Sprung Investment Management - Navigating Your Wealth Management Options
This presentation has been created to help you decipher your investment options
and determine if Sprung is the right advisor for you. In it we will cover...
2. Table of Contents
This presentation has been created to help you decipher your investment options
and determine if Sprung is the right advisor for you. In it we will cover...
Understanding Your Your Options
Understanding Investing Options
About Our Firm
About Our Firm
Our Investment Philosophy
Our Investment Philosophy
Are We Right For You?
How To Get Started
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3. Needs of High Net Worth Individuals
Market research shows that high net worth customers indicate the following
financial management needs...
*Services offered by Sprung Investment Management
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4. Deciphering your investment options
Certified Financial Planners
Banks • Focused on selling mutual funds
Mutual Funds • Compensated on commission and
Insurance Companies annuities for client retention
Investment Managers
• “Customized “ portfolio solutions actually
forced-fit with pooled funds
(Large Firm)
• Direct clients into own brand of private • Compensated by fee only
label financial products • May be high minimum asset level
• Securities frequently purchased from • Portfolios not typically customized – force
inventory versus open market fit with the firm’s standard approach
Stockbrokers Investment Managers *
Investment Advisors (Boutique)
• Buy and sell on open market • Compensated by fee only
• Commission on both transactions • Portfolio customized to individual
• Compensation on mutual fund sales may • Typically focused on single specialty
include bonuses by brand and annuities for • Talk directly with decision-makers
client retention
Hedge Funds
• High cost of entry to participate
• Very high fees and give back % of profits
• Focused on high performance, meaning
higher risk investments *Sprung Investment Management is a boutique
Investment manager 4
• Turnover of “rock star” managers
5. How investment firms earn money
Investment industry players have 3 primary platforms for creating revenue
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6. Where investment firms focus their efforts
Where a firm earns the bulk of it’s revenues determines where they will focus their
efforts – be that sales, product development, distribution, or advising clients
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7. About Our Firm
Sprung Investment Management is a boutique, partner-owned, investment management firm.
We build and manage customized investment portfolios for high net worth private investors with an
average assets of $1.5M. We are compensated by management fees only – no commissions, product
sales or bonus structures.
We are known for our “value investing” approach, aimed at preserving capital and sustaining
consistent growth. Our philosophies run contrary to market trends and popular thinking and
have demonstrated a successful track record of minimizing volatility and protecting wealth.
Our insight and expertise in research has earned Sprung a reputation as a trusted advisor to
individuals, industry and the Canadian investment media. Sprung currently provides research,
analysis and consulting services to leading Bay Street firms and opinion to financial media such as
BNN, CBC, Globe and Mail, Financial Post and Moneysense.
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8. What makes Sprung different?
Virtues such as being trustworthy, creating results, having experienced staff, etc., are
generic for the financial industry. Every firm has them. At Sprung, there are three
characteristics that make us unique among your other choices...
Difference Benefit
◆ No layers of agents or handlers ◆ You speak directly to the analysts and
decision-makers managing your portfolio
◆ Our insight and analyses are sought and ◆ The approach and diligence we provide to
esteemed by our industry - we advise large you as an individual also drives the
and recognized investment firms on Bay St. investment decisions of leading companies
◆ We do one thing only - and do it very well ◆ Sprung is not swayed by market trends –
we stick with our value investing approach
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9. Who are we for?
