Proven Limited, in a bid to tighten efficiency and further scale its wealth management portfolio, this week indicated that it will be moving to close down operations for its Proven Wealth (Bermuda) Limited and Proven Wealth (BVI) Limited businesses.

The small financial advisory businesses in both territories, which the company said have never fully recovered from the COVID-19 pandemic and continue to be stunted by the impacts of global macro-economic challenges, are scheduled to commence winding-down processes in the next two months.

Following their closure, Proven said it will begin to place more focus on other territories in which it has significant operational presence such as Cayman Islands, St Lucia, Jamaica, and Barbados.

“We are currently implementing the necessary procedures to ensure an orderly winding down of these operations, which we expect to conclude within the next 60 days,” the entity said in a recent notice to the Jamaica Stock Exchange.

The Bermuda and BVI offices which operate out of region one of Proven’s wealth divsion, along with Cayman and Barbados, have been facing setbacks causing its net position to fall below expectation, despite a 40 per cent growth in revenue so far this year.

As the company however takes steps to refine its business model to support the desired growth, its management has said it remains dedicated to accelerating the division’s growth trajectory while improving its contribution to the overall group.

Proven’s Wealth division as a subsidiary of the larger Proven Group offers wealth management solutions and services, managing billions of dollars in investments for individual and corporate clients both regionally and internationally.

Group Chairman Rhory McNamara, in noting some challenges of the 2024 financial year on the Wealth pillar, expressed confidence that with strategic foresight and dedicated execution, the division is poised for sustained growth in the years ahead.

“The global macroeconomic environment continued to present challenges, particularly impacting our Wealth pillar. However, I am encouraged by the hard decisions we made regarding cost containment and the restructuring exercises undertaken during the financial year. These necessary measures are already bearing fruit, with the Wealth pillar now positioned to hold its own and move towards profitability as we anticipate a more favourable macro environment in the medium term,” he said in the annual report to shareholders.

Contributing over US$6.9 million to net interest income at the end of the financial year ended March 31, 2024, Proven Wealth saw some growth in its funds under management (FUM), particularly in its mutual fund and education savings products which helped to enhance fee income growth.

Group revenues for the 2023/24 FY totalled US$54.98 million backed by rebounded profits of US$13.6 million to which the banking and property divisions contributed significantly.

“We will continue to take advantage of marketing opportunities and upgrade our digital capabilities to better serve our clients and enhance operational efficiency, ensuring a seamless and personalised client experience. Furthermore, we will persist with refining our operating model to foster a more robust sales culture, expand our service offerings, and optimise our operational strategies. We are encouraged by our progress and remain focused on the sustained efforts needed to achieve our long-term goals,” the directors further said.