TORONTO: Sentry Select Capital Corp. (“Sentry Select” or the “Manager”) announces that Sentry Select Diversified Income Trust (the “Trust”) expects to pay monthly distributions of $0.026 per unit in 2009. 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.
Distribution decrease: The annual distribution of $0.312 represents a cash on cash yield of approximately 13.05% based on a closing price of $2.39 on December 12, 2008. The Manager believes the distribution decrease will improve the balance sheet of the Trust, positioning the Trust to take advantage of future market recoveries while maintaining a competitive monthly distribution. The Manager is confident that, given current market conditions, the monthly distribution can be earned through the operations of the Trust.
The global economic downturn has adversely affected the distribution capability of some commodity producers and other trusts that comprise the Trust’s underlying portfolio. This is why the Manager has decided to reduce the Trust’s distribution. As the distributions received by the Trust stabilize, and portfolio returns improve over the year to come, the Manager will review the distribution policy and update it, if necessary, to the evolving economic reality.
Sentry Select Diversified Income Trust: Sentry Select Diversified Income Trust is a closed-end investment trust that aims to maximize distributions to unitholders by investing primarily in high-income securities issued by a broad range of royalty and income trusts, real estate investment trusts, and limited partnerships and, to a lesser extent, fixed-income securities and high-yielding common stocks.
Sentry Select Capital Corp.: Sentry Select Capital Corp. 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, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to Sentry Select. The forward-looking statements are not historical facts but reflect 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 the ability of Sentry Select to pay the distributions on the dates specified. Although Sentry Select believes 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. Sentry Select undertakes 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.
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