diversifying from traditional holdings in real estate, bank deposits and local shares into foreign holdings.

Investment managers representing mutual funds have particularly benefited from the move.

The change stems from a 1991 decision of the Bermuda Monetary Authority to broaden the right to hold the titles of foreign investments from local banks -- which had the exclusive right previously -- to all residents of Bermuda.

Prior to 1991, there were few choices. Investors had to use the banks for overseas investing, or they opted for certificates of deposits or real estate as safe opportunities.

But today, investors in growing numbers are looking for chances to substantially improve their return. There has been a boom in the mutual funds industry, with more Bermudians exploring their investment options.

Kast Investment Management Ltd. president Mrs. Anne Kast says that is not a surprising development.

"The securities business is exploding worldwide. It has been very under-served in Bermuda in the past. It was an opportunity waiting to be exploited,'' she said.

"Bermudians are very international people. It is only natural that they would eventually start looking globally (for investments).'' Mrs. Kast says it is not for the faint-hearted and it requires optimism and patience as the investment grows over longer, rather than shorter periods.

There is always a risk because prices go down as well as up.

Seven companies have emerged ready to help Bermudians invest in overseas markets, with a trend toward risk markets. Currently, the fastest growing region is Asia.

Kast Investment Management Ltd. has some $73 million under asset management.

Mrs. Kast says that there is more money in equities than bonds or cash.

"The beauty of mutual funds is that you can make money and reduce your risk with any number of funds,'' she said. "It's straightforward, clean and simple. There's nothing sexy about it.

"The problems start when people try to make things too interesting or complicated. The secret to investment portfolios is to keep it simple.

"The worst thing to do is to put together a portfolio that is interesting to talk about at a cocktail party.'' Mrs. Kast believes that it is a good time for Bermuda to relax exchange controls.

She said: "With low interest rates, low inflation, high Bermuda dollar liquidity and a stronger economy, now is the time to do it. It will strengthen the Island in the long run.The world is moving toward more and more open markets. We have to take steps now to meet the challenge.'' MOVING MONEY -- Kast Investment Management Ltd. president Mrs. Anne Kast.