Appuyez sur la touche Retour pour passer au contenu principal

Sentry Investissements Inc. annonce la dissolution proposée de la Fiducie de revenu indice mondial Sentry Select (TSX : SGT.UN) et la renonciation à ses frais de gestion (anglais)
2012-03-19

TORONTO, ONTARIO--(Marketwire - March 19, 2012) - Sentry Investments Inc. ("Sentry" or the "Manager"), the manager of Sentry Select Global Index Income Trust (the "Trust"), announces that a special meeting of the Trust's unitholders (the "Meeting") will be held for the purpose of considering the proposed termination of the Trust, which is projected to occur on or about June 22, 2012 (the "proposed termination"). The Trust is currently scheduled to terminate on August 31, 2013.

The Manager believes that the proposed termination of the Trust is in the best interests of unitholders for the following reasons:

  • The Trust will likely not be able to achieve its stated investment objective of returning the original issue price of $25.00 per trust unit ("Unit") on its scheduled termination date of August 31, 2013, as the size of the Trust's Managed Portfolio ($171,652 as at March 15, 2012) is insufficient to meet the Trust's projected monthly operating expenses (which include, among other costs, the cost of audit, transfer agent, legal fees and regulatory filing fees) of approximately $13,000 (excluding management fees). The net asset value of the Trust as of March 15, 2012 was $6,292,761, or $25.00 per Unit. The Managed Portfolio represented approximately 2.7% of the Trust's net asset value as at March 15, 2012.

  • In order to provide the Trust with the means to return the original issue price of Units on termination, the Trust entered into the Forward Agreement with National Bank of Canada ("NBC") pursuant to which NBC agreed to pay to the Trust an amount equal to $25.00 for each Unit outstanding on the scheduled termination date in exchange for the Trust agreeing to deliver to NBC the equity securities contained within the Fixed Portfolio that the Trust acquired with the gross proceeds of the initial public offering. If the Trust were to continue, the Manager would be required to partially unwind the Trust's Forward Agreement in order to pay operating expenses described above and thus increase the risk that unitholders would receive less than the anticipated $25.00 per Unit on termination.

  • Additionally, as a result of the continual reduction of the Trust's issued and outstanding Units through the Trust's monthly and annual redemptions, the remaining unitholders are bearing a higher proportion of the Trust's expenses. The proposed termination of the Trust will provide for a liquidity event that will allow all unitholders to liquidate their positions in the Trust and do so at the net asset value per Unit, rather than being subject to the discount to net asset value associated with either selling Units through the Toronto Stock Exchange or by tendering Units to the Trust's monthly redemption program.

  • The Manager believes that given the assets of the Trust are substantially invested in the Forward Agreement and Fixed Portfolio (96.9% as at March 15, 2012), investors may wish to approve the proposed termination of the Trust and redeploy the proceeds of termination into potentially more productive investment opportunities.

The Meeting is expected to be held on or about May 15, 2012 to seek unitholder approval for the proposed termination. A Management Information Circular providing a complete description of the matters to be considered at the Meeting will be sent to unitholders of record in due course.

The Manager has agreed to bear the associated costs of the Meeting, while the fees and expenses in respect of the proposed termination will be borne by the Fund.

The proposed termination will be presented by the Manager to the Trust's Independent Review Committee for its consideration.

Management Fee

The Manager also announces that it is waiving its management fee effective March 1, 2012 until the termination of the Trust, regardless of whether or not the proposed termination of the Trust is approved by unitholders. The Manager had been receiving a management fee at an annual rate of 0.30% of the Trust's net asset value.

Sentry Select Global Index Income Trust

Sentry Select Global Index Income Trust is a closed-end investment trust that aims to (i) provide unitholders with the return of the original issue price of the Units ($25.00 per Unit) to unitholders upon the Trust's termination on August 31, 2013; and (ii) preserve and potentially enhance the value of the Trust's Managed Portfolio. The Trust's Units trade on the Toronto Stock Exchange under the symbol SGT.UN.

Sentry Investments

Sentry Investments is a Canadian asset management company with approximately $7 billion in assets under management on behalf of Canadian investors. Sentry Investments offers a diverse range of investment products including mutual funds, hedge funds, flow-through limited partnerships and other alternative investment products. Sentry Investments was recognized as Canada's Best Equity Funds Group at the 2011 and 2012 Lipper Fund Awards and was one of only five companies in 2011 to receive the prestigious Brendan Wood International TopGun Asset Management Team Award.

Capitalized terms used herein, but undefined, are as defined in the Trust's amended and restated Declaration of Trust dated January 1, 2009.

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 projected date of the Trust's proposed termination. 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 Trust, please visit its profile 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

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 (www.sedar.com).