N-CSRS 1 v471994_ncsr.htm N-CSRS

  

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

Form N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

 

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-214

 

SENTINEL GROUP FUNDS, INC.

 

National Life Drive, Montpelier, Vermont 05604

 

Sentinel Asset Management, Inc.

 

National Life Drive, Montpelier, Vermont 05604

 

Registrant's telephone number, including area code:

 

(802) 229-3113

 

Date of fiscal year end: November 30, 2017

 

Date of reporting period: December 1, 2016 to May 31, 2017

 

  

 

 

Semi-Annual Report &
Privacy Notice To Our Customers

May 31, 2017

 

     
     
     
     
  Sentinel Common Stock Fund  
  Sentinel Small Company Fund  
     
  Sentinel Balanced Fund  
  Sentinel Multi-Asset Income Fund  
  Sentinel Sustainable Core Opportunities Fund  
     
  Sentinel International Equity Fund  
     
  Sentinel Government Securities Fund  
  Sentinel Low Duration Bond Fund  
  Sentinel Total Return Bond Fund  
  Sentinel Unconstrained Bond Fund  
     
     
     
     

 

www.sentinelinvestments.com

 

 

 

 

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Table of Contents

 

4   Message to Shareholders
     
5   Understanding your Sentinel Funds Financial Statements
     
6   Sentinel Balanced Fund
     
9   Sentinel Common Stock Fund
     
11   Sentinel Government Securities Fund
     
13   Sentinel International Equity Fund
     
15   Sentinel Low Duration Bond Fund
     
18   Sentinel Multi-Asset Income Fund
     
21   Sentinel Small Company Fund
     
23   Sentinel Sustainable Core Opportunities Fund
     
25   Sentinel Total Return Bond Fund
     
28   Sentinel Unconstrained Bond Fund
     
30   Statement of Assets and Liabilities
     
34   Statement of Operations
     
36   Statement of Changes in Net Assets
     
40   Financial Highlights
     
52   Notes to Financial Statements
     
69   Actual and Hypothetical Expenses for Comparison Purposes
     
70   Expenses
     
72   Directors & Officers
     
75   Privacy Notice To Our Customers

 

 

 

 

Message to Shareholders

 

 

 

Thomas H. Brownell
President and Chief Executive Officer
Sentinel Asset Management, Inc.

 

Dear Fellow Shareholders,

 

It has been my distinct honor to lead the Sentinel Asset Management (“Sentinel”) organization over the past four years. We have taken great strides to improve our investment management capabilities and strengthen the performance of many of our mutual fund products during this time. Sentinel’s unwavering objective has always been to help our clients achieve their long-term investment objectives by acting as strong stewards of your hard-earned capital.

 

At times, being a good steward of capital includes evaluating multiple options that may strengthen our shareholders’ investment experience in the future. As such, on April 18, 2017, Sentinel Asset Management entered into an agreement to sell its mutual fund advisory business to Touchstone Advisors, Inc. (“Touchstone Advisors”), investment advisor to the Touchstone family of mutual funds. Touchstone Advisors is an indirect, wholly-owned subsidiary of Western & Southern Mutual Holding Company. Currently, Touchstone Advisors’ retail mutual fund platform includes 35 separate mutual funds (the “Touchstone Funds”), covering a wide array of investment strategies that are sub-advised either by their affiliate, Fort Washington Investment Advisors, or by various third party institutional investment managers.

  

In connection with Sentinel’s decision to exit the mutual fund asset management business, Sentinel recommended and the Board of Directors of Sentinel Group Funds, Inc. approved an Agreement and Plan of Reorganization with respect to each of the Sentinel Funds listed below. Under this Agreement, each Sentinel Fund would be reorganized (each, a “reorganization”) into a corresponding Touchstone Fund, as indicated in the table below. Each reorganization is subject to the approval of the shareholders of the applicable Sentinel Fund.

 

Target Sentinel Funds Acquiring Touchstone Funds
Sentinel Balanced Fund Touchstone Balanced Fund, a newly created series of Touchstone Strategic Trust
Sentinel Common Stock Fund Touchstone Large Cap Focused Fund, a newly created series of Touchstone Strategic Trust
Sentinel Government Securities Fund Touchstone Active Bond Fund
Sentinel International Equity Fund Touchstone International Equity Fund, a newly created series of Touchstone Strategic Trust
Sentinel Low Duration Bond Fund Touchstone Ultra Short Duration Fixed Income Fund
Sentinel Multi-Asset Income Fund Touchstone Flexible Income Fund
Sentinel Sustainable Core Opportunities Fund Touchstone Sustainability and Impact Equity Fund
Sentinel Small Company Fund Touchstone Small Company Fund, a newly created series of Touchstone Strategic Trust
Sentinel Total Return Bond Fund Touchstone Active Bond Fund

 

Shortly, you will be receiving additional information on this transaction, including a Joint Proxy Statement/Prospectus that describes each reorganization in greater detail. I would like to thank you for the trust you have placed in us over the years. We have always valued that trust, and we are highly confident that your investment dollars will be in very capable and experienced hands with Touchstone Advisors going forward.

 

/s/ Thomas H. Brownell

 

This article contains the current opinions of the author but not necessarily those of Sentinel Investments. The author’s opinions are subject to change without notice. This article is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

 

4  

 

 

 

 

Understanding your Sentinel Funds Financial Statements

 

1 Schedule of Investments

 

This schedule shows you which investments your fund owned on the last day of the reporting period. The schedule includes:

 

•a list of each investment

 

•the number of shares/par amount of each stock, bond or short-term note

 

•the market value of each investment

 

•the percentage of investments in each industry

 

•the percent and dollar breakdown of each category

 

2 Statement of Assets and Liabilities

 

This statement details what the fund owns (assets), what it owes (liabilities), and its net assets as of the last day of the period. If you subtract what the fund owes from what it owns, you get the fund’s net assets. For each class of shares, the net assets divided by the total number of shares outstanding gives you the price of an individual share, or the net asset value per share.

 

Net assets are also broken down by capital (money invested by shareholders); net investment income not yet paid to shareholders or net investment losses, if any; net gains earned on investments but not yet paid to shareholders or net losses on investments (known as realized gains or losses); and finally gains or losses on securities still owned by the fund (known as unrealized appreciation or depreciation). This breakdown tells you the value of net assets that are performance-related, such as investment gains or losses, and the value of net assets that are not related to performance, such as shareholder investments and redemptions.

 

3 Statement of Operations

 

This statement breaks down how each fund’s net assets changed during the period as a result of the fund’s operations. It tells you how much money the fund made or lost after taking into account income, fees and expenses, and investment gains or losses. It does not include shareholder transactions and distributions. Fund operations include:

 

•income earned from investments

 

•management fees and other expenses

 

•gains or losses from selling investments (known as realized gains or losses)

 

•gains or losses on current fund holdings (known as unrealized appreciation or depreciation)

4 Statement of Changes in Net Assets

 

This statement shows how each fund’s net assets changed over the past two reporting periods. It details how much a fund grew or shrank as a result of:

 

•operations — a summary of the Statement of Operations for the most recent period

 

•distributions — income and gains distributed to shareholders

 

•capital share transactions — shareholders’ purchases, reinvestments, and redemptions

 

Net assets at the beginning of the period plus the sum of operations, distributions to shareholders and capital share transactions result in net assets at the end of the period.

 

5 Financial Highlights

 

This statement itemizes current period activity and statistics and provides comparison data for the last five fiscal years (or less if the fund or share class is not five years old). On a per-share basis, it includes:

 

•share price at the beginning of the period

 

•investment income and capital gains or losses

 

•income and capital gains distributions paid to shareholders

 

•share price at the end of the period

 

It also includes some key statistics for the period:

 

•total return — the overall percentage return of the fund, assuming reinvestment of all distributions

 

•expense ratio — operating expenses as a percentage of average net assets

 

•net income ratio — net investment income as a percentage of average net assets

 

•portfolio turnover — the percentage of the portfolio that was replaced during the period

 

  5

 

 

 

 

Sentinel Balanced Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Portfolio Weightings

 

Asset Category Percent of Net Assets
Domestic Common Stocks 61.8%
U.S. Government Obligations 24.7%
Domestic Exchange Traded Funds 8.9%
Foreign Stocks & ADR's 1.9%
Real Estate Investment Trusts 0.8%
Domestic Corporate Bonds 0.4%
Cash and Other 1.5%

 

Top 10 Equity Holdings*

 

Description Percent of Net Assets
iShares iBoxx $ Investment Grade Corporate  
Bond ETF 7.4%
Microsoft Corp. 2.5%
Apple, Inc. 2.1%
Visa, Inc. 1.9%
Alphabet, Inc. 1.7%
Texas Instruments, Inc. 1.6%
Comcast Corp. 1.5%
S&P Global, Inc. 1.4%
McDonald's Corp. 1.4%
Philip Morris Int'l., Inc. 1.4%
Total of Net Assets 22.9%

Top 10 Fixed Income Holdings*

 

    Maturity Percent of
Description Coupon Date Net Assets
FHLMC Q29056 4.00% 10/01/44 1.5%
FNMA TBA 15YR June 2.50% 06/19/32 1.5%
FNMA AT2016 3.00% 04/01/43 1.2%
FHLMC Q02664 4.50% 08/01/41 1.0%
FNMA BC1809 3.50% 05/01/46 0.7%
FNMA AZ7347 3.00% 11/01/45 0.7%
FHLMC Q29260 4.00% 10/01/44 0.6%
FHR 3859 JB 5.00% 05/15/41 0.5%
GNMA II 005175 4.50% 09/20/41 0.5%
FNMA AS4707 3.50% 04/01/45 0.4%
Total of Net Assets     8.6%

 

Average Effective Duration (for all Fixed Income Holdings) 1.1 years**

 

*"Top 10 Equity Holdings" and "Top 10 Fixed Income Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

**The average effective duration considers the call and put dates of applicable fixed income investments and the pre payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 24.7%          
U.S. Government Agency Obligations 24.7%          
Federal Home Loan Bank 13.4%          
Agency Discount Notes:          
0.6%, 06/02/17   46,000 M   $45,999,233 
Federal Home Loan Mortgage Corporation 4.2%          
Collateralized Mortgage Obligations:          
FHR 3859 JB          
5%, 05/15/41   1,657 M    1,806,035 
Mortgage-Backed Securities:          
15-Year:          
FHLMC G18091          
6%, 12/01/20   2 M    1,657 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FHLMC J22900          
2.5%, 03/01/28   1,059 M   $1,077,189 
         1,078,846 
20-Year:          
FHLMC P00020          
6.5%, 10/01/22   19 M    19,082 
30-Year:          
FHLMC G08062          
5%, 06/01/35   5 M    5,508 
FHLMC Q02664          
4.5%, 08/01/41   3,231 M    3,490,845 
FHLMC Q29260          
4%, 10/01/44   2,060 M    2,176,103 
FHLMC Q29056          
4%, 10/01/44   4,861 M    5,134,215 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FHLMC G08637          
4%, 04/01/45   838 M   $885,069 
         11,691,740 
Total Federal Home Loan Mortgage Corporation        14,595,703 
Federal National Mortgage Association 6.3%          
Mortgage-Backed Securities:          
15-Year:          
FNMA 254907
5%, 10/01/18		   2 M    1,695 
FNMA 255273
4.5%, 06/01/19		   4 M    3,646 
FNMA 255358
5%, 09/01/19		   934    961 
FNMA TBA 15YR June
2.5%, 06/19/32(a)		   4,920 M    4,968,382 
         4,974,684 

 

6 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Balanced Fund

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
30-Year:          
FNMA 687301
6%, 11/01/32		   34   $39 
FNMA 690305
5.5%, 03/01/33		   1 M    1,452 
FNMA 748895
6%, 12/01/33		   99 M    107,432 
FNMA 725423
5.5%, 05/01/34		   930 M    1,044,089 
FNMA 725610
5.5%, 07/01/34		   864 M    970,830 
FNMA AD9193
5%, 09/01/40		   497 M    546,899 
FNMA AH8925
4.5%, 03/01/41		   1,060 M    1,146,316 
FNMA AL2860
3%, 12/01/42		   1,174 M    1,185,878 
FNMA AR9195
3%, 03/01/43		   779 M    786,658 
FNMA AT2016
3%, 04/01/43		   4,065 M    4,105,479 
FNMA AL5718
3.5%, 09/01/44		   528 M    547,785 
FNMA AS4707
3.5%, 04/01/45		   1,335 M    1,381,869 
FNMA AZ7347
3%, 11/01/45		   2,225 M    2,237,339 
FNMA BC1809
3.5%, 05/01/46		   2,384 M    2,461,809 
         16,523,874 
Total Federal National Mortgage Association        21,498,558 
Government National Mortgage Corporation 0.8%          
Collateralized Mortgage Obligations:          
GNR 10-169 AW
4.5%, 12/20/40		   750 M    816,402 
GNR 12-147 Interest Only
0.5686%, 04/16/54		   7,767 M    289,400 
         1,105,802 
Mortgage-Backed Securities:          
30-Year:          
GNMA II 005175
4.5%, 09/20/41		   1,660 M    1,795,576 
Total Government National Mortgage Corporation        2,901,378 
Total U.S. Government Obligations
(Cost $84,709,078)		        84,994,872 
Domestic Corporate Bonds 0.4%          
Communications 0.2%          
AT&T, Inc.
3.8%, 03/15/22		   552 M    575,194 
Consumer Non-Cyclical 0.0%+          
Zoetis, Inc.
3.25%, 02/01/23		   139 M    143,156 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Financials 0.2%          
Brookfield Asset Management, Inc.
4%, 01/15/25		   468 M   $475,199 
Wells Fargo & Co.
4.1%, 06/03/26		   63 M    65,526 
         540,725 
Insurance 0.0%+          
Kemper Corp.
4.35%, 02/15/25		   158 M    160,406 
Total Domestic Corporate Bonds
(Cost $1,386,000)		        1,419,481 

 

       Value 
   Shares   (Note 2) 
Domestic Common Stocks 61.8%          
Consumer Discretionary 8.0%          
Amazon.com, Inc.*   800    795,696 
Comcast Corp.   120,000    5,002,800 
Goodyear Tire & Rubber Co.   60,000    1,933,200 
Home Depot, Inc.   15,000    2,302,650 
Marriott Int'l., Inc.   31,100    3,347,915 
McDonald's Corp.   33,000    4,979,370 
Omnicom Group, Inc.   31,000    2,595,320 
Time Warner, Inc.   30,000    2,984,700 
TJX Cos., Inc.   45,000    3,384,450 
         27,326,101 
Consumer Staples 6.4%          
CVS Health Corp.   20,000    1,536,600 
Estee Lauder Cos, Inc.   30,000    2,824,200 
Kraft Heinz Co.   30,000    2,766,000 
McCormick & Co., Inc.   15,000    1,562,250 
PepsiCo, Inc.   40,000    4,674,800 
Philip Morris Int'l., Inc.   40,000    4,792,000 
Procter & Gamble Co.   45,000    3,964,050 
         22,119,900 
Energy 3.9%          
Chevron Corp.   20,000    2,069,600 
EOG Resources, Inc.   25,000    2,257,750 
ExxonMobil Corp.   38,000    3,059,000 
Marathon Petroleum Corp.   40,000    2,081,600 
Noble Energy, Inc.   50,000    1,434,500 
Schlumberger Ltd.   37,700    2,623,543 
         13,525,993 
Financials 11.0%          
American Express Co.   25,000    1,923,500 
Chubb Ltd.   20,000    2,863,800 
CME Group, Inc.   35,000    4,105,150 
Comerica, Inc.   15,000    1,028,400 
Discover Financial Services   40,000    2,348,000 
JPMorgan Chase & Co.   39,000    3,203,850 
Morgan Stanley   100,000    4,174,000 

 

       Value 
   Shares   (Note 2) 
PNC Financial Services Group, Inc.   30,000   $3,561,000 
S&P Global, Inc.   35,000    4,998,350 
Signature Bank*   15,000    2,145,300 
The Travelers Cos., Inc.   35,000    4,369,750 
Webster Financial Corp.   15,000    730,800 
Wells Fargo & Co.   45,000    2,301,300 
         37,753,200 
Health Care 9.4%          
Amgen, Inc.   20,000    3,104,800 
Becton Dickinson & Co.   15,000    2,838,450 
Biogen, Inc.*   5,000    1,238,850 
Bristol-Myers Squibb Co.   50,000    2,697,500 
Eli Lilly & Co.   25,000    1,989,250 
Johnson & Johnson   25,000    3,206,250 
Medtronic PLC(b)   55,320    4,662,369 
Merck & Co., Inc.   70,000    4,557,700 
Stryker Corp.   15,000    2,144,400 
UnitedHealth Group, Inc.   20,000    3,503,600 
Zoetis, Inc.   40,000    2,491,200 
         32,434,369 
Industrials 6.6%          
Boeing Co.   20,000    3,752,600 
Canadian National Railway Co.   45,000    3,484,350 
General Dynamics Corp.   15,000    3,048,750 
Honeywell Int'l., Inc.   35,000    4,654,650 
Johnson Controls Int'l. plc   57,300    2,392,848 
United Technologies Corp.   25,000    3,032,000 
Verisk Analytics, Inc.*   30,000    2,426,700 
         22,791,898 
Information Technology 14.3%          
Accenture PLC   32,400    4,032,828 
Alphabet, Inc.*   6,000    5,789,160 
Apple, Inc.   48,000    7,332,480 
Check Point Software Technologies Ltd.*   25,000    2,801,250 
Cisco Systems, Inc.   125,000    3,941,250 
Cognizant Technology Solutions Corp.   38,000    2,542,580 
Microsoft Corp.   125,000    8,730,000 
Synopsys, Inc.*   30,000    2,246,100 
Texas Instruments, Inc.   65,000    5,361,850 
Visa, Inc.   68,000    6,475,640 
         49,253,138 
Materials 1.2%          
EI Du Pont de Nemours & Co.   30,000    2,367,600 
Praxair, Inc.   12,000    1,587,480 
         3,955,080 

 

The accompanying notes are an integral part of the financial statements. 7

 

 

 

 

Sentinel Balanced Fund

 

       Value 
   Shares   (Note 2) 
Telecommunication Services 1.0%          
Verizon Communications, Inc.   75,000   $3,498,000 
Total Domestic Common Stocks
(Cost $98,495,401)		        212,657,679 
Domestic Exchange Traded Funds 8.9%              
Bond Funds 7.8%          
iShares iBoxx $ Investment Grade Corporate Bond ETF   210,929    25,364,212 
SPDR Barclays Intermediate Term Corporate Bond ETF   35,453    1,223,128 
SPDR Barclays Short Term Corporate Bond ETF   1,062    32,572 
         26,619,912 
Equity Funds 1.1%          
iShares Core S&P Mid-Cap ETF   15,000    2,577,450 
SPDR S&P MidCap 400 ETF Trust   4,000    1,253,480 
         3,830,930 
Total Domestic Exchange Traded Funds
(Cost $29,250,570)		        30,450,842 
Foreign Stocks & ADR's 1.9%          
Netherlands 1.3%          
Unilever NV ADR   80,000    4,542,400 
Switzerland 0.6%          
Roche Holding AG ADR   60,000    2,062,800 
Total Foreign Stocks & ADR's
(Cost $5,326,529)		        6,605,200 
Real Estate Investment Trusts 0.8%          
Real Estate 0.8%          
Equinix, Inc.
(Cost $2,387,710)		   6,500    2,866,565 
Institutional Money Market Funds 3.1%
State Street Institutional U.S. Government Money Market Fund          
Premier Class
(Cost $10,497,319)		   10,497,319    10,497,319 
Total Investments 101.6%
(Cost $232,052,607)†		        349,491,958 
           
Excess of Liabilities Over Other Assets (1.6)%        (5,436,193)
           
Net Assets 100.0%       $344,055,765 

 

 

*Non-income producing.

 

†Cost for federal income tax purposes is $232,052,607. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $117,439,351 of which $119,153,673 related to appreciated securities and $1,714,322 related to depreciated securities.

 

(a)The actual mortgage-backed security that will be delivered is not designated until 48 hours prior to the established trade settlement date with the broker.

 

(b)Return of capital paid during the fiscal period.

 

ADR-  American Depositary Receipt

 

SPDR-  Standard & Poor's Depository Receipts

 

+Represents less than 0.05% of net assets.

  

8 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Common Stock Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Top Sectors*

 

Sector Percent of Net Assets
Information Technology 21.8%
Financials 15.2%
Health Care 14.3%
Consumer Discretionary 12.2%
Consumer Staples 10.2%
Industrials 9.9%

Sector Percent of Net Assets
Energy 6.4%
Equity Funds 2.9%
Telecommunication Services 1.7%
Materials 1.7%
Real Estate 1.2%

 

Top 10 Holdings**

 

Description Percent of Net Assets
Microsoft Corp. 3.7%
Apple, Inc. 2.9%
Visa, Inc. 2.9%
Alphabet, Inc. 2.6%
Texas Instruments, Inc. 2.5%
Comcast Corp. 2.2%

Description Percent of Net Assets
UnitedHealth Group, Inc. 2.0%
Merck & Co., Inc. 2.0%
PepsiCo, Inc. 1.9%
Cisco Systems, Inc. 1.9%
Total of Net Assets 24.6%

*"Top Sectors" includes Domestic Common Stocks, Domestic Exchange Traded Funds, Foreign Stocks & ADRs and Real Estate Investment Trusts.

**"Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

       Value 
   Shares   (Note 2) 
Domestic Common Stocks 90.6%          
Consumer Discretionary 12.2%          
Amazon.com, Inc.*   10,000   $9,946,200 
Comcast Corp.   1,070,000    44,608,300 
Goodyear Tire & Rubber Co.   550,000    17,721,000 
Home Depot, Inc.   165,000    25,329,150 
Marriott Int'l., Inc.   225,000    24,221,250 
McDonald's Corp.   225,000    33,950,250 
Omnicom Group, Inc.   290,000    24,278,800 
Priceline Group, Inc.*   9,500    17,832,355 
Time Warner, Inc.   200,000    19,898,000 
TJX Cos., Inc.   450,000    33,844,500 
         251,629,805 
Consumer Staples 8.5%          
CVS Health Corp.   225,000    17,286,750 
Estee Lauder Cos, Inc.   275,000    25,888,500 
Kraft Heinz Co.   210,000    19,362,000 
McCormick & Co., Inc.   65,000    6,769,750 
PepsiCo, Inc.   340,000    39,735,800 
Philip Morris Int'l., Inc.   275,000    32,945,000 
Procter & Gamble Co.   375,000    33,033,750 
         175,021,550 
Energy 6.4%          
Chevron Corp.   197,400    20,426,952 
EOG Resources, Inc.   195,000    17,610,450 
ExxonMobil Corp.   455,000    36,627,500 
Marathon Petroleum Corp.   365,000    18,994,600 
       Value 
   Shares   (Note 2) 
Noble Energy, Inc.   500,000   $14,345,000 
Schlumberger Ltd.   350,000    24,356,500 
         132,361,002 
Financials 15.2%          
American Express Co.   200,000    15,388,000 
Chubb Ltd.   204,100    29,225,079 
CME Group, Inc.   315,000    36,946,350 
Comerica, Inc.   195,000    13,369,200 
Discover Financial Services   290,000    17,023,000 
JPMorgan Chase & Co.   342,000    28,095,300 
Morgan Stanley   900,000    37,566,000 
PNC Financial Services Group,Inc.   270,000   32,049,000
S&P Global, Inc.   252,000    35,988,120 
Signature Bank*   130,000    18,592,600 
The Travelers Cos., Inc.   220,000    27,467,000 
Webster Financial Corp.   190,000    9,256,800 
Wells Fargo & Co.   260,000    13,296,400 
         314,262,849 
Health Care 13.2%          
Amgen, Inc.   140,000    21,733,600 
Becton Dickinson & Co.   95,000    17,976,850 
Biogen, Inc.*   55,000    13,627,350 
Bristol-Myers Squibb Co.   338,300    18,251,285 
Eli Lilly & Co.   200,000    15,914,000 
Johnson & Johnson   150,000    19,237,500 
Medtronic PLC(a)   430,000    36,240,400 
Merck & Co., Inc.   625,000    40,693,750 
       Value 
   Shares   (Note 2) 
Stryker Corp.   140,000   $20,014,400 
UnitedHealth Group, Inc.   240,000    42,043,200 
Zoetis, Inc.   435,000    27,091,800 
         272,824,135 
Industrials 9.9%          
Boeing Co.   167,200    31,371,736 
Canadian National Railway Co.   375,000    29,036,250 
General Dynamics Corp.   175,000    35,568,750 
Honeywell Int'l., Inc.   275,000    36,572,250 
Johnson Controls Int'l. plc   455,000    19,000,800 
United Technologies Corp.   250,000    30,320,000 
Verisk Analytics, Inc.*   280,000    22,649,200 
         204,518,986 
Information Technology 21.8%          
Accenture PLC   295,000    36,718,650 
Alphabet, Inc.*   55,000    53,067,300 
Apple, Inc.   390,000    59,576,400 
Check Point Software Technologies Ltd.*   175,000    19,608,750 
Cisco Systems, Inc.   1,250,000    39,412,500 
Cognizant Technology Solutions Corp.   250,000    16,727,500 
Microsoft Corp.   1,100,000    76,824,000 
Oracle Corp.   470,000    21,333,300 
Synopsys, Inc.*   220,000    16,471,400 
Texas Instruments, Inc.   620,000    51,143,800 

 

The accompanying notes are an integral part of the financial statements. 9

 

 

 

 

Sentinel Common Stock Fund

 

       Value 
   Shares   (Note 2) 
Visa, Inc.   622,000   $59,233,060 
         450,116,660 
Materials 1.7%          
EI Du Pont de Nemours & Co.   275,000    21,703,000 
Praxair, Inc.   100,000    13,229,000 
         34,932,000 
Telecommunication Services 1.7%          
Verizon Communications, Inc.   777,300    36,253,272 
Total Domestic Common Stocks
(Cost $819,152,897)		        1,871,920,259 
Domestic Exchange Traded Funds 2.9%              
Equity Funds 2.9%          
iShares Core S&P Mid-Cap ETF*   150,000    25,774,500 
SPDR S&P 500 ETF Trust*   19,000    4,587,360 
SPDR S&P MidCap 400 ETF Trust*   35,000    10,967,950 
Utilities Select Sector SPDR Fund*   360,000    19,382,400 
Total Domestic Exchange Traded Funds
(Cost $59,814,376)		        60,712,210 
Foreign Stocks & ADR's 2.8%          
Netherlands 1.7%          
Unilever NV ADR   625,000    35,487,500 
Switzerland 1.1%          
Roche Holding AG ADR   660,000    22,690,800 
Total Foreign Stocks & ADR's
(Cost $46,770,586)		        58,178,300 
Real Estate Investment Trusts 1.2%          
Real Estate 1.2%          
Equinix, Inc.*
(Cost $20,134,763)		   55,000    24,255,550 
Institutional Money Market Funds 1.4%              
State Street Institutional U.S. Government Money Market Fund          
Premier Class
(Cost $29,280,731)		   29,280,731    29,280,731 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 1.0%          
Federal Home Loan Bank 1.0%          
Agency Discount Notes:          
0.5%, 06/01/17
(Cost $20,000,000)		   20,000 M    20,000,000 
           
Total Investments 99.9%
(Cost $995,153,353)†		       $2,064,347,050 
           
Other Assets in Excess of Liabilities 0.1%        1,672,633 
           
Net Assets 100.0%       $2,066,019,683 

 

*Non-income producing.

 

†Cost for federal income tax purposes is $995,153,353. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $1,069,193,697 of which $1,078,194,935 related to appreciated securities and $9,001,238 related to depreciated securities.

 

(a)Return of capital paid during the fiscal period.

 

ADR-  American Depositary Receipt

 

SPDR-  Standard & Poor's Depository Receipts

  

10 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Government Securities Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Average Effective Duration

 

    Percent of
Duration   Fixed Income Holdings
Less than 1 yr.   6.0%
1 yr. to 2.99 yrs.   8.1%
3 yrs. to 3.99 yrs.   30.9%

Average Effective Duration (for all Fixed Income Holdings) 4.2 years*

 

    Percent of
Duration   Fixed Income Holdings
4 yrs. to 5.99 yrs.   49.5%
6 yrs. to 7.99 yrs.   5.5%

 

Top 10 Holdings**

 

        Maturity   Percent of
Description   Coupon   Date   Net Assets
FNMA AT2016   3.00%   04/01/43   9.0%
FHLMC J22900   2.50%   03/01/28   7.6%
FNMA AL2860   3.00%   12/01/42   7.6%
FNMA BC1809   3.50%   05/01/46   7.5%
FNMA AI4728   4.50%   07/01/41   6.6%
FHLMC Q33006   3.50%   04/01/45   6.6%
        Maturity   Percent of
Description   Coupon   Date   Net Assets
FNMA AB7845   3.00%   02/01/43   5.6%
FHLMC G05624   4.50%   09/01/39   5.5%
FNMA AE0215   4.00%   12/01/39   4.6%
GNR 10-33 PX   5.00%   09/20/38   4.4%
Total of Net Assets           65.0%

 

*The average effective duration considers the call and put dates of applicable fixed income investments and the pre-payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates.

** "Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 98.6%          
U.S. Government Agency Obligations 98.6%          
Federal Home Loan Mortgage Corporation 33.5%          
Collateralized Mortgage Obligations:          
FHR 3331 PE          
6%, 06/15/37   6,805 M   $7,608,435 
Mortgage-Backed Securities:          
15-Year:          
FHLMC J22900          
2.5%, 03/01/28   13,232 M    13,464,866 
30-Year:          
FHLMC 360017          
11%, 11/01/17   4    4 
FHLMC A64971          
5.5%, 08/01/37   8 M    8,510 
FHLMC G05483          
4.5%, 06/01/39   3,969 M    4,298,001 
FHLMC G05624          
4.5%, 09/01/39   8,887 M    9,642,272 
FHLMC A89148          
4%, 10/01/39   6,379 M    6,762,330 
FHLMC Q29056          
4%, 10/01/44   5,158 M    5,448,615 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FHLMC Q33006          
3.5%, 04/01/45   11,183 M   $11,551,833 
         37,711,565 
Total Federal Home Loan Mortgage Corporation        58,784,866 
Federal National Mortgage Association 55.2%          
Collateralized Mortgage Obligations:          
FNR 12-47 AI Interest Only          
3%, 05/25/22   3,891 M    186,626 
FNR 03-32 BZ          
6%, 11/25/32   358 M    406,215 
         592,841 
Mortgage-Backed Securities:          
15-Year:          
FNMA TBA 15YR June          
2.5%, 06/19/32(a)   5,780 M    5,836,839 
20-Year:          
FNMA 758564          
6%, 09/01/24   174 M    197,044 
30-Year:          
FNMA 426830          
8%, 11/01/24   17 M    17,242 
FNMA 738887          
5.5%, 10/01/33   115 M    127,922 
FNMA 748895          
6%, 12/01/33   99 M    107,420 
FNMA 881279          
5%, 11/01/36   943 M    1,055,913 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FNMA 931533          
4.5%, 07/01/39   1,644 M   $1,785,633 
FNMA 931535          
5.5%, 07/01/39   1,368 M    1,529,265 
FNMA AE0215          
4%, 12/01/39   7,647 M    8,110,511 
FNMA AD9193          
5%, 09/01/40   6,461 M    7,109,686 
FNMA AI4728          
4.5%, 07/01/41   10,790 M    11,663,688 
FNMA AL2860          
3%, 12/01/42   13,229 M    13,362,003 
FNMA AB7845          
3%, 02/01/43   9,660 M    9,781,005 
FNMA AT2016          
3%, 04/01/43   15,659 M    15,816,188 
FNMA AL5718          
3.5%, 09/01/44   6,472 M    6,714,280 
FNMA BC1809          
3.5%, 05/01/46   12,753 M    13,170,212 
         90,350,968 
Total Federal National Mortgage Association        96,977,692 
Government National Mortgage Corporation 9.9%          
Collateralized Mortgage Obligations:          
GNR 10-33 PX          
5%, 09/20/38   7,468 M    7,805,304 

 

The accompanying notes are an integral part of the financial statements. 11

 

   

 

 

Sentinel Government Securities Fund

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Mortgage-Backed Securities:          
30-Year:          
GNMA II 004424          
5%, 04/20/39   2,317 M   $2,569,653 
GNMA AG8936          
4%, 02/15/44   6,675 M    7,112,260 
         9,681,913 
Total Government National Mortgage Corporation        17,487,217 
Total U.S. Government Obligations          
(Cost $170,977,601)        173,249,775 

 

       Value 
   Shares   (Note 2) 
Institutional Money Market Funds 4.7%          
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class          
(Cost $8,290,554)   8,290,554    8,290,554 
Total Investments 103.3%          
(Cost $179,268,155)†        181,540,329 
           
Excess of Liabilities Over Other Assets (3.3)%        (5,861,034)
           
Net Assets 100.0%       $175,679,295 

 

†Cost for federal income tax purposes is $179,268,155. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $2,272,174 of which $3,272,634 related to appreciated securities and $1,000,460 related to depreciated securities.

 

(a)The actual mortgage-backed security that will be delivered is not designated until 48 hours prior to the established trade settlement date with the broker.

 

12 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Sentinel International Equity Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Top Sectors *

 

Sector   Percent of Net Assets
Consumer Discretionary   36.3%
Information Technology   18.8%
Industrials   12.9%
Financials   6.4%
Health Care   5.8%
Sector   Percent of Net Assets
Consumer Staples   4.6%
Real Estate   3.6%
Utilities   3.0%
Energy   1.6%
Materials   1.3%

 

Top Geographical Weightings

 

Country   Percent of Net Assets
United Kingdom   28.1%
Switzerland   8.6%
United States   7.6%
France   6.0%
Japan   5.8%
Country   Percent of Net Assets
Germany   5.8%
Canada   4.6%
India   4.5%
Ireland   4.0%
Netherlands   3.6%

 

Top 10 Holdings**

 

Description   Percent of Net Assets
OPAP SA   3.3%
BCA Marketplace PLC   3.2%
Red Electrica Corp. SA   3.0%
Delphi Automotive PLC   2.8%
ITV PLC   2.7%
Nestle SA   2.7%
Description   Percent of Net Assets
WPP PLC   2.6%
USS Co Ltd.   2.5%
SAP SE   2.5%
Edenred SA   2.5%
Total of Net Assets   27.8%

 

*"Top Sectors" includes Domestic Common Stocks and Foreign Stocks & ADRs.

