Euro Pacific Bank

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.

Euro Pacific Advisors’ Portfolio Commentary: US Market Correction

Published: January 3, 2019

euro pacific advisors fund manager portfolio 
commentary


Despite the recent sell off in the US, we continue to maintain our US exposure where we feel business will continue to be supported by deregulation, tax cuts and a pro-business tax reform.

The US has managed to shrug off a series of external shocks, political risks and enjoyed its fastest growth since 2005.

With confidence high, consumption and business investment have grown solidly despite a further correction in interest-sensitive residential investment.

Euro Pacific Advisors’ Portfolio Commentary: Q4 2017

euro pacific advisors fund manager portfolio commentary


Below is a quarterly update of Euro Pacific Bank’s mutual fund and separately managed account positioning, related market commentary, and outlook.

Market Overview

As unemployment normalizes in Europe there is scope for GDP to grow at levels above other economies like the US and the UK which are far ahead in the economic cycle. From a peak of over 12% in 2013, unemployment has fallen to 8.8%; as it continues to fall and domestic demand rises, GDP is likely to rise. On a relative basis, European equities still offer good opportunities, as do equities in Japan.

Equities

Equity markets continued to surpass expectations during the fourth quarter, as they have done for much of 2017. There was support from upgrades to GDP growth forecasts in Europe, Japan and Emerging Markets, although that has been coupled with cautious monetary normalization due to weak increases in Consumer Price inflation.

The earnings recession of 2015-16 in the US is over. NASDAQ earnings growth rebounded strongly in 2017 and Japan has benefited from a somewhat weaker Yen, a rebound in international trade and better domestic growth.

There is an opportunity for investing in global infrastructure. In general terms, with little upside pressure on interest rates, inflation-linked returns are likely to remain in demand.

Fixed Income

Structural changes in demographics, debt and technology are likely to keep inflation in check in the long-term. However, central banks are showing increasing concerns about asset price stability, hence the moves in the US to reverse Quantitative Easing and the move to taper it in Europe. With the market only pricing in two 25 basis point hikes in the US next year, there is potential for volatility in the bond market.

However, it should be noted that previous hikes have caused a flattening of the yield curve. With fixed income showing increasing levels of inverse correlation to equities, it remains a suitable and important asset class in the portfolio.

The Armageddon feared by many in the bond market has yet to materialize but risks remain.

Gold

Gold continues to provide diversification benefits. However, despite rallying during the summer when tensions between the US and North Korea were heightened, it has failed to progress further.

United States

Valuations are looking increasingly stretched in the US but the more extreme cases can be avoided by screening and targeting of sectors, or factors such as value.

Europe

After years of low/declining earnings in Europe, earnings per share are now growing on a broad front and equity markets have responded strongly. Our exposure to UK equities have also been rewarded by better earnings growth in 2017, and our bias for FTSE250 rather than focus on larger companies has been justified and beneficial.

Property in the UK, at least the listed REITs market, has seen a very significant sell-off in the wake of Brexit. Discounts to NAV of around 30-35%, with strong income support, may offer an opportunity, given that the sector has been de-risking in large part.

Emerging Markets

Emerging Market equities exited a five-year bear market at the end of 2015 as investors anticipated a trough in the earnings cycle. This was broadly confirmed in 2017. The portfolio maintains targeted exposure to the Indian equity market where the growth prospects from favorable demographics and structural reforms continue to attract investors.

There are long-term opportunities in emerging markets but some caution is warranted given the increasing popularity of the asset class. Additionally, emerging markets have benefited from a weak dollar in 2017 so any reversion in 2018 may put equities under pressure.

Euro Pacific Advisors’ Portfolio Commentary: Q3 2017

euro pacific advisors fund manager portfolio commentary


Below is a quarterly update of Euro Pacific Bank’s mutual fund and separately managed account positioning, related market commentary, and outlook.

Market Overview

Despite rising geopolitical risks, notably in North Korea, equity markets edged higher over the quarter. Fixed interest markets remained pressured as central banks signaled an easing of stimulus measures and guided towards higher interest rates. The pound strengthened against the dollar and yen, but marginally underperformed the euro.

As monetary support is withdrawn and interest rates move back to more normal levels, there is likely to be a degree of uncertainty in global markets. However, we note that this is likely to be a slow and gradual process and unlikely to cause major disruption. Question marks remain over the implementation of Brexit and with sterling having recovered to a 12 month high relative to the dollar we have begun removing some sterling hedges. Additionally, there are rising political risks in Europe, notably Spain and Germany. Despite these issues, robust, albeit unspectacular, global growth and solid earnings are likely to support valuations in the short term.

United States

Investors remained broadly positive about economic prospects as the US Federal Reserve finally announced an end to its Quantitative Easing program. By not reinvesting maturing bonds, it will gradually reduce its holdings in Treasuries and continue to move interest rates back to more normal levels over time.

Our targeted US exposure consisting of SPDR S&P Dividend ETF and Vanguard Russell 2000 ETF rose, outperforming the broader S&P 500 index.

Europe

The European Central Bank hinted that it would start to taper its own bond buying program and the Bank of England adopted a more hawkish attitude, suggesting that it would raise interest rates for the first time in a decade as soon as the fourth quarter of 2017. Investors were emboldened by this coordinated policy action from central banks in the belief that the global economy has now moved to a more secure position and requires less monetary support.

United Kingdom

With a rise of 2.8% on the quarter, our overweight exposure to the more domestically focused FTSE 250 Index again outperformed the FTSE 100 which was held back by sterling strength, rising only 0.8%. Geopolitical concerns peaked in September and we took the opportunity to reduce our tactical short exposure to the FTSE100.

Emerging Markets

Overseas returns were again offset by currency movements and we benefited by currency hedging some of our overseas exposure to equities as well as fixed income.

Fixed Income

Yields moved slightly higher (and therefore values lower) in both the US and the UK over the quarter as investors weighed up the potential for higher interest rates. However, the yield curve continued to flatten as shorter-dated yields moved higher than longer dated ones. The High Yield sector again outperformed with a gain of 1.5% on the quarter and is now starting to look fully-valued relative to both investment grade issues and emerging market debt.

Euro Pacific Advisors’ Portfolio Commentary: Q2 2017

euro pacific advisors fund manager portfolio commentary


Below is a quarterly update of Euro Pacific Bank’s mutual fund and separately managed account positioning, related market commentary, and outlook.

United States

US earnings season is positive and macroeconomic data indicating modest growth, but prospects for tax reform and fiscal boosts are diminishing and political risk is increasing.

United Kingdom

Recent data has softened concerns around the growth/inflation trade-off for the Bank of England. Potential of an imminent rate rise has faded. With growth forecasts weakening, we do not expect Bank of England tightening until Brexit risks have been reduced.

Europe

After a good run, European equities are becoming vulnerable to negative data surprises, although the euro looks set to run again after recent pullback.

World

Equity market volume globally yet to pick up, as risks remain.

Continued strong performance from our India shares in past two months but we are easing off this week and are looking to take profits on Tactical exposure replacing it with Japan exposure. We will retain India exposure in the Core component of the strategies.

Portfolio Actions

We will adjust the strategies to reflect our market views over the next two weeks. In summary, the main changes are:

  • An increase in European exposure
  • An increase in Japanese equities
  • A reduction in UK exposure
  • A reduction in Indian exposure

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.