The
Sentinel Funds
Class A, Class C, Class
S and Class I
Supplement dated March
15, 2012
to the Prospectus
dated March 30, 2011, as supplemented to date
Sentinel Sustainable Growth Opportunities Fund –
Changes to Portfolio Management Team and Name
Effective March 29, 2012 (the “Effective Date”), the
Sentinel Sustainable Growth Opportunities Fund (the “Fund”), a series of
Sentinel Group Funds, Inc., will change its portfolio management team and its
name. The Fund will retain its focus on investing in mid-capitalization
companies, but will modify its investment strategies to increase from 65% to
80% the amount of net assets that are, under normal circumstances, invested in
mid-capitalization companies, and to change the definition of
mid-capitalization company to that used by the Sentinel Mid Cap Fund. The Fund
will retain its sustainable and responsible investing focus.
Below is a summary description of these changes.
Management of the Fund
Portfolio Managers
On the Effective Date, the Fund’s portfolio managers will be
Betsy Pecor, Senior Vice President with Sentinel Asset Management, Inc.
(“Sentinel”), Carole Hersam, Vice President with Sentinel, and Matthew Spitznagle,
Vice President with Sentinel (collectively, the “PM Team”). Ms. Pecor is
currently a co-manager on three Sentinel Funds – the Sentinel Mid Cap Fund, the
Sentinel Mid Cap II Fund and the Sentinel Small Company Fund. She has co-managed
the Sentinel Mid Cap Fund since 2008, the Sentinel Mid Cap II Fund since
January 2012, and the Sentinel Small Company Fund since 2005. Ms. Hersam and
Mr. Spitznagle are both equity analysts with Sentinel’s small/mid cap team, and
work with Ms. Pecor on the Sentinel Mid Cap, Mid Cap II and Small Company
Funds. Ms. Hersam joined Sentinel in 2000, and Mr. Spitznagle joined Sentinel
in 2005.
Investment Strategies
With respect to the Fund, the PM Team will seek to invest
primarily in common stocks of mid-capitalization companies (defined as
companies that have, at the time of purchase, market capitalizations between
$500 million and $25 billion) that the PM Team believes are high quality, have
superior business models, solid management teams, sustainable growth potential
and are attractively valued. For portfolio construction purposes, the Fund
will use the Standard & Poor’s MidCap 400 Index as a sector-weighting
guide, generally using a plus or minus 25% weighting.
Investments will be subject to the environmental, social and
corporate governance screening process currently in place for the Fund.
The PM Team’s investment process will likely result in a
portfolio turnover rate higher than the Fund’s historical average during the
time immediately following the Effective Date until the time when the PM Team
has transitioned the Fund’s holdings to consist of securities that are
consistent with the PM Team’s investment style. The portfolio turnover during
this interim period may increase the Fund’s costs and reduce the Fund’s
performance.
Other Fund Changes
Name Change
On the Effective Date, the Fund will change its name from
Sentinel Sustainable Growth Opportunities Fund to Sentinel Sustainable Mid Cap
Opportunities Fund.
Adoption of Non-Fundamental Investment Policy
Effective with the Fund’s name change, the Fund will adopt a
non-fundamental investment policy of investing, under normal circumstances, at
least 80% of its assets in mid-capitalization companies.
Change of Fund Benchmarks
On the Effective Date, the Fund will compare its performance
to the Russell Midcap Index and the Standard & Poor’s MidCap 400 Index,
rather than the Russell Midcap Growth Index (the Fund’s current benchmark
index).