Butterfield Bank ETF Launches Successfully

by Carla Johnson, Investors Offshore.com

16 May 2007

Butterfield Bank has announced that its new product, Macro ETF Portfolios, has launched successfully and is now available to clients.

The bank said that investors in the product, introduced on 1st February 2007, have seen growth from the equity portion of 6.6% compared with a gain in the benchmark of 4.9%, representing absolute gains and outperformance of 1.7%.

Gareth Pulman, one of Butterfield Bank’s investment managers for the product, commented: “The strong performance seen from the ETF product since its launch demonstrates the benefits of gaining international exposure as well as investing in domestic US markets. At a time when the US market has underperformed its global peers, we have been able to beat the market by investing internationally.”

The Macro ETF Portfolios were introduced to meet client demand for a simple product focused on international market diversification without the need for stock selection. The investment managers for the product buy exchange-traded funds (ETFs) that track international market indices for clients. Working with other investment professionals throughout the Butterfield Bank group, they determine an active regional strategy for the product based on their views of the relative attractions of regional economies.

Head of Investment Services at Butterfield Bank, Steve Evans, explained: “The intention behind the ETF product is to bring an easy-to-understand client offering that provides an alternative for those clients who do not wish to invest in a traditional portfolio or fund. The product successfully leverages Butterfield Bank’s international resources, comprising 54 investment professionals across the group in five locations.”

As well as a pure equity Macro ETF Portfolio, the Bank also offers investors the opportunity to gain exposure to fixed income markets. Brad Bishop, Financial Planner at Butterfield Bank, commented: “Traditionally it has been difficult for small investors to take active positions in fixed income and international equity markets. This new product provides such exposure at a low cost. We offer a range of options for investors depending on their risk tolerance and return expectations. With a minimum investment of $50,000, I believe that this offers an attractive way for many investors to achieve diversified exposure to the market.”

Butterfield Bank also offers a range of mutual funds, including the Global Blue Chip Fund and International Balanced Fund. Both funds are actively managed by the Cayman-based investment team and have also seen a period of strong performance, currently trading at all-time highs.

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