UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-4084
Hawaiian Tax-Free Trust
(Exact name of Registrant as specified in charter)
380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)
Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)
Registrant's telephone number, including area code:
(212) 697-6666
Date of fiscal year end: 3/31
Date of reporting period: 9/30/04
FORM N-CSR
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT
SEPTEMBER 30, 2004
HAWAIIAN
TAX-FREE
TRUST
A TAX-FREE INCOME INVESTMENT
[Logo of Hawaiian Tax-Free Trust: a palm tree in front of a circle which has an
island and water within it]
[Logo of the Aquila Group of Funds: an eagle's head]
ONE OF THE
AQUILA(SM) GROUP OF FUNDS
SERVING HAWAII INVESTORS
FOR 20 YEARS
HAWAIIAN
TAX-FREE TRUST
---------------------------------------------------
380 MADISON AVENUE, SUITE 2300 o NEW YORK, NY 10017
800-437-1020 o 212-697-6666
[Logo of Hawaiian Tax-Free Trust: a palm tree in front of a circle which has an
island and water within it](R)
SEMI-ANNUAL REPORT
HAWAIIAN TAX-FREE TRUST
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2004
(UNAUDITED)
RATING
FACE MOODY'S/
AMOUNT MUNICIPAL BONDS (98.7%) S&P VALUE
- ----------- ------------------------------------------------------------- -------- ------------
HAWAII (95.4%)
Board of Regents, University of Hawaii, University
System Revenue Bonds, Series A, FGIC Insured,
$ 1,805,000 5.500%, 07/15/14 .................................... Aaa/AAA $ 2,055,444
1,090,000 5.500%, 07/15/16 .................................... Aaa/AAA 1,238,044
2,000,000 5.500%, 07/15/19 .................................... Aaa/AAA 2,242,700
2,000,000 5.500%, 07/15/21 .................................... Aaa/AAA 2,215,620
2,000,000 5.500%, 07/15/22 .................................... Aaa/AAA 2,205,720
3,000,000 5.500%, 07/15/29 .................................... Aaa/AAA 3,209,040
Board of Regents, University of Hawaii, University
System Revenue Bonds, Series B, FSA Insured,
1,110,000 5.250%, 10/01/12 .................................... Aaa/AAA 1,236,052
1,000,000 5.250%, 10/01/13 .................................... Aaa/AAA 1,110,280
1,140,000 5.250%, 10/01/14 .................................... Aaa/AAA 1,255,311
1,395,000 5.250%, 10/01/15 .................................... Aaa/AAA 1,537,011
Board of Regents, University of Hawaii, University
System Revenue Bonds, Series I, Prerefunded
10/01/04 @ 102, FGIC Insured,
950,000 5.300%, 10/01/08 .................................... Aaa/AAA 965,590
2,825,000 5.500%, 10/01/18 .................................... Aaa/AAA 2,881,500
City and County of Honolulu, Hawaii Board of Water
Supply & System Revenue Bonds, FSA Insured
620,000 5.500%, 07/01/15 .................................... Aaa/AAA 695,014
3,000,000 5.125%, 07/01/21 .................................... Aaa/AAA 3,182,910
5,450,000 5.250%, 07/01/23 .................................... Aaa/AAA 5,785,775
City and County of Honolulu, Hawaii Board of Water Supply
& System Revenue Bonds, Series A, FGIC
1,000,000 3.000%, 07/01/11 .................................... Aaa/AAA 986,740
600,000 4.000%, 07/01/13 .................................... Aaa/AAA 621,936
1,365,000 4.000%, 07/01/14 .................................... Aaa/AAA 1,403,807
2,700,000 4.750%, 07/01/16 .................................... Aaa/AAA 2,902,473
2,805,000 4.750%, 07/01/17 .................................... Aaa/AAA 2,996,497
2,970,000 4.750%, 07/01/18 .................................... Aaa/AAA 3,150,517
3,095,000 4.750%, 07/01/19 .................................... Aaa/AAA 3,262,656
City and County of Honolulu, Hawaii Board of Water Supply
& System Revenue Bonds, Series A, FGIC (continued)
$ 3,265,000 4.750%, 07/01/20 .................................... Aaa/AAA $ 3,417,769
1,230,000 5.000%, 07/01/21 .................................... Aaa/AAA 1,309,938
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Escrowed to Maturity,
3,995,000 FGIC Insured, 5.750%, 04/01/11 .......................... Aaa/NR 4,625,651
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Escrowed to Maturity,
FGIC Insured,
4,110,000 6.000%, 01/01/11 .................................... Aaa/AAA 4,793,863
920,000 6.000%, 01/01/12 .................................... Aaa/AAA 1,085,223
775,000 5.750%, 04/01/13 .................................... Aaa/AAA 913,322
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Escrowed to Maturity,
MBIA Insured,
1,355,000 6.000%, 11/01/09 .................................... Aaa/AAA 1,566,299
410,000 6.000%, 11/01/10 .................................... Aaa/AAA 478,798
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, FGIC Insured,
9,970,000 7.350%, 07/01/07 .................................... Aaa/AAA 11,381,453
3,600,000 7.350%, 07/01/08 .................................... Aaa/AAA 4,241,916
1,715,000 6.000%, 01/01/11 .................................... Aaa/AAA 1,987,685
5,000 5.750%, 04/01/11 .................................... Aaa/AAA 5,764
1,580,000 6.000%, 01/01/12 .................................... Aaa/AAA 1,851,507
3,025,000 5.750%, 04/01/13 .................................... Aaa/AAA 3,518,710
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, FSA Insured,
2,500,000 5.000%, 09/01/09 ........................................ Aaa/AAA 2,761,250
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, MBIA Insured,
860,000 6.000%, 11/01/09 .................................... Aaa/AAA 994,108
1,090,000 6.000%, 11/01/10 .................................... Aaa/AAA 1,267,637
1,000,000 5.250%, 03/01/12 .................................... Aaa/AAA 1,126,460
3,000,000 5.250%, 03/01/15 .................................... Aaa/AAA 3,358,470
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, MBIA Insured, (continued)
$ 4,600,000 5.250%, 03/01/16 .................................... Aaa/AAA $ 5,149,654
4,655,000 5.000%, 07/01/16 .................................... Aaa/AAA 5,129,810
4,780,000 5.250%, 03/01/17 .................................... Aaa/AAA 5,303,601
2,000,000 5.250%, 03/01/18 .................................... Aaa/AAA 2,213,000
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Prerefunded 09/01/06
440,000 @ 102, FGIC Insured, 5.625%, 09/01/14 ................... Aaa/AAA 479,886
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Prerefunded
09/01/11 @ 100, FSA Insured
3,500,000 5.375%, 09/01/18 .................................... Aaa/AAA 4,003,160
2,000,000 5.125%, 09/01/20 .................................... Aaa/AAA 2,256,600
City and County of Honolulu, Hawaii General
Obligation Bonds, Series A, Prerefunded 11/01/05
2,280,000 @ 101, MBIA Insured, 5.000%, 11/01/15 ................... Aaa/AAA 2,382,714
City and County of Honolulu, Hawaii General
Obligation Bonds, Series B, FGIC Insured,
600,000 5.125%, 07/01/11 .................................... Aaa/AAA 667,590
7,310,000 5.500%, 10/01/11 .................................... Aaa/AAA 8,321,119
4,490,000 5.000%, 07/01/19 .................................... Aaa/AAA 4,794,691
1,395,000 5.000%, 07/01/20 .................................... Aaa/AAA 1,479,453
City and County of Honolulu, Hawaii General
Obligation Bonds, Series B, Prerefunded 07/01/09
2,595,000 @ 101, FGIC Insured, 5.125%, 07/01/15 ................... Aaa/AAA 2,906,997
City and County of Honolulu, Hawaii General
Obligation Bonds, Series B, Prerefunded 11/01/07
@ 101, FGIC Insured
930,000 5.000%, 11/01/13 .................................... Aaa/AAA 1,017,959
1,060,000 5.000%, 11/01/14 .................................... Aaa/AAA 1,160,255
530,000 5.000%, 11/01/16 .................................... Aaa/AAA 580,127
1,400,000 5.000%, 11/01/17 .................................... Aaa/AAA 1,532,412
City and County of Honolulu, Hawaii General
