Energy		274
	3,410	NextEra Energy		278
	6,765	Northeast Utilities		284
	5,930	Sempra Energy		485
	8,390	Westar Energy		268
	6,860	Wisconsin Energy		281
				2,782
	TOTAL COMMON STOCK (Cost $39,403)			54,843
	EXCHANGE TRADED FUND — 1.0%
	3,590	SPDR S&P 500 ETF Trust, Ser 1 (Cost $559)		574
	PREFERRED STOCK — 0.4%
	1,575	Fifth Third Bancorp, 8.50% (Cost $234)		246
	SHORT-TERM INVESTMENT (A) — 1.3%
	744,394	Dreyfus Cash Management Fund, Institutional Shares, 0.050% (Cost $744)		744
	TOTAL INVESTMENTS (Cost $40,940) — 100.0%		$	56,407

Percentages are based on Net Assets of $56,391 (000).

‡ Real Estate Investment Trust

(A) The rate shown is the 7-day effective yield as of June 30, 2013.

ADR — American Depositary Receipt

ETF — Exchange Traded Fund

PLC — Public Limited Company

Ser — Series

SPDR — S&P Depositary Receipt

Cost figures are shown in thousands.

The accompanying notes are an integral part of the financial statements.

June 30, 2013 www.bishopstreetfunds.com

11

High Grade Income Fund (unaudited)

Top Ten Holdings^†

		Coupon Rate		Maturity Date		Percentage of Investments
1.	U.S. Treasury Note		0.125%		08/31/13		2.7%
2.	U.S. Treasury Note		0.250%		09/15/14		2.1%
3.	California State, Build America Bonds		7.550%		04/01/39		1.9%
4.	International Business Machines		8.375%		11/01/19		1.7%
5.	Rio Tinto Finance USA		9.000%		05/01/19		1.6%
6.	Aflac		8.500%		05/15/19		1.6%
7.	St. Louis School District, Qualified School Construction Boards		6.100%		04/01/25		1.6%
8.	FHLB		5.125%		03/10/17		1.6%
9.	MetLife		6.817%		08/15/18		1.5%
10.	FHLB		3.750%		12/14/18		1.5%

† Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments

Face Amount (000)			Value (000)
	CORPORATE OBLIGATIONS — 58.3%
	Banks — 5.4%
		Bank of Oklahoma
$	500	0.226%, 05/15/17 (A)	$	490
		Barclays Bank PLC
	675	6.750%, 05/22/19		804
		Citigroup
	383	6.500%, 08/19/13		386
	520	6.000%, 08/15/17		586

Bishop Street Funds

12

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Banks — (continued)
		Goldman Sachs Group MTN
$	500	7.500%, 02/15/19	$	594
	550	0.676%, 07/22/15 (A)		544
		JPMorgan Chase
	450	3.150%, 07/05/16		467
		US Bancorp MTN
	500	3.000%, 03/15/22		485
				4,356
	Consumer Discretionary — 3.3%
		Anheuser-Busch InBev Finance
	425	1.250%, 01/17/18		412
		AutoZone
	250	4.000%, 11/15/20		255
		Home Depot
	700	5.875%, 12/16/36		823
		Johnson Controls
	500	4.250%, 03/01/21		523
		Macy’s Retail Holdings
	300	2.875%, 02/15/23		277
		McDonald’s MTN
	350	1.875%, 05/29/19		345
				2,635
	Consumer Staples — 5.3%
		Bunge Finance
	500	8.500%, 06/15/19		617
		Campbell Soup
	500	4.250%, 04/15/21		523
		Colgate-Palmolive MTN
	900	1.950%, 02/01/23		813
		ConAgra Foods
	500	1.900%, 01/25/18		491
		Genentech
	1,000	4.750%, 07/15/15		1,079
		Hershey
	250	2.625%, 05/01/23		237
		Teva Pharmaceutical Finance BV
	500	2.400%, 11/10/16		515
				4,275

June 30, 2013 www.bishopstreetfunds.com

13

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Energy — 5.2%
		Cameron International
$	375	4.500%, 06/01/21	$	397
		Devon Energy
	400	6.300%, 01/15/19		464
		Halliburton
	1,000	6.150%, 09/15/19		1,205
		Kinder Morgan Energy Partners
	500	9.000%, 02/01/19		639
		Murphy Oil
	625	2.500%, 12/01/17		617
		Occidental Petroleum
	375	2.700%, 02/15/23		346
		Valero Energy
	425	6.625%, 06/15/37		488
				4,156
	Financials — 16.0%
		Aflac
	1,000	8.500%, 05/15/19		1,278
		American Express Credit MTN
	545	2.375%, 03/24/17		557
		Aon
	500	3.125%, 05/27/16		522
		Bank of America
	1,050	3.700%, 09/01/15		1,095
		Bank of New York Mellon MTN
	500	4.150%, 02/01/21		532
		Capital One Financial
	500	7.375%, 05/23/14		529
		Daimler Finance North America LLC
	600	6.500%, 11/15/13		613
		Ford Motor Credit LLC
	500	2.500%, 01/15/16		504
		General Electric Capital MTN
	625	6.150%, 08/07/37		707
	600	1.273%, 03/15/23 (A)		595
		Marsh & McLennan
	465	9.250%, 04/15/19		608
		MetLife
	1,000	6.817%, 08/15/18		1,211
		Morgan Stanley MTN
	500	5.750%, 10/18/16		552

Bishop Street Funds

14

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Financials — (continued)
		Prudential Financial MTN
$	320	7.375%, 06/15/19	$	391
		Royal Bank of Canada MTN
	875	0.850%, 03/08/16		870
		Svensk Exportkredit AB
	1,000	2.125%, 07/13/16		1,032
		Toyota Motor Credit MTN
	400	2.800%, 01/11/16		417
	500	1.375%, 01/10/18		487
		Ventas Realty
	415	2.700%, 04/01/20‡		392
				12,892
	Health Care — 6.6%
		Amgen
	350	5.700%, 02/01/19		402
		AstraZeneca PLC
	1,000	5.900%, 09/15/17		1,162
		Becton Dickinson and
	500	3.125%, 11/08/21		493
		Celgene
	500	3.250%, 08/15/22		474
		Gilead Sciences
	875	3.050%, 12/01/16		925
		Merck Sharp & Dohme
	1,000	5.000%, 06/30/19		1,142
		UnitedHealth Group
	700	2.875%, 03/15/22		667
				5,265
	Industrials — 3.0%
		Caterpillar
	500	7.900%, 12/15/18		645
		Emerson Electric
	500	2.625%, 02/15/23		473
		Precision Castparts
	900	1.250%, 01/15/18		875
		Raytheon
	475	2.500%, 12/15/22		437
				2,430

June 30, 2013 www.bishopstreetfunds.com

15

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Information Technology — 6.3%
		Affiliated Computer Services
$	500	5.200%, 06/01/15	$	530
		DIRECTV Holdings LLC
	1,000	3.500%, 03/01/16		1,051
		EMC
	250	1.875%, 06/01/18		247
		Intel
	425	1.350%, 12/15/17		416
		International Business Machines
	1,000	8.375%, 11/01/19		1,340
		News America
��	410	6.650%, 11/15/37		472
		Symantec
	500	2.750%, 09/15/15		515
		Texas Instruments
	500	1.000%, 05/01/18		478
				5,049
	Materials — 3.5%
		BHP Billiton Finance
	950	5.250%, 12/15/15		1,046
		Praxair
	500	2.200%, 08/15/22		458
		Rio Tinto Finance USA
	1,000	9.000%, 05/01/19		1,299
				2,803
	Telecommunication Services — 1.5%
		Alltel
	250	7.000%, 03/15/16		287
		AT&T
	305	5.500%, 02/01/18		349
		Cellco Partnership
	450	8.500%, 11/15/18		584
				1,220
	Transportation — 1.4%
		Burlington Northern Santa Fe LLC
	625	4.450%, 03/15/43		582
		Continental Airlines
	498	9.000%, 07/08/16		572
				1,154

Bishop Street Funds

16

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Utilities — 0.8%
		CenterPoint Energy
$	350	5.950%, 02/01/17	$	398
		Duke Energy
	250	1.625%, 08/15/17		245
				643
	TOTAL CORPORATE OBLIGATIONS (Cost $45,578)			46,878
	U.S. TREASURY OBLIGATIONS — 21.1%
		U.S. Treasury Bond
	700	7.250%, 05/15/16		832
	800	6.000%, 02/15/26		1,074
	500	5.375%, 02/15/31		651
	500	4.750%, 02/15/37		617
	1,000	4.500%, 08/15/39		1,196
	335	3.750%, 08/15/41		354
		U.S. Treasury Note
	275	3.750%, 11/15/18		307
	350	3.625%, 02/15/21		389
	625	3.125%, 10/31/16		672
	500	3.125%, 01/31/17		539
	600	2.875%, 03/31/18		643
	405	2.625%, 04/30/16		428
	650	2.375%, 10/31/14		669
	1,000	2.375%, 02/28/15		1,035
	500	2.375%, 07/31/17		526
	1,000	2.125%, 05/31/15		1,034
	500	2.125%, 08/15/21		498
	500	2.000%, 11/15/21		491
	325	1.375%, 02/28/19		321
	800	1.000%, 01/15/14		804
	1,700	0.250%, 09/15/14		1,701
	2,145	0.125%, 08/31/13		2,145
	TOTAL U.S. TREASURY OBLIGATIONS (Cost $16,493)			16,926
	MUNICIPAL BONDS — 9.2%
		California State, Build America Bonds, GO
	1,130	7.550%, 04/01/39		1,513
		City of Minneapolis Minnesota, GO
	250	4.900%, 03/01/25		279
	300	4.800%, 03/01/24		336

