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: 9/30/08

FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS

Semi-Annual
Report

September 30, 2008

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] (R)

[LOGO OF THE AQUILA
GROUP OF FUNDS: ONE OF THE
AN EAGLE'S HEAD] AQUILA GROUP OF FUNDS(SM)

SERVING HAWAII INVESTORS FOR MORE THAN TWO DECADES

HAWAIIAN TAX-FREE TRUST

"PROPER ASSET ALLOCATION -
A STRATEGY FOR ALL SEASONS"

November, 2008

The market has definitely been volatile enough recently to cause even the
most seasoned investor to ask, "What should I do now?"

We believe you will be in a better position to weather this, or any,
economic storm, if your portfolio is built with a strong foundation. In short,
is your portfolio properly allocated based on your specific needs?

As you hopefully already know, asset allocation is an investment strategy
that strives to balance risk and reward by diversifying assets according to your
specific desires. These include:

o investment time horizon (specifically your age and retirement
objectives);

o risk threshold (how much of your investment capital you are willing
to lose during a given time frame);

o financial situation (your wealth, income, expenses, tax bracket,
liquidity needs, etc.); and

o goals (the financial goals you and your family want to achieve).

Since the three main asset classes - equities, fixed-income, and cash/cash
equivalents - have different levels of risk and return, each is expected to
behave differently over time. The objective of asset allocation is to create a
diversified portfolio with an acceptable level of risk and the highest possible
return given that level of risk.

Although there is no simple formula that can find the right asset
allocation for every individual, the consensus among most financial
professionals is that asset allocation is one of the most important decisions
that investors make.

NOT A PART OF THE SEMI-ANNUAL REPORT

The way you allocate your investment among stocks, bonds, and cash/cash
equivalents will be the principal determinants of your investment results -
secondary to your selection of individual securities.

Once you and your financial professional have developed an appropriate
asset allocation for your portfolio, we believe that changes should be made
based on need, not on scary headlines.

A properly constructed portfolio with sound asset allocation should be in
a good position to weather all seasons.

Sincerely,

/s/ Lacy B. Herrmann /s/ Diana P. Herrmann

Lacy B. Herrmann Diana P. Herrmann
Founder and Chairman Emeritus Vice Chair and President

NOT A PART OF THE SEMI-ANNUAL REPORT

HAWAIIAN TAX-FREE TRUST
SCHEDULE OF INVESTMENTS
SEPTEMBER 30,2008 (UNAUDITED)

RATING
PRINCIPAL MOODY'S/
AMOUNT MUNICIPAL BONDS (98.1%) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

GENERAL OBLIGATION BONDS (56.9%):
--------------------------------------------------------
City and County of Honolulu, Hawaii, FGIC Insured
Series C
$ 3,130,000 5.125%, 07/01/11 ....................................... Aa2/AA $ 3,210,003
City and County of Honolulu, Hawaii, FGIC Insured
8,270,000 5.000%, 07/01/21 ....................................... Aa2/AA 8,230,800
City and County of Honolulu, Hawaii, FGIC Insured
7,720,000 5.000%, 07/01/21 ....................................... Aa2/AA 7,683,407
City and County of Honolulu, Hawaii, MBIA Insured
8,500,000 5.000%, 07/01/17 ....................................... Aa2/AA 8,816,965
City and County of Honolulu, Hawaii, Series A,
FGIC Insured
1,715,000 6.000%, 01/01/11 ....................................... Aa2/AA 1,829,631
5,000 5.750%, 04/01/11 ....................................... Aa2/AA 5,329
1,580,000 6.000%, 01/01/12 ....................................... Aa2/AA 1,714,205
3,025,000 5.750%, 04/01/13 ....................................... Aa2/AA 3,301,848
City and County of Honolulu, Hawaii, Series A,
FSA Insured
2,500,000 5.000%, 09/01/09 ....................................... Aaa/AAA 2,560,225
City and County of Honolulu, Hawaii, Series A,
FSA Insured
3,000,000 5.000%, 07/01/29 ....................................... Aaa/AAA 2,826,180
City and County of Honolulu, Hawaii , Series A,
FSA Insured, Prerefunded 09/01/11 @100,
Collateral: U.S. Treasury Obligations & Resolution
Funding Corporation
3,500,000 5.375%, 09/01/18 ....................................... Aaa/AAA 3,721,935
2,000,000 5.125%, 09/01/20 ....................................... Aaa/AAA 2,113,000
City and County of Honolulu, Hawaii, Series A,
MBIA Insured
5,000,000 5.000%, 07/01/21 ....................................... Aa2/AA 5,013,800
5,000,000 5.000%, 07/01/22 ....................................... Aa2/AA 4,960,400
5,000,000 5.000%, 07/01/26 ....................................... Aa2/AA 4,839,600

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

City and County of Honolulu, Hawaii, Series A,
MBIA Insured, Prerefunded 03/01/13 @100,
Collateral: U.S. Government Securities
$ 1,885,000 5.250%, 03/01/15 ....................................... Aaa/AAA $ 2,034,688
3,005,000 5.250%, 03/01/17 ....................................... Aaa/AAA 3,243,627
1,255,000 5.250%, 03/01/18 ....................................... Aaa/AAA 1,354,660
City and County of Honolulu, Hawaii, 1993 Series A,
FGIC - TCRS Insured, Escrowed to Maturity,
Collateral: U.S. Government Securities
4,110,000 6.000%, 01/01/11 ....................................... #Aaa/AAA 4,391,206
920,000 6.000%, 01/01/12 ....................................... #Aaa/AAA 1,001,107
City and County of Honolulu, Hawaii 1994 Series A,
FGIC Insured, Escrowed to Maturity, Collateral: U.S.
Government Securities
3,995,000 5.750%, 04/01/11 ....................................... #Aaa/NR 4,274,051
775,000 5.750%, 04/01/13 ....................................... Aaa/AAA 852,012
City and County of Honolulu, Hawaii Refunded -
1995 Series A, Escrowed to Maturity, MBIA
Insured, Collateral: U.S. Government Securities
1,355,000 6.000%, 11/01/09 ....................................... #Aaa/AAA 1,408,035
860,000 6.000%, 11/01/09 ....................................... Aaa/AAA 893,660
1,090,000 6.000%, 11/01/10 ....................................... Aaa/AAA 1,164,687
410,000 6.000%, 11/01/10 ....................................... #Aaa/AAA 438,093
City and County of Honolulu, Hawaii, 2003- Series A,
MBIA Insured, Unrefunded Portion
1,115,000 5.250%, 03/01/15 ....................................... Aa2/AA 1,186,572
1,775,000 5.250%, 03/01/17 ....................................... Aa2/AA 1,860,928
745,000 5.250%, 03/01/18 ....................................... Aa2/AA 775,560
City and County of Honolulu, Hawaii , Series B,
FGIC Insured, Unrefunded Portion
7,310,000 5.500%, 10/01/11 ....................................... Aa2/AA 7,816,656
City and County of Honolulu, Hawaii, Series B, FSA
Insured, Custodial Receipts, Unrefunded Portion
3,955,000 8.000%, 10/01/10 ....................................... Aaa/AAA 4,358,529

