The Bank of Bermuda's unique array of Global Manager umbrella mutual funds is garnering increased attention worldwide and the bank is poised to market the funds in various jurisdictions from Canada to the Far East.

The 29 funds, valued three times daily, are linked to major equity and bond indices around the world and offer the investor not only access to world equity and bond markets but also the flexibility to move assets quickly to take advantage of changes in these markets.

By buying an indexed fund, the investor has achieved market representation in a very efficient way, the bank said.

These features make this umbrella fund "unique'', said Mr. Terry West, head of Bermuda Funds, one of the Bank of Bermuda's four businesses within the investment division.

Investors can use the various types of funds, bull, bear and geared, to take advantage of index movement or they can coast with Global Manager's index funds, the option to switch from one fund to another is always open, he said.

"The bear funds give the investor the ability to win when markets are going down,'' said Mr. West.

"Investors go to either side of the market,'' he said.

The funds are diverse geographically, cover varied asset classes as well as offer the investor flexibility, he said.

Index traded funds currently exist in some jurisdictions and many US pension funds use indexing.

Account manager with the investment division of the Bank of Bermuda Mr. Andrew Vaucrosson, said the umbrella fund allow investors to construct a portfolio implementing their own economic view and to change their position with just a phone call.

He called the Global Manager group of funds an "asset allocation tool box''.

"A primary unique feature of the tool box is that it allows investors to profit from both rising and falling markets,'' he said.

"One of the strategies was to slowly introduce the fund to bank clients and we are now looking to develop relationships internationally, in Latin America, Canada, Europe and the Pacific Rim, and in markets where regulation permits, to market the fund,'' he said.

Global Manager's 29 index tracking sub-funds are linked to five indices; FTSE 100, S&P 500, Nikkei 225, German DAX, Hong Kong Hang Seng, and three bond market indices; Salmon UK government bond, Lehman Treasury long bond and J.P.

Morgan German long bond equity and bond indices.

The umbrella fund includes; UK, USA, Japan, Germany and Hong Kong index, geared and bear funds as well as UK Gilt, US treasury and German Bund index and bear funds.

Other funds are; Pound Sterling, Deutschmark and Japanese Yen bull and bear, a gold index fund and a US dollar cash fund.

All 29 were recently listed on the Irish stock exchange.

The fund does not utilise emerging market indices because of volatility and lack of liquidity in those jurisdictions but in future this could became an area of interest.

The funds' net asset value (NAV) is about $6 million with holdings in futures contracts and cash.

A futures contract is an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a given future date.

Current minimum investor holding is $100,000 but smaller investors will be able to utilise Global Manager in future. The bank said it expects to launch three managed versions of Global Manager to be called Conservative, Active and Aggressive later this year.

Global Manager fees include a maximum five percent front end load, a one percent management fee and sliding scale switching fees.

The investment division launched Global Manager on September 30, 1994.

London-based L.C.F. Edmond de Rothschild Fund Management Ltd. is the investment advisor of Global Manager.

The bank chose Rothschild because of its experience in the use of futures and options to parallel indices.

Nomura in London has been appointed broker while Corporate Trust Services Bermuda (CTS), the Bank of Bermuda's corporate trust services division, will provide company management, shareholder services, custody and global administration.

Custody and registrar duties have been delegated to CTS Guernsey.