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Sentry Select MBS Adjustable Rate Income Fund II (MGS.UN) signs investment management agreement with Pacific Income Advisers

TORONTO: Sentry Select Capital Corp. (“Sentry Select”), as manager of Sentry Select MBS Adjustable Rate Income Fund II (the “Fund”), is pleased to announce that, effective June 16, 2008, Pacific Income Advisers Inc. (“PIA”) has been engaged as investment manager to Mortgage-Backed Securities Limited Partnership (the “Partnership”). The Fund obtains exposure to the Partnership through a forward agreement.

“We are pleased to have engaged a manager who has experience generating income for investors, with a focus on risk control. We look forward to working with the team at PIA,” said Gordon Higgins, Vice-President, Equities at Sentry Select.

“Pacific Income Advisers looks forward to the opportunity to manage the Fund, and is proud to be partnered with Sentry Select,” said Joseph E. McAdams, CFA, Senior Vice-President, Portfolio Manager at PIA. “Given the current opportunities available in the mortgage-backed securities market, we believe our investment style’s focus on high-quality U.S. Agency mortgage-backed securities and a disciplined risk management process is well-suited to meet our objective of providing both an attractive distribution to shareholders and long-term stability of net asset value.”

Pacific Income Advisers Inc.: PIA is a leading independent, employee-owned investment advisory firm founded in 1986 and located in Santa Monica, California. PIA manages approximately $4 billion in fixed-income assets for institutional and private clients worldwide. Members of PIA’s senior management team also manage Anworth Mortgage Asset Corp., a New York Stock Exchange-listed real estate investment trust with approximately $5.7 billion in mortgage-backed security assets.

Fees: The management fee for the Fund and the investment management fee for the Partnership will be reinstated effective June 16, 2008. The fees were suspended effective May 1, 2008, following the resignation of Fixed Income Discount Advisory Company as investment manager to the Partnership.

Sentry Select Capital Corp.: Sentry Select Capital Corp. is a Canadian wealth management company that manages approximately $6.5 billion in gross assets as of March 31, 2008. The company offers a diverse range of investment products including closed-end investment funds, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates.

More information: Investor Services (broker/investor inquiries) Tel:  1-888-246-6656   Fax: 416-364-1197

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will”, “believe” and similar expressions to the extent they relate to Sentry Select and PIA. The forward-looking statements are not historical facts but reflect Sentry Select’s and PIA’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. Although Sentry Select and PIA believe 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 Select and PIA undertake 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.

Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (