Toronto: Sentry Select Capital Corp. (the “Manager”), the manager of Sentry Select Diversified Income Trust (the “Trust”), announces that the Trust intends to purchase up to 21,528,754 of the units of the Trust (the “Units”) for cancellation by way of a normal course issuer bid through the facilities of The Toronto Stock Exchange (the “Exchange”). The 21,528,754 Units represent approximately 10% of the public float of the Trust. As of December 12, 2006, 216,841,912 Units are issued and outstanding. The public float of 215,287,542 has been calculated as the issued and outstanding Units less Units held by insiders of the Trust.
The purchases may commence on December 18, 2006 and will terminate on December 17, 2007, or on such earlier date as the Trust may complete its purchase or provide notice of termination. Any such purchases will be made by the Trust at the prevailing market price at the time of such purchases in accordance with the requirements of the Exchange.
The Declaration of Trust, which created the Trust, prohibits the Trust from purchasing Units at a price exceeding the NAV per Unit (as defined in the Declaration of Trust) on the day immediately prior to the offer to purchase Units. The Manager expects that the purchases will be effective in increasing the NAV per Unit and decreasing the spread between the NAV per Unit and the market price of the Units.
To the knowledge of the Manager, no director, senior officer or other insider of the Manager intends at present to sell any common shares under this bid. However, sales by such persons through the facilities of the Exchange or elsewhere may occur if the circumstances or decisions of any such person change. The benefits to any such person whose common shares are purchased would be the same as the benefits available to all other holders whose common shares are purchased.
Sentry Select Diversified Income Trust: Sentry Select Diversified Income Trust (TSX: SDT.UN) is a closed-end trust, whose objective is to maximize distributions to Unitholders by investing primarily in a broad range of royalty and income trusts, real estate investment trusts and other high-yielding securities.
Sentry Select Capital Corp.: Sentry Select Capital Corp. is a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations (including preferred securities and debentures), 19 principal-protected notes, 16 mutual funds and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of November 30, 2006, the firm had approximately $8 billion in gross assets under management.
More information: Investor Services for broker/investor enquiries or Kinga Lam for media enquiries. Tel: 1-888-246-6656 Fax: 416-364-1197 email@example.com 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).