- --------------------------------------------------------------------------------
Dear Participation Holder:
We are pleased to report the payment of $0.13959 per participation from
dividend income for the six month period ended June 30, 1996. In addition, we
are able to report distributions per participation of $0.17746 from realized
security gains and $0.08114 from return of capital. The Trust appreciated by
9.74%* for the period, compared with a rise of 9.24% for the average growth and
income fund as reported by Lipper Analytical Services, Inc. The realized
security gains and return of capital component are primarily attributable to the
sale of shares of Travelers, Inc. received as a result of its stock split in
May.
The stock market, as measured by the unmanaged Standard & Poor's 500 Stock
Price Index was up 10.1%. This gain obscures the fact that the equity markets
have become measurably more volatile. Mutual fund gains were much smaller in the
second quarter. In fact, most of the gain was realized early in the year with
the market rising only 1.49% from the earlier peak reached in mid-February.
The market's pause likely reflects three factors. First, the one percent
rise in interest rates has created a tougher environment for stocks, in contrast
to last year's decline in rates that helped fuel the explosive stock market
rally. Second, the pace of public offerings of stock by corporations has picked
up dramatically, increasing the supply, and offsetting the strong demand for
stocks created by the continued strong flow of new money into domestic equity
mutual funds. Third, earnings growth, while still strong, has slowed
considerably from the pace of the last few years.
At current levels of long term interest rates, stocks appear modestly
overvalued. The key to further gains will likely be the trend in corporate
earnings. With the resurgence of economic growth in the U.S. and the outlook for
improving economies around the world, earnings visibility for many U.S.
corporations has improved, with continued growth now likely into 1997. Although
a correction in stock prices is long overdue, we continue to believe stock
prices can continue to work their way higher.
Sincerely,
ROBERT M. DEMICHELE
Chairman of the Board
Lexington Management Corporation
July, 1996
*28.29%, 16.78% and 13.95% are the one, five and ten year average annual
standard total returns, respectively, for the period ended June 30, 1996.
Investment return and principal value of an investment will fluctuate so that an
investor's participations, when redeemed, may be worth more or less than at
their original cost. Total return represents past performance.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
If you had invested $10,000 55-1/2 years ago...
ILLUSTRATION OF AN ASSUMED INVESTMENT OF $10,000
With Income Dividends and Capital Gains Distributions Reinvested
The table on the following page covers the period from March 16, 1941 to June
30, 1996. This period was one of generally rising common stock prices. The
results shown should not be considered as a representation of the dividends and
other distributions which may be realized from an investment made in the Trust
today. A program of the type illustrated does not assure a profit or protect
against depreciation in declining markets.
Long-term investments in industry, such as Lexington Corporate Leaders Trust
Fund, tend to move with the basic inflationary trend and offer your dollars an
opportunity to grow.
2
<PAGE>
LEXINGTON CORPORATE LEADERS TRUST FUND
- --------------------------------------------------------------------------------
The cumulative cost figure represents the initial investment of $10,000 plus the
cumulative amount of dividends reinvested. Dividends and other distributions
were assumed to have been reinvested in additional participations at the
reinvestment price. The value of participations "Initially Acquired" includes
the value of additional participations created as a result of the reinvestment
of that portion of the semi-annual distributions representing "A Return of
Capital" (the proceeds from securities sold representing the cost of securities
sold, and other principal transactions). No adjustment has been made for any
income taxes payable by Holders on dividends or other distributions reinvested
in additional participations. The dollar amount of distributions from realized
gains (determined at the Trust level) reinvested in additional participations
were: 1941-None; 1942-None; 1943-None; 1944-$3; 1945-$450; 1946-None; 1947-$44;
1948-$338; 1949-None; 1950-$283; 1951-$796; 1952-$185; 1953-$10; 1954-$812;
1955-$474; 1956-$4,347; 1957-$48; 1958-$17; 1959-$3,032; 1960-$2,371;
