Sentry Select Capital Corp. today announced the closing of Sentry Select Diversified Income Trust exchange offer.

At the closing, the trust issued 64,298,759 units for total gross proceeds of $305,232,639.

The trust 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 has agreed to reimburse the trust for the expenses of the exchange offer, including the solicitation and agency fees, incurred by the Trust in 28 equal quarterly instalments (due January 1, April 1, July 1 and October 1), together with interest, beginning on Jan. 1, 2009. This obligation will be evidenced by a promissory note, which will bear interest from the date of issue at the prime rate of interest posted from time to time by the trust’s bank.

National Bank Financial Inc. was the dealer manager for the exchange offer.

Sentry Select is a Canadian wealth management company that manages approximately $8 billion in gross assets as of September 30.