NEW YORK--(BUSINESS WIRE)--April 19, 2005--Annaly Mortgage
Management, Inc.
(NYSE: NLY) is pleased to announce that its
wholly-owned subsidiary, FIDAC, is the investment manager for Sentry
Select MBS Adjustable Rate Income Fund
II, ("MBS II") an investment
trust which began trading on the Toronto Stock Exchange on April 19.
MBS II is the third investment trust FIDAC manages in Canada. The
first two trusts are Mortgage-Backed Securities Trust
(TSX: MF.UN and
MF.U), launched in April 2003 and MBS Adjustable-Rate Income Fund
(TSX: MTF.UN), launched in November 2004. MBS II (TSX: MGS.UN) raised
C$323 million. RBC Dominion Securities Inc.
was the lead underwriter
for the offering, and CIBC World Markets
Inc. was the co-lead manager.
The investment strategy of MBS II 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. MBS II will utilize leverage within a debt-to-equity band
of 7:1 to 12:1. For its services, FIDAC will be paid a management fee
of 12.5 basis points based on gross assets under management.
Ron Kazel, Executive Vice President for Annaly, commented on the
launch of MBS II. "With the successful launch of MBS II we have now
raised over C$500 million in Canada. We are pleased with the response
we have received from Canadian investors since we first approached
them two years ago, and will work hard to continue to justify their
confidence in us. Our market acceptance only happens with a team
approach, and we are proud of the work of our FIDAC team and our
partners in bringing these three trusts to market."
The manager of the trusts in Canada is Sentry Select Capital Corp.
Sentry Select is an investment manager with total assets under
management of approximately C$4.0 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 December 31,
2004, Annaly and FIDAC had gross assets under management of
approximately $36 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 the
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.