Sentry Select R.O.C. Canadian Income Deposit Notes are a medium-term investment vehicle designed to provide the potential for consistent monthly income and capital appreciation through a diversified portfolio of income trusts, fixed-income investments and equities, while protecting 100 per cent of the investor’s capital.

The Deposit Notes are modeled after Sentry Select Canadian Income Fund. The investment strategy involves leverage to invest additional funds, providing investors with up to 125 per cent exposure to the portfolio. Through active asset allocation, exposure is increased when the portfolio performs well, and volatility is reduced during any periods of lower performance.

Investors benefit in several key ways:
• Potential for higher monthly income than one received from traditional GICs or other fixed-income investments. Income can be further enhanced by portfolio leverage.
• Tax-efficiency, as monthly distributions are paid in the form of return of principal
• Active asset allocation that increases exposure when the portfolio performs well, and reduces volatility during any periods of lower performance
• Principal protection, as investors are guaranteed to receive the full value of their original investment when the Notes mature after eight years, plus the value of any portfolio appreciation

The Notes meet the needs of investors who aim to enhance their portfolio diversification without adding the risk of traditional equities. As a result, the Notes can provide increased return potential and reduced volatility in a well-balanced portfolio.