<PAGE> 1
BOARD OF DIRECTORS
Wayne R. Ashenberg
Thomas R. Copps
David W. Graebel
Dale R. Schuh
Steven J. Umland
OFFICERS
Van Allen Jones, Pres.
John A. Stenger, V.P.
William M. O'Reilly, Secy.
Thomas H. Weingarten, Treas.
INVESTMENT ADVISOR
Sentry Investment Management, Inc.
Stevens Point, Wisconsin
UNDERWRITER
Sentry Equity Services, Inc.
Stevens Point, Wisconsin
CUSTODIAN
Citibank, N.A.
New York, New York
LEGAL COUNSEL
Godfrey & Kahn
Milwaukee, Wisconsin
This report has been prepared for the general information of shareholders of
the Fund and is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective Prospectus which contains details
concerning sales charges and other pertinent information.
[SENTRY FUND LOGO]
- No Sales Charges
- No Redemption Fees
SENTRY FUND, INC.
SEMI-ANNUAL
REPORT
APRIL 30, 1995
<PAGE> 2
SENTRY FUND, INC.
1800 North Point Drive . Stevens Point, Wisconsin 54481
MESSAGE TO SHAREHOLDERS JUNE 5, 1995
We are pleased to provide you with this Sentry Fund, Inc. report which covers
operating results for the six-month period ended April 30, 1995. On a per
share basis, the Fund's investment returns continue to be very favorable as
indicated in the following chart:
<TABLE>
<CAPTION>
Average Annual
Total Return* Total Return*
-------------- -------------
<S> <C> <C>
1 Year 7.6% 7.6%
5 Year 69.8% 11.1%
10 Year 221.7% 12.4%
</TABLE>
The U.S. economy expanded at a 2.8% annual rate in the first quarter of 1995,
down from a 5.1% rate in the fourth quarter of 1994. This is the first time
since 1993 that economic growth has dipped below 3%.
The Commerce Department's index of leading economic indicators declined in both
February and March. This was the first back-to-back decline in the index in
over two years. The economy has clearly slowed from its 4% plus growth in 1994.
It appears that the Federal Reserve Board is close to achieving a "soft
landing" - slowing economic growth enough to relieve inflationary pressures
while avoiding a recession. If the Federal Reserve can achieve this, we would
expect no further interest rate increases during the remainder of 1995.
Both the bond and stock markets have performed extremely well in this
moderating economic climate. The yield on long-term U.S. Treasury Bonds has
declined by 100 basis points since late 1994 and the Dow Jones Industrial
Average has increased 19%. Advances of this magnitude are sometimes followed by
a pause or correction in the market, but as long as the economic backdrop
remains constructive, we believe the market can make further gains in 1995.
At the January 19, 1995 shareholders meeting, the following individuals were
elected directors of the Fund: Thomas R. Copps to a three-year term; Wayne R.
Ashenberg to a two-year term; and, Steven J. Umland to a one-year term.
4,058,318 shares were voted in favor and 9,232 shares were voted against this
slate. At this same meeting, Coopers & Lybrand L.L.P. was confirmed as the
Fund's independent accountants. 4,048,229 shares were voted in favor and
19,382 shares were voted to reject this confirmation.
Your continued support is appreciated, and we look forward to reporting our
12-month financial results in the Fund's Annual Report published in December.
Sincerely,
VAN ALLEN JONES
Van Allen Jones
President
*"Total Return" is calculated including reinvestment of all income dividends
and capital gain distributions. Results represent past performance, and do not
indicate future results. The value of an investment in the Fund and the return
on the investment both will fluctuate, and redemption proceeds may be higher or
lower than an investor's original cost. When first organized in 1970, the Fund
applied a sales charge to each share purchase. The Fund's sales charge was
eliminated on March 1, 1991.