**"Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

       Value 
   Shares   (Note 2) 
Domestic Common Stocks 12.6%          
Consumer Discretionary 2.8%          
Delphi Automotive PLC   65,000   $5,718,050 
Energy 1.6%          
Core Laboratories NV   33,000    3,373,920 
Health Care 1.9%          
Medtronic PLC(a)   45,000    3,792,600 
Information Technology 6.3%          
BlackBerry Ltd.*   436,000    4,608,520 
Mastercard, Inc.   38,000    4,669,440 
TE Connectivity Ltd.   46,000    3,627,100 
         12,905,060 
Total Domestic Common Stocks          
(Cost $22,324,673)        25,789,630 
Foreign Stocks & ADR's 81.7%          
Canada 2.4%          
Uni-Select, Inc.   220,000    4,949,328 
China 2.2%          
Tencent Holdings Ltd.  (b)   131,000    4,502,122 
       Value 
   Shares   (Note 2) 
Cyprus 2.3%          
Bank of Cyprus Holdings PLC  *(b)   1,275,000   $4,710,020 
Denmark 2.0%          
ISS A/S  (b)   98,000    4,057,729 
France 6.0%          
Edenred SA  (b)   189,000    4,986,057 
JCDecaux SA  (b)   75,000    2,485,582 
Renault SA  (b)   51,000    4,757,700 
         12,229,339 
Germany 5.8%          
Brenntag AG  (b)   52,447    3,042,955 
NORMA Group AG  (b)   69,000    3,678,660 
SAP SE  (b)   47,000    5,050,465 
         11,772,080 
Greece 3.3%          
OPAP SA  (b)   600,000    6,659,229 
India 4.5%          
PC Jeweller Ltd.  (b)   630,000    4,863,585 
Shriram Transport Finance  Co Ltd.  (b)   276,000    4,355,252 
         9,218,837 
       Value 
   Shares   (Note 2) 
Ireland 2.1%          
Experian PLC  (b)   205,000   $4,285,517 
Italy 1.6%          
DiaSorin SpA  (b)   43,000    3,331,125 
Japan 5.8%          
CyberAgent, Inc.  (b)   120,000    4,326,007 
FANUC Corp.  (b)   12,800    2,519,589 
USS Co Ltd.  (b)   252,000    5,072,621 
         11,918,217 
Luxembourg 2.3%          
SES SA  *(b)   191,500    4,741,483 
Macau 2.2%          
Wynn Macau Ltd.  (b)   2,023,000    4,490,126 
Netherlands 2.0%          
Intertrust NV  (b)   195,000    4,058,124 
South Korea 2.1%          
Samsung Electronics Co Ltd.  (b)   2,200    4,381,747 
Spain 3.0%          
Red Electrica Corp. SA  (b)   276,000    6,197,138 

 

The accompanying notes are an integral part of the financial statements. 13

 

   

 

 

Sentinel International Equity Fund

 

       Value 
   Shares   (Note 2) 
Switzerland 6.8%          
Adecco SA  (b)   49,000   $3,657,852 
Nestle SA  (b)   64,000    5,464,418 
Roche Holding AG  (b)   17,000    4,667,331 
         13,789,601 
United Kingdom 25.3%          
Auto Trader Group PLC  (b)   690,000    3,705,731 
AVEVA Group PLC  (b)   185,000    4,620,626 
BCA Marketplace PLC  (b)   2,425,000    6,436,455 
Compass Group PLC  (b)   218,000    4,703,365 
Foxtons Group PLC  (b)   1,750,000    2,531,000 
InterContinental Hotels Group PLC  (b)   71,808    4,053,714 
ITV PLC  (b)   2,225,000    5,612,956 
Randgold Resources Ltd.  (b)   28,000    2,656,068 
Reckitt Benckiser Group PLC  (b)   38,000    3,897,443 
Rightmove PLC  (b)   59,000    3,296,357 
Savills PLC  (b)   439,000    4,886,753 
WPP PLC  (b)   240,000    5,400,613 
         51,801,081 
Total Foreign Stocks & ADR's          
(Cost $131,124,331)        167,092,843 
Institutional Money Market Funds 5.3%          
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class          
(Cost $10,778,748)   10,778,748    10,778,748 
Total Investments 99.6%          
(Cost $164,227,752)†        203,661,221 
Other Assets in Excess of Liabilities 0.4%        735,612 
Net Assets 100.0%       $204,396,833 

 

*Non-income producing.

 

†Cost for federal income tax purposes is $164,227,752. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $39,433,469 of which $41,294,268 related to appreciated securities and $1,860,799 related to depreciated securities.

 

(a)Return of capital paid during the fiscal period.

 

(b)Fair valued.

 

14 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Sentinel Low Duration Bond Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Average Effective Duration

 

  Percent of
Duration Fixed Income Holdings
Less than 1 yr. 30.3%
1 yr. to 2.99 yrs. 26.4%
3 yrs. to 3.99 yrs. 10.8%

Average Effective Duration (for all Fixed Income Holdings) 2.8 years*

  Percent of
Duration Fixed Income Holdings
4 yrs. to 5.99 yrs. 18.8%
6 yrs. to 7.99 yrs. 9.8%
8 yrs. and over 3.9%

 

Top 10 Holdings**

 

        Maturity   Percent of
Description   Coupon   Date   Net Assets
FHR 4022 AH   1.50%   12/15/25   8.4%
SPDR Barclays Intermediate Term Corporate Bond ETF           5.1%
FHR 4039 PB   1.50%   05/15/27   4.7%
SPDR Barclays Short Term Corporate Bond ETF           4.7%
FNR 10-64 AD   3.00%   12/25/20   4.5%
        Maturity   Percent of
Description   Coupon   Date   Net Assets
iShares iBoxx $ Investment Grade Corporate Bond ETF           3.6%
Bear Stearns Trust FLT   3.289%   06/25/34   2.0%
FHR 4238 TL   1.25%   08/15/27   1.9%
GSR 2003 13 1A1   2.867%   10/25/33   1.8%
FNR 11-15 HC   2.50%   03/25/26   1.5%
Total of Net Assets           38.2%

 

*The average effective duration considers the call and put dates of applicable fixed income investments and the pre-payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates. 

** "Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 44.0%          
U.S. Government Agency Obligations 44.0%          
Federal Home Loan Bank 20.3%          
Agency Discount Notes:          
0.5%, 06/01/17   61,000 M    $60,999,814 
Federal Home Loan Mortgage Corporation 16.0%          
Collateralized Mortgage Obligations:          
FHR 3874 BD          
3%, 06/15/21   2,226 M    2,260,958 
FHR 4022 AH          
1.5%, 12/15/25   25,721 M    25,265,148 
FHR 4039 PB          
1.5%, 05/15/27   14,293 M    13,996,951 
FHR 4238 TL          
1.25%, 08/15/27   5,989 M    5,797,528 
FHR 2927 ED          
4%, 01/15/35   118 M    119,333 
         47,439,918 
Mortgage-Backed Securities:          
15-Year:          
FHLMC J05907          
6%, 08/01/19   338 M    344,005 
20-Year:          
FHLMC D94230          
7.5%, 10/01/19   909    910 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
30-Year:          
FHLMC G00100          
8%, 02/01/23   3 M   $2,832 
Total Federal Home Loan Mortgage Corporation        47,787,665 
Federal National Mortgage Association 7.7%          
Collateralized Mortgage Obligations:          
FNR 10-64 AD          
3%, 12/25/20   13,276 M    13,426,421 
FNR 11-67 DA          
4.5%, 07/25/21   3,620 M    3,698,848 
FNR 12-47 AI Interest Only          
3%, 05/25/22   4,120 M    197,604 
FNR 11-15 HC          
2.5%, 03/25/26   4,555 M    4,576,440 
FNR 09-32 BH          
5.25%, 05/25/39   802 M    855,133 
         22,754,446 
Mortgage-Backed Securities:          
15-Year:          
FNMA 671380          
6%, 11/01/17   2 M    1,697 
FNMA 725284          
7%, 11/01/18   1 M    1,226 
FNMA 985670          
6.5%, 10/01/21   255 M    265,614 
         268,537 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
30-Year:          
FNMA 207530          
8.25%, 04/01/22   6 M   $5,704 
FNMA 175123          
7.45%, 08/01/22   71 M    73,462 
         79,166 
Total Federal National Mortgage Association        23,102,149 
Government National Mortgage Corporation 0.0%+          
Mortgage-Backed Securities:          
20-Year:          
GNMA 628440          
7%, 04/15/24   16 M    15,905 
Total U.S. Government Obligations          
(Cost $132,820,519)        131,905,533 
Domestic Corporate Bonds 32.3%          
Basic Industry 0.3%          
Int'l. Paper Co.          
4.4%, 08/15/47   850 M    852,066 
Capital Goods 2.8%          
Lockheed Martin Corp.          
2.5%, 11/23/20   1,500 M    1,524,198 
3.55%, 01/15/26   950 M    987,886 
Northrop Grumman Corp.          
3.25%, 08/01/23   2,000 M    2,074,416 
Reynolds Group Issuer LLC          
5.125%, 07/15/23(a)   1,325 M    1,374,687 

 

The accompanying notes are an integral part of the financial statements. 15

 

   

 

 

Sentinel Low Duration Bond Fund

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Rolls-Royce PLC          
3.625%, 10/14/25(a)   1,500 M    $1,548,245 
United Technologies Corp.          
2.65%, 11/01/26   950 M    926,817 
         8,436,249 
Communications 5.9%          
America Movil SAB de CV          
6.125%, 03/30/40   950 M    1,156,335 
American Tower Corp.          
4.5%, 01/15/18   3,750 M    3,810,435 
AT&T, Inc.          
3.8%, 03/15/22   2,708 M    2,821,782 
CCO Holdings LLC          
5.75%, 02/15/26(a)   1,325 M    1,419,406 
Comcast Corp.          
2.35%, 01/15/27   950 M    894,058 
Cox Communications, Inc.          
3.35%, 09/15/26(a)   850 M    840,105 
Frontier Communications Corp.          
11%, 09/15/25   1,325 M    1,237,219 
SFR Group SA          
7.375%, 05/01/26(a)   1,325 M    1,435,134 
Sprint Corp.          
7.875%, 09/15/23   1,325 M    1,532,031 
Telesat Canada / Telesat LLC          
8.875%, 11/15/24(a)   1,325 M    1,484,000 
Time Warner, Inc.          
3.8%, 02/15/27   950 M    947,579 
         17,578,084 
Consumer Cyclical 6.0%          
Amazon.com, Inc.          
4.95%, 12/05/44   950 M    1,110,652 
Ford Motor Credit Co LLC          
5%, 05/15/18   3,500 M    3,601,458 
General Motors Financial Co., Inc.          
6.75%, 06/01/18   3,000 M    3,140,943 
3.2%, 07/06/21   2,950 M    2,978,311 
Macy's Retail Holdings, Inc.          
2.875%, 02/15/23   850 M    788,905 
McDonald's Corp.          
2.75%, 12/09/20   1,500 M    1,531,995 
3.7%, 01/30/26   950 M    989,655 
Walgreen Co.          
3.1%, 09/15/22   1,500 M    1,532,556 
Walgreens Boots Alliance, Inc.          
3.45%, 06/01/26   950 M    949,440 
Wynn Las Vegas LLC          
5.5%, 03/01/25(a)   1,325 M    1,401,187 
         18,025,102 
Consumer Non-Cyclical 6.2%          
Abbott Laboratories          
4.9%, 11/30/46   850 M    904,248 
Altria Group, Inc.          
2.85%, 08/09/22   2,000 M    2,036,022 
Amgen, Inc.          
3.625%, 05/22/24   1,500 M    1,573,230 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Anheuser-Busch InBev Finance, Inc.          
4.9%, 02/01/46   950 M   $1,053,180 
Anheuser-Busch InBev Worldwide, Inc.          
3.75%, 01/15/22   1,500 M    1,590,328 
DaVita, Inc.          
5.125%, 07/15/24   1,325 M    1,348,188 
HCA, Inc.          
5.375%, 02/01/25   1,325 M    1,392,906 
Kraft Foods Group, Inc.          
3.5%, 06/06/22   2,000 M    2,075,054 
Medtronic, Inc.          
3.15%, 03/15/22   1,500 M    1,558,670 
3.5%, 03/15/25   950 M    990,564 
Molson Coors Brewing Co.          
2.1%, 07/15/21   2,000 M    1,972,408 
Thermo Fisher Scientific, Inc.          
3.6%, 08/15/21   2,000 M    2,087,302 
         18,582,100 
Energy 0.5%          
Sabine Pass Liquefaction LLC          
5.625%, 03/01/25   1,325 M    1,470,469 
Financials 3.1%          
Bank of America Corp.          
3.124%, 01/20/23   2,500 M    2,533,240 
3.248%, 10/21/27   950 M    920,507 
Brookfield Asset Management, Inc.          
4%, 01/15/25   1,935 M    1,964,766 
Icahn Enterprises LP          
5.875%, 02/01/22   1,325 M    1,356,469 
JPMorgan Chase & Co          
2.7%, 05/18/23   1,500 M    1,486,356 
2.95%, 10/01/26   950 M    918,567 
         9,179,905 
Insurance 2.2%          
Chubb INA Holdings, Inc.          
2.875%, 11/03/22   1,500 M    1,532,999 
3.35%, 05/03/26   950 M    979,903 
Jackson National Life Global Funding          
3.25%, 01/30/24(a)   1,500 M    1,529,491 
MetLife, Inc.          
4.368%, 09/15/23   1,500 M    1,644,075 
4.6%, 05/13/46   950 M    1,041,540 
         6,728,008 
Media 1.2%          
CBS Corp.          
3.375%, 03/01/22   2,000 M    2,070,576 
Comcast Corp.          
3.125%, 07/15/22   1,500 M    1,559,191 
         3,629,767 
Real Estate 0.9%          
HCP, Inc.          
4%, 06/01/25   850 M    870,783 
Simon Property Group LP          
2.35%, 01/30/22   2,000 M    1,987,012 
         2,857,795 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Technology 2.4%          
KLA-Tencor Corp.          
4.65%, 11/01/24   1,350 M   $1,462,077 
Microsoft Corp.          
2.375%, 05/01/23   1,500 M    1,499,851 
2.4%, 08/08/26   950 M    915,145 
Nuance Communications, Inc.          
5.625%, 12/15/26(a)   1,325 M    1,394,563 
QUALCOMM, Inc.          
3%, 05/20/22   2,000 M    2,053,312 
         7,324,948 
Transportation 0.5%          
XPO Logistics, Inc.          
6.5%, 06/15/22(a)   1,325 M    1,406,753 
Utilities 0.3%          
Electricite de France SA          
3.625%, 10/13/25(a)   850 M    871,272 
Total Domestic Corporate Bonds          
(Cost $94,887,993)        96,942,518 
Asset Backed Securities 0.9%          
Nomad CLO Ltd.          
2.3584%, 01/15/25(a)   937 M    937,751 
Taco Bell Funding, LLC          
3.832%, 05/25/26(a)   1,588 M    1,621,777 
           
Total Asset Backed Securities          
(Cost $2,525,950)        2,559,528 
Bank Loans 0.9%          
Consumer Discretionary 0.3%          
J Crew Group, Inc.          
4.22%, 03/05/21(b)   1,318 M    897,315 
Technology 0.6%          
Micron Technology, Inc.          
3.72%, 04/26/22(c)   1,762 M    1,778,723 
Total Bank Loans          
(Cost $2,504,944)        2,676,038 
Residential Mortgage-Backed Securities 4.3%          
Financials 4.3%          
Bear Stearns Trust FLT          
3.2893%, 06/25/34   5,930 M    6,008,292 
BOAMS 2004 5 3A1          
4.5%, 06/25/19   1,544 M    1,547,274 
GSR 2003 13 1A1          
2.8673%, 10/25/33   5,347 M    5,407,613 
           
Total Residential Mortgage-Backed Securities          
(Cost $12,953,002)        12,963,179 

 

       Value 
   Shares   (Note 2) 
Domestic Exchange Traded Funds 13.9%          
Bond Funds 13.9%          
iShares 0-5 Year High Yield Corporate Bond ETF   33,400    1,604,202 
iShares iBoxx $ Investment Grade Corporate Bond ETF   90,627    10,897,897 

 

16 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Sentinel Low Duration Bond Fund

 

       Value 
   Shares   (Note 2) 
SPDR Barclays Intermediate Term Corporate Bond ETF   445,627   $15,374,132 
SPDR Barclays Short Term Corporate Bond ETF   454,070    13,926,327 
Total Domestic Exchange Traded Funds          
(Cost $40,556,649)        41,802,558 
Institutional Money Market Funds 3.6%          
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class          
(Cost $10,755,098)   10,755,098    10,755,098 
Total Investments 99.9%          
(Cost $297,004,155)†        299,604,452 
           
Other Assets in Excess of Liabilities 0.1%        402,790 
           
Net Assets 100.0%       $300,007,242 

 

†Cost for federal income tax purposes is $297,004,155. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $2,600,297 of which $3,808,130 related to appreciated securities and $1,207,833 related to depreciated securities.

 

(a)Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2017, the market value of rule 144A securities amounted to $17,264,371 or 5.75% of net assets.

 

(b)J Crew Group, Inc. has a variable interest rate that floats quarterly and is adjusted in March, June, September, and December. The interest rate is based on the 3-month Libor rate plus 3.00%.

 

(c)Micron Technologies, Inc. has a variable interest rate that floats quarterly in January, April, July, and October. The interest rate is based on the 3-month Libor rate plus 2.5%.

 

SPDR - Standard & Poor's Depository Receipts

 

+Represents less than 0.05% of net assets.

 

 

At May 31, 2017, the following futures contracts were outstanding with $174,727 in cash segregated with the broker for margin maintenance purposes:

 

         Unrealized 
   Contract  Contract   Appreciation/ 
Contract Description  Expiration  Value   (Depreciation) 
            
Short, 115 U.S. Treasury 5-Year Note futures contracts  9/17  $13,605,937   $(17,835)
              
Net payments of variation margin and/or brokerage fees           12,444 
              
Variation margin payable on open futures contracts          $(5,391)

 

The accompanying notes are an integral part of the financial statements. 17

 

   

 

 

Sentinel Multi-Asset Income Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Portfolio Weightings

 

Asset Category   Percent of Net Assets
Domestic Exchange Traded Funds   46.0%
Domestic Corporate Bonds   44.8%
U.S. Government Obligations   5.9%
Bank Loans   1.9%
Asset Backed Securities   0.4%
Cash and Other   1.0%

 

 

Top 10 Equity Holdings*

 

     
Description   Percent of Net Assets
iShares High Dividend ETF   13.8%
iShares iBoxx $ Investment Grade Corporate Bond ETF   12.0%
SPDR Barclays Short Term High Yield Bond ETF   8.5%
SPDR Barclays Intermediate Term Corporate Bond ETF   5.9%
iShares Int'l. Select Dividend ETF   5.1%
iShares 0-5 Year High Yield Corporate Bond ETF   0.7%
SPDR Barclays Short Term Corporate Bond ETF   0.0%+
Total of Net Assets   46.0%

Top 10 Fixed Income Holdings*

 

        Maturity   Percent of
Description   Coupon   Date   Net Assets
FNMA TBA 30 YR 3   3.00%   06/13/47   1.6%
FHLMC Q41208   3.50%   06/01/46   1.5%
HCA, Inc.   5.375%   02/01/25   1.4%
Community Health Systems, Inc.   3.97%   12/31/19   1.1%
CenturyLink, Inc.   7.50%   04/01/24   1.1%
Scientific Games Int'l. Inc   10.00%   12/01/22   1.1%
Telecom Italia SpA/Milano   5.303%   05/30/24   1.1%
Reynolds Group Issuer, Inc.   5.75%   10/15/20   1.0%
Lamb Weston Holdings, Inc.   4.875%   11/01/26   1.0%
NRG Energy, Inc.   7.25%   05/15/26   1.0%
Total of Net Assets           11.9%

 

Average Effective Duration (for all Fixed Income Holdings) 5.3 years**

 

*"Top 10 Equity Holdings" and "Top 10 Fixed Income Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow. . +Represents less than 0.05% of net assets.

 

**The average effective duration considers the call and put dates of applicable fixed income investments and the pre-payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 5.9%          
U.S. Government Agency Obligations 5.9%          
Federal Home Loan Mortgage Corporation 1.5%          
Mortgage-Backed Securities:          
30-Year:          
FHLMC Q41208          
3.5%, 06/01/46   3,973 M   $4,103,782 
Federal National Mortgage Association 4.3%          
Mortgage-Backed Securities:          
15-Year:          
FNMA TBA 15YR June          
2.5%, 06/19/32(a)   2,500 M    2,524,585 
30-Year:          
FNMA BC4492          
4.5%, 12/01/39   2,318 M    2,498,078 
FNMA AS7601          
4%, 07/01/46   2,480 M    2,619,649 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FNMA TBA 30 YR 3          
3%, 06/13/47(a)   4,300 M   $4,319,484 
         9,437,211 
Total Federal National Mortgage Association        11,961,796 
Government National Mortgage Corporation 0.1%          
Collateralized Mortgage Obligations:          
GNR 12-147 Interest Only          
0.5686%, 04/16/54   7,765 M    289,317 
Total U.S. Government Obligations          
(Cost $16,469,458)        16,354,895 
Domestic Corporate Bonds 44.8%          
Basic Industry 1.2%          
Domtar Corp.          
6.25%, 09/01/42   2,500 M    2,556,913 
Int'l. Paper Co.          
4.4%, 08/15/47   850 M    852,066 
         3,408,979 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Capital Goods 3.6%          
Lockheed Martin Corp.          
3.55%, 01/15/26   2,050 M    $2,131,754 
Northrop Grumman Corp.          
3.85%, 04/15/45   2,500 M    2,453,345 
Reynolds Group Issuer LLC          
5.125%, 07/15/23(b)   1,539 M    1,596,713 
Reynolds Group Issuer, Inc.          
5.75%, 10/15/20   2,750 M    2,825,625 
United Technologies Corp.          
2.65%, 11/01/26   1,050 M    1,024,377 
         10,031,814 
Communications 10.9%          
AMC Networks, Inc.          
5%, 04/01/24   735 M    746,018 
America Movil SAB de CV          
6.125%, 03/30/40   1,050 M    1,278,055 
AT&T, Inc.          
3.8%, 03/15/22   1,592 M    1,658,891 
CBS Corp.          
4%, 01/15/26   2,500 M    2,585,177 

 

18 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Sentinel Multi-Asset Income Fund

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
CCO Holdings LLC          
5.75%, 02/15/26(b)   1,539 M   $1,648,654 
CenturyLink, Inc.          
7.5%, 04/01/24   2,750 M    3,011,250 
Comcast Corp.          
2.35%, 01/15/27   2,050 M    1,929,282 
Cox Communications, Inc.          
3.35%, 09/15/26(b)   1,350 M    1,334,285 
CSC Holdings LLC          
10.875%, 10/15/25(b)   1,300 M    1,582,750 
Frontier Communications Corp.          
11%, 09/15/25   1,539 M    1,437,041 
SFR Group SA          
7.375%, 05/01/26(b)   1,539 M    1,666,922 
Sprint Corp.          
7.875%, 09/15/23   1,539 M    1,779,469 
Telecom Italia SpA/Milano          
5.303%, 05/30/24(b)   2,750 M    2,933,892 
Telesat Canada / Telesat LLC          
8.875%, 11/15/24(b)   1,415 M    1,584,800 
Time Warner, Inc.          
3.8%, 02/15/27   2,050 M    2,044,774 
Ziggo Secured Finance BV          
5.5%, 01/15/27(b)   2,750 M    2,794,357 
         30,015,617 
Consumer Cyclical 5.4%          
Amazon.com, Inc.          
4.95%, 12/05/44   1,050 M    1,227,562 
DR Horton, Inc.          
4.75%, 02/15/23   775 M    839,621 
General Motors Financial Co., Inc.          
3.2%, 07/06/21   1,100 M    1,110,557 
5.25%, 03/01/26   1,000 M    1,075,775 
Macy's Retail Holdings, Inc.          
2.875%, 02/15/23   850 M    788,905 
McDonald's Corp.          
3.7%, 01/30/26   2,050 M    2,135,571 
QVC, Inc.          
5.45%, 08/15/34   1,535 M    1,437,138 
Scientific Games Int'l. Inc          
10%, 12/01/22   2,750 M    2,994,062 
Walgreens Boots Alliance, Inc.          
3.45%, 06/01/26   2,050 M    2,048,793 
Wynn Las Vegas LLC          
5.5%, 03/01/25(b)   1,225 M    1,295,437 
         14,953,421 
Consumer Non-Cyclical 10.4%          
Abbott Laboratories          
4.9%, 11/30/46   850 M    904,248 
Altria Group, Inc.          
3.875%, 09/16/46   2,500 M    2,387,102 
Amgen, Inc.          
2.6%, 08/19/26   2,500 M    2,373,760 
Anheuser-Busch InBev Finance, Inc.          
4.9%, 02/01/46   2,050 M    2,272,653 
Cardinal Health, Inc.          
4.9%, 09/15/45   1,370 M    1,447,909 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
DaVita, Inc.          
5.125%, 07/15/24   1,539 M   $1,565,932 
Express Scripts Holding Co.          
3.4%, 03/01/27   1,560 M    1,504,068 
HCA, Inc.          
5.375%, 02/01/25   3,725 M    3,915,906 
Kraft Heinz Foods Co.          
4.375%, 06/01/46   2,500 M    2,389,200 
Lamb Weston Holdings, Inc.          
4.875%, 11/01/26(b)   2,750 M    2,818,750 
Medtronic, Inc.          
3.5%, 03/15/25   2,050 M    2,137,533 
Molson Coors Brewing Co.          
3%, 07/15/26   2,500 M    2,427,965 
Thermo Fisher Scientific, Inc.          
2.95%, 09/19/26   2,500 M    2,442,238 
         28,587,264 
Energy 0.5%          
Sabine Pass Liquefaction LLC          
5.625%, 03/01/25   1,225 M    1,359,490 
Financials 2.8%          
Bank of America Corp.          
3.248%, 10/21/27   2,500 M    2,422,387 
Brookfield Asset Management, Inc.          
4%, 01/15/25   1,405 M    1,426,613 
Citizens Financial Group, Inc.          
4.3%, 12/03/25   582 M    609,245 
Icahn Enterprises LP          
5.875%, 02/01/22   1,225 M    1,254,094 
JPMorgan Chase & Co          
2.95%, 10/01/26   2,050 M    1,982,172 
         7,694,511 
Insurance 3.0%          
Chubb INA Holdings, Inc.          
3.35%, 05/03/26   2,050 M    2,114,528 
Kemper Corp.          
4.35%, 02/15/25   427 M    433,503 
Manulife Financial Corp.          
4.15%, 03/04/26   1,045 M    1,111,443 
MetLife, Inc.          
4.6%, 05/13/46   2,050 M    2,247,534 
Travelers Cos, Inc.          
3.75%, 05/15/46   2,500 M    2,458,237 
         8,365,245 
Real Estate 1.7%          
HCP, Inc.          
4%, 06/01/25   850 M    870,782 
Retail Opportunity Investments Partnership LP          
5%, 12/15/23   1,400 M    1,462,481 
Simon Property Group LP          
4.25%, 11/30/46   2,500 M    2,475,150 
         4,808,413 
Technology 3.5%          
Ericsson LM          
4.125%, 05/15/22   2,275 M    2,316,639 
KLA-Tencor Corp.          
4.65%, 11/01/24   1,350 M    1,462,077 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Microsoft Corp.          
2.4%, 08/08/26   2,050 M   $1,974,785 
Nuance Communications, Inc.          
5.625%, 12/15/26(b)   1,225 M    1,289,313 
QUALCOMM, Inc.          
3.45%, 05/20/25   2,500 M    2,575,640 
         9,618,454 
Transportation 0.5%          
XPO Logistics, Inc.          
6.5%, 06/15/22(b)   1,225 M    1,300,583 
Utilities 1.3%          
Electricite de France SA          
3.625%, 10/13/25(b)   850 M    871,272 
NRG Energy, Inc.          
7.25%, 05/15/26   2,750 M    2,811,875 
         3,683,147 
Total Domestic Corporate Bonds          
(Cost $121,092,188)        123,826,938 
Asset Backed Securities 0.4%          
Nomad CLO Ltd.          
2.3584%, 01/15/25(b)   781 M    781,460 
Taco Bell Funding, LLC          
3.832%, 05/25/26(b)   298 M    304,083 
Total Asset Backed Securities          
(Cost $1,079,375)        1,085,543 
Bank Loans 1.9%          
Consumer Discretionary 0.3%          
J Crew Group, Inc.          
4.22%, 03/05/21(c)   1,219 M    829,593 
Consumer Non-Cyclical 1.1%          
Community Health Systems, Inc.          
3.97%, 12/31/19(d)   3,056 M    3,057,897 
Technology 0.5%          
Micron Technology, Inc.          
3.72%, 04/26/22(e)   1,265 M    1,277,674 
Total Bank Loans          
(Cost $4,874,311)        5,165,164 

 

       Value 
   Shares   (Note 2) 
Domestic Exchange Traded Funds 46.0%  
Bond Funds 27.1%          
iShares 0-5 Year High Yield Corporate Bond ETF   38,538    1,850,980 
iShares iBoxx $ Investment Grade Corporate Bond ETF   275,896    33,176,494 
SPDR Barclays Intermediate Term Corporate Bond ETF(f)   468,810    16,173,945 
SPDR Barclays Short Term Corporate Bond ETF   992    30,425 
SPDR Barclays Short Term High Yield Bond ETF   837,866    23,577,549 
         74,809,393 
Equity Funds 18.9%          
iShares High Dividend ETF   450,547    38,026,167 

 

The accompanying notes are an integral part of the financial statements. 19

 

   

 

 

Sentinel Multi-Asset Income Fund

 

       Value 
   Shares   (Note 2) 
iShares Int'l. Select Dividend ETF(f)   423,400   $14,048,412 
         52,074,579 
Total Domestic Exchange Traded Funds          
(Cost $120,732,650)        126,883,972 
Institutional Money Market Funds 4.5%          
State Street Institutional U.S. Government          
Money Market Fund Premier Class          
(Cost $12,411,117)   12,411,117    12,411,117 
Total Investments 103.5%          
(Cost $276,659,099)†        285,727,629 
           
Excess of Liabilities Over Other Assets (3.5)%        (9,646,933)
           
Net Assets 100.0%       $276,080,696 

 

†Cost for federal income tax purposes is $276,659,099. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $9,068,530 of which $10,578,671 related to appreciated securities and $1,510,141 related to depreciated securities.

 

(a)The actual mortgage-backed security that will be delivered is not designated until 48 hours prior to the established trade settlement date with the broker.

 

(b)Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2017, the market value of rule 144A securities amounted to $23,803,271 or 8.62% of net assets.

 

(c)J Crew Group, Inc. has a variable interest rate that floats quarterly and is adjusted in March, June, September, and December. The interest rate is based on the 3-month Libor rate plus 3.00%.

 

(d)Community Health Systems, Inc. has a variable interest rate that floats quarterly and is adjusted in February, May, August and November. The interest rate is based on the 3-month Libor rate plus 2.75%.

 

(e)Micron Technologies, Inc. has a variable interest rate that floats quarterly in January, April, July, and October. The interest rate is based on the 3-month Libor rate plus 2.5%.

 

(f)All or a portion of this security was on loan at May 31, 2017. The aggregate cost and market value of securities on loan at May 31, 2017 is $2,950,053 and $2,795,846, respectively.

 

SPDR - Standard & Poor's Depository Receipts

 

20 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Sentinel Small Company Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Top Sectors*

 

Sector Percent of Net Assets
Information Technology 24.6%
Consumer Discretionary 15.8%
Health Care 14.0%
Industrials 11.6%
Sector Percent of Net Assets
Equity Funds 9.5%
Financials 8.1%
Real Estate 1.9%
Energy 1.8%

 

Top 10 Holdings**

 

Description Percent of Net Assets
Corporate Office Properties Trust 1.9%
Nuance Communications, Inc. 1.8%
Tivity Health, Inc. 1.6%
Genesee & Wyoming, Inc. 1.6%
NICE Systems Ltd. 1.5%
Globus Medical, Inc. 1.5%
Description Percent of Net Assets
j2 Global, Inc. 1.4%
Glacier Bancorp, Inc. 1.4%
GTT Communications, Inc. 1.3%
VeriFone Systems, Inc. 1.3%
Total of Net Assets 15.3%

*"Top Sectors" includes Domestic Common Stocks, Domestic Exchange Traded Funds, Foreign Stocks & ADRs and Real Estate Investment Trusts.

