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Strategic Energy Fund (TSX: SEF.UN) announces Board approval for Normal Course Issuer Bid and increase in Mandatory Market Purchase Program

Toronto/ Calgary:  Strategic Energy Management Corp. announces that the Board of Directors has approved anormal course issuer bid for Strategic Energy Fund (the “Fund”). A normal course issuer bid allows the Fund to purchase its units for cancellation through the facilities of the Toronto StockExchange (“TSX”). Any such purchases will be made by the Fund at the prevailing market price at the time of such purchases in accordance with the requirements of the TSX. Thecommencement of the normal course issuer bid is subject to review and approval by the TSX.The Board of Directors has also approved the Fund’s Information Circular, which details a proposed amendment to the Fund’s mandatory market purchase program. The proposed amendment increases the amount of units which may be purchased by the Fund for cancellation from 0.25% to 1.25% of the outstanding units of the Fund in respect of each calendar quarter. The floor-price at which the mandatory market purchase plan becomes effective will also be increased from less than 90% to less than 95% of the most recently calculated net asset value per unit of the Fund. These proposed amendments will bring the Fund’s mandatory market purchase program in-line with similar programs of other investment funds. The Fund will seek unitholder approval of these proposed amendments at the Fund’s Annual and Special Meetingto be held on June 28, 2007.Strategic Energy Fund: Strategic Energy Fund is an investment trust that seeks to provide unitholders with superiorrates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies, early-stage energycompanies 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., the 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 May 24, 2007, the Fund’s closing price on the TSX was $9.28 per unit and the most recent net asset value as of May 23, 2007 was $11.49 per unit.Sentry Select Capital Corp.:  Sentry Select Capital Corp. is a Canadian wealth management company who manages over $8 billion in gross assets as of April 30, 2007. 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. Sentry Select provides management and advisory services to 31 exchange-listed entities.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

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