A propeller assembly including a Kort nozzle is formed of a plurality of propeller blades mounted for rotation on a shaft. The Kort nozzle circumferentially encloses the outer edge of the propeller blades and has an outwardly extending annular groove formed in its inner surface arranged opposite the outer edges of the blades. Secured to the outer edges of the blades for rotation therewith, is an annular member which forms a closure for the opening to the annular groove in the nozzle. The annular member is positioned in combination with the inner surface of the Kort nozzle to form a pair of narrow openings to the annular groove spaced apart in the propulsion direction of the propeller assembly.
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