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N-CSRS 1 d404697dncsrs.htm BISHOP STREET FUNDS Bishop Street Funds

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act File Number 811-08572

Bishop Street Funds

(Exact name of registrant as specified in charter)

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Address of principal executive offices)

SEI Investments

One Freedom Valley Drive

Oaks, PA 19456

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-262-9565

Date of fiscal year end: December 31, 2018

Date of reporting period: June 30, 2018

Item 1.

Reports to Stockholders.

A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR § 270.30e-1) is attached hereto.

LOGO

The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

A description of the policies and procedures that the Funds use to determine how to vote proxies (if any) relating to portfolio securities is available without charge, by calling 1-800-262-9565 or by visiting the Commission’s website at http://www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available without charge, by calling 1-800-262-9565 or by visiting the Funds’ website at http://www.bishopstreetfunds.com or the website of the Securities and Exchange Commission.

BISHOP STREET

TABLE OF CONTENTS

FUNDS


Schedule of Investments
Dividend Value Fund			2
High Grade Income Fund			6
Hawaii Municipal Bond Fund			14

Statements of Assets and Liabilities			24

Statements of Operations			25

Statements of Changes in Net Assets			26

Financial Highlights			28

Notes to Financial Statements			30

Disclosure of Fund Expenses			41

Renewal of Investment Advisory and Sub-Advisory Agreements			43

Shareholder Voting Results			47


Dividend Value Fund			(unaudited)

Top Ten Equity Holdings^†


		Percentage of Investments

1.	Microsoft		3.9%

2.	JPMorgan Chase		3.8%

3.	Johnson & Johnson		3.7%

4.	Apple		3.5%

5.	Cisco Systems		2.5%

6.	Home Depot		2.4%

7.	Union Pacific		2.3%

8.	ExxonMobil		2.2%

9.	Pfizer		2.2%

10.	Honeywell International		2.2%

LOGO

†

Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments


Shares			Value (000)
	COMMON STOCK — 97.7%
	Consumer Discretionary — 7.2%
	23,273	Comcast Cl A	$	764
	4,863	General Motors		192
	4,748	Home Depot		926
	2,349	McDonald’s		368
	2,575	TJX		245
	2,586	Walt Disney		271

				2,766


Bishop Street Funds


Dividend Value Fund			(unaudited)

Schedule of Investments

(continued)


Shares			Value (000)
	Consumer Staples — 9.3%
	8,154	Altria Group	$	463
	4,271	Coca-Cola Enterprises		174
	7,491	Kellogg		523
	2,125	Kimberly-Clark		224
	5,851	PepsiCo		637
	8,570	Philip Morris International		692
	4,416	Procter & Gamble		344
	5,732	Wal-Mart Stores		491

				3,548

	Energy — 7.1%
	6,061	Chevron		766
	3,623	ConocoPhillips		252
	10,236	ExxonMobil		847
	11,151	Suncor Energy		454
	3,615	Valero Energy		401

				2,720

	Financials — 18.4%
	18,584	Bank of America		524
	6,666	Bank of New York Mellon		359
	7,826	BB&T		395
	1,106	BlackRock		552
	4,461	Chubb		567
	3,054	CME Group		500
	14,098	JPMorgan Chase		1,469
	7,698	Marsh & McLennan		631
	4,589	PNC Financial Services Group		620
	3,287	T Rowe Price Group		382
	9,230	US Bancorp		462
	10,577	Wells Fargo		586

				7,047

	Health Care — 11.3%
	4,368	Bristol-Myers Squibb		242
	3,587	Eli Lilly		306
	2,235	Gilead Sciences		158
	11,543	Johnson & Johnson		1,401
	2,855	Medtronic PLC		244
	13,268	Merck		805
	23,092	Pfizer		838
	1,258	UnitedHealth Group		309

				4,303


June 30, 2018				www.bishopstreetfunds.com


Dividend Value Fund			(unaudited)

Schedule of Investments

(continued)


Shares			Value (000)
	Industrials — 14.7%
	2,441	3M	$	480
	1,448	Boeing		486
	1,655	Cummins		220
	3,441	General Dynamics		641
	5,746	Honeywell International		828
	3,497	Ingersoll-Rand PLC		314
	2,795	Lockheed Martin		826
	1,798	Parker Hannifin		280
	2,044	Stanley Black & Decker		271
	6,114	Union Pacific		866
	4,754	Waste Management		387

				5,599

	Information Technology — 18.6%
	1,600	Accenture PLC		262
	7,162	Apple		1,326
	4,274	Automatic Data Processing		573
	1,863	Broadcom		452
	5,314	CA		189
	22,361	Cisco Systems		962
	14,849	Intel		738
	1,457	International Business Machines		204
	2,189	Kla-Tencor		224
	15,146	Microsoft		1,494
	6,383	Texas Instruments		704

				7,128

	Materials — 2.0%
	5,589	DowDuPont		368
	1,670	LyondellBasell Industries NV		184
	3,955	Sonoco Products		207

				759

	Real Estate — 3.0%
	1,837	Crown Castle International‡		198
	2,388	Digital Realty Trust‡		267
	4,277	Duke Realty‡		124
	1,150	Equity LifeStyle Properties‡		106
	498	Essex Property Trust‡		119
	1,527	Public Storage ‡		346

				1,160


Bishop Street Funds


Dividend Value Fund			(unaudited)

Schedule of Investments

(concluded)


Shares			Value (000)
	Telecommunication Services — 1.4%
	16,663	AT&T	$	535

	Utilities — 4.7%
	3,939	Ameren		240
	4,382	American Electric Power		304
	5,594	CMS Energy		264
	2,446	Dominion Resources		167
	3,624	Eversource Energy		212
	1,803	NextEra Energy		301
	4,914	WEC Energy Group		318

				1,806

	TOTAL COMMON STOCK (Cost $24,732)			37,371


	CASH EQUIVALENT — 2.3%
	891,225	BlackRock FedFund, Institutional Shares, 1.770% (A) (Cost $891)		891

	TOTAL INVESTMENTS (Cost $25,623) —100.0%		$	38,262

Percentages are based on Net Assets of $38,246 (000).

‡	Real Estate Investment Trust

(A)

The rate reported is the 7-day effective yield as of June 30, 2018.

Cl — Class

PLC — Public Limited Company

Cost figures are shown in thousands.

As of June 30, 2018, all of the Funds’ investments in securities were considered Level 1, in accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP.

For the period ended June 30, 2018, there have been no transfers between Level 1, Level 2 and Level 3 assets and liabilities. Transfers, if any, between levels are considered to have occurred at the end of the period.

There were no Level 3 investments during the period ended June 30, 2018.

For more information on valuation inputs, see Note 2 in the Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


High Grade Income Fund			(unaudited)

Top Ten Holdings^†


		Coupon Rate		Maturity Date		Percentage of Investments

1.	FHLMC, Ser 2011-3970, Cl KC		3.500%		03/15/33		3.5%

2.	U.S. Treasury Bond		4.500%		08/15/39		3.4%

3.	U.S. Treasury Bond		4.375%		05/15/41		2.5%

4.	U.S. Treasury Bond		6.000%		02/15/26		2.3%

5.	U.S. Treasury Bond		5.375%		02/15/31		2.1%

6.	Amazon.com		4.800%		12/05/34		1.7%

7.	GNMA, Ser 2012-91, Cl QL		2.000%		09/20/41		1.6%

8.	FHLMC		1.625%		08/25/19		1.5%

9.	FHLMC		1.600%		09/30/21		1.5%

10.	California State, GO		6.509%		04/01/39		1.5%

LOGO

†

Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments


Face Amount (000)			Value (000)

	CORPORATE OBLIGATIONS — 52.0%
	Consumer Discretionary — 8.9%
		Amazon.com
$	650	4.800%, 12/05/34	$	712
		CBS
	350	3.500%, 01/15/25		335
		Comcast
	250	3.600%, 03/01/24		246
	300	3.150%, 03/01/26		282
		Discovery Communications LLC
	300	3.250%, 04/01/23		291
		George Washington University
	225	4.363%, 09/15/43		232


Bishop Street Funds


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Consumer Discretionary — (continued)
		Home Depot
$	450	5.875%, 12/16/36	$	546
		McDonald’s MTN
	400	4.600%, 05/26/45		403
		Starbucks
	450	2.450%, 06/15/26		403
		Walt Disney MTN
	425	1.850%, 07/30/26		371

				3,821

	Consumer Staples — 2.4%
		Campbell Soup
	250	4.250%, 04/15/21		254
		Coca-Cola
	250	2.875%, 10/27/25		239
	200	2.450%, 11/01/20		199
		CVS Health
	250	2.875%, 06/01/26		228
		Hershey
	125	2.625%, 05/01/23		121

				1,041

	Energy — 5.1%
		Apache Finance Canada
	475	7.750%, 12/15/29		578
		BP Capital Markets PLC
	300	3.814%, 02/10/24		303
		Kinder Morgan Energy Partners LP
	300	4.300%, 05/01/24		300
		Occidental Petroleum
	390	2.700%, 02/15/23		379
		Schlumberger Investment SA
	400	3.650%, 12/01/23		403
		Shell International Finance BV
	250	1.875%, 05/10/21		243

				2,206

	Financials — 14.8%
		Aflac
	450	3.625%, 11/15/24		446
		Bank of America MTN
	450	4.000%, 04/01/24		454


June 30, 2018				www.bishopstreetfunds.com


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Financials — (continued)
		Bank of New York Mellon MTN
$	500	4.150%, 02/01/21	$	513
		Capital One Financial
	350	3.750%, 03/09/27		331
		Citigroup
	200	3.875%, 10/25/23		200
		Discover Bank
	400	4.200%, 08/08/23		403
		Goldman Sachs Group MTN
	250	7.500%, 02/15/19		257
	500	3.630%, VAR ICE LIBOR USD 3 Month+1.300% 11/23/24		502
		JPMorgan Chase
	500	2.250%, 01/23/20		494
		MetLife
	250	6.817%, 08/15/18		251
	250	3.048%, 12/15/22		245
		Morgan Stanley MTN
	400	3.875%, 01/27/26		394
		MUFG Americas Holdings
	250	2.250%, 02/10/20		246
		Prudential Financial MTN
	305	7.375%, 06/15/19		318
		Royal Bank of Canada MTN
	280	2.150%, 03/06/20		276
	300	1.500%, 07/29/19		296
		US Bancorp MTN
	450	3.000%, 03/15/22		445
		Wells Fargo
	300	2.150%, 01/15/19		299

