Our Asset Management Approach
The term asset management generally refers to a process that monitors and maintains assets that are of value to an individual, entity or group. It can be apply to both tangible assets such as buildings and to intangible investment assets such equities and bonds. Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively.
The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others. These include investment managers that manage the assets of pension funds or mutual funds. It also includes investment managers, such as Sprung Investment Management, that provide private wealth management to individuals and families.
In financial services, asset management is generally defined as the professional management of various classes of securities—typically equities and bonds—in order to meet each individual client’s specific investment goals. At Sprung Investment Management, our asset management approach is based on the value investing principles developed by Ben Graham. Value investing shifts the asset management focus away from speculative profits, market trends and the frequently changing opinions of experts, focusing instead on company and market fundamentals.
Sprung Investment Management – asset management based on the value investing principles developed by Ben Graham.
Our asset management approach is based on a three-part value investing strategy. We believe this is the best way to reduce risk and volatility and earn consistent returns over time. Our diligent, patient and opportunistic approach has served our clients well, through good and bad markets:
- Appraise the intrinsic value of each company over a business cycle;
- Seek long-term growth of capital by investing in companies that we perceive to be mispriced;
- Utilize a margin of safety to promote return of capital…not just return on capital.
Value investing preserves wealth by focusing on companies that are financially strong, well-managed and offer a margin of safety to promote return of capital…not just return on capital. This is the same approach embraced by successful value investors such as Warren Buffet.
We work with clients to match our value-based asset management approach to their goals and risk tolerance. Based on the client’s situation, we will determine an appropriate asset mix. When new clients join us their existing holding can often be transferred in-kind, (i.e. transferred “as is”, without being liquidated.) Over time, we will perform any changes necessary to the portfolio in order to ensure it reflects their goals and risk tolerance. We trade client portfolios as and when market opportunities present themselves.
As a portfolio manager, we are committed to meeting a ‘best-interest’ standard, also known as a fiduciary duty. A fiduciary duty is a legal requirement that an investment manager must avoid all conflicts of interest and put the client’s interests first. Investment advisors employed by the large bank-owned brokers, only have a responsibility is to suggest investments that are ‘suitable’ for their clients. They are not required to disclose any fees or commissions that they will receive if you buy what they are recommending.
Learn more about fiduciary investment advisors here>>
Michael Sprung, CFA, President of Sprung Investment Management can be seen as a commentator on BNN-TV and is a frequent contributor to Canadian and international financial media.
What is Successful Asset Management? You can learn more about our approach here>>
We provide Canadian investors with conservative asset management with an emphasis on wealth preservation & risk reduction.
25 Adelaide Street East, Suite 500
Toronto ON M5C 3A1 CA
Planning to visit us? You can find a map, directions and more contact details here>>
Canada Stockwatch is a keyword search term we use on our website to help investors find reports on Canadian listed public companies. You can view recent reports here>>