hawaii

Hawaiian Tax-Free Trust

Overview
Performance
Distributions
Fees & Expenses
Portfolio Management

Description & Objective

Hawaiian Tax-Free Trust is a municipal bond mutual fund designed especially for Hawaii residents.

The Trust seeks to provide as high a level of current income exempt from Hawaii state and regular federal income taxes as is consistent with preservation of capital by investing in municipal obligations which pay interest exempt from Hawaii state and federal income taxes. To achieve this objective, the Trust will invest primarily in tax-free municipal obligations of investment grade quality – the kind of securities that finance schools, highways, airports, hospitals, and water and sewer facilities in Hawaii.

Investor Profile

Hawaii taxpayers who can benefit from income that is exempt from federal and state income taxes. For certain investors, some dividends may be subject to federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax adviser. The Trust is not appropriate for tax-deferred retirement plans, such as IRAs.

How to Invest

You may invest in any of the Aquila Group of Funds through your professional financial advisor at the public offering price as described in the the prospectus, or by completing the Fund’s application. The Fund offers both Front-Payment Class Shares (Class A Shares) or Level-Payment Class Shares (Class C Shares). The maximum sales charge included in the offering price of Class A Shares varies by fund. Please see the prospectus for details, or fund-specific information on this site. Class C Shares do not have a sales charge, but do have a contingent deferred sales charge (CDSC) of 1% if a redemption occurs within the first 12 months of purchase. Class I and Class Y shares are available to investors only through a professional financial advisor or a financial institution. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

How to Redeem

You may redeem all or part of your investment on any business day at the next-determined Net Asset Value of the Fund’s shares after acceptance of your redemption request. You should be aware that investment returns and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. The prospectus outlines a number of different ways you may redeem your shares. A 1% contingent deferred sales charge (CDSC) applies to Class C Shares redeemed within the first 12 months of purchase.

Board of Trustees

  • Richard L. Humphreys, Chair - President, Hawaii Receivables Management, LLC (a factoring company) since 2001; President Lynk Payment Systems Hawaii, LLC (credit card processing) since 2002. Formerly Chairman, Bank of America, Hawaii; President, Hawaiian Trust Co.; President, First Federal S&L; and E.V.P., Bank of Hawaii. Other Directorships held by Trustee: Board of Directors, Bishop Museum; Board of Directors, Friends of the Cancer Research Center; Board of Directors, The Castle Group, Inc.; formerly Trustee, Pacific Capital Funds, Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012.

  • Diana P. Herrmann, Vice Chair and President – Vice Chair and Chief Executive Officer of Aquila Management Corporation, Founder and Sponsor of the Aquila Group of Funds and parent of Aquila Investment Management LLC, Manager, since 2004, President since 1997, Chief Operating Officer, 1997-2008, a Director since 1984, Secretary since 1986 and previously its Executive Vice President, Senior Vice President or Vice President, 1986-1997; Chief Executive Officer and Vice Chair since 2004, President and Manager since 2003, and Chief Operating Officer (2003-2008), of the Manager; Chair, Vice Chair, President, Executive Vice President and/or Senior Vice President of funds in the Aquila Group of Funds since 1986; Director of the Distributor since 1997; Governor, Investment Company Institute (the U.S. mutual fund industry trade organization dedicated to protecting shareholder interests and educating the public about investing) for various periods since 2004, and head of its Small Funds Committee, 2004-2009; active in charitable and volunteer organizations. Other Directorships held by Trustee – ICI Mutual Insurance Company, a Risk Retention Group (2006-2009 and 2010-2013); Vice Chair and Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2004-2012.

  • Bert A. Kobayashi, Jr. – Managing Partner, BlackSand Capital, LLC (private real estate investment company) since 2010; Partner, Kobayashi Group, LLC (a group of companies primarily engaged in real estate enterprises) since 2001; Managing Director, KG Holdings, LLC (real estate investment) since 2009; Vice President, Nikken Holdings, LLC (real estate investment) since 2003; interested in a number of other real estate companies in Hawaii. Other Directorships held by Trustee: Hawaiian Electric Company, Inc.; Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012.

