<PAGE>
BISHOP STREET FUNDS
PROSPECTUS
APRIL 30, 1999
MONEY MARKET FUND
INVESTMENT ADVISER
FIRST HAWAIIAN BANK
A SUBSIDIARY OF BANCWEST CORPORATION
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED ANY FUND SHARES OR
DETERMINED WHETHER THIS PROSPECTUS IS ACCURATE OR COMPLETE.
IT IS A CRIME FOR ANYONE TO TELL YOU OTHERWISE.
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HOW TO READ THIS PROSPECTUS
Bishop Street Funds is a mutual fund family that offers different classes of
shares in separate investment portfolios (Funds). The Funds have individual
investment goals and strategies. This prospectus gives you important information
about the Institutional Class of the Money Market Fund that you should know
about before investing. Please read this prospectus and keep it for future
reference.
THIS PROSPECTUS HAS BEEN ARRANGED INTO DIFFERENT SECTIONS SO THAT YOU CAN EASILY
REVIEW THIS IMPORTANT INFORMATION. IN THE NEXT COLUMN, THERE IS SOME GENERAL
INFORMATION YOU SHOULD KNOW ABOUT THE FUND.
IF YOU WOULD LIKE MORE DETAILED INFORMATION ABOUT THE FUND, PLEASE SEE:
PAGE
PRINCIPAL INVESTMENT STRATEGIES AND RISKS,
PERFORMANCE INFORMATION AND EXPENSES 4
MORE INFORMATION ABOUT RISK 8
THE FUND'S OTHER INVESTMENTS 9
INVESTMENT ADVISER AND INVESTMENT TEAM 9
PURCHASING, SELLING AND EXCHANGING FUND SHARES 10
DIVIDENDS, DISTRIBUTIONS AND TAXES 13
THE BOARD OF TRUSTEES 14
FINANCIAL HIGHLIGHTS 16
HOW TO OBTAIN MORE INFORMATION ABOUT
BISHOP STREET FUNDS Back Cover
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INFORMATION ABOUT THE FUND
The Fund is a mutual fund. A mutual fund pools shareholders' money and, using
professional investment managers, invests it in securities.
The Fund has its own investment goal and strategies for reaching that goal. The
investment manager invests Fund assets in a way that they believe will help the
Fund achieve its goal. Still, investing in the Fund involves risk and there is
no guarantee that the Fund will achieve its goal. An investment manager's
judgments about the markets, the economy, or companies may not anticipate actual
market movements, economic conditions or company performance, and these
judgments may affect the return on your investment. In fact, no matter how good
a job an investment manager does, you could lose money on your investment in the
Fund, just as you could with other investments. A Fund share is not a bank
deposit and it is not insured or guaranteed by the FDIC or any government
agency.
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BISHOP STREET MONEY MARKET FUND
FUND SUMMARY
Investment Goal Preserving principal and maintaining
liquidity while providing current income
Investment Focus Short-term money market instruments
Share Price Volatility Very low
Principal Investment Strategy Investing in high quality, U.S. dollar
denominated short-term securities
Investor Profile Conservative investors seeking current
income through a low risk liquid
investment
INVESTMENT STRATEGY
The Money Market Fund is comprised of short-term U.S. dollar denominated debt
obligations that are rated in one of the two highest categories by nationally
recognized rating organizations or securities that the Adviser determines are of
comparable quality. The Fund invests substantially all of its assets in
short-term securities including: (i) commercial paper and other short-term
corporate obligations of U.S. and foreign issuers (including asset-backed
securities); (ii) certificates of deposit, time deposits, bankers' acceptances,
bank notes and other obligations of U.S. and foreign savings and loan
institutions and commercial banks (including foreign branches of such banks)
that meet certain asset requirements; (iii) short-term obligations issued by
state and local governments; (iv) obligations of foreign governments (including
Canadian and Provincial Government, and Crown Agency Obligations); and (v) U.S.
Treasury Obligations and obligations issued or guaranteed as to principal and
interest by agencies or instrumentalities of the U.S. Government. The Fund may
also enter into fully-collateralized repurchase agreements.
