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May 13, 1997
Dear Shareholders,
Inflation concerns impacted the municipal bond market during the six month
period ending March 31, 1997. However, a volatile stock market coupled with
the 1996 tax season brought renewed interest in investing in municipal bond
funds. Both the First Hawaii Municipal Bond Fund and the First Hawaii
Intermediate Municipal Fund continue to provide shareholders with
diversification - an important factor in balancing your investment portfolio -
and double tax free income opportunities.
For the six months ended March 31, 1997:
FIRST HAWAII MUNICIPAL BOND FUND had an annualized distribution rate
of 4.94% (free from Federal and State of Hawaii taxes). This is a taxable
equivalent yield of 7.95% for shareholders in the 31% Federal tax bracket.
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND had an annualized
distribution rate of 4.26% (free from Federal and State of Hawaii taxes).
This is a taxable equivalent yield of 6.86% for shareholders in the 31%
Federal tax bracket.
For shareholders who reinvested their monthly dividends, yields were higher due
to the benefit of tax free compounding.
On the following pages you will find our Funds' 1997 semi-annual report. If
you have any questions or would like us to provide information about the Funds
to your family or friends, please call us at 988-8088.
Sincerely,
/s/ Terrence K.H. Lee
Terrence K.H. Lee
President
FIRST PACIFIC SECURITIES, INC. / MEMBER SIPC
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
HAWAII MUNICIPAL BONDS (91.33%)
Hawaii County
General Obligation Bonds - 3.57%
$1,150,000 7.050%, 6/01/01 $ 1,242,000
100,000 6.800%, 12/01/01 102,689
565,000 7.200%, 6/01/06 613,025
--------------
1,957,714
Hawaii State
General Obligation Bonds - .92%
135,000 6.000%, 10/01/08 143,775
330,000 7.125%, 9/01/09 358,875
--------------
502,650
Airport Systems Revenue Bonds - 5.14%
400,000 5.125%, 7/01/00 404,500
345,000 6.300%, 7/01/01 364,406
560,000 7.000%, 7/01/20 605,500
1,330,000 7.500%, 7/01/20 1,448,037
-------------
2,822,443
Hawaiian Electric Company, Inc. - 4.91%
1,660,000 7.625%, 12/01/18 1,776,200
310,000 7.600%, 7/01/20 331,700
200,000 7.600%, 5/01/26 201,750
400,000 5.875%, 12/01/26 386,000
--------------
2,695,650
Kapiolani Hospital - 3.78%
1,550,000 6.400%, 7/01/13 1,581,000
430,000 7.650%, 7/01/19 485,900
10,000 6.875%, 4/01/12 10,273
---------------
2,077,173
Kaiser Permanente Center - 4.02%,
2,150,000 6.250%, 3/01/21 2,206,438
-------------
Queen's Medical Center Program - 6.54%
200,000 6.800%, 7/01/00 209,000
300,000 5.200%, 7/01/04 302,625
540,000 6.900%, 7/01/04 569,025
250,000 6.125%, 7/01/11 269,375
600,000 6.200%, 7/01/22 648,750
1,635,000 5.750%, 7/01/26 1,592,081
-------------
3,590,856
St. Francis Medical Center - 3.38%
1,765,000 6.500%, 7/01/22 1,855,456
-------------
Wahiawa General Hospital - 6.15%
230,000 7.125%, 7/01/98 234,887
2,985,000 7.500%, 7/01/12 3,141,713
-------------
3,376,600
Department of Transportation Special Facilities Revenue Bonds - 4.02%
2,250,000 5.750%, 3/01/13 2,205,000
-------------
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
--------- --------
Harbor Capital Improvements Revenue Bonds, Series 1989 - 4.41%
300,000 5.650%, 7/01/02 308,625
100,000 6.200%, 7/01/03 105,750
280,000 6.300%, 7/01/04 298,900
125,000 7.250%, 7/01/10 135,312
305,000 7.250%, 7/01/13 312,921
540,000 7.000%, 7/01/17 578,475
300,000 6.500%, 7/01/19 312,750
400,000 5.500%, 7/01/27 366,500
--------------
2,419,233
Highway Revenue Bonds, Series 1993 - 2.39%
200,000 5.000%, 7/01/09 191,500
150,000 5.000%, 7/01/11 140,063
1,000,000 5.600%, 7/01/14 978,750
--------------
1,310,313
Housing Authority
Single Family Mortgage Purpose Revenue Bonds - 15.05%
145,000 6.300%, 7/01/99 148,625
525,000 8.000%, 7/01/08 542,063