June 30, 2013 www.bishopstreetfunds.com

17

High Grade Income Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	MUNICIPAL BONDS (continued)
		City of New York New York, GO
$	300	5.817%, 10/01/31	$	335
		Connecticut State, GO
	800	5.295%, 10/01/29		850
		County, of Kauai Hawaii, GO
	500	5.663%, 08/01/29		559
		Hawaii State, GO
	750	5.480%, 02/01/28		871
	100	5.330%, 02/01/26		116
		Houston Independent School District, GO
	250	6.125%, 02/15/28		286
		Michigan State, Ser A, GO
	1,000	3.850%, 05/15/26		978
		St. Louis School District, Qualified School Construction Boards, GO
	1,070	6.100%, 04/01/25		1,259
	TOTAL MUNICIPAL BONDS (Cost $6,960)			7,382
	U.S. GOVERNMENT AGENCY OBLIGATIONS — 7.0%
		FHLB
	1,100	5.125%, 03/10/17		1,254
	1,000	4.125%, 03/13/20		1,107
	1,100	3.750%, 12/14/18		1,207
		FHLMC
	875	8.250%, 06/01/16		1,053
		FNMA
	1,000	2.000%, 02/07/14		1,002
	TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $5,414)			5,623
	NON-AGENCY MORTGAGE-BACKED OBLIGATION (A) — 1.2%
		GSR Mortgage Loan Trust, Ser 2004-4, Cl 3A2
	968	2.050%, 04/25/32		939
	TOTAL NON-AGENCY MORTGAGE-BACKED OBLIGATION (Cost $867)			939
	U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS — 1.0%
		FNMA, Ser 2003-33, Cl AB
	510	3.750%, 03/25/33		527
		FNMA, Ser 889958
	140	5.000%, 10/01/23		150

Bishop Street Funds

18

High Grade Income Fund (unaudited)

Schedule of Investments

(concluded)

Face Amount (000)/Shares			Value (000)
	U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (continued)
		FNMA REMIC, Ser 2007-B1, Cl BE
$	56	5.450%, 12/25/20	$	56
		GNMA, Ser 2003-7, Cl PE
	73	5.500%, 11/16/31		73
	TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $782)			806
	SHORT-TERM INVESTMENT (B) — 1.2%
	997,978	Dreyfus Cash Management Fund, Institutional Shares, 0.050% (Cost $998)		998
	TOTAL INVESTMENTS (Cost $77,092) — 99.0%		$	79,552

Percentages are based on Net Assets of $80,338 (000).

‡ Real Estate Investment Trust

(A) Floating Rate Security — The rate reflected on the Schedule of Investments is the rate in effect on June 30, 2013. The maturity date shown is the final maturity date.

(B) The rate shown is the 7-day effective yield as of June 30, 2013.

Cl — Class

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Corporation

GNMA — Government National Mortgage Corporation

GO — General Obligation

LLC — Limited Liability Corporation

MTN — Medium Term Note

PLC — Public Limited Company

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, 2013 www.bishopstreetfunds.com

19

Hawaii Municipal Bond Fund (unaudited)

Top Ten Holdings^†

		Coupon Rate		Maturity Date		Percentage of Investments
1.	Hawaii State, RB		5.250%		07/01/27		1.8%
2.	Hawaii State, GO		5.000%		12/01/31		1.8%
3.	Hawaii State, RB		5.000%		07/01/16		1.6%
4.	Honolulu Hawaii City & County, GO		4.000%		11/01/19		1.5%
5.	Hawaii State, Housing Finance & Development, RB		6.500%		07/01/33		1.4%
6.	Hawaii State, Department of Budget & Finance, RB		4.600%		05/01/26		1.4%
7.	Honolulu Hawaii City & County, Board of Water Supply, RB		5.000%		07/01/26		1.4%
8.	University of Hawaii, RB		4.500%		07/15/23		1.4%
9.	Honolulu Hawaii City & County, GO		5.000%		07/01/14		1.4%
10.	Hawaii State, Department of Hawaiian Home Lands, COP		5.000%		11/01/31		1.4%

† Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments

Face Amount (000)			Value (000)
	MUNICIPAL BONDS — 98.4%
	Alabama — 0.2%
		Huntsville, Electric System Revenue, RB
$	225	5.250%, 12/01/29	$	255

Bishop Street Funds

20

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Alaska — 1.2%
		Alaska Municipal Bond Bank Authority, Ser 3, RB, Bond Bank Moral Obligation Insured
$	1,000	5.000%, 09/01/22	$	1,159
		Anchorage Alaska, Water Authority, RB, NPFGC Insured
	200	5.000%, 05/01/37		206
		Little Rock, Sewer Revenue, RB
	500	5.000%, 08/01/20		587
				1,952
	Arizona — 0.7%
		Glendale Arizona, Water and Sewer Authority, RB
	1,000	5.000%, 07/01/23		1,142
	California — 3.1%
		California State, GO
	200	5.000%, 02/01/21		234
	1,300	5.000%, 02/01/22		1,515
	1,000	5.000%, 04/01/38		1,023
		California State, GO, AGM Insured
	800	4.500%, 12/01/32		829
		California State, Health Facilities Financing Authority, Stanford Hospital, Ser B, RB
	1,000	5.000%, 11/15/25		1,105
				4,706
	Colorado — 0.4%
		Denver City & County, School District No. 1, GO
	500	5.000%, 12/01/24		577
	Georgia — 0.7%
		Main Street, Natural Gas, Ser B, RB
	1,000	5.000%, 03/15/18		1,081
	Hawaii — 79.7%
		Hawaii Airports System Revenue State, Ser A, RB
	300	5.250%, 07/01/21		349
		Hawaii County, Ser A, GO
	500	5.000%, 09/01/20		590
	1,000	5.000%, 07/15/22		1,120
	250	5.000%, 09/01/22		296
	500	4.000%, 03/01/22		537
		Hawaii County, Ser A, GO, AGM Insured
	125	5.000%, 07/15/13, Pre-Refunded @ 100 (A)		125

June 30, 2013 www.bishopstreetfunds.com

21

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii County, Ser A, GO, AMBAC Insured
$	1,000	5.000%, 07/15/15	$	1,089
		Hawaii County, Ser A, GO, NPFGC Insured
	1,055	5.250%, 07/15/14, Pre-Refunded @ 100 (A)		1,110
	1,000	5.000%, 07/15/14, Pre-Refunded @ 100 (A)		1,049
		Hawaii County, Ser C, GO
	1,275	4.000%, 09/01/24		1,370
		Hawaii Harbor System Revenue State, Ser A, RB
	100	5.000%, 07/01/25		108
		Hawaii Housing Finance & Development, Ser A, RB
	1,000	5.000%, 05/01/34		1,040
	1,000	0.700%, 12/01/15		998
		Hawaii Pacific Health, Ser A, RB
	1,000	4.625%, 07/01/21		1,061
		Hawaii State, Airport System Authority, RB, AGM Insured
	1,000	5.250%, 07/01/27		1,116
		Hawaii State, Airport System Authority, Ser A, RB
	2,500	5.250%, 07/01/27		2,774
	900	5.250%, 07/01/30		982
	1,250	5.000%, 07/01/22		1,426
		Hawaii State, Airport System Authority, RB, AMT
	1,500	4.125%, 07/01/24		1,547
	1,000	3.000%, 07/01/17		1,047
		Hawaii State, Department of Budget & Finance, Chaminade University, RB, Radian Insured
	1,000	4.750%, 01/01/36		984
		Hawaii State, Department of Budget & Finance, Electric Company Project, Ser A, RB, AMT, FGIC Insured
	750	4.800%, 01/01/25		757
	1,160	4.650%, 03/01/37		1,152
		Hawaii State, Department of Budget & Finance, Electric Company Project, Ser A, RB, AMT, NPFGC Insured
	1,250	5.650%, 10/01/27		1,254
		Hawaii State, Department of Budget & Finance, Mid Pacific Institute, RB, Radian Insured
	1,000	5.000%, 01/01/26		1,003
		Hawaii State, Department of Budget & Finance, RB
	300	3.600%, 11/15/20		295
	300	3.350%, 11/15/19		296
		Hawaii State, Department of Budget & Finance, Ser B, RB, AMT, FGIC Insured
	2,165	4.600%, 05/01/26		2,150

