Butterfield Money Market Fund Euro Class SGM
Butterfield Money Market Fund Ltd. – EUR Class A announced that a Special General Meeting of the Fund will be held on Wednesday, 30th July, 2014 at 10:00 a.m.
In a letter to shareholders, the Fund stated:
Dear Butterfield Money Market Fund – Euro Class Shareholder,
As you may be aware, on June 5, 2014 the European Central Bank lowered its main Refinancing Rate to 0.15% and its Deposit Rate to -0.10%.
This unprecedented negative interest rate policy has caused market-based short-term interest rates to rapidly decline.
Eligible investments for inclusion in the Butterfield Money Market Fund, Euro Share Class (hereinafter referenced as the “Fund”) have also declined, with most offering negative yields.
The Fund was established as a Principal Stability Fund and is rated AAAm by Standard & Poor’s Fund Ratings service under their Principal Stability Fund rules and guidelines.
Without positive yields to invest in, the Fund will be unable to maintain its principal stability mandate and Butterfield has taken the decision not to subsidize the class in order to avoid principal loss for the shareholders.
Therefore, the Fund is faced with the choice of either requesting that S&P withdraw its rating and allowing the share price to decline in line with its negative yield, or requesting shareholder approval to close the share class.
The only choice that does not guarantee a daily loss for you, our investors, is a vote to wind down the Euro Share Class in an orderly fashion.
Butterfield did not take this decision lightly, as the Fund has been successfully operating for 20 years, but we feel it is our responsibility to advise shareholders on what we feel is the only course of action consistent with protection of their principal.
Please take the time to respond to the attached Resolution. On the form, you may vote to close the Share Class, which will trigger a full redemption once the requisite 75% majority is reached, or you may vote against the closure of the share class. Your ability to request a normal redemption is unchanged per the terms of the Prospectus.
Regards,
Michael Neff
Director, Butterfield Money Market Fund Limited
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The SGM of the Members of the Euro Class of the above-named Company will be held in The St. George’s Room, 5th Floor of The Bank of N.T. Butterfield & Son Ltd on Front Street, Hamilton on Wednesday, 30th July, 2014 at 10:00 a.m. Notices, including a Form of Proxy, have been mailed to shareholders.