				6,370

	Health Care — 4.6%
		AbbVie
	500	2.900%, 11/06/22		485
		Amgen
	350	5.700%, 02/01/19		356
		Celgene
	250	3.875%, 08/15/25		243
		Gilead Sciences
	450	4.500%, 04/01/21		465


Bishop Street Funds


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Health Care — (continued)
		Merck Sharp & Dohme
$	400	5.000%, 06/30/19	$	409

				1,958

	Industrials — 4.2%
		FedEx
	250	2.625%, 08/01/22		243
		General Electric MTN
	400	3.341%, VAR ICE LIBOR USD 3 Month+1.000% 03/15/23		404
		Norfolk Southern
	300	2.900%, 06/15/26		280
		Raytheon
	460	2.500%, 12/15/22		446
		United Technologies
	450	3.100%, 06/01/22		445

				1,818

	Information Technology — 7.2%
		Apple
	450	4.650%, 02/23/46		485
		Applied Materials
	400	3.900%, 10/01/25		408
		Intel
	500	3.300%, 10/01/21		505
		International Business Machines
	350	8.375%, 11/01/19		376
		Juniper Networks
	350	4.500%, 03/15/24		356
		KLA-Tencor
	400	4.650%, 11/01/24		413
		Microsoft
	250	3.625%, 12/15/23		255
		NetApp
	300	3.375%, 06/15/21		297

				3,095

	Materials — 0.6%
		Sherwin-Williams
	280	3.125%, 06/01/24		267

	Telecommunication Services — 0.8%
		Ameritech Capital Funding
	300	6.875%, 10/15/27		342


June 30, 2018				www.bishopstreetfunds.com


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Transportation — 0.8%
		Burlington Northern Santa Fe LLC
$	345	4.450%, 03/15/43	$	353

	Utilities — 2.6%
		Berkshire Hathaway Energy
	400	6.125%, 04/01/36		493
		Duke Energy Florida LLC
	325	3.100%, 08/15/21		325
		Xcel Energy
	300	3.300%, 06/01/25		291

				1,109

	TOTAL CORPORATE OBLIGATIONS (Cost $22,723)			22,380


	U.S. TREASURY OBLIGATIONS — 14.0%
		U.S. Treasury Bond
	800	6.000%, 02/15/26		974
	720	5.375%, 02/15/31		910
	350	4.750%, 02/15/37		443
	1,150	4.500%, 08/15/39		1,434
	875	4.375%, 05/15/41		1,081
	180	2.375%, 08/15/24		176
	700	2.250%, 08/15/46		603
	400	2.000%, 11/15/26		375

	TOTAL U.S. TREASURY OBLIGATIONS (Cost $6,049)			5,996


	U.S. GOVERNMENT AGENCY OBLIGATIONS — 13.3%
		FFCB
	300	2.670%, 04/18/24		294
	600	2.000%, 06/01/21		586
	500	1.750%, 08/01/22		476
	500	1.240%, 11/29/19		490
		FHLB
	475	4.750%, 03/10/23		515
	500	3.125%, 06/13/25		502
	500	3.000%, 03/10/28		490
	550	2.500%, 03/11/22		544
		FHLMC MTN
	550	2.050%, 08/26/22		530
	650	1.600%, 09/30/21		624
	675	1.625%, 08/25/19		652

	TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $5,827)			5,703


Bishop Street Funds


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS — 9.1%
		FHLMC, Ser 2011-3970, Cl KC
$	1,500	3.500%, 03/15/33	$	1,490
		FHLMC, Ser 2015-4425, Cl BY
	597	2.000%, 01/15/45		470
		FHLMC, Ser G12710
	52	5.500%, 07/01/22		54
		FNMA, Ser 2003-58, Cl D
	39	3.500%, 07/25/33		39
		FNMA, Ser 2012-84, Cl JB
	242	3.000%, 05/25/42		220
		FNMA, Ser 2013-92, Cl MT
	46	4.000%, 07/25/41		47
		FNMA, Ser 889958
	25	5.000%, 10/01/23		27
		GNMA, Ser 2011-112, Cl JP
	99	2.000%, 02/20/40		99
		GNMA, Ser 2012-101, Cl KL
	687	2.000%, 09/20/41		597
		GNMA, Ser 2012-91, Cl QL
	765	2.000%, 09/20/41		681
		GNMA, Ser 2013-4, Cl CN
	220	2.000%, 10/16/42		205

	TOTAL U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (Cost $4,107)			3,929


	MUNICIPAL BONDS — 9.1%
		California State, GO
	560	6.509%, 04/01/39		620
		City of Seattle Washington, Ser B, GO
	425	3.500%, 12/01/31		417
		Evansville Redevelopment Authority, GO
	500	7.210%, 02/01/39		542
		Hawaii State, Department of Budget & Finance, Pacific Health Project, Ser A, RB
	500	5.500%, 07/01/43		554
		Houston, Independent School District, GO
	250	6.125%, 02/15/28		255
		Hudson County, Improvement Authority, RB, AGM Insured
	525	7.400%, 12/01/25		586
		Oklahoma County, Finance Authority, RB
	375	6.600%, 09/01/22		423


June 30, 2018				www.bishopstreetfunds.com


High Grade Income Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)/Shares			Value (000)
	MUNICIPAL BONDS — (continued)
		Stockton, Public Financing Authority, Sub-Ser, RB, BAM Insured
$	500	7.942%, 10/01/38	$	531

	TOTAL MUNICIPAL BONDS (Cost $3,917)			3,928


	NON-AGENCY MORTGAGE-BACKED OBLIGATION — 0.8%
		GSR Mortgage Loan Trust, Ser 2004-4, Cl 3A2
	367	3.510%, VAR US Treas Yield Curve Rate T Note Const Mat 1 Yr+1.750% 04/25/32 (Cost $339)		352


	CASH EQUIVALENT — 0.9%
	396,488	BlackRock FedFund, Institutional Shares, 1.770% (A) (Cost $396)		396

	TOTAL INVESTMENTS (Cost $43,358) — 99.2%		$	42,684

Percentages are based on Net Assets of $43,007 (000).

(A)

The rate reported is the 7-day effective yield as of June 30, 2018.

AGM — Assured Guaranty Municipal

BAM — Build America Mutual

Cl — Class

FFCB — Federal Farm Credit Bank

FHLB — Federal Home Loan Bank

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

GO — General Obligation

ICE — Intercontinental Exchange

LIBOR — London Interbank Offered Rate

LLC — Limited Liability Corporation

MTN — Medium Term Note

PLC — Public Limited Company

RB — Revenue Bond

Ser — Series

USD — United States Dollar

VAR — Variable

Cost figures are shown in thousands.


Bishop Street Funds


High Grade Income Fund			(unaudited)

Schedule of Investments

(concluded)

The following is a summary of the inputs used as of June 30, 2018, in valuing the Fund’s investments carried at value (000):


High Grade Income Fund
Investments in Securities	Level 1		Level 2		Level 3		Total
Corporate Obligations	$	—	$	22,380	$	—	$	22,380
U.S. Treasury Obligations		—		5,996		—		5,996
U.S. Government Agency Obligations		—		5,703		—		5,703
U.S. Government Mortgage-Backed Obligations		—		3,929		—		3,929
Municipal Bonds		—		3,928		—		3,928
Non-Agency Mortgage-Backed Obligation		—		352		—		352
Cash Equivalent		396		—		—		396

Total Investments in Securities	$	396	$	42,288	$	—	$	42,684

There were no Level 3 investments during the period ended June 30, 2018.

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 in the Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


Hawaii Municipal Bond Fund			(unaudited)

Top Ten Holdings^†


		Coupon Rate		Maturity Date		Percentage of Investments

1.	Hawaii State, Department of Budget & Finance, Ser 2009		6.500%		07/01/39		3.3%

2.	Hawaii State, Department of Transportation, Airports Division Lease Revenue, AMT		5.000%		08/01/27		3.0%

3.	Hawaii State, Airports System Authority, Ser A, AMT		5.000%		07/01/45		2.2%

4.	Hawaii State, Department of Budget & Finance, Ser A		5.000%		07/01/35		2.1%

5.	University of Hawaii, Ser F		5.000%		10/01/35		2.1%

6.	Hawaii State, Department of Transportation, Airports Division Lease Revenue, AMT		5.000%		08/01/21		2.0%

7.	Hawaii State, Airports System Authority, Ser A		5.250%		07/01/27		2.0%

8.	Honolulu Hawaii City & County, Ser A		5.000%		09/01/41		2.0%

9.	Hawaii State, Ser FK		5.000%		05/01/29		1.8%

10.	Hawaii State, Airports System Revenue, Ser A, AMT		5.000%		07/01/41		1.7%

LOGO

†

Percentages based on total investments. Top ten holdings do not include short-term investments.