Obligation Bonds, Series C, FGIC Insured,
$ 4,000,000 5.000%, 07/01/05 .................................... Aaa/AAA $ 4,099,120
7,750,000 5.125%, 07/01/14 .................................... Aaa/AAA 8,488,963
2,510,000 5.000%, 07/01/18 .................................... Aaa/AAA 2,670,464
City and County of Honolulu, Hawaii General
Obligation Bonds, Water Utility Refunding and
Improvement, Escrowed to Maturity, FGIC Insured,
1,125,000 6.000%, 12/01/12 .................................... Aaa/AAA 1,342,361
1,050,000 6.000%, 12/01/15 .................................... Aaa/AAA 1,277,630
City and County of Honolulu, Hawaii Improvement
District No. 261 (Halawa Business Park),
Special Assessment Bonds,
365,000 6.700%, 10/15/04 .................................... NR/NR(2) 365,663
355,000 6.800%, 10/15/05 .................................... NR/NR(2) 363,754
290,000 6.900%, 10/15/06 .................................... NR/NR(2) 297,175
City and County of Honolulu, Hawaii Wastewater
Systems Revenue Bonds, FGIC Insured,
1,395,000 5.000%, 07/01/12 ........................................ Aaa/NR 1,528,794
City and County of Honolulu, Hawaii Wastewater
Systems Revenue Bonds, Junior Series, FGIC Insured,
2,000,000 5.250%, 07/01/13 .................................... Aaa/AAA 2,227,820
1,000,000 5.250%, 07/01/15 .................................... Aaa/AAA 1,101,280
2,400,000 5.250%, 07/01/16 .................................... Aaa/AAA 2,643,072
2,000,000 5.250%, 07/01/18 .................................... Aaa/AAA 2,167,560
5,055,000 5.000%, 07/01/23 .................................... Aaa/AAA 5,229,347
City and County of Honolulu, Hawaii Wastewater
Systems Revenue Bonds, Senior Series,
AMBAC Insured,
1,810,000 5.500%, 07/01/11 .................................... Aaa/NR 2,058,115
1,065,000 5.500%, 07/01/16 .................................... Aaa/NR 1,189,786
3,000,000 5.500%, 07/01/17 .................................... Aaa/NR 3,336,300
2,310,000 5.500%, 07/01/18 .................................... Aaa/NR 2,555,853
2,000,000 5.250%, 07/01/19 .................................... Aaa/NR 2,165,920
County of Hawaii, Hawaii General Obligation
Bonds, Series A, FGIC Insured,
$ 1,700,000 5.450%, 05/01/07 .................................... Aaa/AAA $ 1,848,087
3,170,000 5.500%, 05/01/08 .................................... Aaa/AAA 3,517,052
2,500,000 5.550%, 05/01/09 .................................... Aaa/AAA 2,809,050
4,905,000 5.600%, 05/01/11 .................................... Aaa/AAA 5,591,406
1,000,000 5.600%, 05/01/12 .................................... Aaa/AAA 1,148,640
1,000,000 5.600%, 05/01/13 .................................... Aaa/AAA 1,153,540
1,465,000 5.500%, 07/15/16 .................................... Aaa/AAA 1,637,533
County of Hawaii, Hawaii General Obligation
Bonds, Series A, FSA
1,000,000 5.375%, 05/15/13 .................................... Aaa/AAA 1,114,370
1,000,000 5.400%, 05/15/15 .................................... Aaa/AAA 1,107,670
1,000,000 5.000%, 07/15/16 .................................... Aaa/AAA 1,093,490
2,000,000 5.000%, 07/15/17 .................................... Aaa/AAA 2,174,480
1,470,000 5.625%, 05/15/18 .................................... Aaa/AAA 1,639,697
1,000,000 5.000%, 07/15/18 .................................... Aaa/AAA 1,080,270
County of Hawaii, Hawaii General Obligation
Bonds, Series A, Prerefunded 02/01/06 @ 101.5,
FGIC Insured
1,900,000 5.000%, 02/01/11 .................................... Aaa/AAA 2,008,433
1,970,000 5.100%, 02/01/12 .................................... Aaa/AAA 2,084,989
2,205,000 5.200%, 02/01/14 .................................... Aaa/AAA 2,336,572
2,440,000 5.200%, 02/01/16 .................................... Aaa/AAA 2,585,595
County of Hawaii, Hawaii General Obligation Bonds,
1,060,000 Series B, MBIA Insured, 4.250%, 07/15/09 ................ Aaa/AAA 1,132,652
County of Kauai, Hawaii General Obligation Bonds,
665,000 Escrowed to Maturity, 9.000%, 08/01/05 .................. A1/NR 704,614
County of Kauai, Hawaii General Obligation Bonds,
Series A, Prerefunded 08/01/10 @ 100,
FGIC Insured,
1,000,000 6.125%, 08/01/13 .................................... Aaa/AAA 1,171,000
1,010,000 6.250%, 08/01/14 .................................... Aaa/AAA 1,189,427
1,000,000 6.250%, 08/01/15 .................................... Aaa/AAA 1,177,650
County of Kauai, Hawaii General Obligation Bonds,
Series A, Prerefunded 08/01/10 @ 100,
FGIC Insured, (continued)
$ 1,000,000 6.250%, 08/01/16 .................................... Aaa/AAA $ 1,177,650
1,275,000 6.250%, 08/01/17 .................................... Aaa/AAA 1,501,504
County of Kauai, Hawaii General Obligation
Refunding Bonds, Series A, MBIA Insured,
1,010,000 5.700%, 02/01/07 .................................... Aaa/AAA 1,033,563
1,125,000 5.625%, 08/01/13 .................................... Aaa/AAA 1,285,031
1,620,000 5.625%, 08/01/14 .................................... Aaa/AAA 1,843,025
1,035,000 5.625%, 08/01/17 .................................... Aaa/AAA 1,166,062
1,000,000 5.625%, 08/01/18 .................................... Aaa/AAA 1,124,690
2,360,000 5.500%, 08/01/20 .................................... Aaa/AAA 2,615,423
County of Kauai, Hawaii General Obligation
Refunding Bonds, Series B & C, AMBAC Insured,
435,000 5.900%, 08/01/08 .................................... Aaa/AAA 491,289
1,355,000 5.900%, 08/01/08 .................................... Aaa/AAA 1,530,337
1,300,000 5.950%, 08/01/10 .................................... Aaa/AAA 1,504,165
County of Maui, Hawaii General Obligation Bonds,
Series A, FGIC Insured,
1,200,000 5.125%, 03/01/14 .................................... Aaa/AAA 1,307,460
1,050,000 5.125%, 03/01/16 .................................... Aaa/AAA 1,144,385
2,590,000 5.250%, 03/01/18 .................................... Aaa/AAA 2,795,413
County of Maui, Hawaii General Obligation Bonds,
Series A, MBIA Insured,
1,105,000 5.250%, 03/01/15 .................................... Aaa/AAA 1,223,323
1,205,000 5.250%, 03/01/16 .................................... Aaa/AAA 1,334,031
1,000,000 5.250%, 03/01/18 .................................... Aaa/AAA 1,095,500
1,750,000 5.250%, 03/01/19 .................................... Aaa/AAA 1,907,675
County of Maui, Hawaii General Obligation Bonds,
1,000,000 Series A, MBIA Insured, 5.500%, 03/01/18 ................ NR/AAA 1,107,790
County of Maui, Hawaii General Obligation Bonds,
Series A, Prerefunded 09/01/07 @ 101, FGIC Insured
$ 1,130,000 5.250%, 09/01/13 .................................... Aaa/AAA $ 1,241,780
1,265,000 5.250%, 09/01/15 .................................... Aaa/AAA 1,390,134
1,335,000 5.250%, 09/01/16 .................................... Aaa/AAA 1,467,058
County of Maui, Hawaii General Obligation Bonds,
1,065,000 Series B, FGIC Insured, 5.250%, 03/01/11 ................ Aaa/AAA 1,192,470
County of Maui, Hawaii General Obligation Bonds,
300,000 Series B, MBIA Insured, 5.375%, 09/01/13 ................ Aaa/AAA 340,539
County of Maui, Hawaii General Obligation Bonds,
Series C, FGIC Insured,
1,020,000 5.250%, 03/01/16 .................................... Aaa/AAA 1,116,094
1,000,000 5.250%, 03/01/17 .................................... Aaa/AAA 1,089,430
1,250,000 5.250%, 03/01/20 .................................... Aaa/AAA 1,342,588
County of Maui, Hawaii General Obligation Refunding
1,000,000 Bonds, Series A, FGIC Insured, 5.000%, 03/01/10 ......... Aaa/AAA 1,093,040
County of Maui, Hawaii General Obligation Refunding
1,445,000 Bonds, Series B, MBIA Insured, 5.375%, 09/01/12 ......... Aaa/AAA 1,645,638
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (Hawaiian
Electric Company, Inc.), Series A, AMBAC
