Bahamas Mutual Fund Sector Expanding

by Carla Johnson, Investors Offshore.com

29 November 2001

According to Andrew Dipkin from the Bahamas Association of Mutual Fund Administrators, the Island's mutual fund sector is continuing to expand and has a 'very bright future.'

During a press conference with the Bahamas Financial Services Board (BFSB) Mr Dipkin said there are currently 75 licensed mutual fund administrators in the Bahamas, most of which operate under a Bank and Trust License. 'The legislature has taken steps to ensure credibility and there is a more concentrated effort to promote the Bahamas in all areas of financial services, especially by the Bahamas Financial Services Board,' he said.

'The actual number of mutual funds that are administrated in the Bahamas is somewhere in the neighbourhood of 725 with assets of more than $94 billion and those figures are growing,' said Mr Dipkin who points to an efficient registration system, a strong regulatory environment and a 'good quality work ethic' in the sector as contributors to the industry growth.

'In terms of assets size Templeton is one of the largest and most well known fund groups. The difference between Templeton and some of the other independent fund administrators is Templeton only does Templeton funds whereas the other administrative companies service independent investment managers throughout the world,' claimed Mr Dipkin.

He continued: 'We have a very open direct line of communication with the Securities Commission of The Bahamas to discuss regulatory issues either from a guidance standpoint or an input standpoint. Also, an important goal of the association is to promote the mutual fund industry locally and globally by sponsoring and attending seminars/conferences and training courses.'

Mr Dipkin also confirmed that BAMFA is preparing suggestions for amendments to the Mutual Funds Act. 'We are sitting amongst ourselves and discussing some of the changes that we would like to see and we will basically wait to hear from the Securities Commission to see what they have to say,' he said.

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