Schedule of Investments


Face Amount (000)			Value (000)
	MUNICIPAL BONDS — 99.4%
	Alabama — 0.1%
		Huntsville, Electric System Revenue, RB
$	75	5.250%, 12/01/21, Pre-Refunded @ 100 (A)	$	83


Bishop Street Funds


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Alaska — 0.6%
		Alaska State, Housing Finance, Sate Capital Project, Ser A, RB
$	175	5.000%, 12/01/33	$	194
		Alaska State, Ser A, GO
	525	5.000%, 08/01/34		592

				786

	California — 5.3%
		California State, GO
	1,000	5.000%, 09/01/23		1,150
	1,650	5.000%, 09/01/31		1,945
	5	4.500%, 08/01/30		5
		Orange County, Water District, Ser A, RB
	1,000	5.000%, 08/15/31		1,136
		Sacramento City, Unified School District, GO
	500	5.000%, 07/01/23		572
		Sonoma County, Junior College District, GO
	1,000	5.000%, 08/01/27		1,145
		University of California, Ser AF, RB
	215	5.000%, 05/15/23, Pre-Refunded @ 100 (A)		247
	785	5.000%, 05/15/36		880

				7,080

	Florida — 0.1%
		Miami-Dade County, School Board, Ser D, COP
	150	5.000%, 02/01/27		172

	Hawaii — 84.0%
		Hawaii County, Ser A, GO
	500	5.000%, 09/01/20		535
	250	5.000%, 09/01/22 (B)		280
	300	5.000%, 09/01/26		353
	1,000	5.000%, 09/01/31		1,154
	500	4.000%, 03/01/20, Pre-Refunded @ 100 (A)		519
	1,500	4.000%, 09/01/35		1,579
		Hawaii County, Ser B, GO
	200	5.000%, 09/01/22		224
		Hawaii County, Ser D, GO
	450	5.000%, 09/01/25		526
		Hawaii State, Airports System Authority, RB, AGM Insured
	1,000	5.250%, 07/01/27		1,068
		Hawaii State, Airports System Authority, Ser A, RB
	250	5.250%, 07/01/23		267
	2,500	5.250%, 07/01/27		2,670


June 30, 2018				www.bishopstreetfunds.com


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Hawaii — (continued)
$	1,000	5.250%, 07/01/28	$	1,068
	900	5.250%, 07/01/30		960
	420	5.000%, 07/01/39		444
	2,635	5.000%, 07/01/45		2,918
		Hawaii State, Airports System Authority, RB, AMT
	2,000	5.000%, 07/01/24		2,163
	1,000	4.125%, 07/01/24		1,036
		Hawaii State, Airports System Revenue, COP, AMT Insured
	500	5.250%, 08/01/25		559
		Hawaii State, Airports System Revenue, Ser A, RB, AMT
	2,000	5.000%, 07/01/41		2,220
		Hawaii State, Department of Budget & Finance, RB, AMT
	500	3.100%, 05/01/26		494
		Hawaii State, Department of Budget & Finance, Mid Pacific Institute, RB, AGC Insured
	835	5.000%, 01/01/26		836
		Hawaii State, Department of Budget & Finance, Pacific Health Project, Ser A, RB
	425	6.000%, 07/01/33		488
	710	4.625%, 07/01/20, Pre-Refunded @ 100 (A)		751
		Hawaii State, Department of Budget & Finance, RB
	325	5.125%, 07/01/31		359
	350	3.250%, 01/01/25		352
		Hawaii State, Department of Budget & Finance, Ser 2009, RB
	4,260	6.500%, 07/01/39		4,443
		Hawaii State, Department of Budget & Finance, Ser A, RB
	100	5.000%, 07/01/22		111
	575	5.000%, 07/01/26		639
	1,800	5.000%, 07/01/27		2,063
	755	5.000%, 07/01/30		857
	2,500	5.000%, 07/01/35		2,805
		Hawaii State, Department of Budget & Finance, Ser B, RB
	775	5.000%, 07/01/28		856
		Hawaii State, Department of Hawaiian Home Lands, Kapolie Office Facilities, Ser A, COP, AGM Insured
	500	5.000%, 11/01/26		588
		Hawaii State, Department of Hawaiian Home Lands, RB
	500	5.000%, 04/01/27		589
		Hawaii State, Department of Transportation, Airports Division Lease Revenue, COP, AMT
	2,525	5.000%, 08/01/21		2,731
	3,675	5.000%, 08/01/27		4,030
	1,000	5.000%, 08/01/28		1,093


Bishop Street Funds


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii State, Harbor System Revenue, Ser A, RB
$	220	5.000%, 07/01/25	$	233
	1,125	4.250%, 07/01/21		1,175
		Hawaii State, Highway Authority, Ser A, RB
	700	5.000%, 01/01/23		788
	1,450	5.000%, 01/01/30		1,651
	1,000	5.000%, 01/01/31		1,137
	1,000	5.000%, 01/01/33		1,131
		Hawaii State, Housing Finance & Development, Kuhio Park Terrace Multi-Family Housing, Ser A, RB, FHLMC Insured
	200	3.900%, 04/01/22		209
	115	3.750%, 04/01/21		120
	180	3.500%, 04/01/20		185
		Hawaii State, Housing Finance & Development, Rental Housing System, Ser B, RB, AGM Insured
	2,000	6.500%, 07/01/33		2,060
		Hawaii State, Housing Finance & Development, Single-Family Housing, Ser B, RB, GNMA/FNMA/FHLMC Insured
	385	3.450%, 01/01/22		394
		Hawaii State, Housing Finance & Development, Wilikina Apartments Project, Ser A, RB
	1,000	5.000%, 05/01/34		1,011
		Hawaii State, Ser DR, GO
	600	5.000%, 06/01/19		619
		Hawaii State, Ser DT, GO
	270	5.000%, 11/01/19		282
		Hawaii State, Ser DZ, GO
	1,795	5.000%, 12/01/21, Pre-Refunded @ 100 (A)		1,980
		Hawaii State, Ser EA, GO
	935	5.000%, 12/01/21		1,032
	1,700	5.000%, 12/01/22		1,870
		Hawaii State, Ser EE-2017, GO
	400	5.000%, 11/01/22, Pre-Refunded @ 100 (A)		450
		Hawaii State, Ser EF, GO
	300	5.000%, 11/01/23		337
	500	5.000%, 11/01/24		560
		Hawaii State, Ser EH, GO, EMT
	200	5.000%, 08/01/23 (B)		228
	705	5.000%, 08/01/23, Pre-Refunded @ 100 (A)		805
	125	5.000%, 08/01/24		142
	300	5.000%, 08/01/29		338
	295	5.000%, 08/01/30		332
	95	5.000%, 08/01/32		106


June 30, 2018				www.bishopstreetfunds.com


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Hawaii — (continued)
		Hawaii State, Ser EH-2017, GO
$	85	5.000%, 08/01/23 (B)	$	97
		Hawaii State, Ser EO, GO
	1,000	5.000%, 08/01/29		1,141
	1,000	5.000%, 08/01/30		1,138
	1,000	5.000%, 08/01/33		1,132
		Hawaii State, Ser EP, GO
	1,000	5.000%, 08/01/22		1,119
	500	5.000%, 08/01/25		576
	325	5.000%, 08/01/26		373
		Hawaii State, Ser EY, GO
	1,000	5.000%, 10/01/27		1,167
		Hawaii State, Ser FE, GO
	285	5.000%, 10/01/27		337
		Hawaii State, Ser FK, GO
	2,000	5.000%, 05/01/29		2,363
		Hawaii State, Ser FN, GO
	1,000	5.000%, 10/01/23		1,144
	200	5.000%, 10/01/24		232
	85	5.000%, 10/01/30		101
		Hawaii State, Ser FT, GO
	1,000	5.000%, 01/01/31		1,189
	250	3.375%, 01/01/36		249
		Honolulu Hawaii City & County, Board of Water Supply, Ser A, RB
	1,050	5.000%, 07/01/19		1,086
	600	5.000%, 07/01/23		669
	400	5.000%, 07/01/24		462
	600	5.000%, 07/01/27		685
		Honolulu Hawaii City & County, Ser A, GO
	275	5.250%, 08/01/21, Pre-Refunded @ 100 (A)		303
	700	5.000%, 10/01/19		730
	400	5.000%, 11/01/21		440
	500	5.000%, 11/01/22 (B)		562
	1,000	5.000%, 10/01/23		1,144
	400	5.000%, 09/01/27		481
	1,000	5.000%, 10/01/27		1,168
	500	5.000%, 11/01/22, Pre-Refunded @ 100 (A)		563
	800	5.000%, 10/01/31		922
	225	5.000%, 10/01/39		255
	2,300	5.000%, 09/01/41		2,656
	700	4.000%, 11/01/19		723
	325	4.000%, 08/01/21, Pre-Refunded @ 100 (A)		346
	425	4.000%, 09/01/38		448


Bishop Street Funds


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Hawaii — (continued)
		Honolulu Hawaii City & County, Ser B, GO
$	375	5.000%, 08/01/21	$	410
	350	5.000%, 08/01/22		382
	200	5.000%, 11/01/24		224
	300	5.000%, 08/01/26		326
	1,000	5.000%, 10/01/26		1,171
		Honolulu Hawaii City & County, Ser C, GO
	750	5.000%, 10/01/23		858
	1,430	5.000%, 10/01/28		1,662
		Honolulu Hawaii City & County, Ser D, GO
	400	5.250%, 09/01/19, Pre-Refunded @ 100 (A)		417
		Honolulu Hawaii City & County, Ser E, GO
	325	5.000%, 09/01/28		388
		Honolulu Hawaii City & County, Wastewater System Authority, Ser A, RB
	750	5.000%, 07/01/21, Pre-Refunded @ 100 (A)		819
	100	5.000%, 07/01/22, Pre-Refunded @ 100 (A)		112
	500	5.000%, 07/01/36		573
	1,200	4.000%, 07/01/38		1,266
		Honolulu Hawaii City & County, Wastewater System Authority, Ser Junior A, RB
	450	4.000%, 07/01/25		466
		Honolulu Hawaii City & County, Wastewater System Authority, Ser B, RB
	1,575	5.000%, 07/01/23		1,790
		Kauai County, Ser A, GO
	250	5.000%, 08/01/21		273
	150	5.000%, 08/01/23		167
	250	4.000%, 08/01/24		268
	250	3.250%, 08/01/23		258
		Kauai County, Ser A, GO, NATL FGIC Insured
	415	5.000%, 08/01/21		416
		Maui County, GO
	250	5.000%, 06/01/20		266
	150	5.000%, 06/01/21		163
		Maui County, Ser B, GO
	500	4.000%, 06/01/21		521
		University of Hawaii, Ser A, RB
	100	6.000%, 10/01/19, Pre-Refunded @ 100 (A)		105
		University of Hawaii, Ser A-2, RB
	1,030	4.000%, 10/01/18		1,037


June 30, 2018				www.bishopstreetfunds.com


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Hawaii — (continued)
		University of Hawaii, Ser B, RB
$	1,500	5.000%, 10/01/34	$	1,710
	1,000	4.000%, 10/01/23		1,090
		University of Hawaii, Ser E, RB
	1,485	5.000%, 10/01/25		1,741
	1,350	5.000%, 10/01/32		1,565
		University of Hawaii, Ser F, RB
	2,425	5.000%, 10/01/35		2,801

				113,049

	Indiana — 0.5%
		Fort Wayne Community School Building, RB
	500	5.000%, 07/15/25		558
		Indiana State, Housing & Community Development Authority, Ser C, RB, GNMA/FNMA/FHLMC Insured
	70	4.100%, 06/01/27		72