  • Glenn P. O’Flaherty - Chief Financial Officer and Chief Operating Officer of Lizard Investors, LLC, 2008; Co-Founder, Chief Financial Officer and Chief Compliance Officer of Three Peaks Capital Management, LLC, 2003-2005; Vice President – Investment Accounting, Global Trading and Trade Operations, Janus Capital Corporation, and Chief Financial Officer and Treasurer, Janus Funds, 1991- 2002.  Other Directorships held by Trustee – Lead Independent Trustee of Aquila Three Peaks High Income Fund since 2012; Trustee since 2006.  Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 2009-2012.

  • Russell K. Okata – Executive Director, Hawaii Government Employees Association AFSCME Local 152, AFL-CIO 1981-2007; International Vice President, American Federation of State, County and Municipal Employees, AFL-CIO 1981-2007; Hawaii Democratic Party National Committeeman; director of various civic and charitable organizations. Other Directorships held by Trustee: Hawaii Client Services (part of Hawaii Dental Services Group); formerly Trustee and Chairman, Pacific Capital Funds; past Chair of the Royal State Group (insurance); Trustee of Pacific Capital Funds of Cash Assets Trust (three money-market funds in the Aquila Group of Funds) 1993-2012.

  • Nominating Committee charter

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Fund Facts

  • Fund symbol: HULAX
  • CUSIP: 420016107
  • Inception date: 2/20/1985
  • Total net assets ($millions) as of 10/31/13: $789.70

Qualified for sale in:

HI, AK, AZ, CA, CO, FL, IL, IN, IA, MD, MA, MI, MO, NV, NJ, NY, OR, TX, VA, WA

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

  • Fund symbol: HULCX
  • CUSIP: 420016206
  • Inception date: 4/1/1996
  • Total net assets ($millions) as of 10/31/13: $789.70

Qualified for sale in:

HI, AK, AZ, CA, CO, FL, IL, IN, MD, MA, MO, NV, NJ, NY, OR, TX, VA, WA

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

  • Fund symbol: HULYX
  • CUSIP: 420016305
  • Inception date: 4/1/1996
  • Total net assets ($millions) as of 10/31/13: $789.70

Qualified for sale in:

HI, AK, CA, CO, FL, IL, IN, MO, NV, NJ, NY, OR, VA

Fund-Specific Risks

Consideration should be given to the risks of investing. Investments in bonds involve certain risks including a decline in value due to rising interest rates, a real or perceived decline in credit quality of the issuer, borrower, counterparty, or collateral, adverse tax or legislative changes, court decisions, market or economic conditions. Fund performance could be more volatile than that of funds with greater geographic diversification. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Please consult your professional tax advisor.

NAV As of 04/16/14   $11.43

TOTAL RETURNS as of 03/31/2014as of 03/31/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULAX (At maximum offering price) (4.00) (2.25) (2.25) (4.61) 1.94 2.39 2.67 5.59
HULAX (At NAV) (0.03) 1.84 1.84 (0.63) 3.35 3.23 3.08 5.74
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULAX (At maximum offering price) (4.00) (2.25) (2.25) (4.61) 1.94 2.39 2.67 5.59
HULAX (At NAV) (0.03) 1.84 1.84 (0.63) 3.35 3.23 3.08 5.74
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 37 of 290 245 of 282 257 of 269 168 of 231
Lipper Percentile 13 87 96 73

NAV As of 04/16/14   $11.42

TOTAL RETURNS as of 03/31/2014as of 03/31/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULCX (With CDSC) (1.10) 0.68 0.68 (2.36) 2.54 2.42 2.27 3.32
HULCX (Without CDSC) (0.10) 1.69 1.69 (1.38) 2.54 2.42 2.27 3.32
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULCX (With CDSC) (1.10) 0.68 0.68 (2.36) 2.54 2.42 2.27 3.32
HULCX (Without CDSC) (0.10) 1.69 1.69 (1.38) 2.54 2.42 2.27 3.32
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 37 of 290 245 of 282 257 of 269 168 of 231
Lipper Percentile 13 87 96 73

