Vann Equity Management LLC, which is formerly known as Precision Capital Management
(referred to herein as “VEM,” the “Firm,” “us” and “we”), is an investment adviser that is
registered with the United States Securities and Exchange Commission (“SEC”), and is a Limited
Liability Company formed pursuant to the laws of the State of Texas.
VEM primarily provides customized discretionary portfolio management services to individuals,
families, pension and profit-sharing plans, corporations or other businesses and non-profit
institutions. Discretionary authorization will allow our firm to determine the specific securities,
and the amount of securities, to be purchased or sold for your account without your approval prior
to each transaction. Discretionary authority is granted by the investment management agreement
you sign with our firm. VEM generally invests client assets in domestic and international stocks,
bonds, mutual funds, options, exchange traded funds ("ETFs") and other public or private
securities or investments. Advisory Representatives are available to offer advice on most types of
investments owned by a client and at the specific request of a client, will explore investment
options not currently owned by a client.
Ownership
VEM is owned and controlled 100% by Vann Partners LLC, formally known as LFAM Investment
Counsel and Advisors LLC (“Vann”). The JAV 2020 Irrevocable Trust and Aaron Vann are
members of Vann, as of November 2020. VEM has been in the advisory business under the current
ownership since November 2020.
Services Offered
VEM offers the following advisory services:
• Financial planning services
•
Portfolio management services for individuals and/or small businesses
•
Portfolio management for businesses or institutional clients (other than investment
companies)
Pension consulting services
Assets Under Management
VEM managed $701,026,488 in client assets on a discretionary basis, as of December 31, 2023.
Overview of Services Offered
Asset Management Services
VEM provides advisory services through its Asset Management Services program. Asset
Management Services involve providing clients with continuous and on-going management over
client accounts. This means that VEM will continuously monitor a client’s account and make
trades in client accounts, when necessary, in accordance with the client’s investment objective.
2 | P a g e
VEM’s services are always provided based on the individual needs of each client. VEM Advisory
Representatives are instructed to consider the individual needs of each client when recommending
an advisory platform. VEM’s Advisory Representative will conduct a complimentary initial
meeting with the client for an information and data-gathering session. At this initial meeting, the
Advisory Representative will assist the client in determining the advisory services needed. Clients
are given the ability to impose restrictions on their accounts including specific investment
selections and sectors. Restrictions on investments in certain securities or types of securities may
not be possible due to the level of difficulty this would entail in managing the account.
When client accounts are managed using models, investment selections are based on the
underlying models, and we do not develop customized (or individualized) portfolio holdings for
each client. However, the determination to use a particular model or models is always based on
each client’s individual investment goals, objectives, and mandates.
US Large Cap Growth Model
A pure growth portfolio of typically between 60-75 US large cap stocks with diversified
exposure across industries. We seek to invest in competitively advantaged businesses at various
stages of their corporate life cycle, leveraging innovation and change to drive rapid growth in
earnings and cash flow. We look to identify stocks with the potential to deliver sustainable earnings
growth, capitalizing on both secular and cyclical growth. We are patient investors, aiming to invest
in companies trading at attractive valuations relative to their long-term potential and taking
advantage of cyclical opportunities to build positions in high conviction names.
US Large Cap Value Model
A best ideas portfolio of 60-65 US large cap companies with hidden value and upside
potential that we believe are overlooked by the market. We look for high quality companies with
effective management teams where we believe they can materially improve the business. We focus
on relative value, searching for companies with solid businesses, strong balance sheets, and
durable earnings profiles that are inexpensive relative to their history, sector, or the market. We
balance our valuation analysis with qualitative factors to identify the most compelling valuation
opportunities.
