DPM Expands Presence to the Bahamas; Longtime Bahamas Financier Matthew F. Gibbons To Assist in Establishing New Offshore Office.

Business Editors

Derivatives Portfolio Management LLC (DPM), with $10 billion under administration, announced today it is opening an office in Nassau, Bahamas.

DPM services the growing hedge fund management market with a suite of services that include investment accounting, financial reporting, multiple broker and trader reconciliation, risk transparency and fund administration services.

Assisting DPM in setting up its office in the Bahamas will be Matthew F. Gibbons, a consultant to the financial services industry and a former director, president and CEO of Deltec International S.A., an international merchant bank and asset management group headquartered in the Bahamas.

Recent changes in the Bahamas banking regulatory system has made it an attractive money center to investors, and DPM's deep understanding of the hedge and mutual fund market has made the firm's services increasingly popular to an international clientele of investors in the alternative asset market.

"The opening of our Bahamas office is in direct response to client demand," says Robert M. Aaron, DPM Chairman and CEO. "This new location will allow us to administer investor accounts in the Bahamas. Since DPM already has an office in the Cayman Islands, this rounds out our Caribbean presence."

The naming of Gibbons to assist DPM is a key part of its strategy in entering the Bahamas market. Gibbons has lived and worked in the Bahamas for over two decades.

"Matt has a unique understanding both of what we do and what Bahamian banks and trust companies are looking for," says Aaron. "His experience will enable us to service the Bahamanian client base in the way they want to be serviced, as opposed to how companies have tried to service them in the past."

Between 1974 and 1997, Gibbons served in various roles at Deltec, which managed $1.5 billion for an international clientele in emerging market debt securities, U.S. high yield bonds and equities. He also served as chairman and director of The Deltec Banking Corporation Limited and Deltec Panamerica Trust Company Limited, registered bank and trust companies regulated by The Central Bank of the Bahamas. Prior to that, he spent five years as chief financial officer of Deltec Asset Management Corporation, a U.S. registered investment advisor and broker/dealer.

"DPM offers investors a precise solution that has been lacking in the industry for some 20 years," Gibbons says. "The ability to analyze key investment data--including net asset values--on a daily rather than monthly basis--is a service provider's goal today. DPM has introduced a new standard to the marketplace, with the combination of its database software and leading edge technology on a Web delivery platform. All that a fund administrator needs is a Web browser."

According to Aaron, the alternative asset market has grown rapidly during the past three years with approximately 7,000 active funds now managing in excess of $500 billion--a number that is increasing 20% a year. This enormous growth has created a tremendous need for flexible, Web-based fund administration services that compress reporting times and expand disclosures.

"With DPM, hedge fund managers benefit from a comprehensive approach, which focuses on streamlining the administration process in order to provide greater transparency for investors," says Gibbons.

"DPM can act as a third-party verifier because it works for the fund, rather than the broker, and evaluations are made independent of the fund manager. "It offers daily checks and balances which give shareholders comfort," Gibbons says.

"In today's financial markets, accurate reporting is more vital than ever. Sophisticated investors are demanding the level of transparency that our platform delivers," says Aaron. "With the emergence and our adoption of .Net, DPM is ideally positioned to maintain our leadership position and build market share in an expanding market. We're pleased to be expanding our reach into the Bahamas."

Gibbons, born in Scotland, has lived in the Bahamas since 1973. He resides with his wife in Lyford Cay. He is also active in many Bahamas-based philanthropic organizations, including the Bahamas Youth Trust, a charity he founded dedicated to educating at-risk youth.

About DPM

DPM, headquartered in Somerset, New Jersey, offers a portfolio of integrated services that include: investment accounting, financial reporting, multiple broker and trader reconciliation, risk transparency and fund administration services for approximately $10 billion of assets. Established in 1993 by recognized investment industry professionals, DPM provides its services to fund managers, asset allocators, institutional investors, and proprietary traders whose portfolios cover almost all asset classes and instruments traded worldwide. DPM's management team, complemented by a large staff, provides the resources and expertise of a full service organization.

Banks and other institutions that act as trading manager rely on DPM to serve as commodity pool operator (CPO) for administrative functions.