Toronto/Calgary: Strategic Energy Management Corp. announces the 2006 financial results for Strategic Energy Fund (the “Fund”).
• In May 2006, the Fund closed a rights offering that raised total gross proceeds of $64,297,860 through the issuance of 5,358,155 units.
• The Fund’s net assets declined 1.57% to $229,005,474 as of December 31, 2006.
• For the year, the Fund recorded a net loss on investments and other assets of $50,088,348 after posting a gain of $24,959,450 in 2005. The loss in 2006 was caused primarily by the decline of prices for securities in the income and royalty trust sector following the federal government’s decision to table legislation imposing taxes on income trust distributions.
• The Fund earned investment income of $22,347,220 in 2006, representing an increase of 131% over the previous year. The increase reflects the Fund’s higher average net assets during 2006 compared with 2005.
• In 2006, the Fund paid distributions of $1.29 per unit. Based on yesterday’s closing market price of $8.85 per unit, this represents an annual yield of 14.6%.
• As of December 31, 2006, the Fund’s NAV per unit was $10.72 and the Fund’s closing price on the Toronto Stock Exchange was $9.88 per unit, which represents a discount to NAV of 7.8%.
2006 financial results: For complete 2006 Annual Management Report of Fund Performance and Annual Financial Statements, please visit www.sentryselect.com or www.SEDAR.com.
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 are focused on 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.
Sentry Select Capital Corp.: Sentry Select Capital Corp., the investment advisor of the Fund, is one of the fastest-growing wealth management companies in Canada and manages over $8 billion in gross assets. The company offers a diverse range of investment products including closed end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. With 37 reporting entities, Sentry Select is the leading issuer of securities listed on the Toronto Stock Exchange.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)Tel: 1-888-246-6656 Fax: 416 364-1197 firstname.lastname@example.org www.sentryselect.com
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.
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).