Sprott 2012 Flow-Through Limited Partnership
Senior Portfolio Manager, Director of Small Cap Investments
Senior Portfolio Manager, Director of Small Cap Investments
Allan Jacobs joined Sprott Asset Management LP in August 2007 as Director of Small Cap Investments, with a focus on the Sprott Small Cap Funds.
Prior to joining Sprott, Allan was Lead Portfolio Manager of Canadian Small Cap Equities and a Managing Director at Sceptre Investment Counsel. There, he managed the Sceptre Equity Growth Fund, the Sceptre Canadian Equity Small Cap Pooled Fund and the Canadian Small Cap component of institutional portfolios. He also managed the Sceptre Small Cap Opportunities Fund, which was launched in January 2007 – now called the Sprott Small Cap Hedge Fund.
Allan was acknowledged for his achievements at Sceptre on several occasions: the Sceptre Equity Growth Fund was awarded the Best Canadian Small Cap Fund over one, three, five and ten year periods at the 2007 Canadian Lipper Fund Awards. The Fund was also a finalist for the 2006 Small Capitalization Equity Fund of the Year and was chosen Canadian Equity Fund of the Year in 2005 at the Canadian Investment Awards. The Small Capitalization Canadian Equity Pooled Fund, also managed by Allan, was awarded Canadian Small Cap Pooled Fund of the Year in 2006. Furthermore, Allan was chosen the 2006 Fund Manager of the Year at the Canadian Investment Awards.
Prior to joining Sceptre, Allan managed the equities of Old Mutual’s largest portfolio in South Africa (a fund with assets of approximately $6 billion at the time), and thereafter, managed Small Cap Canadian Equities at Canada Life Investment Management Limited.
Eric Nuttall is a Portfolio Manager with Sprott Asset Management LP. He joined the firm in February 2003, and over the years, his views on the oil and gas sector are frequently sought by the Business News Network (BNN), a regular contributor to Alberta Oil Magazine, often interviewed by The Globe and Mail, the National Post, the Calgary Herald, and has appeared in both the Wall Street Journal Asia and Barron’s.
Eric is Lead Portfolio Manager of the Sprott Energy Fund, and co-manages the Sprott 2011 and 2012 Flow-Through Limited Partnerships with Allan Jacobs. Eric is a key contributor to Sprott’s internal macro energy forecasts, and supports Sprott’s portfolio management team by identifying top performing oil and gas investment opportunities.
Eric graduated with High Honours from Carleton University with an Honors Bachelor of International Business.
|Eligible for Registered Plans||No|
Fund ObjectiveThe Partnership’s investment objective is to provide for a tax-assisted investment in a diversified portfolio of Flow-Through Shares and other securities, if any, of Resource Issuers with a view to achieving capital appreciation and significant tax benefits for Limited Partners.
The Partnership's investment strategy will be to invest in flow-through shares and other securities, if any, of lower risk Resource Issuers whose principal business will be: (i) mining exploration, development, and/or production, and (ii) oil and gas exploration, development, and/or production and certain energy production that may incur CRCE.
The Sprott Flow-Through Advantage
Sprott believes that it has several competitive advantages in terms of its ability to generate attractive returns investing in flow-through shares:
- Ability to leverage Sprott's existing relationships with hundreds of Canadian resource companies;
- Sprott's long history of investing in common shares of Canadian Resource Issuers;
- Significant experience in investing in the small and mid-cap sectors;
- Breadth of management team with significant experience investing in the natural resource sector; and
- Issuing only one flow-through limited partnership a year enables the Manager to take advantage of attractive flow-through issues throughout the calendar year with fewer conflicts.
Significant Tax Benefits
- Investment is expected to be at least 100% tax-deductible against 2012 taxable income
- Tax deferred rollover to a Sprott corporate class mutual fund expected in 2014
- Investment converts otherwise fully taxable income into future, tax-advantaged capital gains
What are Flow-Through shares?
The Income Tax Act (Canada) contains provisions that allow investors to access expenses incurred by a company, in an effort to assist in financing of resource exploration projects in Canada. Resource Issuers1 can renounce certain exploration expenses2 to investors, who are then able to deduct these expenses against their own income.
What is a Flow-Through Limited Partnership?
Investors can buy flow-through shares directly from Resource Issuers, but in many cases such companies represent high-risk investments. A flow-through limited partnership is an investment vehicle that offers professional management and, most importantly, diversification. The use of a limited partnership permits income tax deductions to be allocated to, and utilized by, limited partners while at the same time providing for limited liability, subject to certain qualifications.
Tax Planning for Individuals
The following table set forth certain financial aspects, based on the estimates and assumptions in the notes to the tables below, for a Limited Partner who is an individual (other than a trust), who has invested $1,000, assuming the investor is an Ontario resident in top marginal tax rate of 46.41%, BC resident in top marginal tax rate of 43.70% and Alberta resident in top marginal tax rate of 39.00% (for further details, please refer to illustrative tables in the Prospectus Summary).
The indicated rates of return for series A/class A securities of the Funds are based on the historical annual compounded total returns including changes in unit/share value and reinvestment of all distributions or dividends and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.