Capital G Investments Ltd. has expanded its business through an amalgamation with fellow Bermuda company Kast Investment Management Ltd.

Capital G Investments' total assets under management have swollen to more than $650 million and its client base to more than 400 as a result of the deal, the company announced yesterday.

Kast is an independent investment management company formed in 1991 by Anne Kast.

Joel Schaefer, president and CEO of Capital G Investments Ltd., said the amalgamation had taken six months to conclude.

"Kast is part of the Capital Group of Companies and will continue to operate under existing mandates as they have in the past.

"Kast will continue to manage the assets of their clients in accordance with the investment mandate as established. Capital G Investments will look to add value through our proprietary asset allocation process."

Mr. Schaefer added that the amalgamation was part of a long-term strategic plan to grow Capital G's investment business.

"Kast provides Capital G with a unique opportunity to become affiliated with a strong performing and well established investment business," he added.

Ms Kast, whose company has around $250 million in assets under management and more than 250 clients, said: "I've been in the investment business for more than 35 years and part of my business model included development of a succession plan to ensure long-term security and financial growth for my clients, who are deeply valuable to me both professionally and personally.

"After detailed research and much discussion I found a partner in Capital G whose mission, philosophies, values and practices are ideally suited to charter the organisation into the next decade."

Kast has relationships with internationally-recognised fund management companies such as GAM, Schroders, Barings, Fidelity and JP Morgan Fleming.

Ms Kast will remain with Capital G for at least three years with an opportunity of extension following the term in order to facilitate a seqamless transition, Mr. Schaefer said. She will have the support of the Capital G Private Banking and Investments team, which she will personally train in the same processes and procedures implemented under Kast Investment Management Ltd.

As a result of the merger, Kast and existing Capital G clients can look forward to access to a broader team of investment professionals, incorporation of a strategic investment process to enhance the existing process of Kast, direct access to Capital G Private Banking and general banking services, including credit, trust, and deposits, as well as a broader range of investment options.

KPMG Advisory, acting as lead merger and acquisition adviser for Kast Investment Management Ltd., provided full transaction advisory services.

Mike Morrison, managing director of KPMG Advisory said: "Capital G and Kast Investment Management Ltd. are well respected financial services providers in the Bermuda market. This transaction is a clear win for both of them and their existing clients. We wish them all success in the future."