topped more than $200 million.

David Ware, senior portfolio manager and manager of the Butterfield Liquid Reserve Fund, said: "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.'' The fund was launched in April, 1995, and is a short term bond fund investing in US dollar denominated short date fixed and floating securities. It has an AAf credit quality and S1 volatility rating from Standard and Poor's and combines strong returns with a high level of safety.

Mr. Ware said: "The current slowing US economic environment with declining official short term interest rates is positive for all Butterfield bond funds.

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.'' The fund trades weekly, on Wednesdays, and the minimum investment is US$10,000. Its average annual compound returns for the period ending March 31, 2001, are 7.61 percent for one year, 5.93 percent for two years and 5.80 percent for three years.