<PAGE>
================================================================================
BEXIL
CORPORATION
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
June 30, 2000
American Stock
Exchange Symbol:
BXL
11 Hanover Square
New York, NY 10005
1-888-847-4200
www.bexil.com
<PAGE>
Stock
BEXIL CORPORATION Exchange Symbol: BXL
================================================================================
11 Hanover Square, New York, NY 10005
www.bexil.com
July 25, 2000
Fellow Shareholders:
We are pleased to submit this Semi-Annual Report for the six months
ended June 30, 2000 and to welcome our new shareholders who have made their
investment since our last Report. It is noteworthy that the Fund's investment
manager, CEF Advisers, Inc. and its affiliates now own in the aggregate
approximately 22% of the Fund's outstanding shares.
New Investment Objective and Policies
In December 1999, the Fund's investment objective became to provide
stockholders with an attractive rate of total return from capital appreciation
and income. To achieve this objective, the Fund invests at least 50% of the
value of its total assets in U.S. Government Securities, obligations of U.S.
Government agencies or instrumentalities, and money market instruments, with the
remainder of its total assets invested primarily in equity and other securities
of selected growth companies and in companies that invest or deal in natural
resources or commodities. At June 30, 2000, approximately 89.68% of the Fund's
assets were invested in Government and money market securities, and the balance
was in equity or other securities. The investment objective and policy are
non-fundamental and may be changed by the Board of Directors without shareholder
approval.
On July 24, 2000, the Fund announced the adoption by the Board of
Directors of a new investment policy to own through internal development or
acquisition majority stakes in new and small businesses (including privately
owned companies). Since this new policy may result in Bexil no longer being or
holding itself out as being engaged primarily in the business of investing,
reinvesting, or trading in securities, the Board of Directors has called a
special meeting of the shareholders to (i) consider and vote on authorizing
Bexil to change the nature of its business so as to cease to be an investment
company and (ii) approve certain related matters.
Review and Outlook
The Federal Reserve raised its Federal Funds rate target by 1.00% to
6.50% over the first half of the year, continuing a trend that began in June
1998, when the rate was at 4.75%. Notably, after their May 16 meeting, the
target was increased by 0.50%, an aggressive depar-
<PAGE>
ture from the 0.25% increments that have characterized the tightening moves so
far. Intermediate and long term government bond rates declined over this period,
however, predominantly due to concerns of reduced supply, and Treasury buy-backs
caused by the burgeoning Federal budget surplus. Five and ten year Treasury note
yields fell from 6.34% and 6.44%, to 6.18% and 6.03%, respectively. This decline
in rates was beneficial for prices and total return. The Lehman Brothers
Government Bond and Mortgage Backed Securities Indices had total returns of
4.97% and 3.67%, respectively during this period. Five and ten year Treasury
notes had returns of 3.48% and 5.45%. During this six month period, the Dow
Jones Industrial Average, Standard & Poor's 500, and Nasdaq Composite Index
declined by 9.13%, 1.00%, and 2.54%, respectively. The extent to which the
Fund's net asset value return of negative 0.38% over the period exceeded these
equity averages is attributable largely to its fixed income investments. It is
gratifying to note that the Fund's market total return for the six months ending
June 30, 2000 was 2.69%.
The current economic environment is characterized by strong growth, low
unemployment, low but rising inflation, a large and growing budget surplus, and
a record high trade deficit. Fed policy is driven by an attempt to raise
interest rates by enough to prevent excess demand to increase inflationary
pressures. Financial markets are highly volatile, reflecting the strong yet
conflicting influences affecting market sentiment. On the one hand, the Fed is
seeking to reduce demand by raising the Fed Funds rate even as this interest
rate has become a less meaningful tool for adjusting monetary conditions in
recent years -- demand, reflecting the "wealth effect" of the strong stock
market over the past five years and from overseas recoveries, is not directly
affected by monetary policy. Further, the budget surplus has caused a decline in
longer term yields. On the other hand, increases in productivity, new
technology, U.S. Government budget surpluses, and other factors keep inflation
low, despite high levels of growth. The possibility of a so-called "new
economy," where growth can persist at high levels without igniting inflation,
has been recognized by some market participants, but not embraced by the Fed.
