<PAGE>
BISHOP STREET FUNDS
SUPPLEMENT DATED JANUARY 31, 1997 TO THE TREASURY MONEY MARKET FUND
PROSPECTUS DATED FEBRUARY 17, 1996.
This supplement to the Treasury Money Market Fund Prospectus dated February 17,
1996, as revised January 31, 1997 supersedes and replaces any existing
supplements to the prospectus. This supplement provides new and additional
information beyond that contained in the Prospectus and should be read in
conjunction with the Prospectus. Unless otherwise indicated in the supplement,
defined terms have the same meaning as in the Prospectus.
The following table replaces the "Annual Operating Expenses" and "Example" found
on page 3 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) RETAIL CLASS B SHARES
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Advisory Fees (after fee waivers)(1) . . . . . . . . . .18%
Rule 12b-1 Fees(2) . . . . . . . . . . . . . . . . . . .00%
Other Expenses (after fee waivers) . . . . . . . . . .16%
Shareholder Servicing Fees (after fee waivers)(3). . .10%
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Total Operating Expenses (after fee waivers)(4). . . . .44%
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(1) The Adviser has agreed to waive a portion of its fees. The Adviser
reserves the right to terminate the waiver at any time in its sole
discretion. Absent such fee waivers, advisory fees would be .30% for the
Fund.
(2) The Distributor has agreed to waive its right to receive fees under the
Rule 12b-1 Distribution Plan. Absent this waiver, the maximum Rule 12b-1
fee would be .25%.
(3) Absent the Adviser's voluntary fee waivers, shareholder servicing fees
would be .25% for the Fund.
(4) Absent the Adviser's voluntary fee waivers, total operating expenses
would be .96% for the Fund.
EXAMPLE
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1 YR. 3 YRS. 5 YRS. 10 YRS.
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An investor in the Retail Class B shares of
a fund would pay the following expenses on
a $1,000 investment assuming (1) 5% annual
return and (2) redemption at the end of
each time period: . . . . . . . . . . . . 5 14 25 55
- --------------------------------------------------------------------------------
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The following table replaces the "Annual Operating Expenses" and "Example" found
on page 4 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) INSTITUTIONAL CLASS A SHARES
- --------------------------------------------------------------------------------
Advisory Fees (after fee waivers)(1) . . . . . . . . . .18%
Other Expenses (after fee waivers)(2). . . . . . . . . .16%
Shareholder Servicing Fees (after fee waivers) (3) . .10%
- --------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(4). . . . .44%
- --------------------------------------------------------------------------------
(1) The Adviser has agreed to waive a portion of its fees. The Adviser
reserves the right to terminate the waiver at any time in
its sole discretion. Absent such fee waivers, advisory fees would be
.30% for the Fund.
(2) These amounts represent estimates for the current fiscal year.
(3) Absent the Adviser's voluntary fee waivers, the shareholder servicing
fees would be .25% for the Fund.
(4) Absent the Adviser's voluntary fee waivers, total operating expenses
would be .56% for the Fund.
EXAMPLE
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1 YR. 3 YRS. 5 YRS. 10 YRS.
- --------------------------------------------------------------------------------
An investor in the Institutional Class A
shares of a fund would pay the following
expenses on a $1,000 investment assuming
(1) 5% annual return and (2) redemption at
the end of each time period: . . . . . . . 5 14 25 55
- --------------------------------------------------------------------------------
The following information replaces the first paragraph under "The Distributor"
section on page 6 of the Prospectus.
SEI Financial Services Company (the "Distributor"), a wholly-owned
subsidiary of SEI, serves as distributor. The Retail Class B shares of
the Trust have a Rule 12b-1 Distribution Plan (the "Retail Class B
Plan"), however, the Distributor has agreed to waive its right to receive
fees under the Retail Class B Plan. Financial institutions that are the
record owner of shares for the account of their customers may impose
separate fees for account services to their customers.
