All assets of Cabana’s portfolios are held in the individual investor’s name and maintained in the custody of TD Ameritrade Institutional (TD), our custodian of choice.
(Clicking the link above will take you to the secure portal at the TD Ameritrade website.)
A custodian is a third-party institution that holds a client’s securities for safe keeping either in electronic or physical form, and executes trades, serving as an added check and balance. Your advisor and your custodian are two separate entities, with no overlapping management or control, and all activity in your accounts are confirmed separately by each party.
Investors’ accounts are not commingled with other investors’ monies, but rather each investor maintains their own account separate from all others (unlike a hedge fund where accounts are commingled). All individual accounts are linked to a trading platform so that each account purchases or sells the same securities simultaneously in quantities based on the net liquidation value of each account. For example, if an individual with $500,000 in his or her account would purchase five times as many shares as someone with $100,000 in his or her account. Each investor in the Portfolio may be confident they are invested exactly like the other investors in the account, including Cabana Asset Management’s principals and their families, who are invested in Cabana’s Family of Portfolios.
Accordingly, each investor has continual access to his or her account and transparency into its underlying investments and transactions. Investors are free to deposit or withdraw their funds at any time and without any impediment.