# Welcome to Cache ## Case study ### Adero Partners attracts New AUM with the Cache Exchange Fund #### Aaron White Chief Growth Officer at Adero Partners Adero Partners Website: [aderopartners.com](https://aderopartners.com/) **Serving**: Assets under management $4.1B **Location**: San Francisco Bay Area ## Adding more value with the only modern exchange fund. Aaron White, the Chief Growth Officer of Adero Partners was looking for a better way to help clients diversify their concentrated stock positions. With its home in Silicon Valley, Adero’s clients often earn stock compensation and invest in individual high-growth stocks. As a result, many of the portfolios his team manages are concentrated in one or two positions. For many of Adero’s clients, these concentrated positions represent years of hard work and success but also come with significant risk during market downturns. White knew about exchange funds, but he didn’t consider them to be a viable strategy for many of Adero’s clients: ”In the past, the cost structures were not favorable, fees were higher, there wasn’t much transparency on what stocks you would get — and the minimums were too high for many investors.” “I connected with Cache early last fall and had some initial conversations, completed a review, and we were really impressed with what we saw.” Watch Aaron’s story here, or read on for a closer look at how Cache helps Adero serve its clients better: ### A new way to serve clients As the Chief Growth Officer, White knew that exchange funds could be a useful tool. ”Stockholders frequently find themselves at the crossroads of deciding between diversification and efficiency,” said White. “Our clients can have both by leveraging the Cache Exchange Fund.” Exchange funds allow investors to pool their appreciated stocks together and swap them for a pro rata share of the fund that’s created. There’s no sale, so capital gains taxes are deferred — and after seven years, each participant can withdraw a diversified basket of stocks. Capital gains aren’t recognized until those stocks are eventually sold. “This solution mitigates concentration risk while preserving the benefits of pre-tax compound growth,” said White. To give a hypothetical example, this is what might look like if one of Adero’s clients with $1M of appreciated AAPL used an exchange fund to diversify: ### Deferring taxes ensures more of the principal is working for your client If you want to dig deeper, here’s a [detailed look at exchange funds](https://usecache.com/companion/how-exchange-funds-work). For Adero, gaining the ability to reduce risk immediately without paying capital gains taxes upfront had the potential to pay big dividends. Cache also made it easier to onboard clients quickly, with a lot less back and forth than the firm experienced with [traditional exchange fund providers](https://usecache.com/companion/exchange-fund-providers). ## Generating interest from existing (and new) clients When Adero added the Cache Exchange Fund as an option, it gave the firm a new reason to reach out to clients — and a new way to engage them. The Cache Advisor portal let Adero’s team import a list of concentrated positions to instantly see which stocks could receive allocations for the fund. Monthly closings allow new positions to be added to the fund without a long wait. And the combination of streamlined online onboarding plus accounts clients can access themselves make it easy for everyone to get set up and keep tabs on performance. The Cache team also created marketing opportunities by helping Adero [write a blog post](https://aderopartners.com/insights-news/a-guide-to-managing-concentrated-stock-with-exchange-funds/) and put on a webinar, which it used to connect with clients and prospects via email and social media platforms. Adero’s story even got [picked up by Barrons](https://www.barrons.com/articles/exchange-funds-are-gaining-attention-as-a-way-to-minimize-risks-in-an-appreciated-portfolio-938b58aa). ## The result? New AUM and client tax savings. “Smart tax management and avoiding large losses are the most effective ways to consistently enhance investment returns,” said White. By offering a modern exchange fund that was more accessible for clients, Adero was able to deliver on this strategy. It gave the firm a way to add more value to its client relationships, to take more assets under management, and to lure prospective clients who hold appreciated positions in growth stocks. “Cache has enabled many of our clients to eliminate single stock risk without paying a hefty diversification tax,” said White. If you’d like to see how Cache can help your firm, [set up a time to talk](https://usecache.com/advisor/signup) or enter some basic information to [see if an allocation is available](https://advisors.usecache.com/).