Sprott Gold Equity Fund
Fund Objective & Strategy
Sprott Gold Equity Fund’s* investment objective is long-term capital appreciation. The Fund seeks to achieve its investment objective by investing at least 80% of its net assets, plus borrowings for investment purposes, in gold and other precious metals and securities of companies located throughout the world that are engaged in mining or processing gold. The Fund follows a value approach to investing and the Portfolio Manager will identify companies that are undervalued based on his judgment of relative value and growth potential.
John Hathaway's quarterly commentary on gold bullion and gold mining equities.
Sprott Gold Monitor Q2 2021
A quarterly report of chart analysis on gold's macroeconomic landscape.
Fund Details As of 6/30/2021
|Total Fund Assets||$824.1 Million|
|Minimum Investment||$1,000 ($250 IRA)|
|Total Annual Fund Operating Expenses||1.40%*|
*See Fees & Expenses below for full details.
|Total Fund Assets||$266.5 Million|
|Minimum Investment||$1 Million|
|Total Annual Fund Operating Expenses||1.12%*|
|Investor & Institutional Classes|
|Manager Tenure||John Hathaway 23 Years, Doug Groh 17 Years|
|Dividend Policy (Distributions History)||Annual|
|Redemption Fee||2.00% first 90 days*|
|Transfer Agent||U.S. Bank Global Fund Services|
Average Annual Total Returns (%) As of 8/31/2021
|Fund||1 MO*||3 MO*||YTD*||1 YR||3 YR||5 YR||10 YR||15 YR||20 YR||SI3|
|Sprott Gold Equity Fund (SGDLX)||-4.48||-13.68||-11.37||-17.65||17.84||3.28||-5.57||2.07||9.85||9.50|
|Sprott Gold Equity Fund (SGDIX)||-4.47||-13.63||-11.22||-17.44||-||-||-||-||-||18.21|
|PHLX Gold/Silver Sector Total Return Index (XXAU)1||-6.55||-17.91||-6.00||-11.78||27.81||9.24||-3.67||0.48||5.61||4.02|
|S&P 500 Total Return Index2||3.04||7.95||21.58||31.17||18.07||18.02||16.34||10.90||9.31||8.17|
*Returns for periods less than one year are not annualized.
Average Annual Total Returns (%) As of 6/30/2021
|Fund||1 MO*||3 MO*||YTD*||1 YR||3 YR||5 YR||10 YR||15 YR||20 YR||SI3|
|Sprott Gold Equity Fund (SGDLX)||-11.46||6.29||-9.09||-2.06||13.35||3.02||-4.41||2.39||9.86||9.69|
|Sprott Gold Equity Fund (SGDIX)||-11.44||6.36||-8.97||-1.80||-||-||-||-||-||21.08|
|PHLX Gold/Silver Sector Total Return Index (XXAU)1||-13.76||5.39||-1.25||10.72||21.26||8.59||-2.39||0.97||6.22||4.28|
|S&P 500 Total Return Index2||2.33||8.55||15.25||40.79||18.67||17.65||14.84||10.73||8.61||7.98|
*Returns for periods less than one year are not annualized.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The performance assumes reinvestment of capital gains and dividends. Returns for periods less than one year are not annualized. The Fund’s performance does not reflect the redemption fee of 2.00% for the first 90 days. If deducted, the fee would reduce the performance quoted. Fund performance current to the most recent month-end may be lower or higher than the performance quoted and can be obtained by calling 888.622.1813.
|1||The Philadelphia (PHLX) Stock Exchange Gold and Silver Sector Total Return Index (XXAU) is an indicator of the performance of the common stock of companies in the gold and silver mining industry and reflects the reinvestment of any dividends. The Index performance quoted reflects the following indices and dates: XAU from Oct. 31, 2010 - Oct. 31, 2011, and XXAU onwards. This Index does not incur fees and expenses. You cannot invest directly in an index|
|2||The S&P 500 Total Return Index is a market-value weighted index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. You cannot invest directly in an index.|
|3||Since Inception (SI) date for Investor Class is 6/29/1998; Since Inception (SI) date for Institutional Class is 4/8/2019.|
Growth of $10,000 Since Inception
Calendar Year Total Returns (%)
|Sprott Gold Equity Fund (SGDLX)||31.75||35.24||-16.37||8.91||40.42||-24.89||-2.67||-48.26||-8.72||-15.85||53.34||86.59||-34.93||12.41||39.24||30.03||-5.83||53.65||82.88||21.90||-10.70||21.72|
|PHLX Gold/Silver Sector Total Return Index (XXAU)||36.04||52.57||-16.42||8.91||74.93||-33.45||-17.28||-48.19||-6.70||-19.16||35.92||36.63||-27.74||22.91||12.50||30.56||-7.70||43.96||43.36||7.55||-22.54||6.52|
|S&P 500 Total Return Index||18.40||31.49||-4.38||21.83||11.96||1.38||13.69||32.39||16.00||2.11||15.06||26.46||-37.00||5.49||15.79||4.91||10.88||28.68||-22.10||-11.89||-9.10||21.04|
Fees and Expenses
|SGDLX Investor Class|
|Distribution and Service (12b-1) Fee||0.25%|
|Gross Annual Fund Operating Expenses||1.40%|
|SGDIX Institutional Class|
|Distribution and Service (12b-1) Fee||NA|
|Gross Annual Fund Operating Expenses||1.12%|
Expenses are per the Fund’s most recent prospectus dated February 26, 2021.
