NEW YORK--(BUSINESS WIRE)--Sept. 29, 2005--Annaly Mortgage
Management, Inc.
(NYSE: NLY) is pleased to announce that its
wholly-owned subsidiary, FIDAC, is the investment manager for Sentry
Select FIDAC U.S. Mortgage Trust
(SSF), an investment trust which
began trading on the Toronto Stock Exchange on September 29, 2005
(TSX:SSF.UN).
SSF is the fourth investment trust FIDAC manages in Canada. The
first three trusts are Mortgage-Backed Securities Trust
(TSX: MF.UN
and MF.U), launched in April 2003, MBS Adjustable-Rate Income Fund
(TSX: MTF.UN), launched in November 2004, and Sentry Select MBS
Adjustable-Rate Income Fund II
(TSX: MGS.UN) launched in April, 2005.
SSF raised C$65 million in the initial public offering. CIBC World
Markets
Inc. was the lead underwriter for the offering, and RBC
Dominion Securities Inc.
was the co-lead manager.
The investment strategy of SSF is to provide net income for
distribution to unitholders from the spread between the interest
income earned from a portfolio of residential mortgage-backed
securities and the cost of repurchase agreements used to finance their
acquisition. It will utilize leverage typically within a
debt-to-equity band of 8:1 to 12:1. For its services, FIDAC will be
paid a management fee of 15 basis points based on gross assets under
management.
Ron Kazel, Executive Vice President for Annaly, commented on the
launch of SSF, "We have now raised almost C$600 million in the
Canadian market. Just like investors throughout the world, the
Canadian investor is searching for yield with a minimum of credit
risk. We are proud of what we have accomplished in Canada over the
past two and one-half years, as well as our growing relationship with
the Canadian investor."
Sentry Select is an investment manager with gross assets under
management in excess of C$8.0 billion.
Annaly manages assets on behalf of institutional and individual
investors worldwide through Annaly and through the funds managed by
its wholly-owned registered investment advisor, FIDAC. At June 30,
2005, Annaly and FIDAC had gross assets under management of
approximately $47.5 billion. Annaly's principal business objective is
to generate net income for distribution to investors from the spread
between the interest income on its mortgage-backed securities and the
cost of borrowing to finance their acquisition and from dividends
Annaly receives from FIDAC, which earns investment advisory fee
income. Annaly, a Maryland corporation has elected to be taxed as a
real estate investment trust ("REIT").
This news release and our public documents to which we refer
contain or incorporate by reference certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements which are based on various assumptions (some of which are
beyond our control) may be identified by reference to a future period
or periods or by the use of forward-looking terminology, such as
"may," "will," "believe," "expect," "anticipate," "continue," or
similar terms or variations on those terms or the negative of those
terms. Actual results could differ materially from those set forth in
forward-looking statements due to a variety of factors, including, but
not limited to, changes in interest rates, changes in yield curve,
changes in prepayment rates, the availability of mortgage-backed
securities for purchase, the availability of financing and, if
available, the terms of any financing, FIDAC's clients removal of
assets FIDAC manages, FIDAC's regulatory requirements, and competition
in the investment management business. For a discussion of the risks
and uncertainties which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk Factors"
in our Annual Report on Form 10-K for the fiscal year ended December
31, 2004. We do not undertake, and specifically disclaim any
obligation, to publicly release the result of any revisions which may
be made to any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date of
such statements.
CONTACT: Annaly Mortgage Management, Inc.
Investor Relations:
1-888-8Annaly
www.annaly.com
SOURCE: Annaly Mortgage Management, Inc.