Population increase needed to boost the economy, says Bermuda investment firm
A major Bermuda investment company said the economy is unlikely to improve in the short term — but that there is light at the end of the tunnel.
The news came as Bermuda First Investment Company (BFIC) released its financial results for the third quarter of the year.
BFIC chairman J Michael Collier said: “The economy in Bermuda still remains difficult and as such the financial performance of our investments, whilst stabilising, we believe remain challenging in the short term.”
The company statement added: “However, the rate of decline has undoubtedly slowed and it may be that the economy is plateauing.
“If this is the case, we expect the company’s investments to report results in keeping with what has been reported over the last 12 months.
“We are pleased to note that the Government is making Bermuda a more attractive place to undertake business.”
But the statement said the Island needed a population boost through a larger international business sector to improve the prospects for Bermuda firms.
BFIC holds more than $42 million in shares in local companies, including more than 30 percent of the shares in telecommunications firm KeyTech and has a $12.2 million stake (10 percent of the shares) in energy company Ascendant Group, which owns Belco.
Over the quarter, BFIC increased its holding in KeyTech by buying more than a million shares, boosting its stake to a $26.2 million value.
The statement added that a bigger international sector would “have significant positive effects for the results of all our investments”.
The company also has shares in insurance firm Argus — around 2.5 percent of the shares, worth around $2.3 million — as well as small holdings in the Bank of Butterfield, investment firm West Hamilton Holdings, Bermuda Aviation Services and Watlington Waterworks.
BFIC reported profits of $0.4 million on revenue of $0.8 million for the third quarter, before an unrealised loss on its investments of around $1.1 million relating to movement in the value of the company’s investments between July and September.
