<PAGE> 1
BOARD OF DIRECTORS
Wayne R. Ashenberg
Thomas R. Copps
David W. Graebel
Dale R. Schuh
Steven J. Umland
OFFICERS
Steven R. Boehlke, 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, INC. LOGO]
- - No Sales Charges
- - No Redemption Fees
SENTRY FUND, INC.
SEMI-ANNUAL
REPORT
APRIL 30, 1996
<PAGE> 2
[SENTRY FUND, INC. LETTERHEAD]
MESSAGE TO SHAREHOLDERS JUNE 5, 1996
We are pleased to provide you this Sentry Fund, Inc. report covering operating
results for the six-month period ended April 30, 1996. The Fund's investment
returns are indicated in the following chart:
<TABLE>
<CAPTION>
Average Annual
Total Return* Total Return*
------------- -------------
<S> <C> <C>
1 Year 23.8% 23.8%
5 Year 71.1% 11.3%
10 Year 185.3% 11.1%
</TABLE>
The U.S. economy accelerated in the first quarter of 1996 to a 2.8% real rate
of growth. This compares to growth of 0.6% in the final quarter of 1995.
Current estimates call for the economy to grow in excess of 3% in the second
quarter. Clearly, economic growth has increased.
In response to faster economic growth, long-term government bond rates have
risen dramatically. After bottoming under 6% at the end of 1995, these rates
have steadily increased to slightly over 7%. This rise in interest rates also
reflects some worrisome trends in energy and grain prices.
We believe economic growth will moderate in the second half of 1996 which
should allow interest rates to decline from their present levels. We believe
this is crucial to the stock market. If interest rates were to increase much
further, bonds could provide stiff competition to equities.
After rising dramatically in the first two months of 1996, the stock market has
since moved sideways. While a short-term correction is possible after such a
rise, we remain optimistic on the long-term outlook for equities.
At the January 18, 1996 shareholders meeting, Dale R. Schuh and Steven J.
Umland were elected Directors of the Fund, each for a term of 3 years. There
were 3,788,458 shares voted in favor and 10,073 shares voted against this
slate. At the same meeting, Coopers & Lybrand L.L.P. was confirmed as the
Fund's independent accountants with 3,766,286 shares voted in favor and 32,245
shares 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,
Steven R. Boehlke
Steven R. Boehlke
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
SENTRY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at market
value (cost $57,724,732) $94,465,926
Cash 129,256
Receivables:
Investment securities sold 49,750
Dividends 64,182
----------
Total assets $94,709,114
LIABILITIES:
Investment securities purchased 759,750
Investment advisory fees 172,524
Transfer agent fees 2,084
Custodian fees 1,055
Professional services 12,976
Insurance coverage 6,900
Printing charges payable 5,477
----------
Total liabilities 960,766
-----------
NET ASSETS $93,748,348
===========
ANALYSIS OF NET ASSETS:
Capital shares $55,759,925
Undistributed net realized gain on
sales of investments 930,708
Unrealized appreciation of investments 36,741,194
Undistributed net investment income 316,521
-----------
Net assets applicable to outstanding shares $93,748,348
===========
Capital shares outstanding 5,425,576
===========
Net Asset Value and
Redemption and Offering Price per share $ 17.28
===========
</TABLE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1996
(UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $687,969
Interest 165,064
-------
Total investment income $853,033
Expenses:
Investment advisory fees 336,779
Transfer agent fees 12,450
Professional services 7,752
Printing, stationery and postage 5,477
Licenses and fees 14,319
Directors' fees 1,500
Other expenses 7,807
-------
Total expenses 386,084
--------