Bishop Street Funds

22

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii State, Department of Hawaiian Home Lands, Kapolei Office Facilities, Ser A, COP, AGM Insured
$	2,000	5.000%, 11/01/31	$	2,071
		Hawaii State, Harbor System Authority, Ser A, RB
	1,125	4.250%, 07/01/21		1,221
		Hawaii State, Harbor System Authority, Ser A, RB, AMT, AGM Insured
	370	5.750%, 07/01/29		371
		Hawaii State, Harbor System Authority, Ser B, RB, AMT, AGM Insured
	500	5.000%, 01/01/23		507
		Hawaii State, Harbor System Authority, Ser B, RB, AMT, AMBAC Insured
	200	5.500%, 07/01/19		200
		Hawaii State, Highway Authority, RB
	500	5.750%, 01/01/28		556
	605	5.500%, 07/01/18		716
	1,000	5.500%, 01/01/25		1,116
		Hawaii State, Highway Authority, RB, BHAC Insured
	550	4.750%, 01/01/22		600
		Hawaii State, Highway Authority, Ser A, RB
	700	5.000%, 01/01/31		761
		Hawaii State, Highway Authority, Ser A, RB, AGM Insured
	500	5.000%, 07/01/19		535
	1,000	5.000%, 07/01/21		1,064
	1,565	5.000%, 07/01/22		1,662
		Hawaii State, Highway Authority, Ser B, RB, AGM Insured
	1,250	5.250%, 07/01/18		1,464
	1,600	5.250%, 07/01/19		1,902
	2,300	5.000%, 07/01/16		2,480
		Hawaii State, Housing Finance & Development, Kuhio Park Terrace Multi-Family Housing, Ser A, RB, FHLMC Insured
	200	3.900%, 04/01/22		208
	115	3.750%, 04/01/21		120
	180	3.500%, 04/01/20		186
	115	3.000%, 04/01/18		118
		Hawaii State, Housing Finance & Development, Rental Housing System, Ser B, RB, AGM Insured
	2,000	6.500%, 07/01/33		2,161
		Hawaii State, Housing Finance & Development, Single-Family Housing, Ser B, RB, GNMA/FNMA Insured
	495	3.450%, 01/01/22		501
		Hawaii State, Ser CM, GO, AGM Insures FGIC Insured
	1,000	6.500%, 12/01/14		1,088

June 30, 2013 www.bishopstreetfunds.com

23

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii State, Ser DB, GO, NPFGC Insured
$	230	5.250%, 09/01/13 , Pre-Refunded @ 100 (A)	$	232
		Hawaii State, Ser DD, GO, NPFGC Insured
	1,000	5.000%, 05/01/16		1,035
		Hawaii State, Ser DF, GO, AMBAC Insured
	90	5.000%, 07/01/15, Pre-Refunded @ 100 (A)		98
	470	5.000%, 07/01/21		502
		Hawaii State, Ser DG, GO, AMBAC Insured
	1,000	5.000%, 07/01/16		1,083
		Hawaii State, Ser DI, GO, AGM Insured
	1,935	5.000%, 03/01/16, Pre-Refunded @ 100 (A)		2,148
	375	5.000%, 03/01/25		405
		Hawaii State, Ser DK, GO
	210	5.000%, 05/01/18		243
	475	5.000%, 05/01/25		534
		Hawaii State, Ser DN, GO
	200	5.250%, 08/01/25		229
		Hawaii State, Ser DO, GO
	850	5.000%, 08/01/17		975
		Hawaii State, Ser DQ, GO
	100	5.000%, 06/01/21		117
		Hawaii State, Ser DR, GO
	1,095	5.000%, 06/01/17		1,250
	490	4.250%, 06/01/19		555
		Hawaii State, Ser DT, GO
	270	5.000%, 11/01/19		319
	175	4.500%, 11/01/19		202
		Hawaii State, Ser DY, GO
	800	5.000%, 02/01/19		935
	1,000	5.000%, 02/01/20		1,181
		Hawaii State, Ser DZ, GO
	1,015	5.000%, 12/01/17		1,174
	390	5.000%, 12/01/22		455
	960	5.000%, 12/01/23		1,110
	190	5.000%, 12/01/24		218
	120	5.000%, 12/01/26		136
	250	5.000%, 12/01/28		279
	1,300	5.000%, 12/01/29		1,442
	2,500	5.000%, 12/01/31		2,744
		Hawaii State, Ser EA, GO
	935	5.000%, 12/01/21		1,115
	1,000	5.000%, 12/01/22		1,166

Bishop Street Funds

24

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii State, Ser EE, GO
$	1,000	4.000%, 11/01/24	$	1,068
		Hawaii State, Ser EF, GO
	300	5.000%, 11/01/23		350
		Honolulu Hawaii City & County, Ad Valorem Property Tax Project, Ser B, GO, NPFGC Insured
	2,000	5.000%, 07/01/14, Pre-Refunded @ 100 (A)		2,095
		Honolulu Hawaii City & County, Board of Water Supply, Ser A, RB
	1,050	5.000%, 07/01/19		1,234
	670	3.000%, 07/01/17		714
		Honolulu Hawaii City & County, Board of Water Supply, Ser A, RB, FGIC Insured
	1,000	4.750%, 07/01/14, Pre-Refunded @ 100 (A)		1,045
		Honolulu Hawaii City & County, Board of Water Supply, Ser A, RB, NPFGC Insured
	2,000	5.000%, 07/01/26		2,148
		Honolulu Hawaii City & County, Board of Water Supply, Ser B, RB, AMT, NPFGC Insured
	1,000	5.250%, 07/01/20		1,080
	1,000	5.250%, 07/01/21		1,074
	325	5.000%, 07/01/15		352
		Honolulu Hawaii City & County, Ser A, GO
	100	5.250%, 08/01/31		112
	1,100	5.250%, 04/01/32		1,214
	600	5.000%, 11/01/22		713
	1,000	5.000%, 04/01/33		1,075
	1,000	4.250%, 08/01/32		1,023
	2,000	4.000%, 11/01/19		2,243
	500	4.000%, 11/01/37		490
		Honolulu Hawaii City & County, Ser A, GO, AGM Insured
	1,000	5.000%, 07/01/22		1,110
		Honolulu Hawaii City & County, Ser B, GO
	300	5.000%, 12/01/16		340
	250	5.000%, 12/01/18		293
	395	5.000%, 08/01/21		470
	800	4.000%, 11/01/27		831
		Honolulu Hawaii City & County, Ser B, GO, AGM Insured
	290	5.250%, 07/01/15		317
	1,015	5.250%, 07/01/16		1,141
	345	5.250%, 07/01/18		405
		Honolulu Hawaii City & County, Ser C, GO
	200	4.750%, 09/01/18		230

June 30, 2013 www.bishopstreetfunds.com

25

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Honolulu Hawaii City & County, Ser D, GO
$	1,000	5.250%, 09/01/22	$	1,149
		Honolulu Hawaii City & County, Ser D, GO, NPFGC Insured
	2,000	5.000%, 07/01/15, Pre-Refunded @ 100 (A)		2,176
		Honolulu Hawaii City & County, Ser F, GO, NPFGC Re-insures FGIC Insured
	1,000	5.000%, 07/01/15, Pre-Refunded @ 100 (A)		1,088
		Honolulu Hawaii City & County, Wastewater System Authority,
		Ser A, RB
	500	5.000%, 07/01/20		577
	1,000	5.000%, 07/01/25		1,131
	100	5.000%, 07/01/31		109
	1,000	5.000%, 07/01/38		1,064
	1,000	4.000%, 07/01/31		1,003
		Honolulu Hawaii City & County, Wastewater System Authority, Ser B, RB
	1,000	4.000%, 07/01/28		1,020
		Honolulu Hawaii City & County, Wastewater System Authority, Ser Junior A-1, RB, NPFGC Insured
	815	5.000%, 07/01/22		881
		Honolulu Hawaii City & County, Wastewater System Authority, Ser Senior A, RB, NPFGC Insured
	1,000	5.000%, 07/01/31		1,064
		Honolulu Hawaii City & County, Wastewater System Authority, Waipahu Towers Project, Ser A, RB, AMT, GNMA Collateral Insured
	180	6.900%, 06/20/35		180
		Kauai County, Ser A, GO
	250	5.000%, 08/01/21		296
	250	4.000%, 08/01/24		269
	250	3.250%, 08/01/23		254
		Kauai County, Ser A, GO, NPFGC Re-insures FGIC Insured
	3,195	5.000%, 08/01/15, Pre-Refunded @ 100 (A)		3,489
	415	5.000%, 08/01/21		443
	160	4.250%, 08/01/14		167
		Maui County, GO
	225	5.000%, 06/01/20		266
		Maui County, GO, NPFGC Insured
	910	5.000%, 03/01/15, Pre-Refunded @ 100 (A)		978
	85	5.000%, 03/01/17		90
	205	5.000%, 03/01/24		216
		Maui County, Ser A, GO
	1,000	5.000%, 07/01/19		1,125

Bishop Street Funds

26

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Hawaii — (continued)
		Maui County, Ser A, GO, AGM Insured
$	1,000	3.500%, 07/01/16	$	1,071
		Maui County, Ser A, GO, NPFGC Insured
	1,000	4.750%, 07/01/25		1,068
		Maui County, Ser B, GO
	50	4.000%, 06/01/14		52
	375	4.000%, 06/01/16		404
	500	4.000%, 06/01/21		541
		Maui County, Ser B, GO, NPFGC Insured
	500	5.000%, 07/01/16		554
	500	5.000%, 09/01/17		522
		Maui County, Ser B, GO, NPFGC Re-insures FGIC Insured
	100	5.250%, 03/01/14		103
		University of Hawaii, College Improvements Project, Ser A, RB, AGC Insured
	1,400	5.000%, 10/01/23		1,530
		University of Hawaii, College Improvements Project, Ser A, RB, NPFGC Insured
	200	5.000%, 07/15/19		220
	150	5.000%, 07/15/22		163
		University of Hawaii, Ser A, RB
	100	6.000%, 10/01/38		113
		University of Hawaii, Ser A, RB, NPFGC Insured
	975	5.000%, 07/15/21		1,064
	2,000	4.500%, 07/15/23		2,139
		University of Hawaii, Ser A-2, RB
	1,000	4.000%, 10/01/18		1,104
				123,965
	Kansas — 0.4%
		Sedgwick County, Unified School District No. 260 Derby, GO
	500	5.000%, 10/01/29		549
	Maine — 0.5%
		Maine Health & Higher Educational Facilities Authority, Ser A, RB
	750	5.250%, 07/01/31		790
	Massachusetts — 1.4%
		Commonwealth of Massachusetts, Ser B, GO, AGM Insured
	1,300	5.250%, 08/01/28		1,515
		Massachusetts Bay Transportation Authority, Ser A, RB
	600	5.250%, 07/01/29		693
				2,208

