The Buttress Bermuda Fund, the second local mutual fund, is set to be launched from March 9 to March 31 after receiving approval from the Bermuda Monetary Authority.

At a short presentation at the Royal Bermuda Yacht Club designed to whet the appetite of potential investors, the bank's investment team was comprised of bank chairman Sir David Gibbons, president Mr. Michael Collier, Mrs. Eva Korpela, manager, investment sales and administration, Mr. Preston Hutchings, director of Butterfield Asset Management and Mr. David Notman, director and manager of Portfolio Management.

Despite the recent decision to relax exchange controls, the bank is heavily promoting the fund to both the general public and its own staff.

Until now the only local mutual fund was the Bermuda Rock Fund, which was recently relaunched by First Bermuda Securities.

One reason why is that those who will not have substantial funds set aside for investment already, can have the bank deduct small portions from their pay cheque weekly to pay for shares in the new fund. Small investors can get in with just $500.

It is expected to be an attractive element, says Mr. Hutchings. "These types of investments have been out of the reach of average Bermudians. We aim to change that.'' The fund will invest in a range of shares and bonds. Investments will include the shares of local companies, together with investment in the debt instruments of local companies and the Bermuda Government and shareholders can expect to earn a return together with growth in the original investment, because the shares will be available for trade. That liquidity is another attraction.

The bank said the fund also means the costs of trading on the local Exchange will be reduced.

The fund will also boast reduced risks, because of its diversified nature allowing for good stock performances to off-set poorly performing stock. And the bank's best financial minds are working to maximise performance. That's how the bank's Chairman and President end up working for the shareholders.

Mrs. Korpela said: "One in four households in the United States have mutual funds in their investment portfolio. While we still can provide assistance in investing overseas, we felt that it was an important element of diversification that we could offer a Bermuda dollar fund.

"We've never really had it on a Bermuda dollar basis before. We are localising a popular concept. And, there is a slight twist. You can buy into the fund using other shares you might already have, instead of cash.'' Mr. Notman said: "Certain politicians were concerned that the relaxation of exchange controls in Bermuda would lead to bad investments being made overseas by some of our residents. Let's be honest, people will always make good and bad investments and restricting our choices doesn't limit our risk as much as it limits our profit opportunities.'' Mr. Notman also had a warning for those looking to invest overseas. "When making a direct investment overseas, particularly in the United States,you must be very careful that you do not expose yourself to any onerous tax, and/or estate problems.

" Remember, any assets you own direct in the United States come under US jurisdiction which may not be as friendly as Bermuda. On the other hand, when you invest through a local bank, you at least have the bank as a buffer between you and the foreign tax authorities.'' MUTUAL GOALS -- The Bank of Butterfield's investment team promotes the Buttress Bermuda Fund. From left, Mr. Preston Hutchings, Sir David Gibbons, Mrs. Eva Korpela and Mr. David Notman.