Net investment income $466,949
--------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments 952,400
Increase in unrealized appreciation
of investments 10,191,549
----------
Net realized and unrealized gain
on investments 11,143,949
----------
Net increase in net assets resulting
from operations $11,610,898
===========
</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, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income $ 466,949 $ 478,868
Net realized gain on sales
of investments 952,400 2,213,580
Increase in unrealized
appreciation on investments 10,191,549 457,383
---------- ---------
Net change in net assets
resulting from operations 11,610,898 3,149,831
---------- ---------
DISTRIBUTIONS:
Dividends from net investment income (624,265) (572,651)
Distributions of net realized gains (5,514,341) (3,696,207)
--------- ---------
Total distributions to shareholders (6,138,606) (4,268,858)
--------- ---------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 18,396,004 2,792,271
Net asset value of shares issued to
shareholders in reinvestment
of distributions 6,089,561 4,227,738
---------- ---------
24,485,565 7,020,009
Cost of shares redeemed (20,583,199) (5,619,719)
---------- ---------
Increase in net assets derived
from capital share transactions 3,902,366 1,400,290
--------- ---------
NET ASSETS:
Total increase in net assets 9,374,658 281,263
Beginning of year 84,373,690 79,621,954
---------- ----------
End of year (including
undistributed net investment
income of $316,521 and
$320,904 respectively) $93,748,348 $79,903,217
========== ==========
</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 AFFILIATES
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 l-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 $16,860,748 and $14,062,980,
respectively.
<PAGE> 5
PORTFOLIO OF INVESTMENTS SECURITIES--April 30, 1996 SENTRY FUND, INC.
<TABLE>
<CAPTION>
Value
Shares (Note 1)
- ------ --------
<S> <C> <C>
COMMON STOCKS (96.6%)
BUSINESS & CONSUMER SERVICES (14.3%)
25,000 American Greetings Corp.............. $ 690,625
74,250 Analysts Int'l Corp.................. 2,802,938
25,000 Deluxe Corp.......................... 875,000
67,500 FIServe, Inc......................... 2,058,750
25,000 H & R Block Inc...................... 878,125
75,000 Jaco Electronics Inc................. 853,125
150,000 Richardson Electronics............... 1,621,875
239,500 Richey Electronics Inc............... 3,113,500
39,500 Technalysis Corporation.............. 538,187
DRUG & HEALTH CARE (6.4%)
41,200 Bristol-Myers Squibb Co.............. 3,388,700
40,000 Steris Corp.......................... 1,300,000
120,000 Uromed Corp.......................... 1,260,000
ELECTRICAL EQUIPMENT (2.8%)
33,600 General Electric Co.................. 2,604,000
ELECTRONICS (7.4%)
40,000 Int'l Business Machines Corp......... 4,300,000
140,000 Recoton Corp......................... 2,660,000
ENERGY (10.9%)
27,300 Cabot Oil & Gas Corp................. 450,450
83,000 Coho Energy Inc...................... 560,250
41,000 Dawson Production Svcs............... 584,250
38,000 Dual Drill Co........................ 693,500
5,000 Exxon Corporation.................... 425,000
100,000 Marine Drilling Companies............ 987,500
50,800 Nuevo Energy Co...................... 1,435,100
60,000 Oceaneering International Inc........ 945,000
190,000 Pool Energy Services Co.............. 2,398,750
10,000 Texaco, Inc.......................... 855,000
20,000 USX-Marathon Group................... 440,000
12,675 Weatherford Enterra.................. 446,794
FINANCIAL (14.6%)
20,000 Boatmen's Bancshares Inc............. 775,000
50,000 First Financial Corp.(Wisc.)......... 1,175,000
