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BISHOP STREET FUNDS
Bishop Street Hawaii Tax-Free Fund
Supplement dated December 8, 1995
to Prospectus dated January 30, 1995
This supplement provides new and additional information beyond that
contained in the Prospectus and should be retained and read in conjunction
with such Prospectus.
The Board of Trustees has adopted, pending shareholder approval, an
amendment to the investment policies of the Hawaii Tax-Free Fund that would
eliminate the current requirement that 80% of the Fund's assets be invested
in municipal securities the interest income from which is not treated as a
preference item for purposes of the federal alternative minimum tax (AMT).
Consistent with this amended policy, the Board approved a change in the
Fund's name to the "Bishop Street Hawaii Municipal Bond Fund."
If this proposal is approved by the shareholders, the second and third
paragraphs of the Fund's "Investment Objectives and Policies" section on
pages 5 and 6 of the Prospectus will be amended and restated as follows:
The Fund invests at least 80% of its assets in bonds and notes issued
by states, territories, and possessions of the U.S. and their
agencies, authorities, instrumentalities and political subdivisions,
that are rated AAA, AA, A or BBB by S&P, Aaa, Aa, A or Baa by Moody's
or AAA, AA, A or BBB by Fitch Investors Service ("Fitch"), and which
pay interest that is not subject to ordinary Federal income tax
("Municipal Securities"). There is no restriction on the percentage of
the fund's assets that may be invested in obligations the interest
income on which is treated as a preference item for individuals for
purposes of the federal alternative minimum tax. Under normal
circumstances, the Fund will invest at least 65% of its assets in
Municipal Securities issued by the State of Hawaii, its agencies,
instrumentalities, and political sub-divisions, the income on which is
exempt form State of Hawaii personal income taxes ("Hawaii Municipal
Securities").
The Fund may invest up to 20% of its assets in taxable securities.
The Fund may also purchase unrated securities that are of comparable
quality at the time of purchase as determined by the Adviser. The Fund
may purchase shares of other investment companies and may purchase
securities on a "when-issued" basis.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
