Q: Is there a minimum deposit required to join?
A: No, there is no minimum balance. Members can deposit whatever amount they desire. However, members are strongly encouraged to deposit only money to which they will not need access in the near future.
Q: How much does it cost to be in the club?
A: There are no initial fees to join the club. The only cost is a 2% annual management fee assessed at the end of the year. The fee is based on the average daily number of units in the account each year, which means that the 2% fee is adjusted to accommodate for accounts that have been active for less than 1 year and for members who have made multiple deposits throughout the year.
Q: When can I withdraw money?
A: Members can withdraw at any time, but 3 business days' notice is required to process the request. A prorated management fee will be assessed. Example: only 1% will be taken out for a deposit 6 months ago.
Q: How are taxes paid on the interest earned from the investment?
A: Broadlands Asset Management LLC is taxed as a partnership. Therefore, members will be individually responsible for paying taxes on the capital gains each year. At the end of the year, each member will be able to access a Schedule K-1 (Form 1065) document that lists what his or her capital gains were for the year.
For members who have already made deposits into the club, instructions on viewing the Schedule K-1 (Form 1065) on Bivio
are listed below:
Q: Do I need to know anything about investing to be in the club?
- Schedule K-1 (Form 1065): Accounting > Taxes > [Year] Federal K-1
A: No, all investment decisions are made by the investment managers.
Q: What are the major benefits to investing in Broadlands Asset Management LLC?
Q: In what is the deposited money being invested?
- Commissions and fees associated with trading are reduced, as members' funds are pooled together.
- Broadlands Asset Management LLC invests very aggressively, meaning that members have a great chance of earning a high rate of return on their investments without the hassle of constantly monitoring their holdings.
- Membership is exclusive and limited to 100 members.
- Members have the right to elect the investment managers at the end of each year.
A: Members' funds are invested in a variety of sources, with a focus on index options: cash-secured puts, spreads, and reverse iron condors. (Don't worry if you don't know what any of those strategies are.)
Q: What do members purchase to be in the club?
A: Members purchase "units," which are similar to shares in a mutual fund. Units are divisible into fractional parts.
Q: How are units valued?
A: Each unit is valued as the total value of all investments divided by the total number of units. (At any given point in time, all units will be valued equally.) Because of continually changing market conditions, the value of those investments will change, and, consequently, the value of units will change at the end of each market trading day.
Q: How are units valued for deposits and withdrawals?
Q: Is there a minimum age required to join?
- Deposits: Units for deposits received before the market closes (usually 4pm) on a trading day will be valued at that day’s closing price. Units for deposits received after the market closes will be valued at the next market trading day’s closing price.
- Withdrawals: Units for withdrawals will be valued at the next trading day’s closing price after the request has been processed.
A: No, however, prospective members under 21 years old (minimum age varies by U.S. state) may need a parent/guardian's approval, as their membership will be setup as a Uniform Gifts to Minors Act (UGMA)
account, where a custodian (parent/guardian) must be present. For more information on the age requirement by state, click
Q: How can I view the growth of my investment over time?
A: All members will have access to individual accounts on Bivio
, the accounting service used by Broadlands Asset Management LLC. Members are able to view the number and value of units they own. Please do not create a Bivio account until you receive an email invite.
For members who have already made deposits into the club, instructions on viewing account value and realized capital gains on Bivio
are listed below:
- Account value: Accounting > Reports > Member Performance Detail > Submit
- Realized capital gains: Accounting > Reports > Income Statement > Submit