Fund Review Butterfield Asset Management Limited

Bermuda Fund Quarter 4 2020

Objective Performance chart To achieve long-term capital growth and income 200 select by investing in a diversified portfolio of 190 assets. 180

170

160 Investment policy 150 140 To invest mainly in the equity securities of 130 companies incorporated in Bermuda or having a 120 substantial presence in Bermuda. 110 100

90 31/12/15 30/06/16 31/12/16 30/06/17 31/12/17 30/06/18 31/12/18 30/06/19 31/12/19 30/06/20 31/12/20

Investment process Fund A comprehensive analysis of the index companies is undertaken relative to their peers and the benchmark to ensure consistency. This select is supplemented with a qualitative analysis of Average annual compound returns domestic conditions and forecasts. Quarter 1 year 3 years 5 years 10 years Fund 16.69% -0.58% 11.94% 13.04% 10.10% Key facts as at 31 December 2020

Currency BMD Fund review Valuation Weekly The Fund returned 16.69% in Q4 2020. The Fund’s Net Assets stood at $14.85 million and a $0.15 Dealings Wednesday dividend was declared for shareholders, as of 31 Dec 2020. Front end fee None The fourth quarter saw P&C reinsurance stocks return positive results as US elections took place and Units available Accumulation the official approval of COVID-19 vaccinations came into effect. Assured Guaranty lead the way with Fiscal year end 30 June a 47% uplift on the back analyst upgrades and a positive outlook. Chubb Holdings staged a share Minimum investment BMD 1,000 recovery gaining 33% during the quarter. Everest and Axis also finished the period positively as firms came through the Atlantic hurricane season unscathed and the COVID-19 picture took shape with Total expense ratio 1.48% additional stimulus passed. Firms are now being pushed to be innovative in their risk solutions as we Size of fund (millions) BMD 14.85 enter into a new normal of a global pandemic. The events of 2020 have allowed re/insurance firms to NAV per share BMD 35.37 re-evaluate the marketplace and offer comprehensive coverage options for the changing world. The global reinsurance market has continued to adapt in the face of uncertainty and we are steadfast in our commitment to holding companies that are committed to producing positive shareholder value over the longer term.

In the domestic space, Ascendant Group Holdings officially closed on their merger with Algonquin Power and Utilities and the company ceased trading on the BSX. Approximately $367 Million was paid out to shareholders with about $200 million going into the Bermuda economy. ONE Communications will cease trading on the BSX on February 10, 2021 as their parent company has increased their stake. BFM has continued its share repurchase plan, in an effort to boost shareholder value. The Bermuda Government has announced a COVID-19 vaccination plan for local residents, in line with global

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THE BAHAMAS | BERMUDA | | | SWITZERLAND | Contact us responses to the pandemic. The economy’s outlook for 2021 will depend on a new normal regarding the pandemic and a balance from the Ministry of Finance for stimulus and cost cutting measures.

Butterfield The fund has increased its holdings of income-bearing securities in an effort to provide more stable Asset Management returns for shareholdings and a lowered risk profile. We remain committed to selecting Bermuda-based Limited investments that represent the local economy and its future prospects.

Tel: (441) 299 3817 Asset allocation select

International Equity 43.06% Domestic Equity 33.82% Income Securities 22.76% Cash 0.36%

Top 10 holdings

1 OF N.T. BUTTERFIELD&SON 11.8% select 2 BF&M LTD 10.7% 3 ARGUS GROUP HOLDINGS LTD 8.8% 4 CHUBB LTD 7.1% 5 ARCH CAPITAL GROUP LTD 4.7% 6 RENAISSANCERE HOLDINGS LTD 4.4% 7 GOVT OF BERMUDA 4.750% 02/15/29 SR:REGS 4.1% 8 GOVT OF BERMUDA 2.375% 08/20/30 SR:144A 3.5% 9 GOVT OF BERMUDA 2.375% 08/20/30 SR:REGS 3.5% 10 MARKEL CORP 3.5%

Benchmark composition Under review.

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Past performance is not indicative of future performance. This document is for information purposes only and does not constitute an offer or solicitation of products or services where prohibited by applicable law. Further, this document is not intended to provide specific investment, financial, accounting, legal or tax advice and no reliance should be placed on the information it provides. Butterfield Asset Management Limited and Butterfield Bank (Cayman) Limited are each wholly-owned subsidiaries of The Bank of N.T. Butterfield & Son Limited. Butterfield Asset Management Limited is licensed to conduct investment business by the Bermuda Monetary Authority. Registered office address: 65 Front Street, Hamilton HM12, Bermuda. Butterfield Bank (Cayman) Limited is licensed to conduct securities investment business by the Cayman Islands Monetary Authority. Registered office address: Butterfield Place, 12 Albert Panton Street, PO Box 705, Grand Cayman KY1-1107, Cayman Islands. © 2020, The Bank of N.T. Butterfield & Son Limited / REV.19.01.21