INVESCO Global Asset Management Ltd. (IGAM), a new company formed by Bermuda Asset Management (BAM) and international money manager INVESCO plc, will utilise the Island as a centre of operations, said INVESCO executive chairman Mr. Charles Brady.

"We chose Bermuda because of its quality image,'' he said. "We've had an interest in Bermuda for many years. Bermuda gives us a neutral base for our operations and allows us to generate new business. It is positioned at a crossroads between the US and the UK. It was the logical place to go to do business.'' Mr. Brady is one of the founding members of INVESCO.

Exempt company IGAM will utilise Bermuda as a distribution centre for its global asset allocation process which dispenses money management information to offices worldwide.

"We came here to create the central piece for our company and to form an alliance with Bermuda Asset Management,'' said Mr. Brady, who, with BAM president Mr. E.T. (Bob) Richards, hosted a luncheon yesterday for insurance and investment community representatives at The Club.

Mr. Richards, who started BAM in 1987, will be the general manager of the new company.

Premier the Hon. Sir John Swan was among those attending as well as a contingent of INVESCO executives and local investment representatives.

INVESCO, with 91 global partners, includes 32 insurance companies -- some in Bermuda -- among its worldwide clients, said Mr. Brady.

Mr. Brady and Mr. Richards yesterday described the alliance as a "perfect fit.'' "We were looking for international partner. We needed to be able to tap into the global resources of a company like INVESCO. It was surprising how they understood what Bermuda was all about,'' said Mr. Richards.

The association with INVESCO will expand our assets under administration from its existing level of $20 million, said Mr. Richards.

With INVESCO's $70 billion in assets under administration behind us and their international expertise, said Mr. Richards, the company will be to expand its money management business into Bermuda's multi-billion dollar insurance market.

"We do not know how much of the market share we will get but we are looking for a substantial share,'' he said.

Mr. Richards said he has recently approached some of the Island's insurance companies about becoming future clients.

With the affiliation with INVESCO, the difference is like "night and day,'' he said.

The alliance will also mean access to INVESCO's global resources.

The offices of IBAM, located at 12 Bermudiana Road, will have all INVESCO's technology at their fingertips.

Earlier this year, BAM and INVESCO announced they would form a new Bermuda company.

Mr. Richards said the alliance is an important initiative for Bermuda as it combines an independent world class investment organisation with the local knowledge of an established Bermudian company.

INVESCO will become a shareholder in BAM, which will continue to market its global equities product as well as a family of INVESCO fixed income products in Bermuda and internationally.

INVESCO is a public, global investment management company whose shares are traded on the London Stock Exchange while New York and Asian listings are anticipated soon.

It has principle offices in Atlanta, London and Hong Kong, with additional product centres in Boston, Dallas, Louisville, Paris and Tokyo, reported 1994 pre-tax profits rose 18 percent, earnings per share jumped 21 percent while dividend increased 31 percent.

BAM was founded by Mr. Richards in 1987. It provides asset management services to Bermuda-based institutions, corporations and private clients. Its primary area is pension fund asset management.

PARTNERS -- Bermuda Asset Management president Mr. E.T. (Bob) Richards, left, and INVESCO plc executive chairman Mr. Charles Brady are calling a new company INVESCO Global Asset Management Ltd. a "perfect fit''.