Global investment management company BlackRock has invested into a currency fund based in the British Virgin Islands. The Institutional FX Managed Account (FXR2231) which is managed by London based Gartner Wealth was set up in January 2016 in the British Virgin Islands due to it’s tax exempt status. It is understood that BlackRock has invested around £40 Million into the fund, though both companies have refused to comment on the deal. Gartner Wealth´s Institutional FX Managed Account has delivered a return of 165% since inception and holds almost £500 Million in funds under management. The fund capitalises on trading movements between principle currencies and operates exclusively for institutions. The fund uses leverage to magnify returns and operates in much the same way as their principal FX Managed Account which has seen a return of over 350% in the past seven years since trading commenced.
Gartner Wealth hold a number of hedge funds in the BVI. They was voted the best hedge fund in 2017 by London Hedge which provides analysis on the hedge fund industry. The company is in the process of registering a crypto managed fund which is another special investment vehicle to operate out of the BVI. Robert Buttleworth, an investment manager who works for Gartner Wealth has commented, “Crytocurrencies are here to stay. There are over 120 hedge funds that are now specializing in crypto’s. It is important that we as a company stay ahead of the curve and get involved now or we could miss the opportunity to establish ourselves in one of the most dynamic areas of the market. With our experience in currency trading we have the expertise to enter into the rapidly advancing market.”
It is reported that in excess of 25% of the worlds hedge funds operate out of the BVI, as the jurisdiction holds both political stability and transparent regulatory rules in addition to favorable tax advantages.