UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-08572
BISHOP STREET FUNDS
(Exact name of registrant as specified in charter)
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101 Federal Street
Boston, MA 02109
(Address of principal executive offices) (Zip code)
DST Systems, Inc.
Kansas City, MO 64141
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 610-254-1000
DATE OF FISCAL YEAR END: DECEMBER 31
DATE OF REPORTING PERIOD: JUNE 30, 2004
Item 1. Reports to Stockholders.
[BACKGROUND GRAPHIC OMITTED]
BISHOP STREET
FUNDS
SEMI-ANNUAL
REPORT
JUNE 30, 2004
EQUITY FUND
STRATEGIC GROWTH FUND
TAX MANAGED EQUITY FUND
HIGH GRADE INCOME FUND
HAWAII MUNICIPAL BOND FUND
MONEY MARKET FUND
TREASURY MONEY MARKET FUND
INVESTMENT ADVISER
BISHOP STREET
CAPITAL MANAGEMENT
[Bishop Street Funds logo omitted]
[GRAPHIC OMITTED]
The Bishop Street
Hawaii Municipal Bond Fund
Taxes can take a bite out of your income.
The Hawaii Municipal Bond Fund may
help reduce that tax burden.
If you are:
o Seeking high current income substantially
exempt from federal and Hawaii state
income taxes.
o Willing to accept the risk of investing in a
portfolio of municipal securities.
Then you should consider adding the Hawaii
Municipal Bond Fund to your portfolio.
o Invests primarily in Hawaii Municipal Bonds.
o Active portfolio management.
o High-quality investment portfolio.
Visit us at
www.bishopstreetfunds.com
or call 1-800-262-9565
today to discover how the
Bishop Street Funds Hawaii
Municipal Bond Fund can
help diversify your portfolio.
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS FOR THE
BISHOP STREET FUNDS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING OR
SENDING MONEY.
INVESTMENT IN MUTUAL FUNDS INVOLVES RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.
CERTAIN SHAREHOLDERS MAY BE SUBJECT TO THE ALTERNATIVE MINIMUM TAX (AMT).
FEDERAL INCOME TAX RULES WILL APPLY TO ANY CAPITAL GAINS DISTRIBUTIONS. IN
ADDITION TO THE NORMAL RISKS ASSOCIATED WITH INVESTING, NARROWLY FOCUSED
INVESTMENTS TYPICALLY EXHIBIT HIGHER VOLATILITY. THE BISHOP STREET FUNDS ARE
DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO., WHICH IS NOT AFFILIATED WITH
FIRST HAWAIIAN BANK, BANK OF THE WEST, OR BANCWEST CORPORATION. BANCWEST
CORPORATION IS A WHOLLY-OWNED SUBSIDIARY OF BNP PARABAS.
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Not FDIC Insured No Bank Guarantee May Lose Value
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BISHOP STREET
TABLE OF CONTENTS
FUNDS
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LETTER TO SHAREHOLDERS............................................... 2
STATEMENTS OF NET ASSETS
Equity Fund.................................................... 4
Strategic Growth Fund.......................................... 9
Tax Managed Equity Fund........................................ 12
High Grade Income Fund......................................... 16
Hawaii Municipal Bond Fund..................................... 22
Money Market Fund.............................................. 32
Treasury Money Market Fund..................................... 37
Statements of Operations ............................................ 39
Statements of Changes in Net Assets.................................. 41
Financial Highlights ................................................ 46
Notes to Financial Statements........................................ 50
Board of Trustees and Officers....................................... 58
A description of the policies and procedures that the Funds use to determine how
to vote proxies (if any) relating to portfolio securities is available without
charge by calling 1-800-262-9565 or by visiting the Commission's website at
HTTP://WWW.SEC.GOV. Information regarding how the Funds voted proxies relating
to portfolio securities during the most recent twelve-month period ended June
30, is available without charge, by calling 1-800-262-9565 or by visiting the
Funds' website at HTTP://WWW.BISHOPSTREETFUNDS.COM or the website of the
Securities and Exchange Commission.
1
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BISHOP STREET
LETTER TO SHAREHOLDERS
FUNDS
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[Photo of Gregory E.Ratte omitted]
During the second quarter, while the economic news was
consistently good, investors were trying to balance the
opposing market forces of:
o a resurgent economy and record profit growth on the
one hand, with
o the specter of higher interest rates and inflation on the
other.
In the end, the discounting of these forces had dramatically different effects
in the stock and bond markets, as they often do. While the bond market
convulsed, enduring one of its worst quarters in years, the stock market just
twitched, managing a small gain. At least for bond investors, the bad news came
early. By BAD news, we, of course, mean GOOD news for most of us -- the
unexpectedly strong March jobs report, which instantly ended talk of a "jobless
recovery." All of the downside in bond prices was felt early in the quarter. The
S&P 500 Index, on the other hand, ended the quarter with a total return of a
positive 1.7% (coincidentally, exactly the same as the first quarter of the
year), but only after gyrating violently down, then ending modestly up.
Uninspiring, perhaps, but not so bad compared with the "riskless" 10-year
Treasury, which returned -4.4%.
The deeper theme within the equity market was that there was no theme. Typical
investment factors that usually dominate performance -- such as company size,
earnings growth, and riskiness -- did not have dramatic or consistent effects on
performance during the quarter. For example, only two industry sectors,
Industrials and Energy, which posted 8% and 7% gains, respectively, managed to
show more than a low single-digit price change. If anything at all was apparent,
it was that despite long running expectations to the contrary, investors were
penalized again for focusing on quality growth
Bishop Street Funds 2
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[Bishop Street Funds Logo Omitted]
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companies. In all, the market traded within a narrow range around 1100 on the
S&P 500 with no clear direction.
Looking ahead, our crystal ball is even murkier than usual, but the great
consolation for equity investors is that the underlying profit growth
environment has never been better! In the first quarter, earnings per share for
the S&P 500 expanded at an astounding 27% and it looks like the second quarter
could be as good or even better! With these numbers, full-year estimates are
also rising, as are those for 2005. The result is that, with stocks marking
time, they are actually getting cheaper, providing a compelling rationale for
our positive view on the medium-term outlook for the market. Higher interest
rates will certainly continue to be a modest headwind for the market, but not
strong enough, in our opinion, to stem the full tide of profit expansion. Growth
is slowly rising, but profits are enough to provide support to the stock market.
In fact, based on expectations for next year, the market is the cheapest it's
been in 10 years.
Thank you for your continued support and confidence.
Sincerely,
/s/ Gregory E. Ratte
Gregory E. Ratte
President and Chief Investment Officer
Bishop Street Capital Management
June 30, 2004 3 www.bishopstreetfunds.com
Equity Fund (UNAUDITED)
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TOP TEN EQUITY HOLDINGS*
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Percentage of
Investments*
1. Pfizer 4.6%
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2. General Electric 3.5%
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3. Exxon Mobil 3.4%
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4. Microsoft 3.2%
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5. Amgen 2.9%
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6. Citigroup 2.8%
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7. Wal-Mart Stores 2.8%
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8. Johnson & Johnson 2.7%
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9. American International Group 2.7%
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10. Morgan Stanley 2.4%
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*EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES
LENDING.
STATEMENT OF NET ASSETS
Market
Value
Shares (000)
------- ------
COMMON STOCK -- 98.6%
CONSUMER DISCRETION -- 10.3%
51,864 Brinker International* (A) $ 1,770
36,360 Carnival (A) 1,709
51,800 Clear Channel Communications 1,914
39,612 Home Depot 1,394
92,013 InterActiveCorp* (A) 2,773
25,940 Michaels Stores 1,427
31,073 Omnicom Group 2,358
64,630 Viacom, Cl B 2,309
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15,654
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CONSUMER STAPLES -- 10.1%
25,400 Anheuser-Busch 1,372
42,173 CVS 1,772
55,080 PepsiCo 2,968
54,040 Procter & Gamble 2,942
66,400 Sysco 2,382
72,110 Wal-Mart Stores 3,804
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15,240
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Bishop Street Funds 4
Equity Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Value
Shares (000)
--------- ------
ENERGY -- 8.0%
25,860 Devon Energy $ 1,707
104,710 Exxon Mobil 4,650
94,330 GlobalSantaFe 2,499
51,738 Schlumberger Ltd. 3,286
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12,142
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FINANCIALS -- 18.0%
22,520 AMBAC Financial Group (A) 1,654
31,673 American Express 1,627
51,315 American International Group 3,658
83,073 Citigroup 3,863
28,570 Goldman Sachs Group 2,690
79,710 JP Morgan Chase 3,090
54,560 Mellon Financial 1,600
63,170 Morgan Stanley 3,334
38,354 St. Paul Travelers 1,555
33,410 Washington Mutual 1,291
49,610 Wells Fargo 2,839
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27,201
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HEALTH CARE -- 15.8%
26,666 Accredo Health* (A) 1,039
72,930 Amgen* 3,980
52,295 Boston Scientific* (A) 2,238
19,720 Eli Lilly 1,379
12,171 Forest Laboratories* 689
15,581 Genzyme* 737
34,405 Gilead Sciences* (A) 2,305
17,892 HCA (A) 744
65,999 Johnson & Johnson 3,676
184,560 Pfizer 6,327
13,447 UnitedHealth Group 837
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23,951
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INDUSTRIALS -- 11.0%
24,772 3M 2,230
17,060 General Dynamics 1,694
148,405 General Electric 4,809
33,560 Illinois Tool Works 3,218
66,942 Pentair 2,252
21,820 SPX 1,013
24,210 Union Pacific 1,439
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16,655
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June 30, 2004 5 www.bishopstreetfunds.com
Equity Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Shares/Face Value
Amount (000) (000)
------------ ------
INFORMATION TECHNOLOGY -- 18.1%
80,505 Agilent Technologies* $ 2,357
142,158 Applied Materials* 2,789
89,070 Cisco Systems* 2,111
63,829 Dell* 2,286
112,720 Flextronics International* 1,798
36,670 Hewlett-Packard 774
69,790 Intel 1,926
38,682 Linear Technology 1,527
154,204 Microsoft 4,404
176,289 Nokia ADR 2,563
67,969 Paychex 2,303
18,690 SAP ADR 782
38,964 Symantec* 1,706
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27,326
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MATERIALS -- 4.7%
88,836 Alcoa (A) 2,934
27,123 EI Du Pont de Nemours 1,205
74,210 Praxair 2,962
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7,101
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TELECOMMUNICATIONS -- 2.6%
41,150 Verizon Communications 1,489
109,280 Vodafone Group ADR (A) 2,415
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3,904
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TOTAL COMMON STOCK (Cost $136,123) 149,174
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CORPORATE OBLIGATIONS (B) -- 2.6%
FINANCIALS -- 2.6%
Bear Stearns
$1,016 1.650%, 07/07/04 1,016
First Tennessee Bank MTN (C)
2,032 1.080%, 06/07/05 2,031
Lehman Brothers MTN (C)
1,016 1.590%, 05/16/05 1,016
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TOTAL CORPORATE OBLIGATIONS (Cost $4,063) 4,063
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Bishop Street Funds 6
Equity Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Face Amount Value
(000)/Shares (000)
------------ ------
COMMERCIAL PAPER (B) -- 2.0%
Countrywide Home Loans
$1,015 1.330%, 07/06/04 $ 1,015
Morgan Stanley (C)
2,032 1.580%, 02/18/05 2,032
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TOTAL COMMERCIAL PAPER (Cost $3,047) 3,047
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CASH EQUIVALENTS -- 0.6%
410,400 Dreyfus Cash Management Fund 410
410,433 Fidelity Institutional Money Market Fund 410
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TOTAL CASH EQUIVALENTS (Cost $820) 820
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REPURCHASE AGREEMENTS (B) -- 2.6%
Bank of America 1.550%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase price
$2,217,593, (collateralized by a mortgage obligation,
$2,217 total market value $2,261,848) 2,217
Lehman Brothers 1.580%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase price
$1,650,272, (collateralized by a mortgage obligation,
1,650 total market value $1,683,204) 1,650
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TOTAL REPURCHASE AGREEMENTS (Cost $3,867) 3,867
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TOTAL INVESTMENTS (COST $147,920)-- 106.4% 160,971
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OTHER ASSETS AND LIABILITIES -- (6.4)%
Payable Upon Return of Securities Loaned (10,977)
Investment Adviser Fees Payable (81)
Administrative Fees Payable (14)
Shareholder Servicing Fees Payable (12)
Trustees' Fees Payable (2)
Other Assets and Liabilities, Net 1,341
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TOTAL OTHER ASSETS AND LIABILITIES (9,745)
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June 30, 2004 7 www.bishopstreetfunds.com
Equity Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-----
NET ASSETS:
Fund Shares of Institutional Shares (unlimited authorization -- no par
value) Based on 15,749,058 Outstanding Shares of Beneficial
Interest $194,055
Fund Shares of Class A (unlimited authorization -- no par value)
Based on 178,410 Outstanding Shares of Beneficial Interest 6,726
Undistributed Net Investment Income 13
Accumulated Net Realized Loss on Investments (62,619)
Net Unrealized Appreciation on Investments 13,051
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TOTAL NET ASSETS -- 100.0% $151,226
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NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($149,541,344 / 15,749,058 SHARES) $ 9.50
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A
($1,684,613 / 178,410 SHARES) $ 9.44
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A SHARES ($9.44 / 94.25%) $ 10.02
========
* NON-INCOME PRODUCING SECURITY
(A) THE SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2004 (SEE
NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS). THE TOTAL VALUE OF SECURITIES
ON LOAN AT JUNE 30, 2004 WAS $10,668,764.
(B) THESE SECURITIES WERE PURCHASED WITH CASH COLLATERAL RECEIVED FROM
SECURITIES LENDING (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS). THE
TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2004 WAS $10,977,481.