NAV As of 04/16/14   $11.45

TOTAL RETURNS as of 03/31/2014as of 03/31/2014

Monthly Quarterly GROWTH of $10,000
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULYX 0.07 1.89 1.89 (0.43) 3.55 3.43 3.30 4.48
Fund Symbol Cumulative Average Annualized
1-month 3-month YTD 1-year 3-year 5-year 10-year Since inception
HULYX 0.07 1.89 1.89 (0.43) 3.55 3.43 3.30 4.48
Lipper Ranking (as of 12/31/2013), Other States Municipal Debt
Lipper Ranking 37 of 290 245 of 282 257 of 269 168 of 231
Lipper Percentile 13 87 96 73

Disclosures

Performance data represents past performance, but does not guarantee future results. Investment return and principal value will fluctuate; shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the data presented. Class A shares have a maximum sales charge of 4.00%; Class C shares have no initial sales charge, but a 1.00% contingent deferred sales charge applies to Class C shares redeemed within 12 months of their purchase date. Class Y shares have no initial or contingent deferred sales charge. Class A MOP (maximum offering price) returns reflect deduction of the maximum 4.00% sales charge; Class A NAV returns do not reflect deduction of the sales charge and would be lower if that charge were reflected. Class C returns without CDSC do not reflect deduction of the 1% CDSC applicable in the first 12 months; if applied, the CDSC would reduce the performance quoted.

Lipper rankings are based on total return without sales charge relative to all share classes of funds with similar objectives as determined by Lipper. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. Lipper category is as of the quarter-end date indicated and may not accurately represent the current composition of the portfolio.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Distributions as of 04/16/14
Fund Symbol Distribution Yield SEC Yield i
NAV i Maximum offering price Maximum offering price
HULAX 2.69 2.58 1.92

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 28 28
February 26 29
March 27 29
April 24 28
May 22 28
June 24 33
July 24 30
August 26 33
September 25 30
October 28 33
November 26 29
December 31 35
Distributions as of 04/16/14
Fund Symbol Distribution Yield SEC Yieldi
HULCX 1.90 1.21

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 28 28
February 26 29
March 27 29
April 24 28
May 22 28
June 24 33
July 24 30
August 26 33
September 25 30
October 28 33
November 26 29
December 31 35
Distributions as of 04/16/14
Fund Symbol Distribution Yield SEC Yieldi
HULYX 2.89 2.20

For the latest 30-day SEC yield, call 1-800-437-1020 between 9:00 A.M. and 5:00 P.M. ET on any business day.

Tax-Equivalent Yieldi Annual Tax Information

Disclosures

Data displayed represents past performance which does not guarantee future results. Due to market conditions, current yields may be higher or lower than the yields shown. The 30-Day SEC yield is a mutual fund’s yield, calculated as required by the SEC, based on the earnings of the fund’s portfolio during a 30-day period, divided by the offering price per share at the end of the period. This calculation reflects an estimated yield to maturity. It should be regarded as an estimate of the fund’s rate of investment income, and it may not equal the fund’s actual income distribution rate. The fund’s Distribution Rate is the percentage at which a mutual fund has distributed income to its shareholders. It is calculated by dividing a fund’s annualized dividend amount by its current offering price.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Dividends for all bond funds (tax-free municipal and corporate) in the Aquila Group of Funds are declared daily and paid monthly. For shareholders who receive monthly dividends by check from BNY Mellon, the funds’ shareholder servicing agent, rather than having them reinvested in additional shares or directly deposited into a bank account, we make every attempt to have monthly checks consistently arrive by the first of each month. In order to facilitate this, payments are processed and mailed prior to month-end, with the exception of December, when the dividend is declared on the 31st for tax reporting purposes. If your needs have changed and you wish to alter your investment directive from cash to reinvest, or to receive your cash dividends more efficiently through direct deposit, please call your financial professional or the fund’s shareholder servicing agent at 1-800-437-1000.

