Euro Pacific Bank

Managed Account Product Conversion

managed account conversion
 

Dear managed account clients,

Since the inception of Euro Pacific Bank, we’ve offered two managed products – managed accounts and managed funds – also known as ‘Separately Managed Accounts’, advised by Euro Pacific Advisors, and ‘Mutual Funds’, offered by Euro Pacific Funds.

Both products offer the same professional fund management team, the same strategies, and same holdings/securities.

In our ongoing efforts to provide a better user experience, our Managed Account product will be automatically converting into the managed Mutual Fund products, starting on March 1, 2020. As a result of this change, you will receive several benefits outlined below – primarily lower cost, improved access/viewing, and more control.

We are making this change for several reasons.

1. Improved access and viewing.

We’ve heard your feedback and many of you prefer to view your holdings directly inside your eBanking, as opposed to logging into a separate portal Client Portal.

Moving forward, after this product conversion, you will see your portfolio(s) directly and conveniently in your eBanking Dashboard under the “Mutual Fund” product category:

managed account conversion
 

Note: Viewing your Managed Account has required you to log into the Client Portal of either our previous brokerage custodian, Saxo Bank, as well as the new custodian, Interactive Brokers1, the primary place to view your assets was their separate Client Portals.

2. To lower cost.

By converting to Mutual Funds, we will be significantly reducing your managed account’s ongoing trading costs.

In other words, managed accounts are charged 2% per annum for management and standard brokerage commissions for each stock trade, while mutual funds are only charged 2%.

Through sharing of trading costs, the brokerage commissions are almost eliminated, resulting in improved long-term performance.

3. Better customer fit.

The Mutual Funds were originally designed for clients who wanted to be professionally managed, but had less than $100,000. Due to the higher operational and administrative costs, they were charged a 4.75% sales charge (front-end load) to buy, in addition to the 2% annual management fee.

However, the 4.75% sales charge has been permanently waived since February 25, 2019, due to major upgrades to our banking technology and the desire to be more competitive with ETFs.

What this means to you is that there are now very few differences between Managed Accounts and Mutual Funds, making the Funds a superior product for most clients. Again, the two products have the same management team, same strategies, and same holdings.

Your next steps

1. Questions or comments?

If you have any questions or comments, please schedule a call with our Sales & Trading team. We’re happy to elaborate on the explanation above.

2. We will process the conversion for you.

Starting March 1, 2020, we will start manually converting your Managed Accounts and you will see your assets in your eBanking dashboard shortly after.

Disclaimer

  • Please note that during the product conversion, the Managed Account holdings will be sold and the equivalent Fund(s) will be invested the same day by our Operations team.
  • The original Open Prices of each stock position will be reset, which means your Profit & Loss percentage will start over, from the conversion date. The account value will not be affected, so if you’d like to gauge P&L since inception, we can help you with the simple calculation.
  • Because positions are sold, it could mean a taxable event, based on your particular tax situation.
  • Because positions are sold, standard brokerage sell commissions will apply. All stock positions are currently with our custodian Interactive Brokers, so you can expect relatively low commissions.

3. Optional opt out

If there’s any reason you do not want to participate in this product conversion, we will have an “opt-out” procedure shortly.

We believe that this change will make your banking and investing easier, improve performance, and will allow us to provide you more investment options moving forward.

Regards,

Euro Pacific Advisors Management Team


1Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

Managed Account Migration Instructions

managed accounts

Updated: June 29, 2019

Overview

All Separately Managed Accounts (SMA) are currently being migrated to a new custodian (Interactive Brokers1), which requires your action. Please follow the instructions below to activate a Euro Pacific Trader account so we can continue with your managed account migration.

Why? What is Euro Pacific Trader?

When we opened your managed account, we first opened a standard Global TradeStation (GTS) brokerage account, and then signed a management agreement. In April, we decided to end our relationship with Saxo Bank, who offers the Global TradeStation brokerage account, and are now replacing them with Interactive Brokers1 and the new platform, called Euro Pacific Trader (EPT).

How will this affect me?