390,000 8.000%, 7/01/10 406,088
405,000 7.000%, 7/01/11 424,238
100,000 5.700%, 7/01/13 100,000
590,000 6.900%, 7/01/16 615,075
305,000 7.375%, 7/01/16 311,884
1,505,000 8.125%, 7/01/17 1,568,962
530,000 9.250%, 7/01/17 539,148
495,000 8.125%, 7/01/19 516,037
400,000 6.750%, 7/01/20 411,000
540,000 7.100%, 7/01/24 562,950
2,015,000 5.900%, 7/01/27 1,992,350
115,000 7.800%, 7/01/29 120,175
--------------
8,258,595
Multi-Family Mortgage Purpose Revenue Bonds - 6.44%
70,000 4.000%, 7/01/97 69,922
180,000 4.500%, 1/01/99 179,100
200,000 4.800%, 1/01/01 198,250
205,000 4.800%, 7/01/01 204,231
210,000 4.900%, 1/01/02 207,638
215,000 4.900%, 7/01/02 213,925
1,000,000 5.700%, 7/01/18 972,500
1,500,000 6.100%, 7/01/30 1,490,625
-------------
3,536,191
Public Housing Authority Bonds - .81%
185,000 5.750%, 8/01/00 189,458
250,000 5.750%, 8/01/04 255,690
--------------
445,148
University Faculty Housing - 4.06%
90,000 4.350%, 10/01/00 89,100
330,000 4.450%, 10/01/01 325,875
345,000 4.550%, 10/01/02 340,256
1,500,000 5.700%, 10/01/25 1,475,625
-------------
2,230,856
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
Honolulu City & County
Board of Water Supply - 1.53%
100,000 5.000%, 7/01/04 100,125
750,000 5.800%, 7/01/21 740,625
--------------
840,750
General Obligation Bonds - 3.20%
100,000 7.300%, 7/01/03 112,375
200,000 7.350%, 7/01/06 231,750
100,000 7.250%, 2/01/08 107,250
1,000,000 7.300%, 2/01/09 1,073,750
240,000 5.500%, 9/01/16 232,200
--------------
1,757,325
Halawa Business Park - 1.73%
170,000 6.300%, 10/15/00 175,950
370,000 6.500%, 10/15/02 388,962
365,000 6.600%, 10/15/03 387,356
--------------
952,268
Housing Authority
Multi-Family Mortgage Purpose Revenue Bonds - 1.90%
1,000,000 6.900%, 6/20/35 1,045,000
-------------
Kauai County
General Obligation Bonds - 4.48%
595,000 6.700%, 8/01/97 600,635
300,000 5.100%, 2/01/01 303,750
410,000 5.850%, 8/01/07 429,988
780,000 5.850%, 8/01/07 818,025
295,000 5.900%, 2/01/12 301,637
--------------
2,454,035
Maui County
General Obligation Bonds - 1.50%
740,000 8.000%, 1/01/01 823,250
--------------
Water System Revenue - 1.40%
315,000 5.850%, 12/01/00 329,175
400,000 6.600%, 12/01/07 435,000
--------------
764,175
Total Hawaii Municipal Bonds 50,127,119
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
SCHEDULE OF INVESTMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
PUERTO RICO MUNICIPAL BONDS - 4.82%
Puerto Rico Commonwealth
Electric Power Authority Revenue Bonds - .71%
100,000 7.125%, 7/01/14 107,250
100,000 7.125%, 7/01/14 107,250
110,000 7.125%, 7/01/14 116,600
55,000 7.125%, 7/01/14 58,438
---------------
389,538
General Obligation Bonds - .14%
70,000 7.750%, 7/01/13 74,550
---------------
Housing Finance Corp.
Multi-Family Mortgage Revenue Bonds - 1.13%
450,000 7.500%, 4/01/22 472,500
140,000 7.650%, 10/15/22 146,825
--------------
619,325
Industrial, Medical & Environmental Pollution Control
Abbott Laboratories - .49%
270,000 6.500%, 7/01/09 271,374
--------------
Baxter Travenol Laboratories - .59%
300,000 8.000%, 9/01/12 321,750
--------------
Upjohn Co. Project - 1.62%
825,000 7.500%, 12/01/23 887,906
--------------
Public Building Authority
Health Facilities & Services - .14%
75,000 7.250%, 7/01/17 79,032
---------------
Total Puerto Rico Municipal Bonds 2,643,475
-------------
VIRGIN ISLANDS MUNICIPAL BONDS - .84%
Virgin Islands
Port Authority Airport Revenue Bonds - .62%
325,000 8.100%, 10/01/05 342,469
--------------
Public Finance Authority, Series A - .22%
100,000 7.3005, 10/01/18 119,625
--------------
Total Virgin Islands Municipal Bonds 462,094
--------------
Total Investments (Cost $51,827,726) (a) 96.99% 53,232,688
Other Assets Less Liabilities 3.01 1,653,447
-------- -------------
Net Assets 100.00% $54,886,135
====== ===========
(a) Aggregate cost for federal income tax purposes is $51,827,726.