Dividend History

Dividend Schedule as of 2014

Dividend Cut-Off Date # of Days Covered by Dividend
January 31 31
February 28 28
March 31 31
April 30 30
May 31 31
June 30 30
July 31 31
August 31 31
September 30 30
October 31 31
November 30 30
December 31 31
Annual Expenses (as of July 26, 2013)
Total Operating Expense 0.82%
Net Expense ratio 0.82%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

Front-End Sales Charge Schedule
Investment Front-end Sales Charges
Less than $25,000 4.00%
$25,000 but less than $50,000 3.75%
$50,000 but less than $100,000 3.50%
$100,000 but less than $250,000 3.25%
$250,000 but less than $500,000 3.00%
$500,000 but less than $1,000,000 2.50%
$1,000,000 but less than $2,500,000 0.00%
$2,500,000 but less than $5,000,000 0.00%
$5,000,000 or more 0.00%
12b-1 Fees 0.20%
Contingent Deferred Sales Charges (CDSC)
Investment Applies to Purchases
over $1 million
Year 1 Year 2 Year 3&4
$1,000,000 but less than $2,500,000 1.00% 1.00% 0.50%
$2,500,000 but less than $5,000,000 0.50% 0.25% 0.00%
$5,000,000 or more 0.00% 0.00% 0.00%
Annual Expenses (as of July 26, 2013)
Total Operating Expense 1.62%
Net Expense ratio 1.62%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

CONTINGENT DEFERRED SALES CHARGES (CDSC)

A CDSC of 1% is applied to the redemption of Class C Shares held for less than 12 months. No CDSC applies to Class C Shares acquired through the reinvestment of dividends or distributions.

12b-1 Fees 0.75%
Annual Expenses (as of July 26, 2013)
Total Operating Expense 0.62%
Net Expense ratio 0.62%

Alternative Purchase Plans & Sales Charge Breakpoints

The fund provides individuals with alternative ways to purchase shares through four separate classes of shares (Classes A, C, I and Y). Although the classes have different sales charge structures and ongoing expenses, they all represent interests in the same portfolio of securities an investor should choose the class that best suits the investor’s circumstances and needs. You are entitled to substantial reductions in sales charges based on aggregate holdings of all shares of any class of any of the funds in the Aquila Group of Funds that you or other members of your immediate family already own at the time of your purchase. Before investing, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site and from your financial advisor, or by calling 800-437-1020.

12b-1 Fees 0.00%

Disclosures

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available here, from your financial advisor, or by calling 800-437-1020.

Portfolio Managers

  • Stephen K. Rodgers is Chief Investment Officer and Executive Vice President at Bank of Hawaii. He works in the bank’s Investment Services Group which manages $6 billion in client assets.  He joined the bank in 1995, and before joining the Investment Services Group in 2003, he worked in the bank’s Treasury Department and served as portfolio manager for the bank’s investment portfolio and oversaw the bank’s asset/liability management analytics team.

    He received his Bachelor of Arts degree from Amherst College in English and Economics and his Master of Business Administration degree from the University of Hawaii at Manoa. He is a Chartered Financial Analyst (CFA) charter holder and serves as president of the CFA Hawaii chapter. He also serves as a board member of the Hawaii Nature Center.

  • Janet Katakura is Vice President and Senior Portfolio Manager, Long-Term Tax-Free Bonds. Ms. Katakura serves as Senior Portfolio Manager within the Fixed Income Department.  Ms. Katakura has over 35 years of experience in the investment industry and worked at Bank of Hawaii for the last 30 years. Prior to joining Bank of Hawaii, Ms. Katakura held positions at Hawaiian Life Insurance Co., Ltd. And First National Bank of Boston.

  • Denis Massey is Vice President and Senior Portfolio Manager.  Mr. Massey serves as Portfolio Manager within the Fixed Income Department.  He has been with the bank in investments for 8 years.  He manages short-term tax-free portfolios. Prior to becoming a portfolio manager, he worked as a market risk analyst responsible for portfolio investment reviews and asset allocation modeling.  Mr. Massey received his Bachelor of Arts degree from Rutgers, The State University of New Jersey, and his Master of Business Administration degree from Shidler School of Business, University of Hawaii.