TORONTO Sentry Select Capital Corp. (the “Manager”) is pleased to announce that Sentry Select MBS Adjustable Rate Income Fund II (the “Trust”) has issued an additional 1,275,000 Trust Units for gross proceeds of $12,750,000 pursuant to the exercise by the agents of their over-allotment option. Including the over-allotment, the total gross proceeds of the Trust’s recent public offering is $322,750,000.Trading Information The Trust Units began trading on the Toronto Stock Exchange on April 19, 2005 under the symbol MGS.UN.
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, Annaly and FIDAC had gross assets under management of approximately US$38 billion.
Agents The Units were offered through a syndicate of agents co-led by RBC Dominion Securities Inc., CIBC World Markets Inc. and National Bank Financial Inc., which includes 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 Capital Corp. 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;
More Information - Investor Services for broker/investor inquiries or Brian McOstrich for media inquiries. Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
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).