June 30, 2013 www.bishopstreetfunds.com

27

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Minnesota — 0.3%
		Minnesota Housing Finance Agency, RB, GNMA/FNMA Insured
$	465	4.875%, 07/01/26	$	491
	Nebraska — 0.1%
		Omaha Nebraska, GO
	100	5.250%, 10/15/19		117
	Nevada — 0.6%
		Nevada State, GO
	500	5.000%, 03/01/21		585
		Nevada State, Municipal Bond Bank Projects, Ser F, GO, AGM Insured
	250	5.000%, 12/01/24		266
				851
	New Mexico — 0.1%
		New Mexico Finance Authority, Ser Senior Lien, RB
	150	5.000%, 06/01/26		165
	New York — 2.2%
		Metropolitan Transportation Authority, Ser A, RB
	1,000	4.000%, 11/15/20		1,076
		New York, New York, Ser F, GO
	500	3.000%, 08/01/16		529
		New York, New York, Ser H, GO
	500	5.000%, 08/01/20		587
	500	4.000%, 08/01/18		557
		New York, New York, Ser H-1, GO
	600	5.000%, 03/01/18		693
				3,442
	Ohio — 0.4%
		Akron Ohio, GO
	500	5.000%, 12/01/21		555
	Oklahoma — 1.1%
		Oklahoma City Water Utilities Trust, RB
	125	5.000%, 07/01/40		135
		Oklahoma Water Resources Board, RB
	500	4.000%, 10/01/40		482
	1,000	3.000%, 10/01/18		1,055
				1,672

Bishop Street Funds

28

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(continued)

Face Amount (000)			Value (000)
	Oregon — 0.5%
		Oregon State, Facilities Authority, RB
$	225	5.000%, 10/01/19	$	262
		Oregon State, Ser E, GO
	375	4.000%, 05/01/26		396
				658
	Puerto Rico — 2.0%
		Commonwealth of Puerto Rico, GO, NPFGC Insured
	1,500	6.000%, 07/01/15		1,567
		Puerto Rico Electric Power Authority, Ser ZZ, RB
	500	5.000%, 07/01/24		474
		Puerto Rico Highway & Transportation Authority, Ser N, RB, AGM Insured
	1,000	5.500%, 07/01/26		1,035
				3,076
	South Carolina — 0.4%
		Sumter South Carolina, Waterworks & Sewer Improvement Systems, RB, XLCA Insured
	500	5.000%, 12/01/21		557
	Texas — 0.9%
		North East Independent School District, GO,
	275	5.250%, 02/01/28		324
		Port of Houston Authority, Ser D-1, GO
	1,000	5.000%, 10/01/35		1,095
				1,419
	Utah — 1.0%
		Mountain Regional Water Special Service District, RB, AGM Insured
	1,000	4.000%, 12/15/26		1,027
	500	4.000%, 12/15/27		509
				1,536
	Washington — 0.5%
		Port of Seattle Washington, Ser A, RB
	750	5.000%, 08/01/26		832
	TOTAL MUNICIPAL BONDS (Cost $150,579)			152,596

June 30, 2013 www.bishopstreetfunds.com

29

Hawaii Municipal Bond Fund (unaudited)

Schedule of Investments

(concluded)

Shares			Value (000)
	SHORT-TERM INVESTMENT (B) — 0.3%
	529,268	Dreyfus Tax-Exempt Cash Management Fund, Institutional Shares, 0.000% (Cost $529)	$	529
	TOTAL INVESTMENTS (Cost $151,108) — 98.7%		$	153,125

Percentages are based on Net Assets of $155,131 (000).

(A) Pre-Refunded Security – The maturity date shown is the pre-refunded date.

(B) The rate reported is the 7-day effective yield as of June 30, 2013.

AGC — American Guarantee Corporation

AGM — Assured Guaranty Municipal Corp.

AMBAC — American Municipal Bond Assurance Company

AMT — Alternative Minimum Tax

BHAC — Berkshire Hathaway Assurance Corporation

COP — Certificate of Participation

FGIC — Financial Guarantee Insurance Corporation

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Corporation

GNMA — Government National Mortgage Corporation

GO — General Obligation

NPFGC — National Public Finance Guarantee Corporation

RB — Revenue Bond

Ser — Series

XLCA — XL Capital

Cost figures are shown in thousands.

The accompanying notes are an integral part of the financial statements.

Bishop Street Funds

30

Bishop Street Funds (unaudited)

Statements of Assets and Liabilities (000)

June 30, 2013

	Strategic Growth Fund			Dividend Value Fund				High Grade Income Fund
Assets:
Investments, at Cost	$	40,319		$	40,940			$	77,092
Investments, at Value	$	50,108		$	56,407			$	79,552
Cash		—			—				25
Dividends and Interest Receivable		26			85				748
Receivable for Fund Shares Sold		24			2				5
Reclaim Receivable		1			5				—
Receivable for Investment Securities Sold		—			—				721
Prepaid Expenses		3			2				5
Total Assets		50,162			56,501				81,056
Liabilities:
Advisory Fees Payable		31			31				22
Payable for Fund Shares Redeemed		28			39				19
Shareholder Servicing Fees Payable		4			5				7
Administrative Fees Payable		4			5				8
Payable for Investment Securities Purchased		—			—				563
Income Distribution Payable		—			—				52
Chief Compliance Officer Fees Payable		—			—				1
Other Accrued Expenses Payable		22			30				46
Total Liabilities		89			110				718
Net Assets	$	50,073		$	56,391			$	80,338
Paid-in Capital	$	41,387		$	58,238			$	76,574
Accumulated Net Investment Loss, Undistributed (Distributions in Excess of) Net Investment Income		(18	)		(7	)			1
Accumulated Net Realized Gain (Loss) on Investments		(1,085	)		(17,307	)	��		1,303
Net Unrealized Appreciation on Investments		9,789			15,467				2,460
Net Assets	$	50,073		$	56,391			$	80,338
Class I Shares:
Net Assets	$	50,073		$	56,391			$	80,338
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)		3,332			5,027				7,956
Net Asset Value, Offering and Redemption Price Per Share — Class I (Net Assets / Shares Outstanding)	$	15.03		$	11.22			$	10.10

Amounts designated as “—” are either $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

June 30, 2013 www.bishopstreetfunds.com

31

Bishop Street Funds (unaudited)

Statement of Assets and Liabilities (000)

June 30, 2013

	Hawaii Municipal Bond Fund
Assets:
Investments, at Cost	$	151,108
Investments, at Value	$	153,125
Dividends and Interest Receivable		2,527
Receivable for Fund Shares Sold		12
Prepaid Expenses		8
Total Assets		155,672
Liabilities:
Income Distribution Payable		260
Payable for Fund Shares Redeemed		135
Advisory Fees Payable		24
Shareholder Servicing Fees Payable		13
Administrative Fees Payable		9
Chief Compliance Officer Fees Payable		1
Other Accrued Expenses Payable		99
Total Liabilities		541
Net Assets	$	155,131
Paid-in Capital	$	152,041
Undistributed Net Investment Income		4
Accumulated Net Realized Gain on Investments		1,069
Net Unrealized Appreciation on Investments		2,017
Net Assets	$	155,131
Class I Shares:
Net Assets	$	129,942
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)		12,166
Net Asset Value, Offering and Redemption Price Per Share — Class I (Net Assets / Shares Outstanding)	$	10.68
Class A Shares:
Net Assets	$	25,189
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)		2,359
Net Asset Value and Redemption Price Per Share — Class A (Net Assets / Shares Outstanding)	$	10.68
Maximum Offering Price Per Shares — Class A ($10.68 / 97.00%)	$	11.01

The accompanying notes are an integral part of the financial statements.

