Sentry Select Capital Corp.

Sentry Select Capital Corp.

November 15, 2005 16:53 ET

Sentry Select Capital Corp. Announces Initial Distribution for Sentry Select FIDAC U.S. Mortgage Trust 'TSX: SSF.UN'

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2005) - Sentry Select Capital Corp. is pleased to announce the initial distribution of $0.1325 per Unit for Sentry Select FIDAC U.S. Mortgage Trust (the "Trust) (TSX.SSF.UN). The initial distribution is payable on December 15, 2005 to holders of record on November 30, 2005.

Pro-rata distribution

The offering of the Trust closed on September 29, 2005. The initial distribution only covers the period from the date of closing to November 30, 2005. Subsequent quarterly distributions will reflect a full three month period.

Current yield

On an annualized basis, the initial distribution would represent $0.795 per Unit, or a yield of 7.95% based on the offering price of $10.00 per Unit. This is in-line with the estimated annualized yield at the time of closing of 8%.

Based on the Trust's November 14 closing price on the Toronto Stock Exchange, the Units are trading at an annualized yield of 9.8%.

Investment Objective

The Trust's investment objective is to provide Unitholders with tax-efficient cash distributions on a quarterly basis. The cash distributions will be directly related to the spread between the interest income earned on the Portfolio of mortgage-backed securities owned by SSF U.S. Mortgage Limited Partnership and the cost of borrowing to finance their acquisition. Cash distributions from the Trust are not fixed and will vary.

The Trust

Including the over-allotment, the total gross proceeds of the Trust's recent public offering was $70,000,000. Sentry Select FIDAC U.S. Mortgage Trust Units trade on the Toronto Stock Exchange under the symbols SSF.UN.

Website

To find out more about Sentry Select FIDAC U.S. Mortgage Trust, including net asset values, go to www.sentryselect.com.

Investment Manager

Fixed Income Discount Advisory Company (FIDAC) is the investment manager of Mortgage-Backed Securities Trust. FIDAC is one of the leading fixed-income management companies specializing in U.S. agency mortgage-backed and Treasury securities. FIDAC and its related companies are responsible for the management of approximately US$46 billion in gross assets.

The Manager

Sentry Select Capital Corp. is a wealth management company with gross assets under management in excess of $9 billion. It is the portfolio manager of 18 closed-end trusts, 4 flow-through limited partnerships and 11 mutual funds; the manager of an investment corporation; the marketing agent for a series of principal-protected notes; and the administrator of 3 closed-end trusts.



The Exchange Tower
130 King Street West
Suite 2850, P.O. Box 104
Toronto, Ontario M5X 1A4



Contact Information

  • Sentry Select Capital Corp.
    Investor Services
    (broker/investor inquiries)
    1-888-246-6656
    or
    Sentry Select Capital Corp.
    Brian McOstrich
    (Media inquiries)
    1-888-246-6656
    416-364-1197 (FAX)
    info@sentryselect.com
    www.sentryselect.com