At March 31, 1997, unrealized appreciation (depreciation)
of securities for federal income tax purposes is as
follows:
Gross unrealized appreciation $1,563,218
Gross unrealized depreciation (158,256)
----------
Net unrealized appreciation $1,404,962
==========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
HAWAII MUNICIPAL BONDS - 89.33%
Hawaii County
General Obligation Bonds - 4.23%
$ 65,000 6.350%, 5/15/01 $ 65,087
100,000 6.800%, 12/01/01 102,689
100,000 6.500%, 5/15/06 100,163
------------
267,939
Hawaii State
General Obligation Bonds - 1.63%
100,000 5.500%, 7/01/01 102,875
------------
Airport Systems Revenue Bonds - 15.35%
600,000 5.125%, 7/01/00 606,750
150,000 6.400%, 7/01/02 111,694
250,000 5.700%, 7/01/07 253,437
------------
971,881
Kapiolani Hospital - 9.99%
100,000 6.650%, 7/01/98 102,750
200,000 5.500%, 7/01/05 201,750
290,000 7.650%, 7/01/19 327,700
------------
632,200
Queen's Medical Center Program - 6.49%
200,000 6.800%, 7/01/00 209,000
200,000 5.200%, 7/01/04 201,750
------------
410,750
St. Francis Medical Center - 4.28%
270,000 5.250%, 7/01/97 270,848
------------
Wahiawa General Hospital - 4.68%
290,000 7.125%, 7/01/98 296,163
------------
Harbor Capital Improvements Revenue Bonds, Series 1989 - 4.90%
200,000 5.650%, 7/01/02 205,750
100,000 5.850%, 7/01/02 104,375
------------
310,125
Highway Revenue Bonds, Series 1993 - 3.14%
200,000 4.800%, 7/01/03 199,000
------------
Housing Authority
Single Family Mortgage Purpose Revenue Bonds - 5.34%
200,000 6.300%, 7/01/99 205,000
130,000 6.800%, 7/01/99 132,939
------------
337,939
Multi-Family Mortgage Purpose Revenue Bonds - 1.58%
100,000 4.000%, 7/01/97 99,889
-------------
Public Housing Authority Bonds - 3.24%
200,000 5.750%, 8/01/00 204,820
------------
University Faculty Housing - 3.60%
230,000 4.350%, 10/01/00 227,700
------------
University of Hawaii - 4.49%
University Revenue Bonds
280,000 5.450%, 10/01/06 284,200
------------
</TABLE>
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Value
Par Value (Note 1)
Honolulu City & County
Board of Water Supply - 4.75%
300,000 5.000%, 7/01/04 300,375
--------------
General Obligation Bonds - 1.59%
100,000 5.000%, 10/01/02 100,625
------------
Halawa Business park - 3.27%
200,000 6.300%, 10/15/00 207,000
------------
Maui County
General Obligation Bonds - 3.34%
190,000 8.000%, 1/01/01 211,375
------------
Water System Revenue - 3.44%
100,000 6.600%, 12/01/07 108,750
100,000 6.700%, 12/01/11 109,125
------------
217,875
Total Hawaii Municipal Bonds 5,653,579
PUERTO RICO MUNICIPAL BONDS - 3.98%
Puerto Rico Commonwealth
Electric Power Authority Revenue Bonds - 1.53%
90,000 7.125%, 7/01/14 96,525
-------------
General Obligation Bonds - 1.54%
90,000 7.750%, 7/01/17 97,762
-------------
Housing Finance Corp.
Single Family Mortgage Revenue Bonds - .91%
55,000 6.150%, 8/01/03 57,544
-------------
Total Puerto Rico Municipal Bonds 251,831
------------
Total Investments (Cost $5,825,082) (a) 93.31% 5,905,410
Other Assets Less Liabilities 6.69 423,263
-------- ------------
Net Assets 100.00% $6,328,673
====== ==========
(a) Aggregate cost for federal income tax purposes is $5,825,082.
At March 31, 1997, unrealized appreciation (depreciation)
of securities for federal income tax purposes is as
follows:
Gross unrealized appreciation $121,376
Gross unrealized depreciation (41,048)
---------
Net unrealized appreciation $ 80,328
=========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Municipal Intermediate
Bond Municipal
Fund Fund
ASSETS
Investments at market value
(Identified cost $51,827,726 and $5,825,082, respectively)
(Note 1 (A)) $53,232,688 $5,905,410
Cash 1,395,881 341,725
Interest receivable 886,059 99,969
Prepaid expenses - 3,827
-------------------- --------------
Total assets 55,514,628 6,350,931
------------ -----------
LIABILITIES
Payable for investments purchased 370,750 -
Accrued expenses 24,533 -
Distributions payable 233,210 22,258
-------------- -------------
Total liabilities 628,493 22,258
-------------- -------------
NET ASSETS
(Applicable to 5,070,859 and 1,246,836 shares outstanding,
$.01 par value, 20,000,000 shares authorized) $54,886,135 $6,328,673
=========== ==========
NET ASSET VALUE OFFERING AND REPURCHASE PRICE PER SHARE
($54,886,135 / 5,070,859 shares) $10.82
======
($6,328,673 / 1,246,836 shares) $5.08
=====
NET ASSETS
At March 31, 1997, net assets consisted of:
Paid-in capital $53,701,099 $6,253,391
Accumulated net realized loss on investments (219,926) (5,046)
Net unrealized appreciation 1,404,962 80,328
------------- -------------
$54,886,135 $6,328,673
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF OPERATIONS
Six months ended March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Municipal Intermediate
Bond Municipal
Fund Fund
INVESTMENT INCOME
Interest income $1,623,209 $160,715
---------- --------
Expenses
Management fee (Note 2) 137,649 16,046
Distribution costs (Note 2) 27,662 -
Transfer agent fees (Note 2) 18,068 5,083
Shareholder services (Note 2) 27,530 3,209
Accounting fees (Note 2) 19,264 5,871
Legal and audit fees 14,068 1,904
Printing 7,500 952
Custodian fees 5,300 648
Insurance 6,558 635
Registration fees 2,313 -
Directors fees 800 -
--------------- -------------
Total expenses 266,712 34,348
Fee reductions (Note 4) (5,300) (648)
Expenses reimbursed or waived (Note 2) - (9,622)
------------------ -----------
Net expenses 261,412 24,078
------------ ----------
Net investment income 1,361,797 136,637
