How we invest

Client focused

Our first step is always to understand you as our client. Through discussions we will explore these and other questions:

• What are your goals?
• What is your time horizon?
• What are your current and anticipated constraints and liabilities?
• How comfortable are you with possible fluctuations in value of your portfolio?

Together we will develop a specific investment policy statement that fits your unique needs and circumstances. This statement will guide Sprung & Co. in managing your investments.

Appropriate asset mix

The primary asset mix decision is the ratio of equities (corporate shares) to income investments (bonds and other debt).

Equities generally out-perform income investments over long periods. Therefore, a higher equity weighting may result in greater returns; however in any given year these may be offset by greater portfolio volatility.

Thus your target asset mix depends on your time horizon and comfort with volatility.

Choosing equities

Most portfolios include equities. Deciding which shares to purchase is a critical decision. How equities are chosen stems from the counsel's basic approach, or investment philosophy.

Sprung & Co. uses a value-based approach to equity decisions.

Value investing begins with screening for undervalued companies. Candidate companies are those with share prices below what a prudent investor would pay.

Sprung & Co. then scrutinizes each candidate carefully to assess all risk factors before deciding to act. In the end we consider only those that offer an acceptable combination of low risk and discount from intrinsic value. This work takes judgement and experience.

Value-based investors build equity portfolios one company at a time. Value investing is a well-documented, time-tested approach, using rigorous research and analysis. There are other ways to invest, but value investing is core to Sprung & Co.

In addition to our own research tools, Sprung & Co. utilizes a number of outside resources in developing and analysing our portfolios.

Matching our philosophy to yours

It is important to choose an investment counsel whose investment philosophy is a good match for your views and needs. To ensure a good fit, we explore this issue thoroughly in our conversations with prospective clients.

To begin assessing whether Sprung & Co. is a good fit for you, please see this self-assessment guide.

NEXT:   Getting started with Sprung & Co.