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

City and County of Honolulu, Hawaii, Series B, FGIC
Insured, Prerefunded 07/01/09 @101, Collateral:
U.S. Treasury & Agency Obligations
$ 2,595,000 5.125%, 07/01/15 ....................................... Aaa/AAA $ 2,674,225
City and County of Honolulu, Hawaii, Series B, FGIC
Insured, Prerefunded to 07/01/09 @101, Collateral:
U.S. Government Securities
4,490,000 5.000%, 07/01/19 ....................................... Aaa/AAA 4,622,949
1,395,000 5.000%, 07/01/20 ....................................... Aaa/AAA 1,436,306
City and County of Honolulu, Hawaii, Series C,
Prerefunded pending 7/1/09 @101, FGIC Insured
7,750,000 5.125%, 07/01/14 ....................................... Aaa/AAA 7,926,700
2,510,000 5.000%, 07/01/18 ....................................... Aaa/AAA 2,556,535
City and County of Honolulu, Hawaii, Series C,
FGIC Insured
2,750,000 5.125%, 07/01/12 ....................................... Aa2/AA 2,816,990
City and County of Honolulu, Hawaii, Series C,
MBIA Insured
6,740,000 5.000%, 07/01/18 ....................................... Aa2/AA 6,961,409
City and County of Honolulu, Hawaii, Series D,
MBIA Insured
3,750,000 5.000%, 07/01/19 ....................................... Aa2/AA 3,835,875
6,080,000 5.000%, 07/01/21 ....................................... Aa2/AA 6,096,781
City and County of Honolulu, Hawaii, Series F,
FGIC Insured
1,000,000 5.250%, 07/01/19 ....................................... Aa2/AA 1,037,250
5,335,000 5.250%, 07/01/20 ....................................... Aa2/AA 5,477,711
City and County of Honolulu, Hawaii, Water Utility
Refunding and Improvement, Escrowed to Maturity,
FGIC Insured, Collateral: U.S. Government Securities
1,125,000 6.000%, 12/01/12 ....................................... Aaa/AAA 1,246,759
1,050,000 6.000%, 12/01/15 ....................................... Aaa/AAA 1,194,984
County of Hawaii, MBIA Insured
2,010,000 5.250%, 07/15/21 ....................................... A1/AA 2,039,848

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

County of Hawaii, FGIC Insured, Prerefunded
07/15/11 @100
$ 1,065,000 5.500%, 07/15/14 ....................................... A1/A+ $ 1,134,651
1,340,000 5.500%, 07/15/15 ....................................... A1/A+ 1,427,636
County of Hawaii, Series A, CIFG Insured
1,850,000 5.000%, 07/15/20 ....................................... A1/A+ 1,858,140
County of Hawaii, Series A, FGIC Insured
2,500,000 5.550%, 05/01/09 ....................................... A1/A+ 2,539,650
4,905,000 5.600%, 05/01/11 ....................................... A1/A+ 5,218,969
1,000,000 5.600%, 05/01/12 ....................................... A1/A+ 1,077,690
1,000,000 5.600%, 05/01/13 ....................................... A1/A+ 1,088,530
County of Hawaii Series A, FGIC Insured, Prerefunded
to 07/15/11 @ 100 Collateral: State and Local
Government Securities
1,025,000 5.125%, 07/15/20 ....................................... A1/A+ 1,081,857
1,465,000 5.500%, 07/15/16 ....................................... Aaa/AAA 1,560,811
County of Hawaii, Series A, FSA Insured, Prerefunded
to 05/15/09 @101, Collateral State & Local
Government Series 100%
1,000,000 5.400%, 05/15/15 ....................................... Aaa/AAA 1,029,020
1,470,000 5.625%, 05/15/18 ....................................... Aaa/AAA 1,514,673
County of Hawaii, Series A, FSA Insured
1,000,000 5.000%, 07/15/16 ....................................... Aaa/AAA 1,040,880
2,000,000 5.000%, 07/15/17 ....................................... Aaa/AAA 2,063,320
1,000,000 5.000%, 07/15/18 ....................................... Aaa/AAA 1,024,260
County of Kauai, Hawaii, MBIA Insured, Prerefunded
08/01/11 @100, Collateral: State & Local
Government Series 100%
140,000 5.625%, 08/01/13 ....................................... Aaa/AAA 150,359
560,000 5.625%, 08/01/14 ....................................... Aaa/AAA 601,434
355,000 5.625%, 08/01/17 ....................................... Aaa/AAA 381,266
345,000 5.625%, 08/01/18 ....................................... Aaa/AAA 370,527
805,000 5.500%, 08/01/20 ....................................... Aaa/AAA 861,849
County of Kauai, Hawaii, MBIA Insured,
Unrefunded Portion
985,000 5.625%, 08/01/13 ....................................... A1/AA 1,044,386
1,060,000 5.625%, 08/01/14 ....................................... A1/AA 1,120,091

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

County of Kauai, Hawaii, MBIA Insured,
Unrefunded Portion (continued)
$ 680,000 5.625%, 08/01/17 ....................................... A1/AA $ 713,871
655,000 5.625%, 08/01/18 ....................................... A1/AA 685,831
1,555,000 5.500%, 08/01/20 ....................................... A1/AA 1,584,172
County of Kauai, Hawaii, Series A, FGIC Insured
1,000,000 5.000%, 08/01/23 ....................................... A1/A+ 959,930
1,555,000 5.000%, 08/01/24 ....................................... A1/A+ 1,483,408
1,500,000 5.000%, 08/01/25 ....................................... A1/A+ 1,415,775
County of Kauai, Hawaii, Series A, FGIC Insured,
Prerefunded 08/01/10 @100, Collateral: State &
Local Government Series 100%
1,010,000 6.250%, 08/01/14 ....................................... Aaa/AAA 1,076,468
1,000,000 6.250%, 08/01/15 ....................................... Aaa/AAA 1,065,810
1,000,000 6.250%, 08/01/16 ....................................... Aaa/AAA 1,065,810
1,275,000 6.250%, 08/01/17 ....................................... Aaa/AAA 1,358,908
1,480,000 6.250%, 08/01/20 ....................................... A3/A+ 1,577,399
County of Kauai, Hawaii, 2005-Series A, FGIC Insured
1,560,000 5.000%, 08/01/16 ....................................... A1/A+ 1,633,320
2,010,000 5.000%, 08/01/17 ....................................... A1/A+ 2,079,144
2,060,000 5.000%, 08/01/18 ....................................... A1/A+ 2,110,120
1,075,000 5.000%, 08/01/19 ....................................... A1/A+ 1,090,448
County of Kauai, Hawaii Refunding Bonds, Series
B & C, AMBAC Insured
1,300,000 5.950%, 08/01/10 ....................................... Aa3/AA 1,374,802
County of Maui, Hawaii, FGIC Insured
1,125,000 5.250%, 03/01/18 ....................................... Aa2/AA 1,147,376
County of Maui, Hawaii, MBIA Insured
1,250,000 3.800%, 03/01/16 ....................................... Aa2/AA 1,226,200
1,105,000 5.000%, 03/01/19 ....................................... Aa2/AA 1,126,183
County of Maui, Hawaii, 2001 - Series A, MBIA
Insured, Partially Prerefunded 03/01/11 @100,
Collateral: U.S. Government Securities
465,000 5.500%, 03/01/18 ...................................... Aaa/AAA 494,286
County of Maui, Hawaii, Series A, MBIA Insured,
Unrefunded Balance
535,000 5.500%, 03/01/18 ...................................... Aa2/AA 553,875

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

County of Maui, Hawaii, 2002 - Series A, MBIA
Insured, Prerefunded to 03/01/12 @100, Collateral:
U.S. Government Securities
$ 1,105,000 5.250%, 03/01/15 ....................................... Aaa/AAA $ 1,182,416
1,205,000 5.250%, 03/01/16 ....................................... Aaa/AAA 1,289,422
1,000,000 5.250%, 03/01/18 ....................................... Aaa/AAA 1,070,060
1,750,000 5.250%, 03/01/19 ....................................... Aaa/AAA 1,872,605
1,000,000 5.000%, 03/01/20 ....................................... Aaa/AAA 1,062,030
County of Maui, Hawaii, Series B, FGIC Insured
1,065,000 5.250%, 03/01/11 ....................................... Aa2/AA 1,122,595
County of Maui, Hawaii, Series C, FGIC Insured
1,020,000 5.250%, 03/01/16 ....................................... Aa2/AA 1,055,404
1,250,000 5.250%, 03/01/20 ....................................... Aa2/AA 1,264,025
Puerto Rico Commonwealth Refunding Public
Improvement Series A
5,000,000 5.000%, 07/01/10 ....................................... Baa3/BBB- 5,085,650
Puerto Rico Commonwealth Public Improvement,
MBIA Insured, Econ. Defeased to call, 7/1/2010
@100, Collateral: Agencies
1,800,000 5.250%, 07/01/13 ....................................... Aaa/AAA 1,866,996
Puerto Rico Commonwealth Public Improvement,
Series CR, FSA Insured
1,060,000 5.250%, 07/01/17 ....................................... Aaa/AAA 1,089,839
State of Hawaii, AMBAC Insured
5,000,000 5.000%, 07/01/16 ....................................... Aa2/AA 5,307,900
State of Hawaii, FGIC Insured
2,330,000 6.000%, 12/01/12 ....................................... Aa2/AA 2,562,138
State of Hawaii, MBIA Insured
5,000,000 5.000%, 10/01/22 ....................................... Aa2/AA 4,985,050
State of Hawaii, Series BZ, FGIC Insured
3,700,000 6.000%, 10/01/11 ....................................... Aa2/AA 4,008,987
3,500,000 6.000%, 10/01/12 ....................................... Aa2/AA 3,845,450
State of Hawaii, Series CA, FGIC Insured
2,000,000 5.750%, 01/01/11 ....................................... Aa2/AA 2,122,900
State of Hawaii, Series CH
1,000,000 4.750%, 11/01/11 ....................................... Aa2/AA 1,050,460