(C) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 2004. THE MATURITY DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
LTD. -- LIMITED
MTN -- MEDIUM TERM NOTE
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 8
Strategic Growth Fund (UNAUDITED)
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TOP TEN EQUITY HOLDINGS
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Percentage of
Investments
---------------------------------------------------------------------
1. L-3 Communications Holdings 2.7%
---------------------------------------------------------------------
2. Broadcom, Cl A 2.7%
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3. Harley Davidson 2.7%
---------------------------------------------------------------------
4. International Game Technology 2.6%
---------------------------------------------------------------------
5. IVAX 2.6%
---------------------------------------------------------------------
6. Cendant 2.5%
---------------------------------------------------------------------
7. JetBlue Airways 2.5%
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8. United Technologies 2.5%
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9. Affiliated Computer Services, Cl A 2.5%
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10. Tyco International Ltd. 2.5%
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STATEMENT OF NET ASSETS
Market
Value
Shares (000)
------- ------
COMMON STOCK -- 98.0%
CONSUMER DISCRETION -- 19.5%
13,200 Autozone* $ 1,057
28,800 Bed Bath & Beyond* 1,107
20,400 Best Buy 1,035
23,300 Coach* 1,053
19,700 Harley-Davidson 1,220
30,500 International Game Technology 1,177
18,900 Lowe's 993
32,200 PETsMART 1,045
35,500 Staples 1,041
28,200 Yum! Brands* 1,050
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10,778
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CONSUMER STAPLES -- 1.9%
36,300 Coca-Cola 1,052
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FINANCIALS -- 22.7%
12,100 Bank of America 1,024
14,900 Capital One Financial 1,019
June 30, 2004 9 www.bishopstreetfunds.com
Strategic Growth Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Value
Shares (000)
------ ------
FINANCIALS (CONTINUED)
22,500 Citigroup $ 1,046
13,000 Everest Re Group Ltd. 1,045
15,400 Fannie Mae 1,099
11,300 Goldman Sachs Group 1,064
25,800 JP Morgan Chase 1,000
10,800 Legg Mason 983
19,800 MBIA 1,131
19,600 Merrill Lynch 1,058
19,400 RenaissanceRe Holdings 1,047
20,700 State Street 1,015
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12,531
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HEALTH CARE -- 13.5%
18,600 Amgen* 1,015
33,200 Caremark Rx* 1,093
12,500 Express Scripts* 990
48,800 IVAX* 1,171
24,100 Omnicare 1,032
17,900 UnitedHealth Group 1,114
9,300 WellPoint Health Networks* 1,042
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7,457
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INDUSTRIALS -- 14.3%
11,300 Apollo Group, Cl A* 998
47,600 Cendant 1,165
22,400 H&R Block 1,068
39,600 JetBlue Airways* 1,163
18,500 L-3 Communications Holdings 1,236
34,300 Tyco International Ltd. 1,137
12,600 United Technologies 1,153
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7,920
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INFORMATION TECHNOLOGY -- 22.2%
21,600 Affiliated Computer Services, Cl A* 1,144
25,700 Autodesk 1,100
26,200 Broadcom, Cl A* 1,225
29,900 Cognos* 1,081
31,100 Dell* 1,114
20,200 Electronic Arts* 1,102
40,800 Jabil Circuit* 1,027
11,600 Lexmark International* 1,120
34,700 Microchip Technology 1,095
51,300 National Semiconductor* 1,128
51,100 Sandisk* 1,108
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12,244
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Bishop Street Funds 10
Strategic Growth Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Value
Shares (000)
------ ------
TELECOMMUNICATIONS -- 3.9%
67,500 Avaya* $ 1,066
41,100 Nextel Communications, Cl A* 1,095
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2,161
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TOTAL COMMON STOCK (Cost $45,332) 54,143
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CASH EQUIVALENTS -- 1.0%
298,623 Dreyfus Cash Management Fund 299
298,623 Fidelity Institutional Money Market Fund 299
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TOTAL CASH EQUIVALENTS (Cost $598) 598
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TOTAL INVESTMENTS (COST $45,930) -- 99.0% 54,741
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OTHER ASSETS AND LIABILITIES -- 1.0%
Investment Adviser Fees Payable (32)
Shareholder Servicing Fees Payable (5)
Administrative Fees Payable (5)
Other Assets and Liabilities, Net 576
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TOTAL OTHER ASSETS AND LIABILITIES 534
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NET ASSETS:
Fund Shares of Institutional Shares (unlimited authorization -- no par
value) Based on 4,481,231 Outstanding Shares of Beneficial
Interest 46,721
Accumulated Net Investment Loss (108)
Accumulated Net Realized Loss on Investments (149)
Net Unrealized Appreciation on Investments 8,811
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TOTAL NET ASSETS -- 100.0% $55,275
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NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $ 12.33
=======
* NON-INCOME PRODUCING SECURITY
CL -- CLASS
LTD. -- LIMITED
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 11 www.bishopstreetfunds.com
Tax Managed Equity Fund (UNAUDITED)
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TOP TEN EQUITY HOLDINGS
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Percentage of
Investments
---------------------------------------------------------------------
1. Exxon Mobil 4.2%
---------------------------------------------------------------------
2. General Electric 4.1%
---------------------------------------------------------------------
3. Pfizer 3.2%
---------------------------------------------------------------------
4. Citigroup 3.2%
---------------------------------------------------------------------
5. Cisco Systems 3.1%
---------------------------------------------------------------------
6. Symantec 3.1%
---------------------------------------------------------------------
7. Microsoft 3.1%
---------------------------------------------------------------------
8. Amgen 3.1%
---------------------------------------------------------------------
9. Pentair 3.0%
---------------------------------------------------------------------
10. American International Group 2.8%
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STATEMENT OF NET ASSETS
Market
Value
Shares (000)
------ ------
COMMON STOCK -- 98.7%
CONSUMER DISCRETION -- 10.1%
6,727 Brinker International* $ 230
4,300 Carnival 202
6,045 Clear Channel Communications 223
7,855 Harley-Davidson 487
11,930 Home Depot 420
14,300 InterActiveCorp* 431
4,960 Omnicom Group 376
8,600 Target 365
6,730 Tiffany 248
14,750 Time Warner* 259
4,920 Univision Communications, Cl A* 157
-------
3,398
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CONSUMER STAPLES -- 10.9%
7,470 Anheuser-Busch 404
11,380 Avon Products 525
9,940 Coca-Cola 502
Bishop Street Funds 12
Tax Managed Equity Fund (UNAUDITED)
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STATEMENT OF NET ASSETS
(CONTINUED)
Market
Value
Shares (000)
--------- ------
CONSUMER STAPLES (CONTINUED)
11,170 CVS $ 469
6,880 PepsiCo 371
11,940 Procter & Gamble 650
14,240 Wal-Mart Stores 751
-------
3,672
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ENERGY -- 7.4%
6,560 Anadarko Petroleum 385
2,160 ChevronTexaco 203
6,000 Devon Energy 396
26,100 Exxon Mobil 1,159
11,640 Halliburton 352
-------
2,495
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FINANCIALS -- 18.1%
10,500 Allstate 489
7,580 American Express 390
10,700 American International Group 763
19,010 Citigroup 884
3,000 Goldman Sachs Group 283
13,500 JP Morgan Chase 523
5,820 MBIA 332
5,760 Merrill Lynch 311
5,210 Morgan Stanley 275
5,482 St. Paul Travelers 222
10,970 Wachovia 488
10,540 Washington Mutual 407
12,230 Wells Fargo 700
-------
6,067
-------
HEALTH CARE -- 15.1%
7,000 Accredo Health* 272
15,400 Amgen* 840
7,521 Biogen Idec* 476
10,000 Forest Laboratories* 566
3,670 Genzyme* 174
7,700 Gilead Sciences* 516
13,360 Johnson & Johnson 744
5,680 Medtronic 277
25,808 Pfizer 885
5,380 UnitedHealth Group 335
-------
5,085
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June 30, 2004 13 www.bishopstreetfunds.com
Tax Managed Equity Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Market
Value
Shares (000)
------ ------
INDUSTRIALS -- 11.9%
7,960 3M $ 716
5,030 General Dynamics 499
34,960 General Electric 1,133
4,900 Illinois Tool Works 470
24,600 Pentair 828
4,840 United Parcel Service, Cl B 364
-------
4,010
-------
INFORMATION TECHNOLOGY -- 18.8%
4,700 Analog Devices 221
23,500 Applied Materials* 461
36,100 Cisco Systems* 856
13,060 Dell* 468
26,740 Intel 738
5,400 International Business Machines 476
8,770 Linear Technology 346
7,270 Mercury Interactive* 362
29,700 Microsoft 848
22,700 Nokia ADR 330
10,000 Paychex 339
19,400 Symantec* 849
-------
6,294
-------
MATERIALS -- 3.3%
15,960 Alcoa 527
8,100 EI Du Pont de Nemours 360
5,220 Praxair 208
-------
1,095
-------
TELECOMMUNICATIONS -- 3.1%
11,760 SBC Communications 285
9,830 Verizon Communications 356
18,000 Vodafone Group ADR 398
-------
1,039
-------
TOTAL COMMON STOCK (Cost $26,976) 33,155
-------
CASH EQUIVALENTS -- 1.4%
223,945 Dreyfus Cash Management Fund 224
223,945 Fidelity Institutional Money Market Fund 224
-------
TOTAL CASH EQUIVALENTS (Cost $448) 448
-------
TOTAL INVESTMENTS (COST $27,424)-- 100.1% 33,603
-------
Bishop Street Funds 14
Tax Managed Equity Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-----
OTHER ASSETS AND LIABILITIES -- (0.1)%
Investment Adviser Fees Payable $ (18)
Shareholder Servicing Fees Payable (3)
Administrative Fees Payable (3)
Other Assets and Liabilities, Net (14)
-------
TOTAL OTHER ASSETS AND LIABILITIES (38)
-------
NET ASSETS:
Fund Shares of Institutional Shares (unlimited authorization -- no par
value) Based on 2,719,133 Outstanding Shares of Beneficial Interest 26,657
Distribution in Excess of Net Investment Income (13)
Accumulated Net Realized Gain on Investments 742
Net Unrealized Appreciation on Investments 6,179
-------
TOTAL NET ASSETS -- 100.0% $33,565
=======
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $ 12.34
=======
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 15 www.bishopstreetfunds.com
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS*
- --------------------------------------------------------------------------------
Percentage
Coupon Maturity of
Rate Date Investments*
- --------------------------------------------------------------------------------
1. U.S. Treasury Bond 7.250% 05/15/16 8.1%
--------------------------------------------------------------------------
2. FNMA 3.750% 09/15/08 4.1%
--------------------------------------------------------------------------
3. U.S. Treasury Bond 6.250% 08/15/23 3.5%
--------------------------------------------------------------------------
4. FNMA 7.250% 01/15/10 3.4%
--------------------------------------------------------------------------
5. U.S. Treasury Bond 7.500% 11/15/16 3.0%
--------------------------------------------------------------------------
6. Pharmacia 5.750% 12/01/05 2.5%
--------------------------------------------------------------------------
7. Morgan Stanley 6.600% 04/01/12 2.2%
--------------------------------------------------------------------------
8. FNMA 2.540% 01/12/07 2.2%
--------------------------------------------------------------------------
9. U.S. Treasury Bond 6.375% 08/15/27 2.2%
--------------------------------------------------------------------------
10. FHLMC 5.125% 10/15/08 2.2%
- --------------------------------------------------------------------------------
*EXCLUDES SECURITIES PURCHASED WITH CASH COLLATERAL RECEIVED FROM SECURITIES
LENDING.
STATEMENT OF NET ASSETS
Face Market
Amount Value
(000) (000)
------- ------
CORPORATE OBLIGATIONS -- 60.0%
AEROSPACE & DEFENSE -- 5.3%
Boeing
$2,800 7.875%, 02/15/05 $ 2,895
General Dynamics
2,850 4.500%, 08/15/10 2,837
United Technologies
1,500 6.350%, 03/01/11 1,629
--------
7,361
--------
BANKS -- 1.8%
Bank of America (A)
2,600 4.875%, 01/15/13 2,527
--------
BIOTECHNOLOGY -- 2.5%
Pharmacia
3,275 5.750%, 12/01/05 3,414
--------
Bishop Street Funds 16
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------- ------
BROADCASTING & CABLE -- 2.4%
Cox Communications
$1,400 6.750%, 03/15/11 $ 1,510
TCI Communications
1,550 7.875%, 08/01/13 1,765
--------
3,275
--------
COMPUTER HARDWARE -- 1.1%
Dell
1,400 6.550%, 04/15/08 1,526
--------
DIVERSE FINANCIAL SERVICES -- 12.8%
Citigroup
2,600 6.750%, 12/01/05 2,743
Ford Motor Credit
1,400 7.375%, 10/28/09 1,494
Ford Motor Credit MTN
1,400 7.750%, 02/15/07 1,509
General Electric Capital MTN, Ser A
2,600 5.450%, 01/15/13 2,636
General Motors Acceptance
1,400 7.000%, 02/01/12 1,439
1,400 6.750%, 01/15/06 1,467
525 4.500%, 07/15/06 531
Goldman Sachs Group
2,600 6.600%, 01/15/12 2,798
Morgan Stanley
2,800 6.600%, 04/01/12 3,014
--------
17,631
--------
FINANCIALS (B) -- 11.6%
Bear Stearns
3,984 1.650%, 07/07/04 3,984
First Tennessee Bank MTN (C)
7,968 1.080%, 06/07/05 7,967
Lehman Brothers MTN (C)
3,984 1.590%, 05/16/05 3,984
--------
15,935
--------
FORESTRY -- 1.1%
Weyerhaeuser
1,420 6.750%, 03/15/12 1,538
--------
June 30, 2004 17 www.bishopstreetfunds.com
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------- ------
GENERAL MERCHANDISE -- 3.1%
Target
$1,300 6.350%, 01/15/11 $ 1,417
Wal-Mart Stores
2,625 8.000%, 09/15/06 2,888
--------
4,305
--------
HEALTH CARE -- 1.1%
UnitedHealth Group
1,400 5.200%, 01/17/07 1,456
--------
HOUSEHOLD PRODUCTS -- 0.5%
Newell Rubbermaid
650 6.600%, 11/15/06 696
--------
MACHINERY - INDUSTRIAL -- 1.1%
Masco
1,400 5.875%, 07/15/12 1,454
--------
OIL & GAS - EQUIPMENT/SERVICES -- 1.0%
Baker Hughes
1,300 6.000%, 02/15/09 1,390
--------
OIL & GAS - EXPLORATION/PRODUCTION -- 3.3%
Anadarko Petroleum
1,250 7.200%, 03/15/29 1,375
1,450 6.750%, 05/15/08 1,584
Ocean Energy
1,450 7.250%, 10/01/11 1,600
--------
4,559
--------
PHARMACEUTICALS -- 2.1%
Abbott Laboratories
2,700 6.400%, 12/01/06 2,899
--------
RETAIL - DRUGS -- 1.1%
CVS
1,400 5.625%, 03/15/06 1,459
--------
RETAIL - FOOD -- 1.9%
Kraft Foods
1,400 6.250%, 06/01/12 1,474
McDonald's MTN, Ser E
1,000 5.950%, 01/15/08 1,072
--------
2,546
--------
Bishop Street Funds 18
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
---------- ------
SEMI-CONDUCTORS -- 2.1%
Constellation Energy Group
$1,400 7.000%, 04/01/12 $ 1,525
Duke Energy
1,425 4.200%, 10/01/08 1,400
--------
2,925
--------
TELECOMMUNICATIONS -- 3.1%
AT&T Wireless Services
1,550 7.350%, 03/01/06 1,654
Verizon Virginia, Ser A
1,400 4.625%, 03/15/13 1,307
Vodafone Group
1,300 3.950%, 01/30/08 1,299
--------
4,260
--------
UTILITIES -- 1.0%
Dominion Resources
1,400 4.125%, 02/15/08 1,398
--------
TOTAL CORPORATE OBLIGATIONS (Cost $82,649) 82,554
--------
U.S. TREASURY OBLIGATIONS -- 25.9%
U.S. Treasury Bonds
3,250 7.500%, 11/15/16 (A) 4,006
9,000 7.250%, 05/15/16 (A) 10,880
2,600 6.375%, 08/15/27 2,935
4,200 6.250%, 08/15/23 (A) 4,651
1,350 6.000%, 02/15/26 (A) 1,455
1,950 5.375%, 02/15/31 (A) 1,967
U.S. Treasury Notes (A)
1,000 7.500%, 02/15/05 1,035
2,000 4.375%, 05/15/07 2,067
1,300 4.375%, 08/15/12 1,294
1,900 4.000%, 02/15/14 1,811
1,500 2.375%, 08/15/06 1,487
2,000 1.500%, 07/31/05 1,987
--------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $33,773) 35,575
--------
June 30, 2004 19 www.bishopstreetfunds.com
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Market
Face Amount Value
(000)/Shares (000)
----------- ------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 23.0%
FHLB
$1,000 6.250%, 08/13/04 $ 1,006
2,800 3.375%, 02/15/08 2,759
FHLMC
1,100 5.375%, 08/16/06 1,105
2,800 5.125%, 10/15/08 2,922
2,800 3.200%, 02/28/07 2,773
FHLMC MTN
500 2.325%, 08/26/05 500
FHLMC MTN, Ser 1
625 6.250%, 08/15/16 628
FNMA
4,000 7.250%, 01/15/10 (A) 4,554
1,400 5.500%, 07/18/12 1,411
2,800 3.875%, 11/17/08 2,760
5,600 3.750%, 09/15/08 (A) 5,515
2,800 2.877%, 07/17/04 (C) 2,784
3,000 2.540%, 01/12/07 2,944
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $31,701) 31,661
--------
COMMERCIAL PAPER (B) -- 8.7%
Countrywide Home Loans
3,984 1.330%, 07/06/04 3,983
Morgan Stanley (C)
7,968 1.580%, 02/18/05 7,968
--------
TOTAL COMMERCIAL PAPER (Cost $11,951) 11,951
--------
CASH EQUIVALENTS -- 1.4%
1,009,695 Dreyfus Cash Management Fund 1,010
1,009,695 Fidelity Institutional Money Market Fund 1,010
--------
TOTAL CASH EQUIVALENTS (Cost $2,020) 2,020
--------
REPURCHASE AGREEMENTS (B) -- 11.0%
Bank of America 1.550%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase price
$8,698,127, (collateralized by a mortgage obligation,
$8,698 total market value $8,871,708) 8,698
Lehman Brothers 1.580%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase
price $6,472,909, (collateralized by a mortgage
obligation,
6,473 total market value $6,602,078) 6,473
--------
TOTAL REPURCHASE AGREEMENTS (Cost $15,171) 15,171
--------
TOTAL INVESTMENTS (COST $177,265) -- 130.0% 178,932
--------
Bishop Street Funds 20
High Grade Income Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-----
OTHER ASSETS AND LIABILITIES -- (30.0)%
Payable Upon Return of Securities Loaned $(43,057)
Investment Adviser Fees Payable (46)
Administrative Fees Payable (13)
Shareholder Servicing Fees Payable (11)
Trustees' Fees Payable (1)
Other Assets and Liabilities, Net 1,858
--------
TOTAL OTHER ASSETS AND LIABILITIES (41,270)
--------
NET ASSETS:
Fund Shares of Institutional Shares (unlimited
authorization -- no par value) Based on 13,527,753
Outstanding Shares of Beneficial Interest 135,242
Fund Shares of Class A (unlimited authorization -- no par value)
Based on 27,924 Outstanding Shares of Beneficial Interest 264
Undistributed Net Investment Income 1
Accumulated Net Realized Gain on Investments 488
Net Unrealized Appreciation on Investments 1,667
--------
TOTAL NET ASSETS -- 100.0% $137,662
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($137,379,453 / 13,527,753 SHARES) $ 10.16
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A
($282,318 / 27,924 SHARES) $ 10.11
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A SHARES ($10.11 / 95.25%) $ 10.61
========
(A) THE SECURITY OR A PORTION OF THIS SECURITY IS ON LOAN AT JUNE 30, 2004 (SEE
NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS). THE TOTAL VALUE OF SECURITIES
ON LOAN AT JUNE 30, 2004 WAS $42,203,314.