2,965,000 Insured, 5.500%, 12/01/14 ............................... Aaa/AAA 3,305,797
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (Hawaiian
Electric Company, Inc.), Series A, MBIA Insured,
4,125,000 4.950%, 04/01/12 ........................................ Aaa/AAA 4,556,063
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (Hawaiian
Electric Company, Inc.), Series D-AMT, AMBAC
2,500,000 Insured, 6.150%, 01/01/20 ............................... Aaa/AAA 2,816,125
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (Hawaiian
Electric Company, Inc., and Subsidiaries Projects),
Series A-AMT, MBIA Insured,
$13,000,000 6.600%, 01/01/25 .................................... Aaa/AAA $ 13,267,930
5,700,000 5.650%, 10/01/27 .................................... Aaa/AAA 6,151,839
Department of Budget and Finance of the State
of Hawaii Special Purpose Revenue Bonds
(Hawaiian Electric Company, Inc., and Subsidiaries
Projects), Series B-AMT, XL Capital Insured,
1,000,000 5.000%, 12/01/22 ........................................ Aaa/AAA 1,032,100
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds
(Kapiolani Health Care System), MBIA Insured,
825,000 6.300%, 07/01/08 .................................... Aaa/AAA 847,407
1,000,000 6.000%, 07/01/11 .................................... Aaa/AAA 1,078,840
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds
(Kapiolani Health Care System), MBIA Insured,
6,000,000 6.400%, 07/01/13 .................................... Aaa/AAA 6,131,580
1,000,000 6.200%, 07/01/16 .................................... Aaa/AAA 1,082,220
1,000,000 6.250%, 07/01/21 .................................... Aaa/AAA 1,083,070
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (St. Francis
17,000,000 Medical Centers), FSA Insured, 6.500%, 07/01/22 ......... Aaa/AAA 17,093,499
Department of Budget and Finance of the State of
Hawaii Special Purpose Revenue Bonds (The
Evangelical Lutheran Good Samaritan Society),
715,000 AMBAC Insured, 4.700%, 11/01/06 ......................... Aaa/AAA 752,795
Department of Budget and Finance of the State of Hawaii
Special Purpose Revenue Bonds (The Queen's Health
System), Series A, Prerefunded 07/01/06 @ 102,
5,000,000 6.050%, 07/01/16 .................................... A1/A+ 5,459,850
8,625,000 6.000%, 07/01/20 .................................... A1/A+ 9,410,910
3,500,000 5.750%, 07/01/26 .................................... A1/A+ 3,804,010
Department of Budget and Finance of the State of Hawaii
Special Purpose Revenue Bonds (The Queen's Health
System), Series A, Weekly Reset VRDO(1),
$ 2,925,000 SPA: Bank of Nova Scotia, 1.680%, 07/01/26 .............. VMIG1/A-1 $ 2,925,000
Department of Budget and Finance of the State of Hawaii
Special Purpose Revenue Bonds (The Queen's Health
8,000,000 System), Series B, MBIA Insured, 5.250%, 07/01/23 ....... Aaa/AAA 8,361,680
Department of Hawaiian Home Lands (State of
Hawaii) Revenue Bonds,
1,310,000 4.150%, 07/01/08 .................................... A3/NR 1,374,216
1,525,000 4.350%, 07/01/10 .................................... A3/NR 1,608,402
1,245,000 4.450%, 07/01/11 .................................... A3/NR 1,304,636
Hawaii Community Development Authority Improvement
District Revenue Bonds (Kakaako Community
1,010,000 Development District 3), 7.400%, 07/01/10 ............... NR/NR(2) 1,024,766
Hawaii Community Development Authority
Improvement District Special Assessment Bonds
(Kakaako Community Development District 1),
155,000 5.400%, 07/01/05 ........................................ NR/NR(2) 157,091
Hawaii Community Development Authority
Improvement District Special Assessment Bonds
(Kakaako Community Development District 2),
420,000 5.400%, 07/01/05 .................................... NR/NR(2) 425,666
435,000 5.500%, 07/01/06 .................................... NR/NR(2) 441,564
465,000 5.600%, 07/01/07 .................................... NR/NR(2) 471,598
365,000 5.700%, 07/01/08 .................................... NR/NR(2) 370,179
Housing Finance and Development Corporation
(State of Hawaii) Affordable Rental Housing
Program Revenue Bonds, Series A, Weekly Reset
13,600,000 VRDO(1), LOC: BNP Paribas, 1.700%, 07/01/27 ............. VMIG1/NR 13,600,000
Housing Finance and Development Corporation
(State of Hawaii) Rental Housing System
Revenue Bonds, Series A,
2,000,000 5.600%, 07/01/12 .................................... A2/NR 2,014,640
3,000,000 5.700%, 07/01/18 .................................... A2/NR 3,021,300
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage Revenue
Bonds, Series A-AMT, FNMA Insured,
$ 2,985,000 5.300%, 07/01/22 .................................... Aaa/AAA $ 3,093,982
860,000 6.000%, 07/01/26 .................................... Aaa/AAA 872,358
1,675,000 5.400%, 07/01/30 .................................... Aaa/AAA 1,706,256
12,060,000 5.750%, 07/01/30 .................................... Aaa/AAA 12,410,222
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage Revenue
Bonds, Series B, FNMA Insured,
2,500,000 5.700%, 07/01/13 .................................... Aaa/AAA 2,558,125
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage Revenue
Bonds, Series B, FNMA Insured,
9,350,000 5.450%, 07/01/17 .................................... Aaa/AAA 9,743,635
16,750,000 5.850%, 07/01/17 .................................... Aaa/AAA 17,080,644
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage Revenue
Bonds, Series B, FNMA Insured,
6,800,000 5.300%, 07/01/28 .................................... Aaa/AAA 6,937,496
4,025,000 7.000%, 07/01/31 .................................... Aaa/AAA 4,093,023
Housing Finance and Development Corporation
(State of Hawaii) University of Hawaii Faculty
Housing Project, Revenue Bonds, AMBAC Insured,
2,125,000 5.650%, 10/01/16 .................................... Aaa/AAA 2,222,049
4,000,000 5.700%, 10/01/25 .................................... Aaa/AAA 4,184,640
State of Hawaii Airport System Revenue Bonds,
AMT, FGIC Insured,
4,000,000 5.750%, 07/01/17 .................................... Aaa/AAA 4,477,280
6,000,000 5.625%, 07/01/18 .................................... Aaa/AAA 6,682,980
6,000,000 5.250%, 07/01/21 .................................... Aaa/AAA 6,258,660
State of Hawaii Airport System Revenue Bonds,
AMT, Second Series, Escrowed to Maturity, MBIA
6,455,000 Insured, 6.900%, 07/01/12 ............................... Aaa/AAA 7,621,806
State of Hawaii Airport System Revenue Bonds,
$ 3,000,000 Series B-AMT, FGIC Insured, 8.000%, 07/01/10 ............ Aaa/AAA $ 3,697,920
State of Hawaii Airport System Revenue Bonds,
Weekly Reset VRDO(1), LOC: Societe Generale,
7,000,000 1.720%, 07/01/13 ........................................ VMIG1/A-1+ 7,000,000
State of Hawaii General Obligation Bonds, Series
1,000,000 BW, FSA Insured, 6.400%, 03/01/09 ....................... Aaa/AAA 1,156,730
State of Hawaii General Obligation Bonds,
Series BZ, FGIC Insured,
3,700,000 6.000%, 10/01/11 .................................... Aaa/AAA 4,326,521
3,500,000 6.000%, 10/01/12 .................................... Aaa/AAA 4,129,265
State of Hawaii General Obligation Bonds, Series
2,000,000 CA, FGIC Insured, 5.750%, 01/01/11 ...................... Aaa/AAA 2,289,900
State of Hawaii General Obligation Bonds, Series
590,000 CC, 5.125%, 02/01/07 .................................... Aa3/AA- 632,173
State of Hawaii General Obligation Bonds, Series
1,000,000 CH, 4.750%, 11/01/11 .................................... Aa3/AA- 1,096,060
State of Hawaii General Obligation Bonds, Series
CH, FGIC Insured,
5,000,000 6.000%, 11/01/07 .................................... Aaa/AAA 5,583,450
3,390,000 6.000%, 11/01/08 .................................... Aaa/AAA 3,862,125
State of Hawaii General Obligation Bonds, Series
