Toronto: Sentry Select Capital Corp. is pleased to announce that an aggregate principal amount of $58.43 of million Bank of Montreal Sentry Select Canadian Income Deposit Notes, Series 1 and Bank of Montreal Sentry Select R.O.C. Canadian Income Deposit Notes, Series 1 has been issued. Sentry Select is also pleased to announce the launch of Series 2 for both Notes.
Basket portfolio: Bank of Montreal Sentry Select Canadian Income Deposit Notes, Series 2 and Bank of Montreal Sentry Select R.O.C. Canadian Income Deposit Notes, Series 2 (“the Notes”) are deposit notes, to be issued by Bank of Montreal. The performance of the Notes is linked to the appreciation of a basket comprised of (i) an income trust portfolio managed by Sandy McIntyre, Canada’s premier income trust manager (“Income Portfolio”, and (ii) a notional bond portfolio (“Notional Bond Portfolio”). The Income Portfolio is designed primarily to replicate the performance of Sentry Select Canadian Income Fund, as set out in the Information Statement.
Issue price and minimum investment: The issue price of the Notes is $100 per note with a minimum investment of $2,000 (20 Notes).
Selling period: Series 2 of the Notes are available for sale until May 12, 2006.
FundSERV: The FundSERV code for Bank of Montreal Sentry Select Canadian Income Deposit Notes, Series 2 is JHN603 and for Bank of Montreal Sentry Select R.O.C. Canadian Income Deposit Notes, Series 2 is JHN604.
Potential monthly distributions: Within 10 business days of the end of each month, investors will receive distributions equal to 75% of all distributions, if any, received on the Income Portfolio component of the Basket and not yet paid out or reinvested. The remaining 25% of the distributions will be reinvested in the Basket. The distributions made on the R.O.C. Canadian Income Deposit Notes should be considered return of capital and the distributions on the Canadian Income Deposit Notes will be considered interest.
Payment at maturity: The Notes will mature on or about November 20, 2014, and investors will be repaid their principal, or in the case of the R.O.C. Notes, the unpaid principal, plus an amount, if any, linked to the performance of the Basket. The fluctuation of the value of the Basket will directly impact the return payable at maturity. It is possible that no return will be paid.
In the case of the R.O.C. Notes, the amount paid at maturity will be reduced by a percentage of the total amount of principal repaid prior to maturity.
Liquidity: A daily secondary market will be maintained by BMO Nesbitt Burns Inc. under normal market conditions, as set out in the Information Statement. There is no assurance that a secondary market will exist. The sale of Notes within three years of their issue will be subject to an early trading charge.
Sentry Select Capital Corp.: Established in 1997, Sentry Select Capital Corp. provides investment, administrative and marketing services to 23 exchange-listed closed-end funds, 16 of which have exposure to the income trust sector, 11 mutual funds, 11 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of February 28, 2006 the firm had approximately $9.0 billion in gross assets under management, including $3.4 billion in income funds.
Sentry Select Canadian Income Fund: Sentry Select Canadian Income Fund was named Canadian Income Trust Fund of the Year at the 2005 Canadian Investment Awards.
Fund performance as at February 28, 2006*
Since inception (Feb 11, 2002)
More information: Investor Services (broker/investor inquiries), Brian McOstrich (media inquiries), Katherine Pawling (Corporate Secretary)
Tel: 1-888-246-6656 Fax: 416 364-1197 firstname.lastname@example.org www.sentryselect.com
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