The Guernsey Financial Services Commission (GFSC) has granted
authorisation to The GB Gold Fund LP, an innovative fund that will
invest in gold bullion coins.
The GB Gold Fund LP will buy and hold one troy ounce 999.9 fine
gold Britannia coins that have a UK government assurance of weight
and quality, an unlimited mintage and are exempt from both
value-added tax (VAT) and UK capital gains taxation. Never
previously offered through a collective investment scheme, the
coins will be held segregated in offshore vault facilities and will
not be subject to any form of leverage, lending, shorting or
The fund is the brainchild of Robin Newbould, Managing Director
of precious metals experts BullionRock, which will act as both a
broker and sub-custodian of the GB Gold Fund.
Mr Newbould worked with a number of fund, tax and legal experts,
including Carey Olsen Partner Tom Carey, who advised on the
Guernsey legal and regulatory structure required for authorising
Mr Newbould said: "The GB Gold Fund has been created to
provide wealth and investment managers with the ability to offer
their clients easy access to the unique qualities of the gold
Britannia coin via a tax-efficient regulated collective investment
Lancaster Investment Services Limited will act as the investment
manager to the fund, which has been authorised as an open-ended
Class Q Scheme and Qualifying Investor Fund suitable for investment
by qualifying professional investors.
David Chan OBE, Managing Director of Lancaster Investment
Services, said: "There are many uncertainties in the world,
but an ounce of pure gold has been a store of value for millennia
and the physical redemption process of the fund should give
underlying investors absolute peace of mind. Ultimately, their
bullion coins, checked by three independent firms throughout the
life of the fund, will be held for them to collect if, as, and
when, they want."
As an open-ended limited partnership, the fund will offer a
weekly dealing facility with investors able to redeem in cash or in
specie, the latter option subject to them having an account open
with a suitable bullion services provider. The fund has also
appointed Butterfield Bank (Guernsey) Limited as custodian, Legis
Fund Services Limited as administrator and HowardKennedyFsi LLP as
UK legal adviser.
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