1,500,000 CI, 4.700%, 11/01/07 .................................... Aa3/AA- 1,612,635
State of Hawaii General Obligation Bonds, Series
2,305,000 CL, FGIC Insured, 6.000%, 03/01/11 ...................... Aaa/AAA 2,680,392
State of Hawaii General Obligation Bonds, Series
3,000,000 CM, FGIC Insured, 6.500%, 12/01/15 ...................... Aaa/AAA 3,755,640
State of Hawaii General Obligation Bonds,
Series CN, FGIC Insured,
4,000,000 5.250%, 03/01/10 .................................... Aaa/AAA 4,344,320
4,000,000 5.250%, 03/01/13 .................................... Aaa/AAA 4,339,400
3,000,000 5.500%, 03/01/14 .................................... Aaa/AAA 3,271,950
7,950,000 5.250%, 03/01/15 .................................... Aaa/AAA 8,624,558
1,000,000 5.250%, 03/01/17 .................................... Aaa/AAA 1,083,610
State of Hawaii General Obligation Bonds,
Series CP, FGIC Insured,
$ 5,000,000 5.000%, 10/01/13 .................................... Aaa/AAA $ 5,417,850
2,195,000 5.000%, 10/01/14 .................................... Aaa/AAA 2,377,756
5,000,000 5.000%, 10/01/15 .................................... Aaa/AAA 5,417,850
7,195,000 5.000%, 10/01/17 .................................... Aaa/AAA 7,686,347
State of Hawaii General Obligation Bonds,
Series CR, MBIA Insured,
1,000,000 5.250%, 04/01/13 .................................... Aaa/AAA 1,095,920
5,000,000 5.000%, 04/01/16 .................................... Aaa/AAA 5,399,500
16,000,000 5.000%, 04/01/17 .................................... Aaa/AAA 17,234,079
State of Hawaii General Obligation Bonds,
Series CS, MBIA Insured,
5,000,000 5.000%, 04/01/07 .................................... Aaa/AAA 5,367,450
5,500,000 5.000%, 04/01/09 .................................... Aaa/AAA 6,041,145
State of Hawaii General Obligation Bonds,
Series CU, MBIA Insured,
1,250,000 5.750%, 10/01/08 .................................... Aaa/AAA 1,408,888
1,000,000 5.750%, 10/01/09 .................................... Aaa/AAA 1,138,460
State of Hawaii General Obligation Bonds, Series
CU, Prerefunded 10/01/10 @ 100, MBIA Insured,
3,000,000 5.600%, 10/01/19 ........................................ Aaa/AAA 3,440,580
State of Hawaii General Obligation Bonds, Series
CV, FGIC Insured,
11,000,000 5.000%, 08/01/20 .................................... Aaa/AAA 11,596,750
1,015,000 5.000%, 08/01/21 .................................... Aaa/AAA 1,063,903
5,000,000 5.250%, 08/01/21 .................................... Aaa/AAA 5,360,400
State of Hawaii General Obligation Bonds, Series
CX, FSA Insured,
2,000,000 5.250%, 02/01/12 .................................... Aaa/AAA 2,250,360
8,725,000 5.500%, 02/01/13 .................................... Aaa/AAA 9,927,654
500,000 5.000%, 02/01/19 .................................... Aaa/AAA 531,765
2,500,000 5.500%, 02/01/21 .................................... Aaa/AAA 2,755,850
State of Hawaii General Obligation Bonds,
Series CY, FSA Insured,
$ 2,500,000 5.750%, 02/01/14 .................................... Aaa/AAA $ 2,911,550
2,000,000 5.750%, 02/01/15 .................................... Aaa/AAA 2,345,260
State of Hawaii General Obligation Bonds,
Series CZ, FSA Insured,
1,500,000 5.250%, 07/01/12 .................................... Aaa/AAA 1,691,700
9,390,000 5.250%, 07/01/16 .................................... Aaa/AAA 10,434,544
3,000,000 5.250%, 07/01/17 .................................... Aaa/AAA 3,316,650
3,000,000 5.250%, 07/01/18 .................................... Aaa/AAA 3,297,570
State of Hawaii General Obligation Bonds, Series
2,000,000 DD, MBIA Insured, 4.250%, 05/01/10 ...................... Aaa/AAA 2,128,420
State of Hawaii Harbor Capital Improvement Revenue
3,850,000 Bonds, AMT, MBIA Insured, 5.750%, 07/01/17 .............. Aaa/AAA 4,137,865
State of Hawaii Harbor Capital Improvement Revenue
Bonds, Series B-AMT, AMBAC Insured,
3,000,000 5.500%, 07/01/19 ........................................ Aaa/AAA 3,288,420
State of Hawaii Harbor System Revenue Bonds,
1,360,000 Series A, 2.500%, 01/01/05 .................................. A1/A+ 1,363,114
State of Hawaii Harbor System Revenue Bonds,
Series A, FSA Insured,
1,350,000 4.500%, 01/01/07 .................................... Aaa/AAA 1,426,235
1,285,000 4.500%, 01/01/08 .................................... Aaa/AAA 1,375,207
State of Hawaii Harbor System Revenue Bonds,
Series A-AMT, FSA Insured,
2,000,000 5.750%, 07/01/17 .................................... Aaa/AAA 2,213,200
1,500,000 5.900%, 07/01/21 .................................... Aaa/AAA 1,654,260
State of Hawaii Harbor System Revenue Bonds,
2,765,000 Series B-AMT, 2.500%, 01/01/05 .......................... A1/A+ 2,770,641
State of Hawaii Harbor System Revenue Bonds,
Series B-AMT, FSA Insured,
870,000 5.000%, 01/01/07 .................................... Aaa/AAA 924,671
1,220,000 5.000%, 01/01/08 .................................... Aaa/AAA 1,316,648
3,275,000 4.500%, 01/01/09 .................................... Aaa/AAA 3,494,589
2,000,000 5.000%, 01/01/11 .................................... Aaa/AAA 2,181,960
State of Hawaii Highway Revenue Bonds,
Callable 07/01/10 @ 100, FSA Insured
$ 2,000,000 4.500%, 07/01/10 .................................... Aaa/AAA $ 2,158,100
2,000,000 4.500%, 07/01/11 .................................... Aaa/AAA 2,153,880
5,105,000 5.000%, 07/01/12 .................................... Aaa/AAA 5,671,093
500,000 5.250%, 07/01/13 .................................... Aaa/AAA 553,360
250,000 5.125%, 07/01/14 .................................... Aaa/AAA 268,923
1,530,000 5.375%, 07/01/14 .................................... Aaa/AAA 1,700,809
2,720,000 5.500%, 07/01/19 .................................... Aaa/AAA 2,998,990
2,000,000 5.375%, 07/01/20 .................................... Aaa/AAA 2,175,680
1,110,000 5.500%, 07/01/20 .................................... Aaa/AAA 1,221,422
State of Hawaii Highway Revenue Bonds, FGIC Insured,
3,705,000 5.600%, 07/01/13 .................................... Aaa/AAA 3,993,286
2,000,000 5.250%, 07/01/16 .................................... Aaa/AAA 2,144,820
------------
712,957,721
============
PUERTO RICO (3.3%)
Puerto Rico Commonwealth Aqueduct and Sewer
Authority Revenue Bonds, MBIA Insured,
2,500,000 5.000%, 07/01/15 ........................................ Aaa/AAA 2,650,800
Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Bonds, Series J, Callable 07/01/14
5,745,000 @ 100, MBIA Insured, 5.000%, 07/01/17 ................... Aaa/AAA 6,345,812
Puerto Rico Commonwealth Public Finance Corp.
Revenue Bonds, Series A, Prerefunded 08/01/11
5,000,000 @ 100, MBIA Insured, 5.500%, 08/01/17 ................... Aaa/AAA 5,765,750
Puerto Rico Commonwealth Public Improvement
General Obligation Bonds, MBIA Insured,
1,800,000 5.250%, 07/01/13 ........................................ Aaa/AAA 2,010,978
Puerto Rico Commonwealth Public Improvement
General Obligation Bonds, Series A, FGIC Insured,
4,000,000 5.500%, 07/01/13 .................................... Aaa/AAA 4,659,840
2,000,000 5.500%, 07/01/16 .................................... Aaa/AAA 2,356,880
Puerto Rico Commonwealth Public Improvement
General Obligation Bonds, Series CR, FSA Insured,
$ 1,060,000 5.250%, 07/01/17 ........................................ Aaa/AAA $ 1,224,459
------------
25,014,519
------------
Total Investments (Cost $692,373,059) (3) ................... 98.7% 737,972,240
Other assets less liabilities ............................... 1.3 9,652,021
----- ------------
Net Assets .................................................. 100.0% $747,624,261
===== ============
(1) Variable rate demand obligation (VRDOs) are payable upon
demand within the same day for securities with daily
liquidity or seven days for securities with weekly
liquidity.
