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LEXINGTON
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LEXINGTON
SMALLCAP
VALUE
FUND, INC.
--------------------
Seeks long-term capital
appreciation through investment in
common stocks or companies
domiciled in the United States
with a market capitalization
of less than $1 billion.
--------------------
SEMI-ANNUAL REPORT
JUNE 30, 1997
The Lexington Group
of NO LOAD
Investment Companies
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<PAGE>
DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
We are pleased to report our semi-annual results for the Lexington SmallCap
Value Fund. The Fund appreciated by 14.4%* during the second quarter of 1997.
The unmanaged Russell 2000 Index, (the "Index"), a widely-followed measure of
the smaller capitalization domestic market segment, was up 16.2% for the
quarter. The average small cap mutual fund, according to Lipper Analytical
Services, Inc., rose 17.1%.
For the first six months of this calendar year, the Fund was up 10.3%*
which outperformed the Index at 10.2% and the average small cap fund at 9.0%.
Despite lower returns in the second quarter, the Fund had good relative results
for the half versus the Index and the average fund due to its better capital
preservation in the first quarter. Specifically, the Fund declined 3.6%* versus
declines of 5.1% and 6.9% for the Index and Lipper average, respectively.
"What a Difference a Quarter Makes." It's a variation on an old song title
that certainly rang true for investors in domestic smaller sized stocks! Indeed,
the second quarter of 1997 brought music to their ears as the Index rose 16%
after having declined over 5% in the first quarter. The Index managed to reach
all-time highs which was encouraging since the larger, more liquid segment of
the market had been setting records regularly. The Fund maintained its strict
adherence to value disciplines such as low price to book and low price to
revenue ratios. This resulted in a widely diversified portfolio which held 54
issues and had representation in 22 industry groups at June 30th. Cash
equivalents were only 4.0% which allowed the Fund to participate fully in the
rally.
The surging equity markets were fueled by a solid growth economy, modest
inflation, and constant new money flows. As the second half of the year begins,
it does appear that some capital gains tax relief may be in the offing. We
continue to believe that such legislation could be especially positive for small
cap investors. History has shown that price appreciation and long term capital
gains - not income or yield - have been the greatest components of small stocks
outperformance versus larger caps. We also believe that valuations are more
favorable in small market capitalization strata. Therefore, we continue to
adhere to our process which leads us to relatively undervalued and unloved
stocks.
We appreciate your continued support and would welcome the opportunity of
discussing questions you may have about your investment.
Sincerely,
/s/Robb W. Rowe, CFA /s/Dennis J. Hamilton, CFA /s/Robert M. DeMichele
- -------------------- -------------------------- ----------------------
Robb W. Rowe, CFA Dennis J. Hamilton, CFA Robert M. DeMichele
Portfolio Manager Portfolio Manager President
August, 1997 August, 1997 August, 1997
*18.88% and 19.03% are the one year and since commencement (1/2/96) average
annual standard total returns, respectively, for the period ended June 30, 1997.
Investment return and principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than at their
original cost. Total return represents past performance and is not predictive of
future results.
