Two former HSBC wealth managers have set up their own company to offer personalised service to high net worth clients in Bermuda.

Granaway Wealth Management Ltd. was launched by Dominic Powell and Ryan Kromer, both Chartered Financial Analysts, in June. It has $21 million in assets under management and has focused on providing clients with a secure, high quality and reliable portfolio management service on a discretionary, consultancy or advisory basis.

In doing so, it is seeking to establish a long-term relationship with its investors through quality service, integrity, independence, continuity and transparency.

The pair, who had worked together at HSBC's Private Bank Investment Group for four years, said they had been closely watching the markets and saw an opportunity with some of the big financial institutions experiencing issues or being sold off.

They realised the value of offering an independent, continuous and reliable service run by Bermudians that did not have the high turnover rates and rigidity of a one size fits all type portfolios of their bigger competitors, allowing their clients to build a relationship with someone who understands their risk tolerance.

The duo are licensed with the Bermuda Monetary Authority to conduct investment business and have a proven track record.

Mr. Powell has 17 years of experience managing individual client portfolios and performing hedge fund analysis, working for the Bank of Bermuda, First Bermuda Securities, Schroders (Bermuda) Ltd., Tewksbury Capital Management Ltd. and HSBC Private Bank.

Mr. Kromer, who worked at Butterfield Asset Management and HSBC Private Bank, has 13 years experience in portfolio modelling and reporting, trading, managing bond, equity and alternative portfolios and customising portfolios to meet client needs.

During his time at HSBC, he rose to the position of senior portfolio manager overseeing the tactical positioning of the overall $1.1 billion asset management book.

The two of them were responsible for approximately $750 million in individual mandates for high net worth individuals, trusts and companies.

Focusing solely on portfolio management enables Granaway to leave the custody services to the custodian which best fits the client's needs. They concentrate on the performance of their investments and report on a quarterly basis, as well as through regular meetings or conference calls to discuss the portfolio.

"We would rather have a small clientelle to just focus on high end service and performance. The beauty of our model is the efficiency, as we have effectively outsourced the custody service and administration to the client's preferred custodian," Mr. Kromer said. "All we want to focus on is portfolio management and research."

Due to its low cost base and overheads, operating out of an office in the Boyle Building in Queen Street, Granaway says it can also offer its clients a competitive fee structure for discretionary global and fixed income portfolios, and portfolio advisory/consultancy service.

In the view of Mr. Powell and Mr. Kromer, the predominant use of mutual funds in discretionary portfolios by the larger institutions effectively adds layers of unnecessary fees, whereas Granaway builds portfolios utilising individual securities to minimise the overall cost structure on portfolios.

"The importance of this process is being able to weigh up the client requirements and risk tolerance," said Mr. Powell.

"The key is being able to manage the risk and provide a good return for the client."

The research provided by the various brokers and custodians allows them to draw from a range of different views, while also utilising the Bloomberg service for fundamental research and analysis.

The company, whose logo is a tall ship, is epitomised by its name which is synonymous with most Bermudians - Granaway Deep (the biggest safe harbour in Bermuda) - offering both security, flexibility and trust.

"Between the two of us, our experience is so broad that we could cater to almost anyone's needs," said Mr. Kromer.

Granaway Wealth Management Ltd. is located on the third floor of the Boyle Building and is open between Monday and Friday from 9 a.m. to 5 p.m.

For more information contact 296-1803 or email dpowell@granaway.bm or rkromer@granaway.bm