<PAGE> 3
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1995
(Unaudited)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at
market value (cost $57,317,256) $80,971,399
Cash 30,139
Receivables:
Investment securities sold 649,840
Dividends 61,369
Total assets -----------
$81,712,747
LIABILITIES:
Investment securities purchased 1,628,745
Investment advisory fees 149,441
Transfer agent fees 4,089
Custodian fees 962
Professional services 12,751
Insurance coverage 8,700
Printing charges payable 4,342
Redemption payable 500
Total liabilities ----------- 1,809,530
-----------
NET ASSETS $79,903,217
===========
ANALYSIS OF NET ASSETS:
Capital shares $53,723,619
Undistributed net realized gain on
sales of investments 2,204,551
Unrealized appreciation of investments 23,654,143
Undistributed net investment income 320,904
-----------
Net assets applicable to outstanding shares $79,903,217
===========
Capital shares outstanding 5,291,796
===========
Net Asset Value and
Redemption and Offering Price per share $ 15.10
===========
<CAPTION>
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1995
(Unaudited)
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $719,988
Interest 106,173
Total investment income ----------- $ 826,161
Expenses:
Investment advisory fees 292,212
Transfer agent fees 14,519
Professional services 5,750
Printing, stationery and postage 4,994
Licenses and fees 13,606
Directors' fees 1,500
Other expenses 14,712
Total expenses ----------- 347,293
-----------
Net investment income $ 478,868
-----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments 2,213,580
Increase in unrealized appreciation
of investments 457,383
Net realized and unrealized gain -----------
on investments 2,670,963
Net increase in net assets resulting -----------
from operations $ 3,149,831
===========
</TABLE>
See accompanying notes to financial statements
<PAGE> 4
SENTRY FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended April 30, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income $ 478,868 $ 509,822
Net realized gain on sales
of investments 2,213,580 1,406,214
Decrease in unrealized
appreciation on investments 457,383 (970,683)
----------- -----------
Net change in net assets
resulting from operations 3,149,831 945,353
----------- -----------
DISTRIBUTIONS:
Dividends from net investment income (572,651) (771,677)
Distributions of net realized gains (3,696,207) (4,726,526)
----------- -----------
Total distributions to shareholders (4,268,858) (5,498,203)
----------- -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,792,271 4,053,819
Net asset value of shares issued to
shareholders in reinvestment
of distributions 4,227,738 5,446,362
----------- -----------
7,020,009 9,500,181
Cost of shares redeemed (5,619,719) (4,442,421)
----------- -----------
Increase in net assets derived
from capital share transactions 1,400,290 5,057,760
----------- -----------
NET ASSETS:
Total increase in net assets 281,263 504,910
Beginning of year 79,621,954 76,315,238
----------- -----------
End of year (including
undistributed net investment
income of $320,904 and
$314,660 respectively) $79,903,217 $76,820,148
=========== ===========
</TABLE>
See accompanying notes to financial statements.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Significant Accounting Policies
Sentry Fund, Inc. (Fund) is registered with the Securities and Exchange
commission under the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The following is a
summary of significant accounting policies followed by the Fund in the
preparation of its financial statements.
a. Security Valuation -- securities traded on any national securities
exchange or over-the-counter market are valued at the last reported sales
price; short-term securities are stated at amortized cost, which
approximates current value.
b. Federal Income and Excise Taxes -- no provision for federal income or
excise taxes is considered necessary since the Fund intends to distribute
to its shareholders substantially all of its taxable income, and to
otherwise comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies.
c. Investment Income and Security Transactions -- Security transactions are
accounted for on the trade date. Dividend income and distributions to
shareholders are recorded on the ex-dividend date and the record date,
respectively. Interest income is recognized when earned. Realized gains
and losses from securities transactions are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
2. Investment Advisory Fees and Other Transactions With Affliliates
Under terms of its investment advisory agreement with Sentry Investment
Management, Inc., the Fund pays an advisory fee equal to .75% of the average
daily net asset value of the Fund. However, under the terms of the
agreement, if the total annual expenses of the Fund (excluding taxes,
portfolio brokerage commissions and interest, but including investment
advisory fees) exceed 1-1/2% of the first $30,000,000 and 1% of the balance
of the average daily net asset value of the Fund in any one fiscal year, the
investment adviser will reimburse the Fund for such excess.
3. Purchases and Sales of Securities
Purchases and sales of common stock aggregated $13,097,292 and $15,538,831,
respectively.
<PAGE> 5
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENT SECURITIES -- April 30, 1995 SENTRY FUND, INC.
