Toronto-based BluMont Capital Corp. said it will be adding a monthly distribution to the Exemplar Timber Fund.
The monthly distribution will commence on Jan. 31, 2013 and the target distribution rate will be 3% per year.
“Many advisors have been asking for cash flow from the fund as they want it to serve a long-term role in retirees’ accounts to preserve real spending power. With strong dividend growth and total-return expected to be driven by simple supply and demand imbalances, we are able to accommodate their request,” explains James Wanstall, CEO, BluMont Capital.
The fund is sub-advised by Capital Innovations, LLC of Wisconsin, with John Duncanson, a 35 year professional forester and award winning timber analyst, contributing to the management of the portfolio. Capital Innovations’ strategy presents an opportunity for investors to get exposure to timber businesses through a familiar investment vehicle (publically listed companies) rather than typical direct investments in the sector which tend to be private equity-style funds with high investment minimums and very limited liquidity.
Given the lack of timber fund investments for individual Canadian investors, BluMont Capital believes that the fund meets the needs of those investors seeking exposure to this asset class.
Commencement of the monthly distribution is conditional upon, among other things, regulatory approval.