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On the Road to Investing Bishop Street Funds can provide the vehicle to
help you reach your goals.
Whether you're planning for retirement, a child's college education, investing 401(k) or pension fund proceeds, or simply planning for a major purchase, the Bishop Street Funds offer a fund or combination of funds that can help you pursue your investment goals. Below is an overview of your choices within the Bishop Street Fund family.
Stock Investing- Investing for Growth Growth funds invest in stocks of companies whose business is growing. Growth for companies tend to invest all or most of their profits for research and development rather than paying dividends. Therefore, growth funds are focused on generating capital gains rather than income. Growth funds are best suited for investors who do not need current income, are focused on long-term investment strategies, and are able to assume moderate to high risk. Appropriate Bishop Street Fund: Bishop Street Large Cap Growth Fund Why Stock Investing? While it is important to remember that past performance is no guarantee of future results, stocks (also known as equities) have historically provided significantly greater growth opportunities than other types of investments, but also have had more short-term volatility. As the chart illustrates, the value of $1 invested in stocks in 1925 has grown to $2,351 in 1998, but has experienced a lot of ups and downs along the way. That same $1 invested in Treasury Bills in 1925, while experiencing much less fluctuation (as shown by the relatively smooth upward line) has grown in value to $15 in 1998.  As you can see, historically, stocks (equities) have outperformed other types of investments over time. Remember, past performance is no guarantee of future results. This chart is for illustrative purposes only and is not indicative of the Bishop Street Funds results. Please refer to the Fund's prospectus for actual fund performance. Hypothetical value $1 invested at year-end 1925; Assumes reinvestment of income and no transaction costs or taxes. Stocks are represented by the S&P 500 Index. Bonds are represented by the U.S. Long-Term Government Bonds. T-Bills are represented by 30-day Treasury Securities. Inflation is represented by the Consumer Price Index. The value of equity investments is more volatile than other securities. Bonds are geared primarily toward providing a high level of income. Bond prices rise as interest rates fall, or conversely, interest rates risk, the value of Bond Investing - Investing for Income Bond funds offer investors current income and preservation of capital. Fixed income funds invest mainly in government or corporate securities that offer fixed returns, such as corporate bonds, government bonds or mortgage-backed securities. These funds are best suited for investors who have mid-term savings and investment goals, and can assume moderate to conservative risk. Appropriate Bishop Street Funds: Bishop Street High-Grade Income Fund, Bishop Street Hawaii Municipal Bond Fund Why Bond Investing? Today, people are living longer and fuller lives. However, Social Security appears to be less than adequate to provide most people with sufficient income for necessities, let alone leisure activities. When you retire, your investments need to work even harder for you while providing you with monthly income and striving to preserve the value of your investment. Cash/Money Market Investing - Investing for the Short-Term Money market funds invest mainly in fixed-income securities with short-term maturities -- typically one year or less, such as bank certificates of deposits, U.S. Treasury bills, repurchase agreements and commercial paper. These funds are designed to provide safety of principal and liquidity and are best suited for investors who have short-term goals. Appropriate Bishop Street Funds: Bishop Street Treasury Money Market Fund, Bishop Street Money Market Fund Why Cash/Money Market Investing? Trying to save for a house or a child’s college education is difficult enough without having inflation working against you. To help you achieve your short-term goal, or help preserve your “emergency fund,” you might want to look for investment opportunities that offer competitive money market yields with the objective of maintaining a stable value. It is important to understand your investment objective and risk tolerance when determining which funds fit best with your financial goals. An investment mix of stocks, bonds and cash is known as asset allocation. An investment professional can work with you to develop an asset allocation strategy that will help you best meet your financial goals.
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