20,000 Firstar Corp......................... 930,000
40,400 National City Corp................... 1,489,750
35,000 PMI Group............................ 1,487,500
110,000 PNC Bank Corp........................ 3,327,500
60,000 Security Capital Corp................ 3,495,000
49,500 Washington Fed, S&L (Seattle)........ 1,039,500
FOODS & RESTAURANT (12.1%)
90,000 IHOP Corp............................ 2,565,000
45,000 Int'l Dairy Queen Inc. Class A....... 950,625
65,000 Lancaster Colony Corp................ 2,193,750
FOODS & RESTAURANT (Cont'd)
100,000 McDonald's Corp...................... 4,787,500
8,000 Richfood Holdings Inc................ 261,000
30,000 Sonic Corp........................... 570,000
MANUFACTURING (5.1%)
75,000 Applied Power........................ 2,353,125
20,000 Department 56........................ 497,500
31,500 NB Ball & Roller..................... 771,750
50,000 Plexus Corp.......................... 600,000
14,500 Wolverine Tube....................... 532,875
RETAIL (5.1%)
150,000 Walgreen Company..................... 4,800,000
TOBACCO (8.9%)
60,000 Phillip Morris Cos., Inc............. 5,407,500
90,000 UST, Inc............................. 2,880,000
TRANSPORTATION (9.0%)
100,000 Custom Chrome Inc.................... 2,725,000
90,000 Harley-Davidson Inc.................. 3,971,250
114,000 Starcraft Automotive Corp............ 456,000
66,800 Wabash National Corp................. 1,319,300
======= ---------
TOTAL COMMON STOCKS 90,527,844
(cost $53,786,650) ----------
Principal
Amount
---------
SHORT-TERM SECURITIES (4.2%)
---------------------------
COMMERCIAL PAPER-DISCOUNTED
600,000 Ford Motor Credit Corp.
Note due 5/1/96 600,000
580,000 Associates Corp. of North America
Note due 5/3/96 579,830
1,198,000 Ford Motor Credit Corp.
Note due 5/7/96 1,196,943
507,000 Commercial Credit Co.
Note due 5/10/96 506,330
1,057,000 American General Finance Corp.
Note due 5/14/96 1,054,979
---------
TOTAL SHORT-TERM SECURITIES 3,938,082
(Cost $3,932,685) ---------
TOTAL INVESTMENTS (100.8%) 94,465,926
(Cost $57,724,732)
CASH AND RECEIVABLES
LESS LIABILITIES (-0.8%) (717,578)
----------
NET ASSETS (100%) $93,748,348
==========
</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 4-30-96 1995 1994 1993 1992 1991
-------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 16.29 $ 15.39 $ 15.93 $ 15.17 $ 15.34 $ 12.04
------- -------- ------- ------- -------- --------
Income From Investment Operations
---------------------------------
Net Investment Income .09 .18 .18 .23 .29 .36
Net Realized and Unrealized Gains
(Losses) on Investments 2.08 1.65 .53 1.12 1.03 3.95
------- -------- ------- ------- -------- --------
Total from Investment Operations 2.17 1.83 .71 1.35 1.32 4.31
Less Distributions
Dividends From Net Investment Income (.12) (.17) (.22) (.23) (.35) (.36)
Distribution From Net Realized Gains (1.06) (.76) (1.03) (.36) (1.14) (.65)
------- -------- ------- ------- -------- --------
Total Distributions (1.18) (.93) (1.25) (.59) (1.49) (1.01)
Net Asset Value End of Period $ 17.28 $ 16.29 $ 15.39 $ 15.93 $ 15.17 $15.34
======= ======== ======= ======= ======== ========
Total Return 13.93% 12.97% 4.86% 9.17% 9.09% 37.59%
Net Assets, End of Period (in Thousands) $93,748 $ 84,374 $79,622 $76,315 $ 69,454 $ 60,931
Ratio of Expenses to Average Net Assets .43% .86% .86% .87% .88% .84%
Ratio of Net Investment Income to
Average Net Assets .52% 1.17% 1.19% 1.48% 1.95% 2.56%
Portfolio Turnover Rate 16.62% 26.54% 16.31% 22.34% 12.58% 2.53%
</TABLE>
DIVIDEND NOTICE
On June 5, 1996 The Fund Directors declared a dividend from net investment
income of .05 per share and a long-term capital gain distribution of .05 per
share, payable June 7, 1996 to shareholders of record June 5, 1996.