(B) THESE SECURITIES WERE PURCHASED WITH CASH COLLATERAL RECEIVED FROM
SECURITIES LENDING (SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS). THE
TOTAL VALUE OF SUCH SECURITIES AS OF JUNE 30, 2004 WAS $43,057,281.
(C) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 2004. THE MATURITY DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 21 www.bishopstreetfunds.com
Hawaii Municipal Bond Fund (UNAUDITED)
- --------------------------------------------------------------------------------
Top Ten Holdings
- --------------------------------------------------------------------------------
Percentage
Coupon Maturity of
Rate Date Investments
- --------------------------------------------------------------------------------
1. Honolulu City & County GO 5.000% 07/01/19 2.2%
--------------------------------------------------------------------------
2. Hawaii State GO 4.750% 04/01/18 2.2%
--------------------------------------------------------------------------
3. Hawaii State Highway RB 5.250% 07/01/15 2.1%
--------------------------------------------------------------------------
4. Hawaii State Airport System RB 5.750% 07/01/17 2.1%
--------------------------------------------------------------------------
5. Hawaii State Highway RB 6.000% 07/01/09 2.1%
--------------------------------------------------------------------------
6. Department of Budget & Finance RB 1.120% 07/01/04 1.9%
--------------------------------------------------------------------------
7. Hawaii State Airport System RB 6.500% 07/01/14 1.7%
--------------------------------------------------------------------------
8. Department of Budget & Finance RB 5.750% 07/01/06 1.7%
--------------------------------------------------------------------------
9. Hawaii State GO 5.250% 04/01/12 1.6%
--------------------------------------------------------------------------
10. Honolulu City & County RB 5.250% 07/01/18 1.6%
- --------------------------------------------------------------------------------
Statement of Net Assets
Face Market
Amount Value
(000) (000)
-------- -------
MUNICIPAL BONDS -- 97.9%
CALIFORNIA -- 1.3%
California State, GO
$1,000 5.300%, 04/01/29 $ 1,001
500 4.000%, 04/01/07 517
760 3.625%, 02/01/12 735
--------
2,253
--------
HAWAII -- 85.0%
Department of Budget & Finance, Electric &
Subsidiary Project, Ser B, RB
1,000 5.000%, 12/01/22 993
Department of Budget & Finance, Hawaiian
Electric, Ser A, RB, AMBAC Insured
2,000 5.500%, 12/01/14 2,169
Department of Budget & Finance, Hawaiian
Electric, Ser A, RB, AMT, MBIA Insured
785 6.200%, 05/01/26 834
725 5.650%, 10/01/27 755
Bishop Street Funds 22
Hawaii Municipal Bond Fund (UNAUDITED)
- -----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------- --------
HAWAII (CONTINUED)
Department of Budget & Finance, Hawaiian
Electric, Ser B, RB, AMT, AMBAC Insured
$1,000 5.750%, 12/01/18 $ 1,067
Department of Budget & Finance, Hawaiian
Electric, Ser C, RB, AMT, AMBAC Insured
1,000 6.200%, 11/01/29 1,087
Department of Budget & Finance, Kapiolani
Health, RB
100 6.250%, 07/01/21 102
Department of Budget & Finance, North Hawaii
Community Hospital, RB (LOC: First
Hawaiian Bank) (B)
3,080 1.120%, 07/01/04 3,080
Department of Budget & Finance, Queens
Health Systems, Ser A, RB, Pre-Refunded
@ 102 (A)
1,450 5.875%, 07/01/06 1,584
2,505 5.750%, 07/01/06 2,732
Department of Budget & Finance, Queens
Health Systems, Ser B, RB, MBIA Insured
750 5.250%, 07/01/11 796
1,445 5.250%, 07/01/12 1,525
1,275 5.250%, 07/01/13 1,342
1,000 5.250%, 07/01/14 1,050
Department of Budget & Finance, Special
Purpose Mortgage, Hawaiian Electric Project,
Ser A, RB, AMT, MBIA Insured
1,090 6.600%, 01/01/25 1,124
Department of Budget & Finance, Special
Purpose Mortgage, Kapiolani Health Care
System Project, RB
1,510 6.300%, 07/01/08 1,529
Department of Budget & Finance, Special
Purpose Mortgage, St. Francis Medical Center
Project, RB, FSA Insured
930 6.500%, 07/01/22 933
Harbor Capital Improvement, RB, AMT,
FGIC Insured
305 6.200%, 07/01/08 311
Harbor Capital Improvement, RB, AMT,
MBIA Insured
2,000 5.500%, 07/01/27 2,030
545 5.400%, 07/01/09 585
Harbor System, Ser A, RB, AMT, FSA Insured
2,025 5.750%, 07/01/17 2,179
1,210 5.700%, 07/01/16 1,304
1,000 5.600%, 07/01/15 1,078
Harbor System, Ser B, RB, AMT, AMBAC Insured
200 5.500%, 07/01/19 211
Harbor System, Ser B, RB, AMT, FSA Insured
1,000 5.000%, 01/01/13 1,058
June 30, 2004 23 www.bishopstreetfunds.com
Hawaii Municipal Bond Fund (UNAUDITED)
- -----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------ --------
HAWAII (CONTINUED)
Hawaii County, Ser A, GO, FGIC Insured
$ 450 5.600%, 05/01/12 $ 503
430 5.600%, 05/01/13 481
400 5.550%, 05/01/09 442
630 5.500%, 07/15/12 698
Hawaii County, Ser A, GO, FSA Insured
1,000 5.625%, 05/15/19 1,083
500 5.400%, 05/15/15 533
1,000 5.250%, 05/15/11 1,089
1,000 5.000%, 07/15/23 1,011
Hawaii State, Airport System, RB, AMT,
FGIC Insured
3,235 5.750%, 07/01/17 3,429
200 5.250%, 07/01/21 201
Hawaii State, Airport System, Second Ser,
RB, AMT, ETM
60 6.900%, 07/01/12 70
Hawaii State, Airport System, Second Ser,
RB, AMT, ETM, MBIA Insured
1,100 6.900%, 07/01/12 1,277
Hawaii State, Airport System, Ser B, RB,
AMT, FGIC Insured
1,500 6.625%, 07/01/18 1,703
2,500 6.500%, 07/01/14 2,831
100 6.000%, 07/01/19 108
Hawaii State, Highway, RB
1,000 6.000%, 07/01/08 1,114
3,000 6.000%, 07/01/09 3,378
375 5.250%, 07/01/10 401
500 5.250%, 07/01/12 535
2,000 5.250%, 07/01/16 2,129
Hawaii State, Highway, RB, FGIC Insured
3,280 5.250%, 07/01/15 3,468
405 5.000%, 07/01/16 421
Hawaii State, Housing, Finance & Development,
Affordable Rental Housing Program, Ser A, RB
750 6.050%, 07/01/22 770
330 6.000%, 07/01/15 340
Hawaii State, Housing, Finance & Development,
Affordable Rental Housing Program, Ser A, RB,
AMT, FNMA Collateral
1,405 5.750%, 07/01/30 1,425
52 5.550%, 07/01/07 53
1,205 5.400%, 07/01/30 1,206
225 5.250%, 07/01/13 231
Hawaii State, Housing, Finance & Development,
Single-Family Mortgage Purchase, Ser A, RB,
AMT, FNMA Collateral
150 4.900%, 07/01/28 152
Bishop Street Funds 24
Hawaii Municipal Bond Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
-------- --------
HAWAII (CONTINUED)
Hawaii State, Housing, Finance & Development,
Single-Family Mortgage Purchase, Ser B, RB,
FNMA Collateral
$1,000 5.450%, 07/01/17 $ 1,025
Hawaii State, Housing, Finance & Development,
University of Hawaii, Faculty Housing Project,
RB, AMBAC Insured
700 5.650%, 10/01/16 737
415 5.000%, 10/01/06 434
395 4.850%, 10/01/05 409
Hawaii State, Kapolei Office Building, Ser A,
COP, AMBAC Insured
1,475 5.250%, 05/01/13 1,581
1,000 5.000%, 05/01/08 1,075
1,000 5.000%, 05/01/14 1,049
1,100 5.000%, 05/01/15 1,144
1,500 5.000%, 05/01/16 1,563
1,000 5.000%, 05/01/17 1,038
500 5.000%, 05/01/18 516
Hawaii State, No. 1 Capitol District State
Office, COP, MBIA Insured
1,000 5.200%, 05/01/14 1,055
175 5.000%, 05/01/11 188
Hawaii State, Ser CL, GO
1,000 6.000%, 03/01/09 1,120
Hawaii State, Ser CL, GO, MBIA Insured
555 6.000%, 03/01/08 614
Hawaii State, Ser CM, GO, FGIC Insured
2,000 6.500%, 12/01/13 2,391
500 6.000%, 12/01/09 566
1,500 6.000%, 12/01/11 1,715
Hawaii State, Ser CN, GO, FGIC Insured
500 5.500%, 03/01/14 542
500 5.250%, 03/01/12 537
540 5.250%, 03/01/17 569
Hawaii State, Ser CO, GO, FGIC Insured
200 6.000%, 09/01/05 210
Hawaii State, Ser CP, GO, FGIC Insured
300 5.000%, 10/01/16 312
Hawaii State, Ser CR, GO, MBIA Insured
500 5.750%, 04/01/09 556
270 5.250%, 04/01/11 287
2,500 5.250%, 04/01/12 2,667
3,500 4.750%, 04/01/18 3,545
Hawaii State, Ser CU, GO, MBIA Insured
500 5.750%, 10/01/11 557
550 5.750%, 10/01/12 605
June 30, 2004 25 www.bishopstreetfunds.com
Hawaii Municipal Bond Fund (UNAUDITED)
- -----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------- --------
HAWAII (CONTINUED)
Hawaii State, Ser CV, GO, FGIC Insured
$1,000 5.250%, 08/01/21 $ 1,036
Hawaii State, Ser CX, GO, FSA Insured
1,000 5.500%, 02/01/21 1,064
2,000 5.000%, 02/01/19 2,060
Hawaii State, Ser CZ, GO, FSA Insured,
Pre-Refunded @ 100 (A)
1,860 5.250%, 07/01/12 2,056
Hawaiian Home Lands Department, RB
1,250 4.000%, 07/01/05 1,277
Honolulu City & County, Board of Water
Supply, RB, Pre-Refunded @ 101 (A)
1,000 5.800%, 07/01/06 1,083
250 5.250%, 07/01/06 268
Honolulu City & County, Board of Water
Supply, Ser A, RB, FGIC Insured
2,000 5.000%, 07/01/24 2,020
2,000 5.000%, 07/01/33 1,993
Honolulu City & County, FHA-Smith-
Beretania-8A, RB, MBIA Insured
1,000 5.450%, 01/01/25 1,001
Honolulu City & County, GO
820 5.400%, 09/27/07 888
200 1.300%, 09/11/08 200
Honolulu City & County, GO, ETM
230 6.000%, 12/01/09 261
Honolulu City & County, Ser A, GO
55 6.000%, 01/01/10 62
Honolulu City & County, Ser A, GO, ETM
500 6.000%, 01/01/09 561
95 6.000%, 01/01/10 108
245 5.700%, 04/01/09 272
Honolulu City & County, Ser A, GO, ETM,
MBIA Insured
135 6.000%, 11/01/10 154
Honolulu City & County, Ser A, GO,
FSA Insured,
Pre-Refunded @ 100 (A)
400 5.125%, 09/01/11 441
Honolulu City & County, Ser A, GO,
MBIA Insured
365 6.000%, 11/01/10 415
1,000 5.250%, 03/01/27 1,015
Honolulu City & County, Ser B, GO,
ETM, FGIC Insured
635 5.500%, 10/01/11 715
Bishop Street Funds 26
Hawaii Municipal Bond Fund (UNAUDITED)
- -----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------ --------
HAWAII (CONTINUED)
Honolulu City & County, Ser B, GO, FGIC
Insured, Pre-Refunded @ 101 (A)
$2,000 5.125%, 07/01/09 $ 2,199
2,000 5.125%, 07/01/09 2,199
Honolulu City & County, Ser C, GO,
FGIC Insured
125 5.500%, 11/01/07 136
1,200 5.125%, 07/01/11 1,297
2,100 5.125%, 07/01/15 2,206
650 5.000%, 07/01/09 702
3,500 5.000%, 07/01/19 3,597
Honolulu City & County, Ser D, GO, AMT,
FGIC Insured
245 4.850%, 02/01/10 260
Honolulu City & County, Waipahu Towers Project,
Ser A, RB, AMT, GNMA Collateral
200 6.900%, 06/20/35 206
Honolulu City & County, Waste Water, 2nd Board
Resolution, Junior Ser, RB, FGIC Insured
1,000 5.250%, 07/01/12 1,081
900 5.250%, 07/01/13 971
1,000 5.250%, 07/01/17 1,051
2,500 5.250%, 07/01/18 2,618
1,000 5.000%, 07/01/23 1,005
Kauai County, Public Improvement, Ser B, GO,
MBIA Insured
175 5.200%, 08/01/15 185
165 5.150%, 08/01/14 175
155 5.100%, 08/01/13 164
120 5.050%, 08/01/12 127
140 5.000%, 08/01/11 149
135 4.950%, 08/01/10 143
100 4.850%, 08/01/09 106
120 4.750%, 08/01/08 128
Kauai County, Ser A, GO, FGIC Insured,
Pre-Refunded @ 100 (A)
1,135 6.250%, 08/01/10 1,313
1,480 6.250%, 08/01/10 1,712
1,335 6.250%, 08/01/10 1,544
1,050 6.250%, 08/01/10 1,215
Kauai County, Ser A, GO, MBIA Insured
750 5.625%, 08/01/18 814
Maui County, Ser A, GO
485 5.375%, 03/01/12 529
June 30, 2004 27 www.bishopstreetfunds.com
Hawaii Municipal Bond Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face Market
Amount Value
(000) (000)
------- --------
HAWAII (CONTINUED)
Maui County, Ser A, GO, FGIC Insured
$ 100 5.125%, 03/01/14 $ 105
615 5.100%, 03/01/19 629
200 5.000%, 03/01/13 209
795 5.000%, 03/01/18 813
Maui County, Ser A, GO, FGIC Insured,
Pre-Refunded @ 101 (A)
500 5.200%, 09/01/07 532
Maui County, Ser A, GO, MBIA Insured