(2) Any securities not rated (NR) by either rating service
have been determined by the Investment Adviser to have
sufficient quality to be ranked in the top four credit
ratings if a credit rating were to be assigned by a
rating service.
(3) See footnote 4 to the financial statements.
PORTFOLIO ABBREVIATIONS:
AMBAC American Municipal Bond Assurance Corporation
AMT Alternative Minimum Tax
FGIC Financial Guaranty Insurance Co.
FNMA Federal National Mortgage Association
FSA Financial Securities Assurance
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance
NR Not Rated
SPA Standby Bond Purchase Agreement
VRDO Variable Rate Demand Obligation
See accompanying notes to financial statements.
HAWAIIAN TAX-FREE TRUST
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2004
(UNAUDITED)
ASSETS
Investments at value (cost $692,373,059) .................................................. $737,972,240
Cash ...................................................................................... 626,685
Interest receivable ....................................................................... 9,910,748
Receivable for Trust shares sold .......................................................... 530,600
Other assets .............................................................................. 58,058
------------
Total assets .............................................................................. 749,098,331
------------
LIABILITIES
Dividends payable ......................................................................... 603,397
Distribution and service fees payable ..................................................... 289,485
Adviser and Administrator fees payable .................................................... 245,263
Payable for Trust shares redeemed ......................................................... 238,956
Accrued expenses .......................................................................... 96,969
------------
Total liabilities ......................................................................... 1,474,070
------------
NET ASSETS ...................................................................................... $747,624,261
============
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $.01 per share ........ $ 636,318
Additional paid-in capital ................................................................ 698,036,566
Net unrealized appreciation on investments (note 4) ....................................... 45,599,181
Accumulated net realized gain on investments .............................................. 1,268,119
Undistributed net investment income ....................................................... 2,084,077
------------
$747,624,261
============
CLASS A
Net Assets ................................................................................ $686,192,847
============
Capital shares outstanding ................................................................ 58,404,470
============
Net asset value and redemption price per share ............................................ $ 11.75
============
Offering price per share (100/96 of $11.75 adjusted to nearest cent) ...................... $ 12.24
============
CLASS C
Net Assets ................................................................................ $ 37,867,766
============
Capital shares outstanding ................................................................ 3,224,669
============
Net asset value and offering price per share .............................................. $ 11.74
============
Redemption price per share (*a charge of 1% is imposed on the redemption
proceeds of the shares, or on the original price, whichever is lower, if redeemed
during the first 12 months after purchase) .......................................... $ 11.74*
============
CLASS Y
Net Assets ................................................................................ $ 23,563,648
============
Capital shares outstanding ................................................................ 2,002,655
============
Net asset value, offering and redemption price per share .................................. $ 11.77
============
See accompanying notes to financial statements.
HAWAIIAN TAX-FREE TRUST
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004
(UNAUDITED)
INVESTMENT INCOME:
Interest income .......................................... $17,328,400
Expenses:
Investment Adviser fees (note 3) ......................... $ 517,079
Administrator fees (note 3) .............................. 960,295
Distribution and service fees (note 3) ................... 862,187
Transfer and shareholder servicing agent fees ............ 184,483
Trustees' fees and expenses (note 8) ..................... 69,282
Shareholders' reports and proxy statements ............... 66,719
Legal fees ............................................... 65,261
Insurance ................................................ 40,138
Custodian fees ........................................... 24,049
Auditing and tax fees .................................... 19,869
Registration fees and dues ............................... 17,018
Miscellaneous ............................................ 25,500
-----------
2,851,880
Expenses paid indirectly (note 6) ........................ (8,620)
-----------
Net expenses ............................................. 2,843,260
-----------
Net investment income .................................... 14,485,140
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from securities transactions .... 827,602
Change in unrealized appreciation on investments ......... (5,974,518)
-----------
Net realized and unrealized gain (loss) on investments ... (5,146,916)
-----------
Net change in net assets resulting from operations ....... $ 9,338,224
===========
See accompanying notes to financial statements.
HAWAIIAN TAX-FREE TRUST
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
SEPTEMBER 30, 2004 YEAR ENDED
(UNAUDITED) MARCH 31, 2004
------------------ --------------
OPERATIONS:
Net investment income ................................... $ 14,485,140 $ 28,704,948
Net realized gain (loss) from securities transactions ... 827,602 986,153
Change in unrealized appreciation on investments ........ (5,974,518) 4,749,938
------------- -------------
Change in net assets resulting from operations .......... 9,338,224 34,441,039
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 10):
Class A Shares:
Net investment income ................................... (13,420,033) (26,573,300)
Class C Shares:
Net investment income ................................... (579,967) (1,134,456)
Class Y Shares:
Net investment income ................................... (485,140) (997,192)
------------- -------------
Change in net assets from distributions ................. (14,485,140) (28,704,948)
------------- -------------
CAPITAL SHARE TRANSACTIONS (NOTE 7):
Proceeds from shares sold ............................... 33,068,542 66,381,406
Reinvested dividends and distributions .................. 8,127,327 15,988,808
Cost of shares redeemed ................................. (43,785,328) (66,720,092)
------------- -------------
Change in net assets from capital share transactions .... (2,589,459) 15,650,122
------------- -------------
Change in net assets ................................ (7,736,375) 21,386,213
NET ASSETS:
Beginning of period ..................................... 755,360,636 733,974,423
------------- -------------
End of period* .......................................... $ 747,624,261 $ 755,360,636
============= =============
* Includes undistributed net investment income of: $ 2,084,077 $ 2,084,077
============= =============
See accompanying notes to financial statements.
HAWAIIAN TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION
Hawaiian Tax-Free Trust (the "Trust"), a non-diversified, open-end
investment company, was organized on May 7, 1984, as a Massachusetts business
trust and commenced operations on February 20, 1985. The Trust is authorized to
issue an unlimited number of shares and, from its inception to April 1, 1996,
offered only one class of shares. On that date, the Trust began offering two
additional classes of shares, Class C and Class Y shares. All shares outstanding
prior to that date were designated as Class A shares and are sold with a
front-payment sales charge and bear an annual distribution fee. Class C shares
are sold with a level-payment sales charge with no payment at time of purchase
but level service and distribution fees from date of purchase through a period
of six years thereafter. A contingent deferred sales charge of 1% is assessed to
any Class C shareholder who redeems shares of this Class within one year from
the date of purchase. Class C Shares, together with a pro-rata portion of all
Class C Shares acquired through reinvestment of dividends and other
distributions paid in additional Class C Shares, automatically convert to Class
A Shares after 6 years. The Class Y shares are only offered to institutions
acting for an investor in a fiduciary, advisory, agency, custodial or similar
capacity and are not offered directly to retail investors. Class Y shares are
sold at net asset value without any sales charge, redemption fees, contingent
deferred sales charge or distribution or service fees. On July 21, 1998, the
Trust established Class I shares, which are offered and sold only through
financial intermediaries and are not offered directly to retail investors. As of
the report date, there were no Class I Shares outstanding. All classes of shares
represent interests in the same portfolio of investments and are identical as to
rights and privileges but differ with respect to the effect of sales charges,
the distribution and/or service fees borne by each class, expenses specific to
each class, voting rights on matters affecting a single class and the exchange
privileges of each class.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with U.S. generally accepted accounting principles.
a) PORTFOLIO VALUATION: Municipal securities which have remaining maturities
of more than 60 days are valued each business day based upon information
provided by a nationally prominent independent pricing service and
periodically verified through other pricing services. In the case of
securities for which market quotations are readily available, securities
are valued at the mean of bid and asked quotations. If market quotations
or a valuation from the pricing service is not readily available, the
security is valued at fair value determined under procedures established
by and under the general supervision of the Board of Trustees. Securities
which mature in 60 days or less are valued at amortized cost if their term
to maturity at purchase is 60 days or less, or by amortizing their
unrealized appreciation or depreciation on the 61st day prior to maturity,
if their term to maturity at purchase exceeds 60 days.
b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses
from securities transactions are reported on the identified cost basis.