**"Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

       Value 
   Shares   (Note 2) 
Domestic Common Stocks 74.4%          
Consumer Discretionary 15.8%          
Aaron's, Inc.   320,800   $11,715,616 
Adtalem Global Education, Inc.   314,955    11,779,317 
Bloomin' Brands, Inc.   547,540    10,967,226 
Callaway Golf Co.   960,300    12,234,222 
Five Below, Inc.*   236,800    12,147,840 
KB Home   570,700    11,973,286 
MDC Partners, Inc.   1,350,566    11,209,698 
Oxford Industries, Inc.   207,600    11,156,424 
Penn National Gaming, Inc.*   643,600    12,440,788 
Planet Fitness, Inc.   582,100    12,718,885 
Select Comfort Corp.*   381,600    10,990,080 
Texas Roadhouse, Inc.   232,300    11,364,116 
The Habit Restaurants, Inc.*   617,400    11,452,770 
Tile Shop Holdings, Inc.   581,210    11,420,776 
TRI Pointe Group, Inc.*   984,600    12,179,502 
Vitamin Shoppe, Inc.*   500,561    5,806,508 
         181,557,054 
Energy 1.8%          
Carrizo Oil & Gas, Inc.*   473,200    10,382,008 
Gulfport Energy Corp.*   746,800    10,716,580 
         21,098,588 
Financials 8.1%          
Chemical Financial Corp.   243,200    10,936,704 
Evercore Partners, Inc.   159,200    10,793,760 
       Value 
   Shares   (Note 2) 
Glacier Bancorp, Inc.   489,800   $15,800,948 
PRA Group, Inc.*   279,100    9,712,680 
Stifel Financial Corp.*   245,300    10,457,139 
Webster Financial Corp.   240,800    11,731,776 
Western Alliance Bancorp*   258,200    11,804,904 
WSFS Financial Corp.   260,200    11,474,820 
         92,712,731 
Health Care 14.0%          
AngioDynamics, Inc.*   746,606    11,258,818 
Bio-Rad Laboratories, Inc.*   53,964    12,059,875 
Bio-Techne Corp.   107,200    12,014,976 
Capital Senior Living Corp.*   822,400    11,382,016 
Diplomat Pharmacy, Inc.*   644,700    11,050,158 
Globus Medical, Inc.*   558,200    17,164,650 
Haemonetics Corp.*   283,200    11,548,896 
HealthSouth Corp.   249,200    11,296,236 
Magellan Health, Inc.*   188,099    12,931,806 
NuVasive, Inc.*   161,900    12,147,357 
Omnicell, Inc.*   208,400    8,315,160 
Owens & Minor, Inc.   364,400    11,617,072 
Tivity Health, Inc.*   539,430    18,313,649 
         161,100,669 
Industrials 11.6%          
Advisory Board Co.*   229,100    11,844,470 
Crane Co.   146,400    11,357,712 
Esterline Technologies Corp.*   130,500    12,717,225 
Genesee & Wyoming, Inc.*   275,100    18,019,050 
       Value 
   Shares   (Note 2) 
Healthcare Services Group, Inc.   254,600   $12,187,702 
Knight Transportation, Inc.   364,500    12,156,075 
Mobile Mini, Inc.   427,362    11,966,136 
Quanta Services, Inc.*   315,270    9,666,178 
Regal Beloit Corp.   149,100    11,808,720 
SkyWest, Inc.   330,500    11,336,150 
Woodward, Inc.   155,600    10,599,472 
         133,658,890 
Information Technology 23.1%          
Acxiom Corp.*   520,500    13,637,100 
Aspen Technology, Inc.*   192,000    11,742,720 
Barracuda Networks, Inc.*   512,038    11,223,873 
Blackhawk Network Holdings, Inc.*   328,700    14,249,145 
Bottomline Technologies de, Inc.*   508,800    12,725,088 
BroadSoft, Inc.*   332,400    13,296,000 
CommVault Systems, Inc.*   225,300    12,644,962 
Finisar Corp.*   498,200    12,285,612 
GrubHub, Inc.*   268,200    11,658,654 
GTT Communications, Inc.*   462,284    14,908,659 
j2 Global, Inc.   190,685    16,135,765 
MAXIMUS, Inc.   191,600    11,894,528 
Microsemi Corp.*   190,000    9,330,900 
NetScout Systems, Inc.*   329,200    12,048,720 
Nuance Communications, Inc.*   1,124,670    20,817,642 
ON Semiconductor Corp.*   783,680    12,131,366 
Open Text Corp.   333,320    10,876,232 

 

The accompanying notes are an integral part of the financial statements. 21

 

 

 

 

Sentinel Small Company Fund

 

       Value 
   Shares   (Note 2) 
Plantronics, Inc.   220,440   $11,665,685 
Rudolph Technologies, Inc.*   106,817    2,552,926 
Tower Semiconductor Ltd.*   491,400    12,461,904 
VeriFone Systems, Inc.*   810,100    14,816,729 
Xcerra Corp.*   368,759    3,580,650 
         266,684,860 
Total Domestic Common Stocks
(Cost $694,938,127)		        856,812,792 
Domestic Exchange Traded Funds 9.5%          
Equity Funds 9.5%          
iShares Core S&P Mid-Cap ETF   64,300    11,048,669 
iShares Russell 2000 Growth ETF   67,000    10,943,110 
iShares Russell 2000 Index Fund   80,100    10,919,232 
iShares Russell 2000 Value ETF   94,600    10,876,162 
iShares S&P Small-Cap 600 Growth ETF   72,100    10,950,548 
iShares S&P SmallCap 600 Index Fund   160,200    10,946,466 
iShares S&P Small-Cap 600 Value ETF   80,500    10,964,905 
Vanguard Small-Cap ETF   82,800    11,006,604 
Vanguard Small-Cap Growth ETF   77,200    11,045,776 
Vanguard Small-Cap Value ETF   91,100    10,967,529 
Total Domestic Exchange Traded Funds
(Cost $110,737,636)		        109,669,001 
Foreign Stocks & ADR's 1.5%          
Israel 1.5%          
NICE Systems Ltd. ADR
(Cost $9,428,809)		   223,920    17,445,607 
Real Estate Investment Trusts 1.9%          
Real Estate 1.9%          
Corporate Office          
Properties Trust(a)
(Cost $15,904,541)		   642,500    21,671,525 
Institutional Money Market Funds 1.3%        
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class
(Cost $14,845,379)		   14,845,379    14,845,379 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 11.8%          
Federal Home Loan Bank 11.8%          
Agency Discount Notes:         
0.5%, 06/01/17   50,000 M    50,000,000 
0.61%, 06/02/17   86,000 M    85,998,503 
Total U.S. Government Obligations
(Cost $135,998,503)		        135,998,503 
Total Investments 100.4%
(Cost $981,852,995)†		        1,156,442,807 
           
Excess of Liabilities Over Other Assets (0.4)%        (4,117,062)
           
Net Assets 100.0%       $1,152,325,745 

 

*Non-income producing.

 

†Cost for federal income tax purposes is $981,852,995. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $174,589,812 of which $211,384,185 related to appreciated securities and $36,794,373 related to depreciated securities.

 

(a)Return of capital paid during the fiscal period.

 

ADR-  American Depositary Receipt

 

22 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Sustainable Core Opportunities Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Top Sectors*

 

Sector Percent of Net Assets
Information Technology 23.0%
Financials 15.7%
Health Care 14.9%
Consumer Discretionary 13.6%
Industrials 10.1%
Sector Percent of Net Assets
Consumer Staples 9.0%
Energy 4.9%
Materials 2.1%
Real Estate 1.6%
Telecommunication Services 1.5%

 

Top 10 Holdings**

 

Description Percent of Net Assets
Microsoft Corp. 3.4%
Visa, Inc. 3.0%
Apple, Inc. 3.0%
Alphabet, Inc. 2.7%
S&P Global, Inc. 2.2%
UnitedHealth Group, Inc. 2.2%
Description Percent of Net Assets
PepsiCo, Inc. 2.1%
Comcast Corp. 2.1%
McDonald's Corp. 2.0%
PNC Financial Services Group, Inc. 1.9%
Total of Net Assets 24.6%

 

*"Top Sectors" includes Domestic Common Stocks, Foreign Stocks & ADRs and Real Estate Investment Trusts.

**"Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

       Value 
   Shares   (Note 2) 
Domestic Common Stocks 89.8%          
Consumer Discretionary 13.6%          
Amazon.com, Inc.*   2,000   $1,989,240 
BorgWarner, Inc.   55,000    2,338,050 
Comcast Corp.   190,000    7,921,100 
Goodyear Tire & Rubber Co.   100,000    3,222,000 
Home Depot, Inc.   35,000    5,372,850 
Marriott Int'l., Inc.   40,000    4,306,000 
McDonald's Corp.   51,000    7,695,390 
Omnicom Group, Inc.   60,000    5,023,200 
Priceline Group, Inc.*   1,700    3,191,053 
Time Warner, Inc.   45,000    4,477,050 
TJX Cos., Inc.   95,000    7,144,950 
         52,680,883 
Consumer Staples 7.1%          
CVS Health Corp.   40,000    3,073,200 
Estee Lauder Cos, Inc.   50,000    4,707,000 
Kraft Heinz Co.   40,000    3,688,000 
McCormick & Co., Inc.   13,000    1,353,950 
PepsiCo, Inc.   70,000    8,180,900 
Procter & Gamble Co.   75,000    6,606,750 
         27,609,800 
Energy 4.9%          
Anadarko Petroleum Corp.   65,000    3,284,450 
Baker Hughes, Inc.   40,000    2,206,000 
EOG Resources, Inc.   56,500    5,102,515 
Noble Energy, Inc.   125,000    3,586,250 
       Value 
   Shares   (Note 2) 
Schlumberger Ltd.   70,000   $4,871,300 
         19,050,515 
Financials 15.7%          
American Express Co.   40,000    3,077,600 
Chubb Ltd.   40,000    5,727,600 
CME Group, Inc.   57,000    6,685,530 
Comerica, Inc.   50,000    3,428,000 
Discover Financial Services   65,000    3,815,500 
Morgan Stanley   160,000    6,678,400 
PNC Financial Services Group, Inc.   62,500    7,418,750 
Raymond James Financial, Inc.   37,910    2,739,756 
S&P Global, Inc.   60,000    8,568,600 
Signature Bank*   40,000    5,720,800 
The Travelers Cos., Inc.   38,000    4,744,300 
Webster Financial Corp.   45,000    2,192,400 
         60,797,236 
Health Care 13.8%          
Amgen, Inc.   25,000    3,881,000 
Becton Dickinson & Co.   20,000    3,784,600 
Biogen, Inc.*   9,000    2,229,930 
Bristol-Myers Squibb Co.   60,000    3,237,000 
Danaher Corp.   52,000    4,416,880 
Eli Lilly & Co.   33,000    2,625,810 
Johnson & Johnson   22,500    2,885,625 
Medtronic PLC(a)   65,000    5,478,200 
Merck & Co., Inc.   110,000    7,162,100 
       Value 
   Shares   (Note 2) 
Stryker Corp.   22,000   $3,145,120 
UnitedHealth Group, Inc.   48,000    8,408,640 
Zoetis, Inc.   95,000    5,916,600 
         53,171,505 
Industrials 8.8%          
3M Co.   25,000    5,111,750 
Ametek, Inc.   35,000    2,135,700 
Canadian Pacific Railway Ltd.   19,000    3,006,370 
Fortive Corp.   31,000    1,935,950 
Johnson Controls Int'l. plc   71,625    2,991,060 
Parker Hannifin Corp.   22,000    3,464,340 
United Parcel Service, Inc.   20,000    2,119,400 
Verisk Analytics, Inc.*   40,000    3,235,600 
Waste Connections, Inc.   56,170    5,344,576 
Xylem Inc   90,000    4,692,600 
         34,037,346 
Information Technology 22.3%          
Accenture PLC   59,000    7,343,730 
Alphabet, Inc.*   10,500    10,364,445 
Apple, Inc.   75,000    11,457,000 
Check Point Software Technologies Ltd.*   25,000    2,801,250 
Cisco Systems, Inc.   160,000    5,044,800 
Cognizant Technology Solutions Corp.   40,000    2,676,400 
Microchip Technology, Inc.   70,000    5,831,000 
Microsoft Corp.   190,000    13,269,600 

 

The accompanying notes are an integral part of the financial statements. 23

 

 

 

 

Sentinel Sustainable Core Opportunities Fund

 

       Value 
   Shares   (Note 2) 
Open Text Corp.   83,000   $2,708,290 
Skyworks Solutions, Inc.   30,000    3,192,900 
Synopsys, Inc.*   40,000    2,994,800 
Texas Instruments, Inc.   85,000    7,011,650 
Visa, Inc.   121,000    11,522,830 
         86,218,695 
Materials 2.1%          
Ecolab, Inc.   42,000    5,579,280 
Praxair, Inc.   20,000    2,645,800 
         8,225,080 
Telecommunication Services 1.5%          
Verizon Communications, Inc.   120,000    5,596,800 
Total Domestic Common Stocks
(Cost $228,871,456)		        347,387,860 
Foreign Stocks & ADR's 5.0%          
Denmark 1.3%          
Vestas Wind Systems A/S ADR   170,000    5,011,600 
Israel 0.7%          
NICE Systems Ltd. ADR   35,000    2,726,850 
Netherlands 1.9%          
Unilever NV ADR   130,000    7,381,400 
Switzerland 1.1%          
Roche Holding AG ADR   120,000    4,125,600 
Total Foreign Stocks & ADR's
(Cost $14,949,313)		        19,245,450 
Real Estate Investment Trusts 1.6%          
Real Estate 1.6%          
Equinix, Inc.
(Cost $4,605,054)		   14,000    6,174,140 
Institutional Money Market Funds 2.7%
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class
(Cost $10,416,771)		   10,416,771    10,416,771 

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 1.0%          
Federal Home Loan Bank 1.0%          
Agency Discount Notes:          
0.6%, 06/02/17
(Cost $3,999,933)		   4,000 M    3,999,933 
Total Investments 100.1%
(Cost $262,842,527)†		        387,224,154 
           
Excess of Liabilities Over Other Assets (0.1)%        (385,564)
           
Net Assets 100.0%       $386,838,590 

 

 

*Non-income producing.

 

†Cost for federal income tax purposes is $262,842,527. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $124,381,627 of which $129,027,302 related to appreciated securities and $4,645,675 related to depreciated securities.

 

(a)Return of capital paid during the fiscal period

 

ADR-  American Depositary Receipt

 

24 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Total Return Bond Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Average Effective Duration (Unaudited)

 

  Percent of
Duration Fixed Income Holdings
Less than 1 yr. 6.9 %
1 yr. to 2.99 yrs. 6.6 %
3 yrs. to 3.99 yrs. 4.6 %

 

Average Effective Duration (for all Fixed Income Holdings) 5.6 years*

  Percent of
Duration Fixed Income Holdings
4 yrs. to 5.99 yrs. 30.2 %
6 yrs. to 7.99 yrs. 31.6 %
8 yrs. and over 20.1 %

 

Top 10 Holdings**

 

    Maturity Percent of
Description Coupon Date Net Assets
iShares iBoxx $ Investment Grade Corporate Bond ETF     18.8%
FHLMC Q32917 3.00% 04/01/45 4.1%
FHLMC Q33006 3.50% 04/01/45 3.6%
FHLMC Q29056 4.00% 10/01/44 3.4%
SPDR Barclays Short Term Corporate Bond ETF     3.2%
    Maturity Percent of
Description Coupon Date Net Assets
FNMA AT2016 3.00% 04/01/43 2.9%
FNMA TBA 15YR June 2.50% 06/19/32 2.7%
FNMA BC1809 3.50% 05/01/46 2.2%
FNMA 890310 4.50% 12/01/40 2.2%
GNR 10-33 PX 5.00% 09/20/38 1.8%
Total of Net Assets     44.9%

*The average effective duration considers the call and put dates of applicable fixed income investments and the pre-payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates.

** "Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 29.5%          
U.S. Government Agency Obligations 29.5%          
Federal Home Loan Mortgage Corporation 12.5%          
Collateralized Mortgage Obligations:          
FHR 3859 JB
5%, 05/15/41		   1,988 M   $2,167,242 
Mortgage-Backed Securities:          
15-Year:          
FHLMC J22900
2.5%, 03/01/28		   1,059 M    1,077,189 
30-Year:          
FHLMC Q29056
4%, 10/01/44		   7,702 M    8,135,303 
FHLMC Q32917
3%, 04/01/45		   9,584 M    9,661,049 
FHLMC Q33006
3.5%, 04/01/45		   8,387 M    8,663,874 
         26,460,226 
Total Federal Home Loan Mortgage Corporation        29,704,657 
Federal National Mortgage Association 12.8%          
Mortgage-Backed Securities:          
15-Year:          
FNMA TBA 15YR June
2.5%, 06/19/32(a)		   6,540 M    6,604,313 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
30-Year:          
FNMA 725423
5.5%, 05/01/34		   607 M   $ 681,498 
FNMA 725610
5.5%, 07/01/34		   559 M    627,842 
FNMA AD9193
5%, 09/01/40		   1,615 M    1,777,422 
FNMA 890310
4.5%, 12/01/40		   4,823 M    5,218,295 
FNMA AT2016
3%, 04/01/43		   6,799 M    6,867,602 
FNMA AS0779
4%, 10/01/43		   3,365 M    3,596,648 
FNMA BC1809
3.5%, 05/01/46		   5,076 M    5,241,875 
         24,011,182 
Total Federal National Mortgage Association        30,615,495 
Government National Mortgage Corporation 4.2%          
Collateralized Mortgage Obligations:          
GNR 10-33 PX
5%, 09/20/38		   4,137 M    4,324,345 
GNR 10-169 AW
4.5%, 12/20/40		   2,750 M    2,993,474 
GNR 12-147 Interest Only
0.5686%, 04/16/54		   8,297 M    309,133 
         7,626,952 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Mortgage-Backed Securities:          
30-Year:          
GNMA II 005175
4.5%, 09/20/41		   2,213 M   $2,393,684 
Total Government National Mortgage Corporation        10,020,636 
Total U.S. Government Obligations
(Cost $70,515,658)		        70,340,788 
Domestic Corporate Bonds 41.8%          
Basic Industry 1.6%          
Domtar Corp.
6.25%, 09/01/42		   3,000 M    3,068,295 
Int'l. Paper Co.
4.4%, 08/15/47		   800 M    801,945 
         3,870,240 
Capital Goods 3.2%          
Lockheed Martin Corp.
3.55%, 01/15/26		   2,900 M    3,015,652 
Northrop Grumman Corp.
3.85%, 04/15/45		   3,000 M    2,944,014 
Reynolds Group Issuer LLC
5.125%, 07/15/23(b)		   839 M    870,463 
United Technologies Corp.
2.65%, 11/01/26		   900 M    878,037 
         7,708,166 
Communications 7.8%          
AMC Networks, Inc.
5%, 04/01/24		   2,480 M    2,517,175 
America Movil SAB de CV
6.125%, 03/30/40		   900 M    1,095,476 

 

The accompanying notes are an integral part of the financial statements. 25

 

 

 

 

Sentinel Total Return Bond Fund

 

   Principal     
   Amount   Value 
    (M=$1,000)    (Note 2) 
AT&T, Inc.
3.8%, 03/15/22		   1,631 M   $1,699,530 
CBS Corp.
4%, 01/15/26		   1,500 M    1,551,106 
CCO Holdings LLC
5.75%, 02/15/26(b)		   689 M    738,091 
Comcast Corp.
2.35%, 01/15/27		   2,900 M    2,729,228 
Cox Communications, Inc.
3.35%, 09/15/26(b)		   800 M    790,687 
CSC Holdings LLC
10.875%, 10/15/25(b)		   1,275 M    1,552,312 
Frontier Communications Corp.
11%, 09/15/25		   839 M    783,416 
SFR Group SA
7.375%, 05/01/26(b)		   839 M    908,738 
Sprint Corp.
7.875%, 09/15/23		   839 M    970,094 
Telesat Canada / Telesat LLC
8.875%, 11/15/24(b)		   400 M    448,000 
Time Warner, Inc.
3.8%, 02/15/27		   2,900 M    2,892,608 
         18,676,461 
Consumer Cyclical 5.2%          
Amazon.com, Inc.
4.95%, 12/05/44		   900 M    1,052,196 
DR Horton, Inc.
4.75%, 02/15/23		   850 M    920,875 
General Motors Financial Co., Inc.
3.2%, 07/06/21		   1,650 M    1,665,835 
5.25%, 03/01/26   2,000 M    2,151,550 
Macy's Retail Holdings, Inc.
2.875%, 02/15/23		   800 M    742,498 
McDonald's Corp.
3.7%, 01/30/26		   1,400 M    1,458,439 
QVC, Inc.
5.45%, 08/15/34		   1,825 M    1,708,649 
Walgreens Boots Alliance, Inc.
3.45%, 06/01/26		   2,300 M    2,298,645 
Wynn Las Vegas LLC
5.5%, 03/01/25(b)		   325 M    343,688 
         12,342,375 
Consumer Non-Cyclical 9.8%          
Abbott Laboratories
4.9%, 11/30/46		   800 M    851,057 
Altria Group, Inc.
3.875%, 09/16/46		   3,000 M    2,864,523 
Amgen, Inc.
2.6%, 08/19/26		   3,000 M    2,848,512 
Anheuser-Busch InBev Finance, Inc.
4.9%, 02/01/46		   1,400 M    1,552,055 
Cardinal Health, Inc.
4.9%, 09/15/45		   2,010 M    2,124,305 
DaVita, Inc.
5.125%, 07/15/24		   689 M    701,057 
Express Scripts Holding Co.
3.4%, 03/01/27		   1,500 M    1,446,219 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
HCA, Inc.
5.375%, 02/01/25		   600 M   $630,750 
Kraft Heinz Foods Co.
4.375%, 06/01/46		   2,000 M    1,911,360 
Medtronic, Inc.
3.5%, 03/15/25		   1,400 M    1,459,779 
Molson Coors Brewing Co.
3%, 07/15/26		   3,000 M    2,913,558 
Thermo Fisher Scientific, Inc.
2.95%, 09/19/26		   3,000 M    2,930,685 
Zoetis, Inc.
3.25%, 02/01/23		   1,036 M    1,066,978 
         23,300,838 
Energy 0.2%          
Sabine Pass Liquefaction LLC
5.625%, 03/01/25		   325 M    360,681 
Financials 4.1%          
Bank of America Corp.
3.248%, 10/21/27		   2,900 M    2,809,969 
Brookfield Asset Management, Inc.
4%, 01/15/25		   2,946 M    2,991,318 
Citizens Financial Group, Inc.
4.3%, 12/03/25		   824 M    862,574 
Icahn Enterprises LP
5.875%, 02/01/22		   325 M    332,719 
JPMorgan Chase & Co
2.95%, 10/01/26		   2,900 M    2,804,048 
         9,800,628 
Insurance 3.5%          
Chubb INA Holdings, Inc.
3.35%, 05/03/26		   2,900 M    2,991,283 
Manulife Financial Corp.
4.15%, 03/04/26		   1,570 M    1,669,824 
MetLife, Inc.
4.6%, 05/13/46		   1,400 M    1,534,901 
Travelers Cos, Inc.
3.75%, 05/15/46		   2,250 M    2,212,414 
         8,408,422 
Real Estate 2.2%          
HCP, Inc.
4%, 06/01/25		   800 M    819,560 
Retail Opportunity Investments Partnership LP
5%, 12/15/23		   2,300 M    2,402,647 
Simon Property Group LP
4.25%, 11/30/46		   2,000 M    1,980,120 
         5,202,327 
Technology 3.7%          
Ericsson LM
4.125%, 05/15/22		   2,725 M    2,774,876 
KLA-Tencor Corp.
4.65%, 11/01/24		   800 M    866,416 
Microsoft Corp.
2.4%, 08/08/26		   2,900 M    2,793,599 
Nuance Communications, Inc.
5.625%, 12/15/26(b)		   50 M    52,625 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
QUALCOMM, Inc.
3.45%, 05/20/25		   2,250 M   $2,318,076 
         8,805,592 
Transportation 0.2%          
XPO Logistics, Inc.
6.5%, 06/15/22(b)		   325 M    345,052 
Utilities 0.3%          
Electricite de France SA
3.625%, 10/13/25(b)		   800 M    820,021 
Total Domestic Corporate Bonds
(Cost $97,645,455)		        99,640,803 
Asset Backed Securities 1.2%          
Nomad CLO Ltd.
2.3584%, 01/15/25(b)		   781 M    781,460 
Taco Bell Funding, LLC
3.832%, 05/25/26(b)		   1,985 M    2,027,221 
Total Asset Backed Securities
(Cost $2,766,625)		        2,808,681 
Bank Loans 0.7%          
Consumer Discretionary 0.1%          
J Crew Group, Inc.
4.22%, 03/05/21(c)		   323 M    220,096 
Technology 0.6%          
Micron Technology, Inc.
3.72%, 04/26/22(d)		   1,419 M    1,433,000 
Total Bank Loans
(Cost $1,606,877)		        1,653,096 

 

       Value 
   Shares   (Note 2) 
Domestic Exchange Traded Funds 22.0%          
Bond Funds 22.0%          
iShares iBoxx $ Investment Grade Corporate Bond ETF   374,231    45,001,278 
SPDR Barclays Short Term Corporate Bond ETF   248,641    7,625,819 
Total Domestic Exchange Traded Funds
(Cost $50,038,474)		        52,627,097 
Institutional Money Market Funds 1.6%          
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class
(Cost $3,744,099)		   3,744,099    3,744,099 
Total Investments 96.8%
(Cost $226,317,188)†		        230,814,564 
           
Other Assets in Excess of Liabilities 3.2%        7,569,217 
           
Net Assets 100.0%       $238,383,781 

 

26 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Total Return Bond Fund

 

†Cost for federal income tax purposes is $226,317,188. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $4,497,376 of which $5,640,736 related to appreciated securities and $1,143,360 related to depreciated securities.

 

(a)The actual mortgage-backed security that will be delivered is not designated until 48 hours prior to the established trade settlement date with the broker.

 

(b)Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2017, the market value of rule 144A securities amounted to $9,678,358 or 4.06% of net assets.

 

(c)J Crew Group, Inc. has a variable interest rate that floats quarterly and is adjusted in March, June, September, and December. The interest rate is based on the 3-month Libor rate plus 3.00%.

 

(d)Micron Technologies, Inc. has a variable interest rate that floats quarterly in January, April, July, and October. The interest rate is based on the 3-month Libor rate plus 2.5%.

 

SPDR-  Standard & Poor's Depository Receipts

 

 

At May 31, 2017, the following futures contracts were outstanding with $419,020 segregated with the broker for margin maintenance purposes:

 

          Unrealized 
   Contract  Contract   Appreciation/ 
Contract Description  Expiration  Value   (Depreciation) 
            
Short, 140 U.S. Treasury 10-Year Note futures contracts  9/15  $17,681,563   $(42,495)
              
Short, 53 U.S. Treasury 30-Year Bond futures contracts  9/15   8,152,063    (47,819)
              
Totals     $25,833,626   $(90,314)
              
Net payments of variation margin and/or brokerage fees           44,126 
              
Variation margin payable on open futures contracts          $(46,188)

 

 

The accompanying notes are an integral part of the financial statements. 27

 

 

 

 

Sentinel Unconstrained Bond Fund

(Unaudited)

 

Fund Profile

at May 31, 2017

 

Average Effective Duration (Unaudited)

 

  Percent of
Duration Fixed Income Holdings
Less than 1 yr. 33.9 %
1 yr. to 2.99 yrs. 7.4 %
3 yrs. to 3.99 yrs. 5.0 %

Average Effective Duration (for all Fixed Income Holdings) 4.3 years*

  Percent of
Duration Fixed Income Holdings
4 yrs. to 5.99 yrs. 22.9 %
6 yrs. to 7.99 yrs. 18.1 %
8 yrs. and over 12.7 %

 

Top 10 Holdings*

 

    Maturity Percent of
Description Coupon Date Net Assets
FNMA AS7106 3.50% 05/01/46 3.3%
FNMA AU1628 3.00% 07/01/43 3.0%
FNMA AH8925 4.50% 03/01/41 2.1%
FHLMC Q33006 3.50% 04/01/45 2.1%
FNMA AZ5591 4.00% 08/01/45 1.7%
    Maturity Percent of
Description Coupon Date Net Assets
FHLMC G08637 4.00% 04/01/45 1.7%
FNMA TBA 15YR June 2.50% 06/19/32 1.7%
FHLMC Q32917 3.00% 04/01/45 1.5%
FNMA BC4492 4.50% 12/01/39 1.5%
FNMA 890739 2.50% 08/01/31 1.5%
Total of Net Assets     20.1%

 

*The average effective duration considers the call and put dates of applicable fixed income investments and the pre-payment risks of mortgage-backed bonds to measure the sensitivity of the value of the Fund's portfolio to changes in interest rates.

** "Top 10 Holdings" excludes any short-term investments and money market funds. Portfolio composition and holdings are subject to change. More complete holdings follow.

 

 

Schedule of Investments

at May 31, 2017 (Unaudited)

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
U.S. Government Obligations 21.4%          
U.S. Government Agency Obligations 21.4%          
Federal Home Loan Mortgage Corporation 5.3%          
Mortgage-Backed Securities:          
30-Year:          
FHLMC Q32917
3%, 04/01/45		   420 M   $423,730 
FHLMC Q33006
3.5%, 04/01/45		   543 M    561,089 
FHLMC G08637
4%, 04/01/45		   432 M    456,151 
Total Federal Home Loan Mortgage Corporation        1,440,970 
Federal National Mortgage Association 16.1%          
Mortgage-Backed Securities:          
15-Year:          
FNMA TBA 15YR June
2.5%, 06/19/32(a)		   450 M    454,425 
20-Year:          
FNMA 890739
2.5%, 08/01/31		   395 M    399,075 
30-Year:          
FNMA BC4492
4.5%, 12/01/39		   376 M    405,094 
FNMA AH8925
4.5%, 03/01/41		   524 M    567,369 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
FNMA AU1628
3%, 07/01/43		   804 M   $811,885 
FNMA AZ5591
4%, 08/01/45		   439 M    463,334 
FNMA AZ7347
3%, 11/01/45		   349 M    350,955 
FNMA AS7106
3.5%, 05/01/46		   886 M    915,096 
         3,513,733 
Total Federal National Mortgage Association        4,367,233 
Total U.S. Government Obligations
(Cost $5,894,582)		        5,808,203 
Domestic Corporate Bonds 27.8%          
Basic Industry 0.7%          
Int'l. Paper Co.
4.4%, 08/15/47		   200 M    200,486 
Capital Goods 2.2%          
Lockheed Martin Corp.
3.55%, 01/15/26		   250 M    259,970 
Reynolds Group Issuer LLC
5.125%, 07/15/23(b)		   82 M    85,075 
United Technologies Corp.
2.65%, 11/01/26		   250 M    243,899 
         588,944 
Communications 6.7%          
AMC Networks, Inc.
5%, 04/01/24		   135 M    137,024 
America Movil SAB de CV
6.125%, 03/30/40		   250 M    304,299 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
AT&T, Inc.
3.8%, 03/15/22		   152 M $    158,387 
CCO Holdings LLC
5.75%, 02/15/26(b)		   82 M    87,842 
Comcast Corp.
2.35%, 01/15/27		   250 M    235,278 
Cox Communications, Inc.
3.35%, 09/15/26(b)		   200 M    197,672 
CSC Holdings LLC
10.875%, 10/15/25(b)		   100 M    121,750 
Frontier Communications Corp.
11%, 09/15/25		   82 M    76,567 
SFR Group SA
7.375%, 05/01/26(b)		   82 M    88,816 
Sprint Corp.
7.875%, 09/15/23		   82 M    94,812 
Telesat Canada / Telesat LLC
8.875%, 11/15/24(b)		   70 M    78,400 
Time Warner, Inc.
3.8%, 02/15/27		   250 M    249,363 
         1,830,210 
Consumer Cyclical 5.0%          
Amazon.com, Inc.
4.95%, 12/05/44		   250 M    292,277 
DR Horton, Inc.
4.75%, 02/15/23		   75 M    81,254 
General Motors Financial Co., Inc.
3.2%, 07/06/21		   100 M    100,960 
Macy's Retail Holdings, Inc.
2.875%, 02/15/23		   200 M    185,624 

 

28 The accompanying notes are an integral part of the financial statements.

 

 

 

 

Sentinel Unconstrained Bond Fund

 

   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
McDonald's Corp.
3.7%, 01/30/26		   250 M    $260,435 
QVC, Inc.
5.45%, 08/15/34		   140 M    131,074 
Walgreens Boots Alliance, Inc.
3.45%, 06/01/26		   250 M    249,853 
Wynn Las Vegas LLC
5.5%, 03/01/25(b)		   50 M    52,875 
         1,354,352 
Consumer Non-Cyclical 4.5%          
Abbott Laboratories
4.9%, 11/30/46		   200 M    212,764 
Anheuser-Busch InBev Finance, Inc.
4.9%, 02/01/46		   250 M    277,153 
Cardinal Health, Inc.
4.9%, 09/15/45		   120 M    126,824 
DaVita, Inc.
5.125%, 07/15/24		   82 M    83,435 
Express Scripts Holding Co.
3.4%, 03/01/27		   150 M    144,622 
HCA, Inc.
5.375%, 02/01/25		   70 M    73,587 
Medtronic, Inc.
3.5%, 03/15/25		   250 M    260,675 
Zoetis, Inc.
3.25%, 02/01/23		   35 M    36,047 
         1,215,107 
Energy 0.2%          
           
Sabine Pass Liquefaction LLC
5.625%, 03/01/25		   50 M    55,490 
Financials 2.2%          
Bank of America Corp.
3.248%, 10/21/27		   250 M    242,239 
Citizens Financial Group, Inc.
4.3%, 12/03/25		   49 M    51,294 
Icahn Enterprises LP
5.875%, 02/01/22		   50 M    51,187 
JPMorgan Chase & Co
2.95%, 10/01/26		   250 M    241,728 
         586,448 
Insurance 2.3%          
Chubb INA Holdings, Inc.
3.35%, 05/03/26		   250 M    257,869 
Manulife Financial Corp.
4.15%, 03/04/26		   85 M    90,404 
MetLife, Inc.
4.6%, 05/13/46		   250 M    274,090 
         622,363 
Real Estate 1.2%          
HCP, Inc.
4%, 06/01/25		   200 M    204,890 
Retail Opportunity Investments Partnership LP
5%, 12/15/23		   125 M    130,579 
         335,469 
   Principal     
   Amount   Value 
   (M=$1,000)   (Note 2) 
Technology 1.9%          
KLA-Tencor Corp.
4.65%, 11/01/24		   200 M   $216,604 
Microsoft Corp.
2.4%, 08/08/26		   250 M    240,828 
Nuance Communications, Inc.
5.625%, 12/15/26(b)		   50 M    52,625 
         510,057 
Transportation 0.2%          
XPO Logistics, Inc.
6.5%, 06/15/22(b)		   50 M    53,085 
Utilities 0.7%          
Electricite de France SA
3.625%, 10/13/25(b)		   200 M    205,005 
Total Domestic Corporate Bonds
(Cost $7,391,588)		        7,557,016 
Bank Loans 0.4%          
Consumer Discretionary 0.1%          
J Crew Group, Inc.
4.22%, 03/05/21(c)		   50 M    33,861 
Technology 0.3%          
Micron Technology, Inc.
3.72%, 04/26/22(d)		   69 M    70,147 
Total Bank Loans
(Cost $97,863)		        104,008 
Asset Backed Securities 1.0%          
Nomad CLO Ltd.
2.3584%, 01/15/25(b)		   162 M    162,543 
Taco Bell Funding, LLC
3.832%, 05/25/26(b)		   99 M    101,361 
Total Asset Backed Securities
(Cost $261,828)		        263,904 

 

       Value 
   Shares   (Note 2) 
Domestic Exchange Traded Funds 15.8%          
Bond Funds 15.8%          
iShares iBoxx $ Investment Grade Corporate Bond ETF   20,567    2,473,182 
SPDR Barclays Short Term Corporate Bond ETF   58,924    1,807,199 
Total Domestic Exchange Traded Funds
(Cost $4,163,528)		        4,280,381 
Institutional Money Market Funds 34.6%          
State Street Institutional U.S.          
Government Money Market Fund          
Premier Class
(Cost $9,384,743)		   9,384,743    9,384,743 
Total Investments 101.0%
(Cost $27,194,132)†		        27,398,255 
           
Excess of Liabilities Over Other Assets (1.0)%        (274,336)
           
Net Assets 100.0%       $27,123,919 

 

 

  †Cost for federal income tax purposes is $27,194,132. At May 31, 2017 unrealized appreciation for federal income tax purposes aggregated $204,123 of which $332,193 related to appreciated securities and $128,070 related to depreciated securities.

 

(a)The actual mortgage-backed security that will be delivered is not designated until 48 hours prior to the established trade settlement date with the broker.

 

(b)Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2017, the market value of rule 144A securities amounted to $1,287,049 or 4.75% of net assets.

