BluMont Capital Corp. has launched the BluMont Man Alternative Yield Fund, a multi-manager/multi-strategy closed-end investment trust that targets a yield of 6% yield per year.

The new fund aims to pay unitholders monthly tax-efficient distributions of 5¢ per Unit (60¢ per year to yield 6% on the subscription price of $10 per unit).

The fund combines exposure to two of Man Investment’s highly diversified and complementary investment programmes: the Glenwood Portfolio and the AHL Diversified Programme (which are not directly available to Canadian investors), both of which are lowly correlated to each other and to stock and bond portfolios.

The Glenwood Portfolio (fund-of-hedge funds) aims to achieve medium-term capital growth with low volatility by allocating assets across a broad range of alternative investment strategies in order to achieve strong risk-adjusted returns.

The AHL Diversified Programme (managed futures) aims to achieve medium-term capital growth by trading a diversified portfolio of stock index, bond, currency, short-term interest rate and commodity (energy, metal and agricultural) futures contracts and other financial derivative instruments.

The investment portfolio will provide initial exposure of approximately 75% to the Glenwood Portfolio and approximately 25% exposure to the AHL Diversified Programme, with a targeted total investment exposure of 130% of net asset value of the trust.

The Alternative Yield Fund is available to investors until February 14 for a minimum investment of $5,000.

“This product offers an exclusive opportunity to invest with one of the world’s largest alternative investment firms — Man Investments” says Steve Kangas, [resident of BluMont Capital. “With bond yields low, investors are looking for alternative forms of generating yield in their portfolios. The BluMont Man Alternative Yield Fund is a stable, lowly correlated alternative to non-traditional yield products”.

A syndicate of investment dealers, led by CIBC World Markets Inc., that includes BMO Nesbitt Burns Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp., Desjardins Securities Inc., Dundee Securities Corp. and Wellington West Capital Inc., will act as agents.