Toronto-based Sprott Asset Management LP proposes to merge Sprott All Cap Fund into Sprott Canadian Equity Fund.
The merger is designed to streamline Sprott’s fund family, while benefiting unitholders by having a larger, more cost-efficient fund, the asset manager said Wednesday.
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 at a special meeting to be held on or about December 11.
If the requisite approvals are obtained, it is expected that the merger will be implemented effective on or about December 14.
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. Sprott says the fund,could be considered as a complement to traditional Canadian equity funds.
Sprott Asset Management LP is wholly owned subsidiary of Sprott Inc. (TSX:SII).