Sentry Select Capital Corp.

Sentry Select Capital Corp.
STRATEGIC ENERGY FUND
TSX : SEF.UN

STRATEGIC ENERGY FUND

August 10, 2007 13:37 ET

Strategic Energy Fund (TSX:SEF.UN) Releases 2007 Semi-Annual Financial Results

TORONTO, ONTARIO and CALGARY, ALBERTA--(Marketwire - Aug. 10, 2007) - Strategic Energy Management Corp. announces the 2007 semi-annual financial results for Strategic Energy Fund (the "Fund")(TSX:SEF.UN) for the six-month period ended June 30, 2007.

Highlights

- On June 8, 2007, the Fund closed an Exchange Offer that raised total gross proceeds of $95,092,933 through the issuance of 10,309,071 units. The issuance of units at $9.224 and the cost of the Exchange Offer resulted in overall dilution to the Fund of $0.844 per unit. Despite its short-term dilutive effect, management believes the additional assets acquired through the Exchange Offer can provide long-term value to the Fund's unitholders.

- The Fund's net assets were $297,751,705 as of June 30, 2007, an increase from $229,005,474 as of December 31, 2006. The largest factor contributing to the increase was the Exchange Offer.

- For the interim period, the Fund recorded a net loss on investments and foreign currency of $2,491,320 (2006 - a gain of $1,040,959). Contributing to the decrease was a net realized loss on sale of investments of $12,248,334 (2006 - a gain of $6,670,445), which was partially offset by a change in unrealized appreciation of investments of $10,448,680 (2006 - unrealized depreciation of $5,019,484).

- For the interim period, the Fund earned investment income of $11,335,512 (2006 - $11,152,203) mostly from royalties and dividends.

- For the interim period, the Fund declared distributions of $0.51 per unit. Current monthly distributions are $0.08 per unit and based on yesterday's closing market price of $8.60 per unit, this represents an annual yield of 11.2%.

- As of June 30, 2007, the Fund's net asset value per unit, in accordance with Canadian GAAP, was $9.86.

2007 financial results

For the complete 2007 Semi-Annual Management Report of Fund Performance and Semi-Annual Financial Statements, please visit www.sentryselect.com or www.SEDAR.com.

Strategic Energy Fund

Strategic Energy Fund is an investment trust that seeks to provide unitholders with superior rates of return through a diversification strategy focused on investment opportunities within the Canadian energy sector. The Fund invests in established companies, early-stage energy companies and, to a lesser extent, special energy issuers, each with prospects for high growth in the near to medium term and the potential for long-term capital appreciation.

The Fund's investments in established companies, including energy royalty and income trusts, are made with a view to generate sufficient income to permit the Fund to make monthly cash distributions to unitholders.

Investments in early-stage energy companies are focused on both private and public issuers with strong, experienced management teams that have proven track records of enhancing shareholder value and successfully executing exit strategies. As well, the Fund may invest in undervalued issuers where Sentry Select Capital Corp., investment advisor to the Fund, believes that capital appreciation can be realized.

This news release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to, among other things, the future performance of the Fund, including the potential for future distributions. These statements reflect Sentry Select's current expectations, but are subject to a number of risks and uncertainties. Due to the many risks and uncertainties, Sentry Select cannot assure that the forward-looking statements contained in this news release will be realized.



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