Blog - September 27, 2022

Announcing the Verecan Global Equity Fund

What? Our funds are a grouping of investments that are much like a regular Mutual Fund but are exclusively available to our clients, not to the general public. This type of fund is sometimes referred to as a pool, or pooled fund. The investment shows up on your statement, just like an Exchange Traded Fund or Mutual Fund. The difference here is that the Verecan Global Equity Fund will consist of the individual investments currently held in your accounts; instead of seeing the individual Equity, Exchange Traded Funds and Mutual Funds as individual holdings, you will see one line item. Of course, we still control the investing decisions in the fund, just like we did with your accounts. 

Why? This will simplify statements and your tax reporting. Part of our service commitment has always been to keep things as simple as possible, only introducing complications if there is an advantage for you. This will also allow us to use investment strategies that were not possible or practical when every client account had to reflect the trade. When everything is done at the client account level there are instances when trades may not work in every account. We needed to consider the liquidity of every position we used, every position had to be of a minimum size, along with other considerations. 

Why Now? It has taken a lot of work behind the scenes to make this happen. First, we needed to ensure we could do it in a way that we felt would be in our clients’ best interests, as a fiduciary should. Then, we had to find vendors, get approvals, and have economies of scale to make this work. Now we have it. 

Cost? One of the reasons we chose to do this is we can provide the same portfolio as you hold today, but with a lower overall cost, over time. This is because when we make purchases as the Verecan Global Equity Fund they are viewed in the same way as institutional investors’ purchases are viewed, and very large positions get better pricing than the same value spread across multiple individual client accounts. We are not adding an additional fee to the Fund; there will be a small MER for expenses that will be offset by reductions in fees from some holdings. 

Reporting? We will have summary reporting available with the holdings and breakdowns of the Fund. In addition, we will continue to provide timely trade updates when we make significant changes to the Fund for those who have opted to receive our email updates. 

Transition? Over the next six weeks, we will be rolling the Verecan Global Equity Fund out to our discretionary accounts. As we do, we will be considering any legacy holdings in your accounts and, if applicable, any tax consequences. With the markets trading a bit lower right now, this may be a good time to make changes that could have been more tax impactful when markets were higher. 

As always, we are more than happy to spend time talking with you about this change. Reach out to us with any questions you have.  

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