Bishop Street Funds

32

Bishop Street Funds (unaudited)

Statements of Operations (000)

For the six-month period ended June 30, 2013

	Strategic Growth Fund			Dividend Value Fund			High Grade Income Fund
Investment Income:
Dividend Income	$	268		$	854		$	—
Interest Income		—			—			1,222
Less: Foreign Taxes Withheld		—			(3	)		—
Total Investment Income		268			851			1,222
Expenses:
Investment Adviser Fees		182			213			230
Shareholder Servicing Fees		62			72			104
Administrative Fees		49			58			84
Chief Compliance Officer Fees		2			2			3
Transfer Agent Fees		20			21			25
Printing Fees		8			10			14
Audit Fees		6			7			11
Legal Fees		4			5			7
Trustees’ Fees		3			3			5
Registration Fees		2			1			8
Custody Fees		2			2			3
Pricing Fees		—			1			9
Miscellaneous Expenses		3			3			4
Total Expenses		343			398			507
Less Waivers:
Shareholder Servicing Fees		(37	)		(43	)		(63	)
Administrative Fees		(20	)		(23	)		(33	)
Investment Adviser Fees		—			(30	)		(93	)
Total Waivers		(57	)		(96	)		(189	)
Total Net Expenses		286			302			318
Net Investment Income (Loss)		(18	)		549			904
Net Realized Gain on Investments		1,266			3,125			908
Net Change in Unrealized Appreciation (Depreciation) on Investments		3,634			4,642			(4,179	)
Net Realized and Unrealized Gain (Loss) on Investments		4,900			7,767			(3,271	)
Increase (Decrease) in Net Assets Resulting from Operations	$	4,882		$	8,316		$	(2,367	)

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, 2013 www.bishopstreetfunds.com

33

Bishop Street Funds (unaudited)

Statement of Operations (000)

For the six-month period ended June 30, 2013

	Hawaii Municipal Bond Fund
Investment Income:
Interest Income	$	2,630
Total Investment Income		2,630
Expenses:
Investment Adviser Fees		281
Shareholder Servicing Fees		201
Administrative Fees		161
Distribution Fees, Class A		32
Chief Compliance Officer Fees		6
Transfer Agent Fees		46
Printing Fees		27
Audit Fees		21
Pricing Fees		16
Legal Fees		13
Trustees’ Fees		10
Registration Fees		6
Custody Fees		4
Miscellaneous Expenses		8
Total Expenses		832
Less Waivers:
Investment Adviser Fees		(133	)
Shareholder Servicing Fees		(120	)
Administrative Fees		(104	)
Total Waivers		(357	)
Total Net Expenses		475
Net Investment Income		2,155
Net Realized Gain on Investments		441
Net Change in Unrealized Depreciation on Investments		(7,086	)
Net Realized and Unrealized Loss on Investments		(6,645	)
Decrease in Net Assets Resulting from Operations	$	(4,490	)

The accompanying notes are an integral part of the financial statements.

Bishop Street Funds

34

Bishop Street Funds

Statements of Changes in Net Assets (000)

For the six-month period ended June 30, 2013 (unaudited) and the year ended December 31, 2012

	Strategic Growth Fund						Dividend Value Fund
	2013			2012			2013			2012
Investment Activities from Operations:
Net Investment Income (Loss)	$	(18	)	$	106		$	549		$	1,302
Net Realized Gain on Investments		1,266			6,930			3,125			2,201
Net Increase from Payments by Affiliate and Net Gains Realized on Capital Transactions (See note 5)		—			122			—			—
Net Change in Unrealized Appreciation (Depreciation) on Investments		3,634			(1,542	)		4,642			2,746
Increase in Net Assets Resulting from Operations		4,882			5,616			8,316			6,249
Dividends and Distributions to Shareholders:
Net Investment Income:
Class I Shares		—			(107	)		(555	)		(1,309	)
Total Dividends and Distributions to Shareholders		—			(107	)		(555	)		(1,309	)
Capital Share Transactions:
Proceeds from Shares Issued		1,498			15,372			363			3,727
Reinvestments of Cash Distributions		—			79			396			911
Cost of Shares Redeemed		(2,951	)		(24,729	)		(9,266	)		(11,127	)
Net Decrease in Net Assets from Capital Share Transactions		(1,453	)		(9,278	)		(8,507	)		(6,489	)
Total Increase (Decrease) in Net Assets		3,429			(3,769	)		(746	)		(1,549	)
Net Assets:
Beginning of Period		46,644			50,413			57,137			58,686
End of Period	$	50,073		$	46,644		$	56,391		$	57,137
Accumulated Net Investment Loss/Undistributed (Distributions in Excess of) Net Investment Income	$	(18	)	$	—		$	(7	)	$	(1	)
Share Transactions:
Shares Issued		91			1,116			34			384
Shares Issued in Lieu of Cash Distributions		—			6			36			94
Shares Redeemed		(199	)		(1,802	)		(858	)		(1,150	)
Net Decrease in Shares Outstanding from Share Transactions		(108	)		(680	)		(788	)		(672	)

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, 2013 www.bishopstreetfunds.com

35

Bishop Street Funds

Statements of Changes in Net Assets (000)

For the six-month period ended June 30, 2013 (unaudited) and the year ended December 31, 2012

	High Grade Income Fund						Hawaii Municipal Bond Fund
	2013			2012			2013			2012
Investment Activities from Operations:
Net Investment Income	$	904		$	2,246		$	2,155		$	4,498
Net Realized Gain on Investments		908			1,681			441			1,747
Net Change in Unrealized Appreciation (Depreciation) on Investments		(4,179	)		592			(7,086	)		1,618
Increase (Decrease) in Net Assets Resulting from Operations		(2,367	)		4,519			(4,490	)		7,863
Dividends and Distributions to Shareholders:
Net Investment Income:
Class I Shares		(904	)		(2,229	)		(1,839	)		(3,849	)
Class A Shares		—			—			(319	)		(649	)
Capital Gains:
Class I Shares		—			(1,585	)		—			(493	)
Class A Shares		—			—			—			(92	)
Total Dividends and Distributions to Shareholders		(904	)		(3,814	)		(2,158	)		(5,083	)
Capital Share Transactions:
Class I Shares:
Proceeds from Shares Issued		2,890			10,770			10,396			18,071
Reinvestments of Cash Distributions		576			2,396			326			702
Cost of Shares Redeemed		(5,628	)		(21,206	)		(9,391	)		(17,300	)
Total Class I Capital Share Transactions		(2,162	)		(8,040	)		1,331			1,473
Class A Shares:
Proceeds from Shares Issued		—			—			2,097			5,092
Reinvestments of Cash Distributions		—			—			280			514
Cost of Shares Redeemed		—			—			(1,768	)		(3,746	)
Total Class A Capital Share Transactions		—			—			609			1,860
Net Increase (Decrease) in Net Assets from Capital Share Transactions		(2,162	)		(8,040	)		1,940			3,333
Total Increase (Decrease) in Net Assets		(5,433	)		(7,335	)		(4,708	)		6,113
Net Assets:
Beginning of Period		85,771			93,106			159,839			153,726
End of Period	$	80,338		$	85,771		$	155,131		$	159,839
Undistributed Net Investment Income	$	1		$	1		$	4		$	7
Share Transactions:
Class I Shares:
Shares Issued		277			1,019			931			1,628
Shares Issued in Lieu of Cash Distributions		55			227			35			58
Shares Redeemed		(541	)		(2,002	)		(851	)		(1,552	)
Total Class I Transactions		(209	)		(756	)		115			134
Class A Shares:
Shares Issued		—			—			189			459
Shares Issued in Lieu of Cash Distributions		—			—			26			46
Shares Redeemed		—			—			(161	)		(338	)
Total Class A Transactions		—			—			54			167
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(209	)		(756	)		169			301

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

36

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Bishop Street Funds

Financial Highlights

For a share outstanding throughout the six-month period ended June 30,2013 (unaudited) and the years ended December 31,

				Investment Activities								Total Investment Activities from Operations				Dividends and Distributions from
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)(1)				Net Realized and Unrealized Gain (Loss) on Investments								Net Investment Income				Capital Gains				Total Dividends and Distributions
STRATEGIC GROWTH FUND
Class I Shares:
2013		$	13.56		$	(0.01	)		$	1.48			$	1.47			$	—			$	—			$	—
2012			12.24			0.03				1.32	††			1.35				(0.03	)			—				(0.03	)
2011			12.65			(0.01	)			(0.40	)			(0.41	)			—				—				—
2010			10.64			(0.01	)			2.02				2.01				—				—				—
2009			8.08			—	**			2.56				2.56				—				—				—
2008			14.05			(0.02	)			(5.73	)			(5.75	)			—				(0.22	)			(0.22	)
DIVIDEND VALUE FUND
Class I Shares:
2013		$	9.83		$	0.10			$	1.40			$	1.50			$	(0.11	)		$	—			$	(0.11	)
2012			9.05			0.21				0.79				1.00				(0.22	)			—				(0.22	)
2011			8.68			0.19				0.37				0.56				(0.19	)‡			—				(0.19	)
2010			7.83			0.16				0.85				1.01				(0.16	)‡			—				(0.16	)
2009			6.02			0.06				1.81				1.87				(0.06	)			—				(0.06	)
2008			10.54			0.07				(4.47	)			(4.40	)			(0.07	)			(0.05	)			(0.12	)
HIGH GRADE INCOME FUND
Class I Shares:
2013		$	10.51		$	0.11			$	(0.41	)		$	(0.30	)		$	(0.11	)		$	—			$	(0.11	)
2012			10.44			0.26				0.26				0.52				(0.26	)			(0.19	)			(0.45	)
2011			10.42			0.35				0.36				0.71				(0.34	)			(0.35	)			(0.69	)
2010			10.65			0.41				0.18				0.59				(0.40	)			(0.42	)			(0.82	)
2009			10.56			0.43				0.44				0.87				(0.43	)			(0.35	)			(0.78	)
2008			10.15			0.43				0.41				0.84				(0.43	)			—				(0.43	)

(1) Per share net investment income calculated using average shares.

