Blumont takes over Augen marketing

Date: Wednesday, August 29, 2007
Author: Advisor.ca

BluMont Capital has struck a deal to acquire the portfolio management, sales and marketing, and back-office functions of Augen Capital's flow-through fund business, which includes the Augen Resource Strategy Fund (RSF).

Augen will remain the flow-through consultant responsible for sourcing mineral investments. BluMont will be establishing new flow-through funds and, subject to unitholder approval, will replace Augen as manager of Augen RSF.

"We are delighted that Augen's top-tier investment performance on its flow-through limited partnership offerings is now complemented by a national sales force," said J. David Mason, chair of Augen. "This deal permits Augen to focus on its core expertise — stock selection in the emerging resource sector."

Augen will share the management and performance fees payable by existing and new funds and will share the due diligence fees from the resource issuers in which the funds invest. The agreement expires on December 31, 2010, unless extended by BluMont and Augen.