TORONTO - Sentry Select Capital Corp. (“Sentry Select”) is pleased to announce that Sentry Select MBS Adjustable Rate Income Fund II (the “Trust”), an investment trust established under the laws of the Province of Ontario, has closed its initial public offering. Gross proceeds - At the closing, the Trust issued 31,000,000 Units, for total gross proceeds of $310,000,000. The Agents have been granted an over-allotment option to purchase up to an additional 4,650,000 Units.
Investment objectives - The Trust has the following investment objectives:
• to provide holders of units of the Trust with a tax-efficient stream of monthly cash distributions; and • to preserve the net asset value of the Trust. Distributions in any year are targeted to approximate the average 10-year U.S. Treasury Note yield for that year plus 3%. At March 31, 2005, the 10-year U.S. Treasury Note yield was 4.48%. If that rate is sustained for the next year, the targeted yield for the Trust’s first year would be 7.48%. In order to meet its investment objectives, the Trust intends to obtain exposure to the performance of Mortgage-Backed Securities Limited Partnership (the “Partnership”) by virtue of one or more forward purchase and sale agreements.
Investment manager - The Investment Manager of the Partnership is Fixed Income Discount Advisory Company (FIDAC), a wholly owned subsidiary of Annaly Mortgage Management, Inc (NYSE: NLY). Formed in 1994, FIDAC has become one of the leading fixed-income management companies specializing in U.S. agency mortgage-backed and Treasury securities. At December 31, 2004, FIDAC had approximately US$35 billion under management in similar strategies.
Agents - The Agents on the Offering are RBC Dominion Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Wellington West Capital Inc., Desjardins Securities Inc., First Associates Investments Inc., IPC Securities Corporation, Richardson Partners Financial Limited and Rothenberg Capital Management Inc.
The Manager - Sentry Select is the manager of the Trust. Sentry Select is also responsible for providing or arranging for the provision of administrative services required by the Trust.
Sentry Select is a wealth management company with current gross assets under management of approximately $7 billion.
It is the manager or portfolio manager of: • Sentry Select Diversified Income Trust (TSX:SDT.UN); • Diversified Income Trust II (TSX:DTT.UN); • Select 50 S-1 Income Trust (TSX:SON.UN); • Select 50 S-1 Income Trust II (TSX:SDE.UN); • Pro-Vest Growth & Income Fund (TSX:PRG.UN); • Sentry Select Focused Growth & Income Trust (TSX:SFG.UN); • COmmercial and INdustrial Securities Income Trust "COINS" (TSX:COI.UN); • Multi Select Income Trust (TSX:MST.UN, MST.PR.A); • Alliance Split Income Trust; (TSX:ASI.UN, ASI.PR.A); • Premier Value Income Trust (TSX:PVN.UN) • Strategic Energy Fund (TSX:SEF.UN); • MBS Adjustable Rate Income Fund (TSX:MTF.UN); • Mortgage-Backed Securities Trust (TSX:MF.UN; TSX:MF.U); • Sentry Select Blue-Chip Income Trust (TSX:SIT.UN); • Sentry Select Global Index Income Trust (TSX:SGT.UN); • CAPVEST Income Corp. (TSX-V: CVS); • Sentry Select Principal-Protected Blue Chip Notes™ • Three flow-through investment funds. • Eight mutual funds that focus on a broad range of sectors of the economy;
Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (www.sedar.com).