 * Annualized

** Amount represents less than $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.

 ‡ Includes return of capital of less than $0.01

†† Includes payment by affiliate of $0.03 per share. If payments by affiliates were not made, total return would have been decreased by 0.27%. (See Note 5)

Amounts designated as “—” are either $0 or have been rounded to $0.

Bishop Street Funds

38

Net Asset Value, End of Period			Total Return†			Net Assets End of Period (000)			Ratio of Expenses to Average Net Assets			Ratio of Expenses to Average Net Assets (Excluding Waivers)			Ratio of Net Investments Income (Loss) to Average Net Assets			Portfolio Turnover Rate
	$	15.03		10.84	%		$	50,073		1.17	%*		1.40	%*		(0.08	)%*		31	%
		13.56		11.05	††			46,644		1.17			1.40			0.21			68
		12.24		(3.24	)			50,413		1.16			1.39			(0.12	)		53
		12.65		18.89				50,054		1.14			1.37			(0.12	)		53
		10.64		31.68				60,929		1.11			1.34			0.00			54
		8.08		(41.46	)			62,237		1.06			1.29			(0.19	)		73
	$	11.22		15.25	%		$	56,391		1.05	%*		1.38	%*		1.90	%*		6	%
		9.83		11.07				57,137		1.05			1.38			2.19			17
		9.05		6.53				58,686		1.05			1.38			2.16			11
		8.68		13.07				53,864		1.05			1.47			1.98			84
		7.83		31.28				50,259		1.05			1.36			0.89			82
		6.02		(42.02	)			51,859		1.05			1.30			0.84			75
	$	10.10		(2.86	)%		$	80,338		0.76	%*		1.21	%*		2.17	%*		19	%
		10.51		5.05				85,771		0.76			1.20			2.47			39
		10.44		6.94				93,106		0.76			1.17			3.31			52
		10.42		5.63				103,885		0.76			1.16			3.79			39
		10.65		8.41				126,334		0.76			1.13			4.08			82
		10.56		8.53				121,976		0.76			1.10			4.22			28

The accompanying notes are an integral part of the financial statements.

June 30, 2013 www.bishopstreetfunds.com

39

Bishop Street Funds

Financial Highlights

For a share outstanding throughout the six-month period ended June 30,2013 (unaudited) and the years ended December 31,

				Investment Activities							Total Investment Activities from Operations				Dividends and Distributions from
	Net Asset Value, Beginning of Period			Net Investment Income(1)			Net Realized and Unrealized Gain (Loss) on Investments								Net Investment Income				Capital Gains				Total Dividends and Distributions
HAWAII MUNICIPAL BOND FUND
Class I Shares:
2013		$	11.13		$	0.15		$	(0.45	)		$	(0.30	)		$	(0.15	)		$	—			$	(0.15	)
2012			10.94			0.32			0.23				0.55				(0.32	)			(0.04	)			(0.36	)
2011			10.41			0.36			0.53				0.89				(0.36	)			—				(0.36	)
2010			10.62			0.38			(0.20	)			0.18				(0.38	)			(0.01	)			(0.39	)
2009			10.05			0.38			0.57				0.95				(0.38	)			—				(0.38	)
2008			10.56			0.40			(0.51	)			(0.11	)			(0.40	)			—				(0.40	)
Class A Shares:
2013		$	11.13		$	0.14		$	(0.45	)		$	(0.31	)		$	(0.14	)		$	—			$	(0.14	)
2012			10.94			0.29			0.23				0.52				(0.29	)			(0.04	)			(0.33	)
2011			10.41			0.33			0.53				0.86				(0.33	)			—				(0.33	)
2010			10.62			0.35			(0.20	)			0.15				(0.35	)			(0.01	)			(0.36	)
2009			10.05			0.36			0.57				0.93				(0.36	)			—				(0.36	)
2008			10.56			0.38			(0.51	)			(0.13	)			(0.38	)			—				(0.38	)

(1) Per share net investment income calculated using average shares.

 * Annualized

 † 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.

Bishop Street Funds

40

Net Asset Value, End of Period			Total Return†			Net Assets End of Period (000)			Ratio of Expenses to Average Net Assets			Ratio of Expenses to Average Net Assets (Excluding Waivers)			Ratio of Net Investments Income to Average Net Assets			Portfolio Turnover Rate
	$	10.68		(2.73	)%		$	129,942		0.55	%*		1.00	%*		2.73	%*		13	%
		11.13		5.06				134,179		0.55			0.99			2.86			23
		10.94		8.72				130,345		0.55			0.97			3.41			32
		10.41		1.70				132,392		0.55			0.97			3.54			35
		10.62		9.63				139,872		0.55			0.95			3.68			27
		10.05		(1.02	)			130,807		0.55			0.93			3.91			36
	$	10.68		(2.85	)%		$	25,189		0.80	%*		1.25	%*		2.48	%*		13	%
		11.13		4.80				25,660		0.80			1.24			2.61			23
		10.94		8.45				23,381		0.80			1.22			3.16			32
		10.41		1.44				28,160		0.80			1.22			3.29			35
		10.62		9.35				26,105		0.80			1.20			3.43			27
		10.05		(1.27	)			23,707		0.80			1.17			3.66			36

The accompanying notes are an integral part of the financial statements.

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Notes to Financial Statements

June 30, 2013

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 four funds (each a Fund, collectively the “Funds”) which includes the Strategic Growth Fund, Dividend Value Fund, High Grade Income Fund, and the Hawaii Municipal Bond Fund. Each Fund is diversified, with the exception of Hawaii Municipal Bond Fund, which is non-diversified. 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 U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the fair value of assets, 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 and such differences could be material.

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) including securities traded over the counter, 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. Such methodologies typically include matrix systems which reflect such factors as security yields securities and ratios. Debt obligations with remaining maturities of sixty days or

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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.

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day net asset value per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Pricing Committee (the “Committee”) designated by the Funds’ Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been 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.

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. 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 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 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, etc.); and

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• 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).

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.

As of June 30, 2013, all of the investments in the Strategic Growth Fund and the Dividend Value Fund were considered Level 1. For details of the investment classifications, refer to the Schedule of Investments.

The following is a summary of the inputs used as of June 30, 2013 in valuing the following Fund’s investments carried at value:

High Grade Income Fund
Investments in Securities	Level 1		Level 2		Level 3		Total
Corporate Obligations	$	—	$	46,878	$	—	$	46,878
U.S. Treasury Obligations		—		16,926		—		16,926
Municipal Bonds		—		7,382		—		7,382
U.S. Government Agency Obligations		—		5,623		—		5,623
Non-Agency Mortgage-Backed Obligation		—		939		—		939
U.S. Government Mortgage-Backed Obligations		—		806		—		806
Short-Term Investment		998		—		—		998
Total Investments in Securities	$	998	$	78,554	$	—	$	79,552
Hawaii Municipal Bond Fund
Investments in Securities	Level 1		Level 2		Level 3		Total
Municipal Bonds	$	—	$	152,596	$	—	$	152,596
Short-Term Investment		529		—		—		529
Total Investments in Securities	$	529	$	152,596	$	—	$	153,125

For the six-month period ended June 30, 2013, there were no transfers between Level 1 and Level 2 assets and liabilities. For the six-month period ended June 30, 2013, there have been no significant changes to the Funds’ fair value methodologies. For the six-month period year ended June 30, 2013 there were no Level 3 investments.

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Federal Income Taxes

It is each Fund’s intention to continue to qualify as a regulated investment company for federal income tax purposes under Subchapter M of the Internal Revenue Code, as amended, and to distribute substantially all of its taxable income and net capital gains. Accordingly, no provision for federal income taxes is required.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than- not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last 3 open tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

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 from settlement date 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 effective interest method.

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 Trust are prorated to each of the Funds on the basis of relative net assets.

Dividends and Distributions to Shareholders

The Strategic Growth and Dividend Value Funds declare and pay dividends from 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 and

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Hawaii Municipal Bond. 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 charges”) are not recorded as expenses of the Hawaii Municipal Bond Fund. Sales charges are deducted from proceeds from the sales of Hawaii Municipal Bond Fund shares prior to investment in Class A shares.

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 the Prime Rate plus 4.00%. Cash overdraft charges are included in miscellaneous expenses on the Statements of Operations. For the six-month period ended June 30, 2013, there were no cash overdraft charges.

3. INVESTMENT ADVISORY 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 BancWest 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 Dividend Value Funds, 0.55% of the average daily net assets of the High Grade Income Fund, and 0.35% of the average daily net assets of the Hawaii Municipal Bond Fund. The Adviser has contractually 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 contractual expense limitations are as follows:

Strategic Growth Fund, Class I Shares	1.25%
Dividend Value Fund, Class I Shares	1.05%
High Grade Income Fund, Class I Shares	0.76%
Hawaii Municipal Bond Fund, Class I Shares	0.55%
Hawaii Municipal Bond Fund, Class A Shares	0.80%

These fees and waivers are labeled on the Statement of Operations as “Investment Adviser Fees/Waivers.”

If at any point it becomes unnecessary for the Adviser to reduce fees and make expense reimbursements, the Board may permit the Adviser to retain the difference between the Total Annual Fund Operating Expenses and contractual expense limitations to recapture all or a portion of its prior expense reductions or reimbursements made during the preceding three year period during which this agreement was in place.

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During the six-month period ended June 30, 2013, the Adviser did not recapture any previously waived fees.