Clients who invest with Sprung share similar traits, outlooks and goals
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11. Value investing
Value investing preserves wealth by focusing on company fundamentals and
optimizing our trading strategy to minimize market volatility. This is the same
approach embraced by such investors as Warren Buffet and
Philosophy Approach
◆ Seek long-term growth of capital by ◆ Identify companies that financially strong
investing in companies that are mispriced and well managed
◆ Appraise the intrinsic value of a company ◆ Estimate company earnings prospects
over a business cycle to establish value
◆ Utilize a margin of safety to promote return ◆ Evaluate potential value with present
of capital...not just return on capital market price
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12. Fixed income investing
Our approach to fixed income (bonds , money market) products aligns closely with
the value investing principals that guide our equity
Philosophy Approach
◆ Complements value investing approach ◆ Economic environment and interest rate
Sprung utilizes for equities outlook
◆ High quality, short-term, low turnover ◆ Rigorous credit analysis
◆ Emphasis on liquidity, to ensure easy client ◆ Security selection according to maturity
to ensure easy client access to funds or re- date, sector and credit worthiness
deployment to other assets
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13. Why the time has come for value investing
Present and foreseeable market conditions shifts investors focus away from
speculative profits and riding trends and following popular opinions
In times of market volatility smart investors seek companies that are well
managed and have the financial capacity to ride out the storm
Diligent focus on the “fundamentals” cuts through market
gyrations and the frequently changing opinions of experts
Downward price pressure in unstable markets means that good
companies can be purchased at cheaper prices
An investment firm that has done it’s homework is in a position
to turn cyclical instability into long-term opportunity
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14. Portfolio performance since inception
Actual performance of $1M balanced portfolio, under management since the firm’s
inception in 2005*
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011
*Disclaimers: Past performance is not indicative of future performance
Chart shows cumulative performance to date, based on balanced mandates managed, 14
applied to theoretical portfolio of $1M
15. Fee structure
Sprung Investment Management is a fee-only investment advisor. We are paid
directly by you, the client, as opposed to receiving a buy/sell commission or earning
profits from marketing financial products. This arrangement creates transparency
and enables us to buy and sell on the open market, according to your needs versus
filling your portfolio with securities in the company inventory.
Fees
Up to $1M under management 1.25%
$1M to $2M under management 1.0%
$2M to $5M under management 0.75%
$5M or more under management 0.5%
*Discount provided for portfolios that mandate fixed income mix greater than 70%
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16. Are we right for you?
To help you decide whether working with Sprung Investment Management is right
for you, we have provided the following checklist
Yes No
I prefer to speak directly to the researchers, analysts and decision-makers directly
involved in the day-to-day management of my portfolio
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
I would prefer to retain the value of my existing portfolio and optimize it over time,
as opposed to liquidating my securities to transfer cash into a new account
I have tired of chasing market trends and short-term speculative gains and am
shifting to a long view of investing based on fundamentals
I am seeking a steady hand and sober second thought to protect my existing
capital during times of market turbulence
I am willing to move to a fee for service model instead of paying commissions,
service charges and/or being tied to a company’s financial products
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17. Custodianship
Although Sprung manages your portfolio, it does not hold your assets. All assets are
held by independent, insured, third-party custodians who provide safekeeping and
transaction processing.
Assets protected by leading Canadian institutions
Sprung can only withdraw agreed-to management fee
Custodian provides monthly reports/annual tax forms
Clients retain ultimate control of their account
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18. Enlisting our services
If you have decided that Sprung Investment Management is the right choice for you,
here are the next steps in starting to work with us...
Meet with us, so that we can understand your situation,
Contact objectives and requirements. If you live outside of the GTA,
we can arrange a conference call or a video meeting.
Complete the Investment Management Agreement and KYC
Documents (Know Your Client) documentation to formally engage Sprung
as your investment manager.
Work together with Sprung to develop your Investment Policy
Investment statement, which will guide investment objectives, time
Policy horizon, financial targets, etc..
Open an account with one of our three external custodians
Custodian (RBC Dexia, NBCN, TD Institutional Services) , initiating the
procedure to transfer your existing holdings
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19. Contact Info
✉ Sprung Investment Management
20 Adelaide Street East, Suite 1102
Toronto, Ontario, Canada M5C 2T6
☏ (416) 934-7160
General Inquiries info@sprunginvestment.com
Michael Sprung, (CFA), Chief Investment Officer msprung@sprunginvestment.com
Fred Palik, (CFA) Vice President, Fixed Income fpalik@sprunginvestment.com
Lois O'Sullivan, (CFA) Vice President loiso@sprunginvestment.com
Joie Watts, (CFA, FCSI) Vice President jpwatts@sprunginvestment.com
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