As to the period ahead, it is tempting to conclude that the Fed's raising
of interest rates has begun to bear fruit. Recent data suggest the torrid pace
of economic growth has abated. The unemployment rate has increased from a low of
3.9% to 4.1%, weekly jobless claims have risen, retail sales have slowed, and
interest sensitive sectors, such as housing and auto sales, have softened.
Second quarter GDP growth should be around, or slightly more than 5%, down from
more than 6% over the past three quarters. It is not clear that this slowdown
will continue, or that it was due to the Fed's 1.75 percentage points tightening
over the past year. It is likely that some of the slowing is related to demand
being satiated in prior quarters, warm weather, and normal random variation. The
slowdown in retail sales this spring coincided with high income tax payments.
The rise in personal income and high levels of consumer confidence, however, are
not consistent with a slowdown. In any event, we do not believe the Fed has done
enough to cause a slowdown. Excluding the easing to prevent a systemic crisis in
the fall of 1998, the Fed has only tightened by 1 percentage point. The year
over year rate of inflation has increased by between 2% and 4% since then, so
"real" Fed Funds are actually easier now than when the tightening began.
Moreover, recognizing the reduced role of the Fed Funds rate in determining
monetary conditions, a more comprehensive analysis suggests that overall
monetary conditions are
2
<PAGE>
no tighter now than they were a year ago.
In view of these market conditions, the Fund's strategy has been to extend
the duration of its fixed income investments to take advantage of repurchase
programs and the reduced supply of new U.S. Government and other debt
securities. At the same time, the Fund reduced its holdings of equity securities
in response to the pressures that have negatively impacted that market. Going
forward, we will continue to be looking for investments with the greatest
potential to provide stockholders with an attractive rate of total return from
capital appreciation and income.
8% Dividend Distribution Policy Continued
The managed 8% dividend distribution policy adopted by the Fund's Board
of Directors in 1997 continues to be well received. The objective is to provide
shareholders with a relatively stable cash flow and reduce or eliminate any
market price discount to the Fund's net asset value per share. Payments are made
primarily from ordinary income and any capital gains, with the balance
representing return of capital. For the six months ended June 30, 2000, actual
distributions were 4.08% of average net assets with approximately 67.31% derived
from net investment income and the balance from return of capital. We believe
shares of the Fund are a sound value and an appealing investment for portfolios
seeking total return from capital appreciation and income.
Reinvestment Plan Attractive
The Fund's current net asset value per share is $12.00. With a recent
closing on the American Stock Exchange of $9.56 per share, we believe this
represents an important opportunity to purchase additional shares at an
attractive discount from their underlying value. The Fund's Dividend
Reinvestment Plan is a very effective way to add to your holding because
quarterly dividend distributions are reinvested without charge at the lower of
net asset value per share or market price, which can contribute importantly to
growing your investment over time. Please call 1-888-847-4200, and an Investor
Service Representative will be happy to assist you.
We appreciate your support and look forward to continuing to serve your
investment needs.