----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) from security transactions 9,557 (5,046)
Decrease in unrealized appreciation of investments (368,169) (23,283)
------------ ----------
Net loss on investments (358,612) (28,329)
------------ ----------
Net increase in net assets resulting from operations $1,003,185 $108,308
========== ========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
Six months ended March 31, 1997 (Unaudited)
Year ended September 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
1997 1996
---- ----
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 1,361,797 $ 2,668,355
Net realized gain on investments 9,557 21,217
Increase (decrease) in unrealized appreciation of investments (368,169) 202,015
-------------- --------------
Net increase in net assets resulting from operations 1,003,185 2,891,587
Distributions to shareholders from
Net investment income
($.27 and $.55 per share, respectively) (1,361,797) (2,668,355)
Capital share transactions (a)
Increase in net assets resulting from capital share transactions 1,079,820 2,810,813
------------ ------------
Total increase in net assets 721,208 3,034,045
NET ASSETS
Beginning of period 54,164,927 51,130,882
------------ ------------
End of period $54,886,135 $54,164,927
=========== ===========
(a) Summary of capital share activity follows:
</TABLE>
<TABLE>
<S> <C> <C>
1997 1996
------------------------- --------------------------
Shares Value Shares Value
Shares sold 474,503 $ 5,199,455 982,410 $10,706,770
Shares issued on reinvestment
of distributions 73,374 804,682 173,650 1,892,040
--------- ------------- ---------- -------------
547,877 6,004,137 1,156,060 12,598,810
Shares redeemed (449,962) (4,924,317) (900,255) (9,787,997)
-------- ------------ ---------- -------------
Net increase 97,915 $ 1,079,820 255,805 $ 2,810,813
========= =========== ========== ============
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
STATEMENT OF CHANGES IN NET ASSETS
Six months ended March 31, 1997 (Unaudited)
Year ended September 30, 1996
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
1997 1996
---- ----
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income $ 136,637 $ 253,088
Net realized gain (loss) on investments (5,046) 17,216
Decrease in unrealized appreciation of investments (23,283) (35,876)
--------------- -------------
Net increase in net assets resulting from operations 108,308 234,428
Distributions to shareholders from
Net investment income
($.11 and $.22 per share, respectively) (136,637) (253,088)
Capital gains ($.01 per share) (15,405) -
Capital share transactions (a)
Increase (decrease) in net assets resulting from capital
share transactions (251,832) 1,882,838
------------ -----------
Total increase (decrease) in net assets (295,566) 1,864,178
NET ASSETS
Beginning of period 6,624,239 4,760,061
----------- -----------
End of period $6,328,673 $6,624,239
========== ==========
(a) Summary of capital share activity follows:
</TABLE>
<TABLE>
<S> <C> <C>
1997 1996
-------------------------- -------------------------
Shares Value Shares Value
Shares sold 175,054 $ 889,978 688,964 $ 3,522,684
Shares issued on reinvestment
of distributions 21,519 110,598 43,852 224,869
--------- ------------- --------- -------------
196,573 1,000,576 732,816 3,747,553
Shares redeemed (243,935) (1,252,408) (364,169) (1,864,715)
-------- ------------ -------- -------------
Net increase (decrease) (47,362) $ (251,832) 368,647 $ 1,882,838
========= ============ ======== ============
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- -------------------------------------------------------------------------------
Years Ended September 30,
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1997 (b) 1996 1995 1994 1993 1992
---- ---- ---- ---- ---- ----
Net asset value
Beginning of year $10.89 $10.84 $10.62 $11.48 $10.90 $10.47
------ ------ ------ ------ ------ ------
Income from investment operations
Net investment income .27 .55 .55 .55 .58 .60
Net gain (loss) on securities (both realized and unrealized) (.07) .05 .31 (.80) .60 .43
------- ----- ------- ------ ------- -------
Total from investment operations .20 .60 .86 (.25) 1.18 1.03
------- ------ ------- ------ ------- --------
Less distributions
Dividends from net investment income (.27) (.55) (.55) (.55) (.58) (.60)
Distributions from capital gains - - (.09) (.06) (.02) -
------ ------ ------ ------- ----- -------
Total distributions (.27) (.55) (.64) (.61) (.60) (.60)
------ ------ ------ ------- ------ ------
End of year $10.82 $10.89 $10.84 $10.62 $11.48 $10.90
====== ====== ====== ====== ====== ======
Total return 3.66%(c) 5.62% 8.42% (2.18)% 11.11% 10.16%
Ratios/Supplemental Data
Net assets, end of period (in 000's) $54,866 $54,165 $51,131 $52,230 $57,396 $39,291
Ratio of expenses to average net assets
Before expense reimbursements .97% (c) .98% 1.00% .97% .95% .95%
After expense reimbursements .97% (a)(c) .98%(a) .97%(a) .95% .95% .95%
Ratio of net investment income to average net assets
Before expense reimbursements 4.94% (c) 5.03% 5.19% 4.99% 5.21% 5.67%
After expense reimbursements 4.94% (c) 5.03% 5.22% 5.01% 5.21% 5.67%
Portfolio turnover 1.64% 15.16% 17.08% 40.22% 27.77% 18.44%
(a) Ratio of expenses to average net assets after the reduction of
custodian fees under a custodian arrangement were .95% in 1997, 1996
and 1995. Prior to 1995, such reductions were reflected in the expense
ratios.
(b) Six months ended March 31, 1997 (unaudited).
