Toronto, Ontario--(Newsfile Corp. - January 29, 2018) - Sprott 2016-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 January 25, 2018, as discussed in the Partnership's press release of November 17, 2017. The Partnership was subsequently dissolved on January 26, 2018.
3,220,569 Series F shares of the Resource Fund ("Fund Shares") were issued at their net asset value of $10.9562 per Fund Share. The final net asset value per Partnership unit for purposes of the Mutual Fund Rollover Transaction was $35.3276 per Partnership unit. Accordingly, each holder of Partnership units will receive 3.2244 Fund Shares for each Partnership unit held. The adjusted cost base for each Partnership unit was $24.3225 per Partnership unit and the adjusted cost base for each allocated Fund Share was $7.5430 per Fund Share. The after-tax return was 154.02% for an Ontario investor taxed at the highest marginal rate.
For investors looking for another tax-advantaged investment, Ninepoint Partners LP has filed and received a receipt for a final prospectus dated January 22, 2018 offering units of a new flow-through limited partnership, Ninepoint 2018 Flow-Through Limited Partnership. The prospectus contains important detailed information about the securities being offered. Investors should read the prospectus before making an investment decision.
The Sprott Resource Fund had strong performance of 23.41% in 2017, outperforming its benchmark (Blended Index, see table below) by 24.61%.
|Annualized Since Inception|
|Resource Class - F||SPR107||12/29/17||7.18||23.41||30.89||23.41||26.87||9.95||2.68|
All returns and fund details are a) based on Series F shares; b) net of fees; c) annualized if period is greater than one year; d) as at December 29, 2017. *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 Ninepoint Partners LP based on available index information.
The Resource Fund is generally exposed to the following risks. See the prospectus of the Resource 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.
Ninepoint Partners 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 F shares of the Fund for the period ended December 29, 2017 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.ninepoint.com, through a broker or by calling Ninepoint Partners LP at 1-866-299-9906. Information about the Ninepoint 2018 Flow-Through Limited Partnership is available through the dealers or by contacting us directly at 1-866-299-9906 or [email protected].
About Ninepoint Partners LP
Ninepoint is an operating company that has been created to assume portfolio management of the Canadian diversified assets of Sprott Asset Management LP, including actively managed hedge and mutual funds.
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.
About Sprott Asset Management LP
Sprott Asset Management LP is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toronto with offices in New York, Carlsbad and Vancouver and its common shares are listed on the Toronto Stock Exchange under the symbol (TSX: SII). For more information, please visit www.sprottinc.com.
"Sprott" is a registered trademark of Sprott Inc. used under license.
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expects", "intends", "anticipates", "will" and similar expressions to the extent that they relate to the Partnership. The forward-looking statements are not historical facts but reflect the General Partner's, Ninepoint's and Sprott's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the General Partner, Ninepoint and Sprott believe the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Neither the General Partner, nor Ninepoint or Sprott undertake any obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.