TORONTO, Jan. 9, 2012 /CNW/ - Sprott Inc. (TSX: SII) ("Sprott" or the "Company") today announced its preliminary estimate of Assets Under Management as at December 31, 2011 and its preliminary estimates of gross Performance Fees and net sales for the year ended December 31, 2011.
The Company estimates that its Assets Under Management as at December 31, 2011 were approximately $9.1 billion. On a preliminary and unaudited basis, the Company estimates that it generated approximately $4 million in gross Performance Fees for the year ended December 31, 2011, including amounts recognized in previous quarters. Net sales for the year ended December 31, 2011 were estimated to be approximately $1.4 billion.
"In 2011, despite challenging and volatile market conditions, we continued to grow our assets under management and broaden our product shelf. On the year, we generated approximately $1.4 billion in net sales, we increased our AUM by $0.6 billion and we reported significant inflows to our line of fixed income and physical bullion funds," said Peter Grosskopf, CEO of Sprott. "However, the ongoing global financial crisis and movement away from risk assets had the unforeseen effect of dampening enthusiasm for precious metal equities, negatively impacting our investment performance fee generation."
"During the year, we saw the benefits of the increased scale of our organization," continued Mr. Grosskopf. "In 2012, we will continue to drive the growth of our business by leveraging our platform to add new investment managers and products."
This release contains "forward-looking statements" which reflect the current expectations of the Company. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, those listed under the heading "Risk Factors" in the Company's annual information form dated March 22, 2011. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what the Company believes to be reasonable assumptions, the Company cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.
About Sprott Inc.
Sprott Inc. is a leading independent asset manager dedicated to achieving superior returns for its clients over the long term. The Company currently operates through four business units: Sprott Asset Management LP, Sprott Private Wealth LP, Sprott Consulting LP, and Sprott U.S. Holdings Inc. Sprott Asset Management is the investment manager of the Sprott family of mutual funds and hedge funds and discretionary managed accounts; Sprott Private Wealth provides wealth management services to high net worth individuals; and Sprott Consulting provides management, administrative and consulting services to other companies, including Sprott Resource Corp. (TSX: SCP), Sprott Resource Lending Corp. (TSX: SIL) (NYSE AMEX: SILU) and Sprott Power Corp. (TSX: SPZ). Sprott U.S. Holdings Inc. includes Global Resource Investments Ltd, Sprott Asset Management USA Inc., and Resource Capital Investments Corporation. Sprott Inc. is headquartered in Toronto, Canada, and is listed on the Toronto Stock Exchange under the symbol "SII". For more information on Sprott Inc., please visit www.sprottinc.com.
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Investor contact information: (416) 203-2310 or 1 (877) 403-2310 or [email protected]