As a young investor (age 12) I was given the opportunity to invest in bonds and mutual funds because my Dad had a brokerage account.  As a junior investor my meager individual funds were initially a liability to the brokerage.  However, my Dad’s funds were an asset.  The brokerage won in two ways.  First, my father appreciated the opportunity to teach me the fundamentals of investing which increased his loyalty to the brokerage.  Second, as I accumulated more funds, my less-meager funds became an asset to the brokerage.

I would like to provide similar options for Σ1 investor’s children.  My initial thinking is to give Σ1 investors that meet certain criteria (dollar-amount invested, years invested in the Fund) the privilege of establishing junior accounts.  Junior-account correspondence will be delivered c/o  the senior account holder.  Junior accounts will have similar conditions to senior (regular) accounts with a few key differences:

1. Minimum dollar amounts will be reduced.  For example a minimum initial investment may be as low as $500.  And minimum new investments may be as low as $100.
2. Junior account holders will not have the same transparency privileges as senior (regular/full) shareholders.  Only NAV and yield information will be provided.

In a similar vein, I have considered the possibility of a “bronze” account.  This is an account that may be available for a qualified senior account’s (adult) significant other.  The significant other is still required to meet investing knowledge and other criteria; but with reduced minimums such as $5000/$500 rather than $10,000/$1000.

There are several details to be worked out yet.  For example if a primary (senior) account is closed, the status of subordinate (junior/bronze) accounts must be handled.  This is TDB.  Similarly if there is a falling out/separation/divorce between the primary (senior) account holder and the “bronze” account holder there must be appropriate contingencies.

All these details and associated expenses make me hesitate somewhat.  Almost certainly junior/bronze accounts won’t exist at the outset (if it ever comes) of Σ1 Fund outside investor availability.