Toronto/Calgary - Strategic Energy Management Corp. is pleased to announce that it expects Strategic Energy Fund (the “Fund”) to continue to pay monthly distributions of $0.10 per unit in the first quarter of 2006. However, if the make-up of the portfolio changes or if such portfolio holdings make distributions other than in accordance with their indicated guidance, distributions may differ.
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 as well as 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 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., investment advisor to the Fund, believes that capital appreciation can be realized.
2005 Distributions - The Fund increased its monthly distribution from $0.06 to $0.07 per unit in March and from $0.07 to $0.10 per unit in April. A special distribution of $0.23 per unit was paid in May, and an additional special distribution of $0.25 per unit was paid in September. In 2005, the Fund will pay a total of $1.09 per unit in regular distributions, plus $0.48 per unit in special distributions, for a total of $1.57 per unit.
2005 Financings - In May, the Fund closed a successful rights offering that raised total gross proceeds of $12,992,328, and was over-subscribed by more than $8.9 million. In September, the Fund closed a successful cash and exchange offering that raised total gross proceeds of $171,400,002.
Private Holdings in 2005 - The Fund initiated investments in a number of privately-held companies in 2005, including Redsky Energy Ltd., Ridgeback Exploration Ltd., Adamant Energy Inc., Can-Able Energy Inc., Newcast Energy Corp., Synenco Energy Inc., and Tasman Exploration Ltd.
Highpine Oil & Gas Ltd., formerly a private issuer held by the Fund at the end of the first quarter, completed an initial public offering on the Toronto Stock Exchange in April.
Shares of Anderson Energy Ltd., formerly a private issuer held by the Fund at the end of the second quarter, commenced trading on the Toronto Stock Exchange in September after the company purchased publicly traded Aquest Energy Ltd.
Trading Information, NAV & Performance - Strategic Energy Fund units trade on the Toronto Stock Exchange under the symbol SEF.UN.
The Fund’s Net Asset Value as at December 7, 2005 was $14.41 per unit.
As of December 13, 2005, the Fund had a one-year return of 43.6%, a three-year return of 26.6% and had returned 14.9% since inception on May 9, 2002 (based on market prices and re-investing distributions).
Sentry Select Capital Corp. - The Investment Advisor is Sentry Select Capital Corp., a wealth management company with gross assets under management in excess of $9 billion, including more than $1.9 billion in energy sector-related investments.
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. When used in this news release, the words "in the future" and "believe" and the use of the future tense generally identify forward-looking statements. 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 Brian McOstrich (media inquiries) Tel: 1-888-246-6656 Fax: 416 364-1197 email@example.com www.sentryselect.com
Les documents (y compris les communiqués de presse) se rapportant aux divers fonds d'investissement pour lesquels Sentry agit à titre de gestionnaire ou de conseiller ne sont fournis qu'à titre informatif. Ces documents ne peuvent être considérés comme étant exhaustifs ou exempts d'erreur sans un examen approfondi de la totalité des documents se rapportant à un fonds d'investissement en particulier disponibles sur SEDAR (www.sedar.com).