				630

	Maine — 0.4%
		Maine State, Health & Higher Educational Facilities Authority, Ser A, RB
	500	5.250%, 07/01/31		531

	Mississippi — 0.3%
		Southaven, Water & Sewer System Revenue, RB
	370	5.000%, 02/01/26		427

	New York — 1.5%
		New York & New Jersey, Port Authority, RB
	350	5.000%, 11/15/47		403
		New York City, Trust for Cultural Resources, Ser S, RB
	1,000	5.000%, 07/01/41		1,120
		New York, Ser H, GO
	500	5.000%, 08/01/20		534

				2,057

	Ohio — 1.1%
		Akron, Income Tax Revenue, RB
	1,000	5.000%, 06/01/22, Pre-Refunded @ 100 (A)		1,115
		Ohio State, Ser 2011-B, GO
	300	5.000%, 08/01/22		335

				1,450


Bishop Street Funds


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Face Amount (000)			Value (000)
	Oklahoma — 0.5%
		Oklahoma City, Water Utilities Trust, RB
$	125	5.000%, 07/01/40	$	135
		Tulsa County, Industrial Authority, RB
	500	5.000%, 09/01/26		576

				711

	Oregon — 0.4%
		Clackamas County, School District No. 12, Ser B, GO, SCH BD GTY Insured
	500	5.000%, 06/15/37		580

	Tennessee — 0.4%
		Memphis, Ser A, GO
	500	5.000%, 04/01/26		580

	Texas — 3.1%
		Arlington, Higher Education Finance, Ser 2014-A, RB, PSF-GTD Insured
	750	5.000%, 08/15/27		844
		City of Denton, GO
	1,165	3.375%, 02/15/34		1,148
		Clifton, Higher Education Finance, Ser 2014, RB, PSF-GTD Insured
	500	5.000%, 08/15/26		571
		Mesquite, Refinance & Improvements, GO
	1,000	5.000%, 02/15/27		1,151
		Midland County, Fresh Water Supply District No. 1, Ser A, RB
	1,000	4.789%, 09/15/37(C)		441

				4,155

	Utah — 0.2%
		Central Utah, Water Conservancy District, Ser B, GO
	200	5.250%, 04/01/23		218

	Washington — 0.9%
		Port of Seattle Washington, Ser A, RB
	750	5.000%, 08/01/26		828
		Washington State, Housing Finance Commission, RB, FANNIE MAE Insured
	300	4.750%, 07/15/29		321

				1,149

	TOTAL MUNICIPAL BONDS (Cost $134,337)			133,658


June 30, 2018				www.bishopstreetfunds.com


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(continued)


Shares			Value (000)
	CASH EQUIVALENT — 0.1%
	166,551	BlackRock FedFund, Institutional Shares, 1.770% (D) (Cost $167)	$	167

	TOTAL INVESTMENTS (Cost $134,504) — 99.5%		$	133,825

Percentages are based on Net Assets of $134,516 (000).

(A)

Pre-Refunded Security — The maturity date shown is the pre-refunded date.

(B)

Security is escrowed to maturity.

(C)

Zero coupon security. The rate reported on the Schedule of Investments is the effective yield at time of purchase.

(D)

The rate reported is the 7-day effective yield as of June 30, 2018.

AGC — American Guarantee Corporation

AGM — Assured Guaranty Municipal

AMT — Alternative Minimum Tax

COP — Certificate of Participation

FGIC — Financial Guarantee Insurance Corporation

FHLMC — Federal Home Loan Mortgage Corporation

FNMA — Federal National Mortgage Association

GNMA — Government National Mortgage Association

GO — General Obligation

NATL — National Public Finance Guarantee Corporation

PSF-GTD — Guaranteed by Permanent School Fund

RB — Revenue Bond

SCH BD GTY — School Board Guaranteed

Ser — Series

Cost figures are shown in thousands.

The following is a summary of the inputs used as of June 30, 2018, in valuing the Fund’s investments carried at value (000):


Hawaii Municipal Bond Fund
Investments in Securities	Level 1		Level 2		Level 3		Total
Municipal Bonds	$	—	$	133,658	$	—	$	133,658
Cash Equivalent		167		—		—		167

Total Investments in Securities	$	167	$	133,658	$	—	$	133,825


Bishop Street Funds


Hawaii Municipal Bond Fund			(unaudited)

Schedule of Investments

(concluded)

There were no Level 3 investments during the period ended June 30, 2018.

Amounts designated as “—” are $0.

For more information on valuation inputs, see Note 2 in the Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

Statements of Assets and Liabilities (000)

June 30, 2018


	Dividend Value Fund			High Grade Income Fund			Hawaii Municipal Bond Fund
Assets:
Investments, at Cost	$	25,623		$	43,358		$	134,504

Investments, at Value	$	38,262		$	42,684		$	133,825
Cash		—			10			—
Dividends and Interest Receivable		34			370			2,268
Reclaim Receivable		1			1			—
Receivable for Fund Shares Sold		—			5			—
Prepaid Expenses		1			6			6

Total Assets		38,298			43,076			136,099

Liabilities:
Payable for Investment Securities Purchased		—			—			1,141
Advisory Fees Payable		17			6			11
Payable for Fund Shares Redeemed		6			—			6
Administrative Fees Payable		4			5			9
Shareholder Servicing Fees Payable		3			4			11
Chief Compliance Officer Fees Payable		1			1			3
Income Distribution Payable		—			27			215
Other Accrued Expenses Payable		21			26			72
Line Of Credit Payable		—			—			115

Total Liabilities		52			69			1,583

Net Assets	$	38,246		$	43,007		$	134,516

Paid-in Capital	$	22,899		$	43,781		$	135,244
Undistributed Net Investment Income		1			7			72
Accumulated Net Realized Gain (Loss) on Investments		2,707			(107	)		(121	)
Net Unrealized Appreciation (Depreciation) on Investments		12,639			(674	)		(679	)

Net Assets	$	38,246		$	43,007		$	134,516

Class I Shares:
Net Assets	$	38,246		$	43,007		$	116,000
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)		2,443			4,625			11,160
Net Asset Value, Offering and Redemption Price Per Share — Class I (Net Assets / Shares Outstanding)	$	15.65	*	$	9.30		$	10.39

Class A Shares:
Net Assets		N/A			N/A		$	18,516
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value)		N/A			N/A			1,781
Net Asset Value, Offering and Redemption Price Per Share — Class A (Net Assets / Shares Outstanding)		N/A			N/A		$	10.40

Maximum Offering Price Per Shares — Class A ($10.40/ 97.00%)		N/A			N/A		$	10.72

*	Difference in net asset value recalculation and net asset value stated is caused by rounding differences.

N/A — Not Applicable. Share class currently not offered.

Amounts designated as “—” are either $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


Bishop Street Funds


Bishop Street Funds			(unaudited)

Statements of Operations (000)

For the six-month period ended June 30, 2018


	Dividend Value Fund			High Grade Income Fund			Hawaii Municipal Bond Fund
Investment Income:
Dividend Income	$	513		$	—		$	—
Interest Income		—			736			2,015

Total Investment Income		513			736			2,015

Expenses:
Investment Adviser Fees		149			128			236
Shareholder Servicing Fees		50			58			168
Administrative Fees		40			46			135
Chief Compliance Officer Fees		1			2			4
Distribution Fees, Class A		—			—			24
Transfer Agent Fees		22			24			54
Audit Fees		7			8			24
Printing Fees		6			7			19
Legal Fees		6			6			18
Trustees’ Fees		4			5			14
Custody Fees		2			2			3
Registration Fees		1			11			6
Pricing Fees		1			6			13
Miscellaneous Expenses		5			6			17

Total Expenses		294			309			735

Less Waivers:
Investment Adviser Fees		(40	)		(82	)		(159	)
Shareholder Servicing Fees		(30	)		(35	)		(101	)
Administrative Fees		(14	)		(16	)		(80	)

Total Waivers		(84	)		(133	)		(340	)

Total Net Expenses		210			176			395

Net Investment Income		303			560			1,620

Net Realized Gain (Loss) on Investments		1,921			(137	)		(131	)
Net Change in Unrealized Depreciation on Investments		(2,846	)		(1,653	)		(2,353	)

Net Realized and Unrealized Loss on Investments		(925	)		(1,790	)		(2,484	)

Decrease in Net Assets Resulting from Operations	$	(622	)	$	(1,230	)	$	(864	)

Amounts designated as “—” are either $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds

Statements of Changes in Net Assets (000)

For the six-month period ended June 30, 2018 (unaudited) and the year ended December 31, 2017


	Dividend Value Fund						High Grade Income Fund
	2018			2017			2018			2017
Investment Activities from Operations:
Net Investment Income	$	303		$	645		$	560		$	1,314
Net Realized Gain (Loss) on Investments		1,921			2,805			(137	)		566
Net Change in Unrealized Appreciation (Depreciation) on Investments		(2,846	)		4,259			(1,653	)		161

Increase (Decrease) in Net Assets Resulting from Operations		(622	)		7,709			(1,230	)		2,041

Dividends and Distributions to Shareholders:
Net Investment Income:
Class I Shares		(307	)		(646	)		(554	)		(1,292	)
Capital Gains:
Class I Shares		—			(3,422	)		—			(681	)

Total Dividends and Distributions to Shareholders		(307	)		(4,068	)		(554	)		(1,973	)

Capital Share Transactions:
Proceeds from Shares Issued		1,216			740			1,962			2,889
Reinvestments of Cash Distributions		180			2,425			370			1,278
Cost of Shares Redeemed		(4,417	)		(4,252	)		(8,234	)		(14,746	)

Net Decrease in Net Assets from Capital Share Transactions		(3,021	)		(1,087	)		(5,902	)		(10,579	)

Total Increase (Decrease) in Net Assets		(3,950	)		2,554			(7,686	)		(10,511	)

Net Assets:
Beginning of Period		42,196			39,642			50,693			61,204

End of Period	$	38,246		$	42,196		$	43,007		$	50,693

Undistributed Net Investment Income	$	1		$	5		$	7		$	1

Share Transactions:
Shares Issued		77			48			209			297
Shares Issued in Lieu of Cash Distributions		12			153			40			131
Shares Redeemed		(276	)		(268	)		(881	)		(1,512	)

