Bank of Bermuda's Dublin fund administration unit could triple its Irish staff to 300 over the next two years because of growth in its hedge fund business, according to an Irish newspaper.

Company spokesman Brian Wilkinson said the bank could triple its headcount in Ireland as it seeks approval for a licence to set up a corporate banking business in Dublin.

The Dublin unit currently provides administration and custody services for $6 billion of assets in more than 100 funds and expects that to reach around $10 billion by the end of 2002, Mr. Wilkinson is reported as saying in the Irish Independent.

Mr. Wilkinson said the unit focuses on hedge funds, of which there is about $500 billion invested worldwide, according to Morgan Stanley Dean Witter's December report.

"The hedge industry is going to see enormous growth in the next few years as interest rates remain low and traditional products don't give the returns that investors are looking for," said Wilkinson.

Administrators charge a fee for looking after the accounting of funds, pricing and valuation, trade execution and settlement and other services.