TORONTO: Sentry Select Capital Corp. is pleased to announce that Sentry Select Lazard Global Listed Infrastructure Fund (the “Fund”) has issued an additional 670,000 trust units for gross proceeds of $6,700,000 pursuant to the exercise by the agents of their over-allotment options.
Gross proceeds: Including the over-allotment, the total gross proceeds of the Fund’s recent public offering are $141,700,000.
Trading information: The Fund units trade on the Toronto Stock Exchange under the symbol GLS.UN.
Investment objectives: The Fund is actively managed by Lazard Asset Management LLC (“Lazard”) and will seek long-term, defensive, low-volatility returns by investing in a globally diversified portfolio of publicly listed global infrastructure companies.
The Fund’s investment objectives are to:
• provide a total return for unitholders consisting of interest, dividend income and capital appreciation that will outperform inflation, as measured by the Canadian Consumer Price Index, by 5% per annum over rolling five-year periods, and
• pay quarterly cash distributions (initially, expected to be $0.125 per quarter, or 5% per annum based on the original price of $10.00 per unit).
The portfolio: From the universe of publicly listed global infrastructure companies, Lazard focuses on a sub-sector it calls “Preferred Infrastructure,” which is comprised of approximately 70 to 100 companies. Lazard believes Preferred Infrastructure companies have the ability to generate higher revenue and profit confidence with lower volatility as these companies typically have the following characteristics: a monopolistic position, a captive customer base, pricing power, high operating margins and low volatility of cash flows. Lazard expects that the portfolio will be made up of 25 to 50 Preferred Infrastructure companies.
Conversion of the Fund: On April 1, 2009 the Fund will become an open-ended mutual fund, and the units will be delisted and become redeemable at the net asset value per unit on a daily basis.
Distribution reinvestment plan: The Fund will offer a distribution reinvestment plan whereby residents of Canada may elect to have their cash distributions reinvested in additional units of the Fund. After the conversion to an open-end mutual fund, all distributions will automatically be reinvested in units of the mutual fund, unless the unitholder requests to receive cash.
Investment Manager: Lazard Asset Management LLC has been retained as the Investment Manager of the Fund. Lazard has research analysts in the US, Australia, Japan, Korea, the UK and Germany. As of September 30, 2006, the firm had approximately 173 investment professionals overseeing approximately US$87.7 billion in assets under management, including over US$200 million invested in infrastructure.
The Manager: Sentry Select Capital Corp. is one of the fastest-growing wealth management companies in Canada and manages over $8 billion in gross assets. The company 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. With 37 reporting entities, Sentry Select is the leading issuer of securities listed on the Toronto Stock Exchange.
The Agents: A syndicate of agents co-led by RBC Capital Markets and CIBC World Markets Inc. included: BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., TD Securities Inc., Canaccord Capital Corporation, Dundee Securities Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Blackmont Capital Inc., Desjardins Securities Inc., Berkshire Securities Inc., IPC Securities Corporation, Jory Capital Inc., Research Capital Corporation and Wellington West Capital Inc.
More information: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries) Tel: 1-888-246-6656 Fax: 416-364-1197 firstname.lastname@example.org www.sentryselect.com
This news release contains forward-looking statements that involve risks and uncertainties. These statements reflect Sentry Select’s and Lazard’s current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, neither Sentry Select nor Lazard can assure that the forward-looking statements contained in this news release will be realized.
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).