Net Decrease in Shares Outstanding from Share Transactions		(187	)		(67	)		(632	)		(1,084	)

Amounts designated as “—” are either $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


Bishop Street Funds


Bishop Street Funds

Statements of Changes in Net Assets (000)

For the six-month period ended June 30, 2018 (unaudited) and the year ended December 31, 2017


	Hawaii Municipal Bond Fund
	2018			2017
Investment Activities from Operations:
Net Investment Income	$	1,620		$	3,297
Net Realized Gain (Loss) on Investments		(131	)		133
Net Change in Unrealized Appreciation (Depreciation) on Investments		(2,353	)		1,756

Increase (Decrease) in Net Assets Resulting from Operations		(864	)		5,186

Dividends and Distributions to Shareholders:
Net Investment Income:
Class I Shares		(1,410	)		(2,830	)
Class A Shares		(206	)		(448	)
Capital Gains:
Class I Shares		—			(69	)
Class A Shares		—			(12	)

Total Dividends and Distributions to Shareholders		(1,616	)		(3,359	)

Capital Share Transactions:
Class I Shares:
Proceeds from Shares Issued		9,175			8,926
Reinvestments of Cash Distributions		203			427
Cost of Shares Redeemed		(8,542	)		(14,503	)

Total Class I Capital Share Transactions		836			(5,150	)

Class A Shares:
Proceeds from Shares Issued		110			775
Reinvestments of Cash Distributions		143			326
Cost of Shares Redeemed		(1,713	)		(3,426	)

Total Class A Capital Share Transactions		(1,460	)		(2,325	)

Net Decrease in Net Assets from Capital Share Transactions		(624	)		(7,475	)

Total Decrease in Net Assets		(3,104	)		(5,648	)

Net Assets:
Beginning of Period		137,620			143,268

End of Period	$	134,516		$	137,620

Undistributed Net Investment Income	$	72		$	68

Share Transactions:
Class I Shares:
Shares Issued		882			841
Shares Issued in Lieu of Cash Distributions		19			40
Shares Redeemed		(821	)		(1,368	)

Total Class I Transactions		80			(487	)

Class A Shares:
Shares Issued		11			73
Shares Issued in Lieu of Cash Distributions		14			31
Shares Redeemed		(165	)		(324	)

Total Class A Transactions		(140	)		(220	)

Net Decrease in Shares Outstanding from Share Transactions		(60	)		(707	)

Amounts designated as “—” are either $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds

Financial Highlights

For a share outstanding throughout the six-month period ended June 30, 2018 (unaudited) and the years ended December 31,


				Investment Activities							Total Investment Activities from Operations				Dividends and Distributions from
	Net Asset Value, Beginning of Period			Net Investment Income (Loss)⁽¹⁾			Net Realized and Unrealized Gain (Loss) on Investments				Total Investment Activities from Operations				Net Investment Income				Capital Gains				Total Dividends and Distributions

DIVIDEND VALUE FUND
Class I Shares:
2018		$	16.05		$	0.12		$	(0.40	)		$	(0.28	)		$	(0.12	)		$	—			$	(0.12	)
2017			14.70			0.24			2.69				2.93				(0.24	)			(1.34	)			(1.58	)
2016			13.45			0.24			1.52				1.76				(0.25	)			(0.26	)			(0.51	)
2015			13.62			0.22			(0.17	)			0.05				(0.22	)			—				(0.22	)
2014			12.43			0.29			1.20				1.49				(0.30	)			—				(0.30	)
2013			9.83			0.21			2.61				2.82				(0.22	)			—				(0.22	)
HIGH GRADE INCOME FUND
Class I Shares:
2018		$	9.64		$	0.11		$	(0.34	)		$	(0.23	)		$	(0.11	)		$	—			$	(0.11	)
2017			9.65			0.22			0.12				0.34				(0.22	)			(0.13	)			(0.35	)
2016			9.80			0.22			(0.07	)			0.15				(0.22	)			(0.08	)			(0.30	)
2015			10.05			0.23			(0.19	)			0.04				(0.23	)			(0.06	)			(0.29	)
2014			9.78			0.23			0.33				0.56				(0.23	)			(0.06	)			(0.29	)
2013			10.51			0.22			(0.50	)			(0.28	)			(0.22	)			(0.23	)			(0.45	)
HAWAII MUNICIPAL BOND FUND
Class I Shares:
2018		$	10.58		$	0.13		$	(0.19	)		$	(0.06	)		$	(0.13	)		$	—			$	(0.13	)
2017			10.45			0.25			0.14				0.39				(0.25	)			(0.01	)			(0.26	)
2016			10.80			0.27			(0.30	)			(0.03	)			(0.26	)			(0.06	)			(0.32	)
2015			10.88			0.29			(0.01	)			0.28				(0.29	)			(0.07	)			(0.36	)
2014			10.52			0.29			0.38				0.67				(0.29	)			(0.02	)			(0.31	)
2013			11.13			0.29			(0.57	)			(0.28	)			(0.29	)			(0.04	)			(0.33	)
Class A Shares:
2018		$	10.58		$	0.11		$	(0.18	)		$	(0.07	)		$	(0.11	)		$	—			$	(0.11	)
2017			10.45			0.23			0.13				0.36				(0.22	)			(0.01	)			(0.23	)
2016			10.80			0.24			(0.29	)			(0.05	)			(0.24	)			(0.06	)			(0.30	)
2015			10.88			0.26			(0.01	)			0.25				(0.26	)			(0.07	)			(0.33	)
2014			10.52			0.26			0.38				0.64				(0.26	)			(0.02	)			(0.28	)
2013			11.13			0.27			(0.57	)			(0.30	)			(0.27	)			(0.04	)			(0.31	)

(1)

Per share net investment income calculated using average shares.

*	Annualized.

†

Total return is for the period indicated and has not been annualized. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Fee waivers are in effect; if they had not been in effect, performance would have been lower.

Amounts designated as “—” are either $0 or have been rounded to $0.


Bishop Street Funds



Net Asset Value, End of Period			Total Return†			Net Assets End of Period (000)			Ratio of Expenses to Average Net Assets			Ratio of Expenses to Average Net Assets (Excluding Waivers)			Ratio of Net Investments Income (Loss) to Average Net Assets			Portfolio Turnover Rate



	$	15.65		(1.72	)%		$	38,246		1.05	%*		1.47	%*		1.50	%*		9	%
		16.05		20.47				42,196		1.05			1.46			1.55			11
		14.70		13.16				39,642		1.05			1.43			1.70			17
		13.45		0.44				46,246		1.05			1.38			1.62			24
		13.62		12.08				55,665		1.05			1.37			2.27			21
		12.43		28.84				61,460		1.05			1.38			1.87			13


	$	9.30		(2.38	)%		$	43,007		0.76	%*		1.33	%*		2.41	%*		9	%
		9.64		3.56				50,693		0.76			1.29			2.30			33
		9.65		1.47				61,204		0.76			1.25			2.20			27
		9.80		0.37				72,251		0.76			1.21			2.31			24
		10.05		5.77				74,642		0.76			1.20			2.32			28
		9.78		(2.69	)			74,007		0.76			1.21			2.18			35


	$	10.39		(0.60	)%		$	116,000		0.55	%*		1.06	%*		2.44	%*		8	%
		10.58		3.74				117,285		0.55			1.04			2.39			25
		10.45		(0.32	)			120,894		0.55			1.02			2.45			26
		10.80		2.61				127,712		0.55			0.98			2.64			28
		10.88		6.36				132,540		0.55			0.99			2.66			27
		10.52		(2.47	)			126,289		0.55			1.01			2.72			29

	$	10.40		(0.66	)%		$	18,516		0.80	%*		1.31	%*		2.19	%*		8	%
		10.58		3.46				20,335		0.80			1.29			2.14			25
		10.45		(0.57	)			22,374		0.80			1.27			2.20			26
		10.80		2.36				22,959		0.80			1.23			2.39			28
		10.88		6.10				22,324		0.80			1.24			2.41			27
		10.52		(2.72	)			24,359		0.80			1.26			2.47			29

The accompanying notes are an integral part of the financial statements.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

Notes to Financial Statements

June 30, 2018

The amounts included in the Notes to Financial Statements are in thousands unless otherwise noted.

1.	ORGANIZATION

The Bishop Street Funds (the “Trust”) are registered under the Investment Company Act of 1940, as amended, as an open-end, management investment company. The Bishop Street Funds consist of a series of three funds (each a Fund, collectively the “Funds”) which includes Dividend Value Fund, High Grade Income Fund, and the Hawaii Municipal Bond Fund. Each Fund is diversified, with the exception of Hawaii Municipal Bond Fund, which is non-diversified. Class A Shares of the Hawaii Municipal Bond Fund are subject to a sales load as disclosed in the prospectus. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectus provides a description of each Fund’s investment objectives, policies and strategies.

2.	SIGNIFICANT ACCOUNTING POLICIES

The following are significant accounting policies, which are consistently followed in the preparation of the financial statements of the Funds. The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”).

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the fair value of assets, the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates and such differences could be material.

Security Valuation

The Funds’ investments in equity securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ) including securities traded over the counter, are valued at the last quoted sale price on an exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm ET if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Debt securities are priced based upon valuations provided by independent, third-party pricing agents, if available.

Such values generally reflect the last reported sales price in the most advantageous market, if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual


Bishop Street Funds


			(unaudited)

market transactions, broker-supplied valuations, or other methodologies designed to identify the fair value for such securities. Such methodologies typically include matrix systems which reflect such factors as security prices, yields, maturities and ratings. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value provided that it is determined the amortized cost continues to approximate fair value. Should existing credit, liquidity or interest rate conditions in the relevant markets and issuer specific circumstances suggest that amortized cost does not approximate fair value, then the amortized cost method may not be used. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents.

If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.

Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Funds’ Board of Trustees (the “Board”). The Funds’ Fair Value Procedures are implemented through a Fair Value Pricing Committee (the “Committee”) designated by the Funds’ Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been delisted from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security’s primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee.

In accordance with the authoritative guidance on fair value measurement under U.S. GAAP, the Funds disclose fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

•

Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date;


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

•

Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, referenced indices, quoted prices in inactive markets, adjusted quoted prices in active markets, etc.); and

•

Level 3 — Prices, inputs or exotic modeling techniques which are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.

For the six-month period ended June 30, 2018, there have been no changes to the Funds’ fair value methodologies.

