HSBC has acquired BoE's fund administration and management businesses in a move that strengthens its client base and capabilities on the Isle of Man.
Bank of Bermuda (Isle of Man) Limited, now owned by HSBC Holdings plc, has acquired the offshore fund administration and management business of BoE with the purchase of the entire share capital of BoE International Fund Services Limited and BoE International Fund Managers Limited from parent Nedcor.
Alan Smith, Global Head of Marketing and Strategy for HSBC's Alternative Fund Services added: "We have been looking at BoE's offshore fund administration and management business for some time and this deal further demonstrates HSBC's commitment to our core business and to the Isle of Man as a centre for fund administration."
The value of net assets acquired from BoE is GBP 500,000. BoE International Fund Services in the Isle of Man administers 50 funds with approximately GBP 1.2 billion of assets under administration and employs 17 staff.
Following the acquisition of The Bank of Bermuda Limited by HSBC in February this year, Bank of Bermuda's Global Fund Services division has become the Alternative Fund Services arm of HSBC Securities Services. The combined business of BoE and HSBC's Alternative Fund Services in the Isle of Man will be the largest fund administrator on the Island.
Caroline Cornish, Head of HSBC Securities Services in the Isle of Man comments: "Working closely with BoE's parent, Nedcor Wealth Management, and HSBC we were able to complete the purchase very swiftly. We are experiencing rapid expansion in our business worldwide and securing an established fund administration team together with a quality client base will contribute significantly to our continued success."
Paul Smith, Global Head of HSBC's Alternative Fund Services, said: "We have a strong team in the Isle of Man and a good client base. I am delighted that the BoE acquisition will add strength to both. One of the great attractions of this deal was the opportunity to acquire the high quality of staff that BoE bring to us. Being part of one of the world's largest financial institutions enables us to maximise the services offered by other parts of the HSBC group to the benefit of all our clients."
Commenting on the sale, Andrew Lodge, Managing Director of Nedcor's asset management business in the Isle of Man said: "To be successful in the fund services business requires a global presence and state-of-the-art technology. Following Nedcor's acquisition of BoE, it was clear that BoE Fund Services was not a core offering of our International Wealth Management Division and a sale would be the preferred option to provide clients and staff with the correct environment in a growing business."
Lodge added: "Nedcor continues to have a strong presence in the Isle of Man spanning fund management through NIB International Asset Management Limited, an offshore fund supermarket, Nedcor International Fund Xchange, and private banking through Gerrard Private Bank. We will continue to be a major client of the BoE Fund Services business and we wish it every success under its