Sprott Corporate Class Funds
A More Tax-Efficient Way to Invest
At Sprott, our mission is to deliver outstanding performance results for our investors over the long-term. We realize that for investors with non-registered assets, growing wealth in a tax-efficient manner is a key consideration.
Sprott Corporate Class Inc. is a Mutual Fund Corporation (MFC) that is designed to address this consideration by optimizing the tax-efficiency of non-registered investments, helping enhance after-tax returns.
What Are Sprott Corporate Class Funds?
Sprott Corporate Class Funds are a suite of different mutual funds set up within a corporate structure. Each investment fund is offered as a separate class of shares within the Corporation. Investing in the Corporation allows switching from one class of shares to another without triggering an immediate taxable event.
Tax-Efficient Fund Switching
Within a Mutual Fund Corporation, it is possible to switch from one Corporate Class Fund to another Corporate Class Fund without triggering an immediate taxable event. Therefore, any unrealized capital gains are allowed to continue to grow and compound within the Mutual Fund Corporation on a tax-deferred basis. Not until the investment is eventually withdrawn from the Mutual Fund Corporation, will it be considered a disposition for tax purposes.
A Mutual Fund Corporation is treated as a single tax entity, and thus, aggregates all income and expenses, as well as any realized capital gains and losses from its underlying share classes. This provides greater flexibility in reducing the frequency and amount of taxable distributions that have to be paid to investors.
Tax-Efficient Income Investing
Interest income earned from the underlying fund's bond holdings may be re-characterized as capital gains. Any capital gains may be deferred until the shares of the Mutual Fund Corporation are redeemed. This may allow for more to remain invested to grow and compound over the long-term.
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.
Available Share Classes
Sprott Canadian Equity Class
Sprott Diversified Yield Class
Sprott Energy Class
Sprott Enhanced Equity Class
Sprott Gold and Precious Minerals Class
Sprott Gold Bullion Class
Sprott Resource Class
Sprott Short-Term Bond Class
Sprott Silver Equities Class
Sprott Silver Bullion Class
Sprott Small Cap Equity Class
Sprott Tactical Balanced Class