As of 6/30/2021
Top 10 Positions (% of net assets)
|MAG Silver Corp.||5.78|
|Corvus Gold Inc.||5.40|
|Osisko Gold Royalties Ltd||3.97|
|Kirkland Lake Gold Ltd||3.56|
|Osisko Mining Inc||3.52|
|SilverCrest Metals Inc||3.26|
|Kinross Gold Corporation||2.91|
|Top 10 Total||46.94|
Asset Allocation (% of net assets)
Equities: Country Weightings* (%)
|Total Number of Equity Holdings||69|
|Weighted Median Market Capitalization||$2.3 Billion|
|Weighted Avg. Market Capitalization||$6.7 Billion|
Equities: Industry Allocation* (%)
|Precious Metals & Minerals||8.26|
Equities: Stage of Development* (%)
|Senior Producers (>$8 Billion)||18.84|
|Mid-Tier Producers/Advanced Developers ($2-$8 Billion)||20.67|
|Small Producers/Developers ($0.5-$2 Billion)||30.62|
|Early Developers/Exploration (<$0.5 Billion)||15.78|
5-Year Risk Measures & Statistics
|Volatility (Standard Deviation)||29.53|
|Alpha vs. PHLX Gold/Silver Sector Index (XAU)||-0.35|
|Beta vs. PHLX Gold/Silver Sector Index (XAU)||0.82|
Volatility is the annualized standard deviation of monthly returns. Sharpe ratio is the return less the risk-free rate divided by the standard deviation and measures risk-adjusted return. Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. Beta is a measure of sensitivity to market movements. R-squared reflects the percentage of a fund’s movements that can be explained by movements in its benchmark index.
John Hathaway, Doug Groh, Maria Smirnova and Shree Kargutkar are members of the Sprott Gold Team which offers world-class expertise in the active management of precious metals equities.
Unparalleled in scope and breadth, the Team includes portfolio managers, geologists, analysts and traders who together boast more than 325 years of combined precious metals investment experience. Learn more about the Sprott Gold Team
You Gotta Have Faith
June's gold selling was almost entirely a knee-jerk synthetic affair driven by algorithmic, headline scanning robotic macro funds. We believe the smackdown was a temporary reaction to the perceived change in the Fed's posture towards possible balance sheet reduction. In our opinion, gold and gold mining stocks are compelling buys and the investment rationale for precious metals exposure remains unscathed.
The Gold Investment Thesis Revisited
Defensive investment strategies are few and far between. Fixed income, debased by artificially low rates, no longer passes muster. Selling volatility to generate income seems like a form of insanity. Gold is the obvious answer. Whether in physical form or precious metals mining shares sporting good dividend yields and trading at depressed valuations, this unwanted investment strategy will prove seaworthy for all conditions.
One of the Greatest Bubbles in History
The fate of the stock market and the outlook for gold are more intertwined than most realize. Gold has been performing well, but its outperformance is a well-kept secret. If a general bear market sets in, more investors will embrace gold and gold mining stocks. In the meantime, macroeconomic and valuation factors continue to build in gold's favor.
Annual Report Letter to Shareholders
Sprott Gold Equity Fund’s annual fiscal period (November 1, 2019, to October 31, 2020) marked nearly a full year under the new guidance of Sprott Asset Management LP. As you are aware, Sprott acquired what was formerly Tocqueville Gold Fund in January 2020, along with the portfolio management group that had managed the Fund since its launch in June 1998.
Gold, The Simple Math
The current pullback in the precious metals sector is a buying opportunity. It is possible that gold and gold mining shares could continue to chop sideways-to-lower until the U.S. presidential election results are known and even into yearend as the implications are sorted out. We believe that now is the time to start layering in gold exposure, not when the rest of the world tries to do so.
A Very Fat Pitch
We believe that the macro forces for gold and gold mining stocks have coalesced into what may be one of the 'fattest investment pitches' of our time. A fat pitch is a momentary event, akin to catching a major trend change in the financial markets. Such opportunities do not come around often. They deserve serious consideration and expeditious response.
Secular Gold Bull Resumes with Force
Gold is on the cusp of breaking out to all-time highs in U.S. dollars and has already done so in virtually every other currency. Gold mining stocks continue to lag the metal and, in our opinion, represent a compelling investment opportunity.