 

(c)J Crew Group, Inc. has a variable interest rate that floats quarterly and is adjusted in March, June, September, and December. The interest rate is based on the 3-month Libor rate plus 3.00%.

 

(d)Micron Technologies, Inc. has a variable interest rate that floats quarterly in January, April, July, and October. The interest rate is based on the 3-month Libor rate plus 2.5%.

 

The accompanying notes are an integral part of the financial statements. 29

 

 

 

 

Statement of Assets and Liabilities

at May 31, 2017 (Unaudited)

 

       Common   Government   International 
   Balanced   Stock   Securities   Equity 
Assets                    
Investments at value  $349,491,958   $2,064,347,050   $181,540,329   $203,661,221 
Cash   2    6    2    19,005 
Receivable for securities sold   –    13,442,462    –    – 
Receivable for fund shares sold   543,479    891,362    44,646    701,060 
Receivable for interest   130,138    –    526,356    – 
Receivable for dividends   477,407    4,169,890    –    347,779 
Receivable for dividend tax reclaims   –    263,497    –    385,161 
Receivable from Fund Advisor   –    1,424    –    – 
Total Assets   350,642,984    2,083,115,691    182,111,333    205,114,226 
                     
Liabilities                    
Payable for securities purchased   5,058,187    7,748,450    5,804,707    – 
Payable for fund shares repurchased   988,424    6,628,173    175,750    336,942 
Accrued expenses   91,053    309,460    81,517    75,897 
Management fee payable   154,474    1,010,996    67,695    117,617 
Distribution fee payable (Class A Shares)   58,429    288,933    23,532    27,779 
Distribution fee payable (Class C Shares)   40,323    72,898    13,935    6,051 
Fund accounting fee payable   10,782    64,716    5,555    6,205 
Directors' and Chief Compliance Officer's fees payable   2,218    4,316    769    1,000 
Deferred compensation (see note 3)   183,329    968,066    258,578    94,637 
Payable for estimated foreign taxes on unrealized capital gains   –    –    –    51,265 
Total Liabilities   6,587,219    17,096,008    6,432,038    717,393 
Net Assets  $344,055,765   $2,066,019,683   $175,679,295   $204,396,833 
                     
Net Assets Represent                    
Capital stock at par value  $163,707   $468,314   $180,129   $109,921 
Paid-in capital   222,847,471    889,155,501    232,753,814    166,169,167 
Accumulated undistributed (distributions in excess of) net investment income (loss)   (56,893)   3,839,096    (1,107,352)   666,342 
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions   3,662,129    103,363,075    (58,419,470)   (1,926,794)
Unrealized appreciation (depreciation) of investments and foreign exchange   117,439,351    1,069,193,697    2,272,174    39,378,197 
Net Assets  $344,055,765   $2,066,019,683   $175,679,295   $204,396,833 
Investments at Cost  $232,052,607   $995,153,353   $179,268,155   $164,227,752 
                     
Net Asset Value and Maximum Offering Price Per Share                    
Class A Shares*                    
Net Assets Applicable to Class A Shares/  $275,314,813   $1,365,050,530   $137,660,429   $132,725,220 
Shares Outstanding   13,099,983    30,876,238    14,116,805    7,097,842 
Net Asset Value per Share  $21.02   $44.21   $9.75   $18.70 
Sales Charge   1.11    2.33    0.22    0.98 
Maximum Offering Price**  $22.13   $46.54   $9.97   $19.68 
Class C Shares*                    
Net Assets Applicable to Class C Shares/  $47,511,264   $84,483,101   $15,983,345   $7,391,999 
Shares Outstanding   2,254,643    2,004,177    1,637,064    418,340 
Net Asset Value per Share***  $21.07   $42.15   $9.76   $17.67 
Class I Shares*                    
Net Assets Applicable to Class I Shares/  $21,229,688   $579,525,133   $22,035,521   $64,279,614 
Shares Outstanding   1,016,083    13,115,821    2,259,068    3,475,941 
Net Asset Value per Share***  $20.89   $44.19   $9.75   $18.49 
Class R6 Shares*                    
Net Assets Applicable to Class R6 Shares/   N/A   $36,960,919    N/A    N/A 
Shares Outstanding   N/A    835,136    N/A    N/A 
Net Asset Value per Share***   N/A   $44.26    N/A    N/A 

 

See notes to Statement of Assets and Liabilities at the end of the schedule.

Amounts designated as "-" are either $0 or have been rounded to $0.

 

30 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Statement of Assets and Liabilities

 

   Low Duration   Multi-Asset   Small   Sustainable Core 
   Bond   Income   Company   Opportunities 
Assets                    
Investments at value  $299,604,452   $285,727,629   $1,156,442,807   $387,224,154 
Cash   6,465    13,520    –    478 
Cash collateral with futures commission merchant   174,727    –    –    – 
Receivable for securities sold   –    1,280,054    4,033,608    415,385 
Receivable for fund shares sold   563,735    152,024    2,269,800    163,904 
Receivable for interest   1,269,894    1,595,852    –    – 
Receivable for dividends   –    –    480,294    627,482 
Receivable for dividend tax reclaims   –    11,171    5,736    32,335 
Receivable for securities lending income   2,445    12,520    –    – 
Receivable from Fund Advisor   –    –    460    – 
Total Assets   301,621,718    288,792,770    1,163,232,705    388,463,738 
                     
Liabilities                    
Payable for securities purchased   –    6,788,238    2,439,185    924,614 
Payable for collateral on securities loaned   –    2,864,470    –    – 
Payable for fund shares repurchased   812,759    2,590,170    6,440,114    213,264 
Accrued expenses   103,549    101,087    300,550    79,370 
Management fee payable   115,613    128,707    633,733    228,405 
Distribution fee payable (Class A Shares)   18,369    24,499    144,665    75,479 
Distribution fee payable (Class C Shares)   –    78,973    93,489    – 
Distribution fee payable (Class S Shares)   84,092    –    –    – 
Fund accounting fee payable   9,488    8,879    36,455    12,049 
Directors' and Chief Compliance Officer's fees payable   371    1,147    3,286    1,047 
Deferred compensation (see note 3)   464,844    125,904    815,483    90,920 
Variation margin payable on futures contracts   5,391    –    –    – 
Total Liabilities   1,614,476    12,712,074    10,906,960    1,625,148 
Net Assets  $300,007,242   $276,080,696   $1,152,325,745   $386,838,590 
                     
Net Assets Represent                    
Capital stock at par value  $353,315   $222,413   $2,336,956   $167,129 
Paid-in capital   425,270,379    267,512,180    881,385,832    255,764,120 
Accumulated undistributed (distributions in excess of) net investment income (loss)   (927,130)   (220,159)   (6,038,729)   1,190,234 
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions   (127,271,784)   (501,143)   100,051,874    5,335,480 
Unrealized appreciation (depreciation) of investments and foreign exchange   2,582,462    9,067,405    174,589,812    124,381,627 
Net Assets  $300,007,242   $276,080,696   $1,152,325,745   $386,838,590 
Investments at Cost  $297,004,155   $276,659,099   $981,852,995   $262,842,527 
                     
Net Asset Value and Maximum Offering Price Per Share                    
Class A Shares*                    
Net Assets Applicable to Class A Shares/  $85,815,097   $113,294,399   $675,709,242   $358,115,373 
Shares Outstanding   10,118,543    9,103,184    132,357,845    15,476,085 
Net Asset Value per Share  $8.48   $12.45   $5.11   $23.14 
Sales Charge   0.09    0.66    0.27    1.22 
Maximum Offering Price**  $8.57   $13.11   $5.38   $24.36 
Class C Shares*                    
Net Assets Applicable to Class C Shares/   N/A   $91,766,192   $108,687,267    N/A 
Shares Outstanding   N/A    7,415,433    34,202,712    N/A 
Net Asset Value per Share***   N/A   $12.38   $3.18    N/A 
Class I Shares*                    
Net Assets Applicable to Class I Shares/  $17,812,988   $71,020,105   $335,343,450   $28,723,217 
Shares Outstanding   2,096,381    5,722,645    60,843,694    1,236,845 
Net Asset Value per Share***  $8.50   $12.41   $5.51   $23.22 
Class R6 Shares*                    
Net Assets Applicable to Class R6 Shares/   N/A    N/A   $32,585,786    N/A 
Shares Outstanding   N/A    N/A    6,291,395    N/A 
Net Asset Value per Share***   N/A    N/A   $5.18    N/A 
Class S Shares*                    
Net Assets Applicable to Class S Shares/  $196,379,157    N/A    N/A    N/A 
Shares Outstanding   23,116,582    N/A    N/A    N/A 
Net Asset Value per Share***  $8.50    N/A    N/A    N/A 

 

See notes to Statement of Assets and Liabilities at the end of the schedule. Amounts designated as "-" are either $0 or have been rounded to $0.

 

The accompanying notes are an integral part of the financial statements. 31

 

   

 

 

Statement of Assets and Liabilities

 

   Total Return   Unconstrained 
   Bond   Bond 
Assets          
Investments at value  $230,814,564   $27,398,255 
Cash   4,765    31 
Cash collateral with futures commission merchant   419,020    – 
Receivable for securities sold   14,214,028    144,466 
Receivable for fund shares sold   152,837    – 
Receivable for interest   1,346,839    105,387 
Receivable for securities lending income   306    1,438 
Receivable from Fund Advisor   6,005    – 
Total Assets   246,958,364    27,649,577 
           
Liabilities          
Payable for securities purchased   6,567,984    451,934 
Payable for fund shares repurchased   1,615,969    32,507 
Accrued expenses   101,874    20,197 
Management fee payable   112,515    17,024 
Distribution fee payable (Class A Shares)   9,912    31 
Distribution fee payable (Class C Shares)   18,081    116 
Fund accounting fee payable   7,683    838 
Directors' and Chief Compliance Officer's fees payable   114    169 
Deferred compensation (see note 3)   94,263    2,842 
Variation margin payable on futures contracts   46,188    – 
Total Liabilities   8,574,583    525,658 
Net Assets  $238,383,781   $27,123,919 
           
Net Assets Represent          
Capital stock at par value  $229,051   $27,344 
Paid-in capital   266,937,813    27,285,510 
Accumulated undistributed (distributions in excess of) net investment income (loss)   (584,413)   (33,862)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions   (32,605,732)   (359,196)
Unrealized appreciation (depreciation) of investments and foreign exchange   4,407,062    204,123 
Net Assets  $238,383,781   $27,123,919 
Investments at Cost  $226,317,188   $27,194,132 
           
Net Asset Value and Maximum Offering Price Per Share          
Class A Shares*          
Net Assets Applicable to Class A Shares/  $57,323,003   $5,658,042 
Shares Outstanding   5,509,656    570,931 
Net Asset Value per Share  $10.40   $9.91 
Sales Charge   0.24    0.23 
Maximum Offering Price**  $10.64   $10.14 
Class C Shares*          
Net Assets Applicable to Class C Shares/  $20,615,420   $1,636,996 
Shares Outstanding   1,987,049    165,762 
Net Asset Value per Share***  $10.37   $9.88 
Class I Shares*          
Net Assets Applicable to Class I Shares/  $159,201,974   $19,828,881 
Shares Outstanding   15,288,945    1,997,747 
Net Asset Value per Share***  $10.41   $9.93 
Class R3 Shares*          
Net Assets Applicable to Class R3 Shares/  $620,369    N/A 
Shares Outstanding   59,627    N/A 
Net Asset Value per Share***  $10.40    N/A 
Class R6 Shares*          
Net Assets Applicable to Class R6 Shares/  $623,015    N/A 
Shares Outstanding   59,830    N/A 
Net Asset Value per Share***  $10.41    N/A 

 

See notes to Statement of Assets and Liabilities at the end of the schedule.

Amounts designated as "-" are either $0 or have been rounded to $0.

 

32 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Statement of Assets and Liabilities

 

*The redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge.

 

**For the Balanced Fund, Common Stock Fund, International Equity Fund, Multi-Asset Income Fund, Small Company Fund and Sustainable Core Opportunities Fund, the maximum offering price is 1000/950 times the net asset value per share. For the Government Securities Fund, Total Return Bond Fund and Unconstrained Bond Fund, the maximum offering price is 1000/977.5 times the net asset value per share. For the Low Duration Bond Fund, the maximum offering price is 1000/990 times the net asset value per share.

 

***The maximum offering price is equal to the net asset value.

 

The accompanying notes are an integral part of the financial statements. 33

 

   

 

 

Statement of Operations

For the Fiscal Six Months Ended May 31, 2017 (Unaudited)

 

       Common   Government   International   Low Duration 
   Balanced   Stock   Securities   Equity   Bond 
Investment Income                         
Dividends  $2,802,050*  $21,338,102*  $11,841   $2,615,333*  $734,809 
Interest   575,183    82,754    2,253,959    5,602    1,919,096 
Securities Lending (Net of lending agent fees)   –    –    –    –    7,963 
Total Income  $3,377,233   $21,420,856   $2,265,800   $2,620,935   $2,661,868 
Expenses                         
Management advisory fee   885,831    5,894,944    415,362    625,591    725,629 
Transfer agent fees (Class A Shares)   199,548    725,856    122,773    158,312    82,237 
Transfer agent fees (Class C Shares)   29,930    52,923    13,747    12,265    – 
Transfer agent fees (Class I Shares)   6,474    218,481    14,759    29,567    4,152 
Transfer agent fees (Class R3 Shares)   –    –    –    –    – 
Transfer agent fees (Class R6 Shares)   –    86    –    –    – 
Transfer agent fees (Class S Shares)   –    –    –    –    22,035 
Custodian fees   19,500    81,050    7,600    30,150    22,300 
Distribution expense (Class A Shares)   337,573    1,693,136    142,685    152,652    112,289 
Distribution expense (Class C Shares)   229,491    428,547    91,127    32,295    – 
Distribution expense (Class R3 Shares)   –    –    –    –    – 
Distribution expense (Class S Shares)   –    –    –    –    530,695 
Accounting and administration services   61,736    376,166    34,083    33,000    59,542 
Auditing fees   15,200    47,150    6,750    8,300    15,250 
Legal fees   6,650    31,750    3,150    4,125    5,350 
Reports and notices to shareholders   8,100    33,000    1,800    7,000    3,350 
Registration and filing fees (Class A Shares)   12,600    18,555    12,631    11,870    10,218 
Registration and filing fees (Class C Shares)   11,364    11,888    8,442    11,095    – 
Registration and filing fees (Class I Shares)   5,810    16,784    9,051    8,411    10,579 
Registration and filing fees (Class R3 Shares)   –    –    –    –    – 
Registration and filing fees (Class R6 Shares)   –    6,898    –    –    – 
Registration and filing fees (Class S Shares)   –    –    –    –    15,188 
Directors' and Chief Compliance Officer's fees and expenses   47,807    278,111    35,929    24,659    64,644 
Other   11,078    40,232    3,112    30,129    2,805 
Total Expenses   1,888,692    9,955,557    923,001    1,179,421    1,686,263 
Expense Reimbursements/Waivers   –    (10,355)   –    –    – 
Net Expenses   1,888,692    9,945,202    923,001    1,179,421    1,686,263 
Net Investment Income (Loss)   1,488,541    11,475,654    1,342,799    1,441,514    975,605 
                          
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions or Translations
Net realized gain (loss) from:                         
Investments   3,771,082    105,990,986    57,401    (1,641,059)   88,348 
Futures contracts   –    –    –    –    (112,803)
Short sales   –    –    (19,766)   –    – 
Foreign currency transactions   (47)   (461)   –    (56,059)   – 
Net realized gain (loss)   3,771,035    105,990,525    37,635    (1,697,118)   (24,455)
Net change in unrealized appreciation (depreciation) during the period:          
Investments   20,947,606    107,389,721    979,846    35,178,032**   3,335,295 
Futures contracts   –    –    –    –    (17,835)
Foreign currency translations   –    –    –    41,335    – 
Net change in unrealized appreciation (depreciation)   20,947,606    107,389,721    979,846    35,219,367    3,317,460 
Net Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions or Translations   24,718,641    213,380,246    1,017,481    33,522,249    3,293,005 
Net Increase (Decrease) in Net Assets from Operations  $26,207,182   $224,855,900   $2,360,280   $34,963,763   $4,268,610 

 

*Net of foreign tax withholding of $4,881 in the Sentinel Balanced Fund, $40,194 in the Sentinel Common Stock Fund, $35,014 in the Sentinel International Equity Fund, $6,600 in the Sentinel Small Company Fund and $9,969 in the Sentinel Sustainable Core Opportunities Fund.
**Net of foreign taxes on unrealized capital gains of $51,265.

 

Amounts designated as "-" are either $0 or have been rounded to $0.

 

34 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Statement of Operations

 

    Multi-Asset   Small   Sustainable Core   Total Return   Unconstrained 
    Income   Company   Opportunities   Bond   Bond 
Investment Income                     
Dividends   $2,869,908   $3,506,548*  $3,439,437*  $1,332,295   $77,721 
Interest    2,408,995    354,559    13,689    3,081,880    197,547 
Securities Lending (Net of lending agent fees)    78,225    –    –    12,083    4,841 
Total Income   $5,357,128   $3,861,107   $3,453,126   $4,426,258   $280,109 
Expenses                          
Management advisory fee    789,559    3,625,568    1,316,144    809,466    99,380 
Transfer agent fees (Class A Shares)    81,370    625,291    235,734    46,668    301 
Transfer agent fees (Class C Shares)    51,764    81,633    –    15,957    139 
Transfer agent fees (Class I Shares)    65,459    148,910    6,694    125,264    474 
Transfer agent fees (Class R3 Shares)    –    –    –    5    – 
Transfer agent fees (Class R6 Shares)    –    212    –    5    – 
Transfer agent fees (Class S Shares)    –    –    –    –    – 
Custodian fees    18,950    44,325    17,900    12,565    6,075 
Distribution expense (Class A Shares)    149,589    849,773    436,649    65,995    139 
Distribution expense (Class C Shares)    490,896    546,322    –    127,148    840 
Distribution expense (Class R3 Shares)    –    –    –    –+   – 
Distribution expense (Class S Shares)    –    –    –    –    – 
Accounting and administration services    54,626    206,988    69,426    56,096    4,893 
Auditing fees    20,500    50,500    16,800    12,800    6,150 
Legal fees    7,150    24,600    6,450    2,890    475 
Reports and notices to shareholders    12,000    54,750    11,400    10,025    650 
Registration and filing fees (Class A Shares)    20,424    21,909    18,937    6,554    6,878 
Registration and filing fees (Class C Shares)    16,058    12,422    –    6,978    6,765 
Registration and filing fees (Class I Shares)    10,238    22,668    11,890    11,523    7,409 
Registration and filing fees (Class R3 Shares)    –    –    –    6,715    – 
Registration and filing fees (Class R6 Shares)    –    6,853    –    6,715    – 
Registration and filing fees (Class S Shares)    –    –    –    –    – 
Directors' and Chief Compliance Officer's fees and expenses    38,920    170,440    44,352    35,387    2,850 
Other    9,195    21,433    4,211    12,637    3,929 
Total Expenses    1,836,698    6,514,597    2,196,587    1,371,393    147,347 
Expense Reimbursements/Waivers    –    (8,115)   –    (39,660)   – 
Net Expenses    1,836,698    6,506,482    2,196,587    1,331,733    147,347 
Net Investment Income (Loss)    3,520,430    (2,645,375)   1,256,539    3,094,525    132,762 
                           
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions or Translations 
Net realized gain (loss) from:                          
Investments    (451,430)   103,548,997    5,632,599    2,530,731    6,691 
Futures contracts    –    –    –    (566,084)   51,744 
Short sales    –    –    –    –    – 
Foreign currency transactions    (893)   –    158    –    – 
Net realized gain (loss)    (452,323)   103,548,997    5,632,757    1,964,647    58,435 
Net change in unrealized appreciation (depreciation) during the period: 
Investments    10,093,957    (27,410,155)   33,097,078    3,278,861    343,746 
Futures contracts    –    –    –    (206,007)   (22,037)
Foreign currency translations    1,450    –    –    –    – 
Net change in unrealized appreciation (depreciation)    10,095,407    (27,410,155)   33,097,078    3,072,854    321,709 
Net Realized and Unrealized Gain (Loss) on Investments, Futures Contracts and Foreign Currency Transactions or Translations    9,643,084    76,138,842    38,729,835    5,037,501    380,144 
Net Increase (Decrease) in Net Assets from Operations   $13,163,514   $73,493,467   $39,986,374   $8,132,026   $512,906 

 

+ The Sentinel Total Return Bond Class R3 did not incur any distribution expense for the fiscal six months ended May 31, 2017 because NLV Financial Corporation and its affiliates owned 100% of the shares outstanding for the entire the period and do not get charged a distribution fee.

 

The accompanying notes are an integral part of the financial statements. 35

 

   

 

 

Statement of Changes in Net Assets

 

   Balanced   Common Stock 
   For the Fiscal       For the Fiscal     
   Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal 
   05/31/17   Year Ended   05/31/17   Year Ended 
   (Unaudited)   11/30/16   (Unaudited)   11/30/16 
Increase (Decrease) in Net Assets from Operations                    
Net investment income (loss)  $1,488,541   $3,476,233   $11,475,654   $28,782,872 
Net realized gain (loss) on investments, futures contracts and foreign currency transactions   3,771,035    2,775,604    105,990,525    115,779,861 
Net change in unrealized appreciation (depreciation)   20,947,606    8,122,265    107,389,721    5,723,736 
Net increase (decrease) in net assets from operations   26,207,182    14,374,102    224,855,900    150,286,469 
                     
Distributions to Shareholders                    
From net investment income                    
Class A Shares   (1,849,060)   (5,903,448)   (9,238,312)   (35,777,405)
Class C Shares   (141,516)   (557,296)   (276,540)   (1,690,016)
Class I Shares   (145,484)   (306,472)   (4,670,976)   (19,023,933)
Class R6 Shares   –    –    (229,282)   (588,231)
Class S Shares   –    –    –    – 
From net realized gain on investments, futures contracts and foreign currency transactions      
Class A Shares   (1,736,894)   (8,375,703)   (77,329,736)   (88,022,127)
Class C Shares   (284,357)   (1,138,389)   (5,018,041)   (5,826,909)
Class I Shares   (102,948)   (402,692)   (31,927,618)   (42,756,022)
Class R6 Shares   –    –    (1,506,542)   (1,116,259)
Total distributions to shareholders   (4,260,259)   (16,684,000)   (130,197,047)   (194,800,902)
                     
From Capital Share Transactions (see Note 4)                    
Net proceeds from sales of shares                    
Class A Shares   14,839,603    29,691,528    38,955,888    79,630,789 
Class C Shares   6,188,067    12,858,314    7,067,992    8,735,036 
Class I Shares   9,101,255    7,158,331    73,639,745    95,152,331 
Class R6 Shares   –    –    14,760,482    21,445,402 
Class S Shares   –    –    –    – 
Net asset value of shares in reinvestment of dividends and distributions           
Class A Shares   3,407,640    13,537,834    76,666,257    108,807,856 
Class C Shares   399,253    1,594,901    5,037,333    7,117,912 
Class I Shares   210,762    607,739    29,692,823    49,976,190 
Class R6 Shares   –    –    1,735,824    1,704,490 
Class S Shares   –    –    –    – 
    34,146,580    65,448,647    247,556,344    372,570,006 
Less: Payments for shares reacquired (less any redemption fees, if applicable)           
Class A Shares   (25,595,688)   (39,491,955)   (163,987,750)   (227,322,184)
Class C Shares   (5,154,936)   (6,674,997)   (14,678,412)   (20,322,699)
Class I Shares   (3,740,621)   (5,727,660)   (103,291,424)   (266,012,904)
Class R6 Shares   –    –    (10,881,585)   (11,518,479)
Class S Shares   –    –    –    – 
Increase (decrease) in net assets from capital stock transactions   (344,665)   13,554,035    (45,282,827)   (152,606,260)
Total Increase (Decrease) in Net Assets for period   21,062,258    11,244,137    49,376,026    (197,120,693)
Net Assets: Beginning of period  $322,453,507   $311,209,370   $2,016,643,657   $2,213,764,350 
Net Assets: End of period  $344,055,765   $322,453,507   $2,066,019,683   $2,016,643,657 
Accumulated Undistributed Net Investment Income (Loss)  $(56,893)  $590,626   $3,839,096   $6,778,552 

 

Amounts designated as "-" are either $0 or have been rounded to $0.

 

36 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Statement of Changes in Net Assets

 

    Government Securities   International Equity   Low Duration Bond 
    For the Fiscal       For the Fiscal       For the Fiscal     
    Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal 
    05/31/17   Year Ended   05/31/17   Year Ended   05/31/17   Year Ended 
    (Unaudited)   11/30/16   (Unaudited)   11/30/16   (Unaudited)   11/30/16 
Increase (Decrease) in Net Assets from Operations                         
Net investment income (loss)   $1,342,799   $3,654,696   $1,441,514   $1,716,938   $975,605   $6,178,535 
Net realized gain (loss) on investments, futures contracts and foreign currency transactions    37,635    8,407    (1,697,118)   (534,656)   (24,455)   (5,958,348)
Net change in unrealized appreciation (depreciation)    979,846    (2,350,516)   35,219,367    (9,079,558)   3,317,460    1,339,940 
Net increase (decrease) in net assets from operations    2,360,280    1,312,587    34,963,763    (7,897,276)   4,268,610    1,560,127 
                                
Distributions to Shareholders                               
From net investment income                               
Class A Shares    (1,929,630)   (4,307,434)   (764,366)   (813,762)   (507,120)   (2,130,933)
Class C Shares    (171,419)   (399,329)   –    –    –    – 
Class I Shares    (344,420)   (870,054)   (486,213)   (163,018)   (147,978)   (860,829)
Class R6 Shares    –    –    –    –    –    – 
Class S Shares    –    –    –    –    (1,090,718)   (4,922,936)
From net realized gain on investments, futures contracts and foreign currency transactions      
Class A Shares    –    –    –    (3,278,878)   –    – 
Class C Shares    –    –    –    (146,299)   –    – 
Class I Shares    –    –    –    (435,123)   –    – 
Class R6 Shares    –    –    –    –    –    – 
Total distributions to shareholders    (2,445,469)   (5,576,817)   (1,250,579)   (4,837,080)   (1,745,816)   (7,914,698)
                                
From Capital Share Transactions (see Note 4)                               
Net proceeds from sales of shares                               
Class A Shares    5,600,843    24,614,152    11,070,673    25,111,407    6,073,250    19,495,835 
Class C Shares    138,842    2,068,296    1,501,871    2,310,222    –    – 
Class I Shares    5,801,134    21,195,509    25,126,832    41,542,080    9,355,701    5,124,239 
Class R6 Shares    –    –    –    –    –    – 
Class S Shares    –    –    –    –    7,509,326    49,214,306 
Net asset value of shares in reinvestment of dividends and distributions           
Class A Shares    1,545,015    3,325,630    688,604    3,919,623    449,467    1,923,945 
Class C Shares    134,366    307,980    –    142,064    –    – 
Class I Shares    316,882    800,621    468,087    545,916    138,089    810,670 
Class R6 Shares    –    –    –    –    –    – 
Class S Shares    –    –    –    –    1,040,554    4,718,391 
     13,537,082    52,312,188    38,856,067    73,571,312    24,566,387    81,287,386 
Less: Payments for shares reacquired (less any redemption fees, if applicable)           
Class A Shares    (23,571,518)   (60,102,480)   (16,640,891)   (17,785,789)   (19,578,949)   (39,542,564)
Class C Shares    (5,217,713)   (6,635,019)   (1,200,391)   (835,594)   –    – 
Class I Shares    (7,631,758)   (27,001,119)   (11,351,499)   (14,105,725)   (9,618,434)   (35,348,983)
Class R6 Shares    –    –    –    –    –    – 
Class S Shares    –    –    –    –    (48,986,853)   (157,013,852)
Increase (decrease) in net assets from capital stock transactions    (22,883,907)   (41,426,430)   9,663,286    40,844,204    (53,617,849)   (150,618,013)
Total Increase (Decrease) in Net Assets for period    (22,969,096)   (45,690,660)   43,376,470    28,109,848    (51,095,055)   (156,972,584)
Net Assets: Beginning of period   $198,648,391   $244,339,051   $161,020,363   $132,910,515   $351,102,297   $508,074,881 
Net Assets: End of period   $175,679,295   $198,648,391   $204,396,833   $161,020,363   $300,007,242   $351,102,297 
Accumulated Undistributed Net Investment Income (Loss)   $(1,107,352)  $(4,682)  $666,342   $475,407   $(927,130)  $(156,919)

 

The accompanying notes are an integral part of the financial statements. 37

 

   

 

Statement of Changes in Net Assets

 

   Multi-Asset Income   Small Company 
   For the Fiscal       For the Fiscal     
   Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal 
   05/31/17   Year Ended   05/31/17   Year Ended 
   (Unaudited)   11/30/16   (Unaudited)   11/30/16 
Increase (Decrease) in Net Assets from Operations                    
Net investment income (loss)  $3,520,430   $7,900,022   $(2,645,375)  $(3,537,031)
Net realized gain (loss) on investments, futures contracts and foreign currency transactions   (452,323)   2,816,966    103,548,997    89,651,921 
Net change in unrealized appreciation (depreciation)   10,095,407    2,167,586    (27,410,155)   34,009,436 
Net increase (decrease) in net assets from operations   13,163,514    12,884,574    73,493,467    120,124,326 
                     
Distributions to Shareholders                    
From net investment income                    
Class A Shares   (1,536,671)   (3,804,134)   –    – 
Class C Shares   (997,921)   (2,493,853)   –    – 
Class I Shares   (1,118,618)   (1,952,874)   –    – 
Class R3 Shares   –    –    –    – 
Class R6 Shares   –    –    –    – 
From net realized gain on investments, futures contracts and foreign currency transactions      
Class A Shares   (897,387)   (8,370,582)   (54,248,125)   (99,287,043)
Class C Shares   (798,538)   (7,183,716)   (13,229,418)   (24,962,262)
Class I Shares   (597,175)   (3,316,347)   (20,710,154)   (34,832,569)
Class R6 Shares   –    –    (1,025,672)   (106,313)
Return of capital                    
Class A Shares   –    –    –    – 
Class C Shares   –    –    –    – 
Class I Shares   –    –    –    – 
Class R3 Shares   –    –    –    – 
Class R6 Shares   –    –    –    – 
Total distributions to shareholders   (5,946,310)   (27,121,506)   (89,213,369)   (159,188,187)
                     
From Capital Share Transactions (see Note 4)                    
Net proceeds from sales of shares                    
Class A Shares   12,652,004    32,131,589    44,804,972    61,857,550 
Class C Shares   4,727,564    16,899,594    11,214,674    9,681,443 
Class I Shares   24,213,924    39,644,173    118,757,522    81,203,549 
Class R3 Shares   –    –    –    – 
Class R6 Shares   –    –    20,728,802    12,035,697 
Net asset value of shares issued in share reorganizations (see Note 5)           
Class A Shares   –    –    –    97,558,873 
Class C Shares   –    –    –    8,942,615 
Class I Shares   –    –    –    5,382,625 
Net asset value of shares in reinvestment of dividends and distributions      
Class A Shares   2,213,816    11,049,560    50,274,452    91,333,636 
Class C Shares   1,499,795    8,013,354    12,714,176    23,881,812 
Class I Shares   1,247,189    3,640,014    16,678,996    27,513,172 
Class R3 Shares   –    –    –    – 
Class R6 Shares   –    –    1,025,672    106,313 
    46,554,292    111,378,284    276,199,266    419,497,285 
Less: Payments for shares reacquired (less any redemption fees, if applicable)      
Class A Shares   (30,045,853)   (38,002,917)   (96,288,395)   (140,182,495)
Class C Shares   (22,632,985)   (22,793,696)   (19,750,616)   (26,656,802)
Class I Shares   (27,672,396)   (20,111,918)   (56,820,229)   (71,757,069)
Class R3 Shares   –    –    –    – 
Class R6 Shares   –    –    (2,426,258)   (902,962)
Increase (decrease) in net assets from capital stock   (33,796,942)   30,469,753    100,913,768    179,997,957 
Total Increase (Decrease) in Net Assets for period   (26,579,738)   16,232,821    85,193,866    140,934,096 
Net Assets: Beginning of period  $302,660,434   $286,427,613   $1,067,131,879   $926,197,783 
Net Assets: End of period  $276,080,696   $302,660,434   $1,152,325,745   $1,067,131,879 
Accumulated Undistributed Net Investment Income (Loss)  $(220,159)  $(87,379)  $(6,038,729)  $(3,393,354)

 

Amounts designated as "-" are either $0 or have been rounded to $0.