Each Fund has adopted a shareholder servicing plan for its Institutional
Class A and Retail Class B shares (the "Service Plan") under which a
shareholder servicing fee of up to .25%
<PAGE>
of average daily net assets attributable to shares of each class will be
paid to the Distributor. Under the Service Plan, the Distributor may
perform, or may compensate other service providers for performing, the
following shareholder and administrative services: maintaining client
accounts; arranging for bank wires; responding to client inquiries
concerning services provided on investments; assisting clients in
changing dividend options, account designations and addresses;
sub-accounting; providing information on share positions to clients;
forwarding shareholder communications to clients; processing purchase,
exchange and redemption orders; and processing dividend payments.
Under the Service Plan, the Distributor may retain as a profit any
difference between the fee it receives and the amount it pays to third
parties.
The following sentence supplements the paragraph under "How To Purchase Retail
Class B Shares" on page 7 of the Prospectus and follows the last sentence of
that paragraph.
Retail Class B shares are not yet available for purchase by investors.
------------------------------------------------------------
Unaudited financial information for the Bishop Street Treasury Money Market Fund
for the period ended June 30, 1996 is as follows.
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
Bishop Street Treasury
Money Market Fund - Class A (1)
Net Asset Value, Beginning of Period . . . . . . . . . . . . . . . . . . . . ---
Investment Activities
Net Investment Income . . . . . . . . . . . . . . . . . . . . . . . .0.01
Net Realized and Unrealized Gain (Loss) on Investments. . . . . . . . ---
Distributions
Net Investment Income . . . . . . . . . . . . . . . . . . . . . . .(0.01)
Capital Gains . . . . . . . . . . . . . . . . . . . . . . . . . . . . ---
Net Asset Value, End of Period . . . . . . . . . . . . . . . . . . . . . . .1.00
Total Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.10%
Net Assets, End of Period (000). . . . . . . . . . . . . . . . . . . . .$173,023
Ratio of Expenses to Average Net Assets. . . . . . . . . . . . . . . . . . 0.44%
Expenses to Average Net Assets Excluding Fee Waivers and Reimbursements. . 0.56%
Ratio of Net Investment Income to Average Net Assets . . . . . . . . . . . 4.91%
<PAGE>
Ratio of Net Investment Income to Average Net Assets Excluding Fee Waivers and
Reimbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.79%
Portfolio Turnover Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . ---
Amounts Designated as "---" are either $0 or have been rounded to $0.
(1) The Fund commenced operations on May 1, 1996
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
BISHOP STREET FUNDS
SUPPLEMENT DATED JANUARY 31, 1997 TO THE HIGH GRADE INCOME FUND, HAWAII
MUNICIPAL BOND FUND AND EQUITY FUND PROSPECTUS DATED APRIL 29, 1996.
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 following table replaces the "Annual Operating Expenses" and "Example" found
on page 3 of the Prospectus.
RETAIL CLASS B SHARES
---------------------------------------
HAWAII HIGH
MUNICIPAL GRADE
ANNUAL OPERATING EXPENSES BOND INCOME EQUITY
(as a percentage of average net assets) FUND FUND FUND
- --------------------------------------------------------------------------------
Advisory Fees (after fee waivers)(1) . . .00% .45% .65%
Rule 12b-1 Fee (2) . . . . . . . . . . . .00% .00% .00%
Other Expenses (after expense
reimbursements)(3). . . . . . . . . . . .21% .25% .25%
Shareholder Servicing Fees
(after fee waivers) (4). . . . . . . .00% .10% .10%
- --------------------------------------------------------------------------------
Total Operating Expenses
(after fee waivers and expense
reimbursements)(5). . . . . . . . . .21% .80% 1.00%
- --------------------------------------------------------------------------------
(1) These amounts for the Hawaii Municipal Bond Fund have been restated to
reflect reductions in fee waiver and expense reimbursement
arrangements effective in the current fiscal year. As discussed
below, the Adviser and the Administrator have agreed to waive a
portion of their fee, and reserve the right to terminate their waivers
at any time in their sole discretion. Absent such fee waivers,
advisory fees would be .55% for the High Grade Income Fund, .35% for
the Hawaii Municipal Bond Fund, and .74% for the Equity Fund.