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

State of Hawaii, Series CL, FGIC Insured
$ 2,305,000 6.000%, 03/01/11 ....................................... Aa2/AA $ 2,466,834
State of Hawaii, Series CM, FGIC Insured
3,000,000 6.500%, 12/01/15 ....................................... Aa2/AA 3,456,750
State of Hawaii, Series CS, MBIA Insured
5,500,000 5.000%, 04/01/09 ....................................... Aa2/AA 5,570,400
State of Hawaii, Series CU, Prerefunded 10/01/10
@100, MBIA Insured, Collateral: State & Local
Government Series 100%
3,000,000 5.600%, 10/01/19 ....................................... Aaa/AAA 3,174,420
State of Hawaii, Series CV, FGIC Insured
11,000,000 5.000%, 08/01/20 ....................................... Aa2/AA 11,062,590
5,000,000 5.250%, 08/01/21 ....................................... Aa2/AA 5,070,350
1,015,000 5.000%, 08/01/21 ....................................... Aa2/AA 1,016,259
State of Hawaii, Series CX, FSA Insured
8,725,000 5.500%, 02/01/13 ....................................... Aaa/AAA 9,296,487
3,075,000 5.500%, 02/01/16 ....................................... Aaa/AAA 3,217,188
2,500,000 5.500%, 02/01/21 ....................................... Aaa/AAA 2,568,525
State of Hawaii, Series CZ, FSA Insured Prerefunded
to 07/01/12 @100, Collateral: U.S. Government
Securities
3,000,000 5.250%, 07/01/17 ....................................... Aaa/AAA 3,220,740
State of Hawaii, Series DE, MBIA Insured
16,000,000 5.000%, 10/01/21 ....................................... Aa2/AA 16,082,240
2,500,000 5.000%, 10/01/24 ....................................... Aa2/AA 2,459,450
State of Hawaii, Series DF, AMBAC Insured
3,500,000 5.000%, 07/01/18 ....................................... Aa2/AA 3,625,300
10,000,000 5.000%, 07/01/22 ....................................... Aa2/AA 10,010,600
5,000,000 5.000%, 07/01/23 ....................................... Aa2/AA 4,968,700
10,000,000 5.000%, 07/01/24 ....................................... Aa2/AA 9,891,900
5,000,000 5.000%, 07/01/25 ....................................... Aa2/AA 4,921,650
State of Hawaii, Series DG, AMBAC Insured,
Refunding
2,000,000 5.000%, 07/01/17 ....................................... Aa2/AA 2,097,800
State of Hawaii, Series DI, FSA Insured
5,000,000 5.000%, 03/01/20 ....................................... Aaa/AAA 5,067,750
2,750,000 5.000%, 03/01/21 ....................................... Aaa/AAA 2,758,332
5,000,000 5.000%, 03/01/22 ....................................... Aaa/AAA 4,961,200

RATING
PRINCIPAL MOODY'S/
AMOUNT GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

State of Hawaii, Series DJ, AMBAC Insured
$ 5,000,000 5.000%, 04/01/23 ....................................... Aa2/AA $ 4,919,050
State of Hawaii, Series DJ, FSA-CR AMBAC Insured
5,000,000 5.000%, 04/01/23 ....................................... AAA/AAA 4,944,150
State of Hawaii, Series DD MBIA Insured
5,000,000 5.250%, 05/01/23 ....................................... Aa2/AA 5,033,400
State of Hawaii, Series DK
5,000,000 5.000%, 05/01/12 ....................................... Aa2/AA 5,305,300
7,000,000 5.000%, 05/01/19 ....................................... Aa2/AA 7,242,130
--------------
Total General Obligation Bonds ......................... 388,072,278
--------------
REVENUE BONDS (41.2%):
--------------------------------------------------------
Board of Regents, University of Hawaii, University
System, Series A, FGIC Insured, Prerefunded to
07/15/12 @100, Collateral: State & Local
Government Series 100%
2,000,000 5.500%, 07/15/19 ....................................... Aaa/AAA 2,162,580
2,000,000 5.500%, 07/15/21 ....................................... Aaa/AAA 2,162,580
2,000,000 5.500%, 07/15/22 ....................................... Aaa/AAA 2,162,580
3,000,000 5.500%, 07/15/29 ....................................... Aaa/AAA 3,243,870
Board of Regents, University of Hawaii, University
System, Series B, FSA Insured
1,110,000 5.250%, 10/01/12 ....................................... Aaa/AAA 1,172,204
1,000,000 5.250%, 10/01/13 ....................................... Aaa/AAA 1,050,210
1,140,000 5.250%, 10/01/14 ....................................... Aaa/AAA 1,190,308
1,395,000 5.250%, 10/01/15 ....................................... Aaa/AAA 1,448,931
City and County of Honolulu, Hawaii Board of Water
Supply & System, FSA Insured, Prerefunded 07/01/11
@100, Collateral: U.S. Government Securities
1,490,000 5.125%, 07/01/21 ....................................... Aaa/AAA 1,577,597
5,450,000 5.250%, 07/01/23 ....................................... Aaa/AAA 5,788,227
City and County of Honolulu, Hawaii Multi-Family
Revenue - Maunakea Apartments, FHA Insured
-GNMA Collateral, AMT
2,835,000 6.400%, 05/20/30 ....................................... Aaa/AAA 2,850,167

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

City and County of Honolulu, Hawaii Wastewater
Systems, FGIC Insured
$ 1,395,000 5.000%, 07/01/12 ...................................... Aa3/NR $ 1,427,922
City and County of Honolulu, Hawaii Wastewater
Systems, MBIA Insured
5,000,000 5.000%, 07/01/32 ....................................... A1/AA 4,607,850
City and County of Honolulu, Hawaii Wastewater
Systems, Series A, FGIC Insured
1,825,000 5.000%, 07/01/22 ....................................... Aa3/AA- 1,792,843
City and County of Honolulu, Hawaii Wastewater
Systems, Junior Series, FGIC Insured
2,000,000 5.250%, 07/01/18 ....................................... A1/NR 2,038,640
5,055,000 5.000%, 07/01/23 ....................................... A1/NR 4,925,996
City and County of Honolulu, Hawaii Wastewater
Systems, Senior Series, AMBAC Insured
1,810,000 5.500%, 07/01/11 ....................................... Aa3/NR 1,929,261
City & County of Honolulu, Hawaii Wastewater
Systems, Senior Series A, FGIC Insured
3,370,000 5.000%, 07/01/18 ....................................... Aa3/AA- 3,462,911
2,000,000 5.000%, 07/01/24 ....................................... Aa3/AA- 1,936,320
City & County of Honolulu, Hawaii Wastewater
Systems, First Bond Resolution, Series SR,
Prerefunded to 07/01/11 @100, Collateral: State
& Local Government Series 100%
1,065,000 5.500%, 07/01/16 ....................................... Aaa/NR 1,138,070
3,000,000 5.500%, 07/01/17 ....................................... Aaa/NR 3,205,830
2,310,000 5.500%, 07/01/18 ....................................... Aaa/NR 2,468,489
2,000,000 5.250%, 07/01/19 ....................................... Aaa/NR 2,124,120
City and County of Honolulu, Hawaii Wastewater
System First Bond Resolution, Senior Series A,
MBIA Insured
1,000,000 5.000%, 07/01/36 ....................................... Aa3/AA 917,920
City and County of Honolulu, Hawaii Wastewater
System Second Bond, Junior B-1 Remarket
09/15/06, MBIA Insured
1,340,000 5.000%, 07/01/18 ....................................... A1/AA 1,381,540
1,935,000 5.000%, 07/01/19 ....................................... A1/AA 1,973,448