1,840 5.000%, 03/01/20 1,886
Maui County, Ser A, GO, MBIA Insured,
Pre-Refunded @ 101 (A)
250 5.750%, 06/01/06 270
Maui County, Ser B, GO, MBIA Insured
500 5.000%, 09/01/17 526
Maui County, Ser C, GO, FGIC Insured
500 5.200%, 03/01/16 526
790 5.150%, 03/01/15 828
Pacific Health Special Purpose, Ser A, RB
500 5.600%, 07/01/33 476
University of Hawaii, Ser A, RB, FGIC Insured
500 5.500%, 07/15/21 534
University of Hawaii, Ser B, RB, FSA Insured
320 5.250%, 10/01/16 341
775 5.250%, 10/01/17 822
--------
146,426
--------
KENTUCKY -- 0.6%
Kenton County, Airport, RB, AMT, MBIA Insured
1,000 5.000%, 03/01/10 1,050
--------
MASSACHUSETTS -- 0.8%
Massachusetts State, Port Authority,
Ser B, RB, AMT, FSA Insured
1,265 5.500%, 07/01/14 1,330
--------
NEW YORK -- 0.6%
New York State, Tobacco Settlement
Financing Corp, Ser B-1, RB
1,100 4.000%, 06/01/12 1,074
--------
OREGON -- 0.6%
Portland, Airport & Marina
Improvements, Ser 12C, RB, AMT,
FGIC Insured
1,000 4.750%, 07/01/10 1,035
--------
Bishop Street Funds 28
Hawaii Municipal Bond Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Market
Face Amount Value
(000)/Shares (000)
-------------- --------
PUERTO RICO -- 8.6%
Puerto Rico Commonwealth, GO, MBIA Insured
$1,500 6.500%, 07/01/10 $ 1,753
500 6.500%, 07/01/14 600
Puerto Rico Commonwealth, Public Improvement,
GO, FSA Insured
1,000 5.000%, 07/01/21 1,025
Puerto Rico Commonwealth, Public Improvement,
Ser A, GO
1,000 5.000%, 07/01/10 1,071
1,000 5.000%, 07/01/11 1,071
1,000 5.000%, 07/01/27 969
Puerto Rico Commonwealth, Ser A, GO
1,000 5.000%, 07/01/30 1,051
Puerto Rico, Electric Power Authority,
Ser DD, RB, FSA Insured
1,000 5.000%, 07/01/28 1,000
Puerto Rico, Electric Power Authority,
Ser HH, RB, FSA Insured
500 5.250%, 07/01/29 510
Puerto Rico, Housing, Banking & Finance
Agency, Single-Family Mortgage, Affordable
Housing Mortgage, Portfolio I, RB, AMT,
GNMA/FNMA/FHLMC Collateral
180 6.100%, 10/01/15 184
Puerto Rico, Housing Financial Authority,
Capital Funding Program, RB
2,500 5.000%, 12/01/16 2,600
1,000 4.500%, 12/01/09 1,054
Puerto Rico, Industrial Tourist Educational
Medical Environmental Control Facilities,
Hospital Auxilio Mutuo Obligation Group,
Ser A, RB, MBIA Insured
300 6.250%, 07/01/24 312
University of Puerto Rico, Ser O, RB,
MBIA Insured
1,500 5.750%, 06/01/19 1,656
--------
14,856
--------
TEXAS -- 0.4%
Channelview, Independent School District,
Ser B, GO
550 5.250%, 08/15/19 578
--------
TOTAL MUNICIPAL BONDS (Cost $162,159) 168,602
--------
CASH EQUIVALENTS -- 0.8%
701,666 Dreyfus Tax-Exempt Cash Management Fund 702
701,665 Fidelity Institutional Money Market
Tax-Exempt Fund 702
--------
TOTAL CASH EQUIVALENTS (Cost $1,404) 1,404
--------
TOTAL INVESTMENTS (COST $163,563)-- 98.7% 170,006
--------
June 30, 2004 29 www.bishopstreetfunds.com
Hawaii Municipal Bond Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-------
OTHER ASSETS AND LIABILITIES -- 1.3%
Investment Adviser Fees Payable $ (32)
Shareholder Servicing Fees Payable (14)
Administrative Fees Payable (10)
Distribution Fee Payable (6)
Trustees' Fees Payable (1)
Other Assets and Liabilities, Net 2,286
--------
TOTAL OTHER ASSETS AND LIABILITIES 2,223
--------
NET ASSETS:
Fund Shares of Institutional Shares (unlimited
authorization -- no par value) Based on 13,136,833
Outstanding Shares of Beneficial Interest 136,596
Fund Shares of Class A (unlimited authorization
-- no par value) Based on 2,697,534 Outstanding
Shares of Beneficial Interest 28,235
Undistributed Net Investment Income 33
Accumulated Net Realized Gain on Investments 922
Net Unrealized Appreciation on Investments 6,443
--------
TOTAL NET ASSETS -- 100.0% $172,229
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($142,883,160 / 13,136,833 SHARES) $ 10.88
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A
($29,345,647 / 2,697,534 SHARES) $ 10.88
========
MAXIMUM OFFERING PRICE PER SHARE --
CLASS A SHARES ($10.88 / 95.75%) $ 11.36
========
Bishop Street Funds 30
Hawaii Municipal Bond Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
(A) PRE-REFUNDED SECURITY -- THE MATURITY DATE SHOWN IS THE PRE-REFUNDED DATE.
(B) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 2004. THE MATURITY DATE SHOWN IS THE NEXT
SCHEDULED RESET DATE.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE COMPANY
AMT -- ALTERNATIVE MINIMUM TAX
COP -- CERTIFICATE OF PARTICIPATION
ETM -- ESCROWED TO MATURITY
FGIC -- FINANCIAL GUARANTEE INSURANCE CORPORATION
FHA -- FEDERAL HOUSING ADMINISTRATION
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
FSA -- FINANCIAL SECURITY ASSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
LOC -- LETTER OF CREDIT
MBIA -- MUNICIPAL BOND INVESTORS ASSURANCE
RB -- REVENUE BOND
SER -- SERIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 31 www.bishopstreetfunds.com
Money Market Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
Face
Amount Value
(000) (000)
-------- -------
COMMERCIAL PAPER (D) -- 39.7%
ASSET-BACKED (E) -- 19.8%
Apreco
$4,650 1.140%, 07/19/04 $ 4,647
CRC Funding
4,500 1.100%, 07/12/04 4,499
Delaware Funding
4,500 1.100%, 07/13/04 4,498
Falcon Asset Securitization
4,500 1.140%, 07/13/04 4,498
Galaxy Funding
4,000 1.200%, 08/17/04 3,994
Greyhawk Funding
4,000 1.070%, 07/14/04 3,999
Old Line Funding
4,000 1.050%, 07/06/04 3,999
Park Avenue Receivables
4,500 1.210%, 07/15/04 4,498
Preferred Receivable Funding
4,500 1.210%, 07/13/04 4,498
Windmill Funding
5,000 1.100%, 07/12/04 4,998
Yorktown Capital
4,500 1.230%, 07/21/04 4,497
--------
48,625
--------
BANKS -- 2.4%
Svenska Handelsbank
5,000 1.230%, 10/12/04 5,000
UBS Finance
1,000 1.130%, 07/07/04 1,000
--------
6,000
--------
CONSUMER STAPLES -- 5.7%
Coca-Cola
5,000 1.160%, 07/19/04 4,997
Colgate-Palmolive
4,000 1.180%, 07/19/04 3,997
Procter & Gamble
5,000 1.190%, 07/21/04 4,997
--------
13,991
--------
Bishop Street Funds 32
Money Market Fund (UNAUDITED)
- -----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face
Amount Value
(000) (000)
-------- --------
DIVERSE FINANCIAL SERVICES -- 9.1%
CBA Finance
$5,000 1.150%, 08/16/04 $ 4,993
General Electric Capital
3,500 1.320%, 08/17/04 3,494
International Lease Finance
4,800 1.070%, 07/09/04 4,799
MassMutual Funding
4,000 1.180%, 07/21/04 3,997
Morgan Stanley
5,000 1.090%, 07/06/04 4,999
--------
22,282
--------
PHARMACEUTICALS -- 0.5%
Pfize
1,300 1.100%, 07/19/04 1,299
--------
RETAIL - FOOD -- 2.2%
Archer Daniels Midland (E)
5,300 1.080%, 08/17/04 5,293
--------
TOTAL COMMERCIAL PAPER (Cost $97,490) 97,490
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 21.5%
FHLB
2,500 1.420%, 11/10/04 (C) 2,487
4,000 1.400%, 11/12/04 (C) 3,979
3,000 2.125%, 12/15/04 3,012
1,500 1.500%, 03/01/05 1,500
4,000 1.625%, 04/15/05 4,011
1,100 1.660%, 05/16/05 1,100
FHLMC
5,000 1.179%, 08/16/04 (C) 4,992
4,000 1.190%, 08/19/04 (C) 3,994
4,500 1.201%, 12/29/04 4,473
FHLMC MTN
6,000 1.360%, 08/06/04 6,001
FNMA (C)
7,000 1.219%, 07/01/04 7,000
1,487 1.200%, 09/17/04 1,483
2,500 1.258%, 11/03/04 2,489
3,000 1.470%, 11/12/04 2,984
June 30, 2004 33 www.bishopstreetfunds.com
Money Market Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face
Amount Value
(000) (000)
------- -------
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)
$2,800 1.375%, 02/14/05 $ 2,800
540 1.610%, 05/13/05 540
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $52,845) 52,845
--------
CERTIFICATES OF DEPOSIT/BANK NOTES -- 9.0%
ABN Amro Bank
3,000 1.270%, 12/30/04 3,000
Bradford & Bingley (E)
4,000 1.120%, 01/07/05 4,000
Wells Fargo Bank
5,000 1.300%, 08/10/04 5,000
Westdeutsche Landesbank
5,000 1.320%, 01/27/05 5,000
Wilmington Trust
5,000 1.100%, 07/26/04 5,000
--------
TOTAL CERTIFICATES OF DEPOSIT/BANK NOTES
(Cost $22,000) 22,000
--------
INSURANCE FUNDING AGREEMENTS (A)(B)(E) -- 6.3%
Allstate
3,000 1.610%, 09/15/04 3,000
Metropolitan Life Insurance
5,000 1.259%, 08/02/04 5,000
Monumental Life Insurance
5,500 1.270%, 08/01/04 5,500
Travelers Insurance
2,000 1.385%, 08/30/04 2,000
--------
TOTAL INSURANCE FUNDING AGREEMENTS
(Cost $15,500) 15,500
--------
CORPORATE OBLIGATIONS (A) -- 5.9%
BANKS -- 3.8%
American Express Centurion
5,000 1.270%, 07/27/04 5,000
Barclays Bank
1,500 1.221%, 03/24/05 1,500
Chase Manhattan Bank
2,750 1.140%, 07/12/04 2,750
--------
9,250
--------
Bishop Street Funds 34
Money Market Fund (UNAUDITED)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Face
Amount Value
(000) (000)
------- -------
DIVERSE FINANCIAL SERVICES -- 2.1%
General Electric Capital
$2,300 1.250%, 07/09/04 $ 2,300
General Electric Capital MTN
2,000 1.359%, 07/19/04 2,000
Nationwide Building (E)
900 1.139%, 07/23/04 900
--------
5,200
--------
TOTAL CORPORATE OBLIGATIONS (Cost $14,450) 14,450
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (A) -- 3.3%
Granite Mortgages, Ser 2004-1, Cl 1A1
1,449 1.240%, 07/20/04 1,449
Holmes Financing, Ser 8, Cl 1A
2,500 1.189%, 07/15/04 2,500
Permanent Financing, Ser 3, Cl 1A
2,055 1.139%, 07/12/04 2,055
Permanent Financing, Ser 4, Cl 1A
2,000 1.129%, 07/12/04 2,000
--------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $8,004) 8,004
--------
MUNICIPAL BONDS (D) -- 0.8%
CONNECTICUT -- 0.8%
Yale University TECP
2,000 1.100%, 07/07/04 1,999
--------
TOTAL MUNICIPAL BONDS (Cost $1,999) 1,999
--------
REPURCHASE AGREEMENTS -- 13.5%
Deutsche Bank 1.500%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase price
$23,100,963, (collateralized by a U.S.
government obligation,
23,100 total market value $23,562,000) 23,100
Goldman Sachs Group 1.550%, dated 06/30/04,
to be repurchased on 07/01/04, repurchase price
$10,000,431, (collateralized by a U.S.
government obligation,
10,000 total market value $10,200,001) 10,000
--------
TOTAL REPURCHASE AGREEMENTS (Cost $33,100) 33,100
--------
TOTAL INVESTMENTS (COST $245,388)-- 100.0% 245,388
--------
June 30, 2004 35 www.bishopstreetfunds.com
Money Market Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-------
OTHER ASSETS AND LIABILITIES -- 0.0%
Investment Adviser Fees Payable $ (30)
Administrative Fees Payable (22)
Shareholder Servicing Fees Payable (20)
Distribution Fee Payable (3)
Trustees' Fees Payable (2)
Other Assets and Liabilities, Net 60
--------
TOTAL OTHER ASSETS AND LIABILITIES (17)
--------
NET ASSETS:
Fund Shares of Institutional Shares (unlimited authorization --
no par value) Based on 226,855,502 Outstanding Shares
of Beneficial Interest 226,856
Fund Shares of Class A (unlimited authorization --
no par value) Based on 18,538,809 Outstanding Shares of
Beneficial Interest 18,537
Distribution in Excess of Net Investment Income (1)
Accumulated Net Realized Loss on Investments (21)
--------
TOTAL NET ASSETS -- 100.0% $245,371
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($226,832,446 / 226,855,502 SHARES) $ 1.00
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS A
($18,538,823 / 18,538,809 SHARES) $ 1.00
========
(A) FLOATING RATE SECURITY -- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON JUNE 30, 2004. THE MATURITY DATE SHOWN IS
THE NEXT SCHEDULED RESET DATE.
