<PAGE> 1
SENTRY FUND, INC.
[GRAPHIC]
No sales charges
-
No redemption fees
-
No 12b-1 fees
SEMI-ANNUAL REPORT
April 30, 1999
[SENTRY FUND, INC LOGO]
<PAGE> 2
[SENTRY FUND, INC. LETTERHEAD]
MESSAGE TO SHAREHOLDERS June 3, 1999
We are pleased to provide this Sentry Fund, Inc., semi-annual report. The
following are investment results for the time periods ended April 30, 1999:
<TABLE>
<CAPTION>
Average Annual
Total Return* Total Return*
------------- -------------
<S> <C> <C>
1 Year -1.62% -1.62%
5 Year 108.35% 15.81%
10 Year 267.75% 13.91%
</TABLE>
The U.S. economy continued on a favorable path of strong growth and low
inflation through the end of 1998 and the first quarter of 1999. Real Gross
Domestic Product increased 6.0% in the fourth quarter of 1998 and is up 4.5% for
the first quarter of 1999. We expect growth to slow during the latter half of
1999.
Inflation was nearly non-existent as the CPI increased at an annualized
rate of 1% in 1998. Inflation continued to be low during the first quarter of
1999. The combination of solid economic growth and low inflation produced a
positive environment for investors.
The Dow Jones Industrial Average reached a value of 10,000 for the first time in
March. Large capitalization stocks continued to lead the performance and drive
the index to new highs. We remain optimistic about the direction of the market
during 1999, but expect some pull back from the currently lofty levels toward
the end of the year.
Steven R. Boehlke retired from Sentry Insurance Company and resigned as
president of Sentry Fund, Inc. effective December 31, 1998. At the March 11,
1999 Board of Directors meeting, James J. Weishan was elected president of
Sentry Fund, Inc.
We appreciate your participation and support of the Sentry Fund. We look
forward to your continued participation in the future.
Sincerely,
/s/ James J. Weishan
James J. Weishan
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. Both the value of an investment in the Fund and the
return on the investment 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. The performance data shown does not reflect its
deduction; and had it been reflected, the charge would reduce the performance
quoted.
<PAGE> 3
SENTRY FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments in securities, at
market value (cost $67,103,493 $109,115,064
Cash 26,865
Receivables:
Investment securities sold 831,604
Dividends 66,208
------------
Total assets $110,039,741
LIABILITIES:
Investment securities purchased 843,750
Investment advisory fees 202,119
Transfer agent fees 2,494
Custodian fees 425
Professional services 13,500
Insurance coverage 5,052
Printing charges payable 4,053
------------
Total liabilities 1,071,393
------------
NET ASSETS $108,968,348
============
ANALYSIS OF NET ASSETS:
Paid in capital $ 60,428,056
Undistributed net investment income 305,724
Accumulated undistributed net realized gain
on sales of investments 6,222,998
Net unrealized appreciation on investments 42,011,570
Net assets, for 5,708,574 shares outstanding $108,968,348
============
Net Asset Value and
Redemption and Offering Price per share $ 19.09
============
</TABLE>
STATEMENT OF OPERATIONS
For the Six Months Ended April 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Income:
Dividends $ 775,454
Interest 146,240
---------
Total investment income $ 921,694
Expenses:
Investment advisory fees 419,522
Transfer agent fees 15,068
Professional services 9,296
Printing, stationery and postage 4,053
Licenses and fees 16,315
SEC filing fees 1,779
Directors' fees 1,500
Other expenses 8,861
----------
Total expenses 476,394
----------
Net investment income $ 445,300
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments 6,158,108
Increase in unrealized appreciation
of investments 823,542
------------
Net realized and unrealized gain
on investments 6,981,650
------------
Net increase in net assets resulting
from operations $ 7,426,950
============
</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, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
OPERATIONS:
Net investment income $ 445,300 $ 303,333
Net realized gain on sales
of investments 6,158,108 6,035,273
Increase in unrealized
appreciation on investments 823,542 2,931,051
------------ ------------
Net change in net assets
resulting from operations 7,426,950 9,269,657
------------ ------------
DISTRIBUTIONS:
Dividends from net investment income (449,137) (297,470)
Distributions of net realized gains (10,779,294) (18,839,782)
------------ ------------
Total distributions to shareholders (11,228,431) (19,137,252)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,255,738 4,136,376
Net asset value of shares issued to
shareholders in reinvestment
of distributions 11,068,006 18,995,865
------------ ------------
13,323,744 23,132,241
Cost of shares redeemed (12,403,489) (5,557,724)
------------ ------------
Increase in net assets derived
from capital share transactions 920,255 17,574,517
------------ ------------
NET ASSETS:
Total (decrease) increase in net assets (2,881,226) 7,706,922
Beginning of year 111,849,574 118,278,141
------------ ------------
End of year (including
undistributed net investment
income of $305,724 and
$257,848 respectively) $108,968,348 $125,985,063
============ ============
</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 financial statements
have been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and assumptions
at the date of the financial statements. Actual results could differ from
those estimates.