Using a top-down strategy and bottom-up security selection process, the Adviser
seeks securities with an acceptable maturity, that are marketable and liquid,
that offer competitive yields, and that are issued by issuers that are on a
sound financial footing. The Adviser also considers factors such as the
anticipated level of interest rates and the maturity of individual securities
relative to the maturity of the Fund as a whole. The Fund follows strict SEC
rules about credit quality, maturity and diversification of its investments.
PRINCIPAL RISKS OF INVESTING
An investment in the Fund is subject to income risk, which is the possibility
that the Fund's yield will decline due to falling interest rates. A Fund share
is not a bank deposit and is not insured or guaranteed by the FDIC or any
government agency. In addition, although a money
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market fund seeks to maintain a constant price per share of $1.00, you may lose
money by investing in the Fund.
Although the Fund's U.S. Government securities are considered to be among the
safest investments, they are not guaranteed against price movements due to
changing interest rates.
The Fund's investment approach, with its emphasis on short-term obligations, is
expected to provide current income with low risk to principal and lower exposure
to fluctuations in share price. The Fund can be expected to provide lower
returns than fixed income funds which invest in longer-term securities.
THE MONEY MARKET FUND TRIES TO MAINTAIN A CONSTANT PRICE PER SHARE OF $1.00, BUT
THERE IS NO GUARANTEE THAT THE FUND WILL ACHIEVE THIS GOAL.
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's shares from year
to year.
1996 5.12%
1997 5.29%
1998 5.26%
Best Quarter Worst Quarter
1.33% 1.24%
(12/31/97) (6/30/96)
THIS TABLE COMPARES THE FUND'S AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD
ENDING DECEMBER 31, 1998 TO THOSE OF THE IBC/FINANCIAL DATA FIRST TIER
INSTITUTIONS-ONLY AVERAGE.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS SINCE INCEPTION
- ----------------------------------------------------------------- --------------- ------------- ----------------------
<S> <C> <C> <C>
Money Market Fund 5.26% 5.22% 5.33%*
IBC/Financial Data First Tier Institutions-Only Average 5.33% 5.31% 5.43%**
</TABLE>
* Since January 30, 1995
** Since January 31, 1995
For information concerning the Fund's 7-Day Yield, please call 1-800-262-9565.
WHAT IS AN AVERAGE?
An average measures the share prices and/or performance of a specific group of
mutual funds with a particular investment objective. You cannot invest directly
in an average. The IBC/Financial Data First Tier Institutions-Only Average is a
composite of mutual funds with investment goals similar to the Fund's goals.
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FUND FEES AND EXPENSES
THIS TABLE DESCRIBES THE SHAREHOLDER FEES THAT YOU MAY PAY IF YOU PURCHASE OR
SELL FUND SHARES. YOU WOULD PAY THESE FEES DIRECTLY FROM YOUR INVESTMENT IN THE
FUND.
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price) None
Maximum Deferred Sales Charge (Load)
(as a percentage of net asset value) None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends and other
Distributions (as a percentage of offering price) None
Redemption Fee
(as a percentage of amount redeemed, if applicable) None
Exchange Fee None
Maximum Account Fee None
EVERY MUTUAL FUND HAS OPERATING EXPENSES TO PAY FOR SERVICES SUCH AS
PROFESSIONAL ADVISORY, SHAREHOLDER, ADMINISTRATION AND CUSTODY SERVICES AND
OTHER COSTS OF DOING BUSINESS. THIS TABLE DESCRIBES THE HIGHEST FEES AND
EXPENSES THAT YOU MAY PAY INDIRECTLY IF YOU HOLD SHARES OF THE FUND.