Interest income is recorded daily on the accrual basis and is adjusted for
amortization of premium and accretion of original issue discount and
market discount on a daily basis.
c) FEDERAL INCOME TAXES: It is the policy of the Trust to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. The
Trust intends to make distributions of income and securities profits
sufficient to relieve it from all, or substantially all, Federal income
and excise taxes.
d) MULTIPLE CLASS ALLOCATION: All income, expenses (other than class-specific
expenses), and unrealized gains or losses are allocated daily to each
class of shares based on the relative net assets of each class.
Class-specific expenses, which include distribution and service fees and
any other items that are specifically attributed to a particular class,
are charged directly to such class.
e) USE OF ESTIMATES: The preparation of financial statements in conformity
with U.S. generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period.
Actual results could differ from those estimates.
3. FEES AND RELATED PARTY TRANSACTIONS
a) MANAGEMENT ARRANGEMENTS:
The Asset Management Group of Bank of Hawaii (the "Adviser"), serves as
Investment Adviser to the Trust. In this role, under an Investment Advisory
Agreement, the Adviser supervises the Trust's investments and provides various
services to the Trust, for which it is entitled to receive a fee which is
payable monthly and computed as of the close of business each day at the annual
rate of 0.14% of the net assets of the Trust.
Aquila Investment Management LLC the ("Administrator"), a wholly-owned
subsidiary of Aquila Management Corporation, the Trust's founder and sponsor,
serves as the Administrator for the Trust under an Administration Agreement with
the Trust. Under this Agreement, the Administrator provides all administrative
services, other than those relating to the management of the Trust's
investments. These include providing the office of the Trust and all related
services as well as overseeing the activities of all the various support
organizations to the Trust such as the shareholder servicing agent, custodian,
legal counsel, auditors and distributor. For its services, the Administrator is
entitled to receive a fee which is payable monthly and computed as of the close
of business each day at the annual rate of 0.26% of the net assets of the Trust.
Specific details as to the nature and extent of the services provided by
the Adviser and the Administrator are more fully defined in the Trust's
Prospectus and Statement of Additional Information.
The Adviser and the Administrator each agrees that the above fees shall be
reduced, but not below zero, by an amount equal to its pro-rata portion
(determined on the basis of the respective fees computed as described above) of
the amount, if any, by which the total expenses of the Trust in any fiscal year,
exclusive of taxes, interest and brokerage fees, shall exceed the lesser of (i)
2.5% of the first $30 million of average annual net assets of the Trust plus 2%
of the next $70 million of such assets and 1.5% of its average annual net assets
in excess of $100 million, or (ii) 25% of the Trust's total annual investment
income. The payment of the above fees at the end of any month will be reduced or
postponed so that at no time will there be any accrued but unpaid liability
under this expense limitation. No such reduction in fees was required during the
six months ended September 30, 2004.
b) DISTRIBUTION AND SERVICE FEES:
The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 (the "Rule") under the Investment Company Act of 1940. Under one part of
the Plan, with respect to Class A Shares, the Trust is authorized to make
service fee payments to broker-dealers or others ("Qualified Recipients")
selected by Aquila Distributors, Inc. (the "Distributor"), including, but not
limited to, any principal underwriter of the Trust, with which the Distributor
has entered into written agreements contemplated by the Rule and which have
rendered assistance in the distribution and/or retention of the Trust's shares
or servicing of shareholder accounts. The Trust makes payment of this service
fee at the annual rate of 0.20% of the Trust's average net assets represented by
Class A Shares. For the six months ended September 30, 2004, service fees on
Class A Shares amounted to $678,612, of which the Distributor retained $43,054.
Under another part of the Plan, the Trust is authorized to make payments
with respect to Class C Shares to Qualified Recipients which have rendered
assistance in the distribution and/or retention of the Trust's Class C shares or
servicing of shareholder accounts. These payments are made at the annual rate of
0.75% of the Trust's net assets represented by Class C Shares and for the six
months ended September 30, 2004, amounted to $137,681. In addition, under a
Shareholder Services Plan, the Trust is authorized to make service fee payments
with respect to Class C Shares to Qualified Recipients for providing personal
services and/or maintenance of shareholder accounts. These payments are made at
the annual rate of 0.25% of the Trust's net assets represented by Class C Shares
and for the six months ended September 30, 2004, amounted to $45,894. The total
of these payments made with respect to Class C Shares amounted to $183,575 of
which the Distributor retained $29,932.
Specific details about the Plans are more fully defined in the Trust's
Prospectus and Statement of Additional Information.
Under a Distribution Agreement, the Distributor serves as the exclusive
distributor of the Trust's shares. Through agreements between the Distributor
and various broker-dealer firms ("dealers"), the Trust's shares are sold
primarily through the facilities of these dealers having offices within Hawaii,
with the bulk of sales commissions inuring to such dealers. For the six months
ended September 30, 2004, total commissions on sales of Class A Shares amounted
to $617,284, of which the Distributor received $70,147.
c) OTHER RELATED PARTY TRANSACTIONS:
For the six months ended September 30, 2004, the Trust incurred $63,075 of
legal fees allocable to Hollyer Brady Barrett &Hines LLP, counsel to the Trust,
for legal services in conjunction with the Trust's ongoing operations. The
Secretary of the Trust is a Partner of Hollyer Brady Barrett & Hines LLP.
4. PURCHASES AND SALES OF SECURITIES
During the six months ended September 30, 2004, purchases of securities
and proceeds from the sales of securities aggregated $37,886,115 and
$30,298,855, respectively.
At September 30, 2004, aggregate gross unrealized appreciation for all
securities in which there is an excess of market value over tax cost amounted to
$45,865,052 and gross unrealized depreciation for all securities in which there
is an excess of tax cost over market value amounted to $265,871 for a net
unrealized appreciation of $45,599,181. The tax cost of the Trust's securities
at September 30, 2004 equaled $692,373,059.
5. PORTFOLIO ORIENTATION
Since the Trust invests principally and may invest entirely in double
tax-free municipal obligations of issuers within Hawaii, it is subject to
possible risks associated with economic, political, or legal developments or
industrial or regional matters specifically affecting Hawaii and whatever
effects these may have upon Hawaii issuers' ability to meet their obligations.
6. EXPENSES
The Trust has negotiated an expense offset arrangement with its custodian
wherein it receives credit toward the reduction of custodian fees and other
Trust expenses whenever there are uninvested cash balances. The Statement of
Operations reflects the total expenses before any offset, the amount of offset
and the net expenses. It is the general intention of the Trust to invest, to the
extent practicable, some or all of cash balances in income-producing assets
rather than leave cash on deposit.
7. CAPITAL SHARE TRANSACTIONS
Transactions in Capital Shares of the Trust were as follows:
SIX MONTHS ENDED
SEPTEMBER 30, 2004 YEAR ENDED
(UNAUDITED) MARCH 31, 2004
------------------------------ ------------------------------
SHARES AMOUNT SHARES AMOUNT
------------ ------------ ------------ ------------
CLASS A SHARES:
Proceeds from shares sold ... 2,272,706 $ 26,354,869 4,338,910 $ 51,110,178
Reinvested distributions .... 661,949 7,683,444 1,277,260 15,049,500
Cost of shares redeemed ..... (3,184,064) (36,879,858) (4,480,901) (52,720,550)
------------ ------------ ------------ ------------
Net change .................. (249,409) (2,841,545) 1,135,269 13,439,128
------------ ------------ ------------ ------------
CLASS C SHARES:
Proceeds from shares sold ... 475,723 5,540,912 935,498 11,030,203
Reinvested distributions .... 26,553 307,955 53,038 624,410
Cost of shares redeemed ..... (506,188) (5,834,572) (639,318) (7,518,842)
------------ ------------ ------------ ------------
Net change .............. (3,912) 14,295 349,218 4,135,771
------------ ------------ ------------ ------------
CLASS Y SHARES:
Proceeds from shares sold ... 101,395 1,172,761 359,896 4,241,025
Reinvested distributions .... 11,724 135,928 26,724 314,898
Cost of shares redeemed ..... (92,304) (1,070,898) (553,321) (6,480,700)
------------ ------------ ------------ ------------
Net change .............. 20,815 237,791 (166,701) (1,924,777)
------------ ------------ ------------ ------------
Total transactions in Trust
shares ...................... (232,506) $ (2,589,459) 1,317,786 $ 15,650,122
============ ============ ============ ============
8. TRUSTEES' FEES AND EXPENSES
During the previous fiscal year ended March 31, 2004 there were 9
Trustees, one of which is affiliated with the Administrator and is not paid any
trustee fees. Each Trustee was paid during the year fees at the annual average
rate of $15,900 for carrying out their responsibilities and attendance at
regularly scheduled quarterly Board Meetings and meetings of the independent
trustees held prior to each quarterly Board Meeting. If additional or special
meetings are scheduled for the Trust, separate meeting fees are paid for each
such meeting to those Trustees in attendance. The Trust also covers Trustees'
expenses such as travel, accomodations, and meals incurred in connection with
attendance at regularly scheduled or special Board Meetings and at the Annual
Meeting and outreach meetings of Shareholders. For the previous fiscal year
ended March 31, 2004, such meeting-related expenses averaged approximately
$3,200 per Trustee.
