Sprott Physical Gold and Silver Trust began trading on January 16, 2018, on the NYSE Arca (Symbol: CEF) and the Toronto Stock Exchange (Symbol: CEF.U in U.S. dollars and CEF in Canadian dollars).
The launch of Sprott Physical Gold and Silver Trust marks the successful completion of Sprott’s acquisition of the common shares of Central Fund of Canada. Sprott will administer and manage the Central Fund of Canada’s assets, and Central Fund of Canada’s class A shareholders are now unitholders of the Sprott Physical Gold and Silver Trust.
Sprott Physical Gold and Silver Trust provides investors with the unique benefits of Sprott's other industry-leading physical bullion trusts, including fully allocated precious metals; redeemable for physical metals; trustworthy storage; potential tax advantages; easy to buy, sell, and own; a liquid investment. The creation of the Trust also reinforces Sprott’s commitment to providing best-in-class precious metals investments for clients and strengthens our position as one of North America’s leading managers of precious metals funds.
Sprott Asset Management LP ("Sprott") is a global asset manager based in Toronto, Canada that provides investors with access to highly-differentiated precious metals and real assets investment strategies.
Sprott’s offerings include unique physical bullion trusts, mining ETFs, actively managed equity strategies, as well as specialized private equity and debt strategies.
World Class Physical Bullion Fund
The new Trust is a highly-liquid, world-class bullion vehicle managed by a firm with a globally-recognized precious metals franchise.
Market Price Expected to Trade Closer to Net Asset Value
Based on the historical trading of our Physical Bullion Trusts, we expect that the market price of the Trust will trade more closely to the value of the underlying metals in contrast to the recent trading experience of CFCL.
Option to Redeem for Physical Metals*
Investors in the new Trust have the option to redeem their units for physical bullion, as part of the physical redemption feature found in all of Sprott’s physical bullion trusts.
Lower Counterparty Risk
The Trusts’ physical gold and silver bullion assets will be custodied by the Royal Canadian Mint (“Mint”) to minimize counterparty risk. The movement of gold and silver from the current storage provider to the Mint will commence immediately and will take several months to complete.
Greater Market Profile
Unitholders in the Trust may benefit from Sprott’s significant ongoing marketing support to drive liquidity and interest in the Trust.
*Subject to minimum requirements.
CFCL shares will be automatically converted to shares of the new Sprott Physical Gold and Silver Trust. All brokerage firms and dealers of record will update the name of the Fund in shareholder statements and accounts.
No. The transaction is being implemented under the Business Corporations Act (Alberta) on a tax-deferred basis.
Sprott Physical Gold and Silver Trust trades on the NYSE Arca under the symbol (CEF) and on the Toronto Stock Exchange under the symbol (CEF.U for U.S. dollars).
Effective January 16, 2018, the Trust will trade on the NYSE Arca with the ticker symbol CEF and the Toronto Stock Exchange (TSX) with the ticker CEF.U.
Yes, the Trust trades in Canadian dollars on the TSX with the ticker CEF.
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The Sprott Physical Gold and Silver Trust is generally exposed to multiple risks that have been both identified and described in the Management Information Circular. Please refer to the Management Information Circular for a description of these risks.
Past performance is not an indication of future results. All data is in U.S. dollars unless otherwise noted. 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. Sprott Asset Management LP is the investment manager to the Sprott Physical Gold and Silver Trust (the “Trust”). Important information about the Trust, including the investment objectives and strategies, applicable management fees, and expenses, is contained in the Management Information Circular. Please read the document carefully before investing. There are ongoing fees and expenses associated with owning units of a Trust. The Trust must prepare disclosure documents that contain key information about the Trust. You can find more detailed information about the Trust in these documents. Investment funds are not guaranteed, their values change frequently. This communication does not constitute an offer to sell or solicitation to purchase securities of the Trust. The information contained herein does not constitute an offer or solicitation to 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. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Sprott Asset Management LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell. This outlook is subject to change without notice.
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