Sentry Select Capital Corp., manager of Sentry Select Blue-Chip Income Trust, said Tuesday it is suspending its distributions beginning this month.
Sentry Select said distributions may be reinstated later if market conditions improve and allow the trust’s managed portfolio to achieve sufficient growth to sustain future distributions. It also said the management fee is being reduced to 0.448%, effective June 1 and will remain at this level until distributions are reinstated.
“The suspension of distributions helps ensure that the capital-protection feature of Blue-Chip Income Trust remains in place,” the company said. “Through continuous monitoring of the managed portfolio, Sentry Select will continue to take necessary actions to allow for full repayment to unitholders of the original investment of $25 per unit at termination.”