Bank of Bermuda To Open West Coast Hedge Fund Office

by Leroy Baker, for Investors Offshore, New York

01 December 2003

Bank of Bermuda announced that its Global Fund Services division is expanding its global network of offices by opening an office in San Francisco, to be headed by Scott Epstein, currently Vice President and Senior Client Services Manager for Bank of Bermuda (New York) Limited. The new office will provide a complete range of fund administration services to the alternative investment industry on the West Coast.

Bank of Bermuda, which is in the throes of a takeover by HSBC, was founded in 1889 and is headquartered in Hamilton, Bermuda. It is a global financial services group, with a network spanning 15 of the world's key financial and offshore centres. The Bank's four client-focused business divisions - Global Fund Services, Private Client Services, Corporate Banking and Community Banking - provide a comprehensive range of fund administration, trust, custody, asset management and banking services to individuals and institutions alike.

Bank of Bermuda says it is strongly positioned as a specialist in niche markets, such as alternative investments and high net worth private clients with international wealth management needs. When it comes to hedge funds, the Bank is active in two areas:

• Global Fund Services: All areas of hedge fund services, administration and custody
• Fund of Hedge Funds: Two multi-strategy fund of hedge funds marketed under the Bank's All Points brand.

The Bank's Global Fund Services (GFS) division is focused on providing tailored service solutions to meet the complex needs of our clients, including hedge funds, fund of funds, private equity and emerging market funds. Service centres in Dublin, Luxembourg, New York, Bermuda and Hong Kong are strategically positioned to support the growth in the hedge fund industry and to satisfy the various regulatory and tax reporting requirements associated within these locations. Specialist offices in London, Guernsey, Isle of Man, Cayman and Singapore further support the Bank's overall product and service offerings.

The All Points "family" of mutual funds is a group of propriety mutual funds designed to meet the needs of every investor, whatever their risk profile or holdings. All Points Funds offer four asset classes and a full range of investment styles. Funds are managed by Bermuda International Investment Management Limited (BIIML), the investment arm of Bank of Bermuda. The All Points funds employ a multi-manager approach, using external investment managers on a "best of breed" basis.

The Bank of Bermuda has been investing with Hedge Funds on behalf of its clients, on a discretionary basis, since the mid-1990s. This process was formalised in November 1999 when the All Points Fund of Funds: Alternative Class was launched. This fund invests in a broad range of hedge fund strategies, of which approximately 50% is in Long/Short Equity Strategies and 50% is in Relative Value or Arbitrage Strategies.

In addition, the All Points Absolute Return Fund: Opportunity Class was launched in February 2002. This fund has the same investment strategy as the flagship fund mentioned, with the additional mandate to invest in hedge funds with a track record of less than 12 months, including day one start-ups. This fund aims to capture the higher performance generally achieved by newer and smaller hedge funds.

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