Beware! This is an offshore broker! Your investment may be at risk.
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IIInvestments.com appears to offer an interesting investment alternative. However there are certain issues with this “entity”. First of all there is no legal entity mentioned as the potential investors’ counterpart. This automatically excludes the possibility of financial regulation. As you may know government agencies like SEC in the US, FCA in the United Kingdom regulate participants in financial markets. These regulators enforce certain rules, whose aim is to protect investors. IIInvestments is not registered with any such agency.
Who is behind it?
The website states, it is owned by the aptly named “III Global Group” (https://beta.companieshouse.gov.uk/company/10367090). A quick inquiry tells us the company was incorporated in September of 2016 which begs the obvious question: “who was operating it before that, since the track record goes back 2014?”. The inception capital is 1 GBP. This seems like a company, serving only to operate the website, which is not the legal counterpart for a potential investment.
IIInvestments’ board of directors appears to be full of unknown people and that is saying a lot in the digital age. With the self-proclaimed 27M EUR Assets Under Management, the company’s PR activities could have been a bit more effective. This is especially so if they are to fulfill their goal of increasing that amount to 100M EUR.
How it works?
The website also does not make it entirely clear how the investment scheme works. For example: what is the holding/redemption period of the investment (assuming it operates like a hedge fund)? On the other hand there are some hints of it being a PAMM scheme. There are slight traces of both in the description, but no precise definitions are given. This is a major issue, as it is obviously better to present the investment opportunity with the greatest amount of detail, especially if you are to attract high net worth individuals (who are more sophisticated investors).
That being said the fees are allegedly charged on a per trade basis. This can lead to potentially colossal fees, given the number of trades an automated system can perform. The entire page which should introduce their strategy looks like a basic description of how trading financial markets works. The only specific information is that they trade currencies and commodities. The combination of these factors leads us to believe the company might be running a PAMM system, in which they effectively mark-up every trade.
The fund’s returns are absolutely amazing. This is probably the most fishy part about the entire firm. A cumulative 600% per anum, for three consecutive years is unheard of. Legitimate hedge funds which consistently have double-digit percentage returns are often over-subscribed (Look at The Medallion Fund by Renaissance Technologies for instance – here is a Bloomberg article on them). Most traders and investors would be satisfied making 20% per year. If IIInvestments could consistently achieve the results they claim, they would have became legends in the world of finance by now.
The entire site feels like a marketing operation aimed at unsophisticated investors. The advertised offer seems appealing, until you take a close look at the details – no distinct legal entity, no regulation and astronomically high returns. We are afraid this is just another case where the old saying “If it sounds too good to be true, then it probably is.” should apply.