Here is the answer I got from her when I asked for clarification:
"My concern over the capital gains is that in a fund environment versus a direct investing (individual stocks) you do not have control over when capital gains are passed through from the fund as the manager makes that decision inside of the fund as to what to sell/buy. If he/she decides to sell a position inside of the fund that generates a gain, that is passed onto you. You may have capital gains from the fund while still experiencing a decrease in market value. With individual stocks, you have total control over when the position is sold and thus can control your gains. This is only a concern to me in your Trust account since it is money that is already taxed....."
This is actually different than what she said in a phone call, which I posted originally. I care because I have to pay taxes, and I have to know how much to pay.