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

City and County of Honolulu, Hawaii Wastewater
System Second Bond, Junior B-1 Remarket
09/15/06, MBIA Insured (continued)
$ 2,035,000 5.000%, 07/01/20 ....................................... A1/AA $ 2,053,050
19,715,000 5.000%, 07/01/32 ....................................... A1/AA 18,168,753
City and County of Honolulu, Hawaii Board of Water
Supply Water Systems, FSA Insured, Unrefunded
Balance
1,510,000 5.125%, 07/01/21 ....................................... Aaa/AAA 1,522,367
City and County of Honolulu, Hawaii MBIA Insured
10,000,000 5.000%, 07/01/31 ....................................... Aa3/AA 9,227,700
Department of Hawaiian Home Lands (State of
Hawaii), Prerefunded to 07/01/09 @101,
Collateral: U.S. Government Securities
1,525,000 4.350%, 07/01/10 ....................................... A3/NR 1,560,258
1,245,000 4.450%, 07/01/11 ....................................... A3/NR 1,270,498
Hawaii State Department of Budget and Finance,
AMBAC Insured, Weekly Reset VRDO*
20,000,000 6.000%, 07/01/28 ....................................... Aa3/AA 20,000,000
Hawaii State Department of Budget and Finance
Special Purpose Revenue Linked Certificates
(Kapiolani Health Care)
5,000,000 6.400%, 07/01/13 ....................................... Baa1/BBB+ 5,396,200
Hawaii State Department of Budget and Finance
Special Purpose Revenue (Mid Pacific Institute),
Radian Insured
2,000,000 4.625%, 01/01/31 ....................................... A3/BBB+ 1,622,760
1,210,000 4.625%, 01/01/36 ....................................... A3/BBB+ 948,858
Hawaii State Department of Budget and Finance
Special Purpose Revenue (Hawaiian Electric
Company, Inc.), Series A, AMBAC Insured
4,965,000 5.500%, 12/01/14 ....................................... Aa3/AA 5,129,044
Hawaii State Department of Budget and Finance
Special Purpose Revenue (Hawaiian Electric
Company, Inc.), Series A, MBIA Insured
4,125,000 4.950%, 04/01/12 ....................................... A2/AA 4,353,484

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

Hawaii State Department of Budget and Finance
Special Purpose Revenue Refunding (Hawaiian
Electric Company, Inc.) Series A-AMT, FGIC Insured
$ 5,000,000 4.800%, 01/01/25 ....................................... Baa1/BBB $ 4,213,850
Hawaii State Department of Budget and Finance of
the State of Hawaii Special Purpose Revenue
(Hawaiian Electric Company, Inc. and Subsidiaries
Projects), Series A-AMT, MBIA Insured
5,700,000 5.650%, 10/01/27 ....................................... A2/AA 5,290,056
Hawaii State Department of Budget & Finance,
Special Purpose Revenue (Hawaiian Electric Co.)
Series B-AMT, AMBAC Insured
1,000,000 5.750%, 12/01/18 ....................................... Aa3/AA 1,013,470
Hawaii State Department of Budget and Finance
Special Purpose Revenue (Hawaiian Electric
Company, Inc., and Subsidiaries Projects), Series
B-AMT, Syncora Guarantee Inc. Insured**
1,000,000 5.000%, 12/01/22 ....................................... Baa1/BBB 827,730
Hawaii State Department of Budget and Finance
Special Purpose Revenue (Hawaiian Electric
Company, Inc.), Series D-AMT, AMBAC Insured
2,500,000 6.150%, 01/01/20 ....................................... Aa3/AA 2,530,125
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage, Series
A-AMT, FNMA Insured
2,800,000 5.300%, 07/01/22 ....................................... Aaa/AAA 2,596,160
10,000,000 5.400%, 07/01/29 ....................................... Aaa/AAA 9,174,600
2,770,000 5.750%, 07/01/30 ....................................... Aaa/AAA 2,772,908
910,000 5.400%, 07/01/30 ....................................... Aaa/AAA 828,000
Housing Finance and Development Corporation
(State of Hawaii) Single Family Mortgage, Series B,
FNMA Insured
9,350,000 5.450%, 07/01/17 ....................................... Aaa/AAA 9,381,322
6,800,000 5.300%, 07/01/28 ....................................... Aaa/AAA 6,343,584

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

Housing Finance and Development Corporation
(State of Hawaii) University of Hawaii Faculty
Housing Project, , AMBAC Insured
$ 1,960,000 5.650%, 10/01/16 ....................................... Aa3/AA $ 1,963,175
4,000,000 5.700%, 10/01/25 ....................................... Aa3/AA 4,006,680
Indianapolis Independent Local Public Improvement,
MBIA Insured, Weekly Reset VRDO*
6,300,000 8.000%, 02/01/20 ....................................... A2/AA 6,300,000
Maine Health & Higher Education, AMBAC Insured,
Weekly Reset VRDO*
3,655,000 8.000%, 07/01/19 ....................................... Aa3/AA 3,655,000
Puerto Rico Commonwealth Highway &
Transportation Authority Revenue, Series G,
FGIC Insured
1,000,000 5.250%, 07/01/15 ....................................... Baa3/BBB+ 1,003,240
Puerto Rico Commonwealth Public Finance
Corporation Revenue Bonds, Series A, Prerefunded
08/01/11 @100, MBIA Insured, Collateral: 38% U.S.
Treasury; 62% U.S. Government Securities
5,000,000 5.500%, 08/01/17 ....................................... Aaa/AAA 5,325,050
Puerto Rico Electric Power Authority Power Revenue
Bonds Series QQ, Syncora Guarantee Inc. Insured**
3,195,000 5.500%, 07/01/16 ....................................... A3/BBB+ 3,257,239
Puerto Rico Electric Power Authority Power
Revenue Series TT
7,000,000 5.000%, 07/01/26 ....................................... A3/BBB+ 6,214,040
Puerto Rico Electric Power Authority Power Revenue,
Refunding Series UU
1,000,000 4.250%, 07/01/13 ....................................... A3/BBB+ 991,890
State of Hawaii Airport System, AMT, FGIC Insured
7,425,000 5.750%, 07/01/13 ....................................... A2/A- 7,525,609
4,000,000 5.750%, 07/01/17 ....................................... A2/A- 3,953,680
11,000,000 5.625%, 07/01/18 ....................................... A2/A- 10,536,680
6,000,000 5.250%, 07/01/21 ....................................... A2/A- 5,293,500

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

State of Hawaii Airport System, AMT, Second Series,
Escrowed to Maturity, MBIA Insured, Collateral:
U.S. Government Securities
$ 5,340,000 6.900%, 07/01/12 ....................................... Aaa/AAA $ 5,651,055
State of Hawaii Airport System, Series B-AMT,
FGIC Insured
3,000,000 8.000%, 07/01/10 ....................................... A2/A- 3,162,600
State of Hawaii Harbor Capital Improvement
Revenue, Series B-AMT, AMBAC Insured
3,000,000 5.500%, 07/01/19 ....................................... Aa3/AA 3,081,300
State of Hawaii Harbor System Revenue, Series
A-AMT, FSA Insured
2,000,000 5.250%, 07/01/15 ....................................... Aaa/AAA 2,065,140
2,000,000 5.750%, 07/01/17 ....................................... Aaa/AAA 2,065,980
2,215,000 5.250%, 07/01/17 ....................................... Aaa/AAA 2,250,529
1,500,000 5.900%, 07/01/21 ....................................... Aaa/AAA 1,537,950
State of Hawaii Harbor System Revenue, Series A-AMT
2,415,000 4.750%, 01/01/11 ....................................... A1/A+ 2,485,808
State of Hawaii Highway Revenue Prerefunded
07/01/11 @100, FSA Insured, Collateral: State &
Local Government Series 100%
1,530,000 5.375%, 07/01/14 ....................................... Aaa/AAA 1,629,970
2,720,000 5.500%, 07/01/19 ....................................... Aaa/AAA 2,856,408
1,110,000 5.500%, 07/01/20 Aaa/AAA 1,165,667
2,000,000 5.375%, 07/01/20 ....................................... Aaa/AAA 2,130,680
State of Hawaii Highway Revenue, Series A,
FSA Insured
1,000,000 5.000%, 07/01/20 ....................................... Aaa/AAA 1,015,360
2,000,000 5.000%, 07/01/22 ....................................... Aaa/AAA 1,993,940
State of Hawaii Highway Revenue, Series B,
FSA Insured
2,000,000 5.000%, 07/01/16 ....................................... Aaa/AAA 2,117,080
Texas Tech University Revenues, 7th Series, MBIA
Insured, Prerefunded 02/18/12 @100 Collateral:
State and Local Government Securities
1,000,000 5.500%, 08/15/18 ....................................... Aaa/AAA 1,073,810
University of Hawaii Revenue, AGC-ICC
MBIA Insured
2,000,000 5.000%, 10/01/23 ....................................... AAA/AAA 1,966,860