Sincerely,
/s/ Thomas B. Winmill /s/ Steven A. Landis
Thomas B. Winmill Steven A. Landis
President Senior Vice President,
Portfolio Manager
3
<PAGE>
Bexil Corporation
Schedule of Portfolio Investments - June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Par Market
Value Value
--------- ----------
<C> <S> <C>
U.S. Government Obligations (65.11%)
$ 500,000 U.S. Treasury Note, 4.75%, due 2/15/04......................................... $ 475,469
1,000,000 U.S. Treasury Note, 6.00%, due 8/15/09......................................... 992,188
5,500,000 U.S. Treasury Note, 6.50%, due 2/15/10......................................... 5,689,062
-----------
Total U.S. Government Obligations (cost: $7,063,242 ).................. 7,156,719
-----------
U.S. Government Agencies (23.99%)
471,843 Government National Mortgage Assn., 6.50%, due 7/15/08......................... 458,380
1,116,413 Government National Mortgage Assn., 7.0%, due 11/15/10......................... 1,104,095
380,742 Government National Mortgage Assn., 7.0%, due 6/15/23.......................... 370,421
87,288 Government National Mortgage Assn., 7.0%, due 5/15/24.......................... 84,923
629,643 Government National Mortgage Assn., 7.25%, due 1/15/27......................... 619,181
-----------
Total U.S. Government Agencies (cost: $2,643,428)...................... 2,637,000
-----------
Notes (9.03%)
Panama (4.86%)
538,496 Republic of Panama, Floating Rate Notes, due 5/14/02........................... 533,784
-----------
United States (4.17%)
450,000 Dictaphone Corp., 11.75% Senior Subordinated Notes, due 8/1/05................. 459,000
-----------
Total Bonds (cost: $989,404)........................................... 992,784
-----------
Shares Common Stocks (1.29%)
------
Railroads, Line-Haul Operating (1.29%)
1,600 Kansas City Southern Industries, Inc. ......................................... 141,900
-----------
Total Common Stock (cost: $137,517).................................... 141,900
<CAPTION> -----------
Par Value
---------
<C> <S> <C>
Short Term Investments (.58%)
$ 63,965 State Street Bank & Trust Repurchase Agreement, 3.50%, June 30, 2000,
due July 3, 2000 (collateralized by $50,000 U.S. Treasury Bonds, 9.125%,
due 5/15/18, market value: $66,000, proceeds at maturity $63,984).............. 63,965
-----------
Total Short Term Investments (cost: $63,965)........................... 63,965
-----------
Total Investments (cost: $10,897,556) (100.0%)......................... $10,992,368
===========
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2000 (Unaudited)
ASSETS:
Investments at market value
(cost: $10,897,556) (note 1)............... $10,992,368
Insurance receivable (note 7)................ 98,590
Interest receivable.......................... 209,727
Other assets................................. 960
-----------
Total assets............................. 11,301,645
-----------
LIABILITIES:
Reverse repurchase agreement (note 8)........ 1,841,875
Accrued expenses............................. 35,980
Accrued management fees...................... 5,322
Other liabilities............................ 233
-----------
Total liabilities........................ 1,883,410
-----------
NET ASSETS: (applicable to 789,992
outstanding shares: 250,000,000 shares
of $.01 par value authorized)................ $ 9,418,235
===========
NET ASSET VALUE PER SHARE:
($9,418,235 / 789,992 shares outstanding).... $11.92
===========
At June 30, 2000, net assets consisted of:
Paid-in capital.............................. $10,665,948
Accumulated net realized loss
on investments............................. (1,212,747)
Net unrealized appreciation on investments... 94,812
Accumulated deficit in net investment
income..................................... (129,778)
-----------
$ 9,418,235
===========
STATEMENT OF OPERATIONS
Six months ended June 30, 2000 (Unaudited)
INVESTMENT INCOME:
Interest..................................... 268,079
Dividends.................................... 6,577
Other Income-reimbursements (note 7)......... 98,590
-----------
Total investment income.................... 373,246
-----------
EXPENSES:
Investment management (note 3)............... 33,162
Interest..................................... 15,671
Professional (note 3)........................ 14,835
Printing..................................... 14,654
Directors ................................... 12,234
Custodian.................................... 10,637
Registration (note 3)........................ 6,250
Transfer agent............................... 5,320
Other ....................................... 1,259
-----------
Total expenses............................. 114,022
-----------
Net investment income...................... 259,224
-----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain from
security transactions...................... 2,618
Unrealized depreciation of investments
during this period......................... (372,443)
-----------
Net realized and unrealized
loss on investment...................... (369,825)
-----------
Net decrease in net assets
resulting from operations................ $ (110,601)
===========
See accompanying notes to financial statements.
