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SMALL CAP GROWTH ACCOUNT - I

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

Objective

The objective of this account is to earn long-term capital growth. It is invested solely in the T. Rowe Price Small-Cap Value FundŽ.

The Small Cap Growth Account - I is available only to participants in retirement plans whose sponsors were Sentry customers on or before May 24, 2002. If this account is available in your plan, it will be included in your online enrollment and transfer forms.

Investor Profile

The Small Cap Growth Account - I may be suitable for investors with a very long-term investment horizon who are seeking long-term growth of capital by investing primarily in common stocks of small companies that are believed to be undervalued by the advisor. Individuals must be willing and able to accept substantial change in unit price in the short, long and very long term.

Investment Strategy

The fund seeks long-term capital growth by investing primarily in companies whose common stocks are believed to be undervalued. Reflecting a value approach to investing, the fund will seek the stocks of companies whose current stock prices do not appear to adequately reflect their underlying value as measured by assets, earnings, cash flow, or business franchises. Normally the fund will invest at least 80% of its total assets in the range of companies included in the Russell 2000 Index.

Investment Considerations

The Small Cap Growth Account - I takes an actively managed, value approach to investing in companies with small capitalizations. This account can be used by investors seeking to diversify a portion of their retirement planning account into the small cap market place with an active (as opposed to a passive/index) management strategy that follows a value approach with low turnover.

PORTFOLIO DATA

Asset Allocation (as of 06-30-2008)
  
Equities92.80%
Cash Reserves5.00%
Other1.90%
Bonds0.30%
 
Key Facts (as of 06-30-2008)
  
Number of Holdings291
Price/Earnings Ratio (12 month forward)15.0x
Turnover Rate (12 Months)15.40%
Beta (five year) (vs. Russell 2000 Value Index)0.85
Standard Deviation as of 12-31-200714.23%
 
Top Ten Stock Holdings (as of 06-30-2008)
Landstar Systems
Penn Virginia
Encore Acquisition
FTI Consulting Inc
TETRA Technologies
Whiting Petroleum
ProAssurance
Raven Industries
Genesee & Wyoming
Owens & Minor Inc
Top Ten Equals 17.8% of Portfolio
 
Top Sectors (as of 06-30-2008)
   
Industrials and Business Services25.40%
Financials17.20%
Energy12.40%
Information Technology10.50%
Consumer Discretionary8.10%
Health Care6.40%
Materials6.10%
Utilities4.00%
Consumer Staples2.20%
Trusts & Mutual Funds1.60%
Telecommunication Services0.70%
Total % of Portfolio94.60%
T. Rowe Price Small Cap Value Fund*
Average Annual Returns Annual Total Returns
(as of 07-31-2008) (as of 12-31)
    
 1 Month2.59% 
 3 Months0.65% 
 YTD(0.78)% 
 1 year(3.10)% 
 3 years5.42% 
 5 years12.85% 
 10 years11.18% 
    
    
    
    
 1994      (1.38)% 
 1995      29.29% 
 1996      24.61% 
 1997      27.92% 
 1998      (12.47)% 
 1999      1.19% 
 2000      19.77% 
 2001      21.94% 
 2002      (1.76)% 
 2003      36.46% 
 2004      25.69% 
 2005      8.74% 
 2006      16.24% 
 2007      (0.13)% 

Redemption Fees apply to this fund. Click here for more information.

* Investment management, brokerage fees and all other expenses of T. Rowe Price total 0.84 percent per year and are deducted from the asset value of the T. Rowe Price Small-Cap Value Fund. The investment manager for T. Rowe Price Small-Cap Value Fund is Preston G. Athey, CFA, CIC. *Performance figures for the T. Rowe Price Small-Cap Value 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 Small Cap Growth Account I 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 is reduced by the T. Rowe Price administrative fee payment remitted to Sentry of .05% annualized. 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 T. Rowe Price Small-Cap Value 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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