 

38 The accompanying notes are an integral part of the financial statements.

 

   

 

 

Statement of Changes in Net Assets

 

    Sustainable Core Opportunities   Total Return Bond   Unconstrained Bond 
    For the Fiscal       For the Fiscal       For the Fiscal     
    Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal   Six Months Ended   For the Fiscal 
    05/31/17   Year Ended   05/31/17   Year Ended   05/31/17   Year Ended 
    (Unaudited)   11/30/16   (Unaudited)   11/30/16   (Unaudited)   11/30/16 
Increase (Decrease) in Net Assets from Operations                         
Net investment income (loss)   $1,256,539   $2,776,135   $3,094,525   $10,924,802   $132,762   $315,986 
Net realized gain (loss) on investments, futures contracts and foreign currency transactions    5,632,757    4,319,379    1,964,647    (12,253,971)   58,435    (357,499)
Net change in unrealized appreciation (depreciation)    33,097,078    14,727,631    3,072,854    12,045,484    321,709    555,785 
Net increase (decrease) in net assets from operations    39,986,374    21,823,145    8,132,026    10,716,315    512,906    514,272 
                                
Distributions to Shareholders                               
From net investment income                               
Class A Shares    (2,377,474)   (4,474,311)   (780,998)   (3,815,602)   (29,130)   (71,662)
Class C Shares    –    –    (191,045)   (497,955)   (4,386)   (12,684)
Class I Shares    (221,497)   (337,144)   (2,633,231)   (8,927,701)   (132,101)   (300,800)
Class R3 Shares    –    –    (7,283)   (13,448)   –    – 
Class R6 Shares    –    –    (7,956)   (14,632)   –    – 
From net realized gain on investments, futures contracts and foreign currency transactions      
Class A Shares    (4,101,378)   (2,179,023)   –    –    –    (8,936)
Class C Shares    –    –    –    –    –    (2,951)
Class I Shares    (279,086)   (143,886)   –    –    –    (33,721)
Class R6 Shares    –    –    –    –    –    – 
Return of capital                               
Class A Shares    –    –    –    –    –    – 
Class C Shares    –    –    –    –    –    – 
Class I Shares    –    –    –    –    –    – 
Class R3 Shares    –    –    –    –    –    – 
Class R6 Shares    –    –    –    –    –    – 
Total distributions to shareholders    (6,979,435)   (7,134,364)   (3,620,513)   (13,269,338)   (165,617)   (430,754)
                                
From Capital Share Transactions (see Note 4)                               
Net proceeds from sales of shares                               
Class A Shares    4,164,722    8,022,869    8,629,313    41,880,984    429,938    35,764 
Class C Shares    –    –    482,851    4,139,515    52,274    70,000 
Class I Shares    8,073,499    3,820,607    32,240,827    128,444,099    –    466,495 
Class R3 Shares    –    –    –    –    –    – 
Class R6 Shares    –    –    –    –    –    – 
Net asset value of shares issued in share reorganizations (see Note 5)      
Class A Shares    –    116,823,960    –    –    –    – 
Class C Shares    –    –    –    –    –    – 
Class I Shares    –    5,888,166    –    –    –    – 
Net asset value of shares in reinvestment of dividends and distributions           
Class A Shares    6,311,404    6,451,037    683,099    3,566,841    29,130    80,597 
Class C Shares    –    –    182,650    480,800    4,386    15,636 
Class I Shares    412,961    437,802    2,109,823    6,633,825    130,917    331,845 
Class R3 Shares    –    –    7,283    13,448    –    – 
Class R6 Shares    –    –    7,956    14,632    –    – 
     18,962,586    141,444,441    44,343,802    185,174,144    646,645    1,000,337 
Less: Payments for shares reacquired (less any redemption fees, if applicable)           
Class A Shares    (23,816,006)   (29,175,550)   (45,355,878)   (268,245,578)   (800)   (5,803)
Class C Shares    –    –    (11,286,050)   (15,791,469)   (88,959)   (93,167)
Class I Shares    (3,907,189)   (4,153,690)   (158,315,872)   (326,207,389)   (274,923)   (30,345)
Class R3 Shares    –    –    –    –    –    – 
Class R6 Shares    –    –    –    –    –    – 
Increase (decrease) in net assets from capital stock    (8,760,609)   108,115,201    (170,613,998)   (425,070,292)   281,963    871,022 
Total Increase (Decrease) in Net Assets for period    24,246,330    122,803,982    (166,102,485)   (427,623,315)   629,252    954,540 
Net Assets: Beginning of period   $362,592,260   $239,788,278   $404,486,266   $832,109,581   $26,494,667   $25,540,127 
Net Assets: End of period   $386,838,590   $362,592,260   $238,383,781   $404,486,266   $27,123,919   $26,494,667 
Accumulated Undistributed Net Investment Income (Loss)   $1,190,234   $2,532,666   $(584,413)  $(58,425)  $(33,862)  $(1,007)

 

The accompanying notes are an integral part of the financial statements. 39

 

   

 

 

Financial Highlights

 

          Income from Investment Operations   Less Distributions     
              Net gains or                     
      Net asset   Net   losses on       Dividends   Distributions         
Fund/  Fiscal year  value,   investment   securities (both   Total from   (from net   (from       Net asset 
Share  (period  beginning   income   realized and   investment   investment   realized   Total   value, end 
Class  ended)  of period   (loss)   unrealized)   operations   income)   gains)   distributions   of period 
Balanced Class A                                        
   11/30/12  $17.10   $0.23   $1.77   $2.00   $0.30   $0.77   $1.07   $18.03 
   11/30/13   18.03    0.23    2.91    3.14    0.26    0.68    0.94    20.23 
   11/30/14   20.23    0.26    1.50    1.76    0.26    0.75    1.01    20.98 
   11/30/15   20.98    0.43    (0.35)   0.08    0.30    0.89    1.19    19.87 
   11/30/16   19.87    0.23    0.66    0.89    0.44    0.64    1.08    19.68 
   05/31/17(U)   19.68    0.10    1.51    1.61    0.14    0.13    0.27    21.02 
Balanced Class C                                        
   11/30/12   17.15    0.08    1.78    1.86    0.17    0.77    0.94    18.07 
   11/30/13   18.07    0.08    2.91    2.99    0.11    0.68    0.79    20.27 
   11/30/14   20.27    0.11    1.51    1.62    0.10    0.75    0.85    21.04 
   11/30/15   21.04    0.28    (0.35)   (0.07)   0.15    0.89    1.04    19.93 
   11/30/16   19.93    0.08    0.66    0.74    0.30    0.64    0.94    19.73 
   05/31/17(U)   19.73    0.02    1.51    1.53    0.06    0.13    0.19    21.07 
Balanced Class I                                        
   11/30/12   17.04    0.23    1.76    1.99    0.31    0.77    1.08    17.95 
   11/30/13   17.95    0.28    2.89    3.17    0.29    0.68    0.97    20.15 
   11/30/14   20.15    0.31    1.50    1.81    0.31    0.75    1.06    20.90 
   11/30/15   20.90    0.47    (0.34)   0.13    0.36    0.89    1.25    19.78 
   11/30/16   19.78    0.27    0.65    0.92    0.49    0.64    1.13    19.57 
   05/31/17(U)   19.57    0.13    1.49    1.62    0.17    0.13    0.30    20.89 
Common Stock Class A                                        
   11/30/12   31.33    0.38    3.93    4.31    0.37    0.43    0.80    34.84 
   11/30/13   34.84    0.44    9.50    9.94    0.43    1.04    1.47    43.31 
   11/30/14   43.31    0.56    4.97    5.53    0.58    5.47    6.05    42.79 
   11/30/15   42.79    1.01    (0.25)   0.76    0.45    0.02    0.47    43.08 
   11/30/16   43.08    0.53    2.43    2.96    1.08    2.68    3.76    42.28 
   05/31/17(U)   42.28    0.23    4.45    4.68    0.29    2.46    2.75    44.21 
Common Stock Class C                                        
   11/30/12   30.35    0.09    3.81    3.90    0.12    0.43    0.55    33.70 
   11/30/13   33.70    0.12    9.18    9.30    0.14    1.04    1.18    41.82 
   11/30/14   41.82    0.21    4.78    4.99    0.19    5.47    5.66    41.15 
   11/30/15   41.15    0.64    (0.24)   0.40    0.17    0.02    0.19    41.36 
   11/30/16   41.36    0.21    2.33    2.54    0.78    2.68    3.46    40.44 
   05/31/17(U)   40.44    0.06    4.24    4.30    0.13    2.46    2.59    42.15 
Common Stock Class I                                        
   11/30/12   31.33    0.49    3.94    4.43    0.48    0.43    0.91    34.85 
   11/30/13   34.85    0.56    9.50    10.06    0.56    1.04    1.60    43.31 
   11/30/14   43.31    0.68    4.97    5.65    0.73    5.47    6.20    42.76 
   11/30/15   42.76    1.12    (0.25)   0.87    0.55    0.02    0.57    43.06 
   11/30/16   43.06    0.64    2.43    3.07    1.19    2.68    3.87    42.26 
   05/31/17(U)   42.26    0.29    4.45    4.74    0.35    2.46    2.81    44.19 
Common Stock Class R6                                        
   11/30/15(A)   43.01    1.07    (0.51)   0.56    0.46    –    0.46    43.11 
   11/30/16   43.11    0.70    2.41    3.11    1.22    2.68    3.90    42.32 
   05/31/17(U)   42.32    0.31    4.46    4.77    0.37    2.46    2.83    44.26 

 

40 See notes to Financial Highlights at the end of the schedule.

 

 

 

  

Financial Highlights

 

                  Ratios/Supplemental Data         
                  Ratio of expenses to average       Ratio of net investment     
          Net assets at       net assets before   Ratio of net   income (loss) to average net     
Fund/  Fiscal year  Total   end of   Ratio of expenses   contractual and voluntary   investment income   assets before contractual and   Portfolio 
Share  (period  return   period (000   to average net   expense reimbursements   (loss) to average   voluntary expense   turnover 
Class  ended)  (%)*   omitted)   assets (%)   (%)**   net assets (%)   reimbursements (%)**   rate (%) 
Balanced Class A                             
   11/30/12   12.30   $221,036    1.11    1.11    1.30    1.30    146 
   11/30/13   18.15    267,627    1.06    1.06    1.22    1.22    154 
   11/30/14   9.10    278,385    1.07    1.07    1.29    1.29    94 
   11/30/15   0.56    263,276    1.04    1.04    2.17^    2.17^    86 
   11/30/16   4.75    264,910    1.01    1.01    1.20    1.20    45 
   05/31/17(U)   8.25++    275,315    1.04+    1.04+    0.98+    0.98+    13++ 
Balanced Class C                             
   11/30/12   11.30    16,635    1.94    1.94    0.48    0.48    146 
   11/30/13   17.19    30,647    1.86    1.86    0.42    0.42    154 
   11/30/14   8.34    32,002    1.82    1.82    0.53    0.53    94 
   11/30/15   (0.23)   35,344    1.82    1.82    1.39^    1.39^    86 
   11/30/16   3.91    43,066    1.78    1.78    0.43    0.43    45 
   05/31/17(U)   7.83++    47,511    1.81+    1.81+    0.21+    0.21+    13++ 
Balanced Class I                             
   11/30/12   12.25    5,748    1.11    1.11    1.31    1.31    146 
   11/30/13   18.46    20,468    0.77    0.77    1.50    1.50    154 
   11/30/14   9.43    17,062    0.80    0.80    1.55    1.55    94 
   11/30/15   0.79    12,589    0.81    0.81    2.39^    2.39^    86 
   11/30/16   4.94    14,477    0.81    0.81    1.41    1.41    45 
   05/31/17(U)   8.34++    21,230    0.77+    0.77+    1.26+    1.26+    13++ 
Common Stock Class A                             
   11/30/12   13.99    1,193,721    1.09    1.09    1.12    1.12    8 
   11/30/13   29.53    1,454,446    1.03    1.03    1.15    1.15    12 
   11/30/14   13.30    1,577,546    1.00    1.00    1.28    1.28    19 
   11/30/15   1.79    1,416,147    0.99    0.99    2.36^    2.36^    11 
   11/30/16   7.53    1,350,861    1.00    1.00    1.32    1.32    8 
   05/31/17(U)   11.63++    1,365,051    1.03+    1.03+    1.08+    1.08+    5++ 
Common Stock Class C                             
   11/30/12   13.03    51,460    1.93    1.93    0.28    0.28    8 
   11/30/13   28.47    78,259    1.84    1.84    0.32    0.32    12 
   11/30/14   12.40    90,784    1.79    1.79    0.50    0.50    19 
   11/30/15   0.98    89,890    1.78    1.78    1.57^    1.57^    11 
   11/30/16   6.71    83,246    1.79    1.79    0.54    0.54    8 
   05/31/17(U)   11.17++    84,483    1.83+    1.83+    0.27+    0.27+    5++ 
Common Stock Class I                             
   11/30/12   14.38    684,658    0.75    0.75    1.47    1.47    8 
   11/30/13   29.93    941,223    0.72    0.72    1.45    1.45    12 
   11/30/14   13.61    932,941    0.72    0.72    1.55    1.55    19 
   11/30/15   2.07    689,502    0.71    0.71    2.63^    2.63^    11 
   11/30/16   7.84    552,611    0.72    0.72    1.60    1.60    8 
   05/31/17(U)   11.79++    579,525    0.75+    0.75+    1.36+    1.36+    5++ 
Common Stock Class R6                             
   11/30/15(A)   1.31++    18,225    0.61+    1.76+    2.65+^    1.50+^    11++ 
   11/30/16   7.92    29,927    0.65    0.72    1.72    1.65    8 
   05/31/17(U)   11.84++    36,961    0.65+    0.72+    1.48+    1.41+    5++ 

 

The accompanying notes are an integral part of the financial statements. 41

 

 

 

 

Financial Highlights

 

          Income from Investment Operations    Less Distributions         
              Net gains or                         
      Net asset   Net   losses on       Dividends   Distributions             
Fund/  Fiscal year  value,   investment   securities (both   Total from   (from net   (from           Net asset 
Share  (period  beginning   income   realized and   investment   investment   realized   Return of   Total   value, end 
Class  ended)  of period   (loss)   unrealized)   operations   income)   gains)   capital   distributions   of period 
Government Securities Class A                                       
   11/30/12  $10.72   $0.14   $0.28   $0.42   $0.31   $–   $–   $0.31   $10.83 
   11/30/13   10.83    0.16    (0.66)   (0.50)   0.26    0.03    –    0.29    10.04 
   11/30/14   10.04    0.18    0.17    0.35    0.26    –    –    0.26    10.13 
   11/30/15   10.13    0.18    (0.10)   0.08    0.24    –    –    0.24    9.97 
   11/30/16   9.97    0.16    (0.13)   0.03    0.25    –    –    0.25    9.75 
   05/31/17(U)   9.75    0.07    0.06    0.13    0.13    –    –    0.13    9.75 
Government Securities Class C                                       
   11/30/12   10.72    0.05    0.30    0.35    0.23    –    –    0.23    10.84 
   11/30/13   10.84    0.08    (0.68)   (0.60)   0.17    0.03    –    0.20    10.04 
   11/30/14   10.04    0.10    0.17    0.27    0.17    –    –    0.17    10.14 
   11/30/15   10.14    0.10    (0.11)   (0.01)   0.15    –    –    0.15    9.98 
   11/30/16   9.98    0.08    (0.13)   (0.05)   0.17    –    –    0.17    9.76 
   05/31/17(U)   9.76    0.03    0.06    0.09    0.09    –    –    0.09    9.76 
Government Securities Class I                                       
   11/30/12   10.72    0.16    0.28    0.44    0.33    –    –    0.33    10.83 
   11/30/13   10.83    0.19    (0.67)   (0.48)   0.28    0.03    –    0.31    10.04 
   11/30/14   10.04    0.21    0.16    0.37    0.28    –    –    0.28    10.13 
   11/30/15   10.13    0.20    (0.10)   0.10    0.26    –    –    0.26    9.97 
   11/30/16   9.97    0.19    (0.14)   0.05    0.27    –    –    0.27    9.75 
   05/31/17(U)   9.75    0.08    0.06    0.14    0.14    –    –    0.14    9.75 
International Equity Class A                                         
   11/30/12   15.03    0.18    0.98    1.16    0.16    –    –    0.16    16.03 
   11/30/13   16.03    0.16    4.13    4.29    0.14    –    –    0.14    20.18 
   11/30/14   20.18    0.25    (0.61)   (0.36)   0.21    –    –    0.21    19.61 
   11/30/15   19.61    0.13    0.47    0.60    0.34    2.95    –    3.29    16.92 
   11/30/16   16.92    0.18    (0.97)   (0.79)   0.12    0.49    –    0.61    15.52 
   05/31/17(U)   15.52    0.13    3.15    3.28    0.10    –    –    0.10    18.70 
International Equity Class C                                         
   11/30/12   14.59    (0.06)   0.96    0.90    –    –    –    –    15.49 
   11/30/13   15.49    (0.11)   3.97    3.86    0.01    –    –    0.01    19.34 
   11/30/14   19.34    (0.04)   (0.59)   (0.63)   –    –    –    –    18.71 
   11/30/15   18.71    (0.10)   0.47    0.37    0.07    2.95    –    3.02    16.06 
   11/30/16   16.06    (0.01)   (0.90)   (0.91)   –    0.49    –    0.49    14.66 
   05/31/17(U)   14.66    0.03    2.98    3.01    –    –    –    –    17.67 
International Equity Class I                                         
   11/30/12   14.99    0.26    0.98    1.24    0.24    –    –    0.24    15.99 
   11/30/13   15.99    0.26    4.11    4.37    0.23    –    –    0.23    20.13 
   11/30/14   20.13    0.38    (0.65)   (0.27)   0.33    –    –    0.33    19.53 
   11/30/15   19.53    0.18    0.47    0.65    0.44    2.95    –    3.39    16.79 
   11/30/16   16.79    0.23    (0.95)   (0.72)   0.18    0.49    –    0.67    15.40 
   05/31/17(U)   15.40    0.17    3.10    3.27    0.18    –    –    0.18    18.49 

 

42 See notes to Financial Highlights at the end of the schedule.

 

 

 

  

Financial Highlights

 

                          Ratios/Supplemental Data              
                          Ratio of expenses to average           Ratio of net investment        
              Net assets at         net assets before     Ratio of net     income (loss) to average net        
Fund/   Fiscal year   Total     end of     Ratio of expenses     contractual and voluntary     investment income     assets before contractual and     Portfolio  
Share   (period   return     period (000     to average net     expense reimbursements     (loss) to average     voluntary expense     turnover  
Class   ended)   (%)*     omitted)     assets (%)     (%)**     net assets (%)     reimbursements (%)**     rate (%)  
Government Securities Class A                                                  
    11/30/12     3.94     $ 791,599       0.81       0.81       1.29       1.29       581  
    11/30/13     (4.75 )     429,416       0.83       0.83       1.54       1.54       795  
    11/30/14     3.50       268,380       0.92       0.92       1.80       1.80       161  
    11/30/15     0.77       189,623       0.96       0.96       1.76       1.76       150  
    11/30/16     0.24       154,133       0.91       0.91       1.63       1.63       59  
    05/31/17(U)     1.36 ++     137,660       0.94 +     0.94 +     1.52 +     1.52 +     21 ++
Government Securities Class C                                                  
    11/30/12     3.26       120,709       1.59       1.59       0.50       0.50       581  
    11/30/13     (5.61 )     58,371       1.63       1.63       0.73       0.73       795  
    11/30/14     2.73       35,387       1.73       1.73       0.99       0.99       161  
    11/30/15     (0.07 )     25,668       1.74       1.74       0.98       0.98       150  
    11/30/16     (0.56 )     20,954       1.72       1.72       0.82       0.82       59  
    05/31/17(U)     0.94 ++     15,983       1.80 +     1.80 +     0.65 +     0.65 +     21 ++
Government Securities Class I                                                  
    11/30/12     4.21       145,869       0.57       0.57       1.52       1.52       581  
    11/30/13     (4.51 )     70,078       0.60       0.60       1.76       1.76       795  
    11/30/14     3.73       50,493       0.68       0.68       2.05       2.05       161  
    11/30/15     0.99       29,048       0.73       0.73       1.98       1.98       150  
    11/30/16     0.44       23,562       0.68       0.68       1.88       1.88       59  
    05/31/17(U)     1.45 ++     22,036       0.75 +     0.75 +     1.72 +     1.72 +     21 ++
International Equity Class A                                                  
    11/30/12     7.84       106,173       1.49       1.49       1.17       1.17       37  
    11/30/13     26.93       122,646       1.44       1.44       0.91       0.91       52  
    11/30/14     (1.81 )     115,216       1.41       1.41       1.22       1.22       50  
    11/30/15     4.49       113,212       1.41       1.41       0.76       0.76       55  
    11/30/16     (4.81 )     114,616       1.36       1.36       1.11       1.11       36  
    05/31/17(U)     21.29 ++     132,725       1.38 +     1.38 +     1.50 +     1.50 +     16 ++
International Equity Class C                                                  
    11/30/12     6.17       2,953       3.05       3.05       (0.40 )     (0.40 )     37  
    11/30/13     24.92       3,634       3.04       3.04       (0.66 )     (0.66 )     52  
    11/30/14     (3.26 )     3,581       2.86       2.86       (0.23 )     (0.23 )     50  
    11/30/15     3.14       4,732       2.70       2.70       (0.60 )     (0.60 )     55  
    11/30/16     (5.82 )     5,876       2.49       2.49       (0.04 )     (0.04 )     36  
    05/31/17(U)     20.53 ++     7,392       2.60 +     2.60 +     0.32 +     0.32 +     16 ++
International Equity Class I                                                  
    11/30/12     8.45       27,887       0.94       0.94       1.72       1.72       37  
    11/30/13     27.64       34,561       0.89       0.89       1.48       1.48       52  
    11/30/14     (1.39 )     10,997       0.92       0.92       1.91       1.91       50  
    11/30/15     4.89       14,967       1.02       1.02       1.05       1.05       55  
    11/30/16     (4.41 )     40,528       0.99       0.99       1.45       1.45       36  
    05/31/17(U)     21.47 ++     64,280       1.01 +     1.01 +     2.06 +     2.06 +     16 ++

 

The accompanying notes are an integral part of the financial statements. 43

 

 

 

  

Financial Highlights

 

          Income from Investment Operations   Less Distributions     
              Net gains or                     
      Net asset   Net   losses on       Dividends   Distributions         
Fund/  Fiscal year  value,   investment   securities (both   Total from   (from net   (from       Net asset 
Share  (period  beginning   income   realized and   investment   investment   realized   Total   value, end 
Class  ended)  of period   (loss)   unrealized)   operations   income)   gains)   distributions   of period 
Low Duration Bond Class A                                    
   11/30/12  $9.20   $0.06   $(0.02)  $0.04   $0.18   $–   $0.18   $9.06 
   11/30/13   9.06    0.03    (0.10)   (0.07)   0.15    –    0.15    8.84 
   11/30/14   8.84    0.12    (0.07)   0.05    0.16    –    0.16    8.73 
   11/30/15   8.73    0.17    (0.18)   (0.01)   0.19    –    0.19    8.53 
   11/30/16   8.53    0.13    (0.08)   0.05    0.17    –    0.17    8.41 
   05/31/17(U)   8.41    0.03    0.09    0.12    0.05    –    0.05    8.48 
Low Duration Bond Class I                                    
   11/30/14(B)   8.82    0.13    (0.06)   0.07    0.16    –    0.16    8.73 
   11/30/15   8.73    0.20    (0.19)   0.01    0.21    –    0.21    8.53 
   11/30/16   8.53    0.17    (0.08)   0.09    0.19    –    0.19    8.43 
   05/31/17(U)   8.43    0.04    0.09    0.13    0.06    –    0.06    8.50 
Low Duration Bond Class S                                    
   11/30/12   9.20    0.02    (0.01)   0.01    0.14    –    0.14    9.07 
   11/30/13   9.07    0.01    (0.12)   (0.11)   0.12    –    0.12    8.84 
   11/30/14   8.84    0.11    (0.06)   0.05    0.15    –    0.15    8.74 
   11/30/15   8.74    0.16    (0.18)   (0.02)   0.18    –    0.18    8.54 
   11/30/16   8.54    0.12    (0.07)   0.05    0.16    –    0.16    8.43 
   05/31/17(U)   8.43    0.02    0.09    0.11    0.04    –    0.04    8.50 
Multi-Asset Income Class A                                    
   11/30/12   11.74    0.16    0.86    1.02    0.21    –    0.21    12.55 
   11/30/13   12.55    0.21    1.12    1.33    0.23    –    0.23    13.65 
   11/30/14   13.65    0.26    0.50    0.76    0.28    –    0.28    14.13 
   11/30/15   14.13    0.37    (0.39)   (0.02)   0.39    0.94    1.33    12.78 
   11/30/16   12.78    0.36    0.21    0.57    0.37    0.84    1.21    12.14 
   05/31/17(U)   12.14    0.16    0.40    0.56    0.16    0.09    0.25    12.45 
Multi-Asset Income Class C                                    
   11/30/12   11.70    0.08    0.86    0.94    0.14    –    0.14    12.50 
   11/30/13   12.50    0.11    1.13    1.24    0.13    –    0.13    13.61 
   11/30/14   13.61    0.17    0.48    0.65    0.18    –    0.18    14.08 
   11/30/15   14.08    0.28    (0.40)   (0.12)   0.30    0.94    1.24    12.72 
   11/30/16   12.72    0.27    0.21    0.48    0.28    0.84    1.12    12.08 
   05/31/17(U)   12.08    0.11    0.40    0.51    0.12    0.09    0.21    12.38 
Multi-Asset Income Class I                                    
   11/30/12   11.71    0.18    0.85    1.03    0.22    –    0.22    12.52 
   11/30/13   12.52    0.24    1.13    1.37    0.25    –    0.25    13.64 
   11/30/14   13.64    0.31    0.48    0.79    0.32    –    0.32    14.11 
   11/30/15   14.11    0.41    (0.39)   0.02    0.43    0.94    1.37    12.76 
   11/30/16   12.76    0.38    0.22    0.60    0.41    0.84    1.25    12.11 
   05/31/17(U)   12.11    0.17    0.40    0.57    0.18    0.09    0.27    12.41 

 

44 See notes to Financial Highlights at the end of the schedule.

 

 

 

  

Financial Highlights

 

                          Ratios/Supplemental Data              
                          Ratio of expenses to average           Ratio of net investment        
              Net assets at         net assets before     Ratio of net     income (loss) to average net        
Fund/   Fiscal year   Total     end of     Ratio of expenses     contractual and voluntary     investment income     assets before contractual and     Portfolio  
Share   (period   return     period (000     to average net     expense reimbursements     (loss) to average     voluntary expense     turnover  
Class   ended)   (%)*     omitted)     assets (%)     (%)**     net assets (%)     reimbursements (%)**     rate (%)  
Low Duration Bond Class A                                                  
    11/30/12     0.40     $ 554,187       0.86       0.86       0.65       0.65       27  
    11/30/13     (0.82 )     307,959       0.89       0.89       0.37       0.37       16  
    11/30/14     0.54       187,430       0.95       0.95       1.33       1.33       51  
    11/30/15     (0.12 )     117,770       0.97       0.97       1.92       1.92       27  
    11/30/16     0.58       98,167       0.94       0.94       1.54       1.54       117  
    05/31/17(U)     1.41 ++     85,815       1.03 +     1.03 +     0.64 +     0.64 +     33 ++
Low Duration Bond Class I                                                  
    11/30/14(B)     0.75 ++     44,267       0.68 +     0.68 +     1.83 +     1.83 +     51 ++
    11/30/15     0.14       47,788       0.63       0.63       2.29       2.29       27  
    11/30/16     1.08       17,802       0.60       0.60       2.03       2.03       117  
    05/31/17(U)     1.58 ++     17,813       0.68 +     0.68 +     0.93 +     0.93 +     33 ++
Low Duration Bond Class S                                                  
    11/30/12     0.11       1,535,093       1.25       1.25       0.27       0.27       27  
    11/30/13     (1.19 )     691,645       1.13       1.27       0.12       (0.03 )     16  
    11/30/14     0.53       516,503       1.08       1.13       1.23       1.19       51  
    11/30/15     (0.29 )     342,516       1.09       1.09       1.81       1.81       27  
    11/30/16     0.54       235,133       1.08       1.08       1.41       1.41       117  
    05/31/17(U)     1.36 ++     196,379       1.09 +     1.09 +     0.56 +     0.56 +     33 ++
Multi-Asset Income Class A                                                  
    11/30/12     8.78       134,682       1.12       1.12       1.33       1.33       315  
    11/30/13     10.67       166,168       1.03       1.03       1.58       1.58       279  
    11/30/14     5.61       140,670       1.04       1.04       1.89       1.89       166  
    11/30/15     0.01       126,591       1.04       1.04       2.86       2.86       198  
    11/30/16     4.99       125,475       1.01       1.01       2.97       2.97       228  
    05/31/17(U)     4.69 ++     113,294       1.07 +     1.07 +     2.57 +     2.57 +     55 ++
Multi-Asset Income Class C                                                  
    11/30/12     8.04       70,037       1.81       1.81       0.65       0.65       315  
    11/30/13     9.99       97,839       1.77       1.77       0.83       0.83       279  
    11/30/14     4.83       117,373       1.76       1.76       1.19       1.19       166  
    11/30/15     (0.78 )     109,108       1.77       1.77       2.13       2.13       198  
    11/30/16     4.26       105,852       1.75       1.75       2.23       2.23       228  
    05/31/17(U)     4.32 ++     91,766       1.78 +     1.78 +     1.86 +     1.86 +     55 ++
Multi-Asset Income Class I                                                  
    11/30/12     8.87       17,882       1.00       1.00       1.47       1.47       315  
    11/30/13     11.01       29,833       0.80       0.80       1.79       1.79       279  
    11/30/14     5.86       55,996       0.75       0.75       2.24       2.24       166  
    11/30/15     0.29       50,728       0.77       0.77       3.13       3.13       198  
    11/30/16     5.22       71,333       0.79       0.79       3.14       3.14       228  
    05/31/17(U)     4.76 ++     71,020       0.84 +     0.84 +     2.77 +     2.77 +     55 ++

 

The accompanying notes are an integral part of the financial statements. 45

 

 

 

  

Financial Highlights

 

          Income from Investment Operations   Less Distributions     
              Net gains or                     
      Net asset   Net   losses on       Dividends   Distributions         
Fund/  Fiscal year  value,   investment   securities (both   Total from   (from net   (from       Net asset 
Share  (period  beginning   income   realized and   investment   investment   realized   Total   value, end 
Class  ended)  of period   (loss)   unrealized)   operations   income)   gains)   distributions   of period 
Small Company Class A                                    
   11/30/12  $7.95   $–   $0.70   $0.70   $–   $0.69   $0.69   $7.96 
   11/30/13   7.96    (0.02)   2.25    2.23    –    1.67    1.67    8.52 
   11/30/14   8.52    –    0.38    0.38    –    1.71    1.71    7.19 
   11/30/15   7.19    (0.03)   0.26    0.23    –    1.84    1.84    5.58 
   11/30/16   5.58    (0.02)   0.57    0.55    –    0.94    0.94    5.19 
   05/31/17(U)   5.19    (0.01)   0.35    0.34    –    0.42    0.42    5.11 
Small Company Class C                                    
   11/30/12   7.12    (0.05)   0.61    0.56    –    0.69    0.69    6.99 
   11/30/13   6.99    (0.06)   1.91    1.85    –    1.67    1.67    7.17 
   11/30/14   7.17    (0.04)   0.30    0.26    –    1.71    1.71    5.72 
   11/30/15   5.72    (0.05)   0.18    0.13    –    1.84    1.84    4.01 
   11/30/16   4.01    (0.03)   0.35    0.32    –    0.94    0.94    3.39 
   05/31/17(U)   3.39    (0.02)   0.23    0.21    –    0.42    0.42    3.18 
Small Company Class I                                    
   11/30/12   8.11    0.02    0.72    0.74    –    0.69    0.69    8.16 
   11/30/13   8.16    0.01    2.32    2.33    0.04    1.67    1.71    8.78 
   11/30/14   8.78    0.03    0.38    0.41    –    1.71    1.71    7.48 
   11/30/15   7.48    (0.01)   0.28    0.27    0.02    1.84    1.86    5.89 
   11/30/16   5.89    –    0.61    0.61    –    0.94    0.94    5.56 
   05/31/17(U)   5.56    –    0.37    0.37    –    0.42    0.42    5.51 
Small Company Class R6                                    
   11/30/15(A)   5.44    (0.01)   0.17    0.16    –    –    –    5.60 
   11/30/16   5.60    0.01    0.57    0.58    –    0.94    0.94    5.24 
   05/31/17(U)   5.24    –    0.36    0.36    –    0.42    0.42    5.18 
Sustainable Core Opportunities Class A                        
   11/30/12   12.57    0.09    1.66    1.75    0.06    –    0.06    14.26 
   11/30/13   14.26    0.11    4.25    4.36    0.11    –    0.11    18.51 
   11/30/14   18.51    0.16    2.27    2.43    0.11    –    0.11    20.83 
   11/30/15   20.83    0.38    (0.41)   (0.03)   0.17    –    0.17    20.63 
   11/30/16   20.63    0.17    1.01    1.18    0.41    0.20    0.61    21.20 
   05/31/17(U)   21.20    0.07    2.28    2.35    0.15    0.26    0.41    23.14 
Sustainable Core Opportunities Class I                        
   11/30/12   12.62    0.13    1.67    1.80    0.11    –    0.11    14.31 
   11/30/13   14.31    0.15    4.25    4.40    0.14    –    0.14    18.57 
   11/30/14   18.57    0.22    2.27    2.49    0.13    –    0.13    20.93 
   11/30/15   20.93    0.44    (0.42)   0.02    0.22    –    0.22    20.73 
   11/30/16   20.73    0.23    1.01    1.24    0.47    0.20    0.67    21.30 
   05/31/17(U)   21.30    0.10    2.28    2.38    0.20    0.26    0.46    23.22 

 

46 See notes to Financial Highlights at the end of the schedule.

 

 

 

  

Financial Highlights

 

                          Ratios/Supplemental Data              
                          Ratio of expenses to average           Ratio of net investment        
              Net assets at         net assets before     Ratio of net     income (loss) to average net        
Fund/   Fiscal year   Total     end of     Ratio of expenses     contractual and voluntary     investment income     assets before contractual and     Portfolio  
Share   (period   return     period (000     to average net     expense reimbursements     (loss) to average     voluntary expense     turnover  
Class   ended)   (%)*     omitted)     assets (%)     (%)**     net assets (%)     reimbursements (%)**     rate (%)  
Small Company Class A                                        
    11/30/12     9.63     $ 815,661       1.14       1.14       (0.05 )     (0.05 )     33  
    11/30/13     34.79       808,145       1.21       1.21       (0.24 )     (0.24 )     23  
    11/30/14     5.40       682,481       1.20       1.20       0.06       0.06       59  
    11/30/15     5.32       596,864       1.25       1.25       (0.61 )     (0.61 )     70  
    11/30/16     12.52       685,807       1.22       1.22       (0.38 )     (0.38 )     61  
    05/31/17(U)     6.87 ++     675,709       1.20 +     1.20 +     (0.51 )+      (0.51 )+      52 ++
Small Company Class C                                        
    11/30/12     8.70       119,594       1.89       1.89       (0.79 )     (0.79 )     33  
    11/30/13     33.94       128,521       1.93       1.93       (0.97 )     (0.97 )     23  
    11/30/14     4.55       115,642       1.91       1.91       (0.66 )     (0.66 )     59  
    11/30/15     4.72       108,192       1.94       1.94       (1.30 )     (1.30 )     70  
    11/30/16     11.48       110,842       1.95       1.95       (1.10 )     (1.10 )     61  
    05/31/17(U)     6.63 ++     108,687       1.93 +     1.93 +     (1.24 )+      (1.24 )+      52 ++
Small Company Class I                                        
    11/30/12     9.96       523,540       0.79       0.79       0.31       0.31       33  
    11/30/13     35.40       385,692       0.81       0.81       0.17       0.17       23  
    11/30/14     5.62       247,639       0.85       0.85       0.46       0.46       59  
    11/30/15     5.71       220,543       0.87       0.87       (0.24 )     (0.24 )     70  
    11/30/16     12.95       257,483       0.89       0.89       (0.04 )     (0.04 )     61  
    05/31/17(U)     6.95 ++     335,343       0.85 +     0.85 +     (0.16 )+     (0.16 )+     52 ++
Small Company Class R6                                        
    11/30/15(A)     2.94 ++     599       0.73 +     2.96 +     (0.18 )+     (2.41 )+     70 ++
    11/30/16     13.07       13,000       0.73       0.99       0.16       (0.10 )     61  
    05/31/17(U)     7.19 ++     32,586       0.73 +     0.80 +     (0.04 )+     (0.11 )+     52 ++
Sustainable Core Opportunities Class A                                        
    11/30/12     14.00       182,345       1.32       1.32       0.66       0.66       4  
    11/30/13     30.74       224,489       1.26       1.26       0.67       0.67       14  
    11/30/14     13.18       239,707       1.24       1.24       0.85       0.85       20  
    11/30/15     (0.13 )#     224,862       1.21       1.21       1.85 ^      1.85 ^      20  
    11/30/16     5.92       340,815       1.18       1.18       0.86       0.86       33  
    05/31/17(U)     11.23 ++     358,115       1.19 +     1.19 +     0.65 +     0.65 +     7 ++
Sustainable Core Opportunities Class I                                        
    11/30/12     14.38       8,194       1.04       1.04       0.94       0.94       4  
    11/30/13     31.05       12,418       1.00       1.00       0.93       0.93       14  
    11/30/14     13.50       15,275       0.97       0.97       1.13       1.13       20  
    11/30/15     0.12 #     14,926       0.93       0.93       2.13 ^      2.13 ^     20  
    11/30/16     6.20       21,777       0.91       0.91       1.14       1.14       33  
    05/31/17(U)     11.37 ++     28,723       0.93 +     0.93 +     0.92 +     0.92 +     7 ++