The following summarizes the significant accounting policies of the Fund.
Security Valuation -- Portfolio securities which are traded on a national
securities exchange are valued at the last price as of the close of trading
on the New York Stock Exchange or, if there has been no sale on that day, at
the last bid price. Securities traded on the over-the-counter market are
valued at the mean between the last quoted bid and asked prices. Short-term
securities are stated at amortized cost, which approximates current value.
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.
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 1.5% 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 $15,257,825 and $19,167,242,
respectively.
<PAGE> 5
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENT SECURITIES -- April 30, 1999 SENTRY FUND, INC. SENTRY FUND, INC.
VALUE
SHARES (NOTE 1)
------ --------
COMMON STOCKS (98.2%)
---------------------
<S> <C> <C>
BUSINESS SERVICES (11.3%)
150,000 Analysts Int'l Corp............................ $ 1,950,000
10,800 Central Parking................................ 342,225
25,000 Deluxe Corp.................................... 865,625
140,000 Ennis Business Form Inc........................ 1,233,750
90,000 FIServe, Inc. .................................. 5,270,625
35,000 Sybron International Corp.(Wis)................ 969,062
100,000 United Stationers, Inc ......................... 1,706,250
CONSUMER SERVICES (3.4%)
25,000 Block (H & R), Inc. ............................ 1,203,125
50,000 Republic Services, Inc. ........................ 1,028,125
75,000 Stewart Enterprises Class A. ................... 1,490,625
DRUG & HEALTH CARE (0.7%)
160,000 Endosonics Corp. ............................... 810,000
ELECTRONICS (8.3%)
35,000 Int'l. Business Machines Corp. ................. 7,321,563
190,000 Savior Technology Group. ....................... 1,710,000
ENERGY (5.2%)
27,300 Cabot Oil & Gas Corp. .......................... 477,750
10,000 Exxon Corporation............................... 830,625
56,800 Oceaneering International Inc. ................. 937,200
250,000 Petroglyph Engery Inc. ......................... 515,625
29,500 R & B Falcon Corp. ............................. 295,000
150,000 Range Resources Corp. .......................... 768,750
20,000 Texaco, Inc. ................................... 1,255,000
20,000 USX-Marathon Group.............................. 625,000
FINANCIAL (17.1%)
26,250 Amsouth Bancorporation.......................... 1,248,516
48,290 Associated Banc-Corp. .......................... 1,756,549
74,100 Community First Bankshares. .................... 1,514,419
30,000 Home Federal Bancorp. Co. ...................... 667,500
40,400 National City Corp. ............................ 2,898,700
60,000 PNC Bank Corp. ................................. 3,472,500
100,000 St. Paul Bancorp Inc. .......................... 2,425,000
80,750 Southtrust Corp. ............................... 3,217,383
65,884 Washington Federal, Inc. ....................... 1,457,683
FOODS (2.2%)
82,500 Lancaster Colony Corp.. ........................ 2,433,750
MANUFACTURING (17.8%)
102,5000 Applied Power................................... 3,235,156
15,000 Black & Decker Corp. ........................... 851,250
170,000 General Cable Corp. ............................ 2,528,750
63,000 ITI Technologies................................ 1,677,375
167,500 Jason Inc. ..................................... 1,172,500
90,000 Manitowoc Co. Inc. ............................. 3,431,250
80,000 Oshkosh Truck Corp. ............................ 2,960,000
60,000 Rayovac Corp. .................................. 1,620,000
72,500 Regal-Beloit Corp. ............................. 1,567,813
