Press enter to skip to main page content

Sentry Select Capital Inc. announces important amendment to the Sentry Select Diversified Income Fund restructuring proposal: annual management fee to be significantly reduced
2009-06-23

Toronto: Sentry Select Capital Inc. (the “Manager” or “Sentry Select”) announces the following significant amendment to the restructuring proposal of Sentry Select Diversified Income Fund (the “Fund”) previously announced on May 25, 2009.

The Manager is proposing to further reduce the annual management fee payable over the course of the declining redemption fee schedule following the conversion of the Fund to an open-end mutual fund. The original proposal provided for an annual management fee reduction from 1.50% to 1.25% of the Fund’s net asset value (“NAV”). The Manager is now proposing to waive a portion of the annual management fee thereby reducing the fee to 0.75% of NAV until December 31, 2010, with the annual management fee payable increasing in line with the declining redemption fee schedule as follows:

 

----------------------------------------------------------------------------
Period                                    Annual Management  Redemption Fee
                                          Fee Payable 
----------------------------------------------------------------------------
Until December 31, 2010                               0.75%              5%
----------------------------------------------------------------------------
From January 1, 2011 to December 31, 2011             0.90%              4%
----------------------------------------------------------------------------
From January 1, 2012 to December 31, 2012             1.05%              3%
----------------------------------------------------------------------------
From January 1, 2013 to December 31, 2013             1.15%              2%
----------------------------------------------------------------------------
From January 1, 2014 to December 31, 2014             1.25%              1%
----------------------------------------------------------------------------
From January 1, 2015 onwards                          1.25%              0%
----------------------------------------------------------------------------

The remaining elements of the restructuring proposal remain intact. Benefits to unitholders include: an increase in realizable value by eliminating the discount to NAV; an increase in liquidity of the Fund’s units; a reduction in management fees; and expanded investment objectives for the Fund. Please review the Management Information Circular dated May 26, 2009 for more information regarding the restructuring proposal.

A special meeting of unitholders is scheduled to take place on June 26, 2009 at 10:00 a.m. (Toronto time) (the “Meeting”). Proxy forms sent to unitholders in advance of the Meeting remain valid and unitholders have until Wednesday, June 24, 2009 at 4:00 p.m. (Toronto time) to exercise their right to vote. A unitholder may change their vote by resubmitting their proxy or by voting online at www.proxyvote.com or by telephone at 1-800-474-7493 using their individual control number.

Sentry Select Diversified Income Fund: Sentry Select Diversified Income Fund is a closed-end investment trust that aims to maximize distributions to unitholders by investing primarily in high-income securities issued by a broad range of royalty and income trusts, real estate investment trusts, and limited partnerships and, to a lesser extent, fixed-income securities and high-yielding common stocks.

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 and media inquiries)
Tel: 1-888-730-4623
Fax: 416-364-1197
Email: info@sentryselect.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, the timing of the Meeting and the proxy voting deadline. 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.


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).