Federal Income Taxes

It is each Fund’s intention to continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to shareholders. Accordingly, no provision for Federal income taxes has been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than- not” (i.e., greater than 50-percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provision in the current period. However, management’s conclusions regarding tax positions taken may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last 3 open tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

Security Transactions and Investment Income

Security transactions are accounted for on trade date. Costs used in determining net realized capital gains and losses on the sale of securities are on the basis of specific identification. Interest income is recorded on the accrual basis from settlement date and dividend income is recorded on ex-dividend date.

Discounts and premiums are accreted or amortized using the effective interest method over the life of each security and are recorded as interest income. Realized gains (losses) on paydowns of mortgage-backed and asset-backed securities are recorded as an adjustment to interest income.


Bishop Street Funds


			(unaudited)

Classes

Class-specific expenses are borne by the applicable class of shares. Income, realized and unrealized gains/losses and non-class-specific expenses are allocated to the respective class on the basis of relative daily net assets. Distribution fees are the only class-specific expense.

Expenses

Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses of the Trust are prorated to each of the Funds on the basis of relative net assets.

Dividends and Distributions to Shareholders

The Dividend Value Fund declare and pay dividends from net investment income, if available, on a quarterly basis. Dividends from net investment income are declared daily and paid on a monthly basis for the High Grade Income and Hawaii Municipal Bond. Any net realized capital gains will be distributed at least annually for all Funds. Distributions to shareholders are recorded on the ex-dividend date.

Front-End Sales Commission

Front-end sales commissions (the “sales charges”) are not recorded as expenses of the Hawaii Municipal Bond Fund. Sales charges are deducted from proceeds from the sales of Hawaii Municipal Bond Fund shares prior to investment in Class A shares.

Cash Overdraft Charges

Per the terms of the agreement with MUFG Union Bank, N.A., the custodian of the Funds (the “Custodian”), if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of the Prime Rate plus 4.00%. Cash overdraft charges are included in miscellaneous expenses on the Statements of Operations. For the six-month period ended June 30, 2018, there were no cash overdraft charges.

3.	INVESTMENT ADVISORY AGREEMENT

Investment advisory services are provided to the Funds by Bishop Street Capital Management (the “Adviser”), a registered adviser and wholly owned subsidiary of First Hawaiian Bank. First Hawaiian Bank is a subsidiary of BancWest Corporation, itself a subsidiary of BNP Paribas. The Adviser is entitled to receive an annual fee of 0.74% of the average daily net assets of the Dividend Value Fund, 0.55% of the average daily net assets of the High Grade Income Fund, and 0.35% of the average daily net assets of the Hawaii Municipal Bond Fund. The Adviser has contractually agreed, through April 30, 2019, to waive a portion of its advisory fee (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses (collectively,


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

excluded expenses)) to the extent necessary to keep operating expenses at or below certain percentages of the respective average daily net assets. The contractual expense limitations are as follows:


Dividend Value Fund, Class I Shares			1.05%
High Grade Income Fund, Class I Shares			0.76%
Hawaii Municipal Bond Fund, Class I Shares			0.55%
Hawaii Municipal Bond Fund, Class A Shares			0.80%

If at any point it becomes unnecessary for the Adviser to reduce fees and make expense reimbursements, the Board may permit the Adviser to retain the difference between the Total Annual Fund Operating Expenses and contractual expense limitations to recapture all or a portion of its prior expense reductions or reimbursements made during the preceding three year period during which this agreement was in place. During the six-month period ended June 30, 2018, the Adviser did not recapture any previously waived fees.

As of June 30, 2018, fees which were previously waived by the Investment Manager which may be subject to possible future reimbursement to the Adviser were as follows:


Dividend Value Fund		High Grade Income Fund		Hawaii Municipal Bond Fund		Total		Expires
$	52	$	160	$	236	$	448		12/31/2018
	73		192		319		584		12/31/2019
	87		186		338		611		12/31/2020
	40		82		159		281		12/31/2021

Columbia Management Investment Advisers, LLC (“Columbia”) serves as the investment sub-adviser for the Dividend Value Fund, pursuant to a sub-adviser agreement. Columbia is entitled to receive from the Adviser a fee, computed daily and paid monthly, at the annual rate based on the average daily net assets of the Dividend Value Fund, under the following fee schedule: 0.360% on the first $75 million; 0.350% on the next $75 million; 0.325% on the next $100 million; 0.300% on the next $250 million; and 0.250% on assets over $500 million.

4.	ADMINISTRATIVE, CUSTODIAN, TRANSFER AGENT, DISTRIBUTION AND SHAREHOLDER SERVICES

The Funds and the Administrator are parties to an Administration Agreement under which the Administrator provides administrative services to the Funds. For these services, the Administrator is paid an asset based fee which will vary depending on the number of share classes and the average daily net assets of the Funds. The Administrator


Bishop Street Funds


			(unaudited)

has voluntarily agreed to waive 0.08% of its administrative fee on each of the Funds’ average daily net assets excluding the Hawaii Municipal Bond Fund for which the Administrator is waiving 0.13% of its fee. These fee waivers are voluntary and may be discontinued at any time. For the six-month period ended June 30, 2018, the Funds were charged as follows for these services: $40 in the Dividend Value Fund, $46 in the High Grade Income Fund, and $135 in the Hawaii Municipal Bond Fund. For the six-month period ended June 30, 2018, the Funds waived as follows for these services: $14 in the Dividend Value Fund, $16 in the High Grade Income Fund, and $80 in the Hawaii Municipal Bond Fund. These fees and waivers are labeled as “Administrative Fees/Waivers” on the Statement of Operations.

MUFG Union Bank, N.A. acts as custodian for the Funds. The Custodian plays no role in determining the investment policies of the Funds or which securities are to be purchased or sold by the Funds. These fees are labeled on the Statement of Operations as “Custody Fees.”

DST Systems, Inc. (“DST”) acts as the Transfer Agent of the Funds. As such, DST provides transfer agency, dividend disbursing and shareholder services to the Funds. These fees are disclosed on the Statement of Operations as “Transfer Agent Fees.”

SEI Investments Distribution Co. (“SIDCO”), the “Distributer” a wholly owned subsidiary of SEI Investments Company, acts as the Trust’s Distributor pursuant to the distribution agreement. The Funds have adopted a Distribution Plan (the “Plan”) on behalf of Class A Shares pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan provides that Class A Shares will bear the cost of their distribution expenses. SIDCO, as compensation for its services under the Plan, receives a distribution fee, computed daily and payable monthly, of 0.25% of the average daily net assets attributable to each Fund’s Class A Shares. This fee is disclosed as “Distribution Fees, Class A” on the Statement of Operations.

The Trust has adopted and entered into a shareholder service plan and agreement with SIDCO. Each Fund pays to SIDCO a shareholder servicing fee not to exceed an annual rate of 0.25% of the average daily net asset value of all shares of each fund, which is computed daily and paid monthly. Under the shareholder service plan, SIDCO may perform, or may compensate other service providers for performing various shareholder and administrative services. SIDCO may also retain as profit any difference between the fee it receives and amount it pays to third parties. For the year, SIDCO paid the entire amount of fees received under the shareholder service plan to First Hawaiian Bank, the Parent Company of Bishop Street Capital Management, for shareholder services performed by First Hawaiian Bank on behalf of SIDCO for the benefit of certain shareholders to the Funds. SIDCO has voluntarily agreed to waive 0.15% of its shareholder servicing fee to the extent necessary to keep operating expenses at or below certain


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

percentages of the respective average daily net assets. These fees and waivers are represented as “Shareholder Servicing Fees/Waivers” on the Statement of Operations.

5.	TRANSACTIONS WITH AFFILIATES

Certain officers of the Trust are also officers of SEI Investments Global Funds Services (the “Administrator”), a wholly owned subsidiary of SEI Investments Company, and/or SIDCO. Such officers are paid no fees by the Trust other than the Chief Compliance Officer (“CCO”) as described below, for serving as officers of the Trust.

A portion of the services provided by the CCO and his staff, who are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust’s Advisers and service providers as required by SEC regulations. The CCO’s services and expenses have been approved by and are reviewed by the Board. These fees are disclosed on the Statement of Operations as “Chief Compliance Officer Fees.”

6.	INVESTMENT TRANSACTIONS

The cost of security purchases and the proceeds from the sale and maturities of securities, other than short-term investments, for the six-month period ended June 30, 2018 are presented below for the Funds.


	Dividend Value Fund		High Grade Income Fund		Hawaii Municipal Bond Fund
Purchases
U.S. Government Securities	$	—	$	1,822	$	—
Other		3,667		2,175		13,065
Sales and Maturities
U.S. Government Securities	$	—	$	1,887	$	—
Other		5,866		7,330		11,013

7.	FEDERAL TAX INFORMATION

The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations which may differ from U.S. GAAP.

As a result, net investment income (loss) and net realized gain (loss) on investment transactions for the reporting period may differ from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to undistributed net investment income/(loss), paid-in capital or accumulated net realized gain/(loss), as appropriate, in the period that the differences arise.