 

The accompanying notes are an integral part of the financial statements. 47

 

 

 

  

Financial Highlights

 

          Income from Investment Operations   Less Distributions         
              Net gains or                         
      Net asset   Net   losses on       Dividends   Distributions             
Fund/  Fiscal year  value,   investment   securities (both   Total from   (from net   (from           Net asset 
Share  (period  beginning   income   realized and   investment   investment   realized   Return of   Total   value, end 
Class  ended)  of period   (loss)   unrealized)   operations   income)   gains)   Capital   distributions   of period 
Total Return Bond Class A                                   
   11/30/12  $10.14   $0.21   $1.01   $1.22   $0.25   $0.18   $–   $0.43   $10.93 
   11/30/13   10.93    0.25    –    0.25    0.28    0.25    –    0.53    10.65 
   11/30/14   10.65    0.24    0.15    0.39    0.27    0.13    –    0.40    10.64 
   11/30/15   10.64    0.19    (0.28)   (0.09)   0.21    –    –    0.21    10.34 
   11/30/16   10.34    0.18    (0.05)   0.13    0.23    –    –    0.23    10.24 
   05/31/17(U)   10.24    0.11    0.18    0.29    0.13    –    –    0.13    10.40 
Total Return Bond Class C                                   
   11/30/12   10.13    0.17    1.02    1.19    0.23    0.18    –    0.41    10.91 
   11/30/13   10.91    0.20    (0.01)   0.19    0.22    0.25    –    0.47    10.63 
   11/30/14   10.63    0.18    0.14    0.32    0.21    0.13    –    0.34    10.61 
   11/30/15   10.61    0.10    (0.28)   (0.18)   0.12    –    –    0.12    10.31 
   11/30/16   10.31    0.10    (0.06)   0.04    0.14    –    –    0.14    10.21 
   05/31/17(U)   10.21    0.06    0.18    0.24    0.08    –    –    0.08    10.37 
Total Return Bond Class I                                   
   11/30/12   10.14    0.23    1.02    1.25    0.27    0.18    –    0.45    10.94 
   11/30/13   10.94    0.29    (0.03)   0.26    0.29    0.25    –    0.54    10.66 
   11/30/14   10.66    0.25    0.15    0.40    0.28    0.13    –    0.41    10.65 
   11/30/15   10.65    0.20    (0.27)   (0.07)   0.23    –    –    0.23    10.35 
   11/30/16   10.35    0.20    (0.05)   0.15    0.25    –    –    0.25    10.25 
   05/31/17(U)   10.25    0.11    0.18    0.29    0.13    –    –    0.13    10.41 
Total Return Bond Class R3                                   
   11/30/15(A)   10.53    0.18    (0.18)   –    0.19    –    –    0.19    10.34 
   11/30/16   10.34    0.18    (0.06)   0.12    0.23    –    –    0.23    10.23 
   05/31/17(U)   10.23    0.10    0.19    0.29    0.12    –    –    0.12    10.40 
Total Return Bond Class R6                                   
   11/30/15(A)   10.53    0.20    (0.17)   0.03    0.21    –    –    0.21    10.35 
   11/30/16   10.35    0.20    (0.06)   0.14    0.25    –    –    0.25    10.24 
   05/31/17(U)   10.24    0.11    0.19    0.30    0.13    –    –    0.13    10.41 
Unconstrained Bond Class A                                   
   11/30/15(A)   10.00    0.11    (0.23)   (0.12)   0.12    –    –    0.12    9.76 
   11/30/16   9.76    0.10    0.08    0.18    0.14    0.02    –    0.16    9.78 
   05/31/17(U)   9.78    0.04    0.15    0.19    0.06    –    –    0.06    9.91 
Unconstrained Bond Class C                                   
   11/30/15(A)   10.00    0.06    (0.26)   (0.20)   0.08    –    –    0.08    9.72 
   11/30/16   9.72    0.04    0.08    0.12    0.07    0.02    –    0.09    9.75 
   05/31/17(U)   9.75    0.01    0.15    0.16    0.03    –    –    0.03    9.88 
Unconstrained Bond Class I                                   
   11/30/15(A)   10.00    0.13    (0.24)   (0.11)   0.13    –    –    0.13    9.76 
   11/30/16   9.76    0.13    0.08    0.21    0.15    0.02    –    0.17    9.80 
   05/31/17(U)   9.80    0.05    0.15    0.20    0.07    –    –    0.07    9.93 

 

Per share net investment (income) loss for each Fund is calculated utilizing the average shares method unless otherwise noted.

 

Amounts designated as “–“ are either zero or represent less than $0.005 or $(0.005).

 

* Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all distributions at net asset value during the period, and a redemption on the last day of the period. Neither an initial sales charge nor a CDSC is reflected in the calculation of total return. Total returns would have been lower in applicable years where the Advisor had not waived a portion of its fee.

 

** Expense reductions are comprised of the contractual and voluntary expense reimbursements as described in Note (3), if applicable.

 

+ Annualized.

++ Not Annualized.

 

  (A) Commenced operations December 23, 2014.

 

  (B) Commenced operations January 31, 2014.

 

(U)Unaudited.

 

48 See notes to Financial Highlights at the end of the schedule.

 

 

 

  

Financial Highlights

 

                          Ratios/Supplemental Data              
                          Ratio of expenses to average           Ratio of net investment        
              Net assets at           net assets before     Ratio of net     income (loss) to average net        
Fund/   Fiscal year   Total     end of     Ratio of expenses     contractual and voluntary     investment income     assets before contractual and     Portfolio  
Share   (period   return     period (000     to average net     expense reimbursements     (loss) to average     voluntary expense     turnover  
Class   ended)   (%)*     omitted)     assets (%)     (%)**     net assets (%)     reimbursements (%)**     rate (%)  
Total Return Bond Class A                                        
    11/30/12     12.34     $ 111,263       0.94       0.96       2.00       1.98       915  
    11/30/13     2.33       102,138       0.89       0.95       2.38       2.32       499  
    11/30/14     3.66       203,871       0.89       0.93       2.25       2.21       432  
    11/30/15     (0.87 )     315,820       0.89       0.94       1.76       1.71       441  
    11/30/16     1.26       92,331       0.89       1.07       1.79       1.61       240  
    05/31/17(U)     2.80 ++     57,323       0.89 +     0.97 +     2.06 +     1.98 +     63 ++
Total Return Bond Class C                                        
    11/30/12     12.02       29,323       1.35       1.37       1.62       1.60       915  
    11/30/13     1.79       26,222       1.42       1.48       1.88       1.81       499  
    11/30/14     3.01       47,015       1.49 @     1.53 @     1.68       1.64       432  
    11/30/15     (1.69 )     42,316       1.70       1.75       0.93       0.88       441  
    11/30/16     0.40       30,866       1.73       1.73       0.94       0.94       240  
    05/31/17(U)     2.35 ++     20,615       1.82 +     1.82 +     1.10 +     1.10 +     63 ++
Total Return Bond Class I                                        
    11/30/12     12.59       22,792       0.77       0.79       2.20       2.19       915  
    11/30/13     2.46       61,268       0.73       0.79       2.69       2.63       499  
    11/30/14     3.79       485,459       0.74       0.78       2.31       2.27       432  
    11/30/15     (0.70 )     472,782       0.69       0.74       1.94       1.89       441  
    11/30/16     1.40       280,081       0.74       0.74       1.93       1.93       240  
    05/31/17(U)     2.87 ++     159,202       0.76 +     0.76 +     2.15 +     2.15 +     63 ++
Total Return Bond Class R3                                        
    11/30/15(A)     0.00 ++     596       0.89 +@     2.87 +@     1.86 +     (0.12 )+     441 ++
    11/30/16     1.16       603       0.89 @     2.91 @     1.77       (0.25 )     240  
    05/31/17(U)     2.88 ++     620       0.89 +@     3.14 +@     2.04 +     (0.21 )+     63 ++
Total Return Bond Class R6                                        
    11/30/15(A)     0.26 ++     596       0.69 +     2.87 +     2.06 +     (0.12 )+     441 ++
    11/30/16     1.36       605       0.69       2.90       1.97       (0.24 )     240  
    05/31/17(U)     2.99 ++     623       0.69 +     3.13 +     2.24 +     (0.20 )+     63 ++
Unconstrained Bond Class A                                        
    11/30/15(A)     (1.23 )++     5,008       1.16 +@     1.16 +@     1.19 +     1.19 +     1153 ++
    11/30/16     1.81       5,131       1.28 @     1.28 @     1.07       1.07       472  
    05/31/17(U)     1.90 ++     5,658       1.24 +@     1.24 +@     0.88 +     0.88 +     45 ++
Unconstrained Bond Class C                                        
    11/30/15(A)     (1.99 )++     1,649       1.88 +@     1.88 +@     0.64 +     0.64 +     1153 ++
    11/30/16     1.24       1,648       1.91 @     1.91 @     0.43       0.43       472  
    05/31/17(U)     1.60 ++     1,637       1.87 +@     1.87 +@     0.25 +     0.25 +     45 ++
Unconstrained Bond Class I                                        
    11/30/15(A)     (1.14 )++     18,883       1.00 +     1.00 +     1.35 +     1.35 +     1153 ++
    11/30/16     2.16       19,716       1.04       1.04       1.30       1.30       472  
    05/31/17(U)     2.01 ++     19,829       1.02 +     1.02 +     1.10 +     1.10 +     45 ++

 

# Includes the impact of proceeds received and credited to the Funds resulting from class action settlements, which enhanced the performance for the Sentinel Sustainable Core Opportunities Fund Class A by 0.05% and Sentinel Sustainable Core Opportunities Fund Class I by 0.04% for the fiscal year ended November 30, 2015.

 

^ Includes the impact of special dividends resulting from an acquisition of Covidien plc by Medtronic, Inc. on January 26, 2015 through the formation of a new holding company, Medtronic plc, incorporated in Ireland. These special dividends enhanced the ratios of net investment income for the Sentinel Balanced Fund Class A by 0.86%, Sentinel Balanced Fund Class C by 0.86%, Sentinel Balanced Fund Class I by 0.86%, the Sentinel Common Stock Fund Class A by 1.22%, Sentinel Common Stock Fund Class C by 1.22%, Sentinel Common Stock Fund Class I by 1.22%, Sentinel Common Stock Fund Class R6 by 1.30%, Sentinel Sustainable Core Opportunities Fund Class A by 1.07% and Sentinel Sustainable Core Opportunities Fund Class I by 1.07% for the fiscal year ended November 30, 2015.

 

@ Includes the impact of the shares owned by NLV Financial Corporation and its affiliates, who do not get charged a distribution fee, which decreases the ratio by 0.20% for the Sentinel Total Return Bond Fund Class C for the fiscal year ended November 30, 2014; 0.30% for the ratio of expenses to average net assets on Sentinel Total Return Bond Fund Class R3, 0.50% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Total Return Bond Fund Class R3, 0.20% for the Sentinel Unconstrained Bond Fund Class A, 0.18% for the ratio of expenses to average net assets on

 

The accompanying notes are an integral part of the financial statements. 49

 

 

 

  

Financial Highlights

 

Sentinel Unconstrained Bond Fund Class C and 0.92% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Unconstrained Bond Fund Class C for the fiscal period from December 23, 2014 to November 30, 2015; 0.30% for the ratio of expenses to average net assets on Sentinel Total Return Bond Fund Class R3, 0.50% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Total Return Bond Fund Class R3, 0.20% for the Sentinel Unconstrained Bond Fund Class A, 0.15% for the ratio of expenses to average net assets on Sentinel Unconstrained Bond Fund Class C and 0.88% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Unconstrained Bond Fund Class C for the fiscal year ended November 30, 2016; 0.30% for the ratio of expenses to average net assets on Sentinel Total Return Bond Fund Class R3, 0.50% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Total Return Bond Fund Class R3, 0.19% for the Sentinel Unconstrained Bond Fund Class A, 0.19% for the ratio of expenses to average net assets on Sentinel Unconstrained Bond Fund Class C and 0.90% for the ratio of expenses to average net assets before contractual and voluntary expense reimbursements on Sentinel Unconstrained Bond Fund Class C for the fiscal six months ended May 31, 2017.

 

50 See notes to Financial Highlights at the end of the schedule.

 

 

 

 

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  51

 

 

 

 

Notes to Financial Statements (Unaudited)

 

(1) Organization:

Sentinel Group Funds, Inc. (“Company”) is registered as an open-end investment company under the Investment Company Act of 1940, as amended. The Company currently consists of ten separate series (each individually referred to as a “Fund”) with the following share classes offered:

 

FUND NAME SHARE CLASSES OFFERED
Sentinel Balanced Fund Class A, Class C and Class I
Sentinel Common Stock Fund Class A, Class C, Class I and Class R6
Sentinel Government Securities Fund Class A, Class C and Class I
Sentinel International Equity Fund Class A, Class C and Class I
Sentinel Low Duration Bond Fund Class A, Class I and Class S
Sentinel Multi-Asset Income Fund Class A, Class C and Class I
Sentinel Small Company Fund Class A, Class C, Class I and Class R6
Sentinel Sustainable Core Opportunities Fund Class A and Class I
Sentinel Total Return Bond Fund Class A, Class C, Class I, Class R3 and Class R6
Sentinel Unconstrained Bond Fund Class A, Class C and Class I

 

Each Fund has its own investment objectives. Each class of shares has identical voting, dividend, liquidation and other rights, except that the classes bear different distribution fees, registration fees and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan, as applicable.

 

(2) Significant Accounting Policies:

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make certain estimates and assumptions at the date of the financial statements that affect the reported amounts and disclosures on the financial statements. Actual results could differ from the estimates. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Codification Topic 946 – Investment Companies, which is part of GAAP.

 

Effective October 13, 2016, the Securities and Exchange Commission (“SEC”) adopted rules to modernize and enhance the reporting and disclosure of information by registered investment companies and to enhance liquidity risk management programs by open-end funds. The new rules will enhance the quality of information available to investors and will allow the Commission to more effectively collect and use data reported by funds. The new rules also will promote effective liquidity risk management across the open-end fund industry and will enhance disclosure regarding fund liquidity and redemption practices. Management is currently evaluating the implications of these new rules on the financial statements and will comply with the requirements within the specified deadlines.

 

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.

 

A. Security Valuation:

Equity securities, including Exchange Traded Funds (“ETFs”), that are traded on a national or foreign securities exchange and over-the-counter (“OTC”) securities listed in the NASDAQ National Market System are valued at the last reported sales price or official closing price on the principal exchange on which they are traded on the date of determination as of the close of business of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. Eastern time, each day that the NYSE is open for business. Foreign equity securities traded on a foreign securities exchange are subject to fair value pricing when appropriate, using valuations provided by an independent pricing service. Securities for which no sale was reported on the valuation date are valued at the mean between the last reported bid and asked prices. OTC securities not listed on the NASDAQ National Market System are valued at the mean of the current bid and asked prices. Fixed-income securities with original maturities of greater than 60 days, including short-term securities with more than 60 days left to maturity, are valued on the basis of valuations provided by an independent pricing service. The bid price is generally used for valuation purposes. Fixed-income securities with maturities of less than 60 days remaining to maturity (including long-term and short-term fixed income securities with original maturities greater than 60 days) are valued at amortized cost, which approximates market value, and are reviewed to determine that no material variation exists between cost and market. The amortized cost method values a security at cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium. Investments in mutual funds are valued at the net asset value per share on the day of valuation. Investments in exchange traded derivatives are valued at the settlement price determined by the relevant exchange. Investments in cleared or non-exchange traded derivatives are valued on the basis of prices supplied by an independent pricing service, if available, or quotes obtained from brokers and dealers. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund’s pricing time but after the close of the securities’ primary markets, including an unscheduled early closing of a primary exchange or when trading in a particular security is halted during the day and does not resume prior to the time a Fund’s net asset value is calculated, will be fair valued under procedures adopted by the Funds’ Board of Directors (the “Board”). The Board has delegated this responsibility to the Sentinel Valuation Committee (the “Valuation Committee”), established by Sentinel Asset Management, Inc. (“SAMI”), a subsidiary of NLV Financial Corporation, and subject to its review and supervision. Fair value represents a good faith approximation of the value of a security. The fair value of one or more securities may not, in retrospect, be the price at which those assets could have been sold during the period in which the particular fair values were used in determining a Fund’s net asset value.

 

The Funds may use one or more independent pricing services, as approved by the Board. Such independent pricing services shall provide their daily evaluations directly to the Funds’ custodian bank and fund accounting service provider, State Street Bank and Trust Company (“SSB”). Sentinel Administrative Services, Inc. (“SASI”), the Funds’ administrator and a subsidiary of SAMI, shall have an oversight role over the daily accounting process. Portfolio securities for which market quotations are readily available shall be valued at current market value; other securities and assets shall be valued at fair value as determined in good faith by SAMI, which may act through its Valuation Committee, subject to the overall oversight of the Board or its Audit Committee.

 

The Valuation Committee, SSB and SASI perform a series of activities to provide reasonable comfort over the accuracy of prices including: 1) periodic vendor due diligence meetings to review underlying methodologies, policies and procedures with respect to valuations, 2) daily monitoring of significant events that may impact markets and valuations, 3) daily comparisons of security valuations versus prior day valuations for all securities with additional follow-up procedures implemented for those that exceed established thresholds, and 4) daily reviews of stale valuations and manually priced securities which may be subjected to additional procedures at the discretion of the Valuation Committee.

 

In addition, there are several processes outside of the pricing process that are used to monitor valuation issues including: 1) performance and performance attribution reports are monitored by SAMI for anomalous impacts based upon benchmark performance, and 2) portfolio managers review all portfolios for performance and analytics.

 

52

 

 

 

  

Notes to Financial Statements

 

B. Fair Value Measurement:

In June 2013, FASB issued Accounting Standards Update (“ASU”) No. 2013-08 “Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements” that creates a two-tiered approach to assess whether an entity is an investment company. Under ASU 2013-08, an entity that is registered under the 1940 Act automatically qualifies as an investment company. The guidance also requires an investment company to measure non-controlling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees.

 

In response to FASB’s issuance of ASU 2011-4, which contains amendments designed to improve the comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with GAAP and International Financial Reporting Standards, management has evaluated the implications of these amendments on the financial statements and included disclosures, where applicable, to address the following concerns:

 

(1)Information about transfers between Level 1 and Level 2 of the fair value hierarchy.

 

(2)Information about the sensitivity of a fair value measurement categorized within Level 3 of the fair value hierarchy to changes in unobservable inputs and any interrelationships between those unobservable inputs.

 

(3)The categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position, but for which the fair value of such items is required to be disclosed.

 

In accordance with GAAP regarding fair value measurements, fair value is defined as the price that the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP disclosure requirements establish a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Funds. Unobservable inputs reflect the Funds’ own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below:

 

·Level 1 – Quoted prices (unadjusted) in active markets for identical assets at the time of the NYSE close (normally 4:00 PM Eastern). Includes most domestic equities, American Depository Receipts (“ADRs”), domestic ETFs, Standard & Poor’s Depository Receipts and exchange traded derivatives that rely on unadjusted or official closing prices based on actual trading activity which coincides with the close of the NYSE.

 

·Level 2 – Other significant observable inputs (evaluated prices factoring in observable inputs using some type of model, matrix or other calculation methodology which takes into consideration factors such as quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Includes most long-term and short-term fixed income investments, most foreign equities trading on foreign exchanges, foreign ETFs, forward foreign currency contracts, cleared derivatives, non-exchange traded derivatives and OTC securities (including some ADRs) not listed on the NASDAQ National Market System that rely on a mean price which falls between the last bid and asked quotes coinciding with the close of the NYSE. Investments in other Registered Investment Companies (RICs) that rely on calculated Net Asset Values (NAV’s) would also generally be considered Level 2.

 

·Level 3 – Significant unobservable inputs (including non-binding broker quotes or the Valuation Committee’s own assumptions in determining the fair value of investments).

 

Valuations of mortgage-backed or other asset backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset backed securities for which management has collected current observable data through brokers or pricing services are generally categorized within Level 2. Those investments for which current data has not been provided would be classified as Level 3.

 

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments would be classified as Level 3.

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, money market securities are normally valued using amortized cost, which approximates the current fair value of a security, but since this value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.

 

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. There have been no significant changes in valuation techniques during the fiscal period, but the Valuation Committee considers factors such as few recent transactions, inconsistent price quotes and wider bid-ask spreads when determining if transactions are not orderly for fair valuation purposes.

 

53

 

 

 

  

Notes to Financial Statements

 

The fair value measurements as of May 31, 2017 were as follows:

 

   Quoted Prices   Other         
   (Unadjusted) in Active   Significant   Significant     
   Markets for Identical   Observable   Unobservable     
   Assets   Inputs   Inputs     
Sentinel Fund / Category  (Level 1)   (Level 2)   (Level 3)   Total 
Investments in Securities - Assets:                    
Balanced:                    
Agency Collateralized Mortgage Obligations  $–   $2,911,837   $–   $2,911,837 
Agency Discount Notes   –    45,999,233    –    45,999,233 
Agency Mortgage-Backed Securities   –    36,083,802    –    36,083,802 
Domestic Common Stocks   212,657,679    –    –    212,657,679 
Domestic Corporate Bonds   –    1,419,481    –    1,419,481 
Domestic Exchange Traded Funds   30,450,842    –    –    30,450,842 
Foreign Stocks & ADRs:                    
Netherlands   4,542,400    –    –    4,542,400 
Switzerland   –    2,062,800    –    2,062,800 
Institutional Money Market Funds   –    10,497,319    –    10,497,319 
Real Estate Investment Trusts   2,866,565    –    –    2,866,565 
Totals  $250,517,486   $98,974,472   $–   $349,491,958 
                     
Common Stock:                    
Agency Discount Notes  $–   $20,000,000   $–   $20,000,000 
Domestic Common Stocks   1,871,920,259    –    –    1,871,920,259 
Domestic Exchange Traded Funds   60,712,210    –    –    60,712,210 
Foreign Stocks & ADRs:                    
Netherlands   35,487,500    –    –    35,487,500 
Switzerland   –    22,690,800    –    22,690,800 
Institutional Money Market Funds   –    29,280,731    –    29,280,731 
Real Estate Investment Trusts   24,255,550    –    –    24,255,550 
Totals  $1,992,375,519   $71,971,531   $–   $2,064,347,050 
                     
Government Securities:                    
Agency Collateralized Mortgage Obligations  $–   $16,006,580   $–   $16,006,580 
Agency Mortgage-Backed Securities   –    157,243,195    –    157,243,195 
Institutional Money Market Funds   –    8,290,554    –    8,290,554 
Totals  $–   $181,540,329   $–   $181,540,329 
                     
International Equity:                    
Domestic Common Stocks  $25,789,630   $–   $–   $25,789,630 
Foreign Stocks & ADRs:                    
Canada   4,949,328    –    –    4,949,328 
All Others   –    162,143,515    –    162,143,515 
Institutional Money Market Funds   –    10,778,748    –    10,778,748 
Totals  $30,738,958   $172,922,263   $–   $203,661,221 
                     
Low Duration Bond:                    
Agency Collateralized Mortgage Obligations  $–   $70,194,364   $–   $70,194,364 
Agency Discount Notes   –    60,999,814    –    60,999,814 
Agency Mortgage-Backed Securities   –    711,355    –    711,355 
Asset Backed Securities   –    2,559,528    –    2,559,528 
Bank Loans   –    2,676,038    –    2,676,038 
Domestic Corporate Bonds   –    96,942,518    –    96,942,518 
Domestic Exchange Traded Funds   41,802,558    –    –    41,802,558 
Institutional Money Market Funds   –    10,755,098    –    10,755,098 
Residential Mortgage-Backed Securities   –    12,963,179    –    12,963,179 
Totals  $41,802,558   $257,801,894   $–   $299,604,452 
                     
Multi-Asset Income:                    
Agency Collateralized Mortgage Obligations  $–   $289,317   $–   $289,317 
Agency Mortgage-Backed Securities   –    16,065,578    –    16,065,578 
Asset Backed Securities   –    1,085,543    –    1,085,543 
Bank Loans   –    5,165,164    –    5,165,164 
Domestic Corporate Bonds   –    123,826,938    –    123,826,938 
Domestic Exchange Traded Funds   126,883,972    –    –    126,883,972 
Institutional Money Market Funds   –    12,411,117    –    12,411,117 
Totals  $126,883,972   $158,843,657   $–   $285,727,629 
                     

 

54

 

 

 

  

Notes to Financial Statements

 

   Quoted Prices   Other         
   (Unadjusted) in Active   Significant   Significant     
   Markets for Identical   Observable   Unobservable     
   Assets   Inputs   Inputs     
Sentinel Fund / Category  (Level 1)   (Level 2)   (Level 3)   Total 
Small Company:                    
Agency Discount Notes  $–   $135,998,503   $–   $135,998,503 
Domestic Common Stocks   856,812,792    –    –    856,812,792 
Domestic Exchange Traded Funds   109,669,001    –    –    109,669,001 
Foreign Stocks & ADRs   17,445,607    –    –    17,445,607 
Institutional Money Market Funds   –    14,845,379    –    14,845,379 
Real Estate Investment Trusts   21,671,525    –    –    21,671,525 
Totals  $1,005,598,925   $150,843,882   $–   $1,156,442,807 
                     
Sustainable Core Opportunities:                    
Agency Discount Notes  $–   $3,999,933   $–   $3,999,933 
Domestic Common Stocks   347,387,860    –    –    347,387,860 
Foreign Stocks & ADRs:                    
Denmark   5,011,600    –    –    5,011,600 
Israel   2,726,850    –    –    2,726,850 
Netherlands   7,381,400    –    –    7,381,400 
Switzerland   –    4,125,600    –    4,125,600 
Institutional Money Market Funds   –    10,416,771    –    10,416,771 
Real Estate Investment Trusts   6,174,140    –    –    6,174,140 
Totals  $368,681,850   $18,542,304   $–   $387,224,154 
                     
Total Return Bond:                    
Agency Collateralized Mortgage Obligations  $–   $9,794,194   $–   $9,794,194 
Agency Mortgage-Backed Securities   –    60,546,594    –    60,546,594 
Asset Backed Securities   –    2,808,681    –    2,808,681 
Bank Loans   –    1,653,096    –    1,653,096 
Domestic Corporate Bonds   –    99,640,803    –    99,640,803 
Domestic Exchange Traded Funds   52,627,097    –    –    52,627,097 
Institutional Money Market Funds   –    3,744,099    –    3,744,099 
Totals  $52,627,097   $178,187,467   $–   $230,814,564 
                     
Unconstrained Bond:                    
Agency Mortgage-Backed Securities  $–   $5,808,203   $–   $5,808,203 
Asset Backed Securities   –    263,904    –    263,904 
Bank Loans   –    104,008    –    104,008 
Domestic Corporate Bonds   –    7,557,016    –    7,557,016 
Domestic Exchange Traded Funds   4,280,381    –    –    4,280,381 
Institutional Money Market Funds   –    9,384,743    –    9,384,743 
Totals  $4,280,381   $23,117,874   $–   $27,398,255 
                     
Investments in Securities - Liabilities:                    
None.                    
Derivatives - Assets:                    
None.                    
                     
Derivatives - Liabilities:                    
Low Duration Bond:                    
Futures Contracts  $17,835*   $–   $–   $ 17,835*
                     
Total Return Bond:                    
Futures Contracts  $90,314*  $–   $–   $ 90,314*
                     

 

*The fair value represents the cumulative unrealized appreciation (depreciation) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable or payable at that date.

 

Please refer to each Fund’s Schedule of Investments for more detailed information on specific securities, including industry classifications.

 

There was no reportable Fair Value Level 3 activity for the fiscal six month ended May 31, 2017.

 

There were no reportable transfers between Level 1, Level 2 and Level 3 investments for the fiscal six months ended May 31, 2017.

 

55

 

 

 

  

Notes to Financial Statements

 

C. Securities Transactions and Related Investment Income:

For purposes of the Funds’ financial statements, securities transactions are accounted for on trade date. For purposes of calculating the net asset values (NAVs), securities transactions are accounted for on the next business day following trade date (trade date plus one). Under certain circumstances, exceptions are made so that purchases and sales are booked on trade date. These exceptions include:

 

(1)when trades occur on a day that happens to coincide with the last business day of a calendar month; or

 

(2)on occasion, if SASI believes significant price movements are deemed large enough to impact the calculation of the net asset value per share.

 

Interest income and expenses are recorded on an accrual basis, which includes the amortization of bond premiums on fixed-income securities. Dividend income is recorded on the ex-dividend date when verified by two independent sources and adjusted daily for foreign tax withholding, reclaims and currency fluctuations, when applicable. The cost of securities sold is determined, and realized gains and losses are computed, using the identified cost method. Market discount and original issue discount are accreted to income. Distributions received from the Funds’ investments in real estate investment trusts (“REITs”) and master limited partnerships often include a “return of capital” which is recorded by the Funds as a reduction of the cost basis of the securities held.

 

D. Dividends and Distributions:

Dividends and distributions to shareholders are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatments for gains and losses on mortgage-backed securities payment receipts, foreign currency transactions, the reclassification of net investment losses, the expiration of capital loss carry forwards to paid-in capital, returns of capital from underlying investments and tax attributes from acquired funds. No reclassifications were made to reflect these differences as of May 31, 2017.

 

E. Federal Income Taxes:

Each Fund is treated as a separate entity for federal income tax purposes. Each Fund intends to continue to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986 as they apply to regulated investment companies. By so complying, each Fund will not be subject to federal and state income taxes to the extent that all of its income is distributed. The Funds may be subject to taxes imposed by countries in which they invest. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned based on management’s understanding of applicable local tax law.

 

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Funds’ tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Funds’ financial statements as a result of these uncertainties. As of May 31, 2017, the Funds did not have any unrecognized tax benefits.

 

F. Foreign Currency Translations:

The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling rates on the following basis:

 

(1)market value of investment securities, assets and liabilities at the closing daily rate of exchange; and

 

(2)purchases and sales of investment securities, income and expenses at the rate of exchange prevailing on the respective dates of such transactions.

 

The Funds do not isolate the portion of gains and losses on investments in securities that is due to changes in the foreign exchange rates from that due to changes in market prices of such securities for purposes of the Funds’ financial statements. However, pursuant to United States federal income tax regulations, gains and losses from certain foreign currency transactions are treated as ordinary income for federal income tax purposes.

 

G. Forward Foreign Currency Contracts:

Sentinel Balanced Fund, Sentinel Common Stock Fund, Sentinel International Equity Fund, Sentinel Low Duration Bond Fund, Sentinel Multi-Asset Income Fund, Sentinel Small Company Fund, Sentinel Sustainable Core Opportunities Fund, Sentinel Total Return Bond Fund and Sentinel Unconstrained Bond Fund may enter into forward foreign exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward contracts are valued at the forward rate and are marked-to-market daily. The daily change in the market value is recorded as an unrealized gain or loss. The Funds realize a gain or loss when the forward contract is closed on delivery of the currency. Risks may arise with respect to entering into forward contracts from potential inability of counterparties to meet the terms of the forward contracts and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar. A Fund’s risk of loss from forward currency contracts may exceed the related amounts reflected on the Statement of Assets and Liabilities. No forward foreign currency contracts were entered into during the fiscal six months ended May 31, 2017.

 

H. Options Contracts:

Each Fund may enter into options contracts.

 

Purchasing Put Options. By purchasing a put option, a Fund obtains the right (but not the obligation) to sell the instrument underlying the option at a fixed strike price. In return for this right, the Fund pays the current market price for the option (known as the option premium). Options have various types of underlying instruments, including specific securities, indices of securities and indices of securities prices. A Fund may terminate its position in a put position it has purchased by allowing it to expire or by exercising the option. A Fund may also close out a put option position by entering into an offsetting transaction, if a liquid market exists. If the option is allowed to expire, the Fund will lose the entire premium it paid. If a Fund exercises a put option on a security, it will sell the instrument underlying the option at the strike price. If a Fund exercises an option on an index, settlement is in cash and does not involve the actual sale of securities. If an option is American Style, it may be exercised on any day up to its expiration date. A European Style option may be exercised only on its expiration date. The buyer of a typical put option can expect to realize a gain if the price of the underlying instrument falls substantially. However, if the price of the instrument underlying the option does not fall enough to offset the cost of purchasing the option, a put buyer can expect to suffer a loss (limited to the amount of the premium paid, plus related transaction costs). The Funds may purchase put options, but will not sell, or write, put options on individual securities, except to close out put options previously purchased.

 

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Selling (Writing) Call Options. When a Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted daily to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option written by a Fund is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. If a put option written by a Fund is exercised, the premium reduces the cost basis of the securities purchased by the Fund.

 

The risk associated with purchasing put and call options is limited to the premium paid. The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right to purchase, rather than sell, the instrument underlying the option at the option’s strike price. A call buyer typically attempts to participate in potential price increases of the instrument underlying the option with risk limited to the cost of the option if security prices fall. At the same time, the buyer can expect to suffer a loss if the underlying security price does not rise sufficiently to offset the cost of the option. The Funds will not purchase call options on individual securities, except to close out call options previously sold, but may sell, or write, call options on individual securities. Writing a call option obligates a Fund to sell or deliver the option’s underlying instrument in return for the strike price upon exercise of the option. The characteristics of writing call options are similar to those writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium a call writer offsets part of the effect of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases. The writer of an exchange traded put or call option on a security or an index of securities is required to deposit cash or securities or a letter of credit as margin to make mark-to-market payments of variation margin as the position becomes unprofitable. Written call options have an unlimited risk of loss if the value of the underlying investment increases.

