Sprott Gold & Precious Minerals Fund
Senior Portfolio Manager
Senior Portfolio Manager
Charles Oliver joined Sprott Asset Management LP in January 2008. With over 25 years of financial industry experience, he is now Lead Portfolio Manager of the Sprott Gold & Precious Minerals Fund and co-manages Sprott Silver Equities Class.
Prior to joining Sprott, Charles was at AGF Management Limited, where he led the team that was awarded the Canadian Investment Awards Best Precious Metals Fund in 2004, 2006, 2007, and was a finalist for the best Canadian Small Cap fund in 2007. His accolades also include: Lipper Awards’ best 5-year return in the Precious Metals category (AGF Precious Metals Fund, 2007) and best 10-year return in the Natural Resources category (AGF Canadian Resources Fund, 2007).
Charles began his investment career with Midland Doherty in 1987, and in 1999, joined AGF’s Fund Management department. He went on to become Co-Manager of the AGF Precious Metals Fund, the AGF Global Resources Fund, AGF Canadian Resources Fund and the AGF Growth Equity Fund; Manager of the AGF Canadian Small Cap Fund; and Co-Advisor on the Markland Oilsands Sector Fund. Charles also helped manage institutional funds and funds domiciled in Japan, Ireland, and the UK.
Charles combines a big picture approach with a bottom-up process, and focuses on strong management teams with sound strategy. He looks for growth at a reasonable price (GARP) and generally buys companies with the view of holding them over the long-term.
Charles obtained his Honours Bachelor of Science degree in Geology from the University of Western Ontario in 1987, and obtained his CFA designation in 1998.
|Distributions||Income and Capital Gains Distributed Annually (if any) Distributions are reinvested automatically|
SPR 003 - (A)
|Nature of Securities||Mutual Fund Trust Units|
|Type of Fund||Gold and Precious Minerals Fund|
|Minimum Initial Investment||$1,000 CDN|
|Minimum Subsequent Investment||$25 CDN|
|Minimum Investment Term||90 days (2% penalty)|
|Management Fee||2.5% annual - (A) 1.5% annual - (F)|
|Performance Fee||10% of Excess Over the S&P/TSX Global Gold Total Return Index|
|Eligible for Registered Plans||Yes|
|Investor Risk Tolerance||High|
Fund ObjectiveThe primary objective of this Fund is to provide long-term capital growth. In order to achieve its investment objective, the Fund invests primarily in gold, gold certificates, precious metals and minerals, the certificates relating to such metals and minerals and/or in equity securities of companies that are directly or indirectly involved in the exploration, mining, production or distribution of gold and precious metals and minerals.
Q3 Market Commentary
- The Sprott Gold and Precious Minerals Fund Series A (the “Fund”) increased by 11.9% this quarter, outperforming the S&P/TSX Global Gold Total Return Index, which gained 3.7% on the quarter.
Contributors to Performance
- The Fund had several holdings that gained more than 50% during the third quarter as gold and silver rallied through July and August before giving back some of the gains in September.
- Top performers for the quarter included Osisko Mining Corporation (up 51.4%), Semafo Inc. (up 62.4%) and Guyana Gold Fields Inc. (up 67.4%).
Detractors from Performance
- Detractors from performance during the quarter included Lydian International Ltd., which declined by 50.3% during the period and Barkerville Gold Mines Ltd., which fell by 19.6%.
- Barkerville is in the process of divesting itself of non-core assets to raise cash to focus on two core projects and has made progress on these initiatives subsequent to quarter-end.
Precious metals and their related equities rallied to a strong rebound in July and August before giving back much of the gains in a terrible September for gold and silver. The good news is that we appear to in the midst of the bottoming process. Many companies have announced large budget cuts and significant asset divestitures (such as Barrick Gold’s sale of its Australian assets) to improve their balance sheets. We have also seen dividend reductions from large companies such as Barrick and Kinross (we own neither) seeking to preserve cash. We believe these initiatives could lead to some positive earnings surprises from miners in the coming quarters.
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.