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1997 (unaudited)
Number
of Value
Shares Security (Note 1)
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COMMON STOCKS: 95.0%
BANKING: 1.4%
7,000 Aames Financial Corporation ........................ $ 129,500
---------
CAPITAL EQUIPMENT: 3.7%
9,200 Detroit Diesel Corporation1 ........................ 220,225
5,000 Watts Industries, Inc. ............................. 120,000
---------
340,225
---------
CONSTRUCTION & HOUSING: 2.6%
6,000 Granite Construction, Inc. ......................... 118,500
20,000 Insituform Technologies ............................ 123,750
---------
242,250
---------
CONSUMER DURABLE GOODS: 3.6%
13,500 Ampco-Pittsburgh Corporation ....................... 198,281
5,000 Bio-Rad Laboratories, Inc. "A"1 .................... 130,313
---------
328,594
---------
CONSUMER NONDURABLE GOODS: 2.9%
3,900 Canandaigua Wine Company, Inc. "A"1 ................ 132,356
7,700 Paragon Trade Brands, Inc.1 ........................ 131,381
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263,737
---------
ELECTRICAL & ELECTRONICS: 13.5%
26,000 American Software, Inc.1 ........................... 196,625
22,000 Asante Technologies, Inc.1 ......................... 118,937
45,000 Dataware Technologies, Inc.1 ....................... 133,594
18,500 Intergraph Corporation1 ............................ 156,094
11,000 Mylex Corporation .................................. 105,187
10,700 Progress Software Corporation1 ..................... 171,869
6,600 Sequent Computer Systems1 .......................... 139,219
8,200 Telxon Corporation ................................. 147,087
2,500 Watkins-Johnson Company ............................ 76,875
---------
1,245,487
---------
ENERGY SOURCES: 3.7%
24,700 Patina Oil & Gas Corporation1 ...................... 200,687
7,000 Western Gas Resources, Inc. ........................ 136,500
---------
337,187
---------
ENVIRONMENTAL MANAGEMENT: 0.9%
11,500 International Technology, Inc. ..................... 87,688
---------
FINANCIAL SERVICES: 8.2%
2,000 Integon Corporation ................................ 50,000
6,700 John Alden Financial ............................... 140,281
8,500 Life USA Holding, Inc.1 ............................ 120,859
16,940 National Auto Credit, Inc. ......................... 150,342
12,390 Titan Holdings, Inc. ............................... 294,262
---------
755,744
---------
2
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1997 (unaudited) (continued)
Number
of Value
Shares Security (Note 1)
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HEALTH & PERSONAL CARE: 8.8%
8,000 Alpharma, Inc. ..................................... $ 127,500
6,206 Laboratory Corporation of America
Holdings (Preferred shares)1 ................... 353,742
76,300 Laboratory Corporation of
America Holdings1 .............................. 200,287
55,800 Staff Builders, Inc. "A"1 .......................... 132,525
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814,054
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HEALTH CARE -- DIVERSIFIED: 1.9%
8,600 Sun Healthcare Group, Inc.1 ........................ 178,987
---------
HEALTH EQUIPMENT & SERVICES: 5.7%
22,000 NovaCare, Inc.1 .................................... 305,250
12,200 OEC Medical Systems, Inc.1 ......................... 217,313
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522,563
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HEALTHCARE -- MISCELLANEOUS: 5.8%
14,800 Carter-Wallace, Inc. ............................... 264,550
7,000 Integrated Health Services ......................... 269,500
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534,050
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MANUFACTURED HOUSING: 1.5%
5,500 Skyline Corporation ................................ 135,438
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MANUFACTURING -- DIVERSIFIED: 2.2%
22,400 United Industrial Corporation ...................... 200,200
---------
MATERIALS: 8.6%
6,400 ACX Technologies, Inc.1 ............................ 144,000
9,800 Coeur D'Alene Mines1 ............................... 126,788
15,100 Phillips-Van Heusen ................................ 226,500
13,300 Pillowtex Corporation .............................. 291,769
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789,057
---------
MERCHANDISING: 5.2%
13,900 Cyrk International, Inc.1 .......................... 161,588
6,000 Fingerhut Companies, Inc. .......................... 104,625
15,000 Handleman Company1 ................................. 95,625
14,000 Value City Department Stores, Inc. ................. 113,750
---------
475,588
---------
REAL ESTATE: 1.3%
9,000 Horizon Group, Inc. ................................ 120,938
---------
SERVICES: 4.5%
41,200 Interface Systems, Inc.1 ........................... 185,400
13,000 OHM Corporation .................................... 109,688
17,000 Spelling Entertainment Group, Inc.1 ................ 116,875
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411,963
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3
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1997 (unaudited) (continued)
Number
of Value
Shares Security (Note 1)
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TELECOMMUNICATIONS: 1.9%
12,600 California Microwave, Inc.1 ........................ $ 177,975
---------
TRANSPORTATION: 2.9%
2,600 Alaska Air Group, Inc.1 ............................ 66,625
14,000 America West Airlines, Inc.1 ....................... 203,000
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269,625
---------
UTILITIES: 4.2%
13,500 Forest Oil Corporation1 ............................ 198,281
52,000 Kaneb Services, Inc.1 .............................. 191,750
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390,031
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TOTAL INVESTMENTS: 95.0%
(cost $7,641,673+) (Note 1) ........................ 8,750,881
Other assets in excess of liabilities: 5.0% ........ 457,721
---------
TOTAL NET ASSETS: 100.0%
(equivalent to $12.94 per share on
711,793 shares outstanding) $9,208,602
==========
1Non-income producing security.
