TORONTO: Sentry Select Capital Corp. announces that Sentry Select Commodities Income Trust completed its annual redemption. As of August 31, 2006, 4,702,537 units were redeemed, representing approximately 28% of the outstanding units of the Trust.
Sentry Select Commodities Income Trust: Sentry Select Commodities Income Trust is designed to provide regular income and the potential for capital appreciation through investment in Rogers International Commodity Index and commodity-related income funds.
Performance and distributions: Since its inception in July 2005, the Trust posted strong performance based on both market price (12.5%) and NAV (18.1%) and its distributions have increased from $0.05625 to $0.06 per unit in January 2006, representing an annualized yield of 7.0% (as of July 31, 2006).
“The Trust should continue to benefit from the strength in the commodities market and our disciplined portfolio selection. We look for well managed companies with strong balance sheets and sustainable payout ratios,” says Sandy McIntyre, Senior Vice-President and Senior Portfolio Manager at Sentry Select. “The response to the annual redemption illustrates how much investors value the Trust’s liquidity option and the opportunity to realize gains. Nevertheless, we remain excited about the prospects for the Trust and we believe its unitholders will be rewarded for their long-term investment.”
“Years of underinvestment have contributed to supply constraints within the commodities sector. This factor, combined with the strength of global demand, should continue to support robust prices and strong fundamentals for commodities,” says Kevin MacLean, Vice-President and Senior Portfolio Manager at Sentry Select.
NAV and closing price: As of August 24, 2006, the Trust’s net asset value was $10.55 per unit and its closing price on the Toronto Stock Exchange was $10.11 per unit, representing a 4.2% discount to NAV. In 2006, the Trust has been trading at an average discount to NAV of approximately 5.2%.
Sentry Select Capital Corp.: The investment advisor is Sentry Select Capital Corp., a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations, including preferred securities and debentures, 16 mutual funds, 15 principal-protected notes and three flow-through limited partnerships. Sentry Select is one of the largest Canadian investment managers in the income trust sector. As of July 31, 2006, the firm had approximately $8.5 billion in gross assets under management.
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 Trust. When used in this news release, the word “should” 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 Kinga Lam (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1330 firstname.lastname@example.org www.sentryselect.com
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