Toronto: The Board of Directors of Sentry Select Capital Corp. (the “Manager”) announces that it is proposing a merger of Sentry Select FIDAC U.S. Mortgage Trust (the “Terminating Fund”) with Sentry Select MBS Adjustable Rate Income Fund II (“ARIF II”) (the “Merger”).If approved, the Terminating Fund will transfer all of its assets to ARIF II in exchange for units of ARIF II and the assumption by ARIF II of all the liabilities of the Terminating Fund. Each unitholder of the Terminating Fund will receive units of ARIF II having the same aggregate net asset value as their units of the Terminating Fund as of the close of business on the effective date of the Merger, expected to be March 7, 2008.
The Merger: The Manager believes that the Merger will result in significant benefits to unitholders for the following reasons:
Costs of the Merger: All costs and expenses associated with the Merger will be borne by the Manager.
Unitholder approval: The Merger will require approval of two-thirds of the votes cast by unitholders of a Terminating Fund at a special meeting of the unitholders to be held on February 27, 2008. The record date for the purpose of determining the unitholders entitled to receive notice and vote at the meetings was the close of business on January 15, 2008.
The proposed Merger is subject to the acceptance and approval by the TSX.
Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages approximately $8 billion in gross assets as of December 31, 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 is the manager and/or advisor to 30 TSX-listed reporting issuers. In addition, Sentry Select manages and/or provides advisory services to four reporting issuers listed on the TSX Venture Exchange.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1197 email@example.com
Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect Sentry Select’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Sentry Select believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry Select undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
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).