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    Etienne Ricard • BMO Capital Markets

    Etienne Ricard's questions to Sprott Inc (SII) leadership

    Etienne Ricard's questions to Sprott Inc (SII) leadership • Q2 2025

    Question

    Étienne Ricard from BMO Capital Markets asked about the Sprott Physical Copper Trust, questioning what is needed to narrow its significant discount to NAV and how trade policy volatility affects demand. He also inquired about Sprott's potential incremental operating margins with rising net flows.

    Answer

    John Ciampaglia, CEO of Sprott Asset Management, attributed the copper trust's discount to the recent CME/LME price dislocation and selling pressure from a specific institution. He stated the primary initiative to close the gap is a pending SEC application to dual-list the vehicle with a more flexible redemption option. CFO Kevin Hibbert and CEO Whitney George addressed margins, explaining that as the high-margin exchange-listed segment grows, the consolidated margin could approach 80%, though this is balanced by reinvestment and a desire to grow other lower-margin, high-fee businesses.

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    Etienne Ricard's questions to Sprott Inc (SII) leadership • Q1 2025

    Question

    Etienne Ricard asked about the investor profile of the physical gold trust amid market volatility, the potential for expanding the ETF offering after the launch of the first active ETF, the AUM level for new ETFs to break even, and the catalysts needed for the Sprott Physical Uranium Trust's discount to NAV to narrow.

    Answer

    John Ciampaglia, CEO of Sprott Asset Management, explained that institutional investors, not retail, are currently driving inflows into the gold trust as they seek portfolio hedges. He noted that the company's focus is on scaling its existing differentiated ETFs rather than numerous new launches, and breakeven points are favorable due to strong, non-commoditized fees. CEO Whitney George added that significant opportunity remains in active management ETFs. Regarding the uranium trust, Ciampaglia identified rising spot prices, new utility contract RFPs for near-term delivery, and positive industry news as key factors that would help narrow the discount to NAV.

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    Etienne Ricard's questions to Victory Capital Holdings, Inc. (VCTR) leadership

    Etienne Ricard's questions to Victory Capital Holdings, Inc. (VCTR) leadership • Q4 2024

    Question

    Etienne Ricard of BMO Capital Markets asked about areas of better-than-expected operating leverage and the company's confidence in its systems to handle the increased AUM from Amundi, as well as the drivers behind strong global strategy performance.

    Answer

    President and CFO Michael Policarpo attributed margin strength and scalability to the firm's 'world-class' single operating platform and strategic partner relationships, which provide confidence in integrating Amundi. He also noted that the RS Global product's outstanding long-term performance and differentiated investment process have been the primary drivers of strong flows in the global and international equity segment.

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    Etienne Ricard's questions to Victory Capital Holdings, Inc. (VCTR) leadership • Q3 2024

    Question

    Etienne Ricard inquired about the strategy for distributing Victory's products in emerging markets through the Amundi partnership and asked about the key factors behind the strong inflows into VictoryShares' free cash flow ETFs.

    Answer

    David Brown, Chairman and CEO, explained that the Amundi distribution agreement is uniform across all geographies and they will work with Amundi's teams to structure products for each region, including emerging markets. For ETFs like VFLO and SFLO, he attributed their early-stage success to a unified sales force that provides solutions to financial advisors, noting that the company has been in the ETF business for over eight years and plans to launch more products.

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    Etienne Ricard's questions to Victory Capital Holdings, Inc. (VCTR) leadership • Q2 2024

    Question

    Etienne Ricard of BMO Capital Markets inquired about Victory Capital's successful product development strategies, particularly in ETFs, and its capital allocation priorities, specifically the balance between share repurchases and cash accumulation ahead of the Amundi transaction closing.

    Answer

    CEO David Brown explained that new product success, especially in ETFs like VFLO, is driven by direct input from clients and sales teams. Regarding capital allocation, Brown stated the company will maintain its strategy of balancing shareholder returns with M&A. He confirmed that share repurchases, an important part of their strategy, will resume as soon as permitted, and the company's strong balance sheet will be further enhanced post-Amundi, positioning it for future consolidation opportunities.

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