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SMALL CAP VALUE ACCOUNT

Following is a summary of information about the Sentry Small Cap Value 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 earn long-term capital growth from investments in common stocks or other equity securities. It is invested solely in the Perkins Small Cap Value Fund – I shares.

Investor Profile

The Small Cap Value Account may be suitable for investors with a very long-term investment horizon who are seeking long-term growth of capital through common stocks of small companies. Individuals must be willing and able to accept substantial change in unit price in the short and long term.

Investment Strategy

The Perkins Small Cap Value Fund – I shares pursues its investment objective by investing primarily in the common stocks of small companies whose stock prices are believed to be undervalued by the Fund's portfolio managers. The Fund invests, under normal circumstances, at least 80% of its assets in equity securities of small companies whose market capitalization, at the time of initial purchase, is less than the 12-month average of the maximum market capitalization for companies included in the Russell 2000 Value Index.

Investment Considerations

The Small Cap Value Account takes an actively managed, value approach to investing in companies with small capitalizations. A small capitalization company is defined as one that falls within the capitalization range of the Russell 2000 Index. This account can be used by investors seeking to diversify a portion of their retirement planning account into the small-cap value marketplace with an active (as opposed to a passive/index) management strategy that follows a value approach to investing.

PORTFOLIO DATA

Asset Allocation (as of 6-30-2010)
Stocks92.90%
Short-term Reserves7.10%
 
Key Facts (as of 6-30-2010)
Number of Stocks67
Price/Earnings Ratio12.5x
Foreign Holdings4.2%
Turnover Rate (Fiscal Year End October)29.5%
Beta (vs. Russell Midcap Value Index)0.82
 
Top Ten Stock Holdings (as of 6-30-2010)
Pinnacle West Capital Corp.
Yamana Gold, Inc.
Goodrich Corp.
Capital One Financial Corp.
PNC Financial Services Group
Willis Group Holdings, Ltd.
Ryder System, Inc.
Eaton Corp.
Stanley Black & Decker Inc.
CNA Financial Corp.
Ten Largest Holdings Equals 21.8% of Total Net Assets
 
Equity Sector Diversification (as of 6-30-2010)
Health Care9.20%
Consumer Staples4.60%
Financials26.10%
Consumer Discretionary19.30%
Materials3.00%
Utilities9.50%
Industrials14.50%
Energy5.90%
Information Technology7.90%
Total % of Portfolio 100.00%
Vanguard Selected Value Fund*
Average Annual Returns Annual Total Returns
(as of 7-31-2010) (as of 12-31)
  1 Month6.50% 
  3 Months(6.44)% 
  YTD3.82% 
  1 year21.26% 
  3 years(4.37)% 
  5 years1.44% 
  10 years8.53% 
  1997 17.40% 
  1998 (11.77)% 
  1999 (2.72)% 
  2000 17.45% 
  2001 14.99% 
  2002 (9.79)% 
  2003 35.21% 
  2004 20.38% 
  2005 10.67% 
  2006 19.11% 
  2007 (0.23)% 
  2008 (35.49)% 
  2009 36.26% 

* Investment management, brokerage fees and all other expenses of Perkins total 0.86 percent per year and are deducted from the asset value of the Perkins Small Cap Value Fund - Institutional Shares. Expense ratio includes a management fee as of 9/30/09; other expense components are as of 9/30/09. The investment manager for the Small Cap Value Fund - Institutional Shares is Robert H. Perkins, Todd Perkins and Justin Tugman, CFA. *Performance figures for Perkins Small Cap Value Fund - Institutional Shares include the reinvestment of all dividends and capital gain distributions. All returns are net of portfolio expenses. Money invested by participants in the Sentry Small Cap Value Account is then invested by Sentry Life Insurance Company or Sentry Life Insurance Company of New York into the underlying portfolio. 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 Janus administrative fee payment remitted to Sentry of .15% 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 Perkins Small Cap Value Fund - Institutional Shares 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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