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Unitholders of Sentry Select Diversified Income Fund Approve Restructuring of the Fund

TORONTO, ONTARIO--(Marketwire - June 26, 2009) - Sentry Select Capital Inc. ("Sentry Select" or the "Manager") is pleased to announce that unitholders of Sentry Select Diversified Income Fund (the "Fund")(TSX:SDT.UN) have voted, at a special meeting held today, to approve the restructuring of the Fund (the "Restructuring"). Unitholders approved the proposal to:

  1. convert the Fund from a closed-end investment fund to an open-end mutual fund which will, among other things, provide for the units of the Fund (the "Units") to become redeemable on a daily basis, at the net asset value ("NAV") per Unit, subject to a declining redemption fee schedule, and the implementation of all matters necessary, or ancillary to, the mutual fund conversion;
  2. amend the management agreement between the Manager and the Fund by reducing the management fee of the Fund and eliminating the fee payable to the Manager upon termination of the management agreement, in settlement of indebtedness of $23,945,138 under the promissory notes of Sentry Select Capital Corp. held by the Fund;
  3. amend the investment objectives of the Fund; and
  4. have Sentry Select become the successor trustee of the Fund upon the resignation of the Computershare Trust Company of Canada, the current trustee of the Fund.

In a press release, dated June 23, 2009, the Manager announced an amendment to the Restructuring. Under the amendment the annual management fee payable would be reduced to 0.75% 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 Fund is expected to convert into an open-end mutual fund on or about August 14, 2009. The Fund's units are expected to be de-listed from trading on the Toronto Stock Exchange on or about August 4, 2009.

Unitholders will have an initial option, prior to effecting the conversion, to redeem their Units at NAV per Unit as of July 31, 2009, subject to a 5% Redemption Fee.

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.

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 proposed timing for implementing the Conversion, the timing of the de-listing of the Fund's units from the Toronto Stock Exchange and the failure to receive all required regulatory and unitholder approvals to implement the Conversion. 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. For a complete disclosure record for the Fund, please visit the Fund's profiles at

Les documents (y compris les communiqués de presse) se rapportant aux divers fonds d'investissement pour lesquels Sentry agit à titre de gestionnaire ou de conseiller ne sont fournis qu'à titre informatif. Ces documents ne peuvent être considérés comme étant exhaustifs ou exempts d'erreur sans un examen approfondi de la totalité des documents se rapportant à un fonds d'investissement en particulier disponibles sur SEDAR (