TORONTO: Sentry Select Capital Corp. is pleased to announce that an aggregate principal amount of $45.3 million of 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 has been issued.
Basket portfolioBank of Montreal Sentry Select Canadian Income Deposit Notes, Series 3 and Bank of Montreal Sentry Select R.O.C. Canadian Income Deposit Notes, Series 3 (“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, Senior Vice-President and Senior Portfolio Manager, Sentry Select (“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.
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 April 30, 2006*
1 year 2 year 3 year Since inception (February 11, 2002)26.9% 28.7% 30.0% 21.5%
Series 3 launched Sentry Select is also pleased to announce the launch of Series 3 for both Notes.
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 3 of the Notes are available for sale until July 14, 2006.
FundSERV The FundSERV code for Bank of Montreal Sentry Select Canadian Income Deposit Notes, Series 3 is JHN605 and for Bank of Montreal Sentry Select R.O.C. Canadian Income Deposit Notes, Series 3 is JHN606.
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 will 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 July 11, 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, as set forth in the Information Statement.
Sentry Select Capital Corp. Established in 1997, Sentry Select Capital Corp. provides investment, administrative and marketing services to 24 exchange-listed closed-end funds, 17 of which have exposure to the income trust sector, 16 mutual funds, 13 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 April 30, 2006, the firm had approximately $8.0 billion in gross assets under management, including $3.5 billion in income funds.
More information Investor Services (broker/investor inquiries) or Brian McOstrich (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1330 email@example.com www.sentryselect.com
For a copy of the Information Statement** please visit www.sentryselect.com
“Sentry Select” and “Sentry Select logo” are registered trademarks of Sentry Select Capital Corp. and have been licensed for use by BMO Nesbitt Burns Corporation Limited and its affiliates. “Nesbitt Burns” is a registered trademark and “Canadian Income Deposit Notes” and “R.O.C. Canadian Income Deposit Notes” are trademarks of BMO Nesbitt Burns Corporation Limited used under license.
**This is for information purpose only and is not, and under any circumstances is to be construed as an offering of the Notes described herein, or as investment advice. The information is intended to be read in conjunction with the Information Statement for the Bank of Montreal Sentry Select R.O.C Canadian Income Deposit Notes™ Series 3 and Canadian Income Deposit Notes™, Series 3.
* The information above contains historical compounded total returns of Sentry Select Canadian Income Fund, and is not intended to be, nor should it be construed as, an indication as to the future returns or volatility of the Fund or the Income Portfolio or the potential distributions or return, if any, on the Notes. For Sentry Select Canadian Income Fund, it assumes that all distributions were reinvested in additional units of each fund or closed-end trust. The returns are shown after the payment of expenses and management fees of each fund but have not been reduced by any applicable sales, redemption, distribution or optional charges or taxes. The above performance information reflects the payment of the actual management expense ratios for the Sentry Select Canadian Income Fund for the indicated periods. By contrast, the Income Portfolio is subject to annual fees which may, in certain cases, be higher than the actual management expense ratio of the Sentry Select Canadian Income Fund. As a result of the potential for differing fees, the performance of the Income Portfolio, as compared to Sentry Select Canadian Income Fund, may have generated lower returns than those shown above if it had existed over the same time periods.
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).