RATING
PRINCIPAL MOODY'S/
AMOUNT REVENUE BONDS (CONTINUED) S&P VALUE
- --------------- -------------------------------------------------------- -------- --------------

University of Hawaii University System Revenue,
FGIC Insured, Prerefunded 07/12/12 @ 100
Collateral: State and Local Government Securities
$ 1,650,000 5.125%, 07/15/32 ....................................... Aa3/A+ $ 1,762,249
University of Hawaii MBIA Insured
5,000,000 5.000%, 07/15/21 ....................................... Aa3/AA 4,999,600
--------------
Total Revenue Bonds .................................... 281,402,960
--------------
Total Investments (cost $677,312,352-note 4) ........... 98.1% 669,475,238
Other assets less liabilities .......................... 1.9 13,001,780
-------- --------------
NET ASSETS ............................................. 100.0% $682,477,018
======== ==============

PERCENT OF
PORTFOLIO DISTRIBUTION BY QUALITY RATING PORTFOLIO +
-------------------------------------------------------- -----------
Aaa or #Aaa of Moody's ................................. 15.4%
Pre-refunded bonds ++ .................................. 19.5
Aa of Moody's .......................................... 43.7
A of Moody's ........................................... 18.9
Baa of Moody's ......................................... 2.5
-----------
100.0%
===========

+ Where applicable, calculated using the Moody's rating.
++ Pre-refunded bonds are bonds for which U.S. Government
obligations have been placed in escrow to retire the bonds at
their earliest call date.
* Variable rate demand obligations (VRDOs) are payable upon
demand within the same day for securities with daily liquidity
or seven days for securities with weekly liquidity.
** Formerly XLCA Insured.

PORTFOLIO ABBREVIATIONS:

AMBAC American Municipal Bond Assurance Corporation
AGC Assured Guaranty Insurance
AMT Alternative Minimum Tax
CIFG CDC IXIS Financial Guaranty
FGIC Financial Guaranty Insurance Co.
FNMA Federal National Mortgage Association
FSA Financial Securities Assurance
GNMA Government National Mortgage Association
MBIA Municipal Bond Investors Assurance
NR Not Rated
TCRS Transferable Custodial Receipts
VRDO Variable Rate Demand Obligation

See accompanying notes to financial statements.

HAWAIIAN TAX-FREE TRUST
STATEMENT OF ASSETS AND LIABILITIES
SEPTEMBER 30, 2008 (UNAUDITED)

ASSETS
Investments at value (cost $677,312,352) .......................................... $ 669,475,238
Interest receivable ............................................................... 9,476,047
Receivable for investment securities sold ......................................... 5,000,000
Receivable for Trust shares sold .................................................. 756,596
Other assets ...................................................................... 45,170
-------------
Total assets ...................................................................... 684,753,051
-------------
LIABILITIES
Cash overdraft .................................................................... 851,182
Dividends payable ................................................................. 533,589
Payable for Trust shares redeemed ................................................. 406,135
Adviser and Administrator fees payable ............................................ 229,867
Distribution and service fees payable ............................................. 130,888
Accrued expenses .................................................................. 124,372
-------------
Total liabilities ................................................................. 2,276,033
-------------
NET ASSETS ........................................................................... $ 682,477,018
=============
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $0.01 per share $ 631,222
Additional paid-in capital ........................................................ 694,403,949
Net unrealized depreciation on investments (note 4) ............................... (7,837,114)
Accumulated net realized loss on investments ...................................... (4,721,039)
-------------
$ 682,477,018
=============
CLASS A
Net Assets ........................................................................ $ 620,322,432
=============
Capital shares outstanding ........................................................ 57,375,604
=============
Net asset value and redemption price per share .................................... $ 10.81
=============
Offering price per share (100/96 of $10.81 adjusted to nearest cent) .............. $ 11.26
=============
CLASS C
Net Assets ........................................................................ $ 31,546,680
=============
Capital shares outstanding ........................................................ 2,919,989
=============
Net asset value and offering price per share ...................................... $ 10.80
=============
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) ...................................... $ 10.80*
=============
CLASS Y
Net Assets ........................................................................ $ 30,607,906
=============
Capital shares outstanding ........................................................ 2,826,590
=============
Net asset value, offering and redemption price per share .......................... $ 10.83
=============

See accompanying notes to financial statements.

HAWAIIAN TAX-FREE TRUST
STATEMENT OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 2008
(UNAUDITED)

INVESTMENT INCOME:

Interest income ...................................... $ 15,873,987
Expenses:
Investment Adviser fees (note 3) ..................... $ 490,252
Administrator fees (note 3) .......................... 910,474
Distribution and service fees (note 3) ............... 797,030
Transfer and shareholder servicing agent fees ........ 239,072
Trustees' fees and expenses (note 8) ................. 70,367
Legal fees (note 3) .................................. 63,122
Shareholders' reports and proxy statements ........... 57,450
Custodian fees (note 6) ............................. 27,167
Insurance ............................................ 22,367
Registration fees and dues ........................... 14,406
Auditing and tax fees ................................ 10,279
Chief compliance officer (note 3) .................... 2,014
Miscellaneous ........................................ 20,038
------------
2,724,038
Expenses paid indirectly (note 6) .................... (32,729)
------------
Net expenses ......................................... 2,691,309
------------
Net investment income ................................ 13,182,678

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

Net realized gain (loss) from securities transactions (325,605)
Change in unrealized appreciation on investments ..... (20,901,323)
------------

Net realized and unrealized gain (loss) on investments (21,226,928)
------------
Net change in net assets resulting from operations ... $ (8,044,250)
============

See accompanying notes to financial statements.

HAWAIIAN TAX-FREE TRUST
STATEMENTS OF CHANGES IN NET ASSETS

Six Months Ended
September 30, 2008 Year Ended
(unaudited) March 31, 2008
------------- --------------

OPERATIONS:
Net investment income ............................... $ 13,182,678 $ 27,962,010
Net realized gain (loss) from securities transactions (325,605) (2,121,827)
Change in unrealized appreciation on investments .... (20,901,323) (9,440,361)
------------- -------------
Net change in net assets resulting from operations .. (8,044,250) 16,399,822
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS (note 10):
Class A Shares:
Net investment income ............................... (12,108,894) (25,819,784)

Class C Shares:
Net investment income ............................... (472,828) (1,046,088)

Class Y Shares:
Net investment income ............................... (600,956) (1,096,179)
------------- -------------
Change in net assets from distributions ............. (13,182,678) (27,962,051
------------- -------------

CAPITAL SHARE TRANSACTIONS (note 7):
Proceeds from shares sold ........................... 36,521,775 64,036,491
Reinvested dividends and distributions .............. 7,114,175 15,209,682
Cost of shares redeemed ............................. (33,381,821) (77,925,829)
------------- -------------
Change in net assets from capital share transactions 10,254,129 1,320,344
------------- -------------

Change in net assets .............................. (10,972,799) (10,241,885)

NET ASSETS:
Beginning of period ................................. 693,449,817 703,691,702
------------- -------------
End of period* ...................................... $ 682,477,018 $ 693,449,817
============= =============

* Includes undistributed net investment income of: .. $ -- $ --
============= =============

See accompanying notes to financial statements.

HAWAIIAN TAX-FREE TRUST
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2008 (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 accounting principles generally accepted in the United States of
America.