+Aggregate cost for Federal income tax purposes is identical.
The Notes to Financial Statements are an integral part of this statement.
4
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1997 (unaudited)
ASSETS
Investments, at value (cost $7,641,673) (Note 1) ........... $ 8,750,881
Cash ....................................................... 362,515
Receivable for investment securities sold .................. 109,741
Receivable for shares sold ................................. 105,682
Dividends and interest receivable .......................... 7,763
Deferred organizational expenses, net (Note 1) ............. 36,262
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Total Assets .................................... 9,372,844
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LIABILITIES
Due to Lexington Management Corporation (Note 2) ........... 14,429
Payable for investment securities purchased ................ 105,323
Accrued expenses ........................................... 44,490
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Total Liabilities ............................... 164,242
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NET ASSETS (equivalent to $12.94 per share
on 711,793 shares outstanding) (Note 4) .................. $ 9,208,602
===========
NET ASSETS consist of:
Capital stock--authorized 1,000,000,000 shares,
$.001 par value per share ............................... $ 712
Additional paid-in capital (Note 1) ........................ 7,266,822
Accumulated deficit (Note 1) ............................... (92,656)
Accumulated net realized gain on investments
(Note 1) ............................................... 924,516
Net unrealized appreciation of investments ................. 1,109,208
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$ 9,208,602
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The Notes to Financial Statements are an integral part of this statement.
5
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF OPERATIONS
Six months ended June 30, 1997 (unaudited)
INVESTMENT INCOME
Income
Dividends ........................................... $ 23,089
Interest ............................................ 5,033
---------
Total investment income ......................... $ 28,122
Expenses
Investment advisory fee (Note 2) .................... 40,844
Transfer agent and shareholder
servicing expense (Note 2) ........................ 10,402
Printing and mailing expenses ....................... 10,144
Distribution expenses (Note 3) ...................... 10,101
Registration fees ................................... 8,497
Directors' fees and expenses ........................ 7,570
Professional fees ................................... 6,659
Amortization of organizational costs (Note 1) ....... 6,010
Accounting expenses (Note 2) ........................ 4,944
Computer processing fees ............................ 2,772
Custodian expense ................................... 2,087
Other expenses ...................................... 1,704
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Total expenses .................................. 111,734
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Net investment loss ............................ (83,612)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS (NOTE 5)
Net realized gain on investments .................... 815,235
Net change in unrealized appreciation
on investments .................................... 121,190
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Net realized and unrealized gain ............... 936,425
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INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........ $ 852,813
=========
The Notes to Financial Statements are an integral part of this statement.
6
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
STATEMENT OF CHANGES INNET ASSETS
<TABLE>
<CAPTION>
Six months
ended Year ended
June 30, 1997 December 31,
(unaudited) 1996
----------- ------------
<S> <C> <C>
Net investment loss .......................................................... $ (83,612) $ (122,418)
Net realized gain from security transactions ................................. 815,235 241,416
Net change in unrealized appreciation of investments ......................... 121,190 988,018
---------- ----------
Increase in net assets resulting from operations ......................... 852,813 1,107,016
Distributions to shareholders from net realized gains from
security transactions -- (18,761)
Increase in net assets from capital share transactions (Note 4) .............. 294,565 6,972,969
---------- ----------
Net increase in net assets ..................................... 1,147,378 8,061,224
NET ASSETS
Beginning of period .......................................................... 8,061,224 --
---------- ----------
End of period (including accumulated deficit of $92,656 and
$9,044 respectively) ....................................................... $ 9,208,602 $ 8,061,224
=========== ===========
</TABLE>
The Notes to Financial Statements are an integral part of this statement.