ANNUAL FUND OPERATING EXPENSES
<TABLE>
<S> <C>
Management Fees 0.30%
Other Expenses 0.51%
------------------------------------------------- ----------
Total Annual Fund Operating Expenses 0.81%
</TABLE>
THE FUND'S TOTAL ACTUAL ANNUAL OPERATING EXPENSES FOR THE MOST RECENT FISCAL
YEAR WERE LESS THAN THE AMOUNT SHOWN ABOVE BECAUSE THE ADVISER, ADMINISTRATOR
AND DISTRIBUTOR ARE WAIVING A PORTION OF THEIR FEES IN ORDER TO KEEP TOTAL
OPERATING EXPENSES AT A SPECIFIED LEVEL. THE ADVISER, ADMINISTRATOR AND
DISTRIBUTOR MAY DISCONTINUE ALL OR PART OF THESE WAIVERS AT ANY TIME. WITH THESE
FEE WAIVERS, THE FUND'S ACTUAL TOTAL OPERATING EXPENSES ARE AS FOLLOWS:
MONEY MARKET FUND 0.50%
FOR MORE INFORMATION ABOUT THESE FEES, SEE "INVESTMENT ADVISER AND INVESTMENT
TEAM."
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EXAMPLE: COST OF INVESTING
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and that you sell your
shares at the end of the period.
The Example also assumes that each year your investment has a 5% return and Fund
expenses remain the same. Although your actual costs and returns might be
different, your approximate costs of investing $10,000 in the Fund would be:
1 Year 3 Years 5 Years 10 Years
-------------- ------------ ------------ -------------
$83 $259 $450 $1,002
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MORE INFORMATION ABOUT RISK
MANAGEMENT RISK - The risk that a strategy used by the Fund's management may
fail to produce the intended result.
FIXED INCOME RISK - The market value of fixed income investments changes in
response to interest rate changes and other factors. During periods of falling
interest rates, the values of outstanding fixed income securities generally
rise. Moreover, while securities with longer maturities tend to produce higher
yields, the prices of longer maturity securities are also subject to greater
market fluctuations as a result of changes in interest rates. In addition to
these fundamental risks, different types of fixed income securities may be
subject to the following additional risks:
- - CALL RISK - During periods of falling interest rates, certain debt
obligations with high interest rates may be prepaid (or "called") by the
issuer prior to maturity. This may cause a Fund's average weighted maturity
to fluctuate, and may require a Fund to invest the resulting proceeds at
lower interest rates.
- - CREDIT RISK - The possibility that an issuer will be unable to make timely
payments of either principal or interest. Since the Fund purchases
securities backed by credit enhancements from banks and other financial
institutions, changes in the credit ratings of these institutions could
cause the Fund to lose money and may affect the Fund's share price.
- - EVENT RISK - Securities may suffer declines in credit quality and market
value due to issuer restructurings or other factors. This risk should be
reduced because of the Fund's multiple holdings.
- - MUNICIPAL ISSUER RISK - There may be economic or political changes that
impact the ability of municipal issuers to repay principal and to make
interest payments on municipal securities. Changes to the financial
condition or credit rating of municipal issuers may also adversely affect
the value of the Fund's municipal securities. Constitutional or legislative
limits on borrowing by municipal issuers may result in reduced supplies of
municipal securities. Moreover, certain municipal securities are backed
only by a municipal issuer's ability to levy and collect taxes.
YEAR 2000 RISK - The Fund depends on the smooth functioning of computer
systems in almost every aspect of its business. Like other mutual funds,
businesses and individuals around the world, the Fund could be adversely
affected if the computer systems used by its service providers do not
properly process dates on and after January 1, 2000, and distinguish between
the year 2000 and the year 1900. The Fund has asked its service providers
whether they expect to have their computer systems adjusted for the year 2000
transition, and is seeking assurances from each service provider that they
are devoting significant resources to prevent material adverse consequences
to the Fund. The Fund is also researching and analyzing the year 2000
compliance of the underlying securities. While it is likely that such
assurances will be obtained, the Fund and its shareholders may experience
losses if these assurances prove to be incorrect. The Fund and its
shareholders may also experience losses as a result of year 2000 computer
difficulties experienced by issuers of portfolio securities or third parties,
such as custodians, banks, broker-dealers or others with which the Fund does
business.
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THE FUND'S OTHER INVESTMENTS
In addition to the principal investments and strategies described in this
prospectus, the Fund also may invest in other securities, use other strategies
and engage in other investment practices. These investments and strategies, as
well as those described in this prospectus, are described in detail in our
Statement of Additional Information. Of course, the Fund cannot guarantee that
it will achieve its investment goal.