(2) The Distributor has agreed to waive its right to receive fees under
the Rule 12b-1 Distribution Plan. Absent this waiver, the maximum
Rule 12b-1 Fee would be .25%.
(3) These amounts represent estimates for the current fiscal year for
the High Grade Income and Equity Funds. The Adviser has agreed on a
voluntary basis to reimburse expenses so that the total operating
expenses of the Hawaii Municipal Bond Fund will be maintained at
.21%. Amounts reimbursed by the Adviser may result in taxable
income for shareholders of that fund. Absent these expense
reimbursements, Other Expenses for the Hawaii Municipal Bond Fund
would be .66% and the administration fee for the Hawaii Municipal
Bond Fund would be .20%.
(4) Absent the Distributor's voluntary fee waivers, shareholder servicing
fees would be .25% for the Fund.
(5) These amounts for the Hawaii Municipal Bond Fund have been restated to
reflect reductions in fee waiver and expense reimbursement
arrangements effective in the current fiscal year. Absent the
Adviser's and, with respect to the Hawaii Municipal Bond Fund, the
Administrator's fee waivers and expense reimbursements, total
operating expenses would be 1.26% for the Hawaii Municipal Bond Fund,
1.30% for the High Grade Income Fund and 1.49% for the Equity Fund.
<PAGE>
EXAMPLE
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1 YR. 3 YRS. 5 YRS. 10 YRS.
- --------------------------------------------------------------------------------
An investor in the Retail Class B shares of
a fund would pay the following expenses on a
$1,000 investment assuming (1) 5% annual
return and (2) redemption at the end of each
time period:
Hawaii Municipal Bond Fund . . . . . . . . . . . 38 45 52 73
High Grade Income Fund . . . . . . . . . . . . . 43 60 78 131
Equity Fund . . . . . . . . . . . . . . . . . . 45 66 88 153
- --------------------------------------------------------------------------------
The following table replaces the "Annual Operating Expenses" and "Example" found
on page 4 of the Prospectus.
INSTITUTIONAL CLASS A SHARES
-------------------------------
HAWAII HIGH
MUNICIPAL GRADE
ANNUAL OPERATING EXPENSES BOND INCOME EQUITY
(as a percentage of average net assets) FUND FUND FUND
- --------------------------------------------------------------------------------
Advisory Fees (after fee waivers)(1) . . . . . . .00% .45% .65%
Other Expenses (after expense
reimbursements)(2) . . . . . . . . . . . . . . .21% .25% .25%
Shareholder Servicing Fees (after fee
waivers)(3) . . . . . . . . . . . . . . . . .10% .10% .10%
- --------------------------------------------------------------------------------
Total Operating Expenses
(after fee waivers and expense
reimbursements)(4). . . . . . . . . . . . . .31% .80% 1.00%
- --------------------------------------------------------------------------------
(1) These amounts for the Hawaii Municipal Bond Fund have been restated to
reflect reductions in fee waiver and expense reimbursement
arrangements effective in the current fiscal year. As discussed
below, the Adviser and the Administrator have agreed to waive a
portion of their fee, and reserve the right to terminate their waivers
at any time in their sole discretion. Absent such fee waivers,
advisory fees would be .55% for the High Grade Income Fund, .35% for
the Hawaii Municipal Bond Fund, and .74% for the Equity Fund.
(2) These amounts represent estimates for the current fiscal year for the
High Grade Income and Equity Funds. The Adviser has agreed on a
voluntary basis to reimburse expenses so that the total operating
expenses of the Hawaii Municipal Bond Fund will be maintained at
.31%. Amounts reimbursed by the Adviser may result in taxable income
for shareholders of that fund. Absent these expense reimbursements,
Other Expenses for the Hawaii Municipal Bond Fund would be .66% and
the administration fee for the Hawaii Municipal Bond Fund would be
.20%.