(B) SECURITY CONSIDERED ILLIQUID.
(C) REPRESENTS THE EFFECTIVE YIELD AT THE DATE OF PURCHASE.
(D) REPRESENTS THE DISCOUNT YIELD AT THE DATE OF PURCHASE.
(E) SECURITIES SOLD WITHIN THE TERMS OF PRIVATE PLACEMENT MEMORANDUM, EXEMPT
FROM REGISTRATION UNDER SECTION 3A-4, 4(2) OR 144A OF THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY BE SOLD ONLY TO DEALERS IN THAT PROGRAM
OR OTHER "ACCREDITED INVESTORS."
CL -- CLASS
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
TECP -- TAX-EXEMPT COMMERCIAL PAPER
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 36
Treasury Money Market Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
Face
Amount Value
(000) (000)
------- -------
U.S. TREASURY OBLIGATIONS -- 44.9%
U.S. Treasury Bills (A)
$26,000 0.930%, 07/01/04 $ 26,000
3,000 1.222%, 11/18/04 2,984
U.S. Treasury Notes
5,000 7.250%, 08/15/04 5,037
5,000 6.000%, 08/15/04 5,029
9,000 2.125%, 08/31/04 9,013
5,000 7.875%, 11/15/04 5,126
26,500 5.875%, 11/15/04 26,965
10,500 2.000%, 11/30/04 10,532
4,000 1.750%, 12/31/04 4,011
2,000 1.625%, 04/30/05 2,007
--------
TOTAL U.S. TREASURY OBLIGATIONS (Cost $96,704) 96,704
--------
REPURCHASE AGREEMENTS -- 54.9%
ABN Amro 1.280%, dated 06/30/04,
due 07/01/04, repurchase price $10,000,356,
(collateralized by a U.S. treasury obligation,
10,000 total market value $10,247,464) 10,000
Credit Suisse First Boston 1.250%,
dated 06/30/04, due 07/01/04, repurchase
price $10,000,347,(collateralized by a
U.S. treasury obligation,
10,000 total market value $10,203,243) 10,000
Deutsche Bank 1.300%, dated 06/30/04,
due 07/01/04, repurchase price $39,801,437,
(collateralized by U.S. treasury obligations,
39,800 total market value $40,596,991) 39,800
Goldman Sachs Group 1.220%, dated 06/30/04,
due 07/01/04, repurchase price $10,000,339,
(collateralized by a U.S. treasury obligation,
10,000 total market value $10,208,846) 10,000
UBS Securities 1.280%, dated 06/30/04,
due 07/01/04, repurchase price $48,001,707,
(collateralized by a U.S. treasury obligation,
48,000 total market value $48,963,687) 48,000
--------
TOTAL REPURCHASE AGREEMENTS (Cost $117,800) 117,800
--------
TOTAL INVESTMENTS (COST $214,504)-- 99.8% 214,504
--------
June 30, 2004 37 www.bishopstreetfunds.com
Treasury Money Market Fund (UNAUDITED)
- ----------------------------------------------------------------------
STATEMENT OF NET ASSETS
(CONTINUED)
Value
(000)
-------
OTHER ASSETS AND LIABILITIES -- 0.2%
Investment Adviser Fee Payable $ (17)
Administrative Fees Payable (21)
Shareholder Servicing Fees Payable (18)
Trustees' Fees Payable (3)
Other Assets and Liabilities, Net 510
--------
TOTAL OTHER ASSETS AND LIABILITIES 451
--------
NET ASSETS:
Fund Shares of Institutional Shares (unlimited authorization
-- no par value) based on 214,946,724 outstanding shares
of beneficial interest 214,947
Accumulated Net Realized Gain on Investments 8
--------
TOTAL NET ASSETS -- 100.0% $214,955
========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS $ 1.00
========
(A) REPRESENTS THE EFFECTIVE YIELD AT THE DATE OF PURCHASE.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 38
Bishop Street Funds (UNAUDITED)
- ----------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004
(IN THOUSANDS)
Tax High
Strategic Managed Grade
Equity Growth Equity Income
Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend Income $1,005 $ 170 $236 $ --
Interest Income 9 3 2 3,042
Securities Lending, Net 21 -- -- 18
Less: Foreign Taxes Withheld (5) -- -- --
- ----------------------------------------------------------------------------------------
Total Investment Income 1,030 173 238 3,060
- ----------------------------------------------------------------------------------------
EXPENSES:
Investment Adviser Fees 577 188 126 379
Shareholder Servicing Fees 195 64 43 172
Administrative Fees 156 51 34 138
Distribution Fees, Class A 2 -- -- --
Transfer Agent Fees 29 6 11 28
Professional Fees 15 3 3 13
Custody Fees 8 3 2 7
Trustees' Fees 7 1 1 6
Printing Fees 5 1 1 7
Registration Fees 1 1 -- 1
Miscellaneous Expenses 5 1 1 5
- ----------------------------------------------------------------------------------------
Total Expenses 1,000 319 222 756
- ----------------------------------------------------------------------------------------
Less Waivers:
Investment Adviser Fees (30) -- (11) (69)
Shareholder Servicing Fees (117) (38) (26) (103)
Administrative Fees (68) (22) (15) (60)
- ----------------------------------------------------------------------------------------
Total Waivers (215) (60) (52) (232)
- ----------------------------------------------------------------------------------------
Total Net Expenses 785 259 170 524
- ----------------------------------------------------------------------------------------
Net Investment Income (Loss) 245 (86) 68 2,536
- ----------------------------------------------------------------------------------------
Net Realized Gain on Investments 3,103 1,128 742 603
Change in Unrealized Appreciation
(Depreciation) on Investments (2,861) 661 56 (4,010)
- ----------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments 242 1,789 798 (3,407)
- ----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting from Operations $ 487 $1,703 $866 $ (871)
========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 39 www.bishopstreetfunds.com
Bishop Street Funds (UNAUDITED)
- -----------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004
(IN THOUSANDS)
Hawaii Treasury
Municipal Money Money
Bond Market Market
Fund Fund Fund
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME:
Interest Income $ 4,015 $1,310 $1,322
- ----------------------------------------------------------------------------------------
Total Investment Income 4,015 1,310 1,322
- ----------------------------------------------------------------------------------------
EXPENSES:
Investment Adviser Fees 311 346 376
Shareholder Servicing Fees 222 288 313
Administrative Fees 178 231 251
Distribution Fees, Class A 38 22 --
Transfer Agent Fees 30 37 26
Professional Fees 16 23 24
Custody Fees 9 11 13
Trustees' Fees 8 10 11
Printing Fees 7 11 13
Registration Fees 1 2 2
Miscellaneous Expenses 14 2 17
- ----------------------------------------------------------------------------------------
Total Expenses 834 983 1,046
- ----------------------------------------------------------------------------------------
Less Waivers:
Investment Adviser Fees (57) (112) (198)
Shareholder Servicing Fees (133) (173) (188)
Administrative Fees (116) (100) (109)
- ----------------------------------------------------------------------------------------
Total Waivers (306) (385) (495)
- ----------------------------------------------------------------------------------------
Total Net Expenses 528 598 551
- ----------------------------------------------------------------------------------------
Net Investment Income 3,487 712 771
- ----------------------------------------------------------------------------------------
Net Realized Gain on Investments 718 1 --
Change in Unrealized Depreciation
on Investments (6,013) -- --
- ----------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments (5,295) 1 --
- ----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
Resulting from Operations $(1,808) $ 713 $ 771
========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 40
Bishop Street Funds
- -----------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2003
(IN THOUSANDS)
Equity Fund
- ------------------------------------------------------------------------------------------------
2004 2003
- ------------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES FROM OPERATIONS:
Net Investment Income $ 245 $ 655
Net Realized Gain on Investments 3,103 1,685
Change in Unrealized Appreciation (Depreciation)
on Investments (2,861) 30,565
- ------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations 487 32,905
- ------------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class Shares (240) (650)
Class A Shares (1) (3)
- ------------------------------------------------------------------------------------------------
Total Dividends (241) (653)
- ------------------------------------------------------------------------------------------------
Changes in Net Assets 246 32,252
- ------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Institutional Class Shares:
Proceeds from Shares Issued 6,642 11,293
Reinvestments of Cash Distributions 151 393
Cost of Shares Redeemed (13,879) (17,181)
- -------------------------------------------------------------------------------------------------
Total Institutional Class Capital Share Transactions (7,086) (5,495)
- -------------------------------------------------------------------------------------------------
Class A Shares:
Proceeds from Shares Issued 153 143
Reinvestments of Cash Distributions -- 2
Cost of Shares Redeemed (52) (521)
- -------------------------------------------------------------------------------------------------
Total Class A Capital Share Transactions 101 (376)
- -------------------------------------------------------------------------------------------------
Net Decrease in Net Assets
From Capital Share Transactions (6,985) (5,871)
- -------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets (6,739) 26,381
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 157,965 131,584
- --------------------------------------------------------------------------------------------------
End of Period $151,226 $157,965
==================================================================================================
Undistributed Net Investment Income $ 13 $ 9
==================================================================================================
SHARE TRANSACTIONS:
Institutional Class Shares:
Shares Issued 691 1,341
Shares Issued in Lieu of Cash Distributions 16 46
Shares Redeemed (1,437) (2,169)
- --------------------------------------------------------------------------------------------------
Total Institutional Class Share Transactions (730) (782)
- --------------------------------------------------------------------------------------------------
Class A Shares:
Shares Issued 16 17
Shares Issued in Lieu of Cash Distributions -- 1
Shares Redeemed (6) (64)
- --------------------------------------------------------------------------------------------------
Total Class A Share Transactions 10 (46)
- --------------------------------------------------------------------------------------------------
Net Decrease in Shares Outstanding from Share Transactions (720) (828)
==================================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 41 www.bishopstreetfunds.com
Bishop Street Funds
- -----------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2003
(IN THOUSANDS)
Strategic Tax Managed
Growth Fund Equity Fund
- ------------------------------------------------------------------------------------------
2004 2003 2004 2003
- ------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES FROM OPERATIONS:
Net Investment Income (Loss) $ (86) $ (167) $ 68 $ 205
Net Realized Gain on Investments 1,128 758 742 19
Change in Unrealized Appreciation
on Investments 661 8,983 56 6,553
- ------------------------------------------------------------------------------------------
Increase in Net Assets Resulting From Operations 1,703 9,574 866 6,777
- ------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class Shares -- -- (67) (204)
Capital Gains:
Institutional Class Shares -- -- -- (46)
- ------------------------------------------------------------------------------------------
Total Dividends and Distributions -- -- (67) (250)
- ------------------------------------------------------------------------------------------
Changes in Net Assets 1,703 9,574 799 6,527
- ------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Institutional Class Shares:
Proceeds from Shares Issued 10,724 20,073 498 8,008
Reinvestments of Cash Distributions -- -- 2 6
Cost of Shares Redeemed (3,997) (2,701) (2,542) (4,368)
- ------------------------------------------------------------------------------------------
Total Institutional Class Capital Share
Transactions 6,727 17,372 (2,042) 3,646
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
From Capital Share Transactions 6,727 17,372 (2,042) 3,646
- ------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 8,430 26,946 (1,243) 10,173
- ------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 46,845 19,899 34,808 24,635
- ------------------------------------------------------------------------------------------
End of Period $55,275 $46,845 $33,565 $34,808
==========================================================================================
Distributions in Excess of Net Investment
Income/Accumulated Net Investment Loss $ (108) $ (22) $ (13) $ (14)
==========================================================================================
SHARE TRANSACTIONS:
Institutional Class Shares:
Shares Issued 883 1,873 40 802
Shares Issued in Lieu of Cash Distributions -- -- -- 1
Shares Redeemed (327) (251) (207) (422)
- ------------------------------------------------------------------------------------------
Total Institutional Class Share
Transactions 556 1,622 (167) 381
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares Outstanding from
Share Transactions 556 1,622 (167) 381
==========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 42
Bishop Street Funds
- ----------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2003
(IN THOUSANDS)
High Grade Hawaii Municipal
Income Fund Bond Fund
- -----------------------------------------------------------------------------------------
2004 2003 2004 2003
- -----------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES FROM OPERATIONS:
Net Investment Income $ 2,536 $ 5,273 $ 3,487 $ 7,321
Net Realized Gain on Investments 603 4,600 718 1,911
Change in Unrealized Appreciation
(Depreciation) on Investments (4,010) (5,397) (6,013) 64
- -----------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets Resulting
From Operations (871) 4,476 (1,808) 9,296
- -----------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class Shares (2,531) (5,260) (2,920) (6,122)
Class A Shares (6) (13) (568) (1,218)
Capital Gains:
Institutional Class Shares -- (2,572) -- (1,555)
Class A Shares -- (5) -- (317)
- -----------------------------------------------------------------------------------------
Total Dividends and Distributions (2,537) (7,850) (3,488) (9,212)
- -----------------------------------------------------------------------------------------
Changes in Net Assets (3,408) (3,374) (5,296) 84
- -----------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Institutional Class Shares:
Proceeds from Shares Issued 13,671 15,737 6,092 18,535
Reinvestments of Cash Distributions 1,019 2,901 456 1,112
Cost of Shares Redeemed (8,754) (18,942) (9,651) (19,607)
- -----------------------------------------------------------------------------------------
Total Institutional Class Capital
Share Transactions 5,936 (304) (3,103) 40
- -----------------------------------------------------------------------------------------
Class A Shares:
Proceeds from Shares Issued 65 25 583 2,635
Reinvestments of Cash Distributions 4 15 232 726
Cost of Shares Redeemed (56) (182) (1,535) (5,880)
- -----------------------------------------------------------------------------------------
Total Class A Capital Share Transactions 13 (142) (720) (2,519)
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets From
Capital Share Transactions 5,949 (446) (3,823) (2,479)
- -----------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 2,541 (3,820) (9,119) (2,395)
- -----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 135,121 138,941 181,348 183,743
- -----------------------------------------------------------------------------------------
End of Period $137,662 $135,121 $172,229 $181,348
=========================================================================================
Undistributed Net Investment Income $ 1 $ 2 $ 33 $ 34
=========================================================================================
SHARE TRANSACTIONS:
Institutional Class Shares:
Shares Issued 1,315 1,481 546 1,656
Shares Issued in Lieu of Cash Distributions 99 274 41 99
Shares Redeemed (847) (1,777) (870) (1,750)
- -----------------------------------------------------------------------------------------
Total Institutional Class Share
Transactions 567 (22) (283) 5
- -----------------------------------------------------------------------------------------
Class A Shares:
Shares Issued 6 2 51 234
Shares Issued in Lieu of Cash Distributions -- 2 21 65
Shares Redeemed (5) (17) (139) (521)
- -----------------------------------------------------------------------------------------
Total Class A Share Transactions 1 (13) (67) (222)
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares Outstanding
from Share Transactions 568 (35) (350) (217)
=========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 43 www.bishopstreetfunds.com
Bishop Street Funds
- ----------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2004 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31, 2003
(IN THOUSANDS)
Money Market Treasury Money Market
Fund Fund
- -------------------------------------------------------------------------------------------
2004 2003 2004 2003
- -------------------------------------------------------------------------------------------
INVESTMENT ACTIVITIES FROM OPERATIONS:
Net Investment Income $ 712 $ 1,740 $ 771 $ 2,386
Net Realized Gain on Investments 1 -- -- 21
- -------------------------------------------------------------------------------------------
Increase in Net Assets Resulting
From Operations 713 1,740 771 2,407
- -------------------------------------------------------------------------------------------
DIVIDENDS TO SHAREHOLDERS:
Net Investment Income:
Institutional Class Shares (678) (1,731) (787) (2,386)
Class A Shares (34) (9) -- --
- -------------------------------------------------------------------------------------------
Total Dividends (712) (1,740) (787) (2,386)
- -------------------------------------------------------------------------------------------
Changes in Net Assets 1 -- (16) 21
- -------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS: (ALL AT $1.00 PER SHARE):
Institutional Class Shares:
Proceeds from Shares Issued 245,118 408,493 232,107 678,219
Reinvestments of Cash Distributions 8 25 2 9
Cost of Shares Redeemed (200,460) (464,850) (287,503)(739,562)
- -------------------------------------------------------------------------------------------
Total Institutional Class Capital
Share Transactions 44,666 (56,332) (55,394) (61,334)
- -------------------------------------------------------------------------------------------
Class A Shares:
Proceeds from Shares Issued 18,078 20,191 -- --
Reinvestments of Cash Distributions 34 9 -- --
Cost of Shares Redeemed (17,014) (2,948) -- --
- -------------------------------------------------------------------------------------------
Total Class A Capital Share Transactions 1,098 17,252 -- --
- -------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
From Capital Share Transactions 45,764 (39,080) (55,394) (61,334)
- -------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets 45,765 (39,080) (55,410) (61,313)
- -------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of Period 199,606 238,686 270,365 331,678
- -------------------------------------------------------------------------------------------
End of Period $ 245,371 $ 199,606 $214,955 $270,365
===========================================================================================
Undistributed (Distributions in Excess of)
Net Investment Income $ (1) $ (1) $ -- $ 16
===========================================================================================
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
Bishop Street Funds 44
This page intentionally left blank.
