Ninepoint 2020 Flow-Through Funds

July 24th, 2020

Year to date, gold bullion has seen a surge in price driven by the unprecedented expansion of central bank balance sheets globally in response to the economic shock caused by Covid-19. Holdings of gold bullion ETFs are at record highs and the price of gold is within striking distance of it’s all time high. So far in 2020 the price of gold has closed over $1800/oz on 12 days and over $1700/oz on 65 days. This compares to 18 and 157 days, respectively, from August 2011 to December 2012. This is impressive if one believes this is the start of a multi-year up trend in gold bullion prices. Despite the strength of the gold bullion price, which will drive greater profitability amongst producers and enhance the economics of undeveloped assets, capital flowing into precious metal equities has been muted. Many precious metal equities, particularly the mid and small cap companies, are trading below their 2016 highs. Gold bullion peaked at $1366/oz in 2016.

The flow-through funds have performed well in concert with the surge in gold bullion and precious metal equities. The cash position in the 2019 Flow-Through funds sits at approximately 7%. The 2019 funds will continue to increase the cash position as the year progresses in anticipation of its termination in early 2021. The balance of the 2019 funds are in precious metal equities (~80%) and uranium equities (10%). The 2020 National Class flow-through fund is 80% invested. Although the 2020 fund has performed well, cash will not be raised until 2021 in order to preserve the net 100% tax deductibility for the 2020 tax year.

Jason Mayer CFA, MBA
Sprott Asset Management
Sub-Advisor to the Fund

 

NAV Details ($) Per Unit as at July 24th, 2020 (Before Tax)

Fund Name NAV
Ninepoint 2020 Flow-Through LP Series $35.43
Ninepoint 2020 Flow-Through LP - Quebec Series $33.67
Ninepoint 2019 Flow-Through LP Series $36.40
Ninepoint 2019 Short Duration Flow-Through LP Series $32.75

The Fund is generally exposed to the following risks. See the prospectus of the Fund for a description of these risks: concentration risk; credit risk; currency risk; cybersecurity risk; derivatives risk; exchange traded funds risk; foreign investment risk; inflation risk; interest rate risk; liquidity risk; market risk; regulatory risk; securities lending, repurchase and reverse repurchase transactions risk; series risk; short selling risk; small capitalization natural resource company risk; specific issuer risk; tax risk.

Ninepoint Partners LP is the investment manager to a number of 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. Please read the prospectus carefully before investing. Commissions, trailing commissions, management fees, performance fees, other charges and expenses all may be associated with investing in the Funds. Mutual 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 Fund may be lawfully sold in their jurisdiction.

The opinions, estimates and projections (“information”) contained within this report are solely those of Ninepoint Partners LP and are subject to change without notice. Ninepoint Partners makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint Partners assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint Partners is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances. Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Ninepoint Partners. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by Ninepoint Partners is or will be invested. Ninepoint Partners LP and/or its affiliates may collectively beneficially own/control 1% or more of any class of the equity securities of the issuers mentioned in this report. Ninepoint Partners LP and/or its affiliates may hold short position in any class of the equity securities of the issuers mentioned in this report. During the preceding 12 months, Ninepoint Partners LP and/or its affiliates may have received remuneration other than normal course investment advisory or trade execution services from the issuers mentioned in this report.

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