Sprott Global REIT & Property Equity Fund

Transcription

1 Sprott Global REIT & Property Equity Fund

2 Sprott Global REIT & Property Equity Fund Investment Objective The investment objective of the Fund is to provide stable monthly cash distribution and long-term total return through capital appreciation by providing exposure to the global real estate securities market. The Fund invests primarily in real estate investment trusts ( REITs ), equity-based securities of companies in the global real estate sectors (residential and commercial) and structured products that hold real estate related investments. Fund Details Fund Type Real Estate Equity Inception Date August 4, 2015 Registered Tax Plan Status Min. Initial Investment $1,000 Min. Subsequent Investment $25 Valuations 100% Eligible Daily Management Fee 2.00% Annually (Series A) Performance Fee Min. Investment Term Risk Tolerance Distributions No Performance Fee 30 days (2% penalty) High Monthly Fund Codes Code Series A SPR 131 Series A - LL SPR 134 Series F SPR 132 sprott global reit & property equity fund 1

3 Sub-Advisor Capital Innovations, LLC is a real assets manager, providing global specialized investment management solutions to some of the largest public pension funds, sovereign wealth funds and family offices. It distributes investment products globally in partnership with leading financial institutions. Michael Underhill Chief Investment Officer, Capital Innovations Michael has more than 23 years of investment industry experience. In 2007 he co founded Capital Innovations, LLC, an independent employee-owned, boutique real assets manager providing infrastructure, timber, and agriculture focused investment strategies. Prior to founding the company, he held senior positions at AllianceBernstein Investment Management, INVESCO/AIM Management Group, and Janus Capital. Michael began his career as an investment analyst at Lehman Brothers. Michael is a frequent contributor on CNBC, Bloomberg Television and BNN. He is author of the Handbook of Infrastructure Investing (recommended by the CFA Institute). His work has been published in top academic and industry journals and in major newspapers, including The Wall Street Journal, New York Times and The Financial Times. Susan Dambekaln Portfolio Manager, Capital Innovations Susan has more than 20 years of investment industry experience. In 2007 she co founded Capital Innovations, LLC, an independent employee-owned, boutique real assets manager providing infrastructure, timber, and agriculture focused investment strategies. Prior to co-founding the firm, she held positions at State Street Global Advisors and Strong Capital Management institutional asset management groups where she served across taxexempt and taxable institutional portfolios. She has also spent a portion of her career in investment accounting, taxation and investment administration with HR Block and Edward Jones. Susan s professional focus at Capital Innovations includes strategic leadership of the firm and day-to-day management, equity valuation, risk and modeling. sprott global reit & property equity fund 2

4 Property Investments What are they? Property is an essential component of the global economy and includes commercial and residential real estate assets around the world. Today s global property investment market has been transformed by increasing adoption of REITs and REIT-like structures, as more countries seek to encourage broader public investment in commercial real estate. Why Invest? 1. Consistent income streams 2. Potential hedge against inflation 3. Leverage to economic growth What are REITs? Real Estate Investment Trusts (REITs), are companies that own or finance income-producing real estate. In general, REITs are required to distribute the majority of their taxable net income to investors. REITs must also adhere to certain restrictions on their operations, organization and ownership. In return, REITs do not have to pay corporate taxes on the net income and capital gains they distribute, thereby reducing their tax burden. Property investments can be divided into the following key sectors: Office, Retail, Multi-Family Residential and Industrial. Office The key driver of demand for office space across the globe is job growth. While this can lead to volatility in the sector, the long-term nature of office leases provides a mitigating factor leading to relatively stable cash flow streams coupled and upside growth potential. Retail The performance of retail property assets is driven by retailer demand for space in the short term and by trends in consumer spending over the long term. Multi-year lease structures that often incorporate regular rent increases, generate relatively stable, long-term cash flow streams. Multi-Family Residential The main performance drivers of these assets include employment levels, the available supply of rental housing and competition from for-sale housing. Although this sector tends to be more volatile, it can provide significant inflation protection and attractive return potential during periods of economic growth. Industrial The performance is driven by trends in consumer spending, manufacturing and import/export activity. The industrial sector is generally viewed as relatively stable and defensive, due to the long-term nature of its lease structures. sprott global reit & property equity fund 3

5 Portfolio Selection Process Universe Screening Company Analysis Investment Process Macro Fundamental Analysis Analytical Framework n A combination top-down and bottom-up process n Macro views determine sector and regional allocations n Detailed company-level analysis is supported by a robust analytical framework Portfolio construction and oversight by the Allocation Committee All publicly traded property equity securities & REITs The Sub-advisor seeks to find the securities that have the best prospects for aboveaverage returns. Trade on a major exchange and exhibit liquidity, political stability and ownership of tangible assets. Screen for financial strength. Select companies with attractive valuations for the portfolio (20-50). Risk Mitigation To mitigate risk, the Sub-advisor follows a strict, repeatable stock selection process and sell discipline. Each security added to the portfolio has a sell target price; and each holding is monitored for any change in fundamentals, competitive positioning and investment thesis and the sell targets are adjusted accordingly. Country Risks Company Risks Security Risks Political and legislative risk Corruption High debt, large deficits, weak currencies Adequate financial disclosure; lax accounting standards Business risks Management depth or experience Financial resources Limited stock liquidity Custody sprott global reit & property equity fund 4

6 Sprott Asset Management LP Royal Bank Plaza, South Tower 200 Bay Street, Suite 2700 Toronto, Ontario M5J 2J1 Toll Free: Facsimile: The risks associated with investing in a Fund depend on the securities and assets in which the Fund invests, based upon the Fund s particular objectives. There is no assurance that any Fund will achieve its investment objective, and its net asset value, yield and investment return will fluctuate from time to time with market conditions. There is no guarantee that the full amount of your original investment in a Fund will be returned to you. The Funds are not insured by the Canada Deposit Insurance Corporation or any other government deposit insurer. The Fund is generally exposed to the following risks. See the Simplified Prospectus of the Fund for a description of these risks: capital depletion risk, concentration risk, credit risk, currency risk, derivatives risk, emerging markets risk, equity real estate investment trust (REIT) risk, exchange traded funds risk, foreign investment risk, income trust risk, inflation risk, interest rate risk, liquidity risk, market risk, real estate risk, regulatory risk, series risk, short selling risk, specific issuer risk, tax risk. Sprott Asset Management LP is the investment manager to the Sprott Funds (collectively, the Funds ). Important information about these Funds, including their investment objectives and strategies, purchase options, and applicable management fees, performance fees (if any), and expenses, is contained in their prospectus or offering memorandum. Please read these documents carefully before investing. Commissions, trailing commissions, management fees, performance fees, other charges and expenses all may be associated with investing in the Funds. 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. 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. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction /15_SAM_BRO_SGRPEF_E