The investments and strategies described in this prospectus are those that we
use under normal conditions. During unusual economic or market conditions, or
for temporary defensive or liquidity purposes, the Fund may invest up to 100% of
its assets in money market instruments, repurchase agreements and short-term
obligations. When a Fund is investing for temporary defensive purposes, it is
not pursuing its investment goal.
INVESTMENT ADVISER AND INVESTMENT TEAM
INVESTMENT ADVISER
The Investment Adviser makes investment decisions for the Fund and continuously
reviews, supervises and administers the Fund's investment program. The Board of
Trustees supervises the Adviser and establishes policies that the Adviser must
follow in its day-to-day management activities.
First Hawaiian Bank, a subsidiary of BancWest Corporation, serves as the Adviser
to the Money Market Fund. As of December 31, 1998, First Hawaiian Bank had
approximately $7.25 billion in assets under management. For the fiscal year
ended December 31, 1998, First Hawaiian Bank received advisory fees from the
Money Market Fund at the annual rate of 0.22%.
INVESTMENT SUB-ADVISER
Wellington Management Company, LLP serves as the investment sub-adviser to the
Money Market Fund. As of December 31, 1998, Wellington Management Company, LLP
had approximately $211 billion in assets under management. For the fiscal year
ended December 31, 1998, First Hawaiian Bank paid Wellington Management, LLP
sub-advisory fees based on the combined net assets of the Money Market Fund and
the Treasury Money Market Fund at the annual rate of 0.07%.
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INVESTMENT TEAM
The Sub-Adviser, Wellington Management Company, LLP, manages the Money Market
Fund on a day-to-day basis. The Sub-Adviser selects, buys, and sells securities
for the Money Market Fund under the supervision of the Adviser and the Board of
Trustees.
PURCHASING, SELLING AND EXCHANGING FUND SHARES
This section tells you how to purchase, sell (sometimes called "redeem") or
exchange shares of the Fund.
HOW TO PURCHASE FUND SHARES
You may purchase shares directly by:
- - Mail;
- - Telephone;
- - Wire; or
- - Direct Deposit.
To purchase shares directly from us, please call 1-800-262-9565. Write your
check, payable in U.S. dollars, to Bishop Street Funds and mail to Bishop Street
Funds, P.O. Box 419721, Kansas City, MO 64141-6721. We cannot accept third-party
checks, credit cards, credit card checks or cash.
Institutional Class Shares may be purchased by: (i) holders of fiduciary,
advisory, agency, custodial and other similar accounts maintained with BancWest
Corporation and its banking and non-banking subsidiaries; (ii) shareholders of
the Bishop Street Funds with an existing Fund account prior to June 14, 1999;
(iii) registered investment advisors, regulated by a federal or state
governmental authority, or financial planners who purchase shares for an account
for which they are authorized to make investment decisions and who are
compensated by their clients for their services; (iv) retirement and other
benefit plans sponsored by governmental entities; and (v) financial
institutions, which may purchase shares on their own account or as record owner
on behalf of their fiduciary, agency or custodial accounts. You may also
purchase Institutional Class Shares of the Bishop Street Money Market Fund
through a representative of BancWest Corporation and its banking and non-banking
subsidiaries.
GENERAL INFORMATION
You may purchase shares on any day that the New York Stock Exchange (NYSE) and
the Federal Reserve are open for business (a Business Day). Shares cannot be
purchased by Federal Reserve Wire on days when either the NYSE or the Federal
Reserve is closed.
A Fund may reject any purchase order if it is determined that accepting the
order would not be in the best interests of the Fund or its shareholders.
The price per share (the offering price) will be the net asset value per share
(NAV) next determined after a Fund receives your purchase order. A Fund is
deemed to have received your
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order upon receipt of a completed account application and a check or money
order. If you already have an existing account, a Fund is deemed to have
received your order upon receipt of your order and your check or money order.
The Money Market Fund calculates its NAV once each business day at 1:00 p.m.,
Eastern time. So, for you to be eligible to receive dividends from the Money
Market Fund declared on the day you submit your purchase order, generally we
must receive your order before 1:00 p.m., Eastern time and federal funds
(readily available funds) before 4:00 p.m., Eastern time.
