Sprott Inc.'s asset management unit is ending the run of the Sprott Growth Fund.
Sprott said Friday that it will seek to merge the Growth Fund with Sprott Small Cap Equity Fund. If unitholders approve the plan, the merged fund will be run by the current managers of the small cap fund, Allan Jacobs and Peter Imhof.
Peter Hodson, who has run Sprott Growth, will remain with the firm, said John Ciampaglia, chief operating officer of Sprott Asset Management.
"Peter will continue to be a Senior Portfolio Manager and be part of the Sprott Asset Management investment team and chairman of the Sprott Asset Management board. Peter will continue to manage the Growth Fund during the Fund's transition."
Sprott Growth has a two stars out of five rating on Globefund.com . The fund experienced a big drop in the financial crisis and never fully recovered. It fell 62 per cent in 2008, a bigger plunge than its peer group. An investor who put $10,000 into the fund in January, 2006, would now have $8,669, according to Globefund.com.
So far this year, the fund is down about 17 per cent, and now has assets of about $60-million.
Sprott Small Cap Equity, by comparison, garners five stars on Globefund.com, and has a much prettier chart since the financial crisis.
Sprott Growth units are no longer available for sale as of Friday.Report Typo/Error