Bloom U.S. Income & Growth Fund
TSX : BUA.UN

Bloom U.S. Income & Growth Fund

October 20, 2014 14:45 ET

Bloom U.S. Income & Growth Fund Redemption Withdrawal

TORONTO, ONTARIO--(Marketwired - Oct. 20, 2014) - Bloom U.S Income & Growth Fund (TSX:BUA.UN) (the Fund) wishes to provide information to unitholders in relation to the upcoming annual redemption of units on October 30, 2014 (the "Annual Redemption Date").

Unitholders who have already properly surrendered their units for redemption under the annual redemption privilege, by submitting a notice of intention to redeem units (a "Redemption Notice"), may wish to consider the following information in light of the current volatility in equity markets.

The redemption price which will be received by redeeming Class A unitholders is 100% of the net asset value ("NAV") per Class A unit on the Annual Redemption Date. On the last day on which a Redemption Notice could be submitted, the NAV per Class A unit of the Fund was $9.31. Since then, the market in which the Fund invests has experienced a correction and as a result the NAV per Class A unit as of October 17, 2014 (the most recent net asset valuation date) was $9.02, a 3.1 per cent drop. In addition unitholders may wish to consider that the Class A units of the Fund are publicly traded and may be sold via the facilities of the Toronto Stock Exchange. The price of Class A units of the Fund was $9.25 as of close of trading on October 17, 2014.

Similarly, the redemption price which will be received by redeeming Class U unitholders is 100% of the NAV per Class U unit on the Annual Redemption Date. On the last day on which a Redemption Notice could be submitted, the NAV per Class U unit of the Fund was US$9.43. The NAV per Class U unit as of October 17, 2014 (the most recent net asset valuation date) was US$9.13, a 3.1 per cent drop.

The Fund cannot predict whether the NAV per Class A or Class U unit will recover to its previous level by the Annual Redemption Date or whether it will decline any further. Therefore unitholders who have submitted a Redemption Notice may not receive the redemption price they may have reasonably expected, and may wish to withdraw their Redemption Notice.

In order to withdraw a Redemption Notice, a unitholder must inform their investment advisor who in turn through their back office must inform CDS with a written notice (a "Withdrawal Notice") of the unitholder's request to withdraw the Redemption Notice. The Withdrawal Notice must be delivered to CDS no later than 5.00 p.m. Toronto time on [October 29, 2014]. The manager of the Fund may permit a withdrawal of a Redemption Notice, provided that such withdrawal does not adversely affect the Fund.

Commissions, management fees and other expenses may all be associated with investment funds. Please read the Fund's publicly filed documents which are available from SEDAR at www.sedar.com. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Contact Information

  • Bloom U.S. Income & Growth Fund
    Investor Relations
    416-861-9941 or 1-855-BLOOM18
    www.bloomfunds.ca