Fortis Fund Services (Bahamas) Ltd. will close its Bahamian mutual fund administration business because of declining performance, the latest financial service to wrap up business here.
That comes a month after Scotiatrust Bahamas officially acquired the business of MeesPierson (Bahamas), a private banking company that is part of Fortis.
No date has been set for the closing, but in a statement over the weekend, Fortis said "the cessation of its fund services is due to the fact that the company was unable to maintain a level of sustainable financial performance in the prevailing business environment."
Fortis Fund Services (Bahamas) Ltd. locally no longer fits with the strategy of Prime Fund Solutions, the company said.
Fortis Bank has concentrated all fund-administration in Prime Fund Solutions, of which Fortis Fund Services (Bahamas) Ltd. is part.
Fortis plans to transfer the administration of as many as possible of its clients to Fortis Fund Services (Cayman) Ltd., which is also part of Prime Fund Solutions.
"Whilst the cessation of our business is regrettable, we are seeking to ensure that we are able to offer our clients a transfer of their mutual funds administration to our sister Fortis company in the Cayman Islands, where our clients can continue to receive high standards of service and commitment," the company said.
"The fact that Fortis Fund Services (Cayman) Ltd. has computerised and other operating systems similar to ours means that the transfer will have minimal disruption and uncertainty for our clients (and their investors), which is a matter of great importance to our clients and to us."
The mutual fund administration of other Fortis Fund Services companies, including Ireland, Curacao, the Isle of Man and Hong Kong, is unaffected by these changes, the company said.
Fortis Fund Services (Bahamas) Limited is part of Fortis Bank and is incorporated in, and operating from, The Bahamas. It currently employs 49 people.
Over the past two years, about 300-350 jobs are estimated to have been lost of the 4,000+ in the financial sector, because of closings or cutbacks at the Royal Bank of Scotland, Suisse Security Bank, and Lloyds Bank PLC.
With the average salary in the financial sector about $40,000, this translates in lost salaries of approximately $12 million.
Fortis Bank is part of Fortis, an international financial services provider active in the fields of insurance, banking and investment, with a capitalisation of EUR 22 billion and about 66,000 employees. It ranks in the top 20 European financial institutions. At Dec. 31, Fortis had total assets of EUR 486 billion.
By Lindsay Thompson, The Nassau Guardian
