Bank of Bermuda's former local fund-administration business in Guernsey grew 35 percent in the last year under ownership of the global financial services giant HSBC.

Managing director Robin Fuller told the Guernsey press this week that the company, now known as Alternative Fund Services (AFS) saw its $16 billion funds under management grow to $25 billion during the year. AFS also saw its staff roster grow from 50 to 85 during the year and is now recruiting more employees.

Mr. Fuller said the reason for such growth " has been a combination of things."

"Some of our fund managers are very successful in terms of investment performance and we were active in terms of launching new clients," he said adding however that AFS was not the only company to see success last year in Guernsey. Total investment funds under management and administration in the island rose by 8.6 percent over the third quarter of 2004.