Bank of Bermuda (Isle of Man) Limited has acquired an offshore fund administration and management business owned by South African banking group Nedcor.

According to the South African newspaper Business Day, the HSBC-owned bank paid Nedcor ? 2.55 million for the sale of the entire share capital of BoE International Fund Services Limited and BoE International Fund Managers Limited in addition to a pre-sale dividend of ?1.375 million. This results in a net capital profit on sale of approximately ?1 million after costs.

Business Daily reports that the companies administer 50 funds with approximately ?1.2 billion of assets under administration and employs 17 staff. Nedcor says that the sale to the HSBC owned bank is ?part of its strategy of reviewing all non-core business within the group?.

Andrew Lodge, managing director of Nedcor?s asset management business in the Isle of Man told the newspaper: ?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 access to a growth business.?

Nedcor will continue to be a major client of BoE Fund Services business.

Bank of Bermuda was unable to respond to queries about the transaction by press time.