AIRE Advisors Q1 2025 Client Event • 351 Exchanges • Guide to Evergreen Funds
Monthly AIRE Perspectives – March 2025
Dear Friends and Valued Clients,
Please see below for The MAP – Monthly AIRE Perspectives for this month.
YOU ARE INVITED! AIRE Advisors Q1 2025 Client Event: Market Volatility, Investor Behavior and Today’s Markets
This Wednesday, March 19th at 4pm PT, please join us for our quarterly client event. Our event this quarter will be a webinar discussing the current market volatility, how investor behavior during times like this can have a positive or negative impact on long-term portfolio returns, and some thoughts on today’s markets in general. We will be joined by Daniel Ong, CFA, Senior Portfolio Manager at Avantis. If today’s market climate is causing you any concern, we highly recommend that you attend this session.
Please click here to register and please note that you will need to log into a free Zoom account with the same email address with which you register. We look forward to seeing you at the event!
351 Exchanges – EBI Listed on the Nasdaq
We recently completed our first 351 exchange into EBI for a number of clients. 351 exchanges are an opportunity to exchange shares of US-listed common stock and ETFs for shares of a diversified ETF without incurring a tax event. These are great opportunities for situations where a client might want to diversify from certain holdings, but does not want to create a capital gains event. The caveat is that no more than 25% of any person’s deposit into the new ETF can be in any one stock, and no more than 50% of the deposit can be in the top 5 stocks, so each investor must exchange a minimum of 11 stocks to qualify. However, the deposit of an ETF counts as the total number of stocks inside that ETF, so clients can pair deposits of ETFs with some of their individual stocks in order to be able to diversify those stocks. We recently used this opportunity to help clients reduce certain holdings we have been wanting to diversify for years, but have not done so due to the embedded capital gains. Longview Research Partners rang the closing bell on the Nasdaq on the opening day of EBI – photo below. We will continue to keep you posted should any additional rare opportunities for 351 exchanges arise.
Guide to Evergreen Funds
With the relatively recent “democratization of alternative investments,” we have seen a rise in opportunities to invest in private markets via evergreen funds. These are single purchase, diversified funds in various areas of the private markets, which have partial liquidity and reduce the complexity of capital call structured “draw down” funds, which typically have no liquidity for periods of 5 to 10 years or more. To read more about evergreen funds and understand their structures, please click here for an informative piece from AMG.
Once again, we would like to thank you for your trust and loyalty, and look forward to speaking with you in the upcoming month.
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