mutual funds, which have a combined total of $295 million invested in them.

Moves are being made to terminate the two funds which started the series 25 years ago -- The Buttress Equity Fund and The Buttress Income Fund.

Shareholders of the two funds are being asked to transfer their investment to two new funds, Buttress Equity Fund Ltd. and Buttress US$ Bond Fund Ltd., respectively.

In the event of fewer than 75 percent of shareholders -- the figure needed to press home the changes -- not agreeing to the scheme, the bank will still introduce the new funds but also keep the old ones.

But all the early indications from postal balloting of shareholders -- which closes today -- were that they were overwhelmingly in favour of the plan, said Mr. David Notman, director of Butterfield Management Company.

Of the returns so far of the 1,000 total shareholders in both mutuals, Mr.

Notman said he was not aware of a single vote against the motion.

He said that the main advantages of the new funds would be: A no-load policy, which would allow investors to move between the family of Buttress Funds, except Buttress Asia, without cost.

A change from `dual' pricing of the funds using bid and offer to a more up-to-date method using net asset value. This would save both buyers and sellers from paying often non-existent transaction costs, said Mr. Notman.

More effective management of each fund's assets using financial futures and options for hedging and financial management purposes. "We anticipate this will increase our ability to provide better returns without assuming greater risk,'' said Mr. Notman.

The new Equity Fund would also focus more on its primary objective of capital growth, which would mean investing in low or non-dividend paying securities.

It is not the initial intention for this fund to pay out any dividends.

The Buttress funds have come a long way since the first two were set up in 1967 and managed from London.

In 1979, the Bank of Butterfield decided to manage the Buttress Income Fund itself and by the mid-1980s had increased its worth from about $7 million to $60 million.

The Buttress Equity Fund was brought under local management in 1983 and has enjoyed similar success, said Mr. Notman.

Other funds have been added over the last ten years and the family now includes Buttress Capital Asset, Buttress Equity (Accumulation), Buttress Equity (Distribution), Buttress Income (Accumulation), Buttress Income (Distribution), Buttress Money Market, Buttress International Income, Buttress Capital Appreciation Bond, Buttress Global Futures and Buttress Asia.

The Buttress Asia Fund has been adjudged by at least one monitoring organisation to be the No. 1 performing fund in the Far East, said Mr. Notman.

Both the retiring Buttress Income and Equity funds have performed well for several years, he said.

The total returns on January 1, 1991, of $1,000 invested six years earlier in the Income and Equity funds were $2,107 and $2,289, respectively.

In a letter urging shareholders to agree to the proposals, Mr. Notman said: "Our desire is to create a fund which we can promote actively and easily.

"A growing fund increases our ability to take advantage of investment opportunities and provides economies of scale with respect to administrative expenses. Ultimately, the funds' gains are your gains.''