We only accept corporations as members. It can be a sole proprietorship, a corporation, an LLC, a limited partnership or something else. Most jurisdictions offer simplified structures for individuals.
The one-time membership fee is $5000.
Members must adhere to client setup requirements of third parties. Vanilla Equity uses the services of Snaell Capital and Interactive Brokers.
As a member you will have access to a sub-account of Snaell Capital on the trading platform of Interactive Brokers. Once the representative for your company has been setup as a user on the Interactive Brokers platform, $50 000 will be transferred from the main account of Snaell Capital to the assigned sub-account. Snaell Capital is contracting your company to manage a part of the Snaell Capital portfolio.
Trading Restrictions
As the name suggests, Vanilla Equity, is specifically designed for the simple, plain and straight forward stock trader. Contrary to a fund manager, you are allowed to be up to 100% in cash at any time. The restrictions are a substantial part of the applied risk management and are necessary as no exams or qualifications are required from you.
Performance and Pay-Out
The performance pay-out is based on the portfolio value at the end of each quarter (end of March, June, September and December). The start date is rounded upwards (if you start in February, the first pay out will be calculated end of June). The profit split is 50/50 (Snaell Capital will charge a minimum of $1000 at every pay-out).
Calculation of the pay-out: $(Portfolio Value – 50 000)/2.
The payment is issued within 10 business days to the IBAN account number of your company. A payment surcharge of $30 is applied. Interactive Brokers may apply fees which are subtracted from the portfolio and the pay-outs.
Example 1: Portfolio value is $65 000 at the end of the quarter. You will be paid $7470. (50% of 15 000 minus the payment charge of $30).
Example 2: Portfolio value is $45 800 at the end of the quarter. The $1000 minimum will be transferred to Snaell Capital resulting in a portfolio value of $44 800. As this is below the max draw down of 10%, the account will be closed and your membership will be revoked.
Example 3: Portfolio value is $51 500 at the end of the quarter. You will be paid $470. Snaell Capital will charge the minimum $1 000 of the $1 500 profit. A payment charge of $30 is taken from the remaining $500.
For further information, please refer to the Q & A.
Check out our articles to learn more about portfolio management and trading.