investment portfolio INFORMATION
These disclosures apply to your BBR Partners, LLC (“BBR,” “we”, “our” or “us”) Investment Portfolio(s). This report is not an accounting document and should not be used for Tax, Legal or Auditing purposes, nor shall it be used as a substitute for Form-1099, Schedule K-1 or other official tax reports. The reported unrealized gain/loss for certain types of investments may differ from your actual cost basis for purposes of calculating your taxable income. Furthermore, BBR has relied upon information provided by custodial accounts held at Schwab or Fidelity, which BBR believes to be reliable. However, information from other custodial sources may be less dependable. BBR has not independently verified such information and therefore cannot make any guarantees regarding its accuracy. We strongly recommend that you consult with your tax advisor with respect to the proper unrealized gain/loss tax application.
Please note that your current asset allocation may differ from your target allocation. This may be for any number of reasons, including, but not limited to, investment decisions not being made solely based on target allocations; and/or the inclusion of Non-Performing Assets, as defined in the Glossary. The report inception date may not reflect the actual date of initial contribution to your Investment Portfolio, but a more appropriate date chosen by BBR.
Investment Portfolio information has been compiled solely by BBR and has not been independently verified. In preparing this report, BBR has relied upon information provided by the account custodian or other sources that BBR believes to be reliable. All transactions are reported on a trade-date basis.
We strongly urge you to take a moment to compare this statement with account statements received from the account custodian. Please also note that the account custodian does not verify the accuracy of the advisory fee calculation. Please contact us or the account custodian with any questions you may have. Also, please notify us promptly if you do not receive statements on all accounts from the custodian on at least a quarterly basis.
Pricing, Valuation and Performance
Please note, market valuations, some of which are provided by pricing services, are not guaranteed for accuracy, or as realizable values. Valuations for Alternative Investments, such as private equity, hedge funds, and other alternative investments structured as private investment funds, are typically based on the best available valuation (final or estimated / monthly or quarterly) provided by the fund. These valuations may be subject to revision until the completion of an annual audit.
It is important to understand that if a fund has not provided an updated valuation after the initial purchase, the valuation in this report will reflect the initial purchase price. However, if the fund provides an updated valuation (final or estimated) subsequent to the purchase, this statement will reflect the updated value. In such cases, the valuation will be adjusted to account for capital contributions and distributions. Please be aware that the updated valuation provided by the fund will continue to be reflected on this report until a further updated valuation is provided. As a result of this valuation process, the current value(s) of an investor’s fund holding may be significantly more or less than the value reflected in this report.
Furthermore, except for the BBR administered hedge fund vehicle interests, which include the BBR Absolute Return, BBR Equity Long/Short, BBR Select Opportunities Sustainable Equities, and BBR Fixed Income Opportunities, we have transitioned to recording valuations for Alternative Investments based on the actual time-period commencing from December 31, 2021. This change means that we will no longer report valuations as of the time-period received.
Market valuations for the BBR administered private equity vehicle interests are reported on a quarterly reporting cycle and recorded at cost through the applicable investment fund’s final closing date, after which time values are recorded based on the latest available estimates, subject to revision and are included in the Investment Portfolio performance calculations.
For the sake of clarity, private equity quarterly reporting cycles will at times generate monthly Investment Results of zero value, as the Beginning Value ($) and Ending Value ($) are reporting the previous quarter-end valuation. Please further note, private equity valuation reporting generally experiences a lag time that may range from 3-months for intra-year quarter-end valuations and longer for year-end valuations.
Please note, the historical market valuations for the BBR administered private equity vehicle interests prior to June 2014 were recorded at cost and were excluded from the Investment Portfolio performance calculations until the applicable investment fund called sixty percent of its investors’ committed capital, after which time such market valuations were based on the latest available estimates (subject to revision) and were included in account performance calculations. For the period June 2014 to July 2015, market valuations for the BBR administered private equity vehicle interests were recorded based on the latest available estimates (subject to revision) and were included in the Investment Portfolio performance calculations. Since August 2015, market valuations for the BBR administered private equity vehicle interests are recorded at cost through the applicable investment fund’s final closing date, after which time values are recorded based on the latest available estimates, subject to revision and are included in the Investment Portfolio performance calculations.
With respect to your performance information, unless otherwise stated, the Investment Portfolio performance reports reflects the reinvestment of dividends (to the extent applicable), net of applicable transaction fees, excludes margin balances (to the extent applicable), BBR investment advisory fee (if debited directly from the account), applicable underlying investment managers’ investment management fee, unitary management fee and/or administration fee and any other related account expenses.
Performance of cash balances is generally included in the total performance calculation. However, when displayed separately, it is important to note the calculation methodology is time weighted, which is a combination of daily internal rate of returns (the “IRR”) compounded over a specified time period, and as addressed below the actual performance earned, may be more or less than the presented performance results.
Cash balances that are invested in interest-bearing money market instruments accrue interest daily but pay monthly. Since daily interest isn’t accrued, the performance results can significantly differ due to cash addition and withdrawal activities throughout the month. Moreover, when the daily IRR is calculated on the day of interest payment, the daily cash balance might differ considerably from the average monthly cash balance. As a result, the presented performance results may be more or less than the actual performance earned.
Past performance may not be indicative of future results. Please remember that different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BBR or any third-party manager that BBR may utilize and/or recommend) will be profitable, equal the corresponding indicated performance level(s), or prove successful.
Changes in your personal/financial situation or investment objectives
Please remember to contact BBR, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services. Unless and until notified to the contrary, in writing, BBR shall continue to rely on the accuracy of information that you have provided.
Please Note: Unless you advise, in writing, to the contrary, we will assume that there are no restrictions on our services, other than to manage the account in accordance with your designated investment objective. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.