# Central Fund of Canada

Central Fund of Canada is an Asset Manager based in Ancaster, Canada.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Ancaster, Canada
- **Region:** North America
- **Address:** Ancaster, ON, Canada
- **Founded:** 1961
- **Assets under management:** Undisclosed
- **Website:** centralfund.com

## Regulatory record

- **Reports private funds:** No

## About

Central Fund of Canada holds gold and silver bullion in a secure facility. It provides a convenient option for investors in its shares.

## Sectors

- Precious Metals

## Questions

### Why did Sprott Asset Management target Central Fund of Canada?

Sprott identified Central Fund of Canada as a structurally inefficient closed-end fund trading at a persistent discount to net asset value. Because the charter mandated physical-only holdings with no active management, Sprott argued that the fund's legacy governance and fee structure created an arbitrage opportunity. By acquiring shares and campaigning for conversion into the Sprott Physical Gold and Silver Trust, Sprott aimed to realign the vehicle with its own lower-fee, exchange-listed structure (per Reuters, January 2018).

### How did Central Fund of Canada compare to gold ETFs like GLD?

Central Fund of Canada was a closed-end fund, not an ETF, which meant it issued a fixed number of shares rather than creating and redeeming units in response to demand. This structure caused the share price to deviate from net asset value — sometimes at a discount, sometimes at a premium. ETFs like SPDR Gold Shares (GLD) use an authorized-participant mechanism to keep market price tightly aligned with NAV. Central Fund also held a dual-metal mandate (gold and silver), whereas GLD is gold-only.

### What happened to existing shareholders when the fund converted?

Shareholders who approved the transaction in January 2018 exchanged their Central Fund of Canada shares for units of the Sprott Physical Gold and Silver Trust on a one-for-one basis. The conversion was designed to be tax-deferred for Canadian investors. Those who voted against the takeover retained dissent rights, allowing them to demand fair value for their shares as determined by a court process (per Reuters, January 2018).

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Last updated: 2026-06-03T20:00:00.000Z

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