TORONTO: The Board of Directors of Strategic Energy Management Corp. (the “Manager”) announces that at a special meeting held on January 19, 2009, the unitholders of Strategic Energy Fund (the “Fund”) approved the conversion of the Fund into an open-end mutual fund (the “Conversion”) called Sentry Select Energy Income Fund (the “Mutual Fund”). Following the Conversion, the Mutual Fund will be managed by Sentry Select Capital Inc. (“Sentry Select”), a wholly-owned subsidiary of Sentry Select Capital Corp.
The Mutual Fund’s investment objective will focus on providing investors with regular income, to the extent possible, and an opportunity to achieve long-term capital appreciation through investing in dividend and income generating equity securities of Canadian companies involved in the energy sector.
Prior to the completion of the Conversion, the securities of private issuers currently held by the Fund, and $3,000,000, will be transferred to a closed-end investment fund (the "New Fund") that will be established and managed by Sentry Select in exchange for units of the New Fund and the assumption of certain indemnification obligations of the Fund. The Fund will distribute the New Fund units it acquires to the unitholders of the Fund on the basis of one New Fund unit for every trust unit of the Fund held. The New Fund will not be a reporting issuer and it is not expected that there will be any market through which the New Fund units may be bought or sold. The New Fund's objective will be to liquidate its assets and discharge its liabilities in an orderly, effective, and efficient manner over a period of approximately three years.
The Fund is a closed-end investment fund listed on the Toronto Stock Exchange (“TSX”).
Completion of the Conversion: It is expected that the Fund’s units will be de-listed from the TSX at the close of business on or about January 28, 2009. The New Fund units are expected to be distributed to unitholders of record on or about February 4, 2009. The Conversion is expected to be completed on or about February 6, 2009 with the Mutual Fund units becoming redeemable on a daily basis on or about February 9, 2009.
Sentry Select Capital Inc.: Sentry Select Capital Inc. is a Canadian wealth management company that 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.
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Certain statements included in this news release constitute forward-looking statements, including, but not limited to, the future investment objective of the Fund, the structure and objective of the New Fund and the expected composition of its assets, the nature, timing and consequences of the Conversion and the transfer of certain assets to the New Fund, including the distribution of New Fund units to unitholders of the Fund. Forward-looking information can often be identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to the Manager and Sentry Select. The forward-looking statements are not historical facts but reflect the Manager’s and 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 including, but not limited to, the implementation of the Conversion, the creation and operation of the New Fund and the distribution of the New Fund units to unitholders as contemplated herein, the New Fund's ability to liquidate its position in its investments at the estimated and/or expected levels and prices, the receipt of any necessary regulatory approvals and other factors which are not currently known, as well as changes in the global economy, general economic and business conditions, existing governmental regulations and other market factors specific to the energy sector and the securities of energy companies. Although the Manager and Sentry Select believe 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 and Sentry Select undertake 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. For a complete disclosure record for the Fund please visit the Fund’s profile on www.sedar.com.
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).