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MID-CAP INDEX ACCOUNT

Following is a summary of information about the Sentry Mid Cap Index Account. Investors are advised to learn key data about an investment prior to making any investment decision.

Objective

The objective of this account is to seek long-term growth. It is invested solely in the Vanguard® Extended Market Index Fund.

Investor Profile

The Mid-Cap Index Account may be suitable for investors with a very long-term investment horizon who are seeking long-term growth and a simple way to invest in a very broadly diversified group of mid- and small-capitalization stocks. Individuals must be willing and able to accept substantial change in unit price in the short, long and very long term.

Investment Strategy

The Vanguard Extended Market Index Fund employs a "passive management" - or indexing - investment approach designed to track the performance of the S&P Transitional Completion Index, a broadly diversified index of small and medium-size U.S. companies. The fund holds a range of securities that, in the aggregate, approximate the full index in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield.

Investment Considerations

The Mid-Cap Index Account takes a passive/index approach to investing in companies with medium and small capitalizations. This account can be used by investors seeking to diversify a portion of their retirement planning account into the mid and small cap market place with a passive/index (as opposed to an active) management strategy.

PORTFOLIO DATA

Asset Allocation (as of 12-31-2009)
  
Stocks99.80%
Short-term Reserves0.20%
 
Key Facts (as of 12-31-2009)
  
Number of Stocks3,012
Price/Earnings Ratio301.7x
Turnover Rate (Fiscal Year End December)13.3
Foreign Holdings.4
Beta 3 year trailing (vs. Dow U.S. Total Stock Market Index)1.18
 
Top Ten Stock Holdings (as of 12-31-2009)
Crown Castle International Corp.
The Mosaic Co.
Delta Air Lines Inc.
Bunge, Ltd.
Vertex Pharmaceuticals Inc.
Discovery Communications Inc. Class A
BlackRock Inc.
Ultra Petroleum Corp.
PetroHawk Energy Corp.
Newfield Exploration
Top Ten Equals 4.0% of Portfolio
 
Top Sectors (as of 12-31-2009)
   
Financials18.30%
Information Technology16.00%
Industrials15.00%
Consumer Discretionary13.80%
Health Care12.80%
Energy7.20%
Materials6.40%
Utilities4.90%
Consumer Staples3.60%
Telecommunication Services2.00%
Total100.00%
Vanguard Extended Market Index Fund*
Average Annual Returns Annual Total Returns
(as of 02-28-2010) (as of 12-31)
    
 1 Month4.78% 
 3 Months8.76% 
 YTD1.25% 
 1 year69.08% 
 3 years(4.79)% 
 5 years2.63% 
 10 years0.52% 
    
    
    
    
 1994      (1.76)% 
 1995      33.80% 
 1996      17.65% 
 1997      26.73% 
 1998      8.32% 
 1999      36.22% 
 2000      (15.55)% 
 2001      (9.13)% 
 2002      (18.06)% 
 2003      43.43% 
 2004      18.71% 
 2005      10.29% 
 2006      14.27% 
 2007      4.33% 
 2008      (38.73)% 
 2009      37.43% 

*Investment management, brokerage fees and all other expenses of Vanguard total 0.25 percent per year and are deducted from the asset value of the Vanguard Extended Market Index Fund. The investment manager for the Vanguard Extended Market Index Fund is Donald M. Butler, CFA. *Performance figures for the Vanguard Extended Market Index Fund include the reinvestment of all dividends and capital gain distributions. All returns are net of portfolio expenses. Money invested by participants in the Sentry Life Mid-Cap Index Account is then invested by Sentry Life Insurance Company or Sentry Life Insurance Company of New York into the underlying mutual fund. A separate account fee for sales, marketing, taxes, account compliance, overhead and legal/audit fees will be applied to this Separate Account. The separate account fee will reduce the total returns of the Separate Account quoted above. The information contained in this fact sheet is for illustrative purposes only and is not an indication of future composition or performance. The investment return and principal value of this Separate Account will fluctuate along with changes in the Vanguard Extended Market Index Fund so that units, when redeemed, may be worth more or less than their original cost. Past performance is not a guarantee of future results.

Sentry Life Insurance Company, Stevens Point, Wisconsin (products not available in all states)
Sentry Life Insurance Company of New York, Syracuse, New York (products available in New York only)

Sentry’s property and casualty insurance coverages are underwritten by Sentry Insurance a Mutual Company, or its subsidiaries and affiliates Sentry Select Insurance Company, Middlesex Insurance Company, or Patriot General Insurance Company; Stevens Point, Wisconsin, and Sentry Lloyds of Texas, Round Rock, Texas. Companies not licensed in all states. Life insurance, pensions and group products are issued and administered by Sentry Life Insurance Company, Stevens Point, Wisconsin. In the State of New York, life insurance, pensions and group products are issued and administered by Sentry Life Insurance Company of New York, Syracuse, New York. Policies, coverages, and discounts are not available in all states.

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