(3) Absent the Distributor's voluntary fee waivers, shareholder servicing
fees would be .25% for the Fund.
(4) These amounts for the Hawaii Municipal Bond Fund have been restated
to reflect reductions in fee waiver and expense reimbursement
arrangements effective in the current fiscal year. Absent the
Adviser's and, with respect to the Hawaii Municipal Bond Fund, the
Administrator's fee waivers and expense reimbursements, total
operating expenses would be .91% for the Hawaii Municipal Bond Fund,
1.05% for the High Grade Income Fund and 1.24% for the Equity Fund.
<PAGE>
EXAMPLE
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1 YR. 3 YRS. 5 YRS. 10 YRS.
- --------------------------------------------------------------------------------
An investor in the Institutional Class A shares
of a fund would pay the following expenses on
a $1,000 investment assuming (1) 5% annual
return and (2) redemption at the end of each
time period:
Hawaii Municipal Bond Fund . . . . . . . . . . . . 2 7 12 27
High Grade Income Fund . . . . . . . . . . . . . . 8 26 44 99
Equity Fund. . . . . . . . . . . . . . . . . . . . 10 32 55 122
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The following information replaces the first paragraph under "The Distributor"
section on page 9 of the Prospectus.
SEI Financial Services Company (the "Distributor"), a wholly-owned
subsidiary of SEI, serves as distributor. The Retail Class B shares of
the Trust have a Rule 12b-1 Distribution Plan (the "Retail Class B
Plan"), however, the Distributor has agreed to waive its right to
receive fees under the Retail Class B Plan. Financial institutions
that are the record owner of shares for the account of their customers
may impose separate fees for account services to their customers.
Each Fund has adopted a shareholder servicing plan for its
Institutional Class A and Retail Class B shares (the "Service Plan")
under which a shareholder servicing fee of up to .25% of average daily
net assets attributable to the shares of each class will be paid to
the Distributor. Under the Service Plan, the Distributor may perform,
or may compensate other service providers for performing, the
following shareholder and administrative services: maintaining client
accounts; arranging for bank wires; responding to client inquiries
concerning services provided on investments; assisting clients in
changing dividend options, account designations and addresses; sub-
accounting; providing information on share positions to clients;
forwarding shareholder communications to clients; processing purchase,
exchange and redemption orders; and processing dividend payments.
Under the Service Plan, the Distributor may retain as a profit any
difference between the fee it receives and the amount it pays to third
parties.
The following information replaces the last sentence under "Financial
Highlights" found on page 5 of the Prospectus.
As of January 31, 1997, the Equity and High Grade Income Funds had
commenced operations and made Institutional Class A shares available
for purchase.
<PAGE>
The following information should replace paragraph 5, 6 and 7 under "The
Adviser" section on page 8 and 9 of the Prospectus.
The day-to-day management of the High Grade Income and Equity Fund's
investments is the responsibility of a team of investment professionals.
Decisions are made by committee and no person has primary responsibility
for making recommendations to the committee.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
BISHOP STREET FUNDS
SUPPLEMENT DATED JANUARY 31, 1997 TO THE MONEY
MARKET FUND PROSPECTUS DATED APRIL 29, 1996.
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 following table replaces the "Annual Operating Expenses" and "Example" found
on page 3 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) RETAIL CLASS B SHARES
- --------------------------------------------------------------------------------
Advisory Fees (after fee waivers)(1) . . . . . . . . . . .28%
Rule 12b-1 Fee(2). . . . . . . . . . . . . . . . . . . . .00%
Other Expenses (after fee waivers) . . . . . . . . . . . .22%
Shareholder Servicing Fees (after
fee waivers) (3) . . . . . . . . . . . . . . . . . . .10%
- --------------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(4). . . . . .60%
- --------------------------------------------------------------------------------
(1) These numbers have been restated to reflect reductions in fee waiver
arrangements effective in the current fiscal year. The Adviser has
agreed waive a portion of its fees. Absent fee waivers, advisory fees
would be .30% for the Fund. The Adviser reserves the right to
terminate the waiver at any time in its sole discretion.