(c) Annualized
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
Six Months
Ended July 5, 1994*
March 31, To
1997 Years Ended September 30, September 30,
(Unaudited) 1996 1995 1994
----------- ---- ---- -----------
Net asset value
Beginning of period $5.12 $5.14 $4.99 $5.00
----- ----- ----- -----
Income from investment operations
Net investment income .11 .22 .23 .05
Net gain (loss) on securities (unrealized) (.03) (.02) .15 (.01)
------- ------- ------- -------
Total from investment operations .08 .20 .38 .04
------- ------- ------- -------
Less distributions
Dividends from net investment income (.11) (.22) (.23) (.05)
Distributions from capital gains (.01) - - -
------- -------- -------- ------
Total distributions (.12) (.22) (.23) (.05)
------- ------- ------- -------
End of period $5.08 $5.12 $5.14 $4.99
===== ===== ===== =====
Total return 3.07% (a) 3.95% 7.86% .72%
Ratios/Supplemental Data
Net assets, end of period (in 000's) $6,329 $6,624 $4,760 $2,447
Ratio of expenses to average net assets
Before expense reimbursements 1.07% (a) 1.50% 1.90% 4.48% (a)
After expense reimbursements .77% (a)(b) .84% (b) .66% (b) 0% (a)
Ratio of net investment income to average net assets
Before expense reimbursements 3.94% (a) 3.66% 3.39% .12% (a)
After expense reimbursements 4.26% (a) 4.32% 4.63% 4.60% (a)
Portfolio turnover 1.64% 17.76% 10.04% 0%
</TABLE>
* Commencement of operations
(a) Annualized
(b) Ratio of expenses to average net assets after the reduction of custodian
fees under a custodian arrangement were .75% for 1997 and 1996 and .64%
for 1995. Prior to 1995, such reductions were reflected in the expense
ratios.
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
First Hawaii Municipal Bond Fund and First Hawaii Intermediate Municipal
Fund ("Funds") are each a series of shares of First Pacific Mutual Fund,
Inc. which is registered under the Investment Company Act of 1940, as a
non-diversified open-end management company.
The investment objective of the Funds is to provide investors with the
maximum level of income exempt from federal and Hawaii income taxes
consistent with the preservation of capital. The Funds seek to achieve
their objective by investing primarily in municipal securities which pay
interest that is exempt from federal and Hawaii income taxes.
The Funds are subject to the risk of price fluctuation of the municipal
securities held in its portfolio which is generally a function of the
underlying credit rating of an issuer, the maturity length of the
securities, the securities' yield, and general economic and interest rate
conditions.
Since the Funds invest primarily in obligations of issuers located in
Hawaii, the marketability and market value of these obligations may be
affected by certain Hawaiian constitutional provisions, legislative
measures, executive orders, administrative regulations, voter initiatives,
and other political and economic developments. If any such problems arise,
they could adversely affect the ability of various Hawaiian issuers to
meet their financial obligation.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amounts of income and
expenses during the reported period.
Actual results could differ from those estimates.
(A) SECURITY VALUATION
Portfolio securities, which are fixed income securities, are valued
by an independent pricing service using market quotations, prices
provided by market-makers, or estimates of market values obtained
from yield data relating to instruments or securities with similar
characteristics, in accordance with procedures established in good
faith by the Board of Directors. Securities with remaining maturities
of 60 days or less are valued on the amortized cost basis as
reflecting fair value. All other securities are valued at their fair
value as determined in good faith by the Board of Directors.
(B) FEDERAL INCOME TAXES
It is the Funds' policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute their taxable income, if any, to their
shareholders.
Therefore, no federal income tax provision is required.
(C) SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS
Security transactions are recorded on the trade date. Interest income
is recorded on the accrual basis. Bond discounts and premiums are
amortized as required by the Internal Revenue Code. Distributions to
shareholders are declared daily and reinvested or paid in cash
monthly. Premiums and discounts are amortized in accordance with
income tax regulations.
(2) INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
First Pacific Management Corporation ("FPMC") provides the Funds with
management and administrative services pursuant to a management agreement.
In accordance with the terms of the management agreement, FPMC receives
compensation at the annual rate of .50% of each Fund's average daily net
assets.
The Funds' distributor, First Pacific Securities ("FPS"), a wholly-owned
subsidiary of FPMC, received $27,662 for costs incurred in connection with
the sale of First Hawaii Municipal Bond Fund's shares (See Note 3).
First Pacific Recordkeeping, ("FPR"), a wholly-owned subsidiary of FPMC,
serves as the transfer agent and accounting agent for the Funds. FPR also
provides the Funds with certain clerical, bookkeeping and shareholder
services pursuant to a service agreement approved by the Funds' directors.
As compensation for these services FPR receives a fee, computed daily and
payable monthly, at an annualized rate of .10% of each Fund's average
daily net assets.
- -------------------------------------------------------------------------------
<PAGE>
FIRST HAWAII MUNICIPAL BOND FUND
FIRST HAWAII INTERMEDIATE MUNICIPAL FUND
NOTES TO FINANCIAL STATEMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
For the six months ended March 31, 1997, FPMC and FPR voluntarily waived
certain management, transfer agent, shareholder services, and accounting
fees in the amount of $9,622 for First Hawaii Intermediate Municipal Fund.
Certain officers and directors of the Funds are also officers of FPMC, FPS
and FPR.
(3) DISTRIBUTION COSTS
The Funds' Board of Directors, including a majority of the Directors who
are not "interested persons" of the Funds, as defined in the Investment
Company Act of 1940, adopted a distribution plan pursuant to Rule 12b-1 of
the Act. The Plan regulates the manner in which a regulated investment
company may assume costs of distributing and promoting the sales of its
shares.
The Plan provides that the Funds may incur certain costs, which may not
exceed .25% per annum of the Funds' average daily net assets, for payment
to the distributor for items such as advertising expenses, selling
expenses, commissions or travel reasonably intended to result in sales of
shares of the Funds.
