The Island's largest bank, the Bank of Bermuda, has extended its reach into the Asian investment market with the opening of an office in Tokyo.

The bank announced yesterday that its global fund services (GFS) division had incorporated a wholly-owned subsidiary in Japan, and set up a branch office in Tokyo.

In a Press statement, the bank underscored that its fund services unit already had an established reputation as one of Asia's leading providers of fund administration, trust, custody, asset management and banking services.

Although the Tokyo branch represents the bank's first Japanese office, a press statement said its Asian presence meant it had already built solid relationships with Japanese clients: "The Bank has built relationships with Japanese clients over the past 20 years via its Asian network servicing their offshore fund requirements. As a result, it has developed specialist knowledge that can be utilised to meet the growing needs of the Japanese market, particularly in the alternative investment funds arena."

The Press statement added that the Tokyo branch would promote the fund administration services of other Bank of Bermuda Group offices to offshore investment vehicles that are promoted, distributed and/or managed by Japanese institutions.

Additionally, it will reportedly maintain and develop relationships with Japanese fund sponsors, managers and advisers.

In addition, the bank announced that the GFS Tokyo office would be headed by Hideki Hashiguchi, a Japanese national who has been based in Hong Kong with Bank of Bermuda for the last three years and who has been responsible for the development of the bank's Japanese GFS business.

Mr. Hashiguchi reportedly has more than 18 years experience with a number of key financial institutions in both Japan and Asia.

Mr. Hashiguchi said: "Japan's offshore investment funds industry looks set to grow substantially over the next decade and GFS is ideally positioned to capitalise on that growth.

"Japanese fund managers use offshore fund vehicles extensively in their investment strategies because they allow greater flexibility of operation than domestic structures.

"At the same time, the Employees Pension Fund Association has allowed state retirement schemes to invest in alternative investment products since September 2002. Pressure for returns from what is one of the world's most rapidly ageing populations further favours the alternative investment sector."

Paul Smith, head of Bank of Bermuda's Global Fund Services, said: "We are very excited about this new opportunity in Japan. This venture underlines the Bank's top-line strategy of geographical expansion via market development and market penetration leveraging our well-established relationships, knowledge and experience and, more importantly, underpinning our long term commitment to meeting clients' needs."