TORONTO/CALGARY: Strategic Energy Fund (the “Fund”) announces that the Board of Directors of Strategic Energy Management Corp., the manager of the Fund (the “Manager”), has approved the recommendation of the special committee of independent directors (the “Special Committee”) to call a special meeting of the Fund’s unitholders to determine whether the Fund should be reorganized to convert the Fund into an open-end mutual fund which will hold the Fund’s public issuer portfolio and transfer the Fund’s private issuer portfolio to a new closed-end fund, the units of which will be distributed to the Fund’s unitholders, subject to regulatory approval. The new fund will hold the private issuer portfolio for the purposes of liquidation and the Fund’s public portfolio securities would be managed in a traditional open-end mutual fund structure. Important information concerning the post-reorganization structures will be contained in the information circular which is expected to be mailed in December 2008 for an anticipated meeting date on or about January 15, 2009.
The Special Committee was comprised of John Brussa, Jeff Errico and Richard Zarzeczny, who are members of the Board of Directors of the Manager and are independent of the management of the Manager and the Fund’s investment advisor.The Manager will continue publishing the weekly net asset value (“NAV”) of the Fund’s portfolio on the www.sentryselect.com web site. The Fund’s weekly NAV is calculated as of market close every Wednesday and is published on the www.sentryselect.com web site on Thursday. As soon as the information circular is mailed, the weekly NAV, along with a separate weekly NAV excluding the value of the private securities, will be published each Thursday to the www.sentryselect.com web site.
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 generating 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.
Trading information: The Fund’s units trade on the Toronto Stock Exchange under the symbol SEF.UN.
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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 the Manager. The forward-looking statements are not historical facts but reflect the Manager’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. These risks and uncertainties include, but are not limited to, the special meeting of unitholders not being held, the structure of the proposed reorganization of the Fund being changed before the special meeting of unitholders, and the Fund failing to receive all required regulatory approvals to implement the reorganization should it be approved by unitholders at the special meeting. Although the Manager 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. The Manager 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).