The Bermuda International Business Association is launching Bermuda as the first international Convergence centre at an industry briefing in London today.

Convergence is the blending of two or more previously separate financial or finance related products to create a new product or service.

Blending products to create a new entity is not an entirely new concept. For many years major life assurance companies have sold investment products as life assurance by applying a wrap around life policy to the investment. But as a mature and respected jurisdiction, Bermuda is able to offer a far more creative and progressive product blending that can reach into many areas of the marketplace.

Initial Convergence business in the Island is utilising Bermuda's expertise in the fields of alternative investments, hedge funds, e-commerce and risk transfer to develop and market original solutions for business requirements.

BIBA has set up a Convergence sub-committee to help with and oversee initiatives in this field. Its chairman is Mr. Johann Wong, president and founder of HedgeWorld.

Mr. Wong said, "Bermuda's reputation as the insurance laboratory to the world has bred an entrepeneurial spirit and aptitude to tackle risks in creative and pioneering ways. To complement this, Bermuda's highly sophisticated e-commerce and hedge fund communities are substantively established.

"Bermuda is a leading centre for alternative investments, particularly hedge funds, and provides a sophisticated infrastructure for investment and fund management and administration that is administered by the Bermuda Monetary Authority. The business environment gives companies the flexibility to react to market challenges without sacrificing quality and integrity,''he added.

The Bermuda Government works closely with its international business community to develop enabling laws and regulations that enhance the Island's business environment and keep it at the cutting edge of international competition.

This has drawn major reputable companies and institutions to the Island which have produced some of the sharpest business brains in international finance.

Ross Webber, BIBA's marketing manager said: "Forward thinking financial engineers have discovered the power of Bermuda allowing their business imaginations to be realised and prosper.

"Facilitative business partners, the tax and regulatory regime, and enablement services have helped make Bermuda a pristine jurisdiction with blue chip status where entrepeneurial talents and pioneering investment acumen can flourish. The Island has the capital, both financially and intellectually, to create business solutions that transcend the boundaries of the insurance, e-commerce and financial worlds.'' Together HedgeWorld and BIBA have created a website which details the business environment in Bermuda and shows case study examples of Convergence. The website is at www.bermudaconvergence.com and lists examples such as HedgeWorld.com; Invesdex/MarketPlus; BSX/MarketPlus; Max Re; Tremont Insurance; Principal Guarantee.

An example of Convergence is clearly demonstrated by Invesdex. Regulation and legislation in the US forced Invesdex, incorporated in May 1999, to seek another jurisdiction from which to market its new investment product, known as MarketPlus, to non-US investors.

By incorporating in Bermuda and forming strategic alliances with Centre Solutions, which runs the Island's e-Venture Centre, and the Bank of Butterfield, Invesdex has achieved this.

Licensed by the Ministry of Finance and regulated by the BMA, Invesdex can now exclusively market MarketPlus, which is an online indexing investment product offered as an investment contract. The product is targeted at active investment advisors, money managers and qualified self-directed individuals who prefer the flexibility of index-type investment to selecting individual stocks and securities.

The process is simplified by the Convergence of the three companies. A prospective online investor submits an application which then passes through approval procedure at both MarketPlus and the Bank of Butterfield.

Once approval is granted the investor writes investment funds to the bank and, via the website, implements their investment allocation. The investor can then view half-hourly market updates on the investment on the web.

The Bank of Butterfield monitors all database reports as registrar, custodian and administrator which ensures administrative control over the integrity of the system. The bank also wires redemption funds to the investor's pre- designated account.

Johann Wong Ross Webber BUSINESS BUC