Sprott Asset Management LP Announces Proposed Mergers and Related Investment Strategy Change, Name Changes and Sub-Advisor Change
TORONTO, Sept. 09, 2016 (GLOBE NEWSWIRE) -- Sprott Asset Management LP ("Sprott") announced today that it proposes to merge (each a "Merger" and collectively, the "Mergers") Sprott Timber Fund and Sprott Global Agriculture Fund into Sprott Global REIT & Property Equity Fund and Sprott Tactical Balanced Fund and Sprott Tactical Balanced Class into Sprott Real Asset Class (each a "Fund" and collectively, the "Funds") and that the names of Sprott Global REIT & Property Equity Fund and Sprott Real Asset Class will change upon the effective date of the Mergers. Each of Sprott Timber Fund, Sprott Global Agriculture Fund, Sprott Tactical Balanced Fund and Sprott Tactical Balanced Class (each a "Terminating Fund" and collectively, the "Terminating Funds") will cease to be available for sale effective immediately, other than for purchases made pursuant to pre-authorized chequing plans. Following the Mergers, pre-authorized chequing plans that have been established for each Terminating Fund will be re-established for the applicable continuing fund, unless securityholders of the Terminating Funds advise otherwise. Through the Mergers, holders of securities of each series of each Terminating Fund will receive securities of its respective continuing fund, determined on a dollar-for-dollar basis. The Independent Review Committee of each of the Funds will review the potential conflict of interest matters related to the proposed Mergers to provide its recommendation as to whether the proposed Mergers, if implemented, would achieve a fair and reasonable result for each of the Funds.
In connection with the proposed Merger of Sprott Tactical Balanced Fund and Sprott Tactical Balanced Class into Sprott Real Asset Class, Sprott also announced today that it will be changing the investment strategies of Sprott Real Asset Class. Sprott Real Asset Class will continue to allocate its assets among various real asset sectors, but will diversify to gain exposure to the energy, gold and precious metals and real estate sectors.
Sprott will seek the approval of the securityholders of each Fund and the applicable securities regulator in respect of the proposed Mergers. Securityholder approval will be sought at special meetings to be held concurrently on or about December 16, 2016. In November, a proxy voting package and information circular detailing the proposed Mergers will be sent to investors in the Funds who are entitled to vote. If the requisite approvals are obtained, it is expected that the Mergers and the related investment strategy change and name changes will be implemented effective on or about December 31, 2016. As soon as practicable following the Mergers, each Terminating Fund will be wound up.
Sprott also announced today that effective on or about December 30, 2016, Capital Innovations LLC will cease to act as the sub-advisor to Sprott Real Asset Class, Sprott Global REIT & Property Equity Fund and Sprott Global Infrastructure Fund (and Sprott Timber Fund and Sprott Global Agriculture Fund, should the proposed Mergers not be effected) (collectively, the "Real Asset Funds"). Sprott will continue to act as portfolio manager to the Real Asset Funds. The Independent Review Committee of the Real Asset Funds will review the potential conflict of interest matters related to this change to provide its recommendation as to whether the change would achieve a fair and reasonable result for the Real Asset Funds.
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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.