Apex Group Ltd, the Bermuda-based global financial services provider, has been appointed to provide fund administration and accounting services to US Gold Opportunity Fund LP.

Apex said USGO is a qualified opportunity fund that offers investors a simple, tax efficient, cost effective, liquid approach to investing in gold bullion.

USGO is structured as a qualified opportunity fund to provide its investors the potential tax benefits of opportunity zone legislation, while also promoting economic development in challenged communities, the company said.

Unlike other gold funds, which typically store gold overseas, USGO warehouses theirs in secure facilities located in opportunity zones in the United States, and its service providers are also based in opportunity zones.

Opportunity zones are an economic development tool that allows people to invest in distressed areas in the US. Taxpayers invest through qualified opportunity funds.

Apex said USGO also aims to provide institutional investors fee-based consulting services concerning their acquisition, ownership and disposition of physical gold bullion as well as comprehensive set of bespoke services to investment managers that intend to use gold bullion as collateral for acquiring futures contracts or other financial instruments.

Through their partnership with Apex, the company said USGO will benefit from the flexibility, responsiveness and expertise provided by Apex’s team and underpinned by a range of “best in class” technologies, a connected approach that supports all asset classes and regions through the secure transfer of data, across the entire value chain.

Apex said its fund administration services are the foundation of its single-source solution and ensure the delivery of timely, accurate and independent portfolio accounting, fund and investor reporting.

Chris Koons, head of Mutual Fund Services at Apex Group, said: “US Gold Opportunity Fund is truly unique in their opportunity zone-driven strategy for gold bullion investing and storage, and we’re excited to support them as they continue to innovate and grow.

“By leveraging our team’s experience and our single-source fund administration services and platform, USGO will be positioned to provide its clients with more precise, transparent information whilst streamlining their operations.”

Bob Enck, president and chief executive officer at US Gold Opportunity Fund, added: “We are excited to appoint Apex as our independent fund administrator not only because their Portland, ME, office sits within an opportunity zone, but also because it is clear that they share our commitment to making a social impact and support our vision to fuel economic development in economically challenged communities.

“We have been particularly impressed by the responsiveness of their client service model and expertise of the team. We look forward to working together and the resulting efficiencies which will benefit the fund as we continue to scale.”

Apex Group Ltd was established in Bermuda in 2003 by founder and chief executive officer Peter Hughes and has its head office on the island, as well as 50 offices and 5,000 employees worldwide upon the close of announced acquisitions.

It delivers an extensive range of services to asset managers, capital markets, private clients and family offices.

Last month, Apex announced the planned acquisition of British asset management services provider, Sanne Group Plc in a $2.07-billion (1.51-billion pound) deal.

Subject to the necessary approvals, the deal is expected to become effective in the first half of 2022.

US Gold Opportunity Fund said it is a qualified opportunity fund that operates solely out of opportunity zones within the United States and aims to actively engage in the purchase and sale, storage, transport, examination, and other activities related to managing physical gold bullion.