23,200 Shaw Group Inc. ................................ 324,800
</TABLE>
<TABLE>
<CAPTION>
VALUE
SHARES (NOTE)
------ ------
<S> <C> <C>
RESTAURANT (14.8%)
107,500 Consolidated Products........................... 1,941,719
41,000 Cooker Restaurant Corp.......................... 269,062
90,000 Ihop Corp....................................... 4,117,500
120,000 McDonald's Corp................................. 5,085,000
119,400 Morton's Restaurant Group....................... 2,029,800
5,000 Papa John's International Inc. ................. 200,938
66,000 Rare Hospitality International.................. 1,188,000
70,000 Ruby Tuesday Inc. .............................. 1,277,500
RETAIL (6.1%)
195,000 Hancock Fabrics Inc. ........................... 1,230,937
200,000 Walgreen Company . ............................. 5,375,000
TOBACCO (6.2%)
120,000 Philip Morris Cos., Inc. ....................... 4,207,500
90,000 UST, Inc. ...................................... 2,508,750
TRANSPORTATION (5.1%)
92,500 Harley-Davidson, Inc. .......................... 5,515,312
-------------
Total Common Stocks 107,013,837
-------------
(cost $65,002,266)
PRINCIPAL
AMOUNT
------
SHORT-TERM SECURITIES (1.9%)
----------------------------
COMMERCIAL PAPER - DISCOUNTED
559,000 Household Financial Corp.
Note due 5/3/99 558,857
243,000 Norwest Financial Inc.
Note due 5/3/99 242,938
594,000 Deere & Co.
Note due 5/4/99 593,766
235,000 Household Financial Inc.
Note due 5/4/99 234,907
471,000 Norwest Financial Inc.
Note due 5/5/99 470,759
-------------
Total Short-Term Securities 2,101,227
-------------
(Cost $2,101,227)
TOTAL INVESTMENTS (100.1%) 109,115,064
(Cost $67,103,493)
CASH AND RECEIVABLES
LESS LIABILITIES (-0.1%) (146,716)
NET ASSETS (100%) $108,968,348)
============
</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 4-30-99 1998 1997 1996 1995 1994
-------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $19.80 $23.95 $18.19 $16.29 $15.39 $15.93
------ ------ ------ ------ ------ ------
Income From Investment Operations
---------------------------------
Net Investment Income .08 .13 .17 .17 0.18 .18
Net Realized and Unrealized Gains
on Investments 1.21 (.30) 6.70 3.01 1.65 .53
---- ---- ---- ---- ---- ---
Total from Investment Operations 1.29 (.19) 6.83 3.18 1.83 .71
Less Distributions
------------------
Dividends From Net Investment Income (.08) (.11) (.16) (.17) (.17) (.22)
Distribution From Net Realized Gains (1.92) (3.85) (.91) (1.11) (.76) (1.03)
Total Distributions (2.00) (3.96) (1.07) (1.28) (.93) (1.25)
Net Asset Value End of Period $19.09 $19.80 $23.959 $18.19 $16.29 $15.39
====== ====== ======= ====== ====== ======
Total Return (1.62%) (.76%) 39.23% 20.60% 12.97% 4.86%
Net Assets, End of Period (in Thousands) $108,968 $111,850 $118,278 $97,154 $84,374 $79,622
Ratio of Expenses to Average Net Assets .43% .83% .83% .84% .86% .86%
Ratio of Net Investment Income to
Average Net Assets .40% .55% .61% .95% 1.17% 1.19%
Portfolio Turnover Rate 14.26% 29.85% 40.75% 28.28% 26.54% 16.31%
</TABLE>
==============================================================================
DIVIDEND NOTICE
On June 3, 1999, the Fund Directors declared a dividend from net investment
income of $.04 per share and a long-term capital gain distribution of $.08 per
share, payable June 10, 1999, to shareholders of record June 8, 1999.
==============================================================================
<PAGE> 7
BOARD OF DIRECTORS
Thomas R. Copps
David W. Graebel
William J. Lohr
Dale R. Schuh, Chairman
Steven J. Umland
OFFICERS
James J. Weishan, President
Susan M. DeBruin, Vice-President
William M. O'Reilly, Secretary
William J. Lohr, Treasurer
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.