(4) PURCHASES AND SALES/CUSTODY OF SECURITIES
Purchases and sales of securities aggregated $1,476,633 and $879,338,
respectively for the First Hawaii Municipal Bond Fund. Purchases and sales
of securities for First Hawaii Intermediate Municipal Fund aggregated
$103,701 and $778,225, respectively. Under an agreement with the Custodian
Bank, custodian fees are reduced by credits for cash balances. During the
six months ended March 31, 1997, such reductions amounted to $5,300 and
$648 for the First Hawaii Municipal Bond Fund and the First Hawaii
Intermediate Municipal Bond Fund, respectively.
- -------------------------------------------------------------------------------
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Shareholders
First Pacific Mutual Fund, Inc.
Honolulu, Hawaii
We have audited the accompanying statement of assets and liabilities of First
Idaho Tax-Free Fund (a series of shares of First Pacific Mutual Fund, Inc.),
including the schedule of investments, as of September 30, 1996, and the related
statement of operations, the statement of changes in net assets and the
financial highlights for the period July 3, 1996 (commencement of operations)
the September 30, 1996. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of September 30, 1996,
by correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of First
Idaho Tax-Free Fund as of September 30, 1996, the results of its operations, the
changes in its net assets, and the financial highlights for the period July 3,
1996 to September 30, 1996, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
November 6, 1996
<PAGE>
FIRST IDAHO TAX-FREE FUND
SCHEDULE OF INVESTMENTS
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Par Value
Value (Note 1)
IDAHO MUNICIPAL BONDS (65.03%)
ADA & Canyon Counties
Joint School District (4.00%)
$ 10,000 5.500%, 7/30/12 $ 10,050
Boise City
Independent School District (3.99%)
10,000 5.300%, 7/30/09 10,025
Boise State University
Revenue Bond (3.92%)
10,000 5.050%, 4/01/08 9,875
Boise-Kuna-Irrigation District
Lucky Peak Hydroelectric (4.16%)
10,000 6.000%, 7/01/08 10,450
Bonneville County
General Obligation Bonds (3.85%)
10,000 5.200%, 8/01/12 9,675
Cassia & Twin Falls County
General Obligation Bonds (9.62%)
25,000 5.375%, 8/01/13 24,187
Central Shoshone County
Water District Revenue Bond (3.92%)
10,000 6.150%, 12/01/17 9,875
Gooding City
School District #232 Wendell (4.09%)
10,000 5.800%, 8/01/06 10,300
Idaho Falls
Idaho Electric Revenue Bonds (5.52%)
10,000 10.375%, 4/01/13 13,875
Idaho Housing Agency
Single Family Mortgage - Series B (3.92%)
10,000 5.700%, 7/01/13 9,850
Idaho State
Board of Education (1.99%)
5,000 7.100%, 10/01/17 5,013
Water Reserve Board (4.23%)
10,000 7.250%, 12/01/21 10,637
Student Loan Marketing Asss - Series C (3.96%)
10,000 4.750%, 4/01/99 9,950
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
SCHEDULE OF INVESTMENTS - (Continued)
March 31, 1997 (Unaudited)
- ------------------------------------------------------------------------------
<TABLE>
<S> <C>
Par Value
Value (Note 1)
Nampa Urban Renewal Agency (3.94%)
10,000 5.700%, 8/01/05 9,913
University of Idaho
University Commons Project (3.92%)
10,000 5.650%, 4/01/22 9,862
----------
Total Idaho Municipal Bonds 163,537
----------
PUERTO RICO MUNICIPAL BONDS (32.88%)
Puerto Rico Commonwealth
Housing Finance Corp.
Multi-Family Mortgage Revenue Bonds (4.18%)
10,000 7.500%, 4/01/22 10,500
Single Family Mortgage Revenue Bonds (6.24%)
15,000 6.150%, 8/01/03 15,694
Industrial, Medical & Environmental Pollution Control
Abbott Laboratories (11.99%)
30,000 6.500%, 7/01/09 30,153
Public Building Authority
Health Facilities & Services (10.47%)
25,000 7.250%, 7/01/17 26,344
----------
Total Puerto Rico Municipal Bonds 82,691
----------
Total Investments (cost $248,384) (a) 97.91% 246,228
Other Assets Less Liabilities 2.09 5,261
-------- ----------
Net Assets 100.00% $ 251,489
======== ==========
(a) Aggregate cost for federal income tax purposes is $248,384.
At March 31, 1997, unrealized appreciation (depreciation) of
securities for federal income tax purposes is as follows:
Gross unrealized appreciation $ 524
Gross unrealized depreciation (2,680)
--------
Net unrealized depreciation $ (2,156)
========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments at market value
(Identified cost $248,384) (Note 1(A)) $ 246,228
Cash 2,379
Interest receivable 4,129
----------
Total assets 252,736
LIABILITIES
Accrued expenses 1
Distributions payable 1,246
Total liabilities 1,247
NET ASSETS
(Applicable to 24,892 shares outstanding,
$.01 par value, 20,000,000 shares authorized) $ 251,489
==========
NET ASSET VALUE, OFFERING AND REPURCHASE PRICE PER SHARE
Net asset value and repurchase price per share
($251,489 / 24,892 shares) $ 10.10
========
Offering price per share
(100 / 97.25 of $10.10) * $ 10.39
========
NET ASSETS
At March 31, 1997, net assets consisted of:
Paid-in capital $ 253,645
Net unrealized depreciation of investments (2,156)
----------
$ 251,489
* On investments of $50,000 or more the offering price is reduced.