Bishop Street Funds


			(unaudited)

The tax character of dividends and distributions declared during the years ended December 31, 2017 and 2016 were as follows:


	Ordinary Income		Tax Exempt Income		Long Term Capital Gain		Total
Dividend Value Fund
2017	$	676	$	—	$	3,392	$	4,068
2016		746		—		694		1,440
High Grade Income Fund
2017	$	1,314	$	—	$	659	$	1,973
2016		1,647		—		345		1,992
Hawaii Municipal Bond Fund
2017	$	1	$	3,277	$	81	$	3,359
2016		163		3,599		616		4,378

As of December 31, 2017, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows:


	Dividend Value Fund		High Grade Income Fund			Hawaii Municipal Bond Fund
Undistributed Ordinary Income	$	12	$	3		$	5
Undistributed Long-Term Capital Gain Income		795		28			11
Unrealized Appreciation		15,466		994			1,735
Other Temporary Differences		3		(15	)		1

Total Distributable Earnings	$	16,276	$	1,010		$	1,752

Post-October losses represent losses realized on investment transactions from November 1, 2017 through December 31, 2017 that, in accordance with Federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

For Federal income tax purposes, capital losses incurred may be carried forward and applied against future capital gains. Under the Regulated Investment Company Modernization Act of 2010, Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Additionally, post enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

For the year ended December 31, 2017, there were no Capital loss carryforwards that were not subject to expiration.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

For Federal income tax purposes, the cost of securities owned at June 30, 2018, and the net realized gains or losses on securities sold for the period were not materially different from amounts reported for financial reporting purposes. These differences are primarily due to wash sales which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The aggregate gross unrealized appreciation and depreciation of securities held by the Dividend Value, High Grade Income, and Hawaii Municipal Bond Funds for Federal income tax purposes at June 30, 2018 were as follows:


	Dividend Value Fund			High Grade Income Fund			Hawaii Municipal Bond Fund
Federal Tax Cost	$	25,642		$	43,343		$	134,443

Gross Unrealized Appreciation		12,837			492			1,073
Gross Unrealized Depreciation		(217	)		(1,151	)		(1,691	)

Net Unrealized Appreciation	$	12,620		$	(659	)	$	(618	)

RISKS

The Hawaii Municipal Bond Fund invests primarily in debt instruments in the state of Hawaii. The issuers’ ability to meet their obligations may be affected by economic developments in that state. In addition, each Fund’s investments in debt securities are subject to “credit risk,” which is the risk that an issuer will be unable, or will be perceived to be unable, to repay its obligations at maturity and “interest rate risk” which is the potential for fluctuations in bond prices due to changing interest rates. Funds that invest primarily in high quality debt securities generally are subject to less credit risk than funds that invest in lower quality debt securities.

Certain debt securities are backed by credit enhancements from various financial institutions and financial guarantee assurance agencies. These credit enhancements reinforce the credit quality of the individual securities; however, if any of the financial institutions or financial guarantee assurance agencies’ credit quality should deteriorate, it could cause the individual security’s credit quality to change. Additionally, if any of the Funds concentrate their credit enhancements in any one financial institution, the risk of credit quality deterioration increases. The following table provides detail on the approximate percentage of Hawaii Municipal Bond Fund’s investments in securities with these types of enhancements, as well as the name of the entity providing the largest proportion of enhancements in the Fund.


Bishop Street Funds


			(unaudited)


		Hawaii Municipal Bond Fund
% of investments in securities with credit enhancements or liquidity enhancements		5.93%
Largest % of investments in securities with credit enhancements or liquidity enhancements from a single institution		2.34% (Assured Guaranty Municipal Corporation)

The value of asset-backed securities may be affected by the credit risk of the servicing agent for the pool, the originator of the loans or receivables, or the financial institution(s) providing the credit support. In addition to credit risk, asset-backed securities and other securities with early redemption features are subject to pre-payment risk. During periods of declining interest rates, prepayment of loans underlying asset-backed securities can be expected to accelerate or an issuer may retire an outstanding bond early to reduce interest costs. A Fund’s ability to maintain positions in such securities will be affected by reductions in the principal amount of such securities resulting from prepayments, and its ability to reinvest the returns of principal at comparable yields is subject to the general prevailing interest rates at that time.

The market value of the Funds’ investments in fixed income securities may change in response to interest rate changes and other factors. During periods of falling interest rates, the values of fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Changes by recognized rating agencies in the ratings of any fixed income security and in the ability of an issuer to make payments of interest and principal may also affect the value of these investments.

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.

Dividend Value Fund invests solely in equity securities. Purchases of equity securities are subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund’s equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund’s.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

9.	LINE OF CREDIT

Through June 30, 2018, the Funds, which are not jointly liable, had entered into an agreement which enabled them to participate in a $5 million unsecured committed revolving line of credit on a first come, first served basis, with MUFG Union Bank, N.A. (the “Bank”). The proceeds from the borrowings were used to finance the Funds’ short term general working capital requirements, including the funding of shareholder redemptions. As of June 30, 2018, the Hawaii Municipal Bond Fund had borrowings of $115.

For the six-month period ended June 30, 2018, the Funds had the following borrowings under the line of credit:


Fund	Average Borrowings		Borrowing Costs		Number of Days Outstanding		Weighted Average Interest Rate
Dividend Value Fund	$	180		Less than $1		1		4.75	%
Hawaii Municipal Bond Fund		80		Less than $1		3		4.75	%

10.

OTHER

At June 30, 2018, the percentage of total shares outstanding held by shareholders owning 10% or greater of total shares outstanding of each Fund, which comprised omnibus accounts that were held on behalf of several individual shareholders, was as follows:


	Number of Shareholders		% of Outstanding Shares
Dividend Value Fund, Class I Shares		1		99.20
High Grade Income Fund, Class I Shares*		2		91.80
Hawaii Municipal Bond Fund, Class I Shares		1		80.74
Hawaii Municipal Bond Fund, Class A Shares		—		—

Includes one unaffiliated shareholder, all other shareholders in the above table are affiliated.

11.	SUBSEQUENT EVENTS

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued. Based on this evaluation, no additional disclosures and/or adjustments were required to the financial statements.


Bishop Street Funds


Bishop Street Funds			(unaudited)

Disclosure of Fund Expenses

All mutual funds have operating expenses. As a shareholder of a mutual fund you incur two types of costs: (1) transaction costs, including applicable sales charges (loads); and (2) ongoing costs, which include (among others) costs for portfolio management, administrative services, distribution and service (12b-1), shareholder service fees, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns.

Operating expenses such as these are deducted from a mutual fund’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the mutual fund’s average net assets; this percentage is known as the mutual fund’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period from January 1, 2018 to June 30, 2018.

The table on the next page illustrates your Fund’s costs in two ways:

•

Actual Fund Return. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

•

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

Note: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)


	Beginning Account Value 1/1/18		Ending Account Value 6/30/18		Annualized Expense Ratios			Expenses Paid During Period*
Dividend Value Fund — Class I

Actual Fund Return	$	1,000.00	$	982.80		1.05	%	$	5.16
Hypothetical 5% Return		1,000.00		1,019.59		1.05			5.26

High Grade Income Fund — Class I

Actual Fund Return	$	1,000.00	$	976.20		0.76	%	$	3.72
Hypothetical 5% Return		1,000.00		1,021.03		0.76			3.81

Hawaii Municipal Bond Fund — Class I

Actual Fund Return	$	1,000.00	$	994.00		0.55	%	$	2.72
Hypothetical 5% Return		1,000.00		1,022.07		0.55			2.76

Hawaii Municipal Bond Fund — Class A

Actual Fund Return	$	1,000.00	$	993.40		0.80	%	$	3.95
Hypothetical 5% Return		1,000.00		1,020.83		0.80			4.01

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).


Bishop Street Funds


Bishop Street Funds			(unaudited)

Renewal of Investment Advisory and Sub-Advisory Agreements

Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Funds’ advisory and sub-advisory agreements must be renewed at least annually after their initial two-year term: (i) by the vote of the Board of Trustees (the “Board” or the “Trustees”) of Bishop Street Funds (the “Trust”) or by a vote of a majority of the shareholders of the Funds; and (ii) by the vote of a majority of the Trustees who are not parties to the advisory or sub-advisory agreements or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such renewal.

A Board meeting was held on February 28, 2018 to decide whether to renew the following agreements (the “Agreements”) for additional one-year terms:

•

the advisory agreement between Bishop Street Capital Management (the “Adviser”) and the Trust, on behalf of the Bishop Street Hawaii Municipal Bond Fund, Bishop Street High Grade Income Fund, and Bishop Street Dividend Value Fund; and

•

the sub-advisory agreement between the Adviser and Columbia Management Investment Advisers, LLC (the “Sub-Adviser”) on behalf of the Bishop Street Dividend Value Fund.

In preparation for the meeting, the Trustees requested that the Adviser and the Sub-Adviser furnish information necessary to evaluate the terms of the Agreements. Prior to the meeting, the Independent Trustees of the Funds met to review and discuss the information provided and submitted a request for additional information to the Adviser, and information was provided in response to this request. The Trustees used this information, as well as other information that the Adviser, the Sub-Adviser and other service providers of the Funds presented or submitted to the Board at the meeting and other meetings held during the prior year, to help them decide whether to renew the Agreements for an additional year.

Specifically, the Board requested and received written materials from the Adviser, the Sub-Adviser and other service providers of the Funds regarding: (i) the nature, extent and quality of the Adviser’s and the Sub-Adviser’s services; (ii) the Adviser’s and the Sub-Adviser’s investment management personnel; (iii) the Adviser’s and the Sub-Adviser’s operations and financial condition; (iv) the Adviser’s and the Sub-Adviser’s brokerage practices (including any soft dollar arrangements) and investment strategies; (v) the Funds’ advisory fees paid to the Adviser and the Sub-Adviser and overall fees and operating expenses compared with peer groups of mutual funds; (vi) the level of the Adviser’s and the Sub-Adviser’s profitability from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Adviser and their affiliates; (vii) the Adviser’s and the Sub-Adviser’s potential economies of scale; (viii) the Adviser’s and the


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

Sub-Adviser’s compliance programs, including a description of material compliance matters and material compliance violations; (ix) the Adviser’s and the Sub-Adviser’s policies on and compliance procedures for personal securities transactions; and (x) the Funds’ performance compared with peer groups of mutual funds and the Funds’ benchmark indices.

Representatives from the Adviser and the Sub-Adviser, along with other Fund service providers, presented additional information and participated in question and answer sessions at the Board meeting to help the Trustees evaluate the Adviser’s and the Sub-Adviser’s services, fees and other aspects of the Agreements. The Independent Trustees received advice from independent counsel and met in executive sessions outside the presence of Fund management, the Adviser and the Sub-Adviser.

At the Board meeting, the Trustees, including all of the Independent Trustees, based on their evaluation of the information provided by the Adviser, the Sub-Adviser and other service providers of the Funds, renewed the Agreements. In considering the renewal of the Agreements, the Board considered various factors that they determined were relevant, including: (i) the nature, extent and quality of the services provided by the Adviser and the Sub-Adviser; (ii) the investment performance of the Funds and the Adviser and the Sub-Adviser; (iii) the costs of the services provided and profits realized by the Adviser and the Sub-Adviser from their relationships with the Funds, including both direct and indirect benefits accruing to the Adviser and the Sub-Adviser and their affiliates; (iv) the extent to which economies of scale are being realized by the Adviser and the Sub-Adviser; and (v) whether fee levels reflect such economies of scale for the benefit of Fund investors, as discussed in further detail below.