7
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited) and December 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
Lexington SmallCap Value Fund, Inc. (the "Fund") is an open-end diversified
management investment company registered under the Investment Company Act of
1940, as amended. The Fund commenced operations on January 2, 1996. The Fund's
investment objective is to seek long-term capital appreciation. The following is
a summary of significant accounting policies followed by the Fund in the
preparation of its financial statements:
INVESTMENTS Security transactions are accounted for on a trade date basis.
Realized gains and losses from investment transactions are reported on the
identified cost basis. Securities traded on a recognized stock exchange are
valued at the last sales price reported by the exchange on which the securities
are traded. If no sales price is recorded, the mean between the last bid and
asked price is used. Securities traded on the over-the-counter market are valued
at the mean between the last current bid and asked price. Short-term securities
having a maturity of 60 days or less are stated at amortized cost, which
approximates market value. Securities for which market quotations are not
readily available and other assets are valued by Fund management in good faith
under the direction of the Fund's Board of Directors. Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Interest
income, adjusted for amortization of premiums and accretion of discounts, is
accrued as earned.
FEDERAL INCOME TAXES It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to "regulated investment
companies" and to distribute all of its taxable income to its shareholders.
Therefore, no provision for Federal income taxes is required.
DISTRIBUTIONS Dividends from net investment income and net realized capital
gains are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. The character of income and gains to
be distributed are determined in accordance with income tax regulations which
may differ from generally accepted accounting principals. At December 31, 1996,
reclassifications were made to the Fund's capital accounts to reflect permanent
book/tax differences and income and gains available for distribution under
income tax regulations. Net investment income, net realized gains and net assets
were not affected by this change.
DEFERRED ORGANIZATION EXPENSES Organization expenses aggregating $52,837
have been deferred and are being amortized on a straight line basis over five
years.
USE OF ESTIMATES The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets from operations during the reporting period. Actual
results could differ from those estimates.
2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATE
The Fund pays an investment advisory fee to Lexington Management Corporation
("LMC") at the annual rate of 1.00% of the Fund's average daily net assets. In
connection with providing investment advisory services, LMC has entered into a
sub-advisory contract with Capital Technologies Inc. ("CTI") under which CTI
provides the Fund with investment management services. Pursuant to the terms of
the sub-advisory contract between
8
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (unaudited) and December 31, 1996
2. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATE (continued)
LMC and CTI, LMC pays CTI a monthly sub-advisory fee at the annual rate of 0.50%
of the Fund's average daily net assets. The sub-advisory fee will be paid by
LMC, not the Fund. For 1997, LMC has agreed to voluntarily limit the total
expenses of the Fund (excluding interest, taxes, brokerage commissions, and
extraordinary expenses but including the management fee and operating expenses)
to an annual rate of 2.50% of the Fund's average daily net assets. No
reimbursement was required for the six months ended June 30, 1997.
The Fund reimbursed LMC for certain expenses, including accounting and
shareholder servicing costs of $9,889, which were incurred by the Fund, but paid
by LMC.
3. DISTRIBUTION PLAN
The Fund has a Distribution Plan (the "Plan") which allows payments to finance
activities associated with the distribution of the Fund's shares. The Plan
provides that the Fund may pay distribution fees on a reimbursement basis,
including payments to Lexington Funds Distributor, Inc. ("LFD"), the Fund's
distributor, in amounts not exceeding 0.25% per annum of the Fund's average
daily net assets. Total distribution expenses for the six months ended June 30,
1997 were $10,101 and are set forth in the statement of operations.
