Sentry Select Capital Inc.

Sentry Select Capital Inc.

March 17, 2011 16:30 ET

Unitholders approve restructuring of Sentry Select MBS Adjustable Rate Income Fund II

TORONTO, ONTARIO--(Marketwire - March 17, 2011) - Sentry Select Capital Inc. ("Sentry" or the "Manager") is pleased to announce that at a special meeting held today unitholders of Sentry Select MBS Adjustable Rate Income Fund II (the "Fund") approved the restructuring of the Fund such that, among other things:

  • the Fund will be administered as an open-end mutual fund in compliance with National Instrument 81-102 – Mutual Funds, which will include daily liquidity at the Fund's net asset value per unit;
  • the Fund's investment objectives and investment restrictions will be changed, as described more fully below;
  • the structure of the management fees paid by the Fund to the Manager will be changed, as described more fully below; and
  • the existence of the Fund will be extended beyond April 30, 2015

(collectively, the "Restructuring").

The Restructuring is expected to become effective on or about March 25, 2011 (the "Effective Date").

As a result of the Restructuring, the Fund's investment objectives will be changed to mandate that the Fund seek a balance of current income and long-term capital appreciation by investing primarily in a diversified portfolio of dividend-paying U.S. equity securities, including common and preferred shares and, to a lesser extent, interest bearing securities, such as bonds, bills or banker's acceptances. The Manager believes that the U.S. market offers an excellent investment opportunity for the application of Sentry's investment style.

On the Effective Date, the name of the Fund will be changed to "Sentry U.S. Growth and Income Fund". While the Manager is currently not accepting purchase orders for Class A and Class F units of the Fund, it is anticipated that units of the Sentry U.S. Growth and Income Fund will be available for daily purchase and redemption once qualified for distribution under a simplified prospectus, which is expected to occur on or about May 27, 2011. At such time, it is expected that the Fund will offer Series A, Series F and Series I units with applicable fees similar to those of other equity funds within the Sentry Group of Funds.

As part of the Restructuring, existing Class A and Class X units will be consolidated with Class X units.

Beginning on the Effective Date, the Manager will be paid only that portion of the management fee that the Manager pays directly to investment dealers as a servicing fee for a period of five years for existing unitholders. To that end, the management fee payable to the Manager by the Fund in respect of the new Class X units of the Fund will be set at 0.40% per annum of the monthly average of the daily class net asset value per unit of the assets of the Fund.

Effective April 1, 2016, the management fee in respect of the Class X units will be increased to 2.25% per annum of the monthly average of the daily class net asset value per unit of the assets of the Fund, of which 1.25% will be paid by the Manager to investment dealers as a servicing fee to bring it in line with the management fees and servicing fees of other equity funds within the Sentry Group of Funds.

Sentry Investments

Sentry Investments is a Canadian asset management company that offers a diverse range of investment products including mutual funds, hedge funds, flow-through limited partnerships and other alternative investments, covering a variety of domestic and global mandates.              

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to Sentry. The forward-looking statements are not historical facts but reflect Sentry's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including, but not limited to, the proposed timing for the implementation of the Restructuring. Although Sentry believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Sentry undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law. For a complete disclosure record of the fund, please visit www.sedar.com.

Sentry Select Capital Inc.
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 Inc.
    Investor Relations
    (broker/investor inquiries)
    1-888-730-4623
    416-364-1197 (FAX)
    info@sentry.ca
    www.sentry.ca