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 by the pricing service 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 in good
faith 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) FAIR VALUE MEASUREMENTS: The Trust adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157 (FAS 157), "Fair
Value Measurements", effective April 1, 2008. FAS 157 established a
three-tier hierarchy of inputs to establish classification of fair value
measurements for disclosure purposes. Inputs may be observable or
unobservable. Observable inputs reflect the assumptions market
participants would use in pricing the asset or liability developed based
on market data obtained from sources independent of the reporting entity.
Unobservable inputs reflect the reporting entity's own assumptions about
the assumptions market participants would use in pricing the asset or
liability developed based on the best information available in the
circumstances. The Trust's investments in their entirety are assigned
levels based upon the observability.

The three-tier hierarchy of inputs is summarized below:

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Trust's own
assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.

The following is a summary of the valuation inputs, representing 100% of
the Trust's investments, used to value the Trust's net assets as of
September 30, 2008:

Valuation Inputs Investments in Securities
---------------- -------------------------
Level 1 - Quoted Prices ........................ $ --
Level 2 - Other Significant Observable Inputs .. 669,475,238
Level 3 - Significant Unobservable Inputs ...... --
------------
Total .......................................... $669,475,238
============

c) 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.

d) FEDERAL INCOME TAXES: It is the policy of the Trust to continue 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.

FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes"
("FIN 48") was adopted on September 28, 2007. Management has reviewed the
tax positions for each of the open tax years (2004-2008) and has
determined that the implementation of FIN 48 did not have a material
impact on the Trust's financial statements.

e) MULTIPLE CLASS ALLOCATIONS: All income, expenses (other than
class-specific expenses), and realized 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.

f) USE OF ESTIMATES: The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported 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.

g) RECLASSIFICATION OF CAPITAL ACCOUNTS: Accounting principles generally
accepted in the United States of America require that certain components
of net assets relating to permanent differences be reclassified between
financial and tax reporting. These reclassifications have no effect on net
assets or net asset value per share. On March 31, 2008 a reclassification
was made to decrease undistributed net investment income by $2,090,440 and
decrease accumulated net realized loss on investments by $2,090,440.

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.

The Adviser and the Administrator each agree 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, 2008.

Under a Compliance Agreement with the Administrator, the Administrator is
additionally compensated for Chief Compliance Officer related services provided
to enable the Trust to comply with Rule 38a-1 of the Investment Company Act of
1940.

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.

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, 2008, service fees on
Class A Shares amounted to $638,573 of which the Distributor retained $33,687.

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 average net assets represented by Class C Shares and for
the six months ended September 30, 2008, amounted to $118,843. 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 average net assets represented
by Class C Shares and for the six months ended September 30, 2008, amounted to
$39,614. The total of these payments made with respect to Class C Shares
amounted to $158,457 of which the Distributor retained $33,322.

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 brokerage and advisory firms ("intermediaries"), the Trust's shares
are sold primarily through the facilities of intermediaries having offices
within Hawaii, with the bulk of sales commissions inuring to such
intermediaries. For the six months ended September 30, 2008, total commissions
on sales of Class A Shares amounted to $539,166, of which the Distributor
received $53,185.

c) OTHER RELATED PARTY TRANSACTIONS:

For the six months ended September 30, 2008, the Trust incurred $62,367 of
legal fees allocable to Butzel Long PC, counsel to the Trust, for legal services
in conjunction with the Trust's ongoing operations. The Secretary of the Trust
is a shareholder in that firm.

4. PURCHASES AND SALES OF SECURITIES

During the six months ended September 30, 2008, purchases of securities
and proceeds from the sales of securities aggregated $95,177,480 and
$32,133,049, respectively.

At September 30, 2008, the aggregate tax cost for all securites was
$677,312,352. At September 30, 2008, the aggregate gross unrealized appreciation
for all securities in which there is an excess of value over tax cost amounted
to $10,785,551 and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value amounted to $18,622,665 for a
net unrealized depreciation of $7,837,114.

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.

7. CAPITAL SHARE TRANSACTIONS

Transactions in Capital Shares of the Trust were as follows:

Six Months Ended
September 30, 2008 Year Ended
(unaudited) March 31, 2008
----------------------------- -----------------------------
Shares Amount Shares Amount
------------ ------------ ------------ ------------

CLASS A SHARES:
Proceeds from shares sold . 2,148,335 $ 23,924,127 4,318,450 $ 48,490,243
Reinvested distributions .. 611,121 6,783,775 1,286,401 14,423,477
Cost of shares redeemed ... (2,388,964) (26,604,373) (5,538,391) (62,146,434)
------------ ------------ ------------ ------------
Net change ................ 370,492 4,103,529 66,460 767,286
------------ ------------ ------------ ------------
CLASS C SHARES:
Proceeds from shares sold . 584,872 6,508,223 597,453 6,699,220
Reinvested distributions .. 23,688 262,674 50,009 560,330
Cost of shares redeemed ... (399,863) (4,454,343) (1,081,173) (12,122,217)
------------ ------------ ------------ ------------
Net change .............. 208,697 2,316,554 (433,711) (4,862,667)
------------ ------------ ------------ ------------
CLASS Y SHARES:
Proceeds from shares sold . 544,282 6,089,425 785,291 8,847,028
Reinvested distributions .. 6,081 67,726 20,124 225,875
Cost of shares redeemed ... (208,671) (2,323,105) (326,264) (3,657,178)
------------ ------------ ------------ ------------
Net change .............. 341,692 3,834,046 479,151 5,415,725
------------ ------------ ------------ ------------
Total transactions in Trust
shares .................... 920,881 $ 10,254,129 111,900 $ 1,320,344
============ ============ ============ ============

8. TRUSTEES' FEES AND EXPENSES

At September 30, 2008 there were 7 Trustees, one of whom is affiliated
with the Administrator and is not paid any fees. The total amount of Trustees'
service and attendance fees paid during the six months ended September 30, 2008
was $55,151, to cover 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. When additional meetings
(Audit, Nominating, Shareholder and special meetings) are held, meeting fees are
paid to those Trustees in attendance. Trustees are reimbursed for their expenses
such as travel, accommodations and meals incurred in connection with attendance
at Board Meetings and the Annual and Outreach Meetings of Shareholders. For the
six months ended September 30, 2008, such meeting-related expenses amounted to
$15,216.

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. Net realized capital gains, if any, are distributed annually
and are taxable. Dividends and capital gains distributions are paid in
additional shares at the net asset value per share, in cash, or in a combination
of both, at the shareholder's option.

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 portion of the dividends and distributions 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. At March 31, 2008 the Trust had a
capital loss carryover of $3,525,019, of which $2,273,607 expires in 2015 and
$1,251,412 expires in 2016. This carryover is available to offset future net
realized gains on securities transactions to the extent provided for in the
Internal Revenue Code. To the extent that this loss carryover is used to offset
future realized capital gains, it is probable the gains so offset will not be
distributed. At March 31, 2008 there were post-October capital loss deferrals of
$870,415, which will be recognized in the following year.

The tax character of distributions:

Year Ended March 31,
2008 2007
----------- -----------
Net tax-exempt income $27,803,667 $27,766,907
Ordinary income 158,384 362,426
Long term capital gain -- 875,058
----------- -----------
$27,962,051 $29,004,391
=========== ===========

As of March 31, 2008, the components of distributable earnings on a tax
basis were as follows:

Accumulated net realized loss $ (3,525,019)
Unrealized appreciation 13,064,179
Undistributed tax-exempt income 514,900
Other accumulated income (514,900)
Other accumulated gains/(losses) (870,415)
------------
$ 8,668,745
============

The difference between book and tax components of distributable earnings
consist of post-October losses and distributions for tax accounted for on a cash
basis.

