Toronto/Calgary: Strategic Energy Management Corp. announces that beginning with its February 2007 distribution, Strategic Energy Fund (the “Fund”) expects to pay monthly distributions of $0.08 per unit.The decrease in monthly distributions from $0.11 per unit paid since April 2006 reflects the reduction in Fund portfolio yield, caused by recent distribution cuts announced and other cuts anticipated by some of the Fund’s oil and gas royalty trust holdings.
The Fund is also re-balancing some holdings to enhance monthly earnings from the portfolio and, combined with the reduced monthly distributions, these two measures are intended to ensure the sustainability of the Fund’s net asset value and ongoing distributions.
Strategic Energy Fund: Strategic Energy Fund is an investment trust that seeks to provide unitholders with superior rates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies, early-stage energy companies and, to a lesser extent, special energy issuers, each with prospects for high growth in the near to medium term and the potential for long-term capital appreciation.
The Fund’s investments in established companies, including energy royalty and income trusts, are made with a view to generate sufficient income to permit the Fund to make monthly cash distributions to unitholders.
Investments in early-stage energy companies include both private and public issuers with strong, experienced management teams that have proven track records of enhancing shareholder value and successfully executing exit strategies. As well, the Fund may invest in undervalued issuers where Sentry Select Capital Corp., investment advisor to the Fund, believes that capital appreciation can be realized.
Trading information and NAV: Strategic Energy Fund units trade on the Toronto Stock Exchange under the symbol SEF.UN. As of January 22, 2007, the Fund’s closing price on the TSX was $9.31 per unit and the most recent net asset value as of January 17, 2007 was $10.16 per unit.
Sentry Select Capital Corp.: The investment advisor is Sentry Select Capital Corp., a wealth management company providing investment, administrative and marketing services to 35 exchange-listed closed-end funds and corporations (including preferred securities and debentures), 22 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 December 31, 2006, the firm had approximately $8.0 billion in gross assets under management.
Forward- looking statements: This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Fund, including the potential for future distributions. These statements reflect Sentry Select’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)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).