HOW WE CALCULATE NAV
NAV for one Fund share is the value of that share's portion of all of the assets
in the Fund.
In calculating NAV for the Money Market Fund, we generally value the Fund's
investment portfolio using the amortized cost valuation method, which is
described in detail in our Statement of Additional Information. If this method
is determined to be unreliable during certain market conditions or for other
reasons, the Fund may value its portfolio at market price or fair value prices
may be determined in good faith using methods approved by the Board of Trustees.
The Fund may hold securities that are listed on foreign exchanges. These
securities may trade on weekends or other days when the Fund does not calculate
NAV. As a result, the NAV of the Fund's shares may change on days when you
cannot purchase or sell Fund shares.
MINIMUM PURCHASES & AUTOMATIC INVESTMENT PLANS
You may open an account with a $1,000 minimum initial investment per fund ($500
for those investing in retirement plans and for officers, directors and
employees of BancWest Corporation and its banking and non-banking subsidiaries).
The minimum initial investment may be reduced with an Automatic Investment Plan
(AIP).
If you have a checking or savings account, you may establish an AIP and open an
account with a $100 minimum initial investment per fund ($50 for officers,
directors and employees of BancWest Corporation and its banking and non-banking
subsidiaries). You may then begin regularly scheduled investments of at least
$50 per month through automatic deductions from your checking or savings
accounts.
HOW TO SELL YOUR FUND SHARES
If you own your shares directly, you may sell (sometimes called "redeem") your
shares on any Business Day by contacting the Fund by mail at P.O. Box 419721,
Kansas City, MO 64141-6721 or by telephone at 1-800-262-9565.
If you are requesting to sell $5,000 or more of your shares in writing, please
include a signature guarantee by a bank or other financial institution (a
notarized signature is not sufficient).
The sale price of each share will be the next NAV determined after the Fund
receives your request.
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SYSTEMATIC WITHDRAWAL PLAN
If you have at least $20,000 in the Money Market Fund in your account, you may
use the Systematic Withdrawal Plan. Under the plan you may arrange monthly,
quarterly, semi-annual or annual automatic withdrawals of at least $50 from the
Fund. The proceeds of the withdrawal will be mailed to you by check or
electronically transferred to your bank account.
RECEIVING YOUR MONEY
Normally, we will send your sale proceeds within seven days after we receive
your request. Your proceeds can be wired to your bank account if your redemption
proceeds are in excess of $500 (subject to a $15 fee) or sent to you by check.
IF YOU RECENTLY PURCHASED YOUR SHARES BY CHECK, REDEMPTION PROCEEDS MAY NOT BE
AVAILABLE UNTIL YOUR CHECK HAS CLEARED (WHICH MAY TAKE UP TO 15 DAYS FROM YOUR
DATE OF PURCHASE).
REDEMPTIONS IN KIND
The Fund generally pays sale (redemption) proceeds in cash. However, under
unusual conditions that make the payment of cash unwise (and for the protection
of the Fund's remaining shareholders) we might pay all or part of your
redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). It is highly unlikely that your shares
would ever be redeemed in kind, but if they were you would probably have to pay
transaction costs to sell the securities distributed to you, as well as taxes on
any capital gains from the sale as with any redemption.
INVOLUNTARY SALES OF YOUR SHARES
If your account balance drops below $1,000 ($500 for those investing in
retirement plans; $100 for officers, directors and employees of BancWest
Corporation and its banking and non-banking subsidiaries, who have arranged to
purchase shares through the AIP) because of redemptions, you may be required to
sell your shares.
But, we will always give you at least 60 days' written notice to give you time
to add to your account and avoid the sale of your shares.
SUSPENSION OF YOUR RIGHT TO SELL YOUR SHARES
The Fund may suspend your right to sell your shares if the NYSE restricts
trading, the SEC declares an emergency or for other reasons. More information
about this is in our Statement of Additional Information.
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HOW TO EXCHANGE YOUR SHARES
You may exchange your shares on any Business Day by contacting us directly by
mail or telephone.
You may also exchange shares through your financial institution by mail or
telephone.
