Sprott Global Resource Income
Given the current environment of extremely low interest rates, many of our clients requested a managed platform directed at income-oriented investments. Due to the capital intensive nature of the business, the natural resource industry is not a great place to look for yield. Most of these companies need their operating cash flow to reinvest in new exploration and development projects and thus pay little or no dividends. As an alternative, we built a platform utilizing option writing strategies to generate income for our clients. Through a combination of writing put and call options on senior mining companies, oil & gas producers, and oil & gas service companies, we hope to achieve attractive yields for clients that are comfortable owning these securities.
We typically focus on option contracts with expirations of less than three months. In most cases, we initialize a position by writing a put. If assigned, we will then write a call and possibly another put. Premiums captured from the sale of these options, plus any dividends received from owning the underlying securities, generate the yield. Due to the short term nature of the options and required diversification, there often will be times when the accounts are not fully invested. Furthermore, in most cases the option premiums are subject to ordinary tax income rates. This platform is available for retirement accounts.
Professional Money Management
Active discretionary portfolio management so you don’t need to be involved with day to-day investment decisions.
Experienced Money Managers
Proven and knowledgeable experts in natural resource investing.
Portfolio holdings and fees are transparent so you always understand what you own and the fees you are paying.
Unlike mutual funds, managed accounts don’t have embedded tax gains.
Reporting & Monitoring
Informative and comprehensive reports with calculated rates of return are provided.
Account Minimums & Fee Structures
- $100,000 minimum account value is required.
- 2.0% management fee for account values between $100,000 and $250,000. For account values over $250,000, a reduced management fee of 1.50% applies.
Management fees are annualized, accrued daily and payable quarterly, in advance.
We can accommodate most forms of account registration including Individual, Joint, Trust, IRA/ROTH IRA, Profit Sharing/Pension, Corporate, and Partnerships.
Traditional – available to all US investors, subject to the account minimum.