John Hathaway explores why investing in gold makes sense for most investors and how it helps protect portfolios.
Doug Groh looks at how gold mining equities have been revitalized by improved managements and M&A.
Insights from Sprott
How To Invest
You may purchase shares of Sprott Gold Equity Fund through:
- Authorized financial intermediaries including securities dealers
- The Fund’s distributor, Sprott Global Resource Investments
- The Fund’s transfer agent, U.S. Bank Global Fund Services, by mailing in account applications; please telephone 844.940.GOLD (4653) for assistance. All applications should be mailed to:
Sprott Gold Equity Fund
c/o U.S. Bank Global Fund Services
615 E. Michigan St., FL3
Milwaukee, WI 53202-5207
Shares of the Fund have not been registered for sale outside of the United States, Puerto Rico, Guam and the U.S. Virgin Islands. The Fund generally does not sell shares to investors residing outside the United States, Puerto Rico, Guam and the U.S. Virgin Islands, even if they are United States citizens or lawful permanent residents, except to investors with United States military APO or FPO addresses.
The prospectus includes more detailed information regarding how to purchase, redeem or exchange Fund shares. Please read the appropriate prospectus carefully before investing. If you have questions or would like more information please contact us at 888.622.1813 or email email@example.com, or speak to your Financial Advisor.
Who may want to invest in the Sprott Gold Equity Fund?
- Long-term investors seeking to add an actively-managed mutual fund of gold mining equities and physical gold bullion to a diversified investment portfolio
- Investors seeking potential growth over time
- Investors who can tolerate short-term fluctuations in net asset value (“NAV”) per share
- Investors seeking long-term preservation of capital (sufficient growth to outpace inflation over an extended period of
time) and growth of capital
|SGDLX – Investor Class
|SGDIX – Institutional Class
Prospectuses & Reports
SGDLX Investor Class
- SGDLX Investor Class - Statutory Prospectus
- SGDLX Investor Class - Summary Prospectus
- SGDLX Investor Class - Statement of Additional Information
SGDIX Institutional Class
- SGDIX Institutional Class - Statutory Prospectus
- SGDIX Institutional Class - Summary Prospectus
- SGDIX Institutional Class - Statement of Additional Information
Annual and Semi-Annual Reports
- Semi-Annual Report - Sprott Gold Equity Fund, June 30, 2021
- Annual Report - Sprott Gold Equity Fund, December 31, 2020
(covering new fiscal year period ending 12/31/2020)
- Annual Report - Sprott Gold Equity Fund, October 31, 2020
(covering old fiscal year period ending 10/31/2020)
- Semi-Annual Report - Sprott Gold Equity Fund, April 30, 2020
- Annual Report - Tocqueville Gold Fund, October 31, 2019
- Semi-Annual Report - Tocqueville Gold Fund, April 30, 2019
Distributions to Shareholders History
|Fiscal Year Ending October 31||Dividends from Net Investment Income||Distributions from Net Realized Gains||Total Distributions|
To learn more about Sprott Gold Equity Fund, please telephone a Sprott representative at 888.622.1813 or email firstname.lastname@example.org.
Portfolio facts and statistics are shown for Investor Class shares only unless otherwise noted; other classes may have different characteristics.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus which should be considered carefully before investing. Click here to obtain the prospectus or call 888.622.1813.
Past performance is not a guarantee of future results. All data is in U.S. dollars unless otherwise noted. The Fund invests in gold and other precious metals, which involves additional and special risks, such as the possibility for substantial price fluctuations over a short period of time; the market for gold/precious metals is relatively limited; the sources of gold/precious metals are concentrated in countries that have the potential for instability; and the market for gold/precious metals is unregulated. The Fund may also invest in foreign securities, which are subject to special risks including: differences in accounting methods; the value of foreign currencies may decline relative to the US dollar; a foreign government may expropriate the Fund’s assets; and political, social or economic instability in a foreign country in which the Fund invests may cause the value of the Fund’s investments to decline. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.
Morningstar Ratings are as of 6/30/2021. Ratings may reflect fee waivers in effect; in their absence, ratings may have been lower. Ratings for other share classes may vary. As of 6/30/2021, the Investor Class was rated against the Equity Precious Metals Funds category over the following time periods: 3 stars out of 115 funds over 3 years, 3 stars out of 109 funds over 5 years, and 4 stars out of 86 funds over 10 years. The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. ©2021 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Sprott Gold Equity Fund may be offered only to persons in the United States. This literature should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.
Sector weightings are determined using the Bloomberg Industry Classification Standard (“BICS”).
NOT FDIC INSURED • MAY LOSE VALUE • NOT BANK GUARANTEED
Sprott Asset Management LP is the investment adviser to the Fund. 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. Sprott Global Resource Investments Ltd. is the Fund’s distributor.