As of June 30, 2013, fees which were previously waived by the Investment Manager which may be subject to possible future reimbursement to the Adviser were as follows:

Dividend Value Fund		High Grade Income Fund		Hawaii Municipal Bond Fund		Total		Expires
$	29,330	$	89,115	$	118,988	$	237,433		6/30/2014
	23,370		86,045		103,995		213,410		6/30/2015
	33,984		94,527		138,396		266,907		6/30/2016

BNP Paribas Asset Management, Inc. (“BNPP AM”) serves as the investment sub-adviser for the Strategic Growth Fund, pursuant to a sub-adviser agreement. BNPP AM 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.

Columbia Management Investment Advisers, LLC (“Columbia”) serves as the investment sub-adviser for the Dividend Value Fund, pursuant to a sub-adviser agreement. Columbia is entitled to receive from the Adviser a fee, computed daily and paid monthly, at the annual rate based on the average daily net assets of the Dividend Value Fund, under the following fee schedule: 0.360% on the first $75 million; 0.350% on the next $75 million; 0.325% on the next $100 million; 0.300% on the next $250 million; and 0.250% on assets over $500 million.

4. ADMINISTRATIVE, CUSTODIAN, TRANSFER AGENT AND DISTRIBUTION SERVICES

Pursuant to an administration agreement (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, and has voluntarily agreed to waive its administrative fee to 0.12% of each of the Funds’ average daily net assets excluding the Hawaii Municipal Bond Fund which is waived to 0.07% of its average daily net assets. These fees and waivers are labeled as “Administrative Fees/Waivers” on the Statement of Operations.

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 labeled on the Statement of Operations as “Custody Fees.”

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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”), the “Distributer” a wholly owned subsidiary of SEI Investments Company, acts as the Trust’s Distributor pursuant to the distribution agreement. 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 not to exceed an annual rate of 0.25% of the average daily net asset value of all shares of each fund, which is computed daily and paid monthly. Under the shareholder service plan, SIDCO may perform, or may compensate other service providers for performing various shareholder and administrative services. SIDCO may also retain as profit any difference between the fee it receives and amount it pays to third parties. For the period, SIDCO paid the entire amount of fees received under the shareholder service plan to First Hawaiian Bank, the Parent Company of Bishop Street Capital Management, for shareholder services performed for the Funds. SIDCO has voluntarily agreed to waive 0.15% of its shareholder servicing fee to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. These fees and waivers are represented as “Shareholder Servicing Fees/Waivers” 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 SIDCO. Such officers are paid no fees by the Trust other than the Chief Compliance Officer (“CCO”) as described below, for serving as officers of the Trust.

A portion of the services provided by the CCO and his staff, who 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 and expenses have been approved by and are reviewed by the Board. These fees are disclosed on the Statement of Operations as “Chief Compliance Officer Fees.”

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On March 14, 2012, the Strategic Growth Fund, (the “Fund”) received $115,398 from an affiliate of the Fund for gains recognized by the affiliate from a capital transaction that was improperly recorded. Additionally on April 25, 2012, the Fund received $7,161 from the affiliate to reimburse the Fund for losses and commissions incurred as a result of the above capital transaction. These amounts were labeled as “Net Increase from Payments by Affiliate and Net Gains Realized on Capital Transactions” on the Statement of Changes in Net Assets for the year ended December 31, 2012.

6. INVESTMENT TRANSACTIONS

The cost of security purchases and the proceeds from the sale and maturities of securities, other than short-term investments, for the six-month period ended June 30, 2013 are presented below for the Funds.

	Strategic Growth Fund		Dividend Value Fund		High Grade Income Fund		Hawaii Municipal Bond Fund
Purchases
U.S. Government Securities	$	—	$	—	$	—	$	—
Other		15,043		3,639		15,446		24,311
Sales and Maturities
U.S. Government Securities	$	—	$	—	$	4,738	$	—
Other		16,808		12,323		12,506		20,804

7. FEDERAL TAX INFORMATION

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.

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The tax character of dividends and distributions declared during the years ended December 31, 2012 and 2011 were as follows:

	Ordinary Income		Tax Exempt Income		Long Term Capital Gain		Return of Capital		Total
Strategic Growth Fund
2012	$	107	$	—	$	—	$	—	$	107
2011		—		—		—		—		—
Dividend Value Fund
2012	$	1,309	$	—	$	—	$	—	$	1,309
2011		1,202		—		—		2		1,204
High Grade Income Fund
2012	$	2,388	$	—	$	1,426	$	—	$	3,814
2011		3,339		—		2,937		—		6,276
Hawaii Municipal Bond Fund
2012	$	—	$	4,498	$	585	$	—	$	5,083
2011		—		5,177		—		—		5,177

As of December 31, 2012, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:

	Strategic Growth Fund			Dividend Value Fund			High Grade Income Fund		Hawaii Municipal Bond Fund
Undistributed Tax Exempt Income	$	—		$	—		$	—	$	1
Undistributed Ordinary Income		—			—			16		—
Undistributed Long-Term Capital Gain Income		—			—			388		631
Capital Loss Carryforwards		(2,062	)		(20,263	)		—		—
Post October Losses		—			(20	)		—		—
Unrealized Appreciation		5,866			10,675			6,631		9,106
Total Distributable Earnings (Accumulated Losses)	$	3,804		$	(9,608	)	$	7,035	$	9,738

Post-October losses represent losses realized on investment transactions from November 1, 2012 through December 31, 2012 that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

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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:

	Strategic Growth Fund		Dividend Value Fund
Dec. 2016	$	—	$	3,801
Dec. 2017		2,062		14,625
Dec. 2018		—		1,837
Total	$	2,062		20,263

During the period ended December 31, 2012, the Strategic Growth Fund, Dividend Value Fund and the Hawaii Municipal Bond Fund utilized capital loss carryforwards of $6,438, $1,818, and $532 respectively, to offset realized capital gains.

Under the recently enacted Regulated Investment Company Modernization Act of 2010, Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. As of December 31, 2012, under the new provisions, there were no losses carried forward.

The aggregate gross unrealized appreciation and depreciation of securities held by the Strategic Growth, Dividend Value, High Grade Income, and Hawaii Municipal Bond Funds for Federal income tax purposes at June 30, 2013 were as follows:

	Strategic Growth Fund			Dividend Value Fund			High Grade Income Fund			Hawaii Municipal Bond Fund
Federal Tax Cost	$	40,319		$	40,940		$	77,092		$	151,111
Gross Unrealized Appreciation		10,768			15,590			3,398			4,405
Gross Unrealized Depreciation		(979	)		(123	)		(938	)		(2,391	)
Net Unrealized Appreciation	$	9,789		$	15,467		$	2,460		$	2,014

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8. RISKS

The Hawaii Municipal Bond Fund invests primarily in debt instruments in the state of Hawaii. The issuers’ ability to meet their obligations may be affected by economic developments in that state. In 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 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 the general 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 is considered remote.

9. 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 served basis, with Union Bank, N.A. (the “Bank”) which expires June 09, 2014. 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 period at the Bank current reference rate

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minus 1%. As of June 30, 2013 the Funds had no borrowings outstanding. For the six-month period ended June 30, 2013, the Funds had the following borrowings under the line of credit:

	Average Borrowings (000)		Borrowing Costs (000)	Number of Days Outstanding		Weighted Average Interest Rate
Strategic Growth Fund	$	14	Less than $1		53		2.25	%
Dividend Value Fund		1	Less than $1		6		2.25	%

10. OTHER

At June 30, 2013, the percentage of total shares outstanding held by shareholders for each Fund, which comprised omnibus accounts that were held on behalf of several individual shareholders, was as follows:

	Number of Shareholders		% of Outstanding Shares
Strategic Growth Fund, Class I Shares		2		97.18	%
Dividend Value Fund, Class I Shares		1		98.77
High Grade Income Fund, Class I Shares		2		92.62
Hawaii Municipal Bond Fund, Class I Shares		1		71.29
Hawaii Municipal Bond Fund, Class A Shares		1		7.39

11. RECENT ACCOUNTING PRONOUNCEMENT

In June 2013, the Financial Accounting Standards Board issued an update (“ASU 2013-08”) to ASC Topic 946, Financial Services — Investment Companies (“Topic 946”). ASU 2013-08 amends the guidance in Topic 946 for determining whether an entity qualifies as an investment company and requires certain additional disclosures. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management is currently evaluating the impact, if any, of ASU 2013-08 on the Bishop Street Funds’ financial statements.

12. SUBSEQUENT EVENTS

The Funds have evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were available to be issued. Based on this evaluation, no additional disclosures or adjustments were required to the financial statements.

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Disclosure of Fund Expenses

All mutual funds have operating expenses. As a shareholder of a mutual fund you incur two types of costs: (1) transaction costs, including applicable sales charges (loads); and (2) ongoing costs, which include (among others) costs for portfolio management, administrative services, distribution and service (12b-1), shareholder service 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.

