Two classes of a local money market fund have received first place awards from mutual fund ranking organisation Standard and Poor's Micropal.

The sterling class of the Butterfield Money Market Fund was awarded first place out of 50 funds for its performance over five years in the internationally marketed funds category in the sterling sector.

And the US dollar class of the fund received a first place award over 89 other funds for its performance over five years in the UK unit trusts and OEICs category in the US dollar sector.

The Bank of NT Butterfield funds are managed by the bank's 34-employee-strong subsidiary Butterfield Asset Management (BAM). "Standard and Poor's Micropal is an organisation that ranks offshore mutual funds. On an annual basis, for various categories, it gives awards to the best performing mutual funds,'' said BAM Vice President and Chief Investment Officer Ian Coulman.

"We have won awards for the US dollar and sterling class of the Butterfield Money Market Fund for first place over five years.'' The US dollar class received the same award last year while the sterling class finished third in the same category as this year but for performance over three years. Mr. Coulman noted: "This shows consistency for the US dollar class and a step up for the sterling class.'' And in 1997 BAM received the first place award for overall performance. "Winning awards for three years in a row demonstrates our consistency,'' said Mr. Coulman. "We are not just money market managers, we have a balanced fund which has made us number one over three years.'' And consistent performance beats out volatility in the realm of ranking mutual funds.

BAM manages a total of some US$3.7 billion in assets through nine Butterfield funds, the largest portion of which (US$1.6 billion) is in the US dollar class of money market fund. Net assets of the sterling fund at the end of 1999 were near 48 million.

BAM Associate Director for Portfolio Management Alistair Border said the fund began in 1988 but did not take off until 1994 when it received a AAAm rating (the highest) from Standard & Poor's. A marketing blitz followed and the fund leapt from US$500 million to US$1.6 billion.

The fund offers investors a high level of security, competitive money market rates and a very well structured product plus the ability to withdraw from it without a waiting period, said Mr. Border. He noted: "It's like a high yield savings account with instant access.'' The fund's strong showing comes down to the Island's geographical position which allows BAM to buy securities from Europe and the US, BAM's willingness to look at non traditional securities such as floating rate bonds and their low management fees.