Sentry investment management

Sentry Canadian Income Fund

Growth and Income with Less Volatility

4 star rating

MANAGERS

Michael Simpson photo
Michael Simpson
Aubrey Hearn photo
Aubrey Hearn
Conservative Positioning for What Lies Ahead

After a near decade-long bull market in which many investors rode the wave and gravitated away from fundamentally-driven investing, we may now be nearing an inflection point. The re-emergence of volatility in early 2018 shook many investors out of complacency and forced them to take a hard look at current allocations. If you or your clients are looking for shelter as we move into increasingly uncertain markets, this fund warrants serious consideration.

Market Volatility
CBOE Volatility (VIX) Index
403020100December 31, 2016June 30, 2018
403020100December 31, 2016June 30, 2018
Source: CBOE.com as of March 31, 2018.
Downside Protection is Paramount

Stock selection focused on the highest-quality companies with attractive income characteristics has allowed the fund to weather each of the market sell-offs over the past 10 years and significantly outperform.

Market Sell-Offs of 5% or More
Peak Trough Index Return (%)2Class Fund Return (%)
19-Jun-08 09-Mar-09 -48.5 -36.3
05-Apr-11 04-Oct-11 -20.6 -8.2
03-Sep-14 15-Dec-14 -11.7 -2.5
15-Apr-15 20-Jan-16 -21.5 -6.7
04-Jan-18 09-Feb-18 -8.2 -6.0

Source: Morningstar Direct, as of June 30, 2018. S&P/TSX Composite Index

10 Year Return

Source: Morningstar Direct, as of June 30, 2018. 

Key Reasons to Invest
  • One of Sentry’s most conservative equity funds focused on cash flow and dividend growth
  • Volatility minimization through disciplined, high-quality stock selection
  • Long track record of outperformance versus benchmark with considerable downside protection
Fund details

Fund Size$4.1 billion

Inception DateJuly 28, 20051

Risk RatingLow-to-Medium

12 Mth Dist. Yield4.1%1

1Series F

Fund Codes
ClassLoad CIG
A ISC 50217
B LL 53217
DSC 51217
F - 54217
Income Focus

Evidence shows that our insistence on income – and specifically on dividend growers – has been historically rewarded in the market.

Risk-Reward
Standard Deviation Dividend Cutters Dividend Growers 0 0 10 20 30 1 4 6 8 10 12 14 Return (%)
Standard DeviationDividend CuttersDividend Growers001020301468101214
Source: RBC Capital Markets Quantitative Research, as at December 31, 2017. Based on equally weighted dividend-paying constituents of the S&P/TSX Composite Index, with data from December 1986 to December 2017.
5-Year Dividend Growth Rates
  • 5-Year Dividend Growth Rates
Source: Bloomberg L.P., Sentry Investments, as at December 31, 2017.

Trailing Returns

Class 1 Year 3 Year 5 Year 10 Year Since Inception Inception Date
Sentry Canadian Income Fund – Series A 2.02% 3.69% 7.48% 7.75% 10.81% 2002-02-15
Sentry Canadian Income Fund – Series F 3.15% 4.94% 8.86% 9.15% 9.30% 2005-07-28
S&P/TSX Composite Index 10.41% 6.95% 9.25% 4.24%

Source: Morningstar Direct, as at June 30, 2018. 

Our Philosophical Tenets

Focus on safety of principal and attractive risk-adjusted returns
Identify and understand high-quality companies that are undervalued
Capitalize on short-term market dislocations through bottom-up, company-specific research
Act with conviction when we find great investment ideas
Build portfolios to mitigate risk and achieve superior risk-adjusted returns over the long-term
The information contained herein is not to be used or construed as investment advice or as an endorsement or recommendation of any entity or security discussed. The indicated rates of return are the historical annual compound total returns net of fees (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.