Independence referendum and the appearance of general confusion in Government has led to a lack of confidence in Bermuda investments, shareholders of the Buttress Bermuda Fund were told this week by company president, Sir David Gibbons.

But the fund's advisor, Butterfield Asset Management Ltd., is not expecting any significant improvements for the economy in 1996-97, but rather anticipates that the tourism malaise will continue as a result of increased competition in the travel market.

Meanwhile, domestic demand is expected to remain weak and could have a negative impact on the Bermuda marketplace.

The fund has again reported a drop in the net asset value per share, down from $9.93 to $9.65, exclusive of dividends totaling 32 cents a share, for the year to June 30.

This brought total return to 0.4 percent. This compares to a return, exclusive of dividends, of -5.3 percent on the Bermuda Stock Exchange Index. The bank's own savings accounts pays more at three percent.

The total value of the redemptions of common shares more than doubled year over year from $730,618 for the 12 months to June 1995 to $1,558,701 to June 1996 when 161,332 shares were redeemed.

But the issue of common shares went the other way, with 123,429 shares worth $1.2 million issued this year compared to shares valued at $2,938,221 a year before.

Almost 40,000 more shares were redeemed this year than were issued.