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Sentry Investments Inc. announces the implementation of the Diversified Preferred Share Trust restructuring and provides indicative distribution amount
2013-05-27

TORONTO, ONTARIO--(Marketwired - May 27, 2013) - Sentry Investments Inc. ("Sentry" or the "Manager") is pleased to announce that the restructuring of Diversified Preferred Share Trust (the "Fund") was completed on May 24, 2013 (the "Effective Date"). As of the Effective Date, the Fund has been renamed "Sentry Global Balanced Income Fund" and will be administered as a National Instrument 81-102- Mutual Funds compliant open-end mutual fund. Existing Fund unitholders were converted to Series X units of the Fund.

As a part of its restructuring, the Fund's investment objective has been changed to mandate that the Fund provide investors with stable income and long-term capital appreciation by investing in a diversified portfolio consisting primarily of global equity and fixed-income securities.

The restructuring of the Fund, which was approved by unitholders at a special meeting held on April 22, 2013, will provide several potential benefits for unitholders.

  • With exposure to global markets in a balanced mandate, the Fund provides broader and more diversified investment opportunities.
  • The Fund will be better able to benefit from its existing tax losses, which currently amount to approximately $38 million in capital losses. These losses will generally permit the Fund's future distributions to receive more favourable tax treatment in the hands of unitholders.
  • Unitholders will benefit from the investment potential associated with an actively managed portfolio, as opposed to the Fund's previously employed passive, rules-based, investment strategy.
  • The Fund's units will be redeemable on a daily basis at its series net asset value per unit.
  • Sentry, in its capacity as the manager of the Fund following implementation of the restructuring, has decided to eliminate the management fee in respect of the Series X units until June 1, 2016.
  • Many of the unnecessary trading costs associated with the required purchase and liquidation of portfolio securities at inopportune times, as was previously associated with administering the Fund's rules-based portfolio may be alleviated.
  • The Fund will have a broader investment mandate, which may attract new investors, spreading the fixed operating expenses of the Fund over a larger unitholder base.

It is anticipated that units of Sentry Global Balanced Income Fund will be available for daily purchase once qualified for distribution under a simplified prospectus, which is expected to occur on or about June 4, 2013, subject to regulatory approval. At such time, it is expected that the Fund will offer Series A, F and I units with applicable fees similar to those of other balanced income funds within the Sentry Group of Funds.

Sentry is also pleased to announce that the Fund's indicative distribution amount, beginning with the June distribution, will be $0.0706 per Series X unit/per month. Based on the latest net asset value per Series X unit of $21.19, the annualized yield is targeted at approximately 4.0%. Please note, however, that if the make-up of the Fund's portfolio changes, actual distribution amounts may differ.

Sentry Investments

Sentry Investments was founded in 1997 and has grown to become one of Canada's largest and fastest-growing independent asset management companies. Sentry manages $10 billion in assets on behalf of more than 350,000 Canadian investors. Sentry offers a diverse range of award-winning investment products available through financial advisors, including domestic, international and income-oriented mutual funds and separately managed accounts. Sentry is one of only three firms to receive four consecutive Brendan Wood International TopGun Asset Management Team Awards (2009 to 2012).

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

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, including but not limited to, the Fund's indicative distribution amount and targeted yield. 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 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 Sentry Group of Funds, please visit their profiles at www.sedar.com.

Sentry Investments Inc.
Commerce Court West
199 Bay Street, Suite 4100
P.O. Box 108
Toronto, ON M5L 1E2
Tel: 416-364-9297
Fax: 416-364-1197
Sentry Investments Inc.
Investor Relations
(broker/investor inquiries)
1-888-730-4623
416-364-1197 (FAX)
info@sentry.ca
www.sentry.ca

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).