Sentry Select Capital Corp.

Sentry Select Capital Corp.
Diversified Income Trust II

Alliance Split Income Trust

Premier Value Income Trust

August 01, 2008 16:27 ET

Diversified Income Trust II (TSX: DTT.UN) and Alliance Split Income Trust (TSX: ASI.UN) Complete Merger With Premier Value Income Trust (TSX: PVN.UN)

TORONTO, ONTARIO--(Marketwire - Aug. 1, 2008) - Sentry Select Capital Corp. ("Sentry Select" or the "Manager") is pleased to announce that the mergers of Diversified Income Trust II (TSX:DTT.UN) ("DIT II") and Alliance Split Income Trust (TSX:ASI.UN) ("Alliance") (collectively the "Terminating Funds") with Premier Value Income Trust (TSX:PVN.UN) ("Continuing Fund"), (the "Mergers") became effective today. The Mergers were approved at special meetings of unitholders of the Terminating Funds held concurrently on June 18, 2008.

The Terminating Funds transferred all of their assets to the Continuing Fund in exchange for units of the Continuing Fund and the assumption by the Continuing Fund of all the liabilities of the Terminating Funds. Each unitholder of the Terminating Funds received units of the Continuing Fund having the same aggregate net asset value as their units of the Terminating Funds as of the close of business on July 31, 2008.

Each unitholder of DIT II received 1.1865 units of the Continuing Fund in exchange for each unit of DIT II. Each unitholder of Alliance received 1.5816 units of the Continuing Fund in exchange for each unit of Alliance. Fractional units were not issued.

Special unit distribution

The Mergers triggered a tax year-end for the Terminating Funds. A special unit distribution was paid to all DIT II unitholders of record as of July 31, 2008. The distribution was paid in units, in the amount of $0.40 per unit. Following the distribution payment, the units were consolidated, resulting in no change in either the number of units or the net asset value per unit immediately following the transaction.

Throughout the year, DIT II 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 will not be liable for income tax. The unit distribution represents the total remaining undistributed taxable income for the tax year.

The Mergers

The Manager believes that the Mergers will result in significant benefits to unitholders for the following reasons:

- The larger combined Continuing Fund will have the advantage of increased economies of scale and lower proportionate fund operating expenses.

- The Mergers will eliminate the administrative and regulatory costs of operating separate investment funds.

- Units of the Continuing Fund will have greater liquidity on the Toronto Stock Exchange.

- Units of the Continuing Fund have the support of a mandatory market purchase program, unlike capital units of Alliance.

Costs of the Mergers

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

Alliance preferred securities

Alliance preferred securities, with a face value of $4,514,910, were called and repaid by Alliance in accordance with the trust indenture on August 1, 2008.

Sentry Select Capital Corp.

Sentry Select Capital Corp. is a Canadian wealth management company that manages over $6 billion in gross 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.

Sentry Select Capital Corp.
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)
    (416) 364-1197 (FAX)
    Sentry Select Capital Corp
    Kinga Lam
    (media inquiries)
    (416) 364-1197 (FAX)