Hemisphere Management Ltd. and the Bank of Bermuda Ltd. have achieved distinction as two of the top six fund administrators in the offshore world according to a 1997 survey by Global Custodian magazine.

Hemisphere was rated as a "superior provider'' in Bermuda, while the Bank of Bermuda received the same distinction in Luxembourg and Hong Kong. Hemisphere also received top distinction in Bermuda in last year's survey. The six providers were picked by the magazine from among fund administrators based in 11 jurisdictions considered as offshore.

"Alongside Luxembourg, Bermuda remains the blue chip offshore financial centre,'' the magazine stated. "And, like Luxembourg, this level of sophistication is accompanied by expense.'' Stuart Drake, Vice President of fund administration at Hemisphere, said the company was responsible for 90 funds representing $5 billion in assets.

Hemisphere Management is part of the Hemisphere group of companies which were purchased by Bermuda-based Mutual Risk Management last year.

"Hemisphere's rating reflects the continued efforts of all our staff in being proactive in providing professional services to our clients,'' Mr. Drake said.

"We are pleased to be the sole recipient of the superior provider rating in Bermuda.'' The Bank of Bermuda also received top commendation in Bermuda last year.

Global Custodian stated that it had lost this distinction in the 1997 survey because the bank "seems to have switched gears somewhat, focusing more on its ambitions as a global custodian than in servicing offshore funds.'' Dave Shastri, Vice President of the Bank of Bermuda's corporate trust division, said he couldn`t understand the magazine's argument. Global custody -- the administration of clients' assets -- was by its nature related to fund administration. The bank has about 500 funds under its administration worldwide.

"We are very focused on fund administration,'' he said. "It's a misunderstanding.'' He said the bank's top rating as a fund administrator in Luxembourg, the largest offshore fund jurisdiction in the world, and in Hong Kong showed that it had a consistent approach in the sector.

"We are extremely competitive in these highly competitive jurisdictions,'' he said.

In its assessment of Bermuda the magazine cited the Island's new guidelines requiring independent directors for offshore funds as an example of a tightening of "already rigorous offshore rules.'' The magazine based its ratings on a survey of 102 international hedge fund managers in its survey of the Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Channel Islands, Curacao, Dublin, Hong Kong, Isle of Man, Luxembourg, and Toronto.

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