bought a majority stake in a local mutual fund distributor.

LOM now owns 85 percent of the outstanding stock of Bermuda Overseas Investment Company (BOIC), and will be handling and managing the day-to-day affairs of the company.

LOM is intent on making the company a fully integrated mutual fund arm of its own operation.

And LOM plans to market the group of funds within BOIC to both local and overseas investors.

BOIC represents the mutual funds of overseas investors GT Management and Jardine Fleming. The company plans to introduce further groups of mutual funds to both local and overseas clients.

The management of LOM, who had strong connections with GT Management, felt that this stable of funds would make BOIC "the perfect venture'' to acquire, said Mr. Scott Lines, LOM managing director.

While working for the Bank of Bermuda in London, Mr. Lines worked out of GT Management's offices for two years.

He said LOM has been seeking an opportunity to establish a vehicle that would broaden the portfolio of investments available to the island's investing community.

After recent management changes, Mr. Lines said BOIC's shareholders and directors felt they did not have the personnel in place to properly serve their existing clients on a day-to-day basis, despite good performance and prospects shown by BOIC.

The outstanding 15 percent stake in BOIC is held by the current owners, whose identity is undisclosed.