Launched in April 1995, Butterfield Liquid Reserve Fund is a short-term bond fund that invests in US Dollar denominated short-dated fixed and floating rate securities. With an AAf credit quality and S1 volatility rating, the Fund combines strong returns with a high level of safety.
"Liquid Reserve is the next step up on the risk spectrum from our popular Butterfield Money Market Fund. Due to its longer weighted average maturity, it will hold up much longer than shorter dated funds," said Ian Coulman, Chief Investment Officer, Butterfield Asset Management.
David Ware, the Senior Portfolio Manager who manages the Fund, commented, "The current slowing US economic environment with declining official short-term interest rates is positive for all Butterfield bond funds, including Butterfield Liquid Reserve. This Fund's fixed and floating coupon securities are marked to market, but the maximum average duration of the fund is limited to 12 months. As interest rates decline, the fixed coupon securities increase in price and add to the total return of the fund. This return is also enhanced by the natural spread tightening of securities to their US Government comparatives as the bonds get closer to maturity." This current market environment is therefore leading to strong inflows to the fund.
"The key to the performance of Butterfield Liquid Reserve Fund is the quality, type and timing of bonds purchased, all US$ denominated, and the percentage of fixed and floating rate notes given the level and outlook for interest rates," noted Mr. Ware.
Butterfield Liquid Reserve Fund trades weekly (on Wednesdays) and the minimum investment is USD $10,000. Its average annual compound returns for the period ending 31 March 2001 are 7.61% for one year, 5.93% for two years and 5.80% for three years.
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Butterfield Asset Management Limited is licensed to conduct investment business by the Bermuda Monetary Authority. Further details are available at the BAM web site: www.bam.bm. Past performance is not a guarantee of future results.
Note to Editors:
Bank of Butterfield Group is a vital community bank in both Bermuda and Cayman and a specialist offshore financial services company. A leader in delivering innovative banking services, Bank of Butterfield offers Bermuda's first Internet banking service; the only 95% mortgages in the local market; special loans for historically listed properties; a flat administration fee for consumer loans; and efficient remote teller technology at its Waterfront €˜Micro Branch.'
The Bank, established in 1858, offers a full range of banking, credit, investment, treasury, trust and custody services through its headquarters in Bermuda, as well as offices in Cayman, Guernsey, Hong Kong and the United Kingdom.
Bank of Butterfield is a publicly traded corporation with its shares listed on the Bermuda and Cayman Islands stock exchanges. The Bank's share price is published daily in the Royal Gazette and is also available on Bloomberg Financial Markets (symbol: NTB.BH) and The Bermuda Stock Exchange web site: www.bsx.com. Further details on the Bank can be obtained from its web site at: www.bankofbutterfield.com.