From your perspective, very little will change:

  • As usual, you will not have trading access to your managed account
  • However, we will need to send you a new View-Only portal for you to view your account at the end of July
  • Our new custodian (Interactive Brokers1), has much cheaper trading commissions, more products, and more exchanges, which will help us greatly in the management of your assets
  • You’ll keep the same portfolio structure, strategies, and fund managers (Euro Pacific Advisors)

Your next steps

1. Login to your eBanking

Read our recent secure message with the subject line IMPORTANT: Activate your new Euro Pacific Trader account now.


Haven’t received the secure message?

1. We are still sending out secure messages this week, so it’s possible we haven’t sent you one yet. If this is the case, please email [email protected] and request your login credentials.
2. We may also be trying to contact you to gather missing information or documentation on your account. Please check your recent secure messages for any unread mail.

2. Log into your EPT Client Portal

After logging into your EPT Client Portal for the first time, you will be asked to complete a short, electronic compliance form. This information will be used to process US Source Income every year, a mandatory regulatory requirement.


Note: Some clients may be required to fulfill outstanding document such as a W8 or CRS Form or may be requested additional documentation like a new, scanned proof of address, in order to keep our records up to date.

3. Check your account activation status

If you have logged into your Client Portal successfully and submitted your compliance form, the EPT account will be activated within 4-5 business days, unless more information or documentation is required. To check your Account Activation Status, simply log into your Client Portal again.

If your account is activated, you will arrive at your Client Portal home page successfully.

If you have any questions about where you are in the activation process after you have submitted the compliance form, please send us an eBanking secure message or email [email protected] and we will reply confirming the status of your Euro Pacific Trader account.

4. Migrating your stocks

Starting July 1st, equity positions for clients with activated Euro Pacific Trader accounts will be migrated. This will occur gradually over the period of July 1-19th.

Update: A majority of positions were successfully allocated by August 9th. Some positions have not been allocated due to settlement delays between Saxo Bank and Interactive Brokers, however these remaining positions will be allocated throughout August.

5. View your account

Please note that your existing managed account view-only Client Portal will be discontinued at the end of July and replaced with a new one. We will be issuing you a new view-only portal at the end of July. If you need any managed account statements in the meantime, please let us know.

Second, due to the migration, your eBanking dashboard’s External Products section will not reflect an accurate balance at this time, but we do intend to re-launch this feature in the near future.


1Disclaimers:
Euro Pacific Trader is offered by Euro Pacific Securities Inc. (“Euro Pacific Securities”), as an Introducing Broker to Interactive Brokers LLC. Interactive Brokers LLC is the custodian, technology provider, and clearing broker to all transactions executed through Euro Pacific Trader and thus the rates, conditions, and examples shown on this site may be subject to change and differ from what is displayed on Euro Pacific Trader. The rates, conditions, and examples on this site are provided on a best-efforts basis and should not be taken as final.

Euro Pacific Securities will not be held responsible for pricing and conditional discrepancies that may arise in the normal course of offering Euro Pacific Trader. Customers should always review and rely on the conditions that are shown directly on Euro Pacific Trader, and it is the responsibility of all customers to carefully review the conditions of every action before approving execution on Euro Pacific Trader.

Interactive Brokers LLC is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations. Interactive Brokers LLC does not endorse or recommend any introducing brokers, third-party financial advisors or hedge funds, including Euro Pacific Securities. Interactive Brokers LLC provides execution and clearing services to customers. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers LLC to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers LLC makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.
For more information regarding Interactive Brokers, please visit www.interactivebrokers.com.

What is the difference between a Mutual Fund and a Separately Managed Account?

Euro Pacific Bank mutual funds and separately managed accounts are both managed investment products. You can buy a mutual fund with a smaller upfront investment, a minimum of $2,500, whereas a separately managed account has a $100,000 minimum opening balance.

If you want a more personalized approach, a managed account is individually and separately managed. Unlike a mutual fund, all the transactions are made in your account, under your name. Managed account clients also receive a Client Portal, where they can watch their account being managed by Euro Pacific Bank in real time.

The same team, Euro Pacific Advisors, will be managing both the mutual funds and the separately managed accounts.