Each hedge fund manager that sets up in Bermuda is potentially worth around $5 million to the Gross Domestic Product and around ten jobs.That’s the view of Ernst & Young partner Jessel Mendes, who believes the Island has the potential to substantially increase its asset management industry and gives its economy a badly needed boost in the process.Mr Mendes chairs the Bermuda Asset Management Task Force, brought together by Government to explore new ways to boost the industry.“I would estimate there are 40 to 50 asset managers in Bermuda and the Task Force feels that is where our focus needs to be,” Mr Mendes said in an interview with The Royal Gazette.“If they are here they are likely to use Bermuda service providers and if that happens, we all win. So managers are the target market. It’s all about job creation.“We estimate that one manager who employs 10 people and is managing about $500 million contributes about $5 million to GDP.”To attract such job creators to Bermuda, the Island has to make sure that they not only feel wanted and welcome, but that they are confident that they are given the necessary time to achieve a return on investment.“We have to give them the concierge treatment and roll out the red carpet,” Mr Mendes said. “From the time they arrive to the time they leave, they’ve got to feel the love.“We have to make the effort to show them housing options, office space and school options, because that is what our competitors are doing. If you go to Singapore, everyone is on the same page. Halifax and Dublin have approached fund managers and made them feel like their business is wanted. We have to do the same.”Last week Mr Mendes was a moderator on a panel of Bermuda-based asset managers at the Ernst & Young Fifth Annual Global Hedge Fund Symposium in Hamilton, which attracted around 180 people, including fund managers and administrators, regulators, lawyers and directors.One of the talking points was Bermuda’s challenge in competing with lower cost rivals such as Canada, Malta, India and Ireland.The direct impact of such competition was graphically illustrated in September when Citi Hedge Fund Services relocated 105 jobs from its Bermuda operations to Canada and the US. Citi said the move was “to consolidate Citi’s support functions, reduce overall expenses and create operating efficiencies”.“It’s hard to compete, but the nice thing is that we have some excellent players providing fund administration and that leaves Bermuda in the game,” Mr Mendes said.He said it was inevitable that not all fund-related jobs would be based in Bermuda, because of the reality of its high cost relative to other locations. But the fact that some fund administrators remained here and had no plans to leave was encouraging.Mr Mendes said he was encouraged by the movement in immigration policy, exemplified by the offer of ten-year work permits to key individuals and job creators. Also, he said Business Development Minister Wayne Furbert and Attorney General Kim Wilson were enthusiastic about the possibilities for the asset management industry.Bermuda has a long-standing reputation as a high-quality, low-tax offshore financial centre, with the added appeal of proximity to the US. These were the key factors that had attracted fund managers, especially from the UK, Mr Mendes said.But to leverage these advantages, there needed to be improvements in several key areas, he added.l Speed to market: Work permit approvals and regulatory procedures have to be dealt with as effectively and efficiently as possible to enable asset managers to be up and running quickly. “One asset manager told us his experience setting up here was great, another had a very different experience,” Mr Mendes said. “We need to make it consistently good.”l Focused sales plan: “We should not be satisfied that people are aware of Bermuda, we want to see them using Bermuda,” Mr Mendes said. Getting people here and showing them the Island’s business infrastructure and living attractions is imperative. He gave the example of a fund manager who had planned to set up in another offshore location and had come to Bermuda for a wedding. When he was shown around the Island, he changed his mind and opted to come to Bermuda instead. Knowledge of why asset managers choose Bermuda and why they opt for other domiciles is important.l Residents’ understanding of the value of international business. More efforts are needed to make sure that people know the impact of international business to the local economy.The Task Force was brought together in February and presented a report to Cabinet in May that stressed the great potential of the asset management industry for growth and the need to allow the necessary talent to be imported to make it happen.