For the last 15 years, Kast Investment Management Ltd. has set itself apart by offering clients a unique product choice of quality, personalised service in the realm of mutual fund investments.

“We are an independent financial intermediary,” says Anne Kast, president and founder of the firm.

In layman’s terms that means: “We are free to choose investment products from around the world. We invest in and retain the best investment products according to our philosophies. Investors come to us and we bring them investment products. We deal 100 percent in offshore mutual funds.”

When Ms Kast first developed the company at the urging of a friend, after working for the Bank of Bermuda for 17 years, she developed five tenets of investing as the basis of the business (See story on Page 44).

“The philosophy that was applied to launching the company still applies today,” she explains. “We’ve remained very consistent, although our approach to investing has been fine-tuned. These investment principles have held true.”

Depending completely on referrals, Kast Investment has developed steadily over the years.

“Our growth of assets under management has grown from zero to $250 million,” Ms Kast says. That investment is divided by about 400 clients, which include Bermudians and the agents of non-Bermudians.

“Clients have come and stayed with us because their portfolios have performed,” she says.

According to Colin Furr, vice president, operations, part of the reason for the high level of client commitment is Kast’s dedication to service: “Our performance is delivered with personal, quality service. We are not volume driven.”

“You are going to deal with experience here,” Ms Kast adds. Together, the pair offer 70 years of experience, mostly at the senior level.

Mr. Furr points to three main reasons for the company’s continued success. The first is that they specialise in one area — offshore mutual funds — unlike larger local companies that offer a variety of services. Secondly, they do it with personalised service.

“Clients actually talk to Anne or I,” he says. “Finally, we are readily available with a high-level quality product at a lower-level cost.”

“We are very transparent here,” Ms Kast adds. “We can authenticate our experience.”

In addition to Ms Kast and Mr. Furr, the company consists of senior administrator Barbara Kolts, and investment administrator Janet Gerber, who is temporarily filling the post.

“It helps us to remain cost-efficient for our customer,” says Ms Kast. “Because it is a small company, there is a lot of overlap, but at the end of the day, we do have certain individual responsibilities.”

Kast’s flagship product, according to Ms Kast, is what they term a discretionary portfolio. Every portfolio developed for clients is created to meet their specific needs and goals, weighing in their risk tolerance, personal objectives and the timeline they have for investing.

“We are not market timers. We actively manage each portfolio,” Ms Kast says.

Each new client is asked to complete a questionnaire to assess their objectives. Those who are more conservative in their investment desires tend to have more bonds and hedge funds, while those desiring more aggressive growth will hold a higher percentage of equities.

The firm also strongly believes that portfolios need to be diversified by selecting investments from a variety of asset classes, choosing from different fund managers and also selecting investment products from different parts of the world.

Kast generally requires a minimum investment of $25,000.

“It becomes cost-inefficient for the client, otherwise,” says Mr. Furr.

However, the level of service that Kast can offer at the retail level has greatly increased, allowing individual investors some of the same services as corporate investors. This is directly related to improvements in technology, interest rates, pensions, contribution plans and competition, Ms Kast asserts.

As for the future, Ms Kast predicts that the investment company will continue to grow: “We do a business plan every year, since the time I conceived of this company to this day,” she says.

“That plan focuses on improving service, decreasing costs and maintaining stability, all while developing conservative growth.

“There is a lot of risk in this business. Why add business risk on top? It is because we are a conservative company that clients keep coming back.”

From zero to $250 million