4. CAPITAL STOCK
Transactions in capital stock were as follows:
January 2, 1996
Six months ended (commencement of
June 30, 1997 operations) to
(unaudited) December 31, 1996
---------------------- ------------------
Shares Amount Shares Amount
------ ------- ------- -------
Shares sold 113,276 $1,364,110 806,989 $8,267,408
Shares issued
on reinvestment
of dividends ...... -- -- 1,594 18,670
------- -------- ------- ---------
113,276 1,364,110 808,583 8,286,078
Shares redeemed ..... (88,715) (1,069,545) (121,351) (1,313,109)
------- --------- ------- ---------
Net increase ...... 24,561 $ 294,565 687,232 $6,972,969
======= ========= ======= ==========
5. PURCHASES AND SALES OF INVESTMENT SECURITIES
The cost of purchases and proceeds from sales of securities for the six months
ended June 30, 1997, excluding short-term securities, were $1,690,494 and
$1,806,297, respectively.
At June 30, 1997, the aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost amounted to $1,517,256 and
aggregate gross unrealized depreciation for all securities in which there is an
excess of tax cost over value amounted to $408,048.
9
<PAGE>
LEXINGTON SMALLCAP VALUE FUND, INC.
FINANCIAL HIGHLIGHTS
Selected per share data for a share outstanding throughout the period:
January 2, 1996
Six months (commencement
ended of operations)
June 30, 1997 to December 31,
(unaudited) 1996
----------- --------------
Net asset value, beginning of period $11.73 $10.00
------ ------
Income (loss) from investment operations:
Net investment loss (0.12) (0.18)
Net realized and unrealized
gain on investments 1.33 1.94
------ ------
Total income from investment operations 1.21 1.76
------ ------
Less distributions:
Distributions from net realized gains -- (0.03)
------ ------
Net asset value, end of period $12.94 $11.73
====== ======
Total return 21.89%* 17.50%
Ratio to average net assets:
Expenses, before reimbursement
or waivers 2.74%* 3.04%
Expenses, net of reimbursement
or waivers 2.74%* 2.48%
Net investment loss, before
reimbursement or waivers (2.05%)* (2.34%)
Net investment loss (2.05%)* (1.78%)
Portfolio turnover rate 45.52%* 60.92%
Average commission paid on
equity security transactions $ 0.04 $0.03
Net assets at end of period (000's omitted) $9,209 $8,061
- ----------
*Annualized
10
<PAGE>
LEXINGTON
INVESTOR SERVICES
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AS A LEXINGTON SHAREHOLDER, YOU SHOULD BE AWARE OF THE MANY SERVICES AVAILABLE
TO YOU.
NO LOAD--The Lexington Funds are no load funds. That is, investments and
redemptions are made without any sales charges, commissions or redemption fees.
--------------------
FREE TELEPHONE EXCHANGE--Investments in the Lexington Funds may be exchanged for
shares of a different Lexington Fund at any time.
--------------------
CHECK WRITING PRIVILEGES--Lexington Money Market Trust permits investors
immediate access to their funds with check writing for withdrawals from their
account.
--------------------
TAX SHELTERED PLANS--IRA, Keogh, Pension, and Profit Sharing Prototype Plans are
available to qualified individuals. These plans offer investment flexibility
through the Share Exchange Service, simplified record keeping, convenience and
investment supervision.
--------------------
CUSTODIAL ACCOUNTS FOR MINORS--Investments may be made on behalf of minors under
the Uniform Gifts to Minors Act currently in effect in all states.
--------------------
SYSTEMATIC WITHDRAWAL PLAN--An investor may elect to receive a fixed amount from
his or her account each month or quarter, subject to certain minimums.
--------------------
COMPLETE RECORD KEEPING--A statement is provided for every transaction in
addition to a year-end statement with tax information.
THE LEXINGTON GROUP OF
NO LOAD INVESTMENT COMPANIES
LEXINGTON WORLDWIDE EMERGING MARKETS FUND, INC.--Seeks long-term growth of
capital primarily through investment in equity securities of companies domiciled
in, or doing business in, emerging countries and emerging markets.
