Sprott Tactical Balanced Fund
Co-Chief Investment Officer; Senior Portfolio Manager
Co-Chief Investment Officer; Senior Portfolio Manager
Scott joined Sprott Asset Management LP in March 2010 and brings over 24 years of global fixed income and currency market experience to the firm. Earlier in his career, Scott was senior Vice President and Portfolio Manager at AGF Funds Inc. where he managed all fixed income mandates and co-managed the balanced funds. Scott was also a managing director and partner at a Canadian hedge fund focusing on global fixed income and currency management. Prior to joining Sprott, Scott was a Senior Portfolio Manager at TD Asset Management, where he was part of the team responsible for $30 billion of fixed income portfolios.
Scott began his career at the Bank of Canada where he worked in both research and trading, which assisted in the execution of monetary policy. He is a four-time winner of the Best Foreign Bond Fund at the Morningstar Canadian Investment Awards.
Scott is a CFA Charter holder and has an MBA from University of Toronto and an Honours BA from Queens University.
Michael Craig joined Sprott Asset Management LP in May 2010 and brings 12 years of experience developing fixed income analytics, tactical asset allocation and fixed income management. Earlier in his career, Michael worked at Phillips, Hager and North, where he developed the analytics and research systems used by the fixed income team.
Prior to joining Sprott Michael was a Vice President at TD Asset Management. There, he co-managed over $11 billion in assets for various asset allocation programs, and led the portfolio analytics group.
Michael obtained his Masters in Financial Risk Management from Simon Fraser University (2006) and his Bachelor of Commerce from the University of British Columbia (1999). Michael is a CFA charterholder.
Peter Imhof is an Investment Strategist with Sprott Asset Management LP. He joined the firm in August 2007, and together with Allan Jacobs, focuses primarily on the Sprott Small Cap Funds. Peter is also a member of the Sprott Canadian Equity Fund’s and Sprott Tactical Balanced Fund’s Investment Teams.
Peter is a frequent guest on the Business News Network (BNN) and the winner of the 2010, 2011 and 2012 Financial Post Stock Pickers’ Challenge.
Peter began his investment career at Sceptre Investment Counsel in March 1998. From 1998 to 2000, he was involved in the quantitative analysis and portfolio construction of Canadian Equities. Peter was a member of the award-winning management team of the Sceptre Equity Growth Fund and the Small Capitalization Canadian Equity Pooled Fund, and in 2006, was appointed Managing Director.
|Distributions||Income and Capital Gains Distributed Annually (if any) & Reinvested Automatically. Monthly Cash Distributions (T)|
SPR 017 - (A)
|Nature of Securities||Mutual Fund Trust Units|
|Type of Fund||Tactical Allocation|
|Minimum Initial Investment||$1,000 CDN|
|Minimum Subsequent Investment||$100 CDN|
|Minimum Investment Term||60 days (2% penalty)|
|Management Fee||2.25% annual - (A) 2.25% annual - (T) 1.25% annual - (F)|
|Performance Fee||10% of excess over specified benchmark (at the underlying fund level). None applied to direct tactical investments.|
|Eligible for Registered Plans||Yes|
|Investor Risk Tolerance||Medium|
Fund ObjectiveThe objective of the Fund is to seek to provide a total return over the long term by investing primarily in a portfolio of mutual funds that are managed by the Manager, its associates or its affiliates. The Fund may also invest in gold bullion, exchange traded funds and equity and/or fixed income securities.
Detailed Fund Allocation
|Current Weights (Mar 28)||%Nav|
|Sprott Diversified Yield Fund||44.3%|
|Sprott Enhanced Equity Class||13.2%|
|Sprott Canadian Equity Fund||9.9%|
|Sprott Small Cap Equity Fund||9.9%|
|Sprott Energy Fund||7.3%|
|Sprott Short-Term Bond Fund||4.5%|
|Exchange Traded Funds||2.8%|
|Cash and Cash Equivalents||0.7%|
|Sector Allocations - Equities (Mar 28)||%Nav|
|Top 10 Holdings (Mar 28)||%Nav|
|Canada Government 2.75% 01-Jun-2022||4.8%|
|Sprott Strategic Fixed Income Fund||3.4%|
|Canada Government 1.0% 01-feb-2015||3.3%|
|Mexico Government 6.5% 09-jun-2022||1.9%|
|Sea Trucks Group 13.0% 31-jan-2015||1.8%|
|Boyd Group Income Fund||1.3%|
|Home Capital Group Inc.||1.3%|
|The United States Government 2.0% 15-feb-2023||1.3%|
|Asset Mix (Mar 28)||%Nav|
|High Yield Bonds||25.6%|
|Exchange Traded Funds||3.5%|
|Cash and Other Net Assets||8.5%|
|Geographical Allocations (Mar 28)||%Nav|
|Cash and Cash Equivalents||8.7%|
- All data is based on % of Net Assets
- Geographical Allocations exclude cash and bullion
- All data is net of short positions
- All data with the exception of Current Weights, will be based on quarter end data with 1-month lag
- 1 Government Debt includes Government issued short-term investments
The Sprott Tactical Balanced Fund Series A (the “Fund”) gained 1.0% during the first quarter as weakness in precious metals was offset by a strong performance within its fixed-income allocation.
The Sprott Diversified Yield Fund Series I, which earned 2.3%, represented approximately 45% of the Fund at the end of the quarter. This allocation provides the Fund with a 4-6% yield, which provides considerable downside protection. In addition, this allocation has provided return similar to that of high-yield bond funds yet with considerably less volatility.
The Sprott Enhanced Equity Class Series I represented just over 13% of the Fund. This position provides access to an allocation to North American large-cap stocks which are diversified across core industries.
Sprott Canadian Equity Fund Series I, which represented 10.0% of the Fund, declined 9.8% during the quarter, as investors sold precious metals stocks in favour of higher-yielding equities. Gold and silver bullion experienced price weakness throughout February and March, as inflationary fears subsided in light of reports that the US would not have further money printing programs. The drop in bullion prices had a more pronounced effect on smaller-cap resource stocks. This position was maintained to provide the Fund with a non-correlated position which tends to perform in the opposite direction of core equities.
Sprott Energy Fund Series I declined 4.3% as investors globally continued to shun Canadian oil stocks due to concerns revolving around lack of pipeline takeaway capacity and the longer-term trend of US oil production growth. The Sprott Small Cap Equity Fund Series I edged down 0.7% during the period as its 42% allocation to energy and materials stocks weighed on its performance. During an economic recovery, small caps tend to outperform large caps and the Fund maintained a 10.0% to this position.
Sprott Short-Term Bond Fund Series I, which accounted for just under than 5% of the Fund gained 0.9% and is maintained to make tactical adjustments to the Fund.
The Fund’s remaining allocation was spread across select convertible bonds and what are considered to be the best ideas from our equity managers.
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.