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	Beginning Account Value 1/1/13		Ending Account Value 6/30/13		Annualized Expense Ratios			Expenses Paid During Period*
Strategic Growth Fund — Class I
Actual Fund Return	$	1,000.00	$	1,108.40		1.17	%	$	6.27
Hypothetical 5% Return		1,000.00		1,019.47		1.17			6.01
Dividend Value Fund — Class I
Actual Fund Return	$	1,000.00	$	1,152.50		1.05	%	$	5.75
Hypothetical 5% Return		1,000.00		1,020.08		1.05			5.39
High Grade Income Fund — Class I
Actual Fund Return	$	1,000.00	$	971.40		0.76	%	$	3.81
Hypothetical 5% Return		1,000.00		1,021.56		0.76			3.91
Hawaii Municipal Bond Fund — Class I
Actual Fund Return	$	1,000.00	$	972.70		0.55	%	$	2.76
Hypothetical 5% Return		1,000.00		1,022.63		0.55			2.83
Hawaii Municipal Bond Fund — Class A
Actual Fund Return	$	1,000.00	$	971.50		0.80	%	$	4.01
Hypothetical 5% Return		1,000.00		1,021.35		0.80			4.11

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

June 30, 2013 www.bishopstreetfunds.com

55

Bishop Street Funds (unaudited)

Approval of Investment Advisory Agreement

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), after their initial two-year term, the following agreements (collectively, the “Agreements”) must be renewed annually:

• the Advisory Agreement between Bishop Street Capital Management (the “Adviser”) and Bishop Street Funds (the “Trust”), on behalf of the Dividend Value Fund, the Hawaii Municipal Bond Fund, the High Grade Income Fund and the Strategic Growth Fund (collectively, the “Funds”);

• the Sub-Advisory Agreement between the Adviser and Columbia Management Investment Advisers, LLC (“Columbia”), on behalf of the Dividend Value Fund;

• and the Sub-Advisory Agreement between the Adviser and BNP Paribas Asset Management, Inc. (“BNP Paribas”), on behalf of the Strategic Growth Fund (Columbia and BNP Paribas collectively referred to as the “Sub-Advisers”).

The Agreements must be renewed: (i) by the vote of the Board of Trustees (the “Board”) of the Trust or by a vote of a majority of the shareholders of the Funds; 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 renewal. 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 the Adviser and the Sub-Advisers and other service providers of the Funds. The Trustees use this information, as well as other information that the Adviser, the Sub-Advisers and other service providers of the Funds may submit to the Board at the meeting and other meetings held during the prior year, to help them decide whether to renew the Agreements for an additional year.

Specifically, the Board requested and received written materials from the Adviser and the Sub-Advisers and other service providers of the Funds regarding: (i) the quality of the Adviser’s and the Sub-Advisers’ investment management and other services; (ii) the Adviser’s and the Sub-Advisers’ investment management personnel; (iii) the Adviser’s and the Sub-Advisers’ operations and financial condition; (iv) the Adviser’s and the Sub-Advisers’ brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Funds’ advisory fees paid to the Adviser and the Sub-Advisers and overall fees and operating expenses compared with similar mutual funds; (vi) the level of the Adviser’s and the Sub-Advisers’ profitability from their relationship with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (vii) the Adviser’s and the Sub-Advisers’ compliance systems; (viii) the Adviser’s and the Sub-Advisers’ policies on and compliance procedures for personal securities transactions; (ix) the

Bishop Street Funds

56

(unaudited)

Adviser’s and the Sub-Advisers’ reputation, expertise and resources in financial markets; and (x) the Funds’ performance compared with similar mutual funds.

Representatives from the Adviser and the Sub-Advisers, along with other Fund service providers, presented additional oral and written information and participated in question and answer sessions at Board meetings to help the Trustees evaluate the Adviser’s and the Sub-Advisers’ services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive sessions outside the presence of Fund management and the Adviser and the Sub-Advisers.

At the February 12-13, 2013 meeting, the Trustees, including all of the Independent Trustees, renewed the Agreements. The Board’s renewal was based on its consideration and evaluation of a variety of specific factors discussed at the meeting and at prior meetings, including: (i) the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers; (ii) the investment performance of the Funds and the Adviser and the Sub-Advisers; (iii) the costs of the services provided and profits realized by the Adviser and the Sub-Advisers from their relationship with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates; (iv) the extent to which economies of scale are being realized by the Adviser and the Sub-Advisers; and (v) whether fee levels reflect any economies of scale being realized by the Adviser and the Sub-Advisers for the benefit of Fund investors, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Advisers

In considering the nature, extent and quality of the services provided by the Adviser and the Sub-Advisers, the Board reviewed the portfolio management services provided by the Adviser and the Sub-Advisers to the Funds, including the quality and continuity of the Adviser’s and the Sub-Advisers’ portfolio management personnel. The most recent investment adviser registration forms (“Form ADV”) for the Adviser and the Sub-Advisers were provided to the Board, as were the responses of the Adviser and the Sub-Advisers 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 the Funds.

The Trustees also considered other services provided to the Funds by the Adviser and the Sub-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, within the context of its full deliberations, that it was satisfied with the nature, extent and quality of the services provided to the Funds by the Adviser and the Sub-Advisers.

June 30, 2013 www.bishopstreetfunds.com

57

Bishop Street Funds (unaudited)

Investment Performance of the Funds, the Adviser and the Sub-Advisers

The Board was provided with information regarding the Funds’ performance since the Agreements were last renewed, as well as information regarding the Funds’ performance since their inception. The Board also compared the Funds’ performance to their benchmark indices and other similar mutual funds over various periods of time. Representatives from the Adviser and the Sub-Advisers provided information regarding and led discussions of factors impacting the performance of the Funds over the past year, outlining current market conditions and explaining their expectations and strategies for the future. Based on this information, the Board concluded, within the context of its full deliberations, that it was satisfied with the investment results that the Adviser and the Sub-Advisers had been able to achieve for the Funds.

Costs of Advisory Services, Profitability and Economies of Scale

In concluding that the advisory fees payable by the Funds were reasonable, the Trustees reviewed, among other things, a report of the advisory fees paid to the Adviser and the Sub-Advisers as well as the costs of services provided by and the profits realized by the Adviser and the Sub-Advisers from their relationship with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Advisers and their affiliates, and concluded that such profits were not excessive. The Trustees also reviewed reports comparing the expense ratio and advisory fees paid by the Funds to those paid by other comparable mutual funds. The Board concluded, within the context of its full deliberations, that the advisory fees were reasonable in light of the services rendered and the costs of such services. The Board also considered the Adviser’s and the Sub-Advisers’ commitment to managing the Funds and the Adviser’s willingness to continue its expense limitation and fee waiver arrangements with the Funds.

The Board considered the existence of any economies of scale and whether those were passed along to the Funds’ shareholders through a graduated advisory fee schedule or other means, including expense limitation and fee waiver arrangements. Based on this evaluation, the Board concluded that, within the context of its full deliberations, economies of scale had not yet been achieved with respect to the Funds.

While formal Board action was not taken with respect to the conclusions discussed above, those conclusions formed, in part, the basis for the Board’s renewal of the Agreements. Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Agreements are fair and reasonable; (b) concluded that the Adviser’s and the Sub-Advisers’ fees are reasonable in light of the

Bishop Street Funds

58

(unaudited)

services (and the costs of such services) that the Adviser and the Sub-Advisers’ provide to the Funds; and (c) agreed to renew the Agreements for another year. In its deliberations, the Board did not identify any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.

June 30, 2013 www.bishopstreetfunds.com

59

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

FORMOREINFORMATIONABOUT BISHOP STREET FUNDS,CALL 1-800-262-9565

ORYOUR INVESTMENT SPECIALIST

VISITUSONLINEATWWW.BISHOPSTREETFUNDS.COM

BISHOP STREET FUNDS P.O. BOX 219721 KANSAS CITY, MO 64121-9721

THISREPORTANDTHEFINANCIALSTATEMENTSCONTAINEDHEREINARESUBMITTEDFORTHEGENERALINFORMATIONOF BISHOP STREET FUNDS’SHAREHOLDERS. THISREPORTISNOTAUTHORIZEDFORDISTRIBUTIONTOPROSPECTIVEINVESTORSUNLESSPRECEDEDORACCOMPANIEDBYANEFFECTIVEPROSPECTUS.

SHARESOF BISHOP STREET FUNDSARE NOTDEPOSITSOROBLIGATIONSOF,ORGUARANTEEDBY FIRST HAWAIIAN BANKORANYOFITSAFFILIATES. SUCHSHARESAREALSO NOTFEDERALLYINSUREDBYTHE FEDERAL DEPOSIT INSURANCE CORPORATION,THE FEDERAL RESERVE BOARD,ORANYOTHERAGENCY. INVESTMENTINSHARESOFMUTUALFUNDSINVOLVESRISK,INCLUDINGTHEPOSSIBLELOSSOFPRINCIPAL. THE BISHOP STREET FUNDSAREDISTRIBUTEDBY SEI INVESTMENTS DISTRIBUTION CO.,WHICHISNOTAFFILIATEDWITH FIRST HAWAIIAN BANK, BANKOFTHE WESTOR BANCWEST CORPORATION. BANCWEST CORPORATIONISAWHOLLY-OWNEDSUBSIDIARYOF BNP PARIBAS.

BSF-SA-004-1900

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 to open-end management investment companies.

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 to open-end management investment companies.

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 to open-end management investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.30a-15(b)) or 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is 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/ Michael Beattie
	Michael Beattie
	President
Date: September 5, 2013

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/ Michael Beattie
	Michael Beattie
	President
Date: September 5, 2013
By (Signature and Title)*	/s/ Michael Lawson
	Michael Lawson
	Treasurer, Controller & CFO
Date: September 5, 2013

* Print the name and title of each signing officer under his or her signature.