Hawaiian Tax-Free Trust Class F (HULFX)

Overview

The company specializes in managing a fund focused on investing primarily in municipal obligations that are exempt from Rhode Island state and regular Federal income taxes, as well as being not subject to the Federal alternative minimum tax on individuals. It operates under a strategy of allocating at least 80% of its net assets into these tax-exempt municipal obligations. These investments can span across any maturity, though the fund generally maintains a weighted average maturity ranging from 5 to 15 years. Despite its concentration in tax-exempt securities, it is characterized as a non-diversified fund, allowing it to potentially take on more risk with the aim of seeking higher returns.

Products and Services

The fund focuses on offering investment opportunities in municipal obligations with the following characteristics:

• Tax-Exempt Municipal Obligations: The primary product of the fund consists of investments in municipal obligations that, in the opinion of bond counsel, provide interest income exempt from Rhode Island state and regular Federal income taxes. This tax exemption applies to the income generated by these obligations, making them attractive to investors seeking tax-advantaged income.
• Exemption from Federal Alternative Minimum Tax (AMT): In addition to the standard tax exemptions, the income paid by the fund's investments is also not subject to the Federal alternative minimum tax for individuals. This feature adds an additional layer of tax efficiency, particularly beneficial for investors who are subject to the AMT.
• Investment Maturity Range: The fund's investments are not restricted by maturity, allowing for flexibility in managing the portfolio. However, it has historically maintained a weighted average maturity between 5 and 15 years. This strategy seeks to balance the potential for higher returns associated with longer maturities with the risk management benefits of shorter maturities.