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BluMont Man Alternative Yield Fund Announces Income Distribution March 21st, 2007 | |||||
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BluMont Capital Inc. Announces Completion of Amalgamation March 2nd, 2007 | |||||
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BluMont Capital Inc. Announces Shareholder Approval of Amalgamation February 28th, 2007 | |||||
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BluMont Quarterly Results February 23rd, 2007 | |||||
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Alternative Yield Fund Announces Distribution February 23rd, 2007 | |||||
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Growing Popularity of PPNs Draws Regulators’ Attention David Parkinson Globe and Mail April 2007 Principal protected notes (PPNs) are one of the fastest growing investment securities in the Canadian retail market and are also one of the most complex and misunderstood. In light of the complexity of the issues surrounding PPNs and the difficulty that the average investor has in fully understanding them, the federal Finance department plans to issue draft ‘principles-based’ regulations for PPN issuers “to ensure better disclosure for investors”. The Canadian Securities Administrators, or CSA, which is the umbrella group for the country’s provincial securities regulators, and the Investment Dealers Association (IDA) of Canada, the industry's national self-regulatory organization, are both studying the issues surrounding PPNs. Last summer the CSA issued a notice and investor alert concerning PPNs, warning about the risks associated with the notes. Since then, "We've been consulting with various industry stakeholders," said Erez Blumberger, the Ontario Securities Commission’s (OSC) manager of corporate finance. He said the regulator has also been consulting with the federal Finance department. The IDA began expressing concerns almost two years ago, in a report on the regulation of hedge funds, which have become a popular underlying asset for PPNs. In spite of the concerns, PPNs have continued to proliferate the retail market. According to investment-industry research firm Investor Economics, assets held under PPNs have increased to roughly $15-billion from about $2-billion five years ago, and grew by 21 per cent in the first six months of 2006. The boom in PPN sales prompted the IDA to take steps to educate dealers and advisors, so that they will be better able to advise their clients on PPNs. The IDA has commissioned a study on due-diligence for PPNs, due to be released in May 2007 in the form of new guidelines for its members. When investing in a PPN, economist Andrew Teasdale of Tamris Consulting suggests that one should consider: 1. At which point the return on the investment will cover the fees and initial charges? 2. How the fees and expenses on the investment will compare to lower cost equity and fixed interest investments? 3. How the return required on the underlying active investment will outperform a low cost lower risk investment? | |||||
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Hurdle rate: The minimum amount a fund needs to earn before performance fees are charged. | |||||
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Issue 33 - May 3, 2007
We hope you enjoyed reading BluMont eNews. You can expect our next issue in June. BluMont eNews is a monthly email publication. We want to hear from you. Send us your comments or questions and let us know what you want to see in BluMont eNews. Email feedback@blumontcapital.com | |||||
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BluMont Capital (BluMont) and Integrated Asset Management (IAM) wish to update clients on the recent amalgamation between the two companies and outline how this will make BluMont a leading provider of retail alternative investments.
Retail investors are becoming increasingly aware that their investment portfolios can be improved by carefully adding alternative investment products to portfolios of traditional equities and fixed income as leading institutions have recognized for many years. BluMont and IAM are committing significant resources to bring investment advisors a broad range of alternative investments to meet their clients’ needs. BluMont, a pioneer in the Canadian retail hedge fund industry, is strategically broadening the scope of its business, from a concentration on hedge funds to include additional alternative asset classes such as private equity and real estate. BluMont is expanding its internal investment management and product manufacturing capabilities. The amalgamation of BluMont with IAM will significantly enhance BluMont’s ability to source, manage and deliver high quality, institutional grade alternative investments to its clients. BluMont will also continue to distribute products in conjunction with leading global investment firms. BluMont’s national sales force will remain an integral part of its growth in the future. BluMont is now fully integrated under IAM’s umbrella. IAM is one of Canada’s largest and most diversified alternative asset management companies with approximately $3 billion in assets and committed capital under management. IAM manages private equity, private debt, real estate and managed futures for leading institutional investors across Canada. IAM’s 37 investment professionals, including those at BluMont, manage assets for institutional investors, high net worth individuals and retail investors. For the benefit of BluMont clients and investors, below is a summary of the events that led to the amalgamation: On February 28, 2007, BluMont announced that shareholders overwhelmingly approved the amalgamation with IAM on the basis of one IAM share for every 2.8 BluMont shares. This was the successful conclusion of a two-step process which began in May of last year. The first exchange offer took place in November on a 3 to 1 share exchange basis. Those shareholders who tendered have now been “topped up” with the cash equivalent which was about $0.04 per BluMont share. With a broader shareholder base, IAM announced in March that it has received conditional approval to list the IAM shares on the TSX. This should take place in May or June. With an expanded investment management team, increasing number of distribution partnerships with global investment firms and strong financial backing, BluMont is positioned to provide a broader and more comprehensive product line-up to a wider audience for years to come. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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BluMont Capital announces the launch of the second series of the Bank of Nova Scotia Deutsche Bank X-Alpha Index Linked Deposit Notes (the “Series 2 X-Alpha Notes”) - a global long/short strategy using indices.
Features of the Series 2 X-Alpha Notes include: - 125% exposure to the upside performance of the Index - Strong historical performance with low correlation1 to global markets - Simple structure with full transparency - Tradeable in the secondary market - Principal protection by The Bank of Nova Scotia - if held to maturity The Series 2 X-Alpha Notes, while structured specifically for the Canadian marketplace, are modeled upon the original Deutsche Bank X-Alpha indices that have a proven track record of positive returns and low correlation1 to equity markets. In addition to a principal protection feature provided by The Bank of Nova Scotia that guarantees the return of an investor's initial investment at maturity, the Series 2 X-Alpha Notes provide the potential for enhanced diversification and positive returns in both rising and falling markets. The Series 2 X-Alpha Notes are 100% RSP eligible as Canadian content and are available to investors until June 22, 2007 for a minimum investment of C$5,000. "The Series 2 X- Alpha Notes represent a unique and exclusive opportunity for Canadian investors to access a proven and highly successful global solution,” says James Wanstall, Executive Vice President, National Sales of BluMont Capital. For more information on the Bank of Nova Scotia Deutsche Bank X-Alpha Index Linked Deposit Notes Series 2 contact BluMont Capital at 1-888-473-7376 or via email at service@blumontcapital.com . 1Historical return and correlation are based on data from 10/22/1996 to 3/31/2007. Past performance of the Index is not indicative of future performance of the Index or the Series 2 X-Alpha Notes. Index Return is net 60bps Borrow fee. Over this period, correlation was 0.08 to SC Universe Bond Index; -0.11 to S&P/TSX 60 Index and –0.17 to MSCI World Index. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