9. SECURITIES TRADED ON A WHEN-ISSUED BASIS
The Trust may purchase or sell securities on a when-issued basis.
When-issued transactions arise when securities are purchased or sold by the
Trust with payment and delivery taking place in the future in order to secure
what is considered to be an advantageous price and yield to the Trust at the
time of entering into the transaction. Beginning on the date the Trust enters
into a when-issued transaction, cash or other liquid securities are segregated
in an amount equal to or greater than the value of the when-issued transaction.
These transactions are subject to market fluctuations and their current value is
determined in the same manner as for other securities.
10. INCOME TAX INFORMATION AND DISTRIBUTIONS
The Trust declares dividends daily from net investment income and makes
payments monthly in additional shares at the net asset value per share, in cash,
or in a combination of both, at the shareholder's option. Net realized capital
gains, if any, are distributed annually and are taxable.
The Trust intends to maintain, to the maximum extent possible, the
tax-exempt status of interest payments received from portfolio municipal
securities in order to allow dividends paid to shareholders from net investment
income to be exempt from regular Federal and State of Hawaii income taxes.
However, due to differences between financial statement reporting and Federal
income tax reporting requirements, distributions made by the Trust may not be
the same as the Trust's net investment income, and/or net realized securities
gains. Further, a small portion of the dividends may, under some circumstances,
be subject to taxes at ordinary income and/or capital gain rates. For certain
shareholders, some dividend income may, under some circumstances, be subject to
the alternative minimum tax.
The tax character of distributions:
YEAR ENDED MARCH 31,
2004 2003
----------- -----------
Net tax-exempt income $28,703,852 $29,054,293
Ordinary income 1,096 7,544
----------- -----------
$28,704,948 $29,061,837
=========== ===========
As of March 31, 2004, the components of distributable earnings on a tax
basis were as follows:
Undistributed long term capital gain $ 440,517
Unrealized appreciation 51,650,046
Undistributed tax-exempt income 2,007,730
-----------
$54,098,293
===========
HAWAIIAN TAX-FREE TRUST
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
CLASS A
------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/04 ---------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- ------- ------- ------- ------- -------
Net asset value, beginning of period ................ $ 11.83 $ 11.73 $ 11.26 $ 11.37 $ 10.94 $ 11.65
------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income+ ......................... 0.23 0.46 0.48 0.51 0.54 0.56
Net gain (loss) on securities (both realized
and unrealized) ............................ (0.08) 0.10 0.47 (0.10) 0.43 (0.65)
------- ------- ------- ------- ------- -------
Total from investment operations ............... 0.15 0.56 0.95 0.41 0.97 (0.09)
------- ------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income ........... (0.23) (0.46) (0.48) (0.52) (0.54) (0.55)
Distributions from capital gains ............... -- -- -- -- -- (0.07)
------- ------- ------- ------- ------- -------
Total distributions ............................ (0.23) (0.46) (0.48) (0.52) (0.54) (0.62)
------- ------- ------- ------- ------- -------
Net asset value, end of period ...................... $ 11.75 $ 11.83 $ 11.73 $ 11.26 $ 11.37 $ 10.94
======= ======= ======= ======= ======= =======
Total return (not reflecting sales charge) .......... 1.31%* 4.83% 8.57% 3.62% 9.14% (0.64)%
Ratios/supplemental data
Net assets, end of period (in millions) ........ $ 686 $ 694 $ 675 $ 625 $ 593 $ 575
Ratio of expenses to average net assets ........ 0.74%** 0.73% 0.71% 0.72% 0.74% 0.73%
Ratio of net investment income to average
net assets ................................. 3.95%** 3.89% 4.15% 4.51% 4.88% 4.99%
Portfolio turnover rate ........................ 4%* 8% 5% 13% 11% 4%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ........ 0.74%** 0.72% 0.70% 0.70% 0.72% 0.71%
- ----------
+ Per share amounts have been calculated using the monthly average shares
method.
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
CLASS C
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/04 --------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period .......... $11.82 $11.73 $11.26 $11.36 $10.93 $11.65
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income + ................... 0.18 0.36 0.38 0.41 0.45 0.47
Net gain (loss) on securities (both
realized and unrealized) .............. (0.08) 0.09 0.48 (0.08) 0.43 (0.66)
------ ------ ------ ------ ------ ------
Total from investment operations .......... 0.10 0.45 0.86 0.33 0.88 (0.19)
------ ------ ------ ------ ------ ------
Less distributions (note 10):
Dividends from net investment income ...... (0.18) (0.36) (0.39) (0.43) (0.45) (0.46)
Distributions from capital gains .......... -- -- -- -- -- (0.07)
------ ------ ------ ------ ------ ------
Total distributions ....................... (0.18) (0.36) (0.39) (0.43) (0.45) (0.53)
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $11.74 $11.82 $11.73 $11.26 $11.36 $10.93
====== ====== ====== ====== ====== ======
Total return (not reflecting sales charge) .... 0.90%* 3.91% 7.70% 2.91% 8.28% (1.53)%
Ratios/supplemental data
Net assets, end of period (in millions) ... $ 37.9 $ 38.2 $ 33.8 $ 24.1 $ 15.0 $ 11.7
Ratio of expenses to average net assets ... 1.54%** 1.54% 1.51% 1.51% 1.54% 1.53%
Ratio of net investment income to
average net assets .................... 3.16%** 3.08% 3.33% 3.68% 4.06% 4.18%
Portfolio turnover rate ................... 4%* 8% 5% 13% 11% 4%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ... 1.54%** 1.52% 1.50% 1.50% 1.51% 1.51%
CLASS Y
-----------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED MARCH 31,
9/30/04 --------------------------------------------------
(UNAUDITED) 2004 2003 2002 2001 2000
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period .......... $11.84 $11.75 $11.28 $11.39 $10.95 $11.67
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income + ................... 0.24 0.48 0.50 0.52 0.55 0.58
Net gain (loss) on securities (both
realized and unrealized) .............. (0.07) 0.09 0.47 (0.09) 0.45 (0.66)
------ ------ ------ ------ ------ ------
Total from investment operations .......... 0.17 0.57 0.97 0.43 1.00 (0.08)
------ ------ ------ ------ ------ ------
Less distributions (note 10):
Dividends from net investment income ...... (0.24) (0.48) (0.50) (0.54) (0.56) (0.57)
Distributions from capital gains .......... -- -- -- -- -- (0.07)
------ ------ ------ ------ ------ ------
Total distributions ....................... (0.24) (0.48) (0.50) (0.54) (0.56) (0.64)
------ ------ ------ ------ ------ ------
Net asset value, end of period ................ $11.77 $11.84 $11.75 $11.28 $11.39 $10.95
====== ====== ====== ====== ====== ======
Total return (not reflecting sales charge) .... 1.50%* 4.97% 8.77% 3.80% 9.44% (0.56)%
Ratios/supplemental data
Net assets, end of period (in millions) ... $ 23.6 $ 23.5 $ 25.2 $ 19.3 $ 7.9 $ 2.9
Ratio of expenses to average net assets ... 0.54%** 0.53% 0.51% 0.52% 0.54% 0.53%
Ratio of net investment income to
average net assets .................... 4.15%** 4.09% 4.33% 4.69% 5.00% 5.15%
Portfolio turnover rate ................... 4%* 8% 5% 13% 11% 4%
The expense ratios after giving effect to the expense offset for uninvested cash balances were:
Ratio of expenses to average net assets ... 0.54%** 0.52% 0.50% 0.50% 0.51% 0.51%
- ----------
+ Per share amounts have been calculated using the monthly average shares
method.
* Not annualized.
** Annualized.
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
ANALYSIS OF EXPENSES (UNAUDITED)
As a shareholder of the Trust, you may incur two types of costs: (1)
transaction costs, including front-end sales charges with respect to Class A
shares or contingent deferred sales charges ("CDSC") with respect to Class C
shares; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees; and other Trust expenses. The tables below are intended to
help you understand your ongoing costs (in dollars) of investing in the Trust
and to compare these costs with the ongoing costs of investing in other mutual
funds.