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF OPERATIONS
Six months ended March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest income $ 4,571
----------
Expenses
Management fee (Note 2) 480
Accounting fees (Note 2) 10,574
Transfer agent fees (Note 2) 6,974
----------
Total expenses 18,028
Expenses waived (Note 2) (18,028)
----------
Net expenses -
-------
Net investment income 4,571
UNREALIZED LOSS ON INVESTMENTS
Decrease in unrealized appreciation of investments (2,297)
----------
Net increase in net assets resulting from operations $ 2,274
==========
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
1996* 1997**
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investments income $ 4,571 $ 122
Increase (decrease) in unrealized appreciation
of investments (2,297) 141
---------- ----------
Net increase in net assets
resulting from operations 2,274 263
Distributions to shareholders from
Net investment income
($.24 and $.05 per share, respectively) (4,571) (122)
Capital share transactions (a)
Increase in net assets resulting from
capital share transactions 142,906 110,739
---------- ----------
Total increase in net assets 140,609 110,880
NET ASSETS
Beginning of period 110,880 -
---------- -------
End of period $ 251,489 $ 110,880
========== ==========
(a) Summary of capital share activity follows:
</TABLE>
<TABLE>
<S> <C> <C>
1997 ** 1996 *
------------------------ ----------------------
Shares Value Shares Value
Shares sold 21,532 $ 219,839 10,914 $ 110,635
Shares issued on
reinvestment of distributions 295 3,013 10 104
-------- ---------- --------- -----------
21,827 222,852 10,924 110,739
Shares redeemed (7,859) (79,946) - -
-------- ---------- --------- --------
Net increase 13,968 $ 142,906 10,924 $ 110,739
======== ========== ========= ===========
</TABLE>
* Period July 1, 1996 (commencement of operations) to September 30, 1996 ** Six
months ended March 31, 1997 (unaudited)
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
- ------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Six Months Period
ended July 1, 1996*
March 31, to
1997 September 30,
(Unaudited) 1996
Net asset value
Beginning of period $10.15 $10.00
------ ------
Income from investment operations
Net investment income .24 .05
Net unrealized gain on securities (.05) .15
--------- ---------
Total from investment operations .19 .20
--------- ---------
Less distributions
Dividends from net investment income (.24) (.05)
--------- ---------
End of period $10.10 $10.15
====== ======
Total return 3.07% (a) 2.05%
Ratios/Supplemental Data
Net assets, end of year (in 000's) $251 $111
Ratio of expenses to average net assets - .02% (a)
Ratio of net investment income to average net assets 4.76% (a) 3.03% (a)
Portfolio turnover 0% 0%
* Commencement of operations
(a) Annualized
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements
<PAGE>
FIRST IDAHO TAX-FREE FUND
NOTES TO FINANCIAL STATEMENTS
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
First Idaho Tax-Free Fund is a series of shares of First Pacific Mutual
Fund, Inc. which is registered under the Investment Company Act of 1940,
as a non-diversified open-end management company.
The investment objective of the Fund is to provide investors with the
maximum level of income exempt from federal and Idaho income taxes
consistent with the preservation of capital. The Fund seeks to achieve its
objective by investing primarily in municipal securities which pay
interest that is exempt from federal and Idaho income taxes.
The Fund is subject to the risk of price fluctuation of the municipal
securities held in its portfolio which is generally a function of the
underlying credit rating of an issuer, the maturity length of the
securities, the securities' yield, and general economic and interest rate
conditions.
Since the Fund invests primarily in obligations of issuers located in
Idaho, the marketability and market value of these obligations may be
affected by certain Idahoan constitutional provisions, legislative
measures, executive orders, administrative regulations, voter initiatives,
and other political and economic developments. If any such problems arise,
they could adversely affect the ability of various Idahoan issuers to meet
their financial obligation. The Fund also has a concentration of
securities from issuers located in Puerto Rico. Those issuers could be
affected by similar developments within Puerto Rico.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements, as well as the reported amounts of income and
expenses during the reported period. Actual results could differ from
those estimates.
(A) SECURITY VALUATION
Portfolio securities, which are fixed income securities, are valued
by an independent pricing service using market quotations, prices
provided by market-makers, or estimates of market values obtained
from yield data relating to instruments or securities with similar
characteristics, in accordance with procedures established in good
faith by the Board of Directors. Securities with remaining maturities
of 60 days or less are valued on the amortized cost basis as
reflecting fair value. All other securities are valued at their fair
value as determined in good faith by the Board of Directors.
(B) FEDERAL INCOME TAXES
It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies
and to distribute its taxable income, if any, to its shareholders.
Therefore, no federal income tax provision is required.
(C) SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS
Security transactions are recorded on the trade date. Interest income
is recorded on the accrual basis. Bond discounts and premiums are
amortized as required by the Internal Revenue Code. Distributions to
shareholders are declared daily and reinvested or paid in cash
monthly. Premiums and discounts are amortized in accordance with
income tax regulations.
- -------------------------------------------------------------------------------
<PAGE>
FIRST IDAHO TAX-FREE FUND
NOTES TO FINANCIAL STATEMENTS - (Continued)
March 31, 1997 (Unaudited)
- -------------------------------------------------------------------------------
(2) INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
First Pacific Management Corporation ("FPMC") provides the Fund with
management and administrative services pursuant to a management agreement.
In accordance with the terms of the management agreement, FPMC receives
compensation at the annual rate of .50% of the Fund's average daily net
assets.
The Funds' distributor, First Pacific Securities ("FPS"), a wholly-owned
subsidiary of FPMC, may be reimbursed for costs incurred in connection
with the sale of the Fund's shares (See Note 3). No reimbursements were
received during the six months ended March 31, 1997.