IF YOU RECENTLY PURCHASED SHARES BY CHECK, YOU MAY NOT BE ABLE TO EXCHANGE YOUR
SHARES UNTIL YOUR CHECK HAS CLEARED (WHICH MAY TAKE UP TO 15 DAYS FROM YOUR DATE
OF PURCHASE). THIS EXCHANGE PRIVILEGE MAY BE CHANGED OR CANCELED AT ANY TIME
UPON 60 DAYS' NOTICE.
When you exchange shares, you are really selling your shares and buying other
Fund shares. So, your sale price and purchase price will be based on the NAV
next calculated after the Fund receives your exchange request.
TELEPHONE TRANSACTIONS
Purchasing, selling and exchanging Fund shares over the telephone is extremely
convenient, but not without risk. Although the Fund has certain safeguards and
procedures to confirm the identity of callers and the authenticity of
instructions, the Fund is not responsible for any losses or costs incurred by
following telephone instructions we reasonably believe to be genuine. If you or
your financial institution transact with the Fund over the telephone, you will
generally bear the risk of any loss.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund declares its income daily and distributes its income monthly.
The Fund makes distributions of capital gains, if any, at least annually. If you
own Fund shares on the Fund's record date, you will be entitled to receive the
distribution.
You will receive dividends and distributions in the form of additional Fund
shares unless you elect to receive payment in cash. To elect cash payment, you
must notify the Fund in writing prior to the date of the distribution. Your
election will be effective for dividends and distributions paid after the Fund
receives your written notice. To cancel your election, simply send the Fund
written notice.
TAXES
PLEASE CONSULT YOUR TAX ADVISER REGARDING YOUR SPECIFIC QUESTIONS ABOUT FEDERAL,
STATE AND LOCAL INCOME TAXES. Below we have summarized some important tax issues
that affect the Fund and its shareholders. This summary is based on current tax
laws, which may change.
The Fund will distribute substantially all of its income and capital gains, if
any. The dividends and distributions you receive may be subject to federal,
state and local taxation, depending upon your tax situation. Distributions you
receive from the Fund may be taxable whether or not you reinvest them. Income
distributions are generally taxable at ordinary income tax rates. Capital
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gains distributions are generally taxable at the rates applicable to long-term
capital gains. EACH SALE OR EXCHANGE IS A TAXABLE EVENT.
MORE INFORMATION ABOUT TAXES IS IN THE STATEMENT OF ADDITIONAL INFORMATION.
THE BOARD OF TRUSTEES
The Board of Trustees supervises the management and affairs of the Trust. The
Trustees have approved contracts with certain companies that provide us with
essential management services.
The Trustees of the Trust are as follows:
NAME BUSINESS HISTORY
- ---- ----------------
Martin Anderson Partner, Goodsill Anderson Quinn & Stifel
since 1951
Charles E. Carlbom Senior Executive - Mergers & Acquisitions,
United Grocers, Inc. since 1999; President and
CEO, United Grocers, Inc. (1997-1999);
President and CEO, Western Family Food, Inc.
- Western Family Holding Inc. (1982-1997)
Philip H. Ching Vice Chairman, First Hawaiian Bank
(1968-1996)
James L. Huffman Dean and Professor, Lewis & Clark Law
School since 1973
Shunichi Kimura Judge, State of Hawaii Judiciary (1974-1994)
Robert A. Nesher Chairman, SEI Mutual Funds since 1974;
Director and Executive Vice President of the
Administrator and the Distributor (1981-1994)
William S. Richardson Trustee, Kamehameha Schools Bishop Estate
(1982-1992); Chief Justice, Supreme Court of
Hawaii (1966-1983)
Peter F. Sansevero Regional Director of the Northwestern Region
and First Vice President, Merrill Lynch
(1958-1997)
Manual R. Sylvester Managing Partner, Coopers & Lybrand L.L.P.
