TORONTO: The Board of Directors of Sentry Select Capital Corp. (“Sentry Select” or the “Manager”) announces that it is proposing a merger of Commercial and Industrial Securities Income Trust (the “Terminating Fund”) with Sentry Select Canadian Income Fund (“Canadian Income Fund”) (the “Merger”).
If approved, the Terminating Fund will transfer all of its assets to Canadian Income Fund in exchange for units of Canadian Income Fund and the assumption by Canadian Income Fund of all the liabilities of the Terminating Fund. Each unitholder of the Terminating Fund will receive units of Canadian Income Fund 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 in August 2008.
The Terminating Fund is a closed-end investment fund listed on the Toronto Stock Exchange (“TSX”) and Canadian Income Fund is an open-end mutual fund. Both funds are managed by Sentry Select.
The Merger: The Manager believes that the Merger will result in significant benefits to unitholders of the Terminating Fund for the following reasons:
Tax consequences of the Merger: The Manager is proposing that the Merger be effected on a tax-deferred basis.
Costs of the Merger: All costs and expenses associated with the Merger will be borne by the Manager.
Performance: Fund performance as of March 31, 2008, based on NAV per unit:
|Canadian Income Fund||Terminating Fund|
|1 year:|| |
|3 year:|| |
|5 year:|| |
|Since inception*:|| |
Current yields and management expense ratios: Canadian Income Fund’s current monthly distribution is $0.0775 per unit; based on the May 13, 2008 NAV of $16.34, this represents a yield of 5.7%. The Terminating Fund’s current monthly distribution is $0.05 per unit; based on the latest published NAV as of May 8, 2008 of $7.99, this represents a yield of 7.5% and based on the May 13, 2008 closing price of $7.85, this represents a yield of 7.6%.
The 2007 Management Expense Ratio for Canadian Income Fund was 2.65% and for the Terminating Fund it was 2.61%.
Unitholder approval: The Merger will require approval by two-thirds of the votes cast by unitholders of a Terminating Fund at a special meeting of the unitholders expected to be held in August 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 over $6.5 billion in gross assets as of March 31, 2008. 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 29 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 firstname.lastname@example.org
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.
* The inception date of Canadian Income Fund is February 11, 2002 and the inception date of the Terminating Fund is June 25, 2002.
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).