BluMont Capital Corporation

BluMont Capital Corporation

October 17, 2012 16:15 ET

BluMont Man-IP 220 Series 3 and 4 Notes to Discontinue Trading

TORONTO, ONTARIO--(Marketwire - Oct. 17, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY NON-CANADIAN SOURCE.

The unprecedented events in global financial markets have proven challenging for a large number of principal protected note products. As a result of the ongoing market turmoil, two of the four series of the BluMont Man-IP 220 Notes Program will discontinue trading as of November 1st, 2012. The series of the BluMont Man-IP 220 Note Program (the "Note Program") which are affected are Man-IP 220 Series 3 and 4 Notes. The investment exposure to the IP 220 Portfolio 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 IP 220 Portfolio component of the Note Program has diminished to an amount below which it was no longer efficient to continue investing in the IP 220 Portfolio. 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 - 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 October 31st, 2012.

Beginning with the November 2012 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.

About Man

Man is a world-leading alternative investment management business. It has expertise in a wide range of liquid investment styles including managed futures, equity, credit and convertibles, emerging markets, global macro and multi-manager, combined with powerful product structuring, distribution and client service capabilities. As at June 30, 2012, Man managed $52.7 billion.

The original business was founded in 1783. Today, Man is listed on the London Stock Exchange and is a member of the FTSE 250 Index with a market capitalisation of around £1.3 billion.

Man is a signatory to the United Nations Principles for Responsible Investment (PRI) and a member of the Dow Jones Sustainability World Index and the FTSE4Good Index. Man also supports many awards, charities and initiatives around the world, including sponsoring the Man Booker literary prizes and the Man Asian Literary Prize. Further information can be found at www.man.com.

About BluMont Capital

From mutual funds to alternative solutions, BluMont Capital's products are designed to protect your capital regardless of market conditions. We have the vision to go beyond convention by empowering our portfolio managers with flexible mandates and the freedom to perform in any market environment.

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$1.9 billion in assets and committed capital under management in private corporate debt, real estate, private equity, managed futures, global bonds and retail alternative investments (www.iamgroup.ca).

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

Contact Information

  • BluMont Capital
    James Wanstall
    Chief Executive Officer
    (416) 216-3566 or 1 (866) 473-7376

    Citibank Canada
    Sreenath Kodancha, CFA
    Vice President, Derivatives & Structured Products
    (416) 947-5388