Nature, Extent and Quality of Services Provided by the Adviser and the Sub-Adviser

In considering the nature, extent and quality of the services provided by the Adviser and the Sub-Adviser, the Board reviewed the portfolio management services provided by the Adviser and the Sub-Adviser to the Funds, including the quality and continuity of the Adviser’s and the Sub-Adviser’s portfolio management personnel, the resources of the Adviser and the Sub-Adviser, and the Adviser’s and the Sub-Adviser’s compliance histories and compliance programs. The Trustees reviewed the terms of the Agreements. The Trustees also reviewed the Adviser’s and the Sub-Adviser’s investment and risk management approaches for the Funds. The Trustees considered that the Adviser supervises and monitors the performance of the Sub-Adviser. The most recent investment adviser registration forms (“Form ADV”) for the Adviser and the Sub-Adviser were available to the Board, as were the responses of the Adviser and the Sub-Adviser to a detailed series of questions which included, among other things, information about the investment advisory services provided by the Adviser and the Sub-Adviser to the Funds.


Bishop Street Funds


			(unaudited)

The Trustees also considered other services provided to the Funds by the Adviser and the Sub-Adviser such as selecting broker-dealers for executing portfolio transactions, monitoring adherence to the Funds’ investment restrictions, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. Based on the factors above, as well as those discussed below, the Board concluded, within the context of its full deliberations, that the nature, extent and quality of the services provided to the Funds by the Adviser and the Sub-Adviser were sufficient to support renewal of the Agreements.

Investment Performance of the Funds, the Adviser and the Sub-Adviser

The Board was provided with regular reports regarding the Funds’ performance over various time periods. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ performance to their benchmark indices and peer groups of mutual funds as classified by Lipper, an independent provider of investment company data, over various periods of time. Representatives from the Adviser and the Sub-Adviser provided information regarding and led discussions of factors impacting the performance of the Funds, outlining current market conditions and explaining their expectations and strategies for the future. The Trustees determined that the Funds’ performance was satisfactory, or, where the Funds’ performance was materially below their benchmarks and/or peer groups, the Trustees were satisfied by the reasons for the underperformance and/or the steps taken by the Adviser and the Sub-Adviser in an effort to improve the performance of the Funds. Based on this information, the Board concluded, within the context of its full deliberations, that the investment results that the Adviser and the Sub-Adviser had been able to achieve for the Funds were sufficient to support renewal of the Agreements.

Costs of Advisory Services, Profitability and Economies of Scale

In considering the advisory fees payable by the Funds to the Adviser, as well as the fee payable by the Adviser to the Sub-Adviser, the Trustees reviewed, among other things, a report of the advisory fees paid to the Adviser and the Sub-Adviser. The Trustees also reviewed reports prepared by the Funds’ administrator comparing the Funds’ net and gross expense ratios and advisory fees to those paid by peer groups of mutual funds as classified by Lipper. The Trustees reviewed the management fees charged by the Sub-Adviser to other clients with comparable mandates. The Trustees considered any differences in management fees and took into account the respective demands, resources and complexity associated with the Bishop Street Dividend Value Fund and other client accounts as well as the extensive regulatory, compliance and tax regimes to which the Fund is subject. The Trustees also considered that the Adviser, not the Bishop Street Dividend Value Fund, paid the Sub-Adviser pursuant to the sub-advisory agreement and that the fee payable to the Sub-Adviser reflected an arms-length negotiation


June 30, 2018				www.bishopstreetfunds.com


Bishop Street Funds			(unaudited)

between the Adviser and the Sub-Adviser. The Trustees evaluated both the fee under the sub-advisory agreement and the portion of the fee under the advisory agreement retained by the Adviser. The Board concluded, within the context of its full deliberations, that the advisory fees were reasonable in light of the nature and quality of the services rendered by the Adviser and the Sub-Adviser.

The Trustees reviewed the costs of services provided by and the profits realized by the Adviser and the Sub-Adviser from their relationship with the Funds, including both direct benefits and indirect benefits, such as research and brokerage services received under soft dollar arrangements, accruing to the Adviser and the Sub-Adviser and their affiliates. The Trustees considered how the Adviser’s and the Sub-Adviser’s profitability was affected by factors such as their organizational structures and methods for allocating expenses. The Trustees concluded that the profit margins of the Adviser and the Sub-Adviser with respect to the management of the Funds were not unreasonable. The Board also considered the Adviser’s and the Sub-Adviser’s commitment to managing the Funds and the Adviser’s willingness to continue its expense limitation and fee waiver arrangements with the Funds.

The Trustees considered the Adviser’s and Sub-Adviser’s views relating to economies of scale in connection with the Funds as Fund assets grow and the extent to which the benefits of any such economies of scale are shared with the Funds and Fund shareholders. The Board considered the existence of any economies of scale and whether those were passed along to the Funds’ shareholders through a graduated advisory fee schedule or other means, including fee waivers. The Trustees recognized that economies of scale are difficult to identify and quantify and are rarely identifiable on a fund-by-fund basis. Based on this evaluation, the Board concluded that the advisory fees were reasonable in light of the information that was provided to the Trustees by the Adviser and the Sub-Adviser with respect to economies of scale.

Renewal of the Agreements

Based on the Board’s deliberations and its evaluation of the information described above and other factors and information it believed relevant in the exercise of its reasonable business judgment, the Board, including all of the Independent Trustees, with the assistance of Fund counsel and Independent Trustees’ counsel, unanimously concluded that the terms of the Agreements, including the fees payable thereunder, were fair and reasonable and agreed to renew the Agreements for another year. In its deliberations, the Board did not identify any absence of information as material to its decision, or any particular factor (or conclusion with respect thereto) or single piece of information that was all-important, controlling or determinative of its decision, but considered all of the factors together, and each Trustee may have attributed different weights to the various factors (and conclusions with respect thereto) and information.


Bishop Street Funds


Bishop Street Funds			(unaudited)

Shareholder Voting Results

A Special Meeting of the Shareholders of the Bishop Street Funds (the “Trust”) was held on March 26, 2018 for the purpose of electing the following eight Trustees to the Board of Trustees of the Trust: Robert Nesher, N. Jeffrey Klauder, Joseph T. Grause, Jr., Mitchell A. Johnson, Betty L. Krikorian, Bruce Speca, George J. Sullivan, Jr. and Tracie E. Ahern. There were 22,490,220 outstanding shares, 18,485,605 shares were voted representing 64.88% of the eligible outstanding shares. The results of the election are as follows:


Trustee/Nominee	Shares Voted For		Shares Withheld		Percentage Voted in Favor of			Percentage Withheld
Robert Nesher		18,485,605		0		100.00	%		0.00	%
N. Jeffrey Klauder		18,479,999		5,606		99.97	%		0.03	%
Joseph T. Grause, Jr.		18,479,999		5,606		99.97	%		0.03	%
Mitchell A. Johnson		18,485,605		0		100.00	%		0.00	%
Betty L. Krikorian		18,485,605		0		100.00	%		0.00	%
Bruce Speca		18,485,605		0		100.00	%		0.00	%
George J. Sullivan, Jr.		18,479,999		5,606		99.97	%		0.03	%
Tracie E. Ahern		18,485,605		0		100.00	%		0.00	%


June 30, 2018				www.bishopstreetfunds.com

INVESTMENT ADVISER

BISHOP STREET CAPITAL MANAGEMENT

HONOLULU, HI 96813

ADMINISTRATOR

SEI INVESTMENTS GLOBAL FUNDS SERVICES

ONE FREEDOM VALLEY DRIVE

OAKS, PA 19456

DISTRIBUTOR

SEI INVESTMENTS DISTRIBUTION CO.

ONE FREEDOM VALLEY DRIVE

OAKS, PA 19456

TRANSFER AGENT

DST SYSTEMS, INC.

KANSAS CITY, MO 64121

CUSTODIAN

MUFG UNION BANK, N.A.

SAN FRANCISCO, CA 94104

LEGAL COUNSEL

MORGAN, LEWIS & BOCKIUS LLP

PHILADELPHIA, PA 19103

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

PRICEWATERHOUSECOOPERS LLP

PHILADELPHIA, PA 19103

LOGO

FOR MORE INFORMATION ABOUT BISHOP STREET FUNDS, CALL 1-800-262-9565

OR YOUR INVESTMENT SPECIALIST

VISIT US ONLINE AT WWW.BISHOPSTREETFUNDS.COM

BISHOP STREET FUNDS

P.O. BOX 219721

KANSAS CITY, MO 64121-9721

THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF BISHOP STREET FUNDS’ SHAREHOLDERS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.

SHARES OF BISHOP STREET FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY FIRST HAWAIIAN BANK OR ANY OF ITS AFFILIATES. SUCH SHARES ARE ALSO NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY. INVESTMENT IN SHARES OF MUTUAL FUNDS INVOLVES RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. THE BISHOP STREET FUNDS ARE DISTRIBUTED BY SEI INVESTMENTS DISTRIBUTION CO., WHICH IS NOT AFFILIATED WITH FIRST HAWAIIAN BANK, BANK OF THE WEST OR BANCWEST CORPORATION. BANCWEST CORPORATION IS A WHOLLY-OWNED SUBSIDIARY OF BNP PARIBAS.

BSF-SA-004-2400

Item 2.

Code of Ethics.

Not applicable for semi-annual report.

Item 3.

Audit Committee Financial Expert.

Not applicable for semi-annual report.

Item 4.

Principal Accountant Fees and Services.

Not applicable for semi-annual report.

Item 5.

Audit Committee of Listed Registrants.

Not applicable to open-end management investment companies.

Item 6.

Schedule of Investments.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8.

Portfolio Managers of Closed-End Management Investment Companies.

Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.

Item 9.

Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11.

Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.30a-15(b)) or 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Items 13.

Exhibits.

(a)(1) Not applicable for semi-annual report.

(a)(2) A separate certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), is filed herewith.

(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)


				Bishop Street Funds

By (Signature and Title)*				/s/ Michael Beattie
				Michael Beattie
Date: September 6, 2018				President

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.



By (Signature and Title)*				/s/ Michael Beattie
				Michael Beattie
Date: September 6, 2018				President



By (Signature and Title)*				/s/ Stephen Connors
				Stephen Connors
Date: September 6, 2018				Treasurer, Controller & CFO