Sprott Asset Management USA Inc.

Sprott Global Resource Income

Jeff -howardGiven 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.
 

Key Benefits

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.

Transparency
Portfolio holdings and fees are transparent so you always understand what you own and the fees you are paying.

Tax Management
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

Traditional:

  • $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.

Account Types

We can accommodate most forms of account registration including Individual, Joint, Trust, IRA/ROTH IRA, Profit Sharing/Pension, Corporate, and Partnerships.

Investor Qualifications

Traditional – available to all US investors, subject to the account minimum.

The page you are about to view is not affiliated with Sprott Asset Management USA Inc. or any of its related companies.

Investors should carefully consider the investment objectives, risks, time horizon and liquidity needs before making an investment. Past performance is no guarantee of future returns.

Continue