5
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 2000 (Unaudited) and December 31, 1999 and the
Year Ended June 30, 1999
<TABLE>
<CAPTION>
June 30, December 31, June 30,
2000 1999 1999
---------- ------------ ----------
<S> <C> <C> <C>
OPERATIONS:
Net investment income.............................................................. $ 259,224 $ 139,519 $ 53,037
Net realized gain (loss) from security transactions................................ 2,618 (314,553) (108,195)
Unrealized appreciation (depreciation) of investments during the period............ (372,443) 513,382 (251,586)
---------- ----------- -----------
Net change in net assets resulting from operations............................... (110,601) 338,348 (306,744)
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income ($0.33, $0.18 and $0.07
per share, respectively)......................................................... (259,224) (139,519) (53,037)
Distribution from net realized gains ($0.01 per share)............................. (2,618) - -
Distributions from paid in capital ($0.16, $0.42, and $1.13
per share, respectively)......................................................... (127,160) (318,852) (850,487)
CAPITAL SHARE TRANSACTIONS:
Change in net assets resulting from reinvestment of distributions
(15,800, 12,239, and 14,718 shares, respectively) (note 6)....................... 146,467 117,165 190,372
---------- ----------- -----------
Total change in net assets..................................................... (353,136) (2,858) (1,019,896)
NET ASSETS:
Beginning of year.................................................................. 9,771,371 9,774,229 10,794,125
---------- ----------- -----------
End of year (including accumulated deficit in net investment income of $129,778 as
of June 30, 2000)............................................................... $9,418,235 $ 9,771,371 $ 9,774,229
========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
Notes to Financial Statements
(Unaudited)
(1) Bexil Corporation, formerly Bull & Bear U.S. Government Securities Fund,
Inc. (the "Fund"), is a Maryland corporation registered under the Investment
Company Act of 1940, as amended, as a non-diversified closed-end management
investment company. The Fund's shares are listed on the American Stock Exchange.
The Fund's investment objective is to provide stockholders with an attractive
rate of total return from capital appreciation and income. To seek this
objective, the Fund's investment policy is to invest at least 50% of the value
of its total assets in U.S. Government Securities, obligations of other U.S.
Government agencies or instrumentalities, and money market instruments, and the
remainder of its total assets primarily in equity and other securities of
selected growth companies and in companies that invest or deal in natural
resources or commodities. The investment objective and policy are
non-fundamental and subject to change by the Board of Directors without
shareholder approval. On September 8, 1999, the Board of Director's of the Fund
approved a change in the fiscal year end to December 31. Previously, the fiscal
year end was June 30. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its financial
statements. With respect to security valuation, securities listed or traded on a
national securities exchange or the Nasdaq National Market System ("NMS") are
valued at the last quoted sales price on the day the valuations are made. Such
listed securities that are not traded on a particular day and securities traded
in the over-the-counter market that are not on the NMS are valued at the mean
between the current bid and asked prices. Securities for which quotations from
the national securities exchange or the NMS are not readily available or
reliable and other assets may be valued based on over-the-counter quotations or
at fair value as determined in good faith by or under the direction of the Board
of Directors. Debt obligations with remaining maturities of 60 days or less are
valued at cost adjusted for amortization of premiums and accretion of discounts.
Investment transactions are accounted for on the trade date (date the order to
buy or sell is executed). Interest income is recorded on the accrual basis. In
preparing financial statements in conformity with generally accepted accounting
principles, management makes estimates and assumptions that affect the reported
amounts of assets and liabilities at the date of the financial statements, as
well as the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
(2) The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its taxable investment income and net capital gains, if
any, after utilization of any capital loss carryforward, to its shareholders and
therefore no Federal income tax provision is required. At December 31, 1999, the
Fund had an unused capital loss carryforward of approximately $1,023,200, of
which $361,000 expires in 2003, $202,000 in 2004, $229,800 in 2005 and $230,400
in 2007. Based on Federal income tax cost of $10,897,556, gross unrealized
appreciation and gross unrealized depreciation were $150,004 and $55,192,
respectively, at June 30, 2000.
