Bank of Hawai‘i Becomes New Fund Sponsor for Hawaiian Tax-Free Trust, Hawai‘i’s First Municipal Bond Fund
Bank of Hawai'i (BOH) has become the new fund sponsor for Hawaiian Tax-Free Trust, Hawai'i's first municipal bond fund, taking over from New York-based Aquila Management BOH's Asset Management Group will continue to serve as the investment advisor, managing the fund's portfolio assets since its inception in 1985. As the new fund sponsor, BOH will provide more local leadership for this fund designed for Hawai'i residents.
The Hawaiian Tax-Free Trust invests in securities financing local infrastructure projects, such as schools, highways, airports, and water facilities. It aims to provide income exempt from both State of Hawai'i and Federal income taxes while preserving capital. This transition marks a significant shift in the fund's management, bringing it fully under local control.
La Bank of Hawai'i (BOH) è diventata il nuovo sponsor del fondo per il Hawaiian Tax-Free Trust, il primo fondo di obbligazioni municipali delle Hawai'i, subentrando alla Aquila Management di New York. Il Gruppo di Gestione degli Asset di BOH continuerà a fungere da consulente per gli investimenti, gestendo gli asset del portafoglio del fondo sin dalla sua creazione nel 1985. In qualità di nuovo sponsor del fondo, BOH fornirà una leadership più locale per questo fondo progettato per i residenti delle Hawai'i.
Il Hawaiian Tax-Free Trust investe in titoli che finanziano progetti infrastrutturali locali, come scuole, autostrade, aeroporti e impianti idrici. Ha l'obiettivo di fornire un reddito esente sia dalle tasse statali hawaiane che dalle tasse federali sul reddito, preservando al contempo il capitale. Questa transizione segna un cambiamento significativo nella gestione del fondo, portandolo completamente sotto il controllo locale.
El Bank of Hawai'i (BOH) se ha convertido en el nuevo patrocinador del fondo Hawaiian Tax-Free Trust, el primer fondo de bonos municipales de Hawai'i, asumiendo el control de Aquila Management, con sede en Nueva York. El Grupo de Gestión de Activos de BOH continuará sirviendo como el asesor de inversiones, gestionando los activos de la cartera del fondo desde su creación en 1985. Como nuevo patrocinador del fondo, BOH proporcionará un liderazgo más local para este fondo diseñado para los residentes de Hawai'i.
El Hawaiian Tax-Free Trust invierte en valores que financian proyectos de infraestructura locales, como escuelas, carreteras, aeropuertos e instalaciones de agua. Su objetivo es proporcionar ingresos exentos tanto de los impuestos estatales de Hawai'i como de los impuestos federales sobre la renta, preservando al mismo tiempo el capital. Esta transición marca un cambio significativo en la gestión del fondo, llevándolo completamente bajo control local.
하와이 은행(Bank of Hawai'i, BOH)이 하와이의 첫 번째 지방채 펀드인 하와이 세금 면제 신탁(Hawaiian Tax-Free Trust)의 새로운 펀드 스폰서가 되어 뉴욕 기반의 아킬라 매니지먼트(Aquila Management)로부터 인수했습니다. BOH의 자산 관리 그룹은 1985년 이래로 펀드의 포트폴리오 자산을 관리하는 투자 자문 역할을 계속 수행할 것입니다. 새로운 펀드 스폰서로서, BOH는 하와이 주민들을 위해 설계된 이 펀드에 보다 지역적인 리더십을 제공할 것입니다.
하와이 세금 면제 신탁은 학교, 고속도로, 공항, 수자원 시설 등의 지역 인프라 프로젝트를 재원 조달하는 증권에 투자합니다. 이는 하와이주 및 연방 소득세에서 면세되는 소득을 제공하면서 자본을 보존하는 것을 목표로 하고 있습니다. 이 전환은 펀드 관리에 중대한 변화를 의미하며, 완전히 지역의 통제 하에 놓이게 됩니다.
La Bank of Hawai'i (BOH) est devenue le nouveau sponsor du fonds Hawaiian Tax-Free Trust, le premier fonds d'obligations municipales d'Hawaï, prenant la relève d'Aquila Management basé à New York. Le Groupe de Gestion des Actifs de BOH continuera de servir en tant que conseiller en investissement, gérant les actifs du portefeuille du fonds depuis sa création en 1985. En tant que nouveau sponsor du fonds, BOH fournira un leadership plus local pour ce fonds conçu pour les résidents d'Hawaï.
Le Hawaiian Tax-Free Trust investit dans des titres finançant des projets d'infrastructure locaux, tels que des écoles, des autoroutes, des aéroports et des installations d'eau. Il vise à fournir un revenu exempt des impôts sur le revenu de l'État d'Hawaï et des impôts fédéraux, tout en préservant le capital. Cette transition marque un changement significatif dans la gestion du fonds, le plaçant totalement sous contrôle local.