VALUE
SHARES (NOTE 1)
- ---------- ----------
<S> <C> <C>
COMMON STOCKS (96.4%)
BUSINESS & CONSUMER SERVICES (9.2%)
25,000 American Greetings Corp. . . . . . . . . . . . $ 681,250
74,250 Analysts Int'l Corp. . . . . . . . . . . . . . 1,874,813
25,000 Deluxe Corp . . . . . . . . . . . . . . . . . 771,875
67,500 FIServe, Inc. . . . . . . . . . . . . . . . . 1,788,750
25,000 H & R Block Inc. . . . . . . . . . . . . . . . 1,053,125
110,000 Richey Electronics Inc. . . . . . . . . . . . 687,500
39,500 Technalysis Corporation . . . . . . . . . . . 474,000
DRUG & HEALTH CARE (3.4%)
41,200 Bristol-Myers Squibb Co. . . . . . . . . . . . 2,683,150
ELECTRICAL EQUIPMENT (2.4%)
33,600 General Electric Co. . . . . . . . . . . . . . 1,881,600
ELECTRONICS (5.5%)
40,000 Int'l. Business Machines Corp. . . . . . . . . 3,790,000
40,000 Recoton Corp. . . . . . . . . . . . . . . . . 640,000
ENERGY (11.5%)
10,000 Anadarko Petroleum Corp. . . . . . . . . . . . 411,250
75,700 Belden & Blake Corp. . . . . . . . . . . . . . 1,116,575
27,300 Cabot Oil & Gas Corp. . . . . . . . . . . . . 423,150
113,000 Coho Energy Inc. . . . . . . . . . . . . . . . 607,375
15,000 Devon Engergy Corp. . . . . . . . . . . . . . 311,250
38,000 Dual Drill Co. . . . . . . . . . . . . . . . . 332,500
15,000 Enterra Corp. . . . . . . . . . . . . . . . . 273,750
5,000 Exxon Corporation . . . . . . . . . . . . . . 348,125
45,000 Hornbeck Offshore Services . . . . . . . . . . 618,750
15,000 Newpark Resources Inc. . . . . . . . . . . . . 333,750
60,000 Oceaneering International Inc. . . . . . . . . 600,000
190,000 Pool Energy Services Co. . . . . . . . . . . . 1,615,000
140,000 Pride Petroleum Services Inc. . . . . . . . . 1,120,000
10,000 Texaco, Inc. . . . . . . . . . . . . . . . . . 683,750
20,000 USX-Marathon Group . . . . . . . . . . . . . . 375,000
FINANCIAL (12.9%)
20,000 Boatmen's Bancshares Inc. . . . . . . . . . . 665,000
50,000 First Financial Corp. (Wisc.). . . . . . . . . 781,250
20,000 Firstar Corp. . . . . . . . . . . . . . . . . 577,500
40,400 National City Corp. . . . . . . . . . . . . . 1,105,950
110,000 PNC Bank Corp. . . . . . . . . . . . . . . . . 2,763,750
75,000 Security Capital Corp. . . . . . . . . . . . . 3,525,000
45,000 Washington Fed. S&L (Seattle). . . . . . . . . 922,500
FOODS & RESTAURANT (13.7%)
70,000 IHOP Corp. . . . . . . . . . . . . . . . . . . 1,557,500
45,000 Int'l Dairy Queen Inc. Class A . . . . . . . . 855,000
41,666 Lancaster Colony Corp. . . . . . . . . . . . . 1,447,894
120,000 McDonald's Corp. . . . . . . . . . . . . . . . 4,200,000
20,000 Ralston-Ralston Purina Group . . . . . . . . . 950,000
100,000 Richfood Holdings Inc. . . . . . . . . . . . . 2,000,000
HOUSING (1.0%)
75,000 American Homestar Corp. . . . . . . . . . . . 825,000
LEISURE (0.8%)
25,000 Arctco, Inc. . . . . . . . . . . . . . . . . . 356,250
10,000 Carnival Corp. Class A . . . . . . . . . . . . 248,750
MANUFACTURING (2.4%)
25,000 Baldwin Piano & Organ Co. . . . . . . . . . . 290,625
100,000 Group Technologies Corp. . . . . . . . . . . . 550,000
53,900 Medar Corp. . . . . . . . . . . . . . . . . . 505,313
50,000 Plexus Corp. . . . . . . . . . . . . . . . . . 600,000
RETAIL (12.6%)
70,000 Baker J Inc. . . . . . . . . . . . . . . . . . 875,000
80,000 Best Buy Co., Inc. . . . . . . . . . . . . . . 2,190,000
20,000 Catherines Stores Corp. . . . . . . . . . . . 175,000
120,000 Charming Shoppes, Inc. . . . . . . . . . . . . 652,500
20,000 CPI Corp. . . . . . . . . . . . . . . . . . . 335,000
20,000 Dress Barn Inc. . . . . . . . . . . . . . . . 192,500
27,600 K Mart Corp. . . . . . . . . . . . . . . . . . 382,950
