Offering investment products that are not directly correlated to the financial markets could be one of the keys to persuading investors to get their money back to work in these uncertain times.

That is the view of Fabian Schonenberg, of Tromino Financial Services Ltd., who administers funds ranging from one that invests in wine, others that invest in catastrophe risk, as well as the more conventional funds of hedge funds.

After the widespread loss of wealth in market plunges triggered by the collapse of US investment bank Lehman Brothers last September, investors have become more aware than ever of the risks involved in a globally interconnected financial system.

Thus the appeal of investments that are separate and distinct from the financial markets, and are barely affected by their vagaries, has grown.

Mr. Schonenberg is a Swiss national who worked as a civil engineer, an underwriter with PartnerRe, and as a fund administrator for a small Bermuda company, before he launched his own business in 2005. He is also the Swiss Honorary Consul in Bermuda.

Among Tromino's clients are banks and fund managers, based in Bermuda and elsewhere, and in just its fourth year in business, the company has funds under administration of around $350 million. The company has two other staff members, senior fund accountant Teresa Goddard and administration specialist Andrea Shakir.

Two of the funds Tromino administers from its Reid Street offices invest in a variety of catastrophe bonds and other insurance-linked securities.

"Cat bonds" effectively transfer risk from insurance companies to the capital markets. The insurance companies use them to bolster their capacity for paying out claims on events like hurricanes and earthquakes. Each particular cat bond is linked to a specific class of event, such as Florida windstorm, California earthquake or Japanese typhoon. Investors are offered an attractive rate of interest, but stand to lose all of their principal if an event of a specified loss magnitude occurs.

While such risk would be unacceptable to most individual investors, the funds administered by Tromino invest in a variety of cat bonds, thus making a complete wipeout highly unlikely.

"Investors would not typically invest in catastrophe risk unless they have some degree of affinity with that type of risk," Mr. Schonenberg said. "Bermuda is an insurance industry centre and there are many people here that understand these risks."

Each fund's risk level is pitched differently depending on the fund manager. A one-in-100-year event fund, for example would be tied to catastrophes deemed likely to happen once a century. A one-in-20-year cat bond fund would produce higher returns, but also carry higher risk.

Mr. Schonenberg said there was plenty of room for the cat bond market to grow. "Cat bonds play a minor role in the reinsurance industry now, making up one to two percent of the market," he said.

"If that figure doubles, then it would still not be meaningful for the industry, but it would be very meaningful for the cat bond market."

Tromino also administrates the Wine Investment Fund, which invests in cases of high-quality French wines, stores them in a warehouse in London and sells them off after five years, hopefully for a higher price.

Making the career change from underwriter to fund administrator had been challenging, Mr. Schonenberg said. But after learning on the job with a small Bermuda trust and investments company, he felt ready to start his own business.

"If I'd have known what the first three years were going to be like, I probably would not have done it," Mr. Schonenberg said. "It is difficult to establish yourself as a new fund administrator."

But now the father of two has built up a reputation and a growing list of clients, Mr. Schonenberg has no regrets and is relishing the prospect of growth in the future. It's the quality of service he gives, rather than quantity of assets under administration, which is his top priority.

"Becoming a trusted adviser is the ultimate goal," Mr. Schonenberg said. Tromino's website says the company aims to bridge the gap between the fund manager and administrator, and between the administrator and the investor.

Mr. Schonenberg's underwriting background, for example, gives him expert knowledge of the workings of cat bonds, that allows him to realise his stated aim of "operating literally as an extension of the investment manager's marketing and client relationship management team".

As one of the first people to earn the Bermuda Monetary Authority's fund administrator's licence under the Investment Act, he feel good about the Island's prospects despite the threats from an international clampdown on offshore financial centres.

"Bermuda is well positioned compared to many other jurisdictions because they have taken an open approach to the issue," Mr. Schonenberg said. "They have talked to the OECD and other authorities, they are aware of the potential dangers and they deal with it in a very open manner.

"We are confident that we can grow the business in Bermuda, particularly in the insurance-linked securities area, because this is where the expertise is."

For more information on Tromino Fund Services, go to the website www.tromino.com