The tables below are based on an investment of $1,000 invested on April 1,
2004 and held for the six months ended September 30, 2004.
ACTUAL EXPENSES
This table provides information about actual account values and actual
expenses. You may use the information provided in this table, together with the
amount you invested, to estimate the expenses that you paid over the period. To
estimate the expenses you paid on your account, divide your ending account value
by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6),
then multiply the result by the number under the heading entitled "Expenses Paid
During the Period".
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004
ACTUAL
TOTAL RETURN BEGINNING ENDING EXPENSES
WITHOUT ACCOUNT ACCOUNT PAID DURING
SALES CHARGES(1) VALUE VALUE THE PERIOD(2)
- --------------------------------------------------------------------------------
Class A 1.31% $1,000.00 $1,013.10 $ 3.73
- --------------------------------------------------------------------------------
Class C 0.90% $1,000.00 $1,009.00 $ 7.76
- --------------------------------------------------------------------------------
Class Y 1.50% $1,000.00 $1,015.00 $ 2.73
- --------------------------------------------------------------------------------
(1) ASSUMES REINVESTMENT OF ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS, IF
ANY, AT NET ASSET VALUE AND DOES NOT REFLECT THE DEDUCTION OF THE
APPLICABLE SALES CHARGES WITH RESPECT TO CLASS A SHARES OR THE APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ("CDSC") WITH RESPECT TO CLASS C SHARES.
TOTAL RETURN IS NOT ANNUALIZED, AS IT MAY NOT BE REPRESENTATIVE OF THE
TOTAL RETURN FOR THE YEAR.
(2) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.74%, 1.54% AND
0.54% FOR THE TRUST'S CLASS A,C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/365 (TO
REFLECT THE ONE-HALF YEAR PERIOD).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on the actual expense ratio and an assumed rate of
return of 5.00% per year before expenses, which is not the Trust's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use the information provided in this table to compare the ongoing costs of
investing in the Trust and other mutual funds. To do so, compare this 5.00%
hypothetical example relating to the Trust with the 5.00% hypothetical examples
that appear in the shareholder reports of other mutual funds.
Please note that the expenses shown in the table below are meant to
highlight your ongoing costs only and do not reflect any transactional costs,
with respect to Class A shares. The example does not reflect the deduction of
the applicable sales charges or contingent deferred sales charges ("CDSC") with
respect to Class C shares. Therefore, the table is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different mutual funds. In addition, if these transaction costs were included,
your costs would have been higher.
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004
HYPOTHETICAL
ANNUALIZED BEGINNING ENDING EXPENSES
TOTAL ACCOUNT ACCOUNT PAID DURING
RETURN VALUE VALUE THE PERIOD(1)
- --------------------------------------------------------------------------------
Class A 5.00% $1,000.00 $1,021.36 $ 3.75
- --------------------------------------------------------------------------------
Class C 5.00% $1,000.00 $1,017.35 $ 7.79
- --------------------------------------------------------------------------------
Class Y 5.00% $1,000.00 $1,022.36 $ 2.74
- --------------------------------------------------------------------------------
(1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.74%, 1.54% AND
0.54% FOR THE TRUST'S CLASS A, C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/365 (TO
REFLECT THE ONE-HALF YEAR PERIOD).
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PROXY VOTING RECORD. The Trust does not invest in equity securities.
Accordingly, there were no matters relating to a portfolio security considered
at any shareholder meeting held during the 12 months ended June 30, 2004 with
respect to which the Trust was entitled to vote. Applicable regulations require
us to inform you that the foregoing proxy voting information is available on the
SEC website at http://www.sec.gov.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHAREHOLDER MEETING RESULTS (UNAUDITED)
The Annual Meeting of Shareholders of Hawaiian Tax-Free Trust (the
"Trust") was held on September 15, 2004. The holders of shares representing 80%
of the total net asset value of the shares entitled to vote were present in
person or by proxy. At the meeting, the following matters were voted upon and
approved by the shareholders (the resulting votes are presented below).
1. To elect Trustees.
Number of Votes:
TRUSTEE FOR WITHHELD
------- --- --------
Thomas W. Courtney 50,588,674 227,688
Richard W. Gushman, II 50,552,125 264,236
Diana P. Herrmann 50,615,791 200,570
Stanley W. Hong 50,482,350 334,012
Theodore T. Mason 50,615,560 200,801
Russell K. Okata 50,146,502 669,860
Douglas Philpotts 50,552,277 264,084
Oswald K. Stender 50,428,442 387,920
2. To ratify the selection of KPMG LLP as the Trust's independent registered
public accounting firm.
Number of Votes:
FOR AGAINST ABSTAIN
--- ------- -------
50,100,013 130,176 586,172
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INFORMATION AVAILABLE (UNAUDITED)
Much of the information that the funds in the Aquilasm Group of Funds
produce is automatically sent to you and all other shareholders. Specifically,
you are routinely sent the entire list of portfolio securities of your fund
twice a year in the semi-annual and annual reports you receive. You should know,
however, that we prepare, and have available, portfolio listings at the end of
each quarter.
Whenever you may be interested in seeing a listing of your Trust's
portfolio other than in your shareholder reports, please check our website
(www.aquilafunds.com) or call us at 1-800-437-1020.
- --------------------------------------------------------------------------------
(THIS PAGE INTENTIONALLY LEFT BLANK)
FOUNDERS
Lacy B. Herrmann, Chairman Emeritus
AQUILA MANAGEMENT CORPORATION
ADMINISTRATOR
AQUILA INVESTMENT MANAGEMENT LLC
380 Madison Avenue, Suite 2300
New York, New York 10017
INVESTMENT ADVISER
ASSET MANAGEMENT GROUP of BANK of HAWAII
P.O. Box 3170
Honolulu, Hawaii 96802
BOARD OF TRUSTEES
Theodore T. Mason, Chairman
Thomas W. Courtney
Richard W. Gushman, II
Diana P. Herrmann
Stanley W. Hong
Russell K. Okata
Douglas Philpotts
Oswald K. Stender
OFFICERS
Diana P. Herrmann, Vice Chair and President
Sherri Foster, Senior Vice President
Stephen J. Caridi, Vice President
Joseph P. DiMaggio, Chief Financial Officer and Treasurer
Edward M.W. Hines, Secretary
DISTRIBUTOR
AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017
CUSTODIAN
BANK ONE TRUST COMPANY, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240
TRANSFER AND SHAREHOLDER SERVICING AGENT
PFPC Inc.
760 Moore Road
King of Prussia, Pennsylvania 19406
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
757 Third Avenue
New York, New York 10017
Further information is contained in the Prospectus, which must precede
or accompany
this report.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls
and procedures (as defined in Rule 30a-2(c) under the Investment Company
Act of 1940) as of a date within 90 days of the fling of this report, the
registrant's chief financial and executive officers have concluded that the
disclosure controls and procedures of the registrant are appropriately
designed to ensure that information required to be disclosed in the
registrant's reports that are filed under the Securities Exchange Act of
1934 are accumulated and communicated to registrant's management, including
its principal executive officer(s) and principal financial officer(s), to
allow timely decisions regarding required disclosure and is recorded,
processed, summarized and reported, within the time periods specified in
the rules and forms adopted by the Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal controls
or in other factors that could significantly affect registrant's internal
controls subsequent to the date of the most recent evaluation, including no
significant deficiencies or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(a)(2) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(a) under the Investment Company Act of1940.
(c) Certifications of principal executive officer and principal financial
(d) officer as required by Rule 30a-2(b) under the Investment Company Act of
(e) 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly authorized.
HAWAIIAN TAX-FREE TRUST
By: /s/ Diana P. Herrmann
- ---------------------------------
Vice Chair, Trustee and President
December 6, 2004
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Chief Financial Officer and Treasurer
December 6, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Diana P. Herrmann
- ---------------------------------
Diana P. Herrmann
Vice Chair and President
December 6, 2004
By: /s/ Joseph P. DiMaggio
- -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
December 6, 2004
HAWAIIAN TAX-FREE TRUST
EXHIBIT INDEX
(a) (2)Certifications of principal executive officer
and principal financial officer as required by Rule 30a-2(a)
under the Investment Company Act of 1940.
(b) Certification of chief executive officer and chief financial
officer as required by Rule 30a-2(b) of the Investment Company Act
of 1940.