US Small/Mid Cap Core Model
Mid Cap Core Equity Fund seeks long-term growth of capital. The portfolio management
team aims to construct a portfolio of companies that have high or improving return on invested
capital, quality management, a strong competitive position and which are trading at compelling
valuations. The investment seeks to provide long-term capital growth. The fund will normally
invest at least 80% of its net assets (including any borrowings for investment purposes) in stocks
of small companies. The advisor defines a small company as one whose market capitalization falls
(i) within or below the current range of companies in either the Russell 2000® Index or the S&P
SmallCap 600 Index or (ii) below the three-year average maximum market cap of companies in
either index as of December 31 of the three preceding years. While most assets will typically be
3 | P a g e
invested in U.S. common stocks, the fund may invest in foreign stocks in keeping with its
objectives.
Non-US International ADR Core Model
International ADR core is a thematic growth portfolio that is geographically, economically,
and demographically diversified, and seeks long-term capital appreciation by investing in non-
U.S. securities of varying market capitalizations.
Index Advantage Fixed Income ETF
The Index advantage Fixed Income strategy is constructed using Mutual Funds and ETF’s
consisting of investment grade, hi-yield, U.S and Non-U.S. denominated securities varying in
yield, credit and duration. The strategy looks to be consistently 95% invested. The strategy is
meant to be part of an overall comprehensive portfolio allocation, or extension of an existing
allocation with an objective for exposure to the Fixed Income market.
Index Advantage Domestic ETF
The Index Advantage Domestic US strategy seeks investment results that produce higher
returns than the S&P 500 Index. This portfolio is constructed using ETF’s that can measure Large,
Mid, or Small capitalization companies, as well as individual asset styles of Growth, Blend or
Value in the US equity market. The strategy employs a 50% Strategic/50% Tactical asset allocation
while maintaining individual cash, sector and leverage constraints. The strategy is meant to be part
of an overall comprehensive portfolio allocation, or extension of an existing allocation with an
objective for exposure to the US equity market.
Index Advantage International ETF
The Index Advantage International Non-US strategy seeks investment results that produce
higher returns than the MSCI EAFE Index. This portfolio is constructed using ETF’s that can
measure
Large, Mid, or Small capitalization companies, as well as individual asset styles of
Growth, Blend or Value in NON-US equity markets. The strategy employs a 50% Strategic/50%
Tactical asset allocation while maintaining individual cash, country, developed vs. emerging,
sector and leverage constraints. The strategy is meant to be part of an overall comprehensive
portfolio allocation, or extension of an existing allocation with an objective for exposure to the
Non-US equity markets.
Index Advantage Global ETF
The Index Advantage Global strategy seeks investment results that produce higher returns
than the MSCI All Country World Index. This portfolio is constructed using ETF’s that can
measure Large, Mid, or Small capitalization companies, as well as individual asset styles of
Growth, Blend or Value in US and NON-US equity markets. The strategy employs a 50%
Strategic/50% Tactical asset allocation while maintaining individual cash, country, developed vs.
emerging, sector and leverage constraints. The strategy is meant to be part of an overall
comprehensive portfolio allocation, or extension of an existing allocation with an objective for
4 | P a g e
exposure to equity markets available across the world. This strategy can also be considered a
complete allocation to equity markets.
Third-Party Portfolio Management Program
VEM may recommend our Third-Party Portfolio Management Programs (“Program”) to
Clients to supplement our advisory services. The Program is typically managed by third-party
portfolio manager (“TPPM”) on a discretionary basis, and each TPPM may offer different types
of investment programs and/or services. TPPM programs offer access to a variety of investment
portfolio models and strategies, with varying levels of risk. After consultation with their VEM
financial professional, a Client may select a TPPM investment management program that is
appropriate for their objectives, goals, financial situation and risk tolerance. When using a TPPM,
the Client may incur additional platform and investment management fees. The TPPM fees are
generally not included in the fees charged by Vann, but are disclosed in the Advisory Firm's
investment management agreement, which each Client is provided and must sign in order to access
the services of the TPPM. Such additional fees are only incurred on the portion of Client's portfolio
managed by the TPPM. TPPMs are separately registered investment advisers, and are not affiliated
with VEM.
