Bloom Funds Plans to Wind Down Bloom Select Income Fund
Bloom Funds Announces Fund Termination
Recently, Bloom Investment Counsel, Inc. has made a significant decision regarding the Bloom Select Income Fund (TSX: BLB.UN). Despite the fund's commendable performance since its inception, the management has decided to terminate the fund. This unexpected announcement comes as the company aims to serve the best interests of its unitholders.
Reasons Behind the Termination
The management team recognized that the Bloom Select Income Fund was experiencing challenges due to its small size. The limited scale has resulted in increased Management Expense Ratios (MER) and reduced trading liquidity for investors. After careful consideration, the Board of Directors concluded that discontinuing the fund would ultimately benefit investors.
Distribution and Delisting Information
As part of the termination process, unitholders will receive their pro-rata share of the net assets of the Fund, following the settlement of all liabilities. This cash distribution is to be completed by a designated date. In addition, an application has been submitted for the voluntary delisting of the Fund from the Toronto Stock Exchange, with the last trading day set ahead.
Alternative Investment Options
To support unitholders seeking to maintain their investments in similar vehicles, the management has recommended the Blue Ribbon Income Fund. This alternative fund aims to provide high monthly distributions, mirroring the investing objectives of the Bloom Select Income Fund.
Investment Goals of Blue Ribbon Income Fund
Investors interested in capital appreciation alongside steady income can consider the Blue Ribbon Income Fund. With the same portfolio management team, this fund aligns well with the goals that unitholders aimed for in the Bloom Select Income Fund.
Changes in Distribution Payments
In light of upcoming changes, the Bloom Select Income Fund recently paid its last declared monthly distribution of $0.041674 per unit to unitholders of record. After this payment, monthly distributions have been halted, and unitholders can expect payment of the undistributed amounts as part of the final liquidation process.
Contact Information for Unitholders
As this transition unfolds, unitholders seeking more information or personalized advice are encouraged to reach out to Unitholder Information at 416-861-9941 or 1-855-BLOOM18 (1-855-256-6618). Additionally, further details are available on the official Bloom Funds website.
Frequently Asked Questions
What is the Bloom Select Income Fund termination?
The termination refers to the decision to discontinue the Bloom Select Income Fund due to operational challenges.
When will unitholders receive their final distribution?
Unitholders will receive their final distribution after all liabilities are addressed, and this is expected to be completed soon.
What can investors do after the fund's termination?
Investors are encouraged to consider the Blue Ribbon Income Fund as a suitable alternative investment.
Who manages the Blue Ribbon Income Fund?
The Blue Ribbon Income Fund is managed by the same team that oversaw the Bloom Select Income Fund.
How can unitholders get more information?
Unitholders can contact Unitholder Information at 416-861-9941 or visit the Bloom Funds website for more details.
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