 

Options on Indices. Each Fund that is permitted to enter into options transactions may purchase and sell (write) put and call options on any securities index based on securities in which the Fund may invest. Options on securities indices are similar to options on securities, except that the exercise of security index options is settled by cash payment and does not involve the actual purchase or sale of securities. In addition, these options are designed to reflect price fluctuations in a group of securities or segment of the securities market rather than price fluctuations in a single security. A Fund, in purchasing or selling index options, is subject to the risk that the value of its portfolio securities may not change as much as an index because the Fund’s investments generally will not match the composition of an index.

 

For a number of reasons, a liquid market may not exist and thus a Fund may not be able to close out an option position that it has previously entered into. When a Fund purchases an over-the-counter option, it will be relying on its counterparty to perform its obligations, and a Fund may incur additional losses if the counterparty is unable to perform.

 

During the fiscal six months ended May 31, 2017, none of the Funds entered into options contracts.

 

I. Futures Contracts:

Each Fund may enter into futures contracts.

 

When a Fund purchases a futures contract, it agrees to purchase a specified quantity of an underlying instrument at a specified future date or to make a cash payment based on the value of a securities index. When a Fund sells a futures contract, it agrees to sell a specified quantity of the underlying instrument at a specified future date or to receive a cash payment based on the value of a securities index. The price at which the purchase and sale will take place is fixed when a Fund enters into the contract. Any open contract would be recorded as variation margin receivable or payable on the statement of assets and liabilities to the extent such variation margin has not been received or paid and unrealized gain or loss on the statement of operations. When the contract is closed, the Fund realizes a gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed. This amount is included in net realized gain or loss on futures contracts in the statement of operations. Futures can be held until their delivery dates or the position can be (and normally is) closed out before then. There is no assurance, however, that a liquid market will exist when a Fund wishes to close out a particular position.

 

When a Fund purchases a futures contract, the value of the futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts tends to increase a Fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When a Fund sells a futures contract, by contrast, the value of its futures position tends to move in a direction contrary to the value of the underlying instrument. Selling futures contracts, therefore, tends to offset both positive and negative market price changes, much as if the underlying instrument has been sold. During the fiscal six months ended May 31, 2017, the Sentinel Low Duration Bond Fund sold futures contracts in U.S. Treasury 5-Year Notes to manage duration by hedging interest rate risk; the Sentinel Total Return Bond sold varying combinations of futures contracts in U.S. Treasury 10-Year Notes and U.S. Treasury 30-Year Bonds to manage duration by hedging interest rate risk; and the Sentinel Unconstrained Bond Fund sold futures contracts in U.S. Treasury 10-Year Notes to manage duration by hedging interest rate risk.

 

The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, when a Fund buys or sells a futures contract it is required to deposit "initial margin" with its custodian in a segregated account in the name of its futures broker, known as a futures commission merchant ("FCM"). Initial margin deposits are typically equal to a small percentage of the contract's value. If the value of either party's position declines, that party is required to make additional "variation margin" payments equal to the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. A Fund may be obligated to make payments of variation margin at a time when it is disadvantageous to do so. Furthermore, it may not always be possible for a Fund to close out its futures positions. Until it closes out a futures position, a Fund is obligated to continue to pay variation margin. In the event of the bankruptcy of an FCM that holds margin on behalf of a Fund, the Fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCMs other customers, potentially resulting in losses to the Fund. Futures contracts involve, to varying degrees, off-balance sheet risk of loss in excess of the variation margin disclosed on the Statement of Assets and Liabilities.

 

J. Swaps:

The Sentinel Balanced, Sentinel Government Securities, Sentinel Low Duration Bond, Sentinel Multi-Asset Income, Sentinel Total Return Bond and Sentinel Unconstrained Bond Funds may enter into swaps agreements.

 

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Notes to Financial Statements

 

Swaps are privately negotiated over-the-counter derivative products in which two parties agree to exchange payment streams calculated in relation to a rate, index, instrument or certain securities and a particular “notional amount”. Swaps may involve an interest rate (fixed or floating), a commodity price index, or a security, securities index or a combination thereof. A great deal of flexibility is possible in the way the products may be structured, with the effect being that the parties may have exchanged amounts equal to the return on one rate, index or group of securities for another. For example, in a simple fixed-to-floating interest rate swap, one party makes payments equivalent to a fixed interest rate, and the other make payments equivalent to a specified interest rate index. A fixed-income Fund may engage in simple or more complex swap transactions involving a wide variety of underlying instruments or rates.

 

Swaps are credit-intensive products. A Fund that enters into a swap transaction bears the risk of default (i.e., nonpayment) by the other party to the swap. The internal limitation below which deals with counterparty risk is intended to reduce this risk to the extent reasonably practicable, but it cannot eliminate entirely the risk that a counter-party to a swap, or another OTC derivative, will default. Consistent with current market practices, a Fund will generally enter into swap transactions on a net basis, and all swap transactions with the same party will be documented under a single master agreement to provide for a net payment upon default. In addition, a Fund’s obligations under an agreement will be accrued daily (offset against any amounts owing to the Fund) and any accrued, but unpaid, net amounts owed to the other party to a master agreement will be covered by the maintenance of a segregated account consisting of cash or liquid securities.

 

Interest rate and total return swaps generally do not involve the delivery of securities, other underlying assets, or principal. In such case, if the other party to an interest rate or total return swap defaults, a Fund’s risk of loss will consist of the payments that a Fund is contractually entitled to receive from the other party. If there is a default by the other party, a Fund may have contractual remedies under the agreements related to the transaction. A credit default swap involves a protection buyer and a protection seller. The Fund may be either a protection buyer or seller. The protection buyer makes periodic premium payments to the protection seller during the swap term in exchange for the protection seller agreeing to make certain defined payments to the protection buyer in the event certain defined credit events occur with respect to a particular security, issuer or basket of securities.

 

During the fiscal six months ended May 31, 2017, none of the Funds entered into swaps agreements.

 

K. Derivatives Transactions:

The following table summarizes the fair value of each Fund’s futures contracts held as of May 31, 2017 along with the related location on the accompanying Statement of Assets and Liabilities presented by primary underlying risk exposure:

 

   Purpose and Primary  Location on the        
Sentinel Fund  Underlying Risk Exposure  Statement of Assets and Liabilities*  Fair Value of Assets*  

Fair Value of Liabilities*

 
Low Duration Bond  Hedge interest rate risk.  Unrealized appreciation (depreciation) of          
      investments and foreign exchange  $-   $17,835 
                 
Total Return Bond  Hedge interest rate risk.  Unrealized appreciation (depreciation) of          
      investments and foreign exchange  $-   $90,314 
                 

 

*The fair value represents the cumulative unrealized appreciation (depreciation) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable or payable at that date.

 

Additionally, the amounts of realized and unrealized gains and losses on futures contracts recognized in each Fund’s earnings during the fiscal six months ended May 31, 2017 along with the related location on the accompanying Statement of Operations presented by primary underlying risk exposure are summarized as follows:

 

   Purpose and Primary  Location of Realized and Unrealized Gain  Net Realized   Net Change in Unrealized 
Sentinel Fund  Underlying Risk Exposure  (Loss) on the Statement of Operations  Gain (Loss)   Appreciation (Depreciation) 
Low Duration Bond  Hedge interest rate risk.  Futures contracts  $(112,803)  $(17,835)
                 
Total Return Bond  Hedge interest rate risk.  Futures contracts  $(566,084)  $(206,007)
                 
Unconstrained Bond  Hedge interest rate risk.  Futures contracts  $51,744   $(22,037)
                 

 

During the fiscal six months ended May 31, 2017, the average monthly notional value of short futures contracts for the months held was as follows:

 

   Average Monthly 
Sentinel Fund  Notional Value 
Low Duration Bond  $13,574,162 
Total Return Bond   29,255,792 

 

L. Repurchase Agreements:

 

Each Fund may enter into repurchase agreements as a means of making short-term investments, of seven days or less, and in aggregate amounts of not more than 25% of the net assets of a Fund. Each Fund, through its custodian, takes possession of the securities collateralizing repurchase agreements. The Funds’ policies require that all repurchase agreements entered into by the Funds provide that the market value of the collateral underlying the repurchase agreement at the time of purchase, and each subsequent business day, will always be at least equal to 102% of the repurchase agreement amount including accrued interest. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. There were no repurchase agreements outstanding at May 31, 2017

 

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Notes to Financial Statements

 

M. Dollar Rolls:

Sentinel Balanced Fund, Sentinel Government Securities Fund, Sentinel Low Duration Bond Fund, Sentinel Multi-Asset Income Fund, Sentinel Total Return Bond Fund and Sentinel Unconstrained Bond Fund may enter into dollar rolls in which the Funds sell securities for delivery in the current month, and simultaneously contract to repurchase similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Funds forego principal and interest paid on the securities. The Funds are compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. Realized gains and losses on sales, if applicable, are recorded on trade date plus one or trade date. There were no dollar roll transactions during the fiscal six months ended May 31, 2017.

 

N. Short Sales:

Sentinel Balanced Fund, Sentinel Government Securities Fund, Sentinel Low Duration Bond Fund, Sentinel Multi-Asset Income Fund, Sentinel Total Return Bond Fund and Sentinel Unconstrained Bond Fund may enter into short sales of agency mortgage-backed securities (“MBS”) that the Funds do not own, primarily as part of to-be-announced (“TBA”) swap transactions. A TBA swap transaction involves an agreement to purchase one agency MBS and a simultaneous agreement to sell a different agency MBS. Generally, a short sale involves the sale by a Fund of a security that it does not own with the hope of purchasing the same security at a later date at a lower price. A Fund may also enter into a short position through a forward commitment or a short derivative position through a futures contract or swap agreement. If the price of the security or derivative has increased during this time, then the Fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to a third party. Therefore, short sales involve the risk that a Fund's losses may be exaggerated (without a limit). By contrast, a loss on a long position arises from decreases in the value of the security and is limited by the fact that a security's value cannot decrease below zero. The Fund is also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price. Securities sold in short sale transactions and the interest payable on such transactions, if any, are reflected as a liability on the Statement of Assets and Liabilities. The Sentinel Government Securities Fund was the only Fund that executed short sale transactions during the fiscal six months ended May 31, 2017 with an average monthly market value for the months held of zero and no counter-party collateral requirements.

 

O. Securities Lending:

Under an agreement with SSB, the Funds may lend their securities, up to 50% of each Fund’s portfolio before taking into account the securities on loan, to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash in an amount equivalent to 102% (domestic) or 105% (foreign) of the market value of the loaned securities. Any adjustments in collateral required to maintain those levels due to market value fluctuations are made the next business day. The cash collateral is invested in a registered money market fund advised by State Street Global Advisors, a subsidiary of SSB. A portion of the income generated by the investment of the collateral, net of any rebates paid by SSB to the borrowers, is remitted to SSB as lending agent, and the remainder is retained by the Fund. The Fund receives from the borrower all accrued dividend and interest amounts while the securities are out on loan. The Fund retains certain ownership rights as to the loaned securities when retaining such rights is considered to be in the Fund’s best interest. Generally, in the event of borrower default, the Fund has the right to use the collateral to offset any losses incurred. In the event the Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a potential loss to the Fund. The Fund bears the risk of loss with respect to the investment of the collateral. The income earned by each Fund from securities lending is included in its Statement of Operations.

 

At May 31, 2017 the following Funds had securities on loan:

 

   Market Value   Market Value 
Sentinel Fund  Loaned Securities   Collateral 
Multi-Asset Income  $2,795,846   $2,864,470 

 

P. Line of Credit:

The Company has obtained access to an unsecured line of credit of up to $20,000,000 from SSB for temporary borrowing purposes. Each Fund may borrow up to 5% of its net assets, as calculated using net assets from the previous business day, with a maximum aggregate limit of $20,000,000. Borrowings under this arrangement bear interest at the current overnight Federal Funds rate or the London InterBank Offered Rate (LIBOR), whichever is greater, plus an additional 1.25%. In addition, a commitment fee equal to 0.25% per annum on the daily unused balance is paid quarterly to SSB and is included in Custodian fees on the Statement of Operations.

 

The average amount outstanding and weighted average interest rate for each Fund that utilized the line of credit during the fiscal six months ended May 31, 2017 was as follows:

 

   Daily Average   Weighted Average 
Sentinel Fund  Amount Outstanding   Interest Rate 
Low Duration Bond  $23,658    2.01%
Small Company   86,071    2.02%
Multi-Asset Income   2,352    2.01%
Total Return Bond   21,676    2.24%

 

At May 31, 2017, none of the Funds had an outstanding balance against this line of credit.

 

Q. Other:

Direct expenses of a Fund are charged to that Fund while common expenses of the Company are allocated proportionately based upon the Funds’ respective average net assets or number of shareholder accounts.

 

Expenses not charged to a specific Class of each Fund are allocated on the basis of daily net assets or number of shareholder accounts on a pro rata basis. Class specific expenses such as 12b-1 distribution fees, blue sky registration fees, certain transfer agency fees and NASDAQ listing fees are charged to the appropriate class.

 

Investment income and realized and unrealized gains and losses are allocated pro rata based on the value of shares outstanding for each Class within a Fund.

 

Earnings credits are received from SSB on cash balances and are reflected in the Statement of Operations as an expense offset. There were no expense offsets for the fiscal six months ended May 31, 2017.

 

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Notes to Financial Statements

 

The Sentinel International Equity and Sentinel Small Company Funds are subject to redemption fees of 2% on shares held 30 calendar days or less. The Sentinel Balanced, Sentinel Common Stock, Sentinel Government Securities, Sentinel Low Duration Bond, Sentinel Multi-Asset Income, Sentinel Sustainable Core Opportunities, Sentinel Total Return Bond and Sentinel Unconstrained Bond Funds are subject to, under certain circumstances, an excessive trading fee of 2% of the amount redeemed. Both the redemption fee and excessive trading fee are subject to certain exceptions under which they may not be charged. For the fiscal six months ended May 31, 2017 these fees totaled $8,874.

 

(3) Management Advisory Fee and Other Transactions with Affiliates:

Pursuant to Investment Advisory Agreements (“Advisory Agreements”), SAMI provides general supervision of the Funds’ investments. Under the Advisory Agreements, each Fund pays SAMI a monthly fee based on the annual rates shown below:

 

    Advisory  
Sentinel Fund   Fee Rate Average Daily Net Assets
  Each subject to:  
Balanced 0.55% First $200 million
Multi-Asset Income 0.50% Next $200 million
Total Return Bond 0.45% Next $600 million
  0.40% Next $1 billion
  0.35% In excess of $2 billion
  Each subject to:  
Common Stock 0.70% First $500 million
International Equity 0.65% Next $300 million
Small Company 0.60% Next $200 million
Sustainable Core Opportunities 0.50% Next $1 billion
  0.40% In excess of $2 billion
  Each subject to:  
Government Securities 0.45% First $500 million
Low Duration Bond 0.40% Next $500 million
  0.35% Next $1 billion
  0.30% Next $2 billion
  0.25% In excess of $4 billion
Unconstrained Bond 0.75% First $200 million
  0.70% Next $200 million
  0.65% Next $600 million
  0.60% Next $1 billion
  0.55% In excess of $2 billion

 

The Class A shares of all Funds have adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act. These distribution plans are herein referred to as the “A Plans”. Each of the Funds that offer Class C shares has also adopted a Class C distribution plan applicable to its Class C shares referred to as the “C Plans”. Sentinel Low Duration Bond Fund has adopted a distribution plan for its Class S shares referred to as the “S Plan” and Sentinel Total Return Bond Fund has adopted a distribution plan for its Class R3 shares referred to as the “R3 Plan”

 

Under the A Plans, each participating Fund pays to Sentinel Financial Services Company (the “Distributor”, a company in which SAMI and SASI, a wholly owned subsidiary of SAMI, are partners), a monthly fee at the maximum annual rate of (a) 0.25% of average daily net assets relating to Class A shares outstanding in the case of the Sentinel Balanced, Sentinel Common Stock, Sentinel International Equity, Sentinel Low Duration Bond, Sentinel Multi-Asset Income, Sentinel Small Company and Sentinel Sustainable Core Opportunities Funds or (b) 0.20% of average daily net assets relating to Class A shares outstanding in the case of the Sentinel Government Securities, Sentinel Total Return Bond and Sentinel Unconstrained Bond Funds. Prior to March 30, 2016, the Distributor was paid a monthly fee at the maximum annual rate of 0.30% of average daily net assets relating to Class A shares outstanding in the case of the Sentinel Small Company Fund. Such fees are used to reimburse the Distributor for eligible expenses incurred in connection with distribution and promotion of the shares and, up to 0.25%, for the servicing of shareholders of each participating Fund. No fee is paid with respect to any Fund shares purchased prior to March 1, 1993.

 

Under the C Plans applicable to the Class C shares, the Class C shares of each of the Sentinel Balanced, Sentinel Common Stock, Sentinel Government Securities, Sentinel International Equity, Sentinel Multi-Asset Income, Sentinel Small Company, Sentinel Total Return Bond and Sentinel Unconstrained Bond Funds pay to the Distributor a monthly fee at an annual rate of up to a total of 1.00% of average daily net assets. Such fees are used to reimburse the Distributor for eligible expenses incurred in connection with distribution and promotion of the shares and, up to 0.25%, for the servicing of shareholders of each participating Fund. In the first year after the purchase, this fee is designed to recover the initial sales commission of 1.00% paid by the Distributor to the selling financial intermediary. In subsequent years, the entire 1.00% may be paid to the financial intermediary as additional commission and/or, up to 0.25%, for service fees.

 

Under the R3 Plan applicable to the Sentinel Total Return Bond Fund Class R3 shares, these shares pay to the Distributor a monthly fee at an annual rate of up to a total of 0.50% of average daily net assets. Such fees are used to reimburse the Distributor for eligible expenses incurred in connection with distribution and promotion of the shares and, up to 0.25%, for the servicing of shareholders of the Fund. The entire distribution fee may be paid to the selling dealer.

 

Under the S Plan applicable to the Sentinel Low Duration Bond Fund Class S shares, these shares pay to the Distributor a monthly fee at an annual rate of up to a total of 0.50% of average daily net assets. Such fees are used to reimburse the Distributor for eligible expenses incurred in connection with distribution and promotion of the shares and, up to 0.25%, for the servicing of shareholders of the Fund. The entire distribution fee may be paid to the selling dealer.

 

The Class I shares and Class R6 shares do not pay distribution fees.

 

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Notes to Financial Statements

 

The Funds are not assessed distribution fees on shares owned by NLV Financial Corporation and its affiliates. Where NLV Financial Corporation and its affiliates held an investment for part of or all of the reporting period, this potentially results in overall distribution fees for that share class of less than the maximum limits involved. NLV Financial Corporation and its affiliates held investments for the entire period in the Sentinel Total Return Bond Fund Class R3 and Sentinel Unconstrained Bond Fund Classes A and C.

 

These asset-based fees, except the service fee component, are subject to aggregate limits imposed by the Financial Industry Regulatory Authority, Inc. (“FINRA”).

 

The Distributor will not be reimbursed for any un-reimbursed eligible expenses from any other Fund, or in any future year from any of the Funds.

 

The Distributor also receives a sales charge added to the net asset value received by the Funds on the sale of Class A shares. This compensation is not an expense of the Funds and does not affect their operating results. The Distributor has advised the Funds that it received sales charges aggregating $1,524,797 for the fiscal six months ended May 31, 2017. The Funds have been advised that the total distribution charges retained by the Distributor on the sale of shares amounted to $15,405 after allowances of $252,056 to Equity Services, Inc., a subsidiary of NLV Financial Corporation, and $1,257,336 to other investment dealers. During this same period, the distributor advised the Funds that it received $11,275 in contingent deferred sales charges from certain redemptions of Class A shares, $45,935 in contingent deferred sales charges from redemptions of Class C shares and no contingent deferred sales charges from redemptions of Class I, R3, R6 or S shares.

 

Each Director who is not an affiliate of SAMI receives an annual fee of $89,000 from the Company. The Lead Independent Director and chairs of the Audit and Governance Committees are each paid an additional annual fee of $8,000. The Fees paid to Directors are generally distributed quarterly on a pro rata basis. Directors are also reimbursed for travel and other out-of-pocket expenses incurred by them in connection with attending such meetings. Certain Directors of the Funds have chosen to have their fees d eferred in accordance with the Funds’ deferred compensation plan. This plan is intended to enable any eligible Director of the Company to forego a portion of current compensation in exchange for the promise by the Company to pay a benefit at a later time as set forth in this plan. These amounts are included in Directors’ and Chief Compliance Officer’s fees and expenses and Deferred compensation expenses on the Statement of Operations and Statement of Assets and Liabilities, respectively.

 

The Funds’ Chief Compliance Officer also serves as Chief Compliance Officer of Sentinel Variable Products Trust (“SVP”), a series investment company also advised by SAMI, SAMI itself, and the separate accounts of National Life Insurance Company which fund the variable life insurance and annuity products of SVP. Pursuant to an amended and restated agreement as of November 26, 2007, the Funds and SVP pay 50% of the costs incurred by these Chief Compliance Officer functions, including the salary and benefits of the Funds’ Chief Compliance Officer and his administrative assistant, and the other costs incurred by the Chief Compliance Officer. The Funds and SVP allocate their 50% share of these costs in proportion to net assets. Out-of-pocket costs which can be specifically allocated to a particular entity are so allocated.

 

Directors’ and Chief Compliance Officer’s fees and expenses for the fiscal six months ended May 31, 2017 were $743,100.

 

Pursuant to a Transfer Agency and Service Agreement between the Company and Boston Financial Data Services, Inc. ("BFDS"), BFDS serves as the transfer agent for the Funds. The Company also has an Amended and Restated Administration Agreement with SASI under which SASI provides a) general administrative services and b) transfer agency administrative and oversight services on behalf of the Company. Under the general administrative services portion of the agreement, the Funds receive administration services and pay SASI a monthly fee at an annual rate of 0.0375% of the first $4 billion of the Company’s aggregate average daily net assets; 0.035% of the next $3 billion of the Company’s aggregate average daily net assets and 0.0325% of the Company’s aggregate average daily net assets in excess of $7 billion. Under the transfer agency administrative and oversight services portion of the agreement, the Funds receive monitoring and oversight of transfer agency vendor services and are responsible for all costs and expenses relating to the individuals designated by SASI to perform such services on behalf of SASI. The number of such individuals to be designated by SASI to perform services is subject to approval by the Board of Directors. The Funds are also responsible for all charges of outside pricing services and other out-of-pocket expenses incurred by SASI in connection with the performance of its duties. The Funds may also reimburse SASI for sub-transfer agency, plan agent and similar fees paid by SASI to other entities that provide services to accounts underlying an omnibus account of record in accordance with policies approved by the Board of Directors.

 

Fees paid to SASI under the provisions of the Amended and Restated Administration Agreement for the fiscal six months ended May 31, 2017 were $1,346,555.

 

SAMI has contractually agreed to reimburse certain expenses paid by the Class I shares of each Fund to the extent necessary to prevent the total annual fund operating expense ratios of the Class I shares of each Fund, on an annualized basis, from exceeding the total annual fund operating expense ratio of the respective Class A shares of the same Fund, where applicable. This agreement will continue through March 31, 2018. This agreement may be terminated upon 90 days' notice by a majority of the non-interested directors of the Funds. For the fiscal six months ended May 31, 2017, none of the Funds were required to be reimbursed under this agreement.

 

SAMI has contractually agreed to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Sentinel Common Stock Fund Class R6 shares, on an annualized basis, to 0.65% of average daily net assets attributable to Class R6 shares through March 31, 2018. This agreement may be terminated upon 90 days' notice by a majority of the non-interested directors of the Fund. For the fiscal six months ended May 31, 2017, the total amount reimbursed under this agreement to Sentinel Common Stock Fund Class R6 was $10,355.

 

SAMI has contractually agreed to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Sentinel Small Company Fund Class R6 shares, on an annualized basis, to 0.73% of average daily net assets attributable to Class R6 shares through March 31, 2018. This agreement may be terminated upon 90 days' notice by a majority of the non-interested directors of the Fund. For the fiscal six months ended May 31, 2017, the total amount reimbursed under this agreement to Sentinel Small Company Fund Class R6 was $8,115.

 

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SAMI has contractually agreed to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Class A Shares of the Sentinel Total Return Bond Fund, on an annualized basis, to 0.89% of average daily net assets attributable to Class A shares until March 31, 2018. The Class C, Class I, Class R3 and Class R6 shares of this Fund also benefitted from this arrangement to the extent SAMI waived its advisory fees to meet this commitment. In addition, the Fund's investment advisor has contractually agreed to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Class R3 shares, on an annualized basis, to 1.19% of average daily net assets attributable to Class R3 shares through March 31, 2018, and to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Class R6 shares, on an annualized basis, to 0.69% of average daily net assets attributable to Class R6 shares through March 31, 2018. Each of these agreements may be terminated upon 90 days' notice by a majority of the non-interested directors of the Fund. For the fiscal six months ended May 31, 2017, the total amount reimbursed under these agreements to Sentinel Total Return Bond Fund Class A was $25,468, Sentinel Total Return Bond Fund Class R3 was $6,796 and Sentinel Total Return Bond Fund Class R6 was $7,396.

 

SAMI has contractually agreed to waive fees and/or reimburse certain expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement for Sentinel Unconstrained Bond Fund Class C shares, on an annualized basis, to 2.06% of average daily net assets attributable to Class C shares through March 31, 2018. This agreement may be terminated upon 90 days' notice by a majority of the non-interested directors of the Fund. For the fiscal six months ended May 31, 2017, no reimbursements were required to Sentinel Unconstrained Bond Fund Class C.

 

Certain of the fee waiver agreements contain provisions allowing for recoupment of waived fees or expenses reimbursed under certain circumstances. Recoupment of fees waived and expenses reimbursed is limited to the lesser of the applicable expense cap, if any, in effect at the time of the waiver and the applicable expense cap, if any, in effect at the time of recoupment, and any recoupment must occur within three years from the date of the related waiver or reimbursement.

 

As of May 31, 2017, NLV Financial Corporation and its affiliates held ownership in the Funds as follows:

 

  Approximate %
Sentinel Fund Ownership
Balanced - I 9.74%
Common Stock – R6 1.97%
International Equity - I 0.33%
Low Duration Bond - I 28.84%
Small Company – R6 2.21%
Sustainable Core Opportunities – I 7.75%
Total Return Bond – R3 100.00%
Total Return Bond – R6 100.00%
Unconstrained Bond – A 90.55%
Unconstrained Bond – C 92.51%
Unconstrained Bond – I 98.67%

 

(4) Fund Shares:

At May 31, 2017, 2.94 billion shares of one cent par value were authorized as follows:

 

Class A Authorized Shares
Balanced 40,000,000
Common Stock 75,000,000
Government Securities 170,000,000
International Equity 20,000,000
Low Duration Bond 200,000,000
Multi-Asset Income 25,000,000
Small Company 300,000,000
Sustainable Core Opportunities 40,000,000
Total Return Bond 50,000,000
Unconstrained Bond 40,000,000
  960,000,000
Class C  
Balanced 10,000,000
Common Stock 10,000,000
Government Securities 20,000,000
International Equity 10,000,000
Multi-Asset Income 15,000,000
Small Company 50,000,000
Total Return Bond 40,000,000
Unconstrained Bond 40,000,000
  195,000,000
   
Class I Authorized Shares
Balanced 40,000,000
Common Stock 40,000,000
Government Securities 40,000,000
International Equity 40,000,000
Low Duration Bond 40,000,000
Multi-Asset Income 40,000,000
Small Company 250,000,000
Sustainable Core Opportunities 40,000,000
Total Return Bond 300,000,000
Unconstrained Bond 40,000,000
  870,000,000
Class R3  
Total Return Bond 40,000,000
   
Class R6  
Common Stock 40,000,000
Small Company 40,000,000
Total Return Bond 40,000,000
  120,000,000
Class S  
Low Duration Bond 200,000,000
   
Total Allocated Shares 2,385,000,000
   
Total Unallocated Shares 555,000,000
   

 

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Notes to Financial Statements

 

Proceeds from sales and payments for redemptions on Fund shares as shown in the statement of changes in net assets are represented by the following number of shares.

 

    Shares Issued in    
    Reinvestment of   Net Increase
    Dividends and   (Decrease) in
Sentinel Fund Shares sold Distributions Shares Reacquired Shares Outstanding
Fiscal Six Months Ended May 31, 2017 (Unaudited)      
Balanced – A 728,826 170,892 1,261,004 (361,286)
Balanced – C 304,796 20,008 252,468 72,336
Balanced – I 450,845 10,613 185,281 276,177
Common Stock – A 924,108 1,875,462 3,872,841 (1,073,271)
Common Stock – C 176,606 129,143 360,110 (54,361)
Common Stock – I 1,747,345 726,735 2,434,600 39,480
Common Stock – R6 344,680 42,423 259,096 128,007
Government Securities – A 577,080 159,576 2,428,381 (1,691,725)
Government Securities – C 14,297 13,861 537,240 (509,082)
Government Securities – I 596,825 32,718 786,332 (156,789)
International Equity – A 663,423 44,226 992,578 (284,929)
International Equity – C 93,486 - 75,951 17,535
International Equity – I 1,487,314 30,455 673,150 844,619
Low Duration Bond - A 720,446 53,288 2,323,368 (1,549,634)
Low Duration Bond – I 1,109,434 16,351 1,141,530 (15,745)
Low Duration Bond - S 889,324 123,216 5,801,946 (4,789,406)
Multi-Asset Income – A 1,039,052 182,406 2,454,421 (1,232,963)
Multi-Asset Income – C 389,434 124,408 1,862,046 (1,348,204)
Multi-Asset Income – I 1,988,467 103,010 2,259,869 (168,392)
Small Company – A 8,910,309 10,260,092 19,079,129 91,272
Small Company – C 3,579,121 4,154,960 6,204,853 1,529,228
Small Company – I 21,843,121 3,158,901 10,498,446 14,503,576
Small Company – R6 4,077,940 206,789 473,626 3,811,103
Sustainable Core Opportunities – A 188,702 296,032 1,082,917 (598,183)
Sustainable Core Opportunities – I 370,239 19,324 174,979 214,584
Total Return Bond – A 841,141 66,495 4,418,080 (3,510,444)
Total Return Bond – C 47,127 17,836 1,101,247 (1,036,284)
Total Return Bond – I 3,139,347 205,364 15,388,994 (12,044,283)
Total Return Bond – R3 - 709 - 709
Total Return Bond – R6 - 773 - 773
Unconstrained Bond – A 43,523 2,965 82 46,406
Unconstrained Bond – C 5,363 447 9,093 (3,283)
Unconstrained Bond – I - 13,303 27,952 (14,649)

 

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Notes to Financial Statements

 

      Shares Issued in    
    Shares issued in Fund Reinvestment of   Net Increase
    Reorganizations Dividends and   (Decrease) in
Sentinel Fund Shares sold (see note 5) Distributions Shares Reacquired Shares Outstanding
Fiscal Year Ended November 30, 2016        
Balanced – A 1,565,029 – 714,717 2,065,116 214,630
Balanced – C 674,076 – 83,917 348,665 409,328
Balanced – I 375,707 – 32,255 304,459 103,503
Common Stock – A 2,011,742 – 2,743,659 5,680,117 (924,716)
Common Stock – C 229,138 – 187,505 531,259 (114,616)
Common Stock – I 2,399,401 – 1,261,092 6,597,450 (2,936,957)
Common Stock – R6 519,016 – 42,879 277,504 284,391
Government Securities – A 2,458,054 – 333,249 6,009,143 (3,217,840)
Government Securities – C 206,410 – 30,818 662,910 (425,682)
Government Securities – I 2,117,702 – 80,169 2,696,642 (498,771)
International Equity – A 1,553,659 – 243,606 1,107,176 690,089
International Equity – C 151,705 – 9,255 54,798 106,162
International Equity – I 2,607,571 – 34,334 901,887 1,740,018
Low Duration Bond - A 2,301,935 – 227,761 4,672,752 (2,143,056)
Low Duration Bond – I 604,135 – 95,923 4,188,836 (3,488,778)
Low Duration Bond - S 5,791,345 – 558,086 18,564,883 (12,215,452)
Multi-Asset Income – A 2,647,803 – 935,383 3,154,025 429,161
Multi-Asset Income – C 1,410,297 – 682,264 1,905,183 187,378
Multi-Asset Income – I 3,292,797 – 307,771 1,686,342 1,914,226
Small Company – A 13,503,919 21,750,338* 20,377,103 30,416,453 25,214,907
Small Company – C 3,214,030 3,030,573* 8,091,895 8,674,499 5,661,999
Small Company – I 16,511,503 1,122,267* 5,753,132 14,489,625 8,897,277
Small Company – R6 2,539,283 – * 23,450 189,301 2,373,432
Sustainable Core Opportunities – A 402,241 5,893,856** 324,336 1,446,834 5,173,599
Sustainable Core Opportunities – I 188,554 296,222** 21,956 204,492 302,240
Total Return Bond – A 4,068,123 – 345,735 25,938,355 (21,524,497)
Total Return Bond – C 400,482 – 46,433 1,527,315 (1,080,400)
Total Return Bond – I 12,386,007 – 639,377 31,360,953 (18,335,569)
Total Return Bond – R3 – – 1,296 – 1,296
Total Return Bond – R6 – – 1,409 – 1,409
Unconstrained Bond – A 3,630 – 8,233 583 11,280
Unconstrained Bond – C 7,377 – 1,606 9,469 (486)
Unconstrained Bond – I 47,594 – 33,861 3,088 78,367

 

* Please see note 5 for specific details of the Plan of Reorganization. The reorganization was completed following the close of business on March 30, 2016 by a tax-free exchange of 5,792,669 shares of the Sentinel Mid Cap Fund Class A for 21,750,338 shares of the Sentinel Small Company Fund Class A , a merger conversion ratio of 3.75480448; 746,855 shares of the Sentinel Mid Cap Fund Class C for 3,030,573 shares of the Sentinel Small Company Fund Class C, a merger conversion ratio of 4.05778094; 306,597 shares of the Sentinel Mid Cap Fund Class I for 1,122,267 shares of the Sentinel Small Company Fund Class I, a merger conversion ratio of 3.66039781; and none for the Sentinel Small Company Fund Class R6 because the Sentinel Mid Cap Fund did not offer a comparable share class.

