TORONTO: The Board of Directors of Sentry Select Capital Inc. (“Sentry Select” or the “Manager”) announces that it will seek unitholder approval for the mergers of Select 50 S-1 Income Trust, Sentry Select Focused Growth & Income Trust, Multi Select Income Trust, Pro-Vest Growth & Income Fund and Sentry Select 40 Split Income Trust (each a “Terminating Fund” and collectively the “Terminating Funds”) with Sentry Select Canadian Income Fund (“Canadian Income Fund” or the “Continuing Fund”), an open-end mutual fund (each a “Merger” and collectively, the “Mergers”).
For each Merger that is approved, the Terminating Fund will transfer all of its assets to Canadian Income Fund in exchange for Series A units of Canadian Income Fund and the assumption by Canadian Income Fund of all the liabilities of the Terminating Fund. The Terminating Fund will then wind up and each unitholder of the Terminating Fund will receive Series A units of Canadian Income Fund having the same aggregate net asset value as their units of the Terminating Fund.
If the unitholders of Select 50 S-1 Income Trust do not approve the Merger, the unitholders will be asked to approve an amended investment objective. If unitholders of Sentry Select 40 Split Income Trust do not approve the Merger, the fund will be terminated. If unitholders of any other Terminating Fund do not approve the Merger, the Terminating Fund’s mandate will remain unchanged.
The Mergers: Each Merger will require approval by two-thirds of the votes cast by unitholders of each of the Terminating Funds at a special meeting of the unitholders, expected to be held jointly on or about May 20, 2009 (the “Special Meetings”). The record date for the purpose of determining which unitholders are entitled to receive notice and vote at the Special Meetings will be the close of business on or about April 13, 2009. The information circular containing a complete description of the matters to be considered at the Special Meetings, as well as the rationale for the proposed Mergers, will be sent to unitholders in April 2009.
The proposed Mergers will be reviewed by the Independent Review Committee of each Terminating Fund and of the Continuing Fund. The proposed Mergers are subject to regulatory approval.
Costs of the Mergers: All costs and expenses associated with the Mergers will be borne by the Manager.
Tax consequences of the Mergers: The Manager is proposing that the Mergers be effected on a taxable basis.
Rationale for the Mergers: The Manager believes that the Mergers will be beneficial to the unitholders of the Terminating Funds for the following reasons:
Sentry Select Canadian Income Fund: Sentry Select Canadian Income Fund is a open-end mutual fund with approximately $360 million in assets. The investment objective of the Continuing Fund is to provide consistent monthly income and capital appreciation by investing primarily in a diversified portfolio of Canadian securities including equities, fixed-income instruments, real estate investment trusts and income trusts. The Continuing Fund currently pays a distribution of $0.0775 which represents an annual yield of approximately 8.63% as of March 25, 2009.
Sentry Select Capital Inc.: Sentry Select Capital Inc. is a Canadian wealth management company that offers a diverse range of investment products including closed-end trusts, 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: 1-888-730-4623Fax: 416-364-1197Email: email@example.com
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 Select. The forward-looking statements are not historical facts but reflect Sentry Select’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, failure to receive all required regulatory approvals to implement the Mergers should they be approved by unitholders at the Joint Special Meeting. Although Sentry Select 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 Select 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. Past results are not a guarantee of future performance. For a complete disclosure record for all of the Terminating Funds and of the Continuing Fund, please visit their respective profiles at www.sedar.com.
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 (www.sedar.com).