22,500 Kohl's Corp. . . . . . . . . . . . . . . . . . 1,006,875
50,000 Mac Frugal's Bargain-Clothing, Inc. . . . . . 737,500
75,000 Walgreen Company . . . . . . . . . . . . . . . 3,525,000
TOBACCO (8.3%)
60,000 Philip Morris Cos., Inc. . . . . . . . . . . . 4,065,000
90,000 UST, Inc. . . . . . . . . . . . . . . . . . . 2,531,250
TRANSPORTATION (12.7%)
9,100 Bandag Inc. Class A . . . . . . . . . . . . . 503,913
27,000 Cherry Corp. The Class A . . . . . . . . . . . 391,500
27,000 Cherry Corp. The Class B . . . . . . . . . . . 371,250
90,000 Custom Chrome Inc. . . . . . . . . . . . . . 1,732,500
36,000 Excel Industries Inc. . . . . . . . . . . . . 459,000
120,000 Harley-Davidson Inc. . . . . . . . . . . . . . 2,865,000
50,000 HI-LO Automotive Inc. . . . . . . . . . . . . 418,750
50,000 Methode Electronics Inc. Class A. . . . . . . 862,500
10,000 Smith (A O) Corp. . . . . . . . . . . . . . . 238,750
114,000 Starcraft Automotive Corp. . . . . . . . . . . 741,000
50,000 Wabash National Corp. . . . . . . . . . . . . 1,556,250
-----------
TOTAL COMMON STOCKS . . . . . . . . . . . . . 77,032,556
(COST $53,378,413) -----------
PRINCIPAL
AMOUNT
---------
SHORT-TERM SECURITIES (4.9%)
COMMERCIAL PAPER - DISCOUNTED
842,000 C.I.T. Group Holdings, Inc.
Note due 05/01/95 842,000
914,000 Ford Motor Credit Corp.
Note due 05/02/95 913,849
581,000 Associates Corp. of North America
Note due 05/02/95 580,616
577,000 American General Finance Corp.
Note due 05/05/95 576,241
1,028,000 Heller Financial Inc.
Note due 05/05/95 1,026,137
-----------
TOTAL SHORT-TERM SECURITIES 3,938,843
(COST $3,938,843) -----------
TOTAL INVESTMENTS (101.3%) 80,971,399
(COST $57,317,256)
CASH AND RECEIVABLES
LESS LIABILITIES (-1.3%) (1,068,182)
-----------
NET ASSETS (100%) $79,903,217
===========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
SENTRY FUND, INC.
FINANCIAL HIGHLIGHTS
The following presents information relating to a share of capital stock of
the Fund outstanding for the entire period:
<TABLE>
<CAPTION>
YEAR ENDED OCTOBER 31,
---------------------------------------------------------------
FOR SIX MONTHS
ENDING 4-30-95 1994 1993 1992 1991 1990
-------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 15.39 $ 15.93 $ 15.17 $ 15.34 $ 12.04 $ 13.72
------- ------- ------- ------- ------- -------
Income From Investment Operations
Net Investment Income .09 .18 .23 .29 .36 .36
Net Realized and Unrealized Gains
(Losses) on Investments .44 .53 1.12 1.03 3.95 (.92)
------- ------- ------- ------- ------- -------
Total from Investment Operations .53 .71 1.35 1.32 4.31 (.56)
Less Distributions
Dividends From Net Investment Income (.11) (.22) (.23) (.35) (.36) (.39)
Distribution From Net Realized Gains (.71) (1.03) (.36) (1.14) (.65) (.73)
------- ------- ------- ------- ------- -------
Total Distributions (.82) (1.25) (.59) (1.49) (1.01) (1.12)
Net Asset Value End of Period $ 15.10 $ 15.39 $ 15.93 $ 15.17 $ 15.34 $12.04
======= ======= ======= ======= ======= =======
Total Return 3.98% 4.86% 9.17% 9.09% 37.59% -4.59%
Net Assets, End of Period (in Thousands) $79,903 $79,622 $76,315 $69,454 $60,931 $43,866
Ratio of Expenses to Average Net Assets .45% .86% .87% .88% .84% .69%
Ratio of Net Investment Income to
Average Net Assets .61% 1.19% 1.48% 1.95% 2.56% 2.84%
Portfolio Turnover Rate 17.57% 16.31% 22.34% 12.58% 2.53% 29.85%
</TABLE>
DIVIDEND NOTICE
On June 5, 1995 The Fund Directors declared a dividend from net investment
income of .06 per share and a long-term capital gain distribution of .05 per
share, payable June 8, 1995 to shareholders of record June 6, 1995.