 

** Please see note 5 for specific details of the Plan of Reorganization. The reorganization was completed following the close of business on March 30, 2016 by a tax-free exchange of 7,459,256 shares of the Sentinel Sustainable Mid Cap Opportunities Fund Class A for 5,893,856 shares of the Sentinel Sustainable Core Opportunities Fund Class A , a merger conversion ratio of 0.79013990; and 357,360 shares of the Sentinel Sustainable Mid Cap Opportunities Fund Class I for 296,222 shares of the Sentinel Sustainable Core Opportunities Fund Class I, a merger conversion ratio of 0.82891798.

 

From time to time the Funds may have a concentration of several shareholders holding a significant percentage of shares outstanding. Investment activities of these shareholders could have a material impact on the Funds. The latest Statement of Additional Information has more details about the Fund’s shareholders that own beneficially 5% or more of the voting stock of any class of any Fund or 25% or more of a Fund and is available, without charge, upon request by calling (800) 282-3863 or on-line at www.sentinelinvestments.com.

 

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Notes to Financial Statements

 

(5) Reorganizations:

Pursuant to a Plan of Reorganization approved by the Board on December 3, 2015, as of the close of business on March 30, 2016, Sentinel Small Company Fund acquired 100% of the voting equity interests, substantially all of the assets and assumed substantially all of the liabilities of Sentinel Mid Cap Fund, a separate series of the Company, in a tax-free reorganization in exchange for shares of the Sentinel Small Company Fund. The primary reason for the transaction was to combine a smaller Fund into a larger Fund with similar investment strategies and policies. For financial reporting purposes, the net assets received and shares issued by the Sentinel Small Company Fund were recorded at fair value; however, the Sentinel Mid Cap Fund’s cost of investments were carried forward to align ongoing reporting of the Sentinel Small Company Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The merger conversion ratios and number of shares are presented in Note (4) and the value of shares issued by the Sentinel Small Company Fund is presented in the Statement of Changes in Net Assets and in the schedule below. Net assets and acquired unrealized appreciation (depreciation) as of the reorganization date were as follows:

 

        Total  
        Net Assets of Acquired
    Total Total Acquiring Fund Fund Unrealized
Acquiring Acquired Net Assets of Net Assets of After the Appreciation/
Fund Fund Acquiring Fund Acquired Fund Acquisition (Depreciation)
           
Sentinel Small Company Fund Class A Sentinel Mid Cap Fund Class A $546,804,192 $ 97,558,873   $644,363,065 $ 9,958,785
           
Sentinel Small Company Fund Class C Sentinel Mid Cap Fund Class C 97,641,067 8,942,615   106,583,682 (5,233,947)
           
Sentinel Small Company Fund Class I Sentinel Mid Cap Fund Class I 209,050,954 5,382,625   214,433,579 7,617,354
           
Sentinel Small Company Fund Class R6 None 2,116,165 -   2,116,165 -
    $855,612,378 $111,884,113* $967,496,491 $12,342,192
           

 

* The net assets of the Sentinel Mid Cap Fund were primarily comprised of investments with a fair value of $112,084,254 just prior to the reorganization.

 

The financial statements reflect the operations of the Sentinel Small Company Fund for the period prior to the acquisition and the combined fund for the period subsequent to the acquisition. Assuming the acquisition had been completed on December 1, 2015, the beginning of the fiscal annual reporting period of the Sentinel Small Company Fund, Sentinel Small Company Fund’s pro forma results of operations for the year ended November 30, 2016 would be estimated as follows:

 

Increase (Decrease) in Net Assets from Operations  
Net investment income (loss) $  (3,621,210)
Net realized gain (loss) on investments, futures contracts and foreign currency transactions 95,636,043
Net change in unrealized appreciation (depreciation) 27,441,323
Net increase (decrease) in net assets from operations $119,456,156
   

 

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Sentinel Mid Cap Fund that have been included in the Sentinel Small Company Fund’s statement of operations since March 30, 2016.

 

Pursuant to a Plan of Reorganization approved by the Board on December 3, 2015, as of the close of business on March 30, 2016, Sentinel Sustainable Core Opportunities Fund acquired 100% of the voting equity interests, substantially all of the assets and assumed substantially all of the liabilities of Sentinel Sustainable Mid Cap Opportunities Fund, a separate series of the Company, in a tax-free reorganization in exchange for shares of the Sentinel Sustainable Core Opportunities Fund. The primary reason for the transaction was to combine a smaller Fund into a larger Fund with similar investment strategies and policies. For financial reporting purposes, the net assets received and shares issued by the Sentinel Sustainable Core Opportunities Fund were recorded at fair value; however, the Sentinel Sustainable Mid Cap Opportunities Fund’s cost of investments were carried forward to align ongoing reporting of the Sentinel Sustainable Core Opportunities Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The merger conversion ratios and number of shares are presented in Note (4) and the value of shares issued by the Sentinel Sustainable Core Opportunities Fund is presented in the Statement of Changes in Net Assets and in the schedule below. Net assets and acquired unrealized appreciation (depreciation) as of the reorganization date were as follows:

 

        Total  
        Net Assets of Acquired
    Total Total Acquiring Fund Fund Unrealized
Acquiring Acquired Net Assets of Net Assets of After the Appreciation/
Fund Fund Acquiring Fund Acquired Fund Acquisition (Depreciation)
Sentinel Sustainable Core Opportunities Fund Class A Sentinel Sustainable
Mid Cap Opportunities
Fund Class A		 $218,441,256 $116,823,960   $335,265,216 $6,526,618
           
Sentinel Sustainable Core Opportunities Fund Class I Sentinel Sustainable
Mid Cap Opportunities
Fund Class I		 14,715,877 5,888,166   20,604,043 1,664,519
    $233,157,133 $122,712,126* $355,869,259 $8,191,137
           

 

* The net assets of the Sentinel Sustainable Mid Cap Opportunities Fund were primarily comprised of investments with a fair value of $122,910,546 just prior to the reorganization.

 

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Notes to Financial Statements

 

The financial statements reflect the operations of the Sentinel Sustainable Core Opportunities Fund for the period prior to the acquisition and the combined fund for the period subsequent to the acquisition. Assuming the acquisition had been completed on December 1, 2015, the beginning of the fiscal annual reporting period of the Sentinel Sustainable Core Opportunities Fund, Sentinel Sustainable Core Opportunities Fund’s pro forma results of operations for the year ended November 30, 2016 would be estimated as follows:

 

Increase (Decrease) in Net Assets from Operations  
Net investment income (loss) $ 2,720,870
Net realized gain (loss) on investments, futures contracts and foreign currency transactions 7,257,185
Net change in unrealized appreciation (depreciation) 10,499,733
Net increase (decrease) in net assets from operations $20,477,788
   

 

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Sentinel Sustainable Mid Cap Opportunities Fund that have been included in the Sentinel Sustainable Core Opportunities Fund’s statement of operations since March 30, 2016.

 

(6) Investment Transactions:

Purchases and sales of investment securities (excluding short term obligations, forward foreign currency contracts, futures contracts, swaps and written options) for the fiscal six months ended May 31, 2017 were as follows:

 

  Purchases of Other Purchases of U.S. Sales of Other than Sales of U.S.
  than U.S. Government Government Direct U.S. Government Government Direct
  Direct and Agency and Agency Direct and Agency and Agency
Sentinel Fund Obligations Obligations Obligations Obligations
Balanced $ 7,361,520 $ 29,468,686 $ 12,285,449 $ 32,626,536
Common Stock   101,808,370   –   285,060,176   –
Government Securities   –   38,800,931   –   55,878,389
International Equity   32,792,196   –   28,144,883   –
Low Duration Bond   90,548,389   –   58,777,197   15,178,037
Multi-Asset Income   130,892,770   44,421,551   99,591,821   45,550,866
Small Company   532,082,863   –   508,538,318   –
Sustainable Core Opportunities   24,000,373   –   41,145,448   –
Total Return Bond   101,162,194   67,959,976   122,940,948   93,331,146
Unconstrained Bond   7,240,030   5,579,643   1,513,929   6,084,453

 

(7) Investment Transactions with Affiliated Investment Companies:

Pursuant to Section 17a-7 of the Investment Company Act of 1940, as amended, purchases and sales of investment securities are permitted among affiliated investment companies for the purposes of executing trades consistent with each Fund’s investment strategies and also minimizing or eliminating trading costs associated with external brokers. Compliance with Section 17a -7 is monitored internally by qualified personnel and reported to the Board at regular intervals. There were no Section 17a-7 purchases and sales for the fiscal six months ended May 31, 2017.

 

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(8) Distributions to Shareholders:

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized by a Fund after November 30, 2011, may get carried forward indefinitely, and retain their character as short-term and/or long-term losses. Prior to the Act, pre-enactment net capital losses incurred by a Fund were carried forward for eight years and treated as short-term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. Pre-enactment losses may be more likely to expire unused since the Act prescribes that post-enactment losses must be utilized first.

 

At November 30, 2016, the Company had tax basis capital losses which may be used to offset future capital gains as follows:

 

  Capital Loss  
Sentinel Fund Carry Forward Expiring on 11/30
Government Securities $ 45,630,221 No Expiration (Short-Term)
    12,826,885 No Expiration (Long-Term)
Total $ 58,457,106  
       
International Equity $ 229,675 No Expiration (Long-Term)
       
Low Duration Bond $ 2,065,072 2017
    16,447,278 2018
    32,731,463 2019
    20,336,624 No Expiration (Short-Term)
    55,664,865 No Expiration (Long-Term)
Total $ 127,245,302  
       
Total Return Bond $ 6,884,255 No Expiration (Short-Term)
    27,426,941 No Expiration (Long-Term)
Total $ 34,311,196  
       
Unconstrained Bond $ 126,768 No Expiration (Short-Term)
    204,572 No Expiration (Long-Term)
Total $ 331,340  
       

 

(9) Post Retirement Benefits:

Sentinel Group Funds, Inc. provides certain health care and life insurance benefits to certain of its retirees. The projected obligations for such benefits have been accrued and the total estimated liabilities as of May 31, 2017 included in the line item Accrued expenses on the Statement of Assets and Liabilities are as follows:

 

Sentinel Fund  
Balanced – A $ 6,791
Common Stock – A 56,114
Government Securities – A 5,826
Small Company – A 5,637

 

(10) Indemnifications:

In the normal course of business, the Funds enter into contracts that contain a variety of representations, which provide general indemnifications. The Funds’ maximum exposure under these contracts is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

 

(11) Subsequent Events:

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

 

The Board of Directors has approved the acquisition of certain assets related to the Sentinel Funds by Touchstone Advisors, Inc., subject to SEC and shareholder approvals. If approved, the transaction is expected to close on or around October 13, 2017. Please see the latest Prospectus for further details.

 

On June 7, 2017, the Board of Directors approved the liquidation of the Sentinel Unconstrained Bond Fund. The liquidation is expected to occur on or around August 25, 2017. Please see the latest Prospectus for further details.

 

Following the close of business on June 30, 2017, John Pelletier resigned from the Board of Directors.

 

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Actual and Hypothetical Expenses for Comparison Purposes

(Unaudited)

 

Example

As a shareholder of one or more of the Sentinel Funds, you incur two types of costs:

(1) transaction costs, including sales charges (loads) on purchase payments; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other Fund expenses. The example for each share class is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

 

Each example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from 12/01/16 through 05/31/17.

 

Actual Expenses

The first line of each share class entry in the table beginning on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid from 12/01/16 through 05/31/17” to estimate the expenses you paid on your account during this period.

 

Certain Account Fees and Minimum Account Size

Certain participant accounts are subject to the following recurring annual fees that are not included in the expenses shown in the table. If your account was subject to these fees, then the actual account values at the end of the period would be lower and the actual expenses for the period would be higher. Due to the expense of maintaining accounts with small balances, we reserve the right to liquidate and currently charge an annual maintenance fee of $25 to any account that has a current value less than $1,000 and that has been open for at least 24 months. This fee is deducted automatically from each such shareholder account on a quarterly pro-rated basis.

 

Miscellaneous Recurring Fees:

Retirement Custodial Accounts:  
Annual Custodial Fee per Social Security Number $15.00
Closeout Fee per Account $15.00
Transfer of Assets per Transaction $25.00
Service Fees:  
Express Mail Deliveries $15.00
Federal Funds Wire $20.00
Bounced check-writing checks $25.00
Bounced check received for deposit $25.00
Copy of check-writing check written prior to March 2008 $10.00

Recurring Fees for Services for Employee Benefit Plans

The Sentinel Destinations platform offers participant record keeping services to employer-sponsored retirement plans such as 401(k), pension or profit sharing plans. Plans using the Sentinel Destinations platform will be subject to additional fees for the services provided. Contact your financial advisor or Sentinel Administrative Services, Inc. for more information regarding Sentinel Destinations.

 

Hypothetical Example for Comparison Purposes

The second line of each share class entry in the table beginning on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of the share class and an assumed rate of return of 5% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a specific Sentinel Fund share class to other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. As with actual account values and expenses, the hypothetical account values and expenses shown in the table do not reflect any of the recurring fees outlined above. If your account is subject to such fees, then the hypothetical account values at the end of the period shown and the hypothetical expenses paid for the period should be increased before comparing these amounts to the corresponding amounts for other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

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Expenses

(Unaudited)

 

Actual and hypothetical expenses for each Sentinel Fund share class are provided in this table.

More detailed expenses data is contained the accompanying Financial Statements and related Notes.

 

      Total Beginning Ending Annualized Expenses Paid
    Total Return Return Account Value Account Value Expense from 12/01/16
Sentinel Fund Fund Class Description Percentage 12/01/16 05/31/17 Ratio through 05/31/17*
Balanced              
  A Shares Actual 8.25 $1,000.00 $1,082.54 1.04 $5.40
    Hypothetical+ 1.97 1,000.00 1,019.75 1.04 5.24
  C Shares Actual 7.83 1,000.00 1,078.32 1.81 9.38
    Hypothetical+ 1.59 1,000.00 1,015.91 1.81 9.10
  I Shares Actual 8.34 1,000.00 1,083.38 0.77 4.00
    Hypothetical+ 2.11 1,000.00 1,021.09 0.77 3.88
Common Stock              
  A Shares Actual 11.63 1,000.00 1,116.25 1.03 5.43
    Hypothetical+ 1.98 1,000.00 1,019.80 1.03 5.19
  C Shares Actual 11.17 1,000.00 1,111.67 1.83 9.63
    Hypothetical+ 1.58 1,000.00 1,015.81 1.83 9.20
  I Shares Actual 11.79 1,000.00 1,117.92 0.75 3.96
    Hypothetical+ 2.12 1,000.00 1,021.19 0.75 3.78
  R6 Shares Actual 11.84 1,000.00 1,118.43 0.65 3.43
    Hypothetical+ 2.17 1,000.00 1,021.69 0.65 3.28
Government Securities              
  A Shares Actual 1.36 1,000.00 1,013.60 0.94 4.72
    Hypothetical+ 2.02 1,000.00 1,020.24 0.94 4.73
  C Shares Actual 0.94 1,000.00 1,009.42 1.80 9.02
    Hypothetical+ 1.60 1,000.00 1,015.96 1.80 9.05
  I Shares Actual 1.45 1,000.00 1,014.54 0.75 3.77
    Hypothetical+ 2.12 1,000.00 1,021.19 0.75 3.78
International Equity              
  A Shares Actual 21.29 1,000.00 1,212.95 1.38 7.61
    Hypothetical+ 1.80 1,000.00 1,018.05 1.38 6.94
  C Shares Actual 20.53 1,000.00 1,205.32 2.60 14.30
    Hypothetical+ 1.20 1,000.00 1,011.97 2.60 13.04
  I Shares Actual 21.47 1,000.00 1,214.71 1.01 5.58
    Hypothetical+ 1.99 1,000.00 1,019.90 1.01 5.09
Low Duration Bond              
  A Shares Actual 1.41 1,000.00 1,014.07 1.03 5.17
    Hypothetical+ 1.98 1,000.00 1,019.80 1.03 5.19
  I Shares Actual 1.58 1,000.00 1,015.85 0.68 3.42
    Hypothetical+ 2.15 1,000.00 1,021.54 0.68 3.43
  S Shares Actual 1.36 1,000.00 1,013.57 1.09 5.47
    Hypothetical+ 1.95 1,000.00 1,019.50 1.09 5.49

 

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Expenses

 

      Total Beginning Ending Annualized Expenses Paid
    Total Return Return Account Value Account Value Expense from 12/01/16
Sentinel Fund Fund Class Description Percentage 12/01/16 05/31/17 Ratio through 05/31/17*
Multi-Asset Income              
  A Shares Actual 4.69 $1,000.00 $1,046.89 1.07 $5.46
    Hypothetical+ 1.96 1,000.00 1,019.60 1.07 5.39
  C Shares Actual 4.32 1,000.00 1,043.21 1.78 9.07
    Hypothetical+ 1.61 1,000.00 1,016.06 1.78 8.95
  I Shares Actual 4.76 1,000.00 1,047.63 0.84 4.29
    Hypothetical+ 2.07 1,000.00 1,020.74 0.84 4.23
Small Company              
  A Shares Actual 6.87 1,000.00 1,068.65 1.20 6.19
    Hypothetical+ 1.90 1,000.00 1,018.95 1.20 6.04
  C Shares Actual 6.63 1,000.00 1,066.31 1.93 9.94
    Hypothetical+ 1.53 1,000.00 1,015.31 1.93 9.70
  I Shares Actual 6.95 1,000.00 1,069.53 0.85 4.39
    Hypothetical+ 2.07 1,000.00 1,020.69 0.85 4.28
  R6 Shares Actual 7.19 1,000.00 1,071.93 0.73 3.77
    Hypothetical+ 2.13 1,000.00 1,021.29 0.73 3.68
Sustainable Core Opportunities            
  A Shares Actual 11.23 1,000.00 1,112.30 1.19 6.27
    Hypothetical+ 1.90 1,000.00 1,019.00 1.19 5.99
  I Shares Actual 11.37 1,000.00 1,113.66 0.93 4.90
    Hypothetical+ 2.03 1,000.00 1,020.29 0.93 4.68
Total Return Bond              
  A Shares Actual 2.80 1,000.00 1,028.04 0.89 4.50
    Hypothetical+ 2.05 1,000.00 1,020.49 0.89 4.48
  C Shares Actual 2.35 1,000.00 1,023.52 1.82 9.18
    Hypothetical+ 1.59 1,000.00 1,015.86 1.82 9.15
  I Shares Actual 2.87 1,000.00 1,028.71 0.76 3.84
    Hypothetical+ 2.11 1,000.00 1,021.14 0.76 3.83
  R3 Shares Actual 2.88 1,000.00 1,028.85 0.89 4.50
    Hypothetical+ 2.05 1,000.00 1,020.49 0.89 4.48
  R6 Shares Actual 2.99 1,000.00 1,029.92 0.69 3.49
    Hypothetical+ 2.15 1,000.00 1,021.49 0.69 3.48
Unconstrained Bond              
  A Shares Actual 1.90 1,000.00 1,018.98 1.24 6.24
    Hypothetical+ 1.88 1,000.00 1,018.75 1.24 6.24
  C Shares Actual 1.60 1,000.00 1,016.02 1.87 9.40
    Hypothetical+ 1.56 1,000.00 1,015.61 1.87 9.40
  I Shares Actual 2.01 1,000.00 1,020.08 1.02 5.14
    Hypothetical+ 1.98 1,000.00 1,019.85 1.02 5.14

 

*Expenses are equal to the annualized expense ratio for the share class, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period.

+ Hypothetical assumes a 5.00% annual return less expenses for the period.

 

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Directors

 

As of May 31, 2017, there were eight Directors of Sentinel Group Funds, Inc. Their names and other information about the six independent Directors responsible for the oversight of the ten Funds comprising Sentinel Group Funds, Inc. are set forth below. Information concerning the two affiliated Directors is set forth under “Officers” on the next page. The Statement of Additional Information has additional information about the Fund’s Directors and is available, without charge, upon request by calling (800) 282-3863.

 

  Position and Length    
Name, Address, Age of Time Served Principal Occupation(s) During Past Five Years Public Directorships

Gary Dunton (61)

National Life Drive

Montpelier, VT 05604

 Director, since 2013 Dunton Consulting (an insurance industry consulting firm) – Principal, since 2008; MBIA, Inc. – Chairperson, President and Chief Executive Officer, from 2004 to 2008; Sentinel Variable Products Trust (“SVPT”) – Trustee, since 2016 None

Deborah G. Miller (67)

National Life Drive

Montpelier, VT 05604

 Director, since 1995; Governance, Contracts and Nominating Committee Chairperson, from 2009 to 2011 Enterprise Catalyst Group (a management consulting firm) – Chief Executive Officer, since 2003; Ascendent Systems (a voice and messaging systems company) – Chief Executive Officer, from 2005 to 2007; SVPT – Trustee, since 2016 Libby Glass – Director, since 2003; Wittenberg University – Director, since 1998

John Pelletier (53)

National Life Drive

Montpelier, VT 05604

 Director, from 2013 to June 30, 2017 Center for Financial Literacy at Champlain College – Director, since 2010; Sterling Valley Consulting LLC (a financial services consulting firm) – Principal, since 2009; Vermont Financial Literacy Commission – Co-Chairperson, since 2015; Vermont’s Universal Children’s Higher Education Savings Account Program Advisory Committee – Chairperson, since 2015; Eaton Vance Corporation – Chief Legal Officer, from 2007 to 2008; Natixis Global Associates – Chief Operating Officer, from 2004 to 2007; General Counsel, from 1997 to 2004; SVPT – Trustee, from 2016 to June 30, 2017 None

John Raisian, Ph.D. (67)

National Life Drive

Montpelier, VT 05604

 Director, since 1996; Lead Independent Director, since 2013 Hoover Institution at Stanford University – Senior Fellow, since 1986; Director, from 1989 to 2015; SVPT – Trustee and Lead Independent Trustee, since 2016 None

Richard H. Showalter (69)

National Life Drive

Montpelier, VT 05604

 Director, since 2003; Audit, Compliance and Valuation Committee Chairperson, since 2012; Lead Independent Director, from 2005 to 2012 Dartmouth-Hitchcock – Senior Vice President and Treasurer, from 2007 to 2010; Dartmouth-Hitchcock Medical Center – Treasurer, from 1995 to 2010; Dartmouth-Hitchcock Alliance – Senior Vice President and Chief Financial Officer, from 1985 to 2008; Mary Hitchcock Memorial Hospital-Senior Vice President and Chief Financial Officer, from 1985 to 2007; Dartmouth-Hitchcock Clinic - Senior Vice President and Chief Financial Officer, from 1999 to 2007; SVPT – Trustee and Audit, Compliance and Valuation Committee Chairperson, since 2016 None

Angela E. Vallot (60)

National Life Drive

Montpelier, VT 05604

 Director, since 1996; Governance, Contracts and Nominating Committee Chairperson, since 2013 and from 2004 to 2009 VallotKarp Consulting (a diversity and inclusion consulting firm) – President, since 2004; Colgate-Palmolive Company (a consumer products company) – Vice President, from 2001 to 2003; Texaco, Inc. (an integrated energy company) – Director of Diversity, from 1997 to 2001; SVPT – Trustee and Governance, Contracts and Nominating Committee Chairperson, since 2016 None

 

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Officers

 

The names of and other information relating to the Directors who are officers and “interested persons” of the Funds as defined in the 1940 Act, as amended, and to the other officers of the Funds is set forth below.

 

  Position and Length    
Name, Address, Age of Time Served* Principal Occupation(s) During Past Five Years Public Directorships

Mehran Assadi (58)**
 National Life Drive

Montpelier, VT 05604

 Director and Chairperson, since 2015 National Life Holding Company (a mutual insurance company) and National Life Insurance Company (“National Life”) – President and Chief Executive Officer, since 2009; President – Life and Annuity, from 2005 to 2009; Interim Chief Information Officer, from 2003 to 2005; NLV Financial Corporation - President and Chief Executive Officer, since 2009; Executive Vice President, from 2008 to 2009; SVPT – Trustee and Chairperson, since 2009 None

Thomas H. Brownell (57)**
 National Life Drive

Montpelier, VT 05604

 Director, since 2015; President and Chief Executive Officer, since 2013 National Life – Executive Vice President, since 2013; Executive Vice President and Chief Investment Officer, from 2013 to 2016; Senior Vice President and Chief Investment Officer, from 2005 to 2013; Sentinel Asset Management, Inc. (“Advisor”) – President and Chief Executive Officer, since 2013; SVPT – Trustee, since 2016; President, since 2013 None

Gregory D. Teese (50)
 National Life Drive

Montpelier, VT 05604

 Chief Compliance Officer, since 2016 Advisor; National Variable Annuity Account II; National Variable Life Insurance Account – Chief Compliance Officer, since 2016; SVPT – Chief Compliance Officer, since 2016; Sentinel Financial Services Company(“SFSC”) – Chief Compliance Officer, since 2004; Vice President, since 1997; Equity Services, Inc. – Chief Compliance Officer, since 2004; Senior Vice President, since June 2009 N/A

Lisa F. Muller (50)

National Life Drive

Montpelier, VT 05604

 Secretary, since 2008 SASI – President, Chief Executive Officer and Senior Counsel, since 2015; Advisor – Senior Counsel and Chief Operating Officer, since 2015; SFSC – Senior Counsel, since 2011; Counsel, from 2008 to 2011; National Life; Advisor; SASI – Senior Counsel, from 2011 to 2015; Counsel, from 2008 to 2011; SVPT – Secretary, since 2008; State of Vermont, Department of Banking and Insurance – Assistant General Counsel, from 2006 to 2008; Davis, Polk and Wardwell – Associate, from 2005 to 2006 and from 1999 to 2002; U.S. District Court N.D. Illinois – Law Clerk, from 2002 to 2004 N/A

John K. Landy (57)

National Life Drive

Montpelier, VT 05604

 Vice President, since 2002 SASI – Senior Vice President, since 2006; SVPT – Vice President, since 2004; SASC – Senior Vice President, from 2004 to 2006; Vice President, from 1997 to 2004 N/A

Philip G. Partridge, Jr. (41)
 National Life Drive

Montpelier, VT 05604

 Chief Financial Officer, since 2014 Advisor – Vice President, since 2015; Chief Financial Officer, since 2014; SFSC – Vice President and Chief Financial Officer, since 2015; Vice President and Assistant Treasurer, from 2006 to 2015; Sentinel Administrative Services, Inc. (“SASI”) – Vice President and Chief Financial Officer, since 2015; SVPT – Vice President and Treasurer, since June 2016 N/A
Thomas P. Malone (61)
 National Life Drive
 Montpelier, VT 05604		 Vice President and Treasurer, since 1997 SASI– Vice President, since 2006; SVPT – Assistant Vice President and Assistant Treasurer, since June 2016; Vice President and Treasurer, from 2000 to June 2016; SASC – Vice President, from 1998 to 2006 N/A

Scott G. Wheeler (52)
National Life Drive

Montpelier, VT 05604

 Assistant Vice President and Assistant Treasurer, since 1998 SASI – Vice President, since 2007; Assistant Vice President, from 2006 to 2007; SVPT – Assistant Vice President and Assistant Treasurer, from 2004 to June 2016; SASC – Assistant Vice President, from 1998 to 2006 N/A

Lindsay E. Staples (35)
National Life Drive

Montpelier, VT 05604

 Assistant Secretary, since 2010 and from 2007 to 2009 National Life – Senior Securities Paralegal, since 2010; SVPT – Assistant Secretary, since 2010 and from 2007 to 2009; National Life – Senior Compliance Associate, from 2009 to 2010; National Life – Securities Paralegal, from 2007 to 2009; Holman Immigration – Paralegal, from 2006 to 2007; Wilmer Cutler Pickering Hale and Dorr – Paralegal, from 2004 to 2006 N/A

 

*Each Officer is elected by, and serves at the pleasure of, the Board of the Funds.

 

**Mr. Assadi is an “interested person” of the Funds because he is the President and Chief Executive Officer of the Advisor’s parent company and Mr. Brownell is an “interested person” of the Funds because he is the President and Chief Executive Officer of the Advisor.

 

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Investment Advisor

Sentinel Asset Management, Inc.

 

Principal Underwriter

Sentinel Financial Services Company

 

Counsel

Sidley Austin LLP

 

Custodian and Dividend Paying Agent

State Street Bank & Trust Company -

Kansas City

 

Transfer Agent and Shareholder Servicing Agent

Boston Financial Data Services, Inc.

 

Administrator

Sentinel Administrative Services, Inc.

Portfolio Proxy Voting Guidelines and Voting Record

Sentinel Funds portfolio proxy voting guidelines, and information on how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30th, are available without charge on-line at www.sentinelinvestments.com and at www.sec.gov, or by calling 1-800-282-FUND (3863).

 

Availability of Quarterly Schedule of Investments

Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (Call 1-800-SEC-0330 for more information.)

 

74

 

 

 

 

 

Privacy Notice To Our Customers

 

This notice is for your information and no response is required.

 

Sentinel Companies Privacy Policy:

Maintaining the privacy of the information you share with us in the process of doing business with the Sentinel Companies is extremely important to us. When you purchase a product or service from one of the Sentinel Companies, you enter into a relationship that is buit upon—and largely dependent upon—mutual trust. We want to assure you that we strive to conduct business in ways that are always worthy of that trust. Maintenance of our privacy practices and policies is a critical component of that resolve and we want you to know that we are committed to maintaining the highest level of confidentiality with all the information we receive from you.

 

How and Why We Obtain Personal Information:

In the conduct of our business with you, we often need to collect what is known as “nonpublic personal information.” This is information about you that we obtain in connection with providing a financial product or service to you. The Sentinel Companies may collect nonpublic personal information about you from:

 

·Applications or other forms, with information such as name, address, Social Security number, assets and income, employment status, birth date;

 

·Your transactions with us, our affiliates, or with others, such as account activity, payment history and products and service purchased;

 

·Visits to our website, including information from on-line forms and on-line information collecting devices commonly called “cookies”.

 

We or our representatives may also ask you for additional financial information in order to determine which products and services best meet your financial goals.

 

How We Protect Information:

We maintain strong safeguards to protect the information you have shared with us. We maintain physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information. All employees are required to comply with our established confidentiality procedures and policies.

 

We consider any nonpublic personal information that is provided to any representative of the Sentinel Companies in the course of a business transaction as being completely confidential.

 

We may also disclose all of the information described above to our affiliates in order to conduct business, such as providing service, account maintenance or information about other products and services offered by our affiliates. Our affiliates may include insurance companies, broker-dealers, investment advisors, investment companies, registered representatives, trust companies, insurance agent and brokers.

 

In addition, we may disclose all of the information above to third parties with which we contract for services, as permitted by law. We will contractually require these third parties to protect your information. Examples of these organizations include the following:

 

·Third parties that administer and support our products and services (such as third party administrators, printing companies, system vendors, consultants);

 

·Financial service entities (such as broker-dealers, insurance agents and brokers, banks, investment companies, registered representatives, investment advisors or companies that perform marketing services on behalf or our affiliates behalf).

 

We may disclose all of the information above under certain circumstances to government agencies and law enforcement officials (for examples, to help us prevent fraud or as may be required by law).

 

Our Commitment to Confidentiality:

We will not sell nonpublic personal information about you, our customers - or our former customers-nor will we disclose it to anyone, unless we have previously informed you in disclosures or agreements, have been authorized by you, or are permitted to do so by law. We restrict access to nonpublic personal information to those employees and associates who need that information in order to provide products or services to you.

 

If you decide to close your accounts or become an inactive customer, we will continue to adhere to the privacy policies and practices described in this notice.

 

The Sentinel Companies have a long history of dealing with confidential information in ways that are designed to assure your privacy. We are committed to consistently maintaining the highest standards for protecting the information you share with us, and ensuring the privacy of all our customers.

 

* This Privacy Notice applies to all of the accounts held or serviced by the following companies:

The Sentinel Funds

Sentinel Financial Services Company

 

 

Sentinel Investments is the unifying brand name for Sentinel Financial Services Company, Sentinel Asset Management, Inc., and Sentinel Administrative Services, Inc. Sentinel Funds are distributed by Sentinel Financial Services Company, Member FINRA, One National Life Drive, Montpelier, VT 05604, 800-282-FUND

www.sentinelinvestments.com

65507 MK7782(1011)

 

75

 

 

 

  

 

One National Life Drive, Montpelier, VT 05604

 

         
         
   

 

Sentinel is headquartered above the noise of Wall Street, in Montpelier, Vermont.

 

We are an integral part of National Life Group, a mutually-held family of financial service companies with roots dating back to 1848.

 

Sentinel’s range of actively managed mutual funds are designed to find attractive returns through the combination of quantitative analysis and deep fundamental research.

 

Learn more about Sentinel:

800.282.FUND

www.sentinelinvestments.com
@sentinelinvest

 

    
         
         

 

 

NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE

This report is authorized for distribution to prospective investors only when preceded by an effective Prospectus.

Consider a fund’s objectives, risks, charges and expenses carefully before investing. Summary and full prospectuses containing this and other information are available from your financial advisor or www.sentinelinvestments.com. Please read them carefully before you invest.

National Life Group® is a trade name of National Life Insurance Company, founded in Montpelier, VT in 1848 and its affiliates.

Sentinel Investments is the unifying brand name for Sentinel Financial Services Company, Sentinel Asset Management, Inc., and Sentinel Administrative Services, Inc.

Sentinel Funds are distributed by Sentinel Financial Services Company, Member FINRA, One National Life Drive, Montpelier, VT 05604, 800-282-FUND, www.sentinelinvestments.com

43604 SF0105(0717)

 

 

 

 

ITEM 2. CODE OF ETHICS

 

Not applicable to this semi-annual report.

 

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

 

Not applicable to this semi-annual report.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Not applicable to this semi-annual report.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

 

Not applicable.

 

ITEM 6. SCHEDULE OF INVESTMENTS

 

The complete schedule of investments is included in Item 1 of this Form N-CSR.

 

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

 

Not applicable.

 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

 

Not applicable.

 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

 

Not applicable.

 

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

Not applicable.

 

ITEM 11. CONTROLS AND PROCEDURES

 

The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the Registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

 

There were no changes in the Registrant's internal controls over financial reporting that occurred during the Registrant's most recently completed second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

  

 

 

ITEM 12. EXHIBITS

 

(a)(1) Not applicable.

 

(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are attached hereto as an exhibit.

 

(a)(3) Not applicable.

 

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith as an exhibit.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Sentinel Group Funds, Inc.

 

By: /s/ Thomas H. Brownell  
  Thomas H. Brownell,  
  President & Chief Executive Officer  

 

Date: August 3, 2017

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

By: /s/ Thomas H. Brownell  
  Thomas H. Brownell,  
  President & Chief Executive Officer  

 

Date: August 3, 2017

 

By: /s/ Philip G. Partridge, Jr.  
  Philip G. Partridge, Jr.  
  Chief Financial Officer  

 

Date: August 3, 2017