FAQs – We answer some the most frequently asked questions about working with Sprung Investment Management.
1. How do I know if Sprung may be the right investment counsel for my needs?
We might be a suitable option for you if you answer “Yes” to many of the following questions:
a) I have outgrown mass market products or need to establish a family trust,
b) I prefer to speak directly to the decision-makers directly involved in the day-to-day management of my portfolio,
c) It gives me peace-of-mind to know that the talent managing my funds are principals in the firm, thus ensuring continuity over the long term,
d) My present investment outlook is based on value retention and real rates of return versus chasing growth,
e) I would prefer a fee for service model instead of paying commissions, service charges and/or being tied to a company’s in-house financial products.
2. How is fee only different investment management different from other options available to me as an investor?
Investment firms have four primary platforms for generating revenue. They can:
a) Earn a straight management fee,
b) Earn commissions on buying and selling,
c) Create and sell own-branded products,
d) Distribute the products of other providers for commissions and recurring “trailers.” Fee only firms like Sprung only generate revenue from managing client portfolios. We do not earn commissions or represent the products of other firms. The benefit to our clients is that we do not have vested interests in particular investment vehicles and select our investment options from the open market.
3. What does your typical client look like?
Our typical client has minimum investable assets of $500,000, with an average account size of $1.5 million. Over half the funds under management with Sprung are family trusts. Our clients tend to be conservative investors who strive for real rates of return after fees and inflation.
4. Have your Partners invested their own money in the same securities you recommend to your clients?
We may hold the same securities personally that our clients own; however, we do not operate any funds and we have a trade clearing system that ensures Partner trades are never in conflict with client trades.
5. How is your average portfolio composed?
Our focus is primarily high-quality Canadian and US equities. We may utilize ETFs to replicate foreign exposure where appropriate. Each portfolio is customized to individual goals and needs. While we do have mandates that go from 100% equity to 100% fixed income, our client’s asset mix is typically between 40-60% equity, with the balance being in fixed income.
6. What is your fee structure?
Fees start at 1.25% on the first $1 million and reduce depending on portfolio size. For our full fee structure, please contact us and request our “Navigating Your Wealth Management” presentation.
7. How is my portfolio administered?
Clients assets are held by one of our three external custodians (RBC Dexia, TD Institutional Services and National Bank Correspondent Network), who provide monthly statements detailing current holdings, recent transactions and dividends/interest received. On a quarterly basis, Sprung provides a portfolio statement and performance report, a projected income summary for the current calendar year, our market outlook and a statement of fees for the quarter.
8. How do I get started?
Request our “Navigating Your Wealth Management” presentation, or make an appointment to meet with us so that we can better understand your situation, objectives and requirements. If you live outside of Ontario, we can arrange an introductory conference call or a video meeting.
9. Where can I read Sprung Investment Management’s privacy statement?
We invite all clients to read the firm’s privacy statement and contact us with any questions.
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