LEXINGTON GLOBAL FUND, INC.--Seeks long-term growth of capital primarily through
investment in common stocks of companies domiciled in foreign countries and the
United States.
LEXINGTON INTERNATIONAL FUND, INC.--Seeks long-term growth of capital through
investment in companies domiciled in foreign countries.
LEXINGTON TROIKA DIALOG RUSSIA FUND, INC.--Seeks long-term capital appreciation
through investments primarily in the equity securities of Russian companies.
LEXINGTON CROSBY SMALL CAP ASIA GROWTH FUND, INC. --Seeks long-term capital
appreciation through investment in companies domiciled in the Asia Region with a
market capitalization of less than $1 billion.
LEXINGTON RAMIREZ GLOBAL INCOME FUND--Seeks high current income. Capital
appreciation is a secondary objective. The Fund invests in a combination of
foreign and domestic high-yield, lower rated debt securities.
LEXINGTON GOLDFUND, INC.--Seeks capital appreciation through investment in gold
bullion and shares of gold mining companies.
LEXINGTON GROWTH AND INCOME FUND, INC.--Seeks capital appreciation over the
long-term through investments in the stocks of large, ably managed and well
financed companies.
LEXINGTON CORPORATE LEADERS TRUST FUND--Seeks capital growth and reasonable
income through investment in an equal number of shares of an established list of
American blue chip corporations.
LEXINGTON SMALLCAP VALUE FUND, INC.--Seeks long-term capital appreciation
through investment in common stocks of companies domiciled in the United States
with a market capitalization of less than $1 billion.
LEXINGTON CONVERTIBLE SECURITIES FUND--Seeks total return by providing capital
appreciation, current income and conservation of capital through investments in
a diversified portfolio of securities convertible into shares of common stock.
LEXINGTON GNMA INCOME FUND, INC.--Seeks to achieve a high level of current
income, consistent with liquidity and safety of principal, through investment
primarily in mortgage-backed GNMA ("Ginnie Mae") certificates that are
guaranteed as to the timely payment of principal and interest by the United
States Government.
LEXINGTON MONEY MARKET TRUST--Seeks a high level of current income consistent
with preservation of capital and liquidity through investments in interest
bearing short-term money market instruments.
For more complete information about any of the Lexington Funds and a prospectus
which includes management fee and expenses call the distributor toll-free at
1-800-526-0057. Read the prospectus carefully before you invest or send money.
<PAGE>
LEXINGTON
SMALLCAP VALUE FUND, INC.
INVESTMENT ADVISER
- -------------------------------------------
LEXINGTON MANAGEMENT CORPORATION
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
SUB-ADVISER
- -------------------------------------------
Capital Technology, Inc.
McMullen Creek Office Center
P.O. Box 472428
Charlotte, North Carolina 28247
DISTRIBUTOR
- -------------------------------------------
LEXINGTON FUNDS DISTRIBUTOR, INC.
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
================================================================================
ALL SHAREHOLDER REQUESTS FOR SERVICES OF
ANY KIND SHOULD BE SENT TO:
TRANSFER AGENT
- -------------------------------------------
STATE STREET BANK AND
TRUST COMPANY
c/o National Financial Data Services
1004 Baltimore
Kansas City, Missouri 64105
OR CALL TOLL FREE:
SERVICE AND SALES: 1-800-526-0056
24 HOUR ACCOUNT INFORMATION:
1-800-526-0052
================================================================================
- --------------------------------------------------------------------------------
(800) 526-0052
"LEXLINE"
24 hour toll-free telephone access to your
Lexington Fund account
Price/Yield o Account Balances o Exchanges o
Last Transactions o Total Return o Duplicate Statements
- --------------------------------------------------------------------------------
This report has been prepared for the information of the shareholders of
Lexington SmallCap Value Fund, Inc. and is authorized for distribution to the
public only if it is accompanied or preceded by a currently effective prospectus
which sets forth expenses and other material information.
