Bloom Investment Counsel Announces on Fund's Upcoming Closure

Bloom Investment Counsel, Inc. Announces Fund Termination

Bloom Investment Counsel, Inc. (the Manager) has announced significant changes regarding the Bloom Select Income Fund (TSX: BLB.UN), revealing that the fund will cease operations in the near future. Despite the fund's solid performance year after year, the Board of Directors has concluded that dissolution is the best option for unitholders, primarily due to the fund's limited size.

Reason Behind the Fund's Termination

The key factors contributing to this decision revolve around the fund's small size. This limitation has led to increased management expense ratios (MER) and reduced liquidity for its investors. As the market evolves, the need for funds to have adequate scale becomes increasingly imperative. Consequently, the Manager has decided to distribute remaining assets to unitholders after all liabilities are addressed.

Distributions to Unitholders

In accordance with this term, the fund will be distributing cash to all its unitholders. Each will receive their proportionate share of net assets by March 19, 2025, ensuring that assets are distributed fairly and promptly following the fund's termination.

Planned Delisting from the TSX

An application has been submitted for the voluntary delisting of the fund’s units from the Toronto Stock Exchange (TSX). The last trading day for the fund’s units is projected to be on March 5, 2025. This transition underscores the ongoing strategic changes being shaped by market conditions.

Alternative Investment Options

For unitholders looking for alternative investments that mirror the objectives of the Bloom Select Income Fund, the Blue Ribbon Income Fund may present an attractive opportunity. The portfolio management team behind this fund is the same that has overseen the Bloom Select Income Fund. The investment goals of Blue Ribbon Income Fund focus on providing high monthly distributions coupled with potential capital appreciation. For those interested, further details about this alternative can be found through various financial advisories.

Future Distribution Plans

The Bloom Select Income Fund has already declared a monthly distribution of $0.041674 per unit to unitholders who recorded as of the cutoff date. This distribution is scheduled for payment shortly, specifically on January 15, 2025. Following this payment, the fund will halt further distributions, with any funds intended for distribution in January and February 2025 being reallocated as part of the net assets distributed during the termination process.

Contact Information

For additional information, unitholders are encouraged to reach out to Unitholder Information. They can be contacted at 416-861-9941 or 1-855-BLOOM18 (1-855-256-6618). More information regarding the fund and investments can also be found on their primary web channel.

Frequently Asked Questions

What does the termination of Bloom Select Income Fund mean for investors?

The termination signifies the end of operations for the fund, requiring distributions of remaining assets to unitholders.

When will unitholders receive their final distributions?

Unitholders can expect their final distributions by March 19, 2025, following the fund's liabilities settlement.

What alternatives are available for current investors?

Investors may consider the Blue Ribbon Income Fund, which has similar investment objectives and is managed by the same team.

How will the delisting from the TSX affect investors?

The delisting means that no further trading will occur on the TSX after March 5, 2025, marking the official closure of the fund.

Where can I find more information about these funds?

Investors can explore more details through investment advisors or visit the respective fund websites for comprehensive information.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

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