11. RECENT DEVELOPMENTS

a) THE DAVIS CASE: In May, 2007, the U.S. Supreme Court agreed to hear an
appeal in DEPARTMENT OF REVENUE OF KENTUCKY V. DAVIS, a case concerning
the constitutionality of differential tax treatment for interest from
in-state vs. out-of-state municipal securities, a practice which is common
among the majority of the states. On May 19, 2008, the U.S. Supreme Court
upheld the right of states to tax interest on out-of-state municipal bonds
while exempting their own state's bond interest from taxation. The U. S.
Supreme Court said differential tax treatment for interest from in-state
vs. out-of-state municipal securities does not discriminate against
interstate commerce, but rather promotes the financing of essential
governmental services.

b) INSURERS: Beginning in December, 2007, municipal bond insurance companies
have been under review by the three major rating agencies: Standard &
Poor's, Moody's and Fitch. The ratings of some of the insurance companies
have now either been downgraded and/or have a negative outlook. The
financial markets continue to assess the severity of the losses caused by
the subprime credit crisis and its impact on municipal bond insurance
companies and the prices of insured municipal bonds.

HAWAIIAN TAX-FREE TRUST
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

Class A
----------------------------------------------------------------------------
Six Months
Ended Year Ended March 31,
9/30/08 -------------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
--------- --------- --------- --------- --------- ---------

Net asset value, beginning of period .......... $ 11.15 $ 11.33 $ 11.32 $ 11.51 $ 11.83 $ 11.73
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income + .................... 0.21 0.46 0.46 0.43 0.45 0.46
Net gain (loss) on securities (both realized
and unrealized) .......................... (0.34) (0.18) 0.02 (0.18) (0.30) 0.10
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (0.13) 0.28 0.48 0.25 0.15 0.56
--------- --------- --------- --------- --------- ---------
Less distributions (note 10):
Dividends from net investment income ....... (0.21) 0.46 (0.46) (0.43) (0.45) (0.46)
Distributions from capital gains ........... -- -- (0.01) (0.01) (0.02) --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (0.21) (0.46) (0.47) (0.44) (0.47) (0.46)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ................ $ 10.81 $ 11.15 $ 11.33 $ 11.32 $ 11.51 $ 11.83
========= ========= ========= ========= ========= =========
Total return (not reflecting sales charge) .... (1.18)%* 2.49% 4.28% 2.19% 1.33% 4.83%

Ratios/supplemental data
Net assets, end of period (in millions) .... $ 620 $ 636 $ 645 $ 666 $ 681 $ 694
Ratio of expenses to average net assets .... 0.75%** 0.75% 0.75% 0.74% 0.74% 0.73%
Ratio of net investment income to average
net assets ............................... 3.78%** 4.06% 3.99% 3.76% 3.90% 3.89%
Portfolio turnover rate .................... 5%* 18% 38% 22% 10% 8%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets .... 0.74%** 0.75% 0.75% 0.74% 0.74% 0.72%

- ----------
+ Per share amounts have been calculated using the monthly average shares
method.
* Not Annualized.
** Annualized.

See accompanying notes to financial statements.

HAWAIIAN TAX-FREE TRUST
FINANCIAL HIGHLIGHTS (CONTINUED)

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

1451:

Class C
----------------------------------------------------------------------------
Six Months
Ended Year Ended March 31,
9/30/08 -------------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
--------- --------- --------- --------- --------- ---------

Net asset value, beginning of period ..... $ 11.14 $ 11.33 $ 11.31 $ 11.50 $ 11.82 $ 11.73
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income + ............... 0.17 0.37 0.36 0.34 0.36 0.36
Net gain (loss) on securities (both
realized and unrealized) ............ (0.34) (0.19) 0.03 (0.18) (0.30) 0.09
--------- --------- --------- --------- --------- ---------
Total from investment operations ...... (0.17) 0.18 0.39 0.16 0.06 0.45
--------- --------- --------- --------- --------- ---------
Less distributions (note 10):
Dividends from net investment income .. (0.17) (0.37) (0.36) (0.34) (0.36) (0.36)
Distributions from capital gains ...... -- -- (0.01) (0.01) (0.02) --
--------- --------- --------- --------- --------- ---------
Total distributions ................... (0.17) (0.37) (0.37) (0.35) (0.38) (0.36)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 10.80 $ 11.14 $ 11.33 $ 11.31 $ 11.50 $ 11.82
========= ========= ========= ========= ========= =========
Total return (not reflecting sales charge) (1.58)%* 1.59% 3.55% 1.37% 0.53% 3.91%

Ratios/supplemental data
Net assets, end of period (in millions) $ 31.5 $ 30.2 $ 35.6 $ 36.7 $ 37.6 $ 38.2
Ratio of expenses to average net assets 1.55%** 1.55% 1.55% 1.54% 1.54% 1.54%
Ratio of net investment income to
average net assets .................. 2.97%** 3.26% 3.19% 2.96% 3.10% 3.08%
Portfolio turnover rate ............... 5%* 18% 38% 22% 10% 8%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets 1.54%** 1.55% 1.55% 1.54% 1.54% 1.52%

Class Y
-----------------------------------------------------------------------------
Six Months
Ended Year Ended March 31,
9/30/08 -------------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
--------- --------- --------- --------- --------- ---------

Net asset value, beginning of period ..... $ 11.17 $ 11.35 $ 11.34 $ 11.52 $ 11.84 $ 11.75
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income + ............... 0.22 0.48 0.48 0.46 0.48 0.48
Net gain (loss) on securities (both
realized and unrealized) ............ (0.34) (0.18) 0.02 (0.18) (0.30) 0.09
--------- --------- --------- --------- --------- ---------
Total from investment operations ...... (0.12) 0.30 0.50 0.28 0.18 0.57
--------- --------- --------- --------- --------- ---------
Less distributions (note 10):
Dividends from net investment income .. (0.22) (0.48) (0.48) (0.45) (0.48) (0.48)
Distributions from capital gains ...... -- -- (0.01) (0.01) (0.02) --
--------- --------- --------- --------- --------- ---------
Total distributions ................... (0.22) (0.48) (0.49) (0.46) (0.50) (0.48)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 10.83 $ 11.17 $ 11.35 $ 11.34 $ 11.52 $ 11.84
========= ========= ========= ========= ========= =========
Total return (not reflecting sales charge) (1.08)%* 2.70% 4.49% 2.48% 1.54% 4.97%

Ratios/supplemental data
Net assets, end of period (in millions) $ 30.6 $ 27.7 $ 22.8 $ 18.5 $ 20.7 $ 23.5
Ratio of expenses to average net assets 0.55%** 0.55% 0.55% 0.54% 0.54% 0.53%
Ratio of net investment income to
average net assets .................. 3.98%** 4.26% 4.19% 3.96% 4.09% 4.09%
Portfolio turnover rate ............... 5%* 18% 38% 22% 10% 8%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets 0.54%** 0.55% 0.55% 0.54% 0.54% 0.52%
1529:

- ----------
+ 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 table below is 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 table below is based on an investment of $1,000 invested on April 1,
2008 and held for the six months ended September 30, 2008.

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".

SIX MONTHS ENDED SEPTEMBER 30, 2008

ACTUAL
TOTAL RETURN BEGINNING ENDING EXPENSES
WITHOUT ACCOUNT ACCOUNT PAID DURING
SALES CHARGES(1) VALUE VALUE THE PERIOD(2)
- --------------------------------------------------------------------------------
Class A (1.18)% $1,000.00 $988.20 $3.69
- --------------------------------------------------------------------------------
Class C (1.58)% $1,000.00 $984.20 $7.66
- --------------------------------------------------------------------------------
Class Y (1.08)% $1,000.00 $989.22 $2.69
- --------------------------------------------------------------------------------

(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).

- --------------------------------------------------------------------------------

ANALYSIS OF EXPENSES (UNAUDITED) (CONTINUED)

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
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.

SIX MONTHS ENDED SEPTEMBER 30, 2008

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).

- --------------------------------------------------------------------------------

SHAREHOLDER MEETING RESULTS (UNAUDITED)

The Annual Meeting of Shareholders of Hawaiian Tax-Free Trust (the
"Trust") was held on September 12, 2008. The holders of shares representing 75%
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.