First Pacific Recordkeeping, ("FPR"), a wholly-owned subsidiary of FPMC,
serves as the transfer agent and accounting agent for the Fund. FPR also
provides the Fund with certain clerical, bookkeeping and shareholder
services pursuant to a service agreement approved by the Fund's directors.
For the period ended March 31, 1997, FPMC and FPR voluntarily waived
certain management, transfer agent, and accounting fees in the amount of
$18,028 for the Fund.
Certain officers and directors of the Funds are also officers of FPMC, FPS
and FPR.
(3) DISTRIBUTION COSTS
The Fund's Board of Directors, including a majority of the Directors who
are not "interested persons" of the Fund, as defined in the Investment
Company Act of 1940, adopted a distribution plan pursuant to Rule 12b-1 of
the Act. The Plan regulates the manner in which a regulated investment
company may assume costs of distributing and promoting the sales of its
shares.
The Plan provides that the Fund may incur certain costs, which may not
exceed .50% per annum of the Fund's average daily net assets, for payment
to the distributor for items such as advertising expenses, selling
expenses, commissions or travel reasonably intended to result in sales of
shares of the Fund.
(4) PURCHASES AND SALES OF SECURITIES
Purchases of securities aggregated $182,347. There were no sales of
securities during the period.
- -------------------------------------------------------------------------------
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 002
<NAME> First Hawaii Intermediate Municipal Fund
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 5,825,082
<INVESTMENTS-AT-VALUE> 5,905,410
<RECEIVABLES> 99,969
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 345,552
<TOTAL-ASSETS> 6,350,931
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,258
<TOTAL-LIABILITIES> 22,258
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,253,391
<SHARES-COMMON-STOCK> 1,246,836
<SHARES-COMMON-PRIOR> 1,294,198
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,046)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 80,328
<NET-ASSETS> 6,328,673
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 160,715
<OTHER-INCOME> 0
<EXPENSES-NET> 24,078
<NET-INVESTMENT-INCOME> 136,637
<REALIZED-GAINS-CURRENT> (5,046)
<APPREC-INCREASE-CURRENT> (23,283)
<NET-CHANGE-FROM-OPS> 108,308
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 253,088
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 175,054
<NUMBER-OF-SHARES-REDEEMED> (243,935)
<SHARES-REINVESTED> 21,519
<NET-CHANGE-IN-ASSETS> (251,832)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 16,046
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 34,348
<AVERAGE-NET-ASSETS> 6,418,400
<PER-SHARE-NAV-BEGIN> 5.12
<PER-SHARE-NII> .11
<PER-SHARE-GAIN-APPREC> (.03)
<PER-SHARE-DIVIDEND> (.11)
<PER-SHARE-DISTRIBUTIONS> (.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.08
<EXPENSE-RATIO> 1.07
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 001
<NAME> First Hawaii Municipal Bond Fund
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 51,827,726
<INVESTMENTS-AT-VALUE> 53,232,688
<RECEIVABLES> 886,059
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 1,395,881
<TOTAL-ASSETS> 55,514,628
<PAYABLE-FOR-SECURITIES> 370,750
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 257,743
<TOTAL-LIABILITIES> 628,493
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 53,701,099
<SHARES-COMMON-STOCK> 5,070,859
<SHARES-COMMON-PRIOR> 4,972,944
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 9,557
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,404,962
<NET-ASSETS> 54,886,135
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,623,209
<OTHER-INCOME> 0
<EXPENSES-NET> 261,412
<NET-INVESTMENT-INCOME> 1,361,797
<REALIZED-GAINS-CURRENT> 9,557
<APPREC-INCREASE-CURRENT> (368,169)
<NET-CHANGE-FROM-OPS> 1,003,185
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,361,797)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 474,503
<NUMBER-OF-SHARES-REDEEMED> (449,962)
<SHARES-REINVESTED> 73,374
<NET-CHANGE-IN-ASSETS> 1,079,820
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 137,649
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 266,712
<AVERAGE-NET-ASSETS> 55,059,600
<PER-SHARE-NAV-BEGIN> 10.89
<PER-SHARE-NII> .27
<PER-SHARE-GAIN-APPREC> (.07)
<PER-SHARE-DIVIDEND> (.27)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.82
<EXPENSE-RATIO> .97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000837351
<NAME> First Pacific Mutual Fund
<SERIES>
<NUMBER> 003
<NAME> First Idaho Tax-Free Fund
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1.000
<INVESTMENTS-AT-COST> 248,384
<INVESTMENTS-AT-VALUE> 246,228
<RECEIVABLES> 4,129
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 2,379
<TOTAL-ASSETS> 252,736
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,247
<TOTAL-LIABILITIES> 1,247
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 253,645
<SHARES-COMMON-STOCK> 24,892
<SHARES-COMMON-PRIOR> 10,924
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
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<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,571
<OTHER-INCOME> 0
<EXPENSES-NET> (18,028)
<NET-INVESTMENT-INCOME> 4,571
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> (2,297)
<NET-CHANGE-FROM-OPS> 2,274
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (4,571)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
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<NUMBER-OF-SHARES-REDEEMED> 7,859
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<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 480
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 18,028
<AVERAGE-NET-ASSETS> 192,000
<PER-SHARE-NAV-BEGIN> 10.15
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> (.05)
<PER-SHARE-DIVIDEND> (.24)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.10
<EXPENSE-RATIO> 0
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
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