(2) The Distributor has agreed to waive its right to receive fees under
the Rule 12b-1 Distribution Plan. Absent this waiver, the maximum
Rule 12b-1 fee would be .25%.
(3) Absent the Adviser's voluntary fee waivers, shareholder servicing fees
would be .25% for the Fund.
(4) These numbers have been restated to reflect reductions in fee waiver
arrangements effective in the current fiscal year. Absent the
Adviser's fee waivers, total operating expenses would be 1.12% for the
Fund.
EXAMPLE
- --------------------------------------------------------------------------------
1 YR. 3 YRS. 5 YRS. 10 YRS.
- --------------------------------------------------------------------------------
An investor in the Retail Class B shares of
a fund would pay the following expenses on
a $1,000 investment assuming (1) 5% annual
return and (2) redemption at the end of each
time period: . . . . . . . . . . . . . . . . . . . 6 9 33 75
- --------------------------------------------------------------------------------
<PAGE>
The following table replaces the "Annual Operating Expenses" and "Example" found
on page 4 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) INSTITUTIONAL CLASS A SHARES
- --------------------------------------------------------------------------------
Advisory Fees (after fee waivers)(1) . . . . . . . . .28%
Other Expenses . . . . . . . . . . . . . . . . . . . .12%
Shareholder Servicing Fees (after
fee waivers) (2). . . . . . . . . . . . . . . . . .10%
- --------------------------------------------------------------------------------
Total Operating Expenses (after
fee waivers) (3). . . . . . . . . . . . . . . . . .60%
- --------------------------------------------------------------------------------
(1) These numbers have been restated to reflect reductions in fee waiver
arrangements effective in the current fiscal year. The Adviser has
agreed waive a portion of its fees. Absent fee waivers, advisory fees
would be .30% for the Fund. The Adviser reserves the right to
terminate the waiver at any time in its sole discretion.
(2) Absent the Adviser's voluntary fee waivers, shareholder servicing fees
would be .25% for the Fund.
(3) These numbers have been restated to reflect reductions in fee waiver
arrangements effective in the current fiscal year. Absent the
Adviser's fee waivers, total operating expenses would be .87% for the
Fund.
EXAMPLE
- --------------------------------------------------------------------------------
1 YR. 3 YRS. 5 YRS. 10 YRS.
- --------------------------------------------------------------------------------
An investor in the Institutional Class A
shares of a fund would pay the following
expenses on a $1,000 investment assuming
(1) 5% annual return and (2) redemption at
the end of each time period: . . . . . . . . . . 6 9 33 75
- --------------------------------------------------------------------------------
The following information replaces the first paragraph under "The Distributor"
section in each Prospectus.
SEI Financial Services Company (the "Distributor"), a wholly-owned
subsidiary of SEI, serves as distributor. The Retail Class B shares of the
Trust have a Rule 12b-1 Distribution Plan (the "Retail Class B Plan"),
however, the Distributor has agreed to waive its right to receive fees
under the Retail Class B Plan. Financial institutions that are the record
owner of shares for the account of their customers may impose separate fees
for account services to their customers.
Each Fund has adopted a shareholder servicing plan for its Institutional
Class A and Retail Class B shares (the "Service Plan") under which a
shareholder servicing fee of up to
<PAGE>
.25% of average daily net assets attributable to shares of each class will
be paid to the Distributor. Under the Service Plan, the Distributor may
perform, or may compensate other service providers for performing, the
following shareholder and administrative services: maintaining client
accounts; arranging for bank wires; responding to client inquiries
concerning services provided on investments; assisting clients in changing
dividend options, account designations and addresses; sub-accounting;
providing information on share positions to clients; forwarding shareholder
communications to clients; processing purchase, exchange and redemption
orders; and processing dividend payments. Under the Service Plan, the
Distributor may retain as a profit any difference between the fee it
receives and the amount it pays to third parties.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
