TORONTO, Oct. 10, 2012 /CNW/ - Sprott Asset Management LP ("Sprott") today announced that it proposes to merge Sprott All Cap Fund into Sprott Canadian Equity Fund to streamline its fund family, while benefiting unitholders by having a larger, more cost-efficient fund. Units of Sprott All Cap Fund will cease to be available for sale effective immediately. Through the merger, holders of units of each series of Sprott All Cap Fund will receive units of the equivalent series of Sprott Canadian Equity Fund, determined on a dollar-for-dollar basis.
Sprott will seek the approval of the unitholders of Sprott All Cap Fund and the approval of the applicable securities regulator for the merger. Unitholder approval will be sought at a special meeting to be held on or about December 11, 2012. In November, a proxy voting package and information circular detailing the proposed merger will be sent to investors in Sprott All Cap Fund who are entitled to vote. If the requisite approvals are obtained, it is expected that the merger will be implemented effective on or about December 14, 2012. As soon as practicable following the merger, Sprott All Cap Fund will be wound up. The Independent Review Committee of each of the funds will review the potential conflict of interest matters related to the proposed merger to provide its recommendation as to whether the proposed merger, if implemented, would achieve a fair and reasonable result for each of the funds.
Sprott expects that following the merger, the portfolio management team for Sprott Canadian Equity Fund will continue to consist of award winning investment professionals Eric Sprott, Allan Jacobs and Peter Imhof. The Fund invests primarily in the equity securities of small-to-mid capitalization Canadian companies and is managed with a macro-driven high conviction style of investing. Since its inception in September 1997, the Fund has generated positive long-term returns and, in the view of Sprott, could be considered as a complement to traditional Canadian equity funds.
Sprott Asset Management LP (www.sprott.com), a wholly owned subsidiary of Sprott Inc. (www.sprottinc.com), is a fund company dedicated to achieving superior returns for its investors over time. Sprott Asset Management LP manages assets primarily for institutions, endowments and high net worth individuals and is the investment manager of the Sprott Mutual Funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder 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 should consult their financial advisor to determine if the Sprott Mutual Funds may be sold in their jurisdiction.
SOURCE: Sprott Asset Management LP