Sentry Select FIDAC U.S. Mortgage Trust

October 28, 2005 16:03 ET

Sentry Select FIDAC U.S. Mortgage Trust Raises Gross Proceeds of $70,000,000 After Exercise of Over-Allotment for $5,000,000

TORONTO, ONTARIO--(CCNMatthews - Oct. 28, 2005) - Sentry Select Capital Corp. ("Sentry Select" or the "Manager") is pleased to announce that Sentry Select FIDAC U.S. Mortgage Trust (the "Trust") (TSX:SSF.UN) has issued an additional 500,000 Trust Units for gross proceeds of $5,000,000 pursuant to the exercise by the agents of their over-allotment option.

Including the over-allotment, the total gross proceeds of the Trust's recent public offering is $70,000,000.

Trading Information

The Trust Units began trading on the Toronto Stock Exchange on September 29, 2005 under the symbol SSF.UN.

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.

Investment Manager

Fixed Income Discount Advisory Company (FIDAC) will be the investment manager to SSF U.S. Mortgage Limited Partnership. FIDAC owns and manages a portfolio of mortgage-backed securities, with the principal business objective to generate income from the spread between the interest income on mortgage-backed securities and the cost of borrowing to finance the acquisition of mortgage-backed securities. FIDAC and related companies are responsible for the management of approximately US$48 billion in gross assets.

The Agents

The Units were offered through a syndicate of agents co-led by CIBC World Markets Inc. and RBC Dominion Securities Inc., and includes National Bank Financial Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc., Raymond James Ltd., Berkshire Securities Inc., Dundee Securities Corporation, Blackmont Capital Inc., Wellington West Capital Inc., Desjardins Securities Inc., IPC Securities Corporation and Rothenberg Capital Management Inc.

The Manager

Sentry Select Capital Corp. is the manager of the Trust and is also responsible for providing or arranging for the provision of administrative services required by the Trust. Sentry Select is a wealth management company with gross assets under management in excess of $9 billion. It is the portfolio manager of 17 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.
    Broker/Investor inquiries:
    Investor Services
    1 (888) 246-6656
    (416) 364-1197 (FAX)
    Sentry Select Capital Corp.
    MEDIA inquiries:
    Brian McOstrich
    1 (888) 246-6656
    (416) 364-1197 (FAX)