Bishop Street Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2004
(UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS FROM
--------------------- ------------------
TOTAL
NET ASSET NET REALIZED INVESTMENT TOTAL
VALUE, NET AND UNREALIZED ACTIVITIES NET DIVIDENDS
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND
OF PERIOD INCOME (LOSS) INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
--------- ------------- --------------- ---------- --------- -------- -------------
- -----------
EQUITY FUND
- -----------
Institutional Class Shares:
2004(1) $ 9.49 $ 0.02 $ 0.01 $ 0.03 $(0.02) $ -- $(0.02)
2003(1) 7.53 0.04 1.96 2.00 (0.04) -- (0.04)
2002(1) 10.08 0.02 (2.55) (2.53) (0.02) -- (0.02)
2001 13.55 -- (3.47) (3.47) -- -- --
2000 17.88 -- (2.77) (2.77) -- (1.56) (1.56)
1999(1) 15.28 -- 3.68 3.68 -- (1.08) (1.08)
Class A Shares:
2004(1) $ 9.44 $ -- $ -- $ -- $ --** $ -- $ --
2003(1) 7.49 0.02 1.95 1.97 (0.02) -- (0.02)
2002(1) 10.01 -- (2.52) (2.52) -- -- --
2001 13.49 (0.07) (3.41) (3.48) -- -- --
2000 17.87 -- (2.82) (2.82) -- (1.56) (1.56)
1999(2) 15.74 -- 3.19 3.19 -- (1.06) (1.06)
- ---------------------
STRATEGIC GROWTH FUND
- ---------------------
Institutional Class Shares:
2004(1) $11.93 $(0.02) $ 0.42 $ 0.40 $ -- $ -- $ --
2003(1) 8.64 (0.06) 3.35 3.29 -- -- --
2002(3) 10.00 (0.03) (1.33) (1.36) -- -- --
- -----------------------
TAX MANAGED EQUITY FUND
- -----------------------
Institutional Class Shares:
2004(1) $12.06 $ 0.02 $ 0.28 $ 0.30 $(0.02) $ -- $(0.02)
2003(1) 9.83 0.07 2.25 2.32 (0.07) (0.02) (0.09)
2002(4) 10.00 0.01 (0.17) (0.16) (0.01) -- (0.01)
- ----------------------
HIGH GRADE INCOME FUND
- ----------------------
Institutional Class Shares:
2004(1) $10.40 $ 0.19 $(0.24) $(0.05) $(0.19) $ -- $(0.19)
2003(1) 10.67 0.42 (0.07) 0.35 (0.42) (0.20) (0.62)
2002 10.00 0.46 0.67 1.13 (0.46) -- (0.46)
2001 9.81 0.50 0.19 0.69 (0.50) -- (0.50)
2000 9.39 0.52 0.42 0.94 (0.52) -- (0.52)
1999 10.43 0.48 (0.92) (0.44) (0.50) (0.10) (0.60)
Class A Shares:
2004(1) $10.36 $ 0.18 $(0.25) $(0.07) $(0.18) $ -- $(0.18)
2003(1) 10.62 0.39 (0.06) 0.33 (0.39) (0.20) (0.59)
2002 9.96 0.43 0.66 1.09 (0.43) -- (0.43)
2001 9.76 0.48 0.19 0.67 (0.47) -- (0.47)
2000 9.35 0.52 0.38 0.90 (0.49) -- (0.49)
1999(2) 9.69 0.19 (0.19) -- (0.24) (0.10) (0.34)
<FN>
+ TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. TOTAL
RETURN DOES NOT REFLECT THE SALES CHARGE ON CLASS A SHARES. RETURNS SHOWN DO
NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
* ANNUALIZED
** AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
</FN>
Bishop Street Funds 46
- --------------------------------------------------------------------------------
RATIO OF RATIO OF EXPENSES RATIO OF NET
NET ASSET NET ASSETS, EXPENSES TO TO AVERAGE INVESTMENT
VALUE, END OF AVERAGE NET ASSETS INCOME (LOSS) PORTFOLIO
END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE TURNOVER
PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS RATE
--------- ------- ----------- ----------- ---------------- ------------- --------
- -----------
EQUITY FUND
- -----------
Institutional Class Shares:
2004(1) $ 9.50 0.26% $149,541 1.00%* 1.28%* 0.32%* 18%
2003(1) 9.49 26.62 156,381 1.00 1.28 0.48 43
2002(1) 7.53 (25.06) 129,981 1.00 1.27 0.24 60
2001 10.08 (25.61) 216,412 1.00 1.27 -- 86
2000 13.55 (16.20) 300,565 1.00 1.28 (0.23) 52
1999(1) 17.88 24.37 391,227 1.00 1.27 (0.01) 58
Class A Shares:
2004(1) $ 9.44 0.04% $ 1,685 1.25%* 1.53%* 0.07%* 18%
2003(1) 9.44 26.31 1,584 1.25 1.53 0.23 43
2002(1) 7.49 (25.17) 1,603 1.25 1.52 (0.02) 60
2001 10.01 (25.80) 2,813 1.25 1.52 (0.29) 86
2000 13.49 (16.49) 10,631 1.25 1.53 (0.51) 52
1999(2) 17.87 20.52 583 1.25* 1.61* (0.33)* 58
- ---------------------
STRATEGIC GROWTH FUND
- ---------------------
Institutional Class Shares:
2004(1) $12.33 3.35% $ 55,275 1.02%* 1.26%* (0.34)%* 26%
2003(1) 11.93 38.08 46,845 1.17 1.41 (0.57) 59
2002(3) 8.64 (13.60) 19,899 1.25* 1.67* (0.61)* 50
- -----------------------
TAX MANAGED EQUITY FUND
- -----------------------
Institutional Class Shares:
2004(1) $12.34 2.52% $ 33,565 1.00%* 1.31%* 0.39%* 11%
2003(1) 12.06 23.66 34,808 1.00 1.43 0.68 34
2002(4) 9.83 (1.57) 24,635 1.00* 1.50* 0.99* 1
- ----------------------
HIGH GRADE INCOME FUND
- ----------------------
Institutional Class Shares:
2004(1) $10.16 (0.50)% $137,380 0.76%* 1.10%* 3.69%* 30%
2003(1) 10.40 3.31 134,845 0.76 1.10 3.91 48
2002 10.67 11.54 138,516 0.76 1.09 4.45 19
2001 10.00 7.16 124,416 0.76 1.09 5.02 89
2000 9.81 10.25 127,888 0.77 1.14 5.41 88
1999 9.39 (4.34) 127,881 0.80 1.19 5.12 56
Class A Shares:
2004(1) $10.11 (0.73)% $ 282 1.01%* 1.35%* 3.44%* 30%
2003(1) 10.36 3.14 276 1.01 1.35 3.69 48
2002 10.62 11.19 425 1.01 1.34 4.21 19
2001 9.96 7.02 325 1.01 1.34 4.72 89
2000 9.76 9.85 26 1.02 1.39 5.24 88
1999(2) 9.35 (0.05) 1 1.05* 1.87* 4.89* 56
<FN>
(1) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES.
(2) COMMENCED OPERATIONS ON JUNE 14, 1999.
(3) COMMENCED OPERATIONS ON JULY 1, 2002.
(4) COMMENCED OPERATIONS ON NOVEMBER 13, 2002.
</FN>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 47 www.bishopstreetfunds.com
Bishop Street Funds
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE SIX-MONTH PERIOD ENDED JUNE 30, 2004
(UNAUDITED) AND THE PERIODS ENDED DECEMBER 31,
DIVIDENDS AND
INVESTMENT ACTIVITIES DISTRIBUTIONS FROM
--------------------- ------------------
TOTAL
NET ASSET NET REALIZED INVESTMENT TOTAL
VALUE, NET AND UNREALIZED ACTIVITIES NET DIVIDENDS
BEGINNING INVESTMENT GAIN (LOSS) ON FROM INVESTMENT CAPITAL AND
OF PERIOD INCOME INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
--------- ------------- --------------- ---------- --------- -------- -------------
- --------------------------
HAWAII MUNICIPAL BOND FUND
- --------------------------
Institutional Class Shares:
2004(3) $11.21 $0.22 $(0.33) $(0.11) $(0.22) $ -- $(0.22)
2003(3) 11.20 0.45 0.13 0.58 (0.45) (0.12) (0.57)
2002 10.66 0.47 0.57 1.04 (0.46) (0.04) (0.50)
2001 10.70 0.49 (0.04) 0.45 (0.49) -- (0.49)
2000 9.98 0.50 0.72 1.22 (0.50) -- (0.50)
1999 10.77 0.48 (0.75) (0.27) (0.50) (0.02) (0.52)
Class A Shares:
2004(3) $11.21 $0.21 $(0.33) $(0.12) $(0.21) $ -- $(0.21)
2003(3) 11.20 0.42 0.13 0.55 (0.42) (0.12) (0.54)
2002 10.66 0.44 0.58 1.02 (0.44) (0.04) (0.48)
2001 10.69 0.46 (0.02) 0.44 (0.47) -- (0.47)
2000 9.97 0.46 0.73 1.19 (0.47) -- (0.47)
1999(1) 10.42 0.26 (0.44) (0.18) (0.25) (0.02) (0.27)
- -----------------
MONEY MARKET FUND
- -----------------
Institutional Class Shares:
2004(3) $ 1.00 $ -- $ -- $ -- $ --** $ -- $ --**
2003(3) 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2001 1.00 0.04 -- 0.04 (0.04) -- (0.04)
2000 1.00 0.06 -- 0.06 (0.06) -- (0.06)
1999 1.00 0.05 -- 0.05 (0.05) -- (0.05)
Class A Shares:
2004(3) $ 1.00 $ -- $ -- $ -- $ --** $ -- $ --**
2003(3) 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2001(2) 1.00 0.02 -- 0.02 (0.02) -- (0.02)
- --------------------------
TREASURY MONEY MARKET FUND
- --------------------------
Institutional Class Shares:
2004(3) $ 1.00 $ -- $ -- $ -- $ --** $ -- $ --**
2003(3) 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2002 1.00 0.01 -- 0.01 (0.01) -- (0.01)
2001 1.00 0.04 -- 0.04 (0.04) -- (0.04)
2000 1.00 0.06 -- 0.06 (0.06) -- (0.06)
1999 1.00 0.05 -- 0.05 (0.05) -- (0.05)
<FN>
+ TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED.
RETURNS SHOWN DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD
PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
* ANNUALIZED
** AMOUNT REPRESENTS LESS THAN $0.01 PER SHARE.
(1) COMMENCED OPERATIONS ON JUNE 14, 1999.
(2) COMMENCED OPERATIONS ON MAY 1, 2001.