(3) The Fund retains CEF Advisers, Inc. (formerly, Bull & Bear Advisers, Inc.)
as its Investment Manager pursuant to an Investment Management Agreement. As
compensation for the service provided pursuant to such agreement, the Fund pays
to the Investment Manager a fee from its assets, such fee to be computed weekly
and paid monthly in arrears at the annual rate of 7/10 of 1% of the first $250
million, 5/8 of 1% from $250 million to $500 million, and 1/2 of 1% over $500
million. This fee is calculated by deter-
7
<PAGE>
mining net assets on each Friday and applying the applicable rate to such amount
for the number of days in the week. The Investment Manager has agreed to waive
all or part of its fee or reimburse the Fund monthly if and to the extent the
aggregate operating expenses of the Fund exceed the most restrictive limit
imposed by any state in which shares of the Fund are qualified for sale,
although currently the Fund is not subject to any such limits. Certain officers
and directors of the Fund are officers and directors of the Investment Manager.
The Fund reimbursed the Investment Manager $2,638 for providing certain
administrative and accounting services at cost for the six months ended June 30,
2000.
(4) Purchases and proceeds of sales of investment securities other than short
term investments aggregated $16,130,062 and $14,970,845, respectively, for the
six months ended June 30, 2000.
(5) The Fund has a committed bank line of credit. At June 30, 2000, there was no
balance outstanding and the interest rate was equal to the Federal Reserve Funds
Rate plus 1.00 percentage point. For the six months ended June 30, 2000, the
weighted average interest rate was 5.35% based on the balances outstanding from
the line of credit and the reverse repurchase agreement during the year and the
weighted average amount outstanding was $654,011. The maximum amount of debt
outstanding during the period was $1,024,618.
(6) Effective October 4, 1996, the Fund converted from an open-end management
investment company to a closed-end management investment company. In addition,
the Fund has adopted a Dividend Reinvestment Plan (the "Plan"). Under the Plan,
each dividend and capital gain distribution, if any, declared by the Fund on
outstanding shares will, unless elected otherwise by each shareholder by
notifying the Fund in writing at any time prior to the record date for a
particular dividend or distribution, be paid on the payment date fixed by the
Board of Directors or a committee thereof in additional shares in accordance
with the following: whenever the Market Price (as defined below) per share is
equal to or exceeds the net asset value per share at the time shares are valued
for the purpose of determining the number of shares equivalent to the cash
dividend or capital gain distribution (the "Valuation Date"), participants will
be issued additional shares equal to the amount of such dividend divided by the
Fund's net asset value per share. Whenever the Market Price per share is less
than such net asset value on the Valuation Date, participants will be issued
additional shares equal to the amount of such dividend divided by the Market
Price. The Valuation Date is the dividend or distribution payment date or, if
that date is not an American Stock Exchange trading day, the next trading day.
For all purposes of the Plan: (a) the Market Price of the shares on a particular
date shall be the average closing market price on the five trading days the
shares traded ex-dividend on the Exchange prior to such date or, if no sale
occurred on the Exchange prior to such date, then the mean between the closing
bid and asked quotations for the shares on the Exchange on such date, and (b)
net asset value per share on a particular date shall be as determined by or on
behalf of the Fund.
(7) A group called Karpus Investment Management ("KIM") at the 1997 annual
meeting of the Fund sought to elect its slate of nominees in opposition to
management and at the 1998 annual meeting of the Fund made a
counter-solicitation on all management proposals and a solicitation to terminate
the investment management agreement. On February 19, 1998, KIM filed a lawsuit
against the Fund in the Circuit Court for Baltimore City, Maryland, Case No.
9805005, which was dismissed with prejudice on October 1, 1998. On February 19,
1998, the Fund filed a lawsuit against KIM in the United States District Court
for the Southern District of New York, 98 Civ. 1190. On December 22, 1998, KIM
filed a lawsuit against the Fund in the United States District Court for the
District of Maryland Court, 98-CV-4161 and the Fund made counterclaims. On May
25, 1999, the Fund and KIM announced that they had entered into a settlement of
all
8
<PAGE>
litigation in the United States District Court for the Southern District of New
York and in the United States District Court for the District of Maryland. In
connection with the settlement, KIM sold its 12.7% stake in the Fund of 95,175
shares to an affiliate of the Investment Manager for $12 7/8 per share in July
and August 1999. The Fund received an insurance settlement of $98,590 during the
six months ended June 30, 2000 for legal expenses incurred previously.
