The Bank of Bermuda Ltd. has appointed J.P. Morgan Investment Management to provide investment advisory services for its bond funds, in the process leaving three employees jobless.

While a bank spokesman refused to divulge the names of the three, The Royal Gazette understands they are Michael Suter, Richard Stevens and Robert Stubbs.

"Three investment staff have been affected by the decision,'' spokesman Peter Smith said yesterday. `Their positions have been made redundant and we are in the process of talking to them about their future plans.'' Mr. Suter headed the bank's fixed income funds. Mr. Stubbs is the son of the late Cabinet minister Dr. John Stubbs.

Mr. Smith said there were "no current specific plans'' to outsource the running of the bank's other funds. The bank is planning to launch a new multi-manager fund soon, which will be the "flagship'' fund, he said.

The bank has slowly been downsizing its fund management group since 1995, when it employed 12 staff to run various funds. About three staff are now left running the remaining equity funds, The Royal Gazette understands. The Bermuda Bond Funds were established in 1980 and has assets of $375 million under management. The fund has four sub-classes of funds.

Wayne Chapman, who heads the bank's investment services, said the decision was made as part of the bank's strategy to outsource investment advisory functions. "J.P. Morgan Investment Management brings considerable experience and resources to our bond funds,'' he said. "We believe it will be able to strengthen the performance of the funds in the future with no increase in risk.'' He said the appointment is the only change to the structure of the management and administration of the fund.