TORONTO, Oct. 04, 2016 (GLOBE NEWSWIRE) -- Sprott 2014-II Flow-Through Limited Partnership (the “ Partnership ”) announced today that it had completed the tax-deferred transfer of the assets of the Partnership (the “ Mutual Fund Rollover Transaction ”) into Sprott Resource Class (the “ Resource Fund ”) of Sprott Corporate Class Inc. on September 30, 2016, as discussed in the Partnership’s press release of August 2, 2016. The Partnership was subsequently dissolved on October 3, 2016.
2,243,744 Series A shares of the Resource Fund (“ Fund Shares ”) were issued at their net asset value of $8.8174 per Fund Share. The final net asset value per Partnership unit for purposes of the Mutual Fund Rollover Transaction was $24.7733 per Partnership unit. Accordingly, each holder of Partnership units will receive 2.8096 Fund Shares for each Partnership unit held. The adjusted cost base for each Partnership unit was $19.0386 per Partnership unit and the adjusted cost base for each allocated Fund Share was $6.7763 per Fund Share. The after-tax return was 57.48% for an Ontario investor taxed at the highest marginal rate.
For investors looking for another tax-advantaged investment, Sprott has filed and received a receipt for final prospectus dated September 22, 2016 offering units of a new flow-through limited partnership, Sprott 2016-II Flow-Through Limited Partnership. The preliminary prospectus contains important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision.
The Sprott Resource Fund has had strong performance this year, with a year-to-date return of 92.44% as of September 30, 2016 outperforming its benchmark (Blended Index, see table below) by 52.95%. It is worth noting that the fund’s performance continued to remain positive through the month of August, even when gold equities declined by 17%. Despite the fund’s approximate 40% weight in the gold sector, strategic stock selection and tactical asset allocation have proven successful in maintaining the positive performance of the fund this year.
| Fund Name | CODE | VALUE DATE | MTD | YTD | 3M | 6M | 1YR | 3YR | Annualized Since Inception | |||||||||||
| Resource Class - A | SPR106 | 9/30/16 | 6.50 | 92.44 | 17.54 | 53.84 | 95.01 | 14.96 | (1.55 | ) | ||||||||||
| Resource Class - F | SPR107 | 9/30/16 | 6.70 | 94.08 | 17.90 | 54.73 | 97.20 | 16.20 | (0.49 | ) | ||||||||||
| Blended Index | 9/30/16 | 2.62 | 39.49 | 2.73 | 22.14 | 41.27 | 0.30 | (3.38 | ) | |||||||||||
All returns and fund details are a) based on Series A and F shares; b) net of fees; c) annualized if period is greater than one year; d) as at August 31, 2016; e) 2011 annual returns are from 10/17/11 to 12/31/11. *Blended Index (50/50 S&P/TSX Capped Materials Total Return Index and S&P/TSX Capped Energy Total Return Index) and is computed by Sprott Asset Management LP based on available index information.
The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: capital gains risk; class risk; commodity risk; concentration risk; currency risk; derivatives risk; exchange traded funds risk; foreign investment risk; inflation risk; liquidity risk; market risk; regulatory risk; securities lending, repurchase and reverse repurchase transactions risk; series risk; short selling risk; small capitalization natural resource company risk; small company risk; tax risk; uninsured losses risk.
Sprott Asset Management LP is the investment manager to the Sprott Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rate of return for series A shares of the Fund for the period ended August 31, 2016 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.
Additional information : The prospectus for the Resource Fund is available at www.sprott.com , through a broker or by calling Sprott Asset Management LP at 1-866-299-9906. Information about the Sprott 2016-II Flow-Through Limited Partnership is available through the dealers or by contacting us directly at 1-866-299-9906 or invest@sprott.com .
About Sprott Asset Management LP
Sprott Asset Management LP is a leading independent asset management company headquartered in Toronto, Canada. The company manages the Sprott family of mutual funds, hedge funds, physical bullion funds and specialty products and is dedicated to achieving superior returns for its investors over the long term. The company also manages discretionary managed accounts. Please visit us at www.sprott.com to learn more about our investment professionals and their market insights.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the relevant Fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation to anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors should consult their financial advisor to determine if such Funds may be sold in their jurisdiction.
For further information, please contact us at 1 (416) 362-7172 or 1(866) 299-9906 or invest@sprott.com .
