Sceptre Fund Management Inc.
TSX : SZG.UN

Sceptre Fund Management Inc.

August 03, 2005 12:39 ET

Sceptre Income & Growth Trust Announces Issuer Bid

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2005) - Sceptre Income & Growth Trust (the "Trust")(TSX:SZG.UN) in accordance with the terms of its initial public offering, the Trust intends to make a normal course issuer bid to purchase up to 493,931 trust units of the Trust (the "Trust Units") representing approximately 10% of the public float. The Trust Units may be purchased commencing on August 8, 2005 through to August 7, 2006 through the facilities of the TSX and may be purchased when the net asset value per Trust Unit exceeds its trading price. Any such Trust Units purchased will be cancelled. The purpose of the normal course issuer bid is to provide the Trust with a mechanism to decrease the potential spread between the net asset value per Trust Unit and the market price of the Trust Units and to provide enhanced liquidity for the Trust Units. The Trust had 5,067,808 Trust Units issued and outstanding as at July 25, 2005. For the period August 6, 2004 to August 5, 2005, 296,200 Trust Units were purchased by the Trust under its normal course issuer bid.

The Trust is an investment trust, which seeks to provide stable monthly distributions through investment in a broadly diversified portfolio consisting primarily of income funds and common shares listed and posted for trading on North American stock exchanges. The Fund raised $72 million in gross proceeds in its initial public offering, and began trading on the TSX on April 15, 2004. As of July 22, 2005 the net asset value was $11.81 per Trust Unit and the closing market price was $10.97 per Trust Unit (representing a discount of 7.1% when measured against the net asset value per Trust Unit).

Sceptre Investment Counsel Limited has been retained as portfolio manager of the Trust. Sceptre Investment Counsel Limited employs an "asset allocation" investment approach whereby it actively manages the Trust's investments with certain portfolio managers having responsibility for each asset class and overall asset mix. Sceptre Fund Management Inc., a wholly-owned subsidiary of Sceptre Investment Counsel Limited, is the manager of the Trust.

Richard L. Knowles

President and Chief Executive Officer

Sceptre Investment Counsel Limited

Contact Information

  • Sceptre Fund Management Inc.
    Customer Service Group
    (416) 360-4826 (Toronto)
    1 (800) 265-1888 (toll-free)
    www.sceptre.ca