TORONTO, Oct. 21, 2016 (GLOBE NEWSWIRE) -- The 2016 Federal Budget announced a proposal to eliminate the deferral of capital gains tax for investors switching between different classes of shares within a mutual fund corporation. After evaluating the impact of this change to the tax treatment of switches between classes of shares of a mutual fund corporation, Sprott Asset Management (“Sprott”) today announced that it has decided to terminate each of Sprott Canadian Equity Class, Sprott Gold and Precious Minerals Class, Sprott Gold Bullion Class and Sprott Silver Bullion Class (the “Terminating Funds”) effective on or about December 30, 2016 (the “Termination Date”). Sprott has made this decision based on the size of the Terminating Funds and the fact that there is an existing trust fund version of each Terminating Fund.
Investors may switch their shares of a Terminating Fund into another mutual fund offered by Sprott prior to the Termination Date. To maintain exposure to a similar investment mandate, investors may switch shares of a Terminating Fund to the existing trust fund version noted in the chart below. This switch will be a disposition for tax purposes and capital gains or losses will be realized on the switch.
| Terminating Fund | Corresponding Trust Fund | |
| Sprott Canadian Equity Class | Sprott Canadian Equity Fund | |
| Sprott Gold and Precious Minerals Class | Sprott Gold and Precious Minerals Fund | |
| Sprott Gold Bullion Class | Sprott Gold Bullion Fund | |
| Sprott Silver Bullion Class | Sprott Silver Bullion Fund |
Investors may also switch shares of a Terminating Fund to another fund that is a class of Sprott Corporate Class Inc. before the Termination Date on a tax-deferred “rollover” basis so that no capital gains or losses will be realized on the termination of the Terminating Fund.
Effective today, Sprott will waive any redemption fees, short-term trading fees and switch fees for redemptions or switches of shares of the Terminating Funds, and each Terminating Fund is closed to all purchases, including purchases made pursuant to pre-authorized chequing plans.
Sprott will send a notice to each investor in the Terminating Funds regarding the termination.
For further information on Sprott Asset Management LP and the Sprott Mutual Funds, please visit www.sprott.com or call us at (866) 299-9906 or email us at invest@sprott.com.
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. 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.