EQIS Platform
VEM offers asset management services to advisory clients utilizing EQIS Capital
Management, Inc.’s (“EQIS”) portfolios on the EQIS platform. The client can elect to authorize
VEM discretionary authority within the Investment Advisory Agreement, full discretion to hire
and fire sub-advisors within the EQIS platform. EQIS shall have discretionary authority for the
investment and reinvestment of the designated assets with full authority to buy, sell or otherwise
effect investment transactions involving the designated assets in the client’s name and for the
client’s account.
Retirement Plan Services
We offer various levels of advisory and consulting services to employee benefit plans
("Plan"). The services are designed to assist plan sponsors in meeting their management and
fiduciary obligations to participants under the Employee Retirement Income Securities Act
("ERISA"). Pursuant to adopted regulations of the U.S. Department of Labor, we are required to
provide the Plan's responsible Plan fiduciary (the person who has the authority to engage us as an
investment adviser to the Plan) with a written statement of the services we provide to the Plan, the
compensation we receive for providing those services, and our status. VEM services may also
include planning services for retirement plan participants and consulting with the retirement plan
sponsor on methods of improving or enhancing the retirement plan. The exact suite of services
provided to a client will be listed and detailed in the Retirement Plan Services Agreement.
VEM acknowledges that in performing Consulting Services or Administrative Services that it is
acting as a “fiduciary” as such term is defined under ERISA for purposes of providing non-
discretionary investment advice only. VEM will act in a manner consistent with the requirements
of a fiduciary under ERISA if, based upon the facts and circumstances, such services cause VEM
5 | P a g e
to be a fiduciary as a matter of law. However, in providing the Consulting Services or
Administrative Services, VEM (a) has no responsibility and will not (i) exercise any discretionary
authority or discretionary control respecting management of Client’s retirement plan, (ii) exercise
any authority or control respecting management or disposition of assets of Client’s retirement plan,
or (iii) have any discretionary authority or discretionary responsibility in the administration of
Client’s retirement plan or the interpretation of Client’s retirement plan documents, (b) is not an
“investment manager” as defined in Section 3(38) of ERISA and does not have the power to
manage, acquire or dispose of any plan assets, and (c) is not the “Administrator” of Client’s
retirement plan as defined in ERISA.
Retirement Accounts – DOL Disclosure
We are fiduciaries within the meaning of Title I of the Employee Retirement Income
Security Act of 1974 (“ERISA”) and/or the Internal Revenue Code (“Code”), as applicable, when
we provide investment advice regarding portfolio assets held in an IRA, Roth IRA, Archer Medical
Savings Account, a Plan covered by ERISA, or a plan described in Section 4975(e)(1)(A) of the
Code (collectively referred to sometimes herein as (“Retirement Accounts”).
To ensure that VEM will adhere to fiduciary norms and basic standards of fair dealing, we are
required to give advice that is in the "best interest" of the retirement client. The best interest
standard has two chief components, prudence and loyalty. Under the prudence standard, the advice
must meet a professional standard of care and under the loyalty standard, our advice must be based
on the interests of our retirement clients, rather than the potential competing financial interest of
VEM.
To address the conflicts of interest with respect to our compensation, we are required to act in your
best interest and not put our interest ahead of yours. To this end, we must:
• Meet a professional standard of care when making investment recommendations (give
prudent advice).
• Never put our financial interests ahead of yours when making recommendations (give loyal
advice).
• Avoid misleading statements about conflicts of interest, fees, and investments.
• Follow policies and procedures designed to ensure that we give advice that is in your best
interest.
• Charge no more than is reasonable for our services; and
• Give you basic information about conflicts of interest.
Financial Planning Services
VEM provides advisory services in the form of financial planning and consulting services.
Financial planning services do not involve the active management of client accounts, but instead
focus on a client’s overall financial situation. Financial planning can be described as helping
individuals determine and set their long-term financial goals, through investments, tax planning,
asset allocation, risk management, retirement planning, and other areas.
6 | P a g e
Wrap Program
VEM does not provide a wrap program, however, through the Program described above, it does
provide access to third-party portfolio managers who offer wrap programs. The TPPM’s services
are further described in their respective Form ADV Wrap Brochure, which will be provided to you
should you elect to engage a TPPM.