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TOTAL
BOND INDEX ACCOUNT
Following is a
summary of information about the Sentry Total Bond 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 to match the total return performance
of the Lehman Brothers Aggregate Bond Index. It invests
solely in the Vanguard® Total Bond Market Index Fund.
Investor
Profile
The Total Bond
Index Account may be suitable for investors seeking a high
level of income and a broadly diversified, fixed income
investment to balance the risks of a portfolio containing
stocks. Individuals must be willing and able to accept moderate
fluctuations in unit price. Individuals seeking long-term
growth of capital should not invest in the Total Bond Index
Account.
Investment
Strategy
The Vanguard Total
Bond Market Index Fund normally invests at least 80% of
assets in securities listed in the Lehman Brothers Aggregate
Bond Index. This index is a widely recognized measure of
the entire taxable U.S. bond market. The index consists
of more than 5,000 U.S. Treasury, federal agency, mortgage-backed,
and high-quality corporate securities. The Vanguard Total
Bond Market Index Fund invests in a large sample of bonds
that matches key characteristics of the index. To boost
returns, the fund holds a higher percentage than the index
in high quality, short-term corporate bonds and a lower
percentage in short-term Treasury securities.
Investment
Considerations
The Total Bond
Index Account takes a passive/index, unmanaged approach
and can be utilized as a stand-alone investment or in combination
with other Accounts. More aggressive investors can use the
Total Bond Index Account with Growth & Income Accounts
or Growth Accounts while more conservative investors could
combine it with the Guaranteed Fund.
PORTFOLIO
DATA
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Asset Allocation (as of 12-31-2009) |
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| Bonds | 98.90% | | Short-term Reserves | 1.10% |
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Key Facts (as of 12-31-2009) |
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| Number of Bonds | 3,362 | | Yield to Maturity | 3.6 | | Average Coupon | 4.9% | | Average Duration | 4.5 years | | Average Quality | AA1/AA2 | | Beta 3 year trailing (Barclays Capital U.S. Aggregate Bond Index) | 1.00 |
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| Distribution by Maturity (as of 12-31-2009) | | | Range | |
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| Under 1 Year | 2.40 | % | | | | 1-3 Years | 21.70 | % | | | | 3-5 Years | 25.80 | % | | | | 5-10 Years | 37.80 | % | | | | 10-20 Years | 5.60 | % | | | | 20-30 Years | 6.60 | % | | | | Over 30 Years | 0.10 | % | | | |
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Distribution by Issuer (as of 12-31-2009) |
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| Treasury/Agency | 38.00 | % | | Government Mortgage-Backed | 33.20 | % | | Industrial | 10.70 | % | | Finance | 7.20 | % | | Foreign | 4.10 | % | | Commercial Mortgage-Backed | 3.20 | % | | Utilities | 2.30 | % | | Other | 0.80 | % | | Asset-Backed | 0.50 | % | |
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| Vanguard Total Bond Market Index Fund* |
| Average
Annual Returns |
Annual
Total Returns |
| (as
of
02-28-2010)
|
(as
of 12-31)
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|---|
| | 1 Month | 0.20% | | | | 3 Months | 0.06% | | | | YTD | 1.77% | | | | 1 year | 9.03% | | | | 3 years | 6.09% | | | | 5 years | 5.27% | | | | 10 years | 6.14% | | | | | | | | | | | | | | | | |
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| | 1994 | (2.66)% | | | | 1995 | 18.18% | | | | 1996 | 3.58% | | | | 1997 | 9.44% | | | | 1998 | 8.58% | | | | 1999 | (0.76)% | | | | 2000 | 11.39% | | | | 2001 | 8.43% | | | | 2002 | 8.26% | | | | 2003 | 3.97% | | | | 2004 | 4.24% | | | | 2005 | 2.40% | | | | 2006 | 4.27% | | | | 2007 | 6.92% | | | | 2008 | 5.05% | | | | 2009 | 5.93% | |
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*
Investment management, brokerage fees and all other Vanguard expenses
total 0.20 percent per year and are deducted from the asset value
of the Vanguard Total Bond Market Index Fund. The investment manager
for the Vanguard Total Bond Market Index Fund is Kenneth Volpert,
CFA. *Performance figures for the Vanguard Total Bond Market Index
Fund include the reinvestment of all dividends and capital gain
distributions. All returns are net of mutual fund expenses. Money
invested by participants in the Sentry Life Total Bond 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 total returns of this Separate Account would be less than that
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
Total Bond 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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