Located in one of the world's premier international business centres, Butterfield Fund Services (Bermuda) Limited (BFSL) provides a full range of accounting, corporate and shareholder services to hedge funds, mutual funds and offshore pension funds. BFSL is a wholly owned subsidiary of The Bank of N.T. Butterfield & Son Limited (Bank of Butterfield), which was incorporated in Bermuda in 1904.

About Bermuda

Bermuda has a regulatory framework that encourages growth in the financial services industry while ensuring the island's reputation for prudence, honesty and responsibility. Thousands of international companies and partnerships are registered here, including subsidiary operations of many Fortune 500 companies.

Bermuda's legal system is based on English Common Law augmented by local statutes. The local regulations relating to financial activities are designed to be straightforward and efficient, emphasising accountability and financial responsibility. The statutory framework requires licensed institutions to monitor the ultimate users of Bermuda's financial system through 'know your client' procedures and other informed involvement.

The Proceeds of Crime legislation imposes on BFSL responsibilities regarding identification of customers, record-keeping, internal reporting of suspected money laundering activities and ensuring employees are aware of the Proceeds of Crime legislation and the compliance procedures maintained by the business.

The Bermuda Monetary Authority (BMA) regulates mutual funds in accordance with published policies. The BMA routinely monitors the private sector to ensure high standards are maintained with regard to regulation, policy and administration, and imposes requirements for the establishment and operation of a mutual fund. Each mutual fund must normally be managed by a Bermuda-registered management company, which may delegate the investment advisory function outside Bermuda.

Butterfield Fund Services (Bermuda) Limited

With services that fulfil the complete range of fund establishment and fund administration requirements in Bermuda, BFSL provides the cost-effective advantages of establishing an offshore base without having a physical presence on the island.

BFSL, which was established in 1969 as Butterfield Corporate Services, changed its name to Butterfield Fund Services in 2002 to more accurately reflect the full range of accounting, corporate and shareholder services it provides to offshore hedge funds and mutual funds. Clients of BFSL also have access to a full range of trustee, administration and accounting services to Corporate Trusts.

The diverse group of clients served by BFSL include a number of the world's leading investment management groups with mainly institutional investors. Clients such as financial institutions, insurance companies, management companies and institutional investors use BFSL services to set up, launch and manage investment funds based in Bermuda.

BFSL markets its third party fund administration services under the global banner of Butterfield Fund Services, which operates in Bermuda, Cayman and Guernsey. Fund administration services in Hong Kong are offered through BFSL's affiliate Dexia Fund Services. Butterfield Fund Services are founding members of the Bermuda, Cayman Islands and Channel Islands Stock Exchanges.

The employees of BFSL understand fund managers' needs and are committed to providing comprehensive, attentive service. This capable team provides services to over 300 hedge and mutual funds with assets of over $34 billion and more than 60 international pension funds in Bermuda, with assets totalling over $1.2 billion.

Technology is a key driver in international fund services. In Bermuda BFSL uses NTAS software for registrar and transfer agency services and PROSPOR for multi-currency net asset valuation and production of fund accounts.

BFSL administers the award-winning Butterfield group of mutual funds for Butterfield Asset Management Limited with total assets of $4 billion. Butterfield Funds range in liquidity from the money market funds in US Dollars, Euros, Canadian Dollars and Sterling through the Liquid Reserve Fund, two Bond Funds, two International Balanced Funds, a Global Blue Chip Fund, the Bermuda Fund, to a 'fund of funds' product called Butterfield Select with equity, fixed income and alternative investment classes. (Restrictions may apply to investors from certain countries.)

Bank of Butterfield

The parent bank of BFSL, The Bank of N.T. Butterfield & Son Limited, has a solid reputation for strength, stability and quality of service. The Bank provides a full range of banking, trust and treasury services. Customers of BFSL often take advantage of:

• Custody services through Butterfield Trust (Bermuda) Limited.
• Banking and treasury services including wire transfers, deposit accounts, loans and foreign exchange facilities
• Ability to invest funds in the Butterfield Money Market Fund, an AAA rated daily dealing money market fund.

Bank of Butterfield and BFSL together provide a broad range of financial services to meet the needs of third party funds.

Further details of the Bank's range of services can be seen at www.bankofbutterfield.com or on Butterfield Asset Management's web site at www.bam.bm. Internet banking is provided for clients at www.butterfielddirect.com

For more information , contact Andrew R. Collins, Vice President and Managing Director at +1-441-299-3954 or andrewcollins@bntb.bm

Butterfield Fund Services "Bermuda" Limited
Rosebank Centre
11 Bermudiana Road
Pembroke, Bermuda
Telephone: (441) 299-3954
Fax: (441) 295-6759
E-mail: funds@bntb.bm

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