Sentry Select Capital Corp.

Sentry Select Capital Corp.
Sentry Select Canadian Income Fund

COMMERCIAL AND INDUSTRIAL SECURITIES INCOME TRUST
TSX : COI.UN

August 21, 2008 12:25 ET

Commercial and Industrial Securities Income Trust (TSX:COI.UN) Completes Merger With Sentry Select Canadian Income Fund

TORONTO, ONTARIO--(Marketwire - Aug. 21, 2008) - Sentry Select Capital Corp. ("Sentry Select" or the "Manager") is pleased to announce that a merger of Commercial and Industrial Securities Income Trust (the "Terminating Fund") (TSX:COI.UN) with Sentry Select Canadian Income Fund ("Canadian Income Fund"), an open-end mutual fund, (the "Merger") was completed effective August 20, 2008.

The Terminating Fund transferred all of its assets to Canadian Income Fund in exchange for units of Canadian Income Fund and the assumption by Canadian Income Fund of all the liabilities of the Terminating Fund. Each unitholder of the Terminating Fund received units of Canadian Income Fund having the same aggregate net asset value ("NAV") as their units of the Terminating Fund as of the close of business on August 19, 2008.

Each unitholder of the Terminating Fund received 0.4438 units of Canadian Income Fund in exchange for each unit of the Terminating Fund.

Special distribution

The Merger triggered a tax year-end for the Terminating Fund. The Manager confirms that a special distribution of $0.59 per unit will be paid prior to September 15, 2008 to all Terminating Fund unitholders of record as of August 20, 2008.

Throughout the year, the Terminating Fund realized capital gains from the sale of securities and must distribute the net income and net realized capital gains to unitholders to ensure that it is not liable for income tax. The special distribution represents the total remaining undistributed net income and net realized capital gains for the year.

The Merger

The Manager believes that the Merger will result in significant benefits to unitholders of the Terminating Fund for the following reasons:

- Canadian Income Fund is a larger fund with a more flexible investment mandate that includes income trusts, real estate investment trusts (REITs), equities and fixed-income securities. The Terminating Fund is limited to investing in commercial and industrial trusts, and oil and gas royalty and income trusts; changes to the tax treatment of income trusts announced on October 31, 2006 have resulted in a reduction in the number of such trusts due to takeovers and conversions into corporations.

- Canadian Income Fund's ability to invest in REITs is particularly beneficial since many REITs were not affected by the tax changes announced October 31, 2006 and the Manager anticipates REITs to be an attractive area of investment in the future.

- Units of Canadian Income Fund may be redeemed daily at NAV per unit. The liquidity for the Terminating Fund was provided through the Toronto Stock Exchange, but the market price was often less than NAV per unit and redemption at NAV per unit was only permitted annually. Unitholders of the Terminating Fund received Series A units of Canadian Income Fund which may be redeemed daily at NAV per unit.

- Former unitholders of the Terminating Fund are able to switch their investments into other Sentry Select mutual funds without having to pay a fee to the Manager. Sentry Select offers 18 mutual funds, including trust and corporate structure, with 12 different mandates.

Tax consequences of the Merger

The Merger was effected on a tax-deferred basis.

Costs of the Merger

All costs and expenses associated with the Merger are borne by the Manager.

Sentry Select Capital Corp.

Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6 billion in assets as of June 30, 2008. 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.

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. 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.



The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4
Telephone:(416) 861-8729
Fax: (416) 364-5615


Contact Information

  • Sentry Select Capital Corp.
    Investor Services
    (broker/investor inquiries)
    1-888-246-6656
    (416) 364-1197 (FAX)
    or
    Sentry Select Capital Corp.
    Kinga Lam
    (media inquiries)
    1-888-246-6656
    (416) 364-1197 (FAX)
    Email: info@sentryselect.com
    Website: www.sentryselect.com