(3) PER SHARE NET INVESTMENT INCOME AMOUNT CALCULATED USING AVERAGE SHARES.
</FN>
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
Bishop Street Funds 48
- --------------------------------------------------------------------------------
RATIO OF RATIO OF EXPENSES RATIO OF NET
NET ASSET NET ASSETS, EXPENSES TO TO AVERAGE INVESTMENT
VALUE, END OF AVERAGE NET ASSETS INCOME (LOSS) PORTFOLIO
END OF TOTAL PERIOD NET EXCLUDING FEE TO AVERAGE TURNOVER
PERIOD RETURN+ (000) ASSETS WAIVERS NET ASSETS RATE
--------- ------- ----------- ----------- ---------------- ------------- --------
- --------------------------
HAWAII MUNICIPAL BOND FUND
- --------------------------
Institutional Class Shares:
2004(3) $10.88 (1.00)% $142,883 0.55%* 0.90%* 3.98%* 21%
2003(3) 11.21 5.27 150,373 0.45 0.91 4.01 38
2002 11.20 10.02 150,287 0.45 0.89 4.23 26
2001 10.66 4.24 137,206 0.45 0.88 4.54 4
2000 10.70 12.61 134,901 0.44 0.92 4.89 19
1999 9.98 (2.65) 141,341 0.41 0.99 4.79 14
Class A Shares:
2004(3) $10.88 (1.12)% $ 29,346 0.80%* 1.15%* 3.73%* 21%
2003(3) 11.21 5.01 30,975 0.70 1.16 3.76 38
2002 11.20 9.75 33,456 0.70 1.14 3.98 26
2001 10.66 4.13 30,499 0.70 1.13 4.29 4
2000 10.69 12.34 19,951 0.69 1.17 4.63 19
1999(1) 9.97 (1.76) 6,131 0.66* 1.24* 4.89* 14
- -----------------
MONEY MARKET FUND
- -----------------
Institutional Class Shares:
2004(3) $ 1.00 0.32% $226,832 0.50%* 0.84%* 0.64%* n/a
2003(3) 1.00 0.76 182,166 0.50 0.83 0.76 n/a
2002 1.00 1.34 238,498 0.50 0.81 1.33 n/a
2001 1.00 3.86 309,935 0.50 0.82 3.71 n/a
2000 1.00 6.13 305,678 0.50 0.83 5.95 n/a
1999 1.00 4.88 284,291 0.50 0.84 4.78 n/a
Class A Shares:
2004(3) $ 1.00 0.19% $ 18,539 0.75%* 1.09%* 0.39%* n/a
2003(3) 1.00 0.50 17,440 0.75 1.08 0.41 n/a
2002 1.00 1.08 188 0.75 1.06 1.10 n/a
2001(2) 1.00 1.96 500 0.75* 1.07* 2.66* n/a
- --------------------------
TREASURY MONEY MARKET FUND
- --------------------------
Institutional Class Shares:
2004(3) $ 1.00 0.31% $214,955 0.44%* 0.84%* 0.62%* n/a
2003(3) 1.00 0.74 270,365 0.44 0.83 0.75 n/a
2002 1.00 1.29 331,678 0.44 0.83 1.28 n/a
2001 1.00 3.68 372,422 0.44 0.85 3.68 n/a
2000 1.00 5.89 455,612 0.44 0.82 5.73 n/a
1999 1.00 4.65 331,064 0.44 0.85 4.56 n/a
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
June 30, 2004 49 www.bishopstreetfunds.com
Bishop Street Funds
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Bishop Street Funds (the "Trust") are registered under the Investment
Company Act of 1940, as amended, as an open-end, management investment company.
The Bishop Street Funds consist of a series of seven funds (each a Fund,
collectively the "Funds") which includes the Equity Fund, Strategic Growth Fund,
Tax Managed Equity Fund, High Grade Income Fund, Hawaii Municipal Bond Fund,
Money Market Fund and the Treasury Money Market Fund. Class A Shares of the
Equity, High Grade Income and Hawaii Municipal Bond Funds are subject to a sales
load as disclosed in the prospectus. The assets of each Fund are segregated, and
a shareholder's interest is limited to the Fund in which shares are held. The
Funds' prospectus provides a description of each Fund's investment objectives,
policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, requires
management to make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those
estimates.
SECURITY VALUATION
Bishop Street Funds' investments in equity securities listed on a securities
exchange, market or automated quotation system for which quotations are readily
available (except for securities traded on NASDAQ) are valued at the last quoted
sale price on the primary exchange or market (foreign or domestic) on which they
are traded, or, if there is no such reported sale, at the most recent quoted bid
price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will
be used. If available, debt securities are priced based upon valuations provided
by independent, third-party pricing agents. Such values generally reflect the
last reported sales price if the security is actively traded. The third-party
pricing agents may also value debt securities at an evaluated bid price by
employing methodologies that utilize actual market transactions, broker-supplied
valuations, or other methodologies designed to identify the market value for
such securities. Debt obligations with remaining maturities of sixty days or
less may be valued at their amortized cost, which approximates market value.
Prices for most securities held in the Funds are provided daily by recognized
independent pricing agents. If a security price cannot be obtained from an
Bishop Street Funds 50
- --------------------------------------------------------------------------------
independent, third-party pricing agent, the Funds seek to obtain a bid price
from at least one independent broker.
Securities for which market prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Funds' Board of
Trustees (the "Board"). The Funds' Fair Value Procedures are implemented through
a Fair Value Committee (the "Committee") designated by the Funds' Board of
Trustees. Some of the more common reasons that may necessitate that a security
be valued using Fair Value Procedures include: the security's trading has been
halted or suspended; the security has been de-listed from a national exchange;
the security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; or the security's primary pricing source is
not able or willing to provide a price. When a security is valued in accordance
with the Fair Value Procedures, the Committee will determine the value after
taking into consideration relevant information reasonably available to the
Committee.
Investment securities held by the Money Market and Treasury Money Market
Funds are stated at amortized cost, which approximates market value. Under this
valuation method, purchase discounts and premiums are accreted and amortized
ratably to maturity and are included in interest income.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on trade date. Costs used in
determining net realized capital gains and losses on the sale of securities are
on the basis of the specific identification method. Interest income is recorded
on the accrual basis; dividend income is recorded on ex-dividend date.
DISCOUNTS AND PREMIUMS
Discounts and premiums are accreted or amortized over the life of each
security and are recorded as interest income for each of the Funds using the
scientific interest method, which approximates the effective interest method.
REPURCHASE AGREEMENTS
Securities pledged as collateral for repurchase agreements are held by the
custodian bank until the respective agreements mature. The Funds may also invest
in tri-party repurchase agreements. Securities held as collateral for tri-party
repurchase agreements are maintained in a segregated account by the broker's
custodian bank. Provisions of repurchase agreements and procedures adopted by
the Adviser (see Note 3) monitor that the market value of the collateral is
sufficient in the event of default by the counterparty. If the counterparty
defaults and the value of the collateral declines or if the counterparty enters
an insolvency proceeding, realization of the collateral by the Fund may be
delayed or limited.
June 30, 2004 51 www.bishopstreetfunds.com
Bishop Street Funds
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CLASSES
Class-specific expenses are borne by that class of shares. Income, realized
and unrealized gains/losses and non class-specific expenses are allocated to the
respective class on the basis of relative daily net assets.
EXPENSES
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income are declared daily and paid on a
monthly basis for the High Grade Income Fund, Hawaii Municipal Bond Fund, Money
Market Fund and Treasury Money Market Fund. The Equity Fund, Strategic Growth
Fund and Tax Managed Equity Fund declare and pay distributions from net
investment income on a quarterly basis. Any net realized capital gains will be
distributed at least annually for all Funds.
ILLIQUID SECURITIES
Valuations of illiquid securities may differ significantly from the values
that would have been used had an active market value for these securities
existed.
3. INVESTMENT ADVISORY AGREEMENT
Investment advisory services are provided to the Funds by Bishop Street
Capital Management (the "Adviser"). The Adviser is entitled to receive an annual
fee of 0.74% of the average daily net assets of the Equity, Strategic Growth and
the Tax Managed Equity Funds, 0.55% of the average daily net assets of the High
Grade Income Fund, 0.35% of the average daily net assets of the Hawaii Municipal
Bond Fund, and 0.30% of the average daily net assets of the Money Market and
Treasury Money Market Funds (collectively, the "Money Market Funds"). The
Adviser may from time to time waive a portion of its fee in order to limit the
operating expenses of a Fund.
BNP Paribas Asset Management, Inc. ("BNP PAM") serves as the investment
sub-adviser for the Strategic Growth Fund, pursuant to a sub-adviser agreement.
BNP PAM is entitled to receive from the Adviser a fee, computed daily and paid
monthly, at the annual rate of 0.37% of the average daily net assets of the
Strategic Growth Fund.
Wellington Management Company, LLP ("Wellington") serves as the investment
sub-adviser for the Money Market Funds, pursuant to a sub-adviser agreement.
Wellington is entitled to receive from the Adviser a fee, computed daily and
paid monthly, at the annual rate of 0.075% of the average daily net assets of
the Money Market Funds up to $500 million and 0.020% of the average daily net
assets of the Money Market Funds in excess of $500 million.
Bishop Street Funds 52
- --------------------------------------------------------------------------------
4. ADMINISTRATIVE, TRANSFER AGENT AND DISTRIBUTION SERVICES
Pursuant to an administration agreement dated January 27, 1995, (the
"Agreement") SEI Investments Global Funds Services ("GFS"), a wholly owned
subsidiary of SEI Investments Company, acts as the Trust's Administrator. Under
the terms of the Agreement, GFS is entitled to receive an annual fee of 0.20% of
the average daily net assets of the Funds. GFS has voluntarily agreed to waive a
portion of its fee in order to limit operating expenses.
Pursuant to an agreement dated January 30, 1995, DST Systems, Inc. ("DST")
acts as the Transfer Agent of the Trust. As such, DST provides transfer agency,
dividend disbursing and shareholder services to the Trust.
SEI Investments Distribution Co. ("SIDCO"), a wholly owned subsidiary of SEI
Investments Company, acts as the Trust's Distributor pursuant to a distribution
agreement dated June 10, 1999. The Funds have adopted a Distribution Plan (the
"Plan") on behalf of Class A Shares pursuant to Rule 12b-1 under the Investment
Company Act of 1940. The Plan provides that Class A Shares will bear the cost of
their distribution expenses. SIDCO, as compensation for its services under the
Plan, receives a distribution fee, computed daily and payable monthly, of 0.25%
of the average daily net assets attributable to each Fund's Class A Shares.
The Trust has adopted and entered into a shareholder service plan and
agreement with SIDCO. Each Fund pays to SIDCO a shareholder servicing fee at an
annual rate of 0.25% of the average daily net asset value of all shares of each
Fund, which is computed daily and paid monthly. Under the shareholder service
plan, SIDCO may perform, or may compensate other service providers for
performing various shareholder and administrative services. SIDCO may also
retain as profit any difference between the fee it receives and amount it pays
to third parties. For the period, SIDCO paid the entire amount of fees received
under the shareholder service plan to First Hawaiian Bank for shareholder
services performed for the Funds. SIDCO has voluntarily agreed to waive a
portion of its fee in order to limit operating expenses.
Certain officers of the Trust are also officers of the Administrator. Such
officers are paid no fees by the Trust.
5. SECURITIES LENDING
Each Fund may lend portfolio securities to brokers, dealers and other
financial organizations that meet capital and other credit requirements or other
criteria established by the Board. These loans may not exceed 331/3% of the
total asset value of the Fund (including the loan collateral). No Fund will lend
portfolio securities to its investment adviser, sub-adviser or their affiliates
June 30, 2004 53 www.bishopstreetfunds.com
Bishop Street Funds
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unless it has applied for and received specific authority to do so from the SEC.
Loans of portfolio securities will be fully collateralized by cash, letters of
credit or U.S. Government securities, and the collateral will be maintained in
an amount equal to at least 100% of the current market value of the loaned
securities by marking to market daily, although the borrower will be required to
deliver collateral of 102% of the market value of borrowed securities for
domestic and foreign securities, respectively. Although the risk of lending is
mitigated by the collateral, the Fund could experience a delay in recovering its
securities and a possible loss of income or value if the borrower fails to
return them.
6. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than temporary cash investments for the period ended June 30, 2004 are
presented below for the Funds.
Strategic Tax High Grade Hawaii
Equity Growth Managed Income Municipal
Fund Fund Equity Fund Fund Bond Fund
(000) (000) (000) (000) (000)
------- ------- ----------- --------- ---------
Purchases
U.S.
Government
Securities $ -- $ -- $ -- $19,765 $ --
Other 27,540 18,844 3,718 31,106 36,211
Sales
U.S.
Government
Securities $ -- $ -- $ -- $ 2,098 $ --
Other 35,061 13,243 6,034 33,847 44,948
7. FEDERAL TAX INFORMATION
It is each Fund's intention to continue to qualify as a regulated investment
company for federal income tax purposes under Subchapter M of the Internal
Revenue Code, as amended, and to distribute a majority of its taxable income and
net capital gains. Accordingly, no provision for federal income taxes is
required. The timing and characterization of certain income and capital gains
distributions are determined annually in accordance with Federal tax regulations
which may differ from accounting principles generally accepted in the United
States of America. As a result, net investment income (loss) and net realized
gain (loss) on investment transactions for the reporting period may differ from
distributions during such period. These book/tax differences may be temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital or accumulated net realized gain, as
appropriate, in the period that the differences arise.
Bishop Street Funds 54
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The tax character of dividends and distributions paid during the years ended
December 31, 2003 and December 31, 2002 were as follows:
Ordinary Tax Exempt Long-Term
Income Income Capital Gain Total
(000) (000) (000) (000)
-------- -------- -------- --------
Equity Fund
2003 $ 653 $ -- $ -- $ 653
2002 420 -- -- 420
Strategic Growth
Fund
2003 $ -- $ -- $ -- $ --
2002 -- -- -- --
Tax Managed Equity
Fund
2003 $ 250 $ -- $ -- $ 250
2002 33 -- -- 33
High Grade Income
Fund
2003 $5,273 $ -- $2,577 $7,850
2002 5,850 -- -- 5,850
Hawaii Municipal
Bond Fund
2003 $ 14 $7,326 $1,872 $9,212
2002 -- 7,582 733 8,315
Money Market Fund
2003 $1,740 $ -- $ -- $1,740
2002 3,690 -- -- 3,690
Treasury Money
Market Fund
2003 $2,386 $ -- $ -- $2,386
2002 4,508 -- -- 4,508
June 30, 2004 55 www.bishopstreetfunds.com
Bishop Street Funds
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As of December 31, 2003, the components of Distributable Earnings
(Accumulated Losses) on a tax basis were as follows:
Treasury
Strategic Tax High Grade Hawaii Money Money
Equity Growth Managed Income Municipal Market Market
Fund Fund Equity Fund Fund Bond Fund Fund Fund
(000) (000) (000) (000) (000) (000) (000)
--------- --------- -------- -------- --------- ------- -------
Undistributed
ordinary
income $ 9 $ -- $ 7 $ 425 $ 72 $ 117 $ 172
Undistributed
tax exempt
income -- -- -- -- 5 -- --
Undistributed
long-term
capital gain -- -- -- 11 130 -- --
Capital loss
carryforwards
expiring:
Dec. 2005 -- -- -- -- -- (2) --
Dec. 2008 -- -- -- -- -- (2) --
Dec. 2009 (38,258) -- -- -- -- (18) --
Dec. 2010 (25,686) (1,049) -- -- -- -- --
Dec. 2011 (1,697) -- -- -- -- -- --
Post-October
Losses -- -- -- (57) -- -- --
Other Temporary
Differences -- (22) (21) (423) 31 (118) (148)
Unrealized
appreciation 15,831 7,922 6,123 5,608 12,456 -- --
For Federal income tax purposes, capital loss carryforwards represent
realized losses of the Funds that may be carried forward for a maximum period of
eight years and applied against future capital gains. During the year ended
December 31, 2003 the Strategic Growth Fund, the High Grade Income Fund and the
Treasury Money Market Fund, utilized capital loss carryforwards of $310,043,
$2,068,477 and $11,795, respectively, to offset realized capital gains.
