Toronto-based Sentry Investments Inc. plans to re-open two corporate class fixed-income funds on Jan. 2, 2015.
Sentry Enhanced Corporate Bond Class (formerly Sentry Enhanced Corporate Bond Capital Yield Class) and Sentry Tactical Bond Class (formerly Sentry Tactical Bond Capital Yield Class) were closed to new and additional purchases as of Apr. 5, 2013 in response to the federal government’s announcement that it would eliminate certain tax advantages relative to transactions that changed the character of fund income from ordinary interest income to capital gains.
Beginning Jan. 1, 2015, as interest income generated by the funds will no longer be convertible into capital gains, the funds will no longer employ such forward arrangements. Instead, each fund’s primary investment strategy will be to invest in that fund’s respective trust counterpart, or to invest directly in fixed-income securities.
“We are always looking for ways to provide Canadian advisors and investors with more choice and flexibility,” says Sean Driscoll, CEO, Sentry Investments. “We continue to enhance Sentry’s corporate-class line-up, and the reopening of Sentry’s corporate-class fixed-income funds makes it that much stronger.”
All the other benefits of a corporate-class structure remain, including the ability to switch from one fund to another within Sentry Corporate Class Ltd. without triggering a taxable event.
Sentry manages over $16 billion in assets on behalf of more than 450,000 Canadian investors.