8) The Fund participates in repurchase agreements with the Fund's custodian. The
custodian takes possession of the collateral pledged for investments in
repurchase agreements. The underlying collateral is valued daily on a
mark-to-market basis to ensure that the value, including accrued interest, is at
least equal to the repurchase price. In the event of default of the obligation
to repurchase, the Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
9
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended Years Ended June 30,
June 30, 2000 December --------------------------------------------
(Unaudited) 31, 1999 1999 1998 1997 1996 1995
----------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at beginning of period................... $12.62 $12.83 $14.45 $14.74 $14.74 $15.20 $14.63
----------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income................................. .33 .18 .07 25 .70 .64 .73
Net realized and unrealized gain (loss) on
investments.......................................... (.53) .21 (.49) .55 .01 (.46) .60
----------- -------- -------- -------- -------- -------- --------
Total from investment operations................... (.20) .39 (.42) .80 .71 .18 1.33
Less distributions:
Distributions from net investment income.............. (.33) (.18) (.07) (.25) (.71) (.64) (.76)
Distributions in excess of net realized gains......... (.01) -- -- (.42) -- -- --
Distributions from paid in capital.................... (.15) (.42) (1.13) (.42) -- -- --
----------- -------- -------- -------- -------- -------- --------
Increase (decrease) in net asset value............. (.70) (.21) (1.62) (.29) -- (.46) .57
----------- -------- -------- -------- -------- -------- --------
Net asset value at end of period......................... $11.92 $12.62 $12.83 $14.45 $14.74 $14.74 $15.20
=========== ======== ======== ======== ======== ======== ========
Per share market value at end of period.................. $9.25 $9.50 $12.13 $13.13 $12.63
=========== ======== ======== ======== ========
TOTAL RETURN ON NET ASSET VALUE BASIS.................... (.38)% 4.60% (2.64)% 6.43% 5.58% 1.18% 9.40%
=========== ======== ======== ======== ======== ======== ========
TOTAL RETURN ON MARKET VALUE BASIS (a)................... 2.69% (16.68)% 1.26% 12.87% (9.57)%
=========== ======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period (000's omitted).............. $9,418 $9,771 $9,774 $10,794 $10,791 $13,035 $16,377
=========== ======== ======== ======== ======== ======== ========
Ratio of expenses to average net assets (b)(c)(d)........ 2.41%* 3.05%* 6.33% 5.77% 2.13% 2.10% 2.00%
=========== ======== ======== ======== ======== ======== ========
Ratio of net investment income to average net assets..... 5.47%* 2.87%* 0.49% 1.69% 4.48% 4.25% 4.96%
=========== ======== ======== ======== ======== ======== ========
Portfolio turnover rate.................................. 155% 88% 112% 168% 246% 762% 482%
=========== ======== ======== ======== ======== ======== ========
</TABLE>
* Annualized.
(a) Effective October 4, 1996, the Fund converted from an open-end management
investment company to a closed-end management investment company. The Fund
has calculated total return based upon purchases and sales of shares of the
Fund at current market values and reinvestment of dividends and
distributions at the lower of the per share net asset value on the payment
date or the average of the closing market price for the five days preceding
the payment date.
(b) The ratio for the six months ended December 31, 1999 and the years ended
June 30, 1999 and 1997 after custodian fee credits were 3.05%*, 6.33% and
2.07%, respectively. Prior to July 1, 1996, there was no reduction of
custodian fees. There were no custodian fee credits for the six months
ended June 30, 2000 and for the year ended June 30, 1998.
(c) Ratio excluding interest expense were 2.08%*, 2.86%*, 5.80%, 4.93% and
1.94% for the six months ended June 30, 2000 and December 31, 1999 and the
years ended June 30, 1999, 1998 and 1997, respectively.
(d) Ratio prior to reimbursement were 3.18%*, 7.03% and 5.82% for the six
months ended December 31, 1999 and the years ended June 30, 1999 and 1998,
respectively.
10
<PAGE>
BEXIL CORPORATION
-----------------
11 Hanover Square
New York, NY 10005
Printed on recycled paper [LOGO]
BXL-SAR-6/00
