BluMont Capital Inc.

BluMont Capital Inc.

December 01, 2008 16:35 ET

BluMont Man Multi-Strategy Series 3 Notes Discontinue Trading

TORONTO, ONTARIO--(Marketwire - Dec. 1, 2008) - The unprecedented events in global financial markets have proven challenging for a large number of principal protected note products. As a result of the recent market turmoil, the BluMont Man Multi-Strategy Series 3 Notes (the "Note Program") has discontinued trading as of December 1st, 2008. The investment exposure to the Multi-Strategy Fund component of the Note Program has been reduced to 0% and the remaining trading capital will be transferred to the Issuer, Citibank Canada, to hold along with the guarantee component of the Note Program.

The amount of assets available for investment in the Multi-Strategy Fund component of the Note Program had diminished to an amount below which it was no longer efficient to continue investing in the Multi-Strategy Fund. By discontinuing trading, the Note Program will no longer be subjected to potential further negative market movements and it will provide investors with the security that the full amount of their initial investment is guaranteed at maturity. The value of the remaining trading capital in the Note Program will be reflected in the ongoing monthly valuations and will also be paid out at maturity over and above the principal repayment guarantee. The monthly valuations of the Note Program will be subject to interest rate fluctuations.

Investors in the Note Program will have two options to consider:

1) Hold to Maturity - Investors would remain invested until the respective maturity date of their investment and receive their principal at a minimum.

2) Redeem - On Class I Notes which still have redemption fees payable, those fees have been waived and investors that wish to forgo their principal guarantee repayment and redeem their investment may do so without penalty or deduction monthly at the then prevailing net asset value.

The fees of the Note Program will be discontinued as of December 1st, 2008; however the servicing fee payable to dealers on the Note Program will continue to be paid up until the end of December 2008. The servicing fee for December 2008 will be payable by the Manager and not the Note Program.

Beginning with the December 2008 Redemption Privilege, the deadline to submit redemption requests for the Note Program will be extended from the current 5th business day of the month to 5 business days prior to the last business day of the month and will be processed on the Redemption Date for such month. Redemption requests received after 5 business days prior to the last business day of the month will be processed on the Redemption Date in the following month.

Man is a world-leading alternative investment management business. With a broad range of funds for institutional and private investors globally, it is known for its performance, innovative product design and investor service. Man manages about USD 61 billion(1) and employs over 1,800 people in 13 countries.

The original business was founded in 1783 and this year it celebrates its 225th anniversary. Today, the parent company, Man Group plc is listed on the London Stock Exchange and is ranked in the top 50 companies of the FTSE 100 Index, with a market capitalization of about USD 5.5 billion(1).

Founded in 2000, BluMont Capital offers investment products designed to provide enhanced diversification and return potential outside of traditional equity and bond investments. BluMont Capital employs a national sales force with over 30 employees and is dedicated to setting new standards in delivering alternative products and services to Canadian retail investors.

BluMont Capital is a wholly owned subsidiary of Toronto-based Integrated Asset Management Corp. (TSX:IAM), a leading Canadian alternative asset investment management company with approximately C$3.5 billion in assets and committed capital under management (www.iamgroup.ca).

(1) Estimated as at the beginning of November 2008

Capitalized terms used herein and not otherwise defined have the meaning ascribed in the Information Statement of the Note Program.

Contact Information

  • BluMont Capital Corporation
    Paul J. Perrow
    President & Chief Executive Officer
    (416) 216-3566
    or
    Citibank Canada
    Mark Downing
    Director, Derivatives
    (416) 947-5384