Post-October losses represent losses realized on investment transactions from
November 1, 2003 through December 31, 2003 that, in accordance with Federal
income tax regulations the Funds have elected to defer and treat as having
arisen in the following fiscal year.
Bishop Street Funds 56
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The aggregate gross unrealized appreciation and depreciation of securities
held by the Equity Fund, Strategic Growth Fund, Tax Managed Equity Fund, High
Grade Income Fund, and Hawaii Municipal Bond Fund for Federal income tax
purposes at June 30, 2004 were as follows:
Strategic Tax High Grade Hawaii
Equity Growth Managed Income Municipal
Fund Fund Equity Fund Fund Bond Fund
(000) (000) (000) (000) (000)
-------- ------- ------- -------- --------
Federal Tax Cost $147,929 $46,008 $27,424 $177,256 $163,505
-------- ------- ------- -------- --------
Gross
Unrealized
Appreciation 21,137 9,532 6,404 3,292 7,392
Gross
Unrealized
Depreciation (8,095) (799) (225) (1,616) (891)
-------- ------- ------- -------- --------
Net
Unrealized
Appreciation $ 13,042 $ 8,733 $ 6,179 $ 1,676 $ 6,501
======== ======= ======= ======== ========
8. CONCENTRATION OF CREDIT RISK
The Hawaii Municipal Bond Fund invests primarily in debt instruments in the
state of Hawaii. The issuers' ability to meet their obligations may be affected
by economic developments in that state.
9. OTHER
In the normal course of business, the Funds enter into contracts that provide
general indemnifications. The Funds' maximum exposure under these arrangements
is dependent on future claims that may be made against the Funds and, therefore,
cannot be established; however, based on experience, the risk of loss from such
claim is considered remote.
June 30, 2004 57 www.bishopstreetfunds.com
Bishop Street Funds
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BOARD OF TRUSTEES AND OFFICERS
TERM OF
POSITION OFFICE AND
PERSONAL HELD WITH THE LENGTH OF
INFORMATION1 COMPANY TIME SERVED2
- ----------------------------------------- ------------- ------------
INDEPENDENT BOARD MEMBERS
[PHOTO OMITTED]
MR. MARTIN ANDERSON Trustee Since 1994
81
[PHOTO OMITTED]
MR. PETER F. SANSEVERO Trustee Since 1999
71
[PHOTO OMITTED]
MR. MANUEL R. SYLVESTER Trustee Since 1994
74
[PHOTO OMITTED]
DR. JOYCE S. TSUNODA Trustee Since 1994
66
Bishop Street Funds 58
(UNAUDITED)
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
BISHOP STREET OTHER
FUNDS COMPLEX DIRECTORSHIPS
PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY
DURING PAST 5 YEARS BOARD MEMBER3 BOARD MEMBER4
- --------------------------------------------------- ------------- -------------
PARTNER -- Goodsill, Anderson, Quinn & Stifel since 1951 7 None
REGIONAL DIRECTOR OF THE NORTHWESTERN REGION AND 7 None
FIRST VICE PRESIDENT -- Merrill Lynch (1958-1997)
RETIRED SINCE 1992 7 None
VICE PRESIDENT FOR INTERNATIONAL EDUCATION -- University of Hawaii System 7 None
since January 2003
CHANCELLOR FOR COMMUNITY COLLEGES -- University of Hawaii since 1983
SENIOR VICE PRESIDENT -- University of Hawaii 1989-2003
VICE PRESIDENT, INTERNATIONAL EDUCATION, University of Hawaii, 2003-present
June 30, 2004 59 www.bishopstreetfunds.com
Bishop Street Funds
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BOARD OF TRUSTEES AND OFFICERS
TERM OF
POSITION(S) OFFICE AND
PERSONAL HELD WITH THE LENGTH OF
INFORMATION1 COMPANY TIME SERVED2
- ----------------------------------------- ------------- ------------
INTERESTED BOARD MEMBERS5
[PHOTO OMITTED]
MR. PHILLIP H. CHING Trustee Since 1994
73
[PHOTO OMITTED]
President
and
MR. ROBERT A. NESHER Chairman of Since 1998
58 the Board
of Trustees
[PHOTO OMITTED]
MR. JOHN TSUI Trustee
66
OFFICERS
Peter J. Golden Treasurer 2
40 and Controller
[PHOTO OMITTED]
John Munch* Vice President 2
33 and Secretary
Bishop Street Funds 60
(UNAUDITED)
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
BISHOP STREET OTHER
FUNDS COMPLEX DIRECTORSHIPS
PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY
DURING PAST 5 YEARS BOARD MEMBER3 BOARD MEMBER4
- --------------------------------------------------- ------------- -------------
RETIRED SINCE 1996 7 None
VICE CHAIRMAN -- First Hawaiian Bank (1968-1996)
TRUSTEE OF: THE ADVISORS' INNER CIRCLE
FUND, THE ARBOR FUND, EXPEDITION
CURRENTLY PERFORMS VARIOUS SERVICES ON BEHALF OF 7 FUNDS, SEI ASSET ALLOCATION TRUST, SEI
SEI INVESTMENTS FOR WHICH MR. NESHER IS COMPENSATED. DAILY INCOME TRUST, SEI INDEX FUNDS,
EXECUTIVE VICE PRESIDENT -- SEI Investments (1986-1994) SEI INSTITUTIONAL INVESTMENTS TRUST,
DIRECTOR AND EXECUTIVE VICE PRESIDENT OF THE ADVISER, SEI INSTITUTIONAL MANAGED TRUST,
THE ADMINISTRATOR AND THE DISTRIBUTOR (1981-1994) SEI INSTITUTIONAL INTERNATIONAL TRUST,
SEI LIQUID ASSET TRUST
AND SEI TAX EXEMPT TRUST.
PRESIDENT, CHIEF OPERATING OFFICER, DIRECTOR -- First 7 None
Hawaiian Bank (1994-2002) VICE CHAIRMAN,
CHIEF CREDIT OFFICER -- BancWest Corporation
(2000-2002) DIRECTOR -- Bank of the West (2000-2002)
Director, SEI Investments, Fund Accounting and N/A N/A
Administration since June 2001. Vice President, Fund
Administration, J.P. Morgan Chase & Co., 2000-2001;
Vice President, Fund & Pension Accounting, Chase
Manhattan Bank, 1997-2000.
Vice President and Secretary of the N/A N/A
Administrator and Distributor since November 2001;
Associate at Howard Rice Nemorovoski Canady Falk
& Rabin, 1998-2001; Associate at Seward & Kissel,
1996-1998.
June 30, 2004 61 www.bishopstreetfunds.com
Bishop Street Funds
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TERM OF
POSITION(S) OFFICE AND
PERSONAL HELD WITH THE LENGTH OF
INFORMATION1 COMPANY TIME SERVED2
- ----------------------------------------- ------------- ------------
INDEPENDENT BOARD MEMBERS5
William E. Zitelli Vice President and 3
36 Secretary
Lydia A. Gavalis Vice President and 5
40 Assistant Secretary
Timothy D. Barto Vice President and 3
36 Assistant Secretary
Christine M. McCullough Vice President and 3
44 Assistant Secretary
Lori Foo Vice President and 2
47 Assistant Secretary
John Munera Vice President and 1
41 Assistant Secretary
<FN>
* AS OF AUGUST 13, 2004, MR. MUNCH TENDERED HIS RESIGNATION AS VICE PRESIDENT
AND SECRETARY OF THE BISHOP STREET FUNDS.
1 EACH TRUSTEE MAY BE CONTACTED BY WRITING TO THE TRUSTEE C/O BISHOP STREET
FUNDS, PO BOX 3708, HONOLULU, HI 96811. EACH OFFICER MAY BE CONTACTED BY
WRITING TO THE OFFICER C/O SEI INVESTMENTS, ONE FREEDOM VALLEY DRIVE, OAKS,
PA 19456.
2 EACH TRUSTEE SHALL HOLD OFFICE DURING THE LIFETIME OF THIS TRUST UNTIL THE
ELECTION AND QUALIFICATION OF HIS OR HER SUCCESSOR, OR UNTIL HE OR SHE
SOONER DIES, RESIGNS OR IS REMOVED IN ACCORDANCE WITH THE TRUST'S
DECLARATION OF TRUST.
3 THE "BISHOP STREET FUNDS COMPLEX" CONSISTS OF ALL REGISTERED INVESTMENT
COMPANIES FOR WHICH BISHOP STREET CAPITAL MANAGEMENT SERVES AS INVESTMENT
ADVISER. AS OF JUNE 30, 2004 THE BISHOP STREET FUNDS COMPLEX CONSISTED
OF 7 FUNDS.
</FN>
Bishop Street Funds 62
(UNAUDITED)
- --------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
BISHOP STREET OTHER
FUNDS COMPLEX DIRECTORSHIPS
PRINCIPAL OCCUPATION(S) OVERSEEN BY HELD BY
DURING PAST 5 YEARS BOARD MEMBER3 BOARD MEMBER4
- --------------------------------------------------- ------------- -------------
Vice President and Assistant Secretary of SEI N/A N/A
Investments Global Funds Services since 2000;
Vice President, Merrill Lynch & Co. Asset
Management Group from 1998-2000;
Associate at Pepper Hamilton LLP from
1997-1998.
Vice President and Assistant Secretary of SEI N/A N/A
Investments and SEI Investments Global Funds
Services since 1998; Assistant General Counsel
and Director of Arbitration, Philadelphia Stock
Exchange from 1989-1998.
Vice President and Assistant Secretary of SEI N/A N/A
Investments Global Funds Services since 1999;
Associate, Dechert (law firm) from 1997-1999.
Vice President and Assistant Secretary of SEI N/A N/A
Investments Global Funds Services since 1999;
Associate at White and Williams LLP from 1991-1999.
Assistant Vice President of First Hawaiian Bank since N/A N/A
2000; Employed by First Hawaiian Bank since 1994.
Middle Office Compliance Officer of the Administrator N/A N/A
and Distributor since 2000; Supervising Examiner at the
Federal Reserve Bank of Philadelphia from 1998-2000.
<FN>
4 DIRECTORSHIPS OF COMPANIES ARE REQUIRED TO REPORT TO THE SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES EXCHANGE ACT OF 1934 (I.E., "PUBLIC
COMPANIES") OR OTHER INVESTMENT COMPANIES REGISTERED UNDER THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED.
5 MESSRS. CHING, NESHER AND TSUI ARE TRUSTEES WHO MAY BE DEEMED TO BE AN
"INTERESTED PERSON" OF THE TRUST, AS THAT TERM IS DEFINED IN THE INVESTMENT
COMPANY ACT OF 1940, AS AMENDED.
FOR MORE INFORMATION REGARDING THE TRUSTEES AND OFFICERS, PLEASE REFER TO
THE STATEMENT OF ADDITIONAL INFORMATION, WHICH IS AVAILABLE UPON REQUEST
BY CALLING 1-800-262-9565.
</FN>
June 30, 2004 63 www.bishopstreetfunds.com
- --------------------------------------------------------------------------------
NOTES
[BACKGROUND GRAPHIC OMITTED]
INVESTMENT ADVISER
BISHOP STREET CAPITAL MANAGEMENT
HONOLULU, HI 96813
ADMINISTRATOR
SEI INVESTMENTS GLOBAL FUNDS SERVICES
OAKS, PA 19456
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
OAKS, PA 19456
TRANSFER AGENT
DST SYSTEMS, INC.
KANSAS CITY, MO 64141
CUSTODIAN
UNION BANK OF CALIFORNIA, N.A.
SAN FRANCISCO, CA 94101
LEGAL COUNSEL
MORGAN, LEWIS & Bockius LLP
Philadelphia, PA 19103
Auditors
PricewaterhouseCoopers LLP
Philadelphia, PA 19103
[BISHOP STREET FUNDS LOGO OMITTED]
FOR MORE INFORMATION ABOUT BISHOP STREET FUNDS, CALL 1-800-262-9565
OR YOUR INVESTMENT SPECIALIST
VISIT US ONLINE AT WWW.BISHOPSTREETFUNDS.COM
- --------------------------------------------------------------------------------
[BISHOP STREET FUNDS LOGO OMITTED]
Bishop Street Funds
P.O. Box 3708
Honolulu, HI 96811
THIS REPORT AND THE FINANCIAL
STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF BISHOP STREET FUNDS' SHAREHOLDERS.
THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
SHARES OF BISHOP STREET FUNDS ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY FIRST HAWAIIAN BANK OR
ANY OF ITS AFFILIATES. SUCH SHARES ARE
ALSO NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION,
THE FEDERAL RESERVE BOARD, OR ANY
OTHER AGENCY. INVESTMENT IN SHARES OF
MUTUAL FUNDS INVOLVES RISK, INCLUDING
THE POSSIBLE LOSS OF PRINCIPAL. THE
BISHOP STREET FUNDS ARE DISTRIBUTED BY
SEI INVESTMENTS DISTRIBUTION CO., WHICH
IS NOT AFFILIATED WITH FIRST HAWAIIAN
BANK, BANK OF THE WEST OR BANCWEST
CORPORATION. BANCWEST CORPORATION IS
A WHOLLY-OWNED SUBSIDIARY OF BNP
PARIBAS.
BSF-SA-004-1000
- --------------------------------------------------------------------------------
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual report.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual report.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PURCHASERS OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
that have materially affected, or are reasonably likely to materially affect,
the registrants internal control over financial reporting.
ITEMS 11. EXHIBITS.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), is filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an exhibit.
- -------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Bishop Street Funds
By (Signature and Title)* /s/ Robert A. Nesher
---------------------
Robert A. Nesher, President
Date 08/25/04
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Robert A. Nesher
--------------------
Robert A. Nesher, President
Date 08/25/04
By (Signature and Title)* /s/ Peter J. Golden
-------------------
Peter J. Golden, Treasurer and Controller
Date 08/25/04
* Print the name and title of each signing officer under his or her signature.