Dollar Amount of Votes:
-----------------------
Trustee For Withheld
------- --- --------
Thomas W. Courtney $516,487,046 $ 7,000,055
Diana P. Herrmann $516,640,886 $ 6,846,215
Stanley W. Hong $516,351,626 $ 7,135,475
Theodore T. Mason $516,577,470 $ 6,909,631
Russell K. Okata $511,242,482 $ 12,244,620
Douglas Philpotts $515,496,878 $ 7,990,212
Oswald K. Stender $510,772,218 $ 12,714,873

2. To ratify the selection of Tait, Weller & Baker LLP as the Trust's
independent registered public accounting firm.

Dollar Amount of Votes:
-----------------------
For Against Abstain
--- ------- -------
$509,975,675 $3,631,592 $9,879,823

A Special Meeting of Shareholders of Hawaiian Tax-Free Trust (the "Trust")
was held on September 12, 2008. The holders of shares representing 53% 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 for are presented below).

1. To act on revision of the Trust's fundamental policies.

Dollar Amount of Votes:
-----------------------
For Against Abstain
--- ------- -------
$326,428,898 $23,168,816 $18,660,711

- --------------------------------------------------------------------------------

INFORMATION AVAILABLE (UNAUDITED)

Much of the information that the funds in the Aquila 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 Trust
twice a year in the semi-annual and annual reports you receive. Additionally, 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
http://www.aquilafunds.com or call us at 1-800-437-1020.

The Trust additionally files a complete list of its portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q.
Forms N-Q are available free of charge on the SEC website at http://www.sec.gov.
You may also review or, for a fee, copy the forms at the SEC's Public Reference
Room in Washington, DC or by calling 800-SEC-0330.

- --------------------------------------------------------------------------------

PROXY VOTING RECORD (UNAUDITED)

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, 2008 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.

- --------------------------------------------------------------------------------

ADDITIONAL INFORMATION (UNAUDITED)

RENEWAL OF THE INVESTMENT ADVISORY AGREEMENT

Renewal until June 30, 2009 of the Investment Advisory Agreement (the
"Advisory Agreement") between the Trust and the Adviser was approved by the
Board of Trustees and the independent Trustees in May, 2008. At a meeting called
and held for that purpose at which a majority of the independent Trustees were
present in person, the following materials were considered:

o Copies of the agreement to be renewed;

o A term sheet describing the material terms of the agreement;

o The Annual Report of the Trust for the year ended March 31, 2008;

o A report, prepared by the Adviser and Administrator and provided to
the Trustees for the Trustees' review, containing data about the
performance of the Trust, data about its fees, expenses and
purchases and redemptions of capital stock together with comparisons
of such data with similar data about other comparable funds, as well
as data as to the profitability of the Adviser and the
Administrator; and

o Quarterly materials reviewed at prior meetings on the Trust's
performance, operations, portfolio and compliance.

The Trustees reviewed materials relevant to, and considered, the following
factors:

THE NATURE, EXTENT, AND QUALITY OF THE SERVICES PROVIDED BY THE ADVISER.

The Adviser has employed Mr. Stephen K. Rodgers as portfolio manager for
the Trust and has provided facilities for credit analysis of the Trust's
portfolio securities. Mr. Rodgers, based in Honolulu, has provided local
information regarding specific holdings in the Trust's portfolio. The portfolio
manager has also been available to and has met with the brokerage and financial
planner community and with investors and prospective investors to provide them
with information generally about the Trust's portfolio, with which to assess the
Trust as an investment vehicle for residents of Hawaii in light of prevailing
interest rates and local economic conditions. In addition, he has been present
at all regular meetings of the Board and Shareholders.

The Board considered that the Adviser had provided all services the Board
deemed necessary or appropriate, including the specific services that the Board
has determined are required for the Trust, given that its purpose is to provide
shareholders with as high a level of current income exempt from Hawaii state and
regular Federal income taxes as is consistent with preservation of capital.

The Board concluded that the services provided were appropriate and
satisfactory and that the Trust would be well served if they continued.
Evaluation of this factor weighed in favor of renewal of the Advisory Agreement.

THE INVESTMENT PERFORMANCE OF THE TRUST AND THE ADVISER.

The Board reviewed each aspect of the Trust's performance and compared its
performance with that of 1) its local competitors, 2) single-state intermediate
municipal bond funds of similar duration and quality, and 3) a benchmark index.
It was noted that the materials provided by the Adviser indicated that compared
to the four competitive Hawaii funds, the Trust has had investment performance
that is generally higher compared to that of its peers and compared to an
average of investment performance of similarly-managed funds with like duration
and quality portfolio characteristics for one-, three-, five- and ten-year
periods. The Board considered these results to be consistent with the purposes
of the Trust.

The Board concluded that the performance of the Trust, in light of market
conditions, was satisfactory. Evaluation of this factor indicated to the
Trustees that renewal of the Advisory Agreement would be appropriate.

THE COSTS OF THE SERVICES TO BE PROVIDED AND PROFITS TO BE REALIZED BY THE
ADVISER AND ITS AFFILIATES FROM THE RELATIONSHIP WITH THE TRUST.

The information provided contained expense data for the Trust and its
competitors as well as data for all single-state tax-free municipal bond funds
nationwide, including data for all such front-end sales charge funds of a
comparable asset size. The materials also showed the profitability to the
Adviser of its services to the Trust.

The Board compared the expense and fee data with respect to the Trust to
similar data about other funds that it found to be relevant. The Board concluded
that the expenses of the Trust and the fees paid were similar to and were
reasonable as compared to those being paid by single-state tax-free municipal
bond funds nationwide, and by the Trust's local competitors.

The Board further concluded that the profitability to the Adviser did not
argue against approval of the fees to be paid under the Advisory Agreement.

THE EXTENT TO WHICH ECONOMIES OF SCALE WOULD BE REALIZED AS THE TRUST GROWS.

Data provided to the Trustees showed that the Trust's asset size had
declined in recent years. They concluded that the recent increase in prevailing
interest rates and the possibility of further increases might make it difficult
to achieve substantial growth in assets in the near future. The Trustees also
noted that the materials indicated that the Trust's fees were already generally
lower than those of its peers, including those with breakpoints. Evaluation of
this factor indicated to the Board that the Advisory Agreement should be renewed
without addition of breakpoints at this time.

BENEFITS DERIVED OR TO BE DERIVED BY THE ADVISER AND ITS AFFILIATES FROM THE
RELATIONSHIP WITH THE TRUST.

The Board observed that, as is generally true of most fund complexes, the
Adviser and its affiliates, by providing services to a number of funds or other
investment clients including the Trust, were able to spread costs as they would
otherwise be unable to do. The Board noted that while that produces efficiencies
and increased profitability for the Adviser and its affiliates, it also makes
their services available to the Trust at favorable levels of quality and cost
which are more advantageous to the Trust than would otherwise have been
possible.

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, Chair
Diana P. Herrmann, Vice Chair
Thomas W. Courtney
Stanley W. Hong
Russell K. Okata
Douglas Philpotts
Oswald K. Stender

OFFICERS
Diana P. Herrmann, President
Sherri Foster, Senior Vice President
Stephen J. Caridi, Vice President
Robert W. Anderson, Chief Compliance Officer
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

TRANSFER AND SHAREHOLDER SERVICING AGENT
PNC GLOBAL INVESTMENT SERVICING
101 Sabin Street
Pawtucket, RI 02860

CUSTODIAN
JPMORGAN CHASE BANK, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TAIT, WELLER & BAKER LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103

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. SCHEDULE OF INVESTMENTS.

Included in Item 1 above

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Board of Directors of the Registrant has adopted a Nominating
Committee Charter which provides that the Nominating Committee (the 'Committee')
may consider and evaluate nominee candidates properly submitted by shareholders
if a vacancy among the Independent Trustees of the Registrant occurs and if,
based on the Board's then current size, composition and structure, the Committee
determines that the vacancy should be filled. The Committee will consider
candidates submitted by shareholders on the same basis as it considers and
evaluates candidates recommended by other sources. A copy of the qualifications
and procedures that must be met or followed by shareholders to properly submit
a nominee candidate to the Committee may be obtained by submitting a request
in writing to the Secretary of the Registrant.

ITEM 11. 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 12. 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.

(b) Certifications of principal executive officer and principal financial
officer as required by Rule 30a-2(b) under the Investment Company Act of
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, President and Trustee
December 8, 2008

By: /s/ Joseph P. DiMaggio
- ------------------------------------
Chief Financial Officer and Treasurer
December 8, 2008

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, President and Trustee
December 8, 2008

By: /s/ Joseph P. DiMaggio
- ------------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
December 8, 2008

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.