Die Bank of Hawai'i (BOH) ist der neue Fonds-Sponsor für den Hawaiian Tax-Free Trust, den ersten kommunalen Anleihefonds von Hawai'i, und hat die New Yorker Aquila Management abgelöst. Die Asset Management Group von BOH wird weiterhin als Anlageberater fungieren und verwaltet die Portfoliovermögen des Fonds seit seiner Gründung im Jahr 1985. Als neuer Fonds-Sponsor wird BOH eine lokalere Führung für diesen Fonds bieten, der für die Bewohner von Hawai'i konzipiert ist.
Der Hawaiian Tax-Free Trust investiert in Wertpapiere, die lokale Infrastrukturprojekte wie Schulen, Autobahnen, Flughäfen und Wasserversorgungsanlagen finanzieren. Das Ziel ist es, ein Einkommen zu bieten, das von sowohl den Einkommenssteuern des Bundesstaates Hawai'i als auch von den Bundessteuern befreit ist, während das Kapital erhalten bleibt. Dieser Übergang markiert einen signifikanten Wandel in der Fondsverwaltung, der ihn vollständig unter lokale Kontrolle bringt.
- Bank of Hawai'i takes over as fund sponsor for Hawaiian Tax-Free Trust, potentially increasing local expertise and management
- BOH's Asset Management Group continues its long-standing role as investment advisor for the fund
- The fund focuses on local infrastructure investments, supporting Hawai'i's development
- None.
Insights
Bank of Hawai'i's takeover as fund sponsor for Hawaiian Tax-Free Trust is a strategic move with immediate financial impact. While it strengthens the bank's position in local financial services, the effect on revenue and profitability is likely minimal in the short term. The transition primarily involves administrative changes rather than significant asset acquisition.
Long-term, this could enhance Bank of Hawai'i's brand value and customer loyalty among local investors, potentially leading to increased assets under management. However, municipal bond funds typically have thin profit margins, so substantial financial gains may be Investors should view this more as a reputation-building move rather than a direct profit driver.
This transition reflects a broader trend of localization in financial services, particularly in niche markets like Hawai'i. Bank of Hawai'i's increased control over the Hawaiian Tax-Free Trust could lead to more tailored investment strategies aligned with local economic conditions and investor preferences.
The move may also signal a shift in competitive dynamics within Hawai'i's financial sector. By consolidating management of this unique product, Bank of Hawai'i could gain an edge in attracting and retaining high-net-worth local clients. However, the impact on market share will depend on how effectively they leverage this enhanced local focus in their marketing and product development strategies.
Together, Bank of Hawai‘i and Aquila launched Hawai‘i’s first municipal bond fund in 1985. Aquila served as the fund sponsor, managing the administration and distribution of the fund and ensuring its availability for public sale. Simultaneously, the Asset Management Group of Bank of Hawai‘i has served as the investment advisor, managing the assets of the portfolio, since the fund’s inception nearly four decades ago and will continue to do so. Now as the new fund sponsor, Bank of Hawai‘i will provide even more local leadership for Hawai‘i’s first municipal bond fund designed especially for Hawai‘i residents.
“We are excited to take on the role of fund sponsor for Hawaiian Tax-Free Trust given its focus on Hawai‘i’s local infrastructure,” said President of Bank of Hawai‘i James Polk. “Bank of Hawai‘i is well-positioned to lend its deep expertise in financial management to continue to support the long-term success of this fund.”
“On behalf of Aquila’s team, it has been a pleasure to serve the needs of thousands of Hawai‘i investors and their financial professionals over nearly 40 years. We are pleased that Hawaiian Tax-Free Trust will continue to endure under Bank of Hawai‘i’s oversight for the continuing benefit of Hawai‘i investors and that vital local projects will continue to benefit from the Fund’s support,” said Diana Herrmann, President and Chief Executive Officer of Aquila.
About Hawaiian Tax-Free Trust
- The fund invests in the local community through securities that finance local schools, highways, airports, hospitals, and water and sewer facilities throughout Hawai‘i.
- A key benefit for shareholders is that the fund seeks to provide income that is exempt from both State of Hawai‘i and Federal income taxes, while preserving capital.
- More information can be obtained at www.hawaiiantaxfreetrust.com.
Disclosure: Before investing in the Hawaiian Tax-Free Fund, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the fund prospectus. Prospectuses are available from your financial advisor or by visiting https://www.hawaiiantaxfreetrust.com.
Mutual fund investing involves risk, including potential loss of principal. Not FDIC insured, no bank guarantee, may lose value, not NCUA insured. Distributed by Foreside Fund Services LLC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240903420052/en/
Media Inquiries
Melissa Torres-Laing
Email: Melissa.Torres-Laing@boh.com
Phone: 808-694-8384
Mobile: 808-859-1703
Source: Bank of Hawai‘i
FAQ
What changes has Bank of Hawai'i (BOH) announced regarding the Hawaiian Tax-Free Trust?
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Who was the previous sponsor of the Hawaiian Tax-Free Trust before Bank of Hawai'i (BOH)?