(1978-1992); Executive Partner, Coopers &
Lybrand L.L.P. (1992)
Joyce S. Tsunoda Senior Vice President, University of Hawaii
System since 1989; Chancellor, Community
Page 14 of 19
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Colleges-University of Hawaii since 1983
Page 15 of 19
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FINANCIAL HIGHLIGHTS
The table that follows presents performance information about the Fund. This
information is intended to help you understand the Fund's financial performance
for the period of the Fund's operations. Some of this information reflects
financial information for a single Fund share. The total returns in the table
represent the rate that you would have earned (or lost) on an investment in the
Fund, assuming you reinvested all of your dividends and distributions. This
information has been audited by PricewaterhouseCoopers LLP, independent public
accountants. Their report, along with the Fund's financial statements, appears
in the annual report that accompanies our Statement of Additional Information.
You can obtain the annual report, which contains more performance information,
at no charge by calling 1-800-262-9565.
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FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS ENDED DECEMBER 31.
<TABLE>
<CAPTION>
INVESTMENT ACTIVITIES DISTRIBUTIONS FROM
---------------------------------- ---------------------------------------------
NET
REALIZED
AND
NET UNREALIZED NET
ASSET GAINS OR ASSET
VALUE NET LOSSES NET VALUE
BEGINNING INVESTMENT ON INVESTMENT CAPITAL END OF
OF PERIOD INCOME SECURITIES INCOME GAINS PERIOD
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND
1998: $ 1.00 $0.05 -- $(0.05) -- $1.00
1997: $ 1.00 $0.05 -- $(0.05) -- $1.00
1996: $ 1.00 $0.05 -- $(0.05) -- $1.00
1995(1): $ 1.00 $0.05 -- $(0.05) -- $1.00
<CAPTION>
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES TO RATIO OF INCOME TO
NET EXPENSES AVERAGE NET AVERAGE
ASSETS TO NET ASSETS INVESTMENT NET ASSETS
END OF AVERAGE EXCLUDING FEE INCOME TO EXCLUDING FEE
TOTAL PERIOD NET WAIVERS AND AVERAGE WAIVERS AND
RETURN (000) ASSETS REIMBURSEMENTS NET ASSETS REIMBURSEMENTS
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND
1998: 5.26% $268,318 0.50% 0.81% 5.12% 4.81%
1997: 5.29% $246,671 0.51% 0.85% 5.18% 4.84%
1996: 5.12% $274,125 0.49% 0.60% 5.01% 4.90%
1995(1): 5.67%+ $305,120 0.50%* 0.66%* 5.50%* 5.34%*
</TABLE>
+ TOTAL RETURN HAS BEEN ANNUALIZED.
* ANNUALIZED.
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN
ROUNDED TO $0.
(1) COMMENCED OPERATIONS ON JANUARY 30, 1995.
Page 17 of 19
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BISHOP STREET FUNDS
INVESTMENT ADVISER
Portfolio Management Department
First Hawaiian Bank
999 Bishop Street
Honolulu, Hawaii 96813
SUB-ADVISER
Wellington Management Company, LLP
75 State Street
Boston, Massachusetts 02109
DISTRIBUTOR
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, Pennsylvania 19103
More information about the Fund is available without charge through the
following:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI dated April 30, 1999, includes detailed information about the Bishop
Street Funds. The SAI is on file with the SEC and is incorporated by reference
into this prospectus. This means that the SAI, for legal purposes, is a part of
this prospectus.
ANNUAL AND SEMI-ANNUAL REPORTS
These reports list the Fund's holdings and contain information from the Fund's
managers about strategies, and recent market conditions and trends. The reports
also contain detailed financial information about the Fund.
TO OBTAIN MORE INFORMATION:
Page 18 of 19
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BY TELEPHONE: Call 1-800-262-9565
BY MAIL: Write to the Fund
Bishop Street Funds
c/o SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
FROM THE SEC: You can also obtain the SAI or the Annual and Semi-annual reports,
as well as other information about the Bishop Street Funds, from the SEC's
website ("http://www.sec.gov"). You may review and copy documents at the SEC
Public Reference Room in Washington, DC (for information call 1-800-SEC-0330).
You may request documents by mail from the SEC, upon payment of a duplicating
fee, by writing to: Securities and Exchange Commission, Public Reference
Section, Washington, DC 20549-6009. The Fund's Investment Company Act
registration number is 811-08572.
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