TORONTO: Sentry Select FIDAC U.S. Mortgage Trust is pleased to announce a quarterly distribution of $0.11 per unit. The distribution is payable on March 15, 2006 to unitholders of record on February 28, 2006.
Sentry Select FIDAC U.S. Mortgage Trust: Through a limited partnership, the Trust invests in a portfolio consisting primarily of mortgage-backed securities with actual or implied AAA rating, issued by the U.S. agencies commonly known as Ginnie Mae, Fannie Mae and Freddie Mac. The investment objective of the Trust is to generate net income for distribution to investors from the spread between the interest income on its mortgage-backed securities and the cost of borrowing to finance their acquisition.
Since June 30, 2004, the Federal Reserve has raised the Federal Funds rate 14 times and 350 basis points. At the same time, long-term rates have stayed in a tight trading range. During the tightening phase of an interest-rate cycle, the cost of financing rises faster than the yield on the assets. Results will reflect these conditions while they persist through spread compression, which reduces the amount of income available for distribution, and through pressure on asset values. Experience in managing through a complete interest-rate cycle indicates that the trough in returns typically occurs at the end of a Fed tightening regimen.
Investment Manager: Fixed Income Discount Advisory Company (FIDAC) is the investment manager of the Trust. FIDAC is one of the leading fixed-income management companies specializing in U.S. agency mortgage-backed and Treasury securities. FIDAC and its related companies are responsible for the management of approximately US$35 billion in gross assets.
Sentry Select Capital Corp.: Sentry Select Capital Corp. provides investment, administrative and marketing services to 22 exchange-listed closed-end funds, 11 mutual funds, eight principal-protected notes and four flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of December 31, 2005, the firm had approximately $8.5 billion in gross assets under management.
More information: Investor Services (broker/investor inquiries), Brian McOstrich (media inquiries) or Kevin Cohen (Corporate Secretary) Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
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