TORONTO (HedgeWorld.com)–BluMont Capital Corp., formerly known as iPerform, launched its first multi-manager principal guaranteed fund, as part of its strategic alliance with Man Investment Products*, London.
The retail fund, BluMont Man-IP 220 Series 1 Note, is modeled on existing Man-IP 220 offerings, which combine hedge funds managed by Man Glenwood and futures trading via Man’s AHL Diversified Program. Fund managers are aiming for a return of 18% per year with the fund, something Man has been able to achieve with past IP 220 issues.
Man raised US$670 million with the IP 200 Series 4 Ltd. Previous HedgeWorld Story And Man recently launched a registered hedge fund of funds for U.S. high net worth investors, a fund that is managed by Glenwood.
Bryan Nykoliation, vice president in marketing for BluMont, said the firm is stressing lack of correlation and potential performance over the fund’s guarantee, which he likened to an air bag on a car. “I wouldn’t buy a car without an air bag,” but that that’s not the reason for buying the car, he said. Investors should be more focused on the fund’s expected low correlation with stocks and bonds, he said.
The fund is available to all Canadian investors with a minimum of C$5,000 (US$3,285) to get in, and is qualified for Canada’s version of the IRA, which is called an RSP. The fund charges a 1.7% annual fee on top of the fees for the underlying funds. Man Glenwood receives 2% of assets and 20% of profits, while the AHL Program charges 3% annually and 20% of profits. The principal guarantee, provided by Citibank Canada, kicks in at the fund’s maturity in November of 2013.
BluMont manages C$280 million (US$184 million), and is a unit of iPerformance Fund Inc. BluMont adopted its new name earlier this month and named a new president. Previous HedgeWorld Story Man Investment Products, which is owned by Man Group plc, managed US$23.1 billion as of October, the latest date available under its reporting method.
*Man Group plc, parent to Man Investment Products, is a minority investor in HedgeWorld.