international ratings agency for its mutual funds.

Bermuda's second largest bank announced yesterday it had been given the top performance award from Standard & Poor's Micropal for its wholly owned subsidiary, Butterfield Asset Management.

The bank, which has a market capitalisation of $485.9 million, has been awarded first place in the world for the five year performance of its Butterfield Money Market Fund, Sterling Class in the International Marketed Funds Survey category.

The bank, which last traded on the Bermuda Stock Exchange at $24.75, said it was the third consecutive year the Money Market Fund has received a first place ranking.

And Bank of Butterfield was also given the second place in the world for the one year performance of its whole family of in-house managed mutual funds in the Internationally Marketed Funds Survey -- Smaller Groups Category.

Butterfield Asset Management also received this award in 1997.

Butterfield Asset Management currently has more than $5 billion dollars under management.

"We are proud to have been recognised once again for the outstanding performance of the Money Market Fund, and particularly for the overall achievement of the entire family of internationally marketed funds, which included fixed income, balanced and equity classes,'' said senior vice president, Peter Wignall.

"The awards demonstrate to the world that we provide top-quality management skills and consistent performance across our whole rage of funds, due to the expertise of our qualified, motivated team of professionals.'' John Humphreys, who is the associate director and manager of the Money Market Fund Sterling Class, believes that several main factors contributed to the fund's success.

He said that these were correctly assessing macroeconomic conditions affecting the UK and Bank of England, carefully timing decisions to extend or shorten the life of the portfolio and purchasing Euro commercial paper and floating rate notes which consistently offered the best risk-adjusted returns.

In a press release about the Standard & Poor's awards, the bank said it had drawn on the expertise of its offices in Cayman, Guernsey, Hong Kong and the UK as well as the Bermuda operation to make the funds a success.

Butterfield Asset Management offers nine mutual funds which are managed in-house. These include the Money Market Fund (AAA rated by Standard & Poor's) and a variety of bond, equity and balanced funds.

Ian Coulman, chief investment officer of the fund, said: "We would like to win the award next year. We have won the overall award for four years in a row and will keep trying year after year to win it and will continue to strive to do well.'' The funds are all listed on the Bermuda Stock Exchange, and Bermuda Asset Management is licensed to conduct investment business by the Bermuda Monetary Authority. For further details go to www.bam.bm.