TORONTO–(BUSINESS WIRE)–Nov. 19, 2003–BluMont Capital Inc. (“BluMont”) (TSXV: BCC) is pleased to announce that its wholly-owned subsidiary, BluMont Capital Corporation, has raised C$35.8 millionwith its third multi-manager/multi-strategy principal guaranteed structured product – the BluMont Man Multi-Strategy Notes (“Multi-Strategy Notes”). The successful offering, which closed November 18,2003, was supported by a syndicate of agents co-led by CIBC World Markets Inc., BMO Nesbitt Burns Inc., RBC Capital Markets, National Bank Financial Inc. and TD Securities Inc., and includingDesjardins Securities Inc., HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Dundee Securities Corporation, First Associates Investments Inc. and Raymond James Ltd.
The Multi-Strategy Notes program is part of BluMont’s strategic alliance with Man Investments, one of the world’s largest independent alternative investment managers. The closing of the Multi-Strategy Notes, along with the BluMont Man-IP 220 Series 1 and Series 2 Notes which were issued earlier this year, brings the total assets raised in the BluMont Man Notes investment program to C$182.2 million.
With the aim of delivering double-digit annual returns with lower than equity market volatility, the Multi-Strategy Notes are modeled upon the original Man Multi-Strategy Guaranteed Limited fund, which has an impressive three-year track record of positive returns each year since its July 2000 inception and an annualized net return of 12.9% as of September 30, 2003. To date, Man Investments has raised over US$ 2 billion worldwide in the Man Multi-Strategy Guaranteed Limited series through five global and nine private launches.
Initial capital invested in the Multi-Strategy Notes will be allocated to a wide range of alternative investment strategies that can be categorized into five broad styles – managed futures, arbitrage, fund of hedge funds, equity hedge, and long/short equities. These strategies have low correlation to each other and to traditional investments, meaning the Multi-Strategy Notes have the potential to enhance portfolio returns, reduce overall risk and provide valuable diversification benefits irrespective of how the markets perform.
In addition to providing a principal repayment guarantee by Citibank Canada that guarantees the return of an investor’s initial investment at maturity, the Multi-Strategy Notes provide C$150 of investment exposure for every C$100 of initial capital invested, and are 100% RSP eligible as Canadian content.
“We are very pleased with the assets raised in our first offering of the Multi-Strategy Notes,” says Toreigh Stuart, Chief Executive Officer of BluMont Capital. “The success of this offering has clearly demonstrated we provide a strong and viable investment solution to those investors seeking enhanced diversification and low correlation to traditional assets.”
Man Investments (“Man”) is one of the world’s largest independent alternative investment managers. A provider of alternative investment solutions since 1983, Man has 15 offices around the world and as of October 31, 2003, assets under management are estimated to be US$ 32.5 billion. Renowned for its pioneering work in developing structured investment products with principal repayment guarantees, Man has successfully launched more than 200 investment vehicles worldwide. Man is part of Man Group plc, an international financial services business that is listed on the London Stock Exchange and is a constituent of the FTSE 100 index of leading companies. The Man Group can trace its origins back to 1783.
BluMont Capital provides Canadian investors the opportunity to invest in leading alternative investment products and is one of Canada’s leading hedge fund companies with assets under management of approximately C$448 million. BluMont Capital is 46.1% owned by Toronto-based Integrated Asset Management Corp. (TSXV:IAM), a premier alternative asset class manager with over C$1.5 billion in assets under management (www.iamgroup.ca) Further information about BluMont Capital can be found at www.blumontcapital.com
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