1961-$2,118; 1962-$2,749; 1963-$735; 1964-$3,138; 1965-$9,035; 1966-$1,077;
1967-$48; 1968-$4,121; 1969-$102; 1970-$644; 1971-$1,862; 1972-$2,300;
1973-None; 1974-None; 1975-None; 1976-$5,071; 1977-$4,161; 1978-None; 1979-None;
1980-$5,182; 1981-$31,473; 1982-None; 1983-$18,602; 1984-$8,258; 1985-$39,496;
1986-$64,138; 1987-$69,182; 1988-$49,350; 1989-$99,410; 1990-$148,727;
1991-$39,773; 1992-$52,819; 1993-$46,262; 1994-$160,296; 1995-$7,696; June 30,
1996-$40,290; Total-$931,325.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE OF PARTICIPATIONS
Cumulative ---------------------------------------------------------------
Cost of
Partici- Purchased
pations Through Rein- Purchased
Amounts of Purchased Cumulative vestment of Through
Divideds Through Cost Distributions Reinvestment Number
Year Reinvested Reinvest- Including from Realized of Net of
Ended Semi- ment of Reinvested Initially Gains Dividends Asset Partici-
Dec. 31 Annually Dividends Dividends Aquired (Cumulative) Sub-Total (Cumulative) Value pations
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1941* - - $ 10,000 $ 8,799 - $ 8,799 - $ 8,799 566
1942 - - 10,000 9,613 - 9,613 - 9,613 584
1943 $ 190 $ 190 10,190 10,809 - 10,809 $ 188 10,997 601
1944 192 382 10,382 11,983 $ 3 11,986 402 12,388 620
1945 215 597 10,597 14,709 464 15,173 682 15,855 693
1946 187 784 10,784 13,961 430 14,391 816 15,207 716
1947 370 1,154 11,154 14,639 447 15,086 1,141 16,227 824
1948 513 1,668 11,668 14,840 718 15,558 1,480 17,038 989
1949 509 2,177 12,177 17,113 701 17,814 1,968 19,782 1,176
1950 804 2,980 12,980 19,871 994 20,865 2,779 23,644 1,392
1951 1,012 3,992 13,992 21,659 1,756 23,415 3,674 27,089 1,652
1952 1,054 5,046 15,046 24,356 2,016 26,372 4,901 31,273 1,845
1953 1,217 6,263 16,263 24,849 2,030 26,879 6,149 33,028 1,945
1954 1,378 7,641 17,641 33,779 3,476 37,255 9,475 46,730 2,117
1955 1,599 9,240 19,240 39,164 4,398 43,562 12,349 55,911 2,243
1956 1,790 11,030 21,030 38,511 7,051 45,562 10,475 56,037 3,123
1957 1,910 12,940 22,940 36,268 6,574 42,842 11,496 54,338 3,269
1958 2,134 15,075 25,075 48,925 8,778 57,703 17,710 75,413 3,406
1959 2,184 17,258 27,258 55,426 11,821 67,247 19,992 87,239 3,906
1960 2,416 19,674 29,674 55,782 12,653 68,435 19,772 88,207 4,562
1961 2,697 22,371 32,371 67,126 16,993 84,119 25,757 109,876 4,881
1962 2,926 25,296 35,296 62,396 17,033 79,429 24,446 103,875 5,541
1963 3,243 28,540 38,540 71,467 19,863 91,330 30,711 122,041 5,803
1964 3,553 32,093 42,093 83,001 24,049 107,050 35,865 142,915 6,452
1965 3,855 35,948 45,948 92,523 30,246 122,769 35,623 158,392 8,066
1966 4,571 40,519 50,519 74,713 24,491 99,204 31,774 130,978 8,606
1967 5,060 45,579 55,579 83,121 27,090 110,211 40,165 150,376 8,948
1968 5,573 51,153 61,153 89,160 32,157 121,317 46,879 168,196 9,710
1969 5,915 57,068 67,068 75,017 26,979 101,996 44,536 146,532 10,115
1970 6,009 63,077 73,077 82,621 28,564 111,185 52,500 163,685 10,957
1971 6,190 69,267 79,267 93,454 32,126 125,580 61,694 187,274 11,856
1972 6,585 75,852 85,852 108,913 38,484 147,397 75,949 223,346 12,605
1973 7,371 83,223 93,223 93,151 32,729 125,880 71,868 197,748 13,123
1974 8,196 91,419 101,419 68,448 22,864 91,312 57,376 148,688 14,124
1975 9,139 100,557 110,557 91,498 30,474 121,972 85,413 207,385 14,781
1976 9,666 110,223 120,223 115,461 37,963 153,424 101,306 254,730 16,914
1977 11,237 121,460 131,460 108,466 35,919 144,385 96,397 240,782 18,898
1978 13,283 134,743 144,743 110,210 34,687 144,897 105,738 250,635 20,370
1979 15,804 150,547 160,547 139,110 34,774 173,884 121,307 295,191 23,931
1980 19,369 169,916 179,916 173,026 47,488 220,514 165,362 385,876 26,181
1981 21,822 191,738 201,738 163,070 62,645 225,715 140,698 366,413 33,836
1982 24,452 216,190 226,190 191,554 69,992 261,546 183,359 444,905 36,772
1983 25,923 242,114 252,114 235,913 91,870 327,783 218,649 546,432 42,757
1984 28,926 271,040 281,040 250,855 91,476 342,331 226,566 568,897 49,375
1985 31,808 302,848 312,848 333,623 145,913 479,536 293,217 772,753 58,251
1986 39,216 342,064 352,064 408,170 212,840 621,010 342,608 963,618 69,711
1987 40,394 382,458 392,458 412,599 241,185 653,784 326,728 980,512 83,847
1988 71,268 453,726 463,726 470,438 297,425 767,863 407,155 1,175,018 97,918
1989 45,103 498,829 508,829 583,494 438,476 1,021,970 509,512 1,531,482 111,950
1990 51,303 550,132 560,132 552,346 473,992 1,026,338 440,810 1,467,148 139,330
1991 55,828 605,960 615,960 654,372 558,392 1,212,764 539,190 1,751,954 152,079
1992 55,460 661,420 671,420 700,391 619,341 1,319,732 600,946 1,920,678 165,291
1993 54,505 715,925 725,925 814,945 727,611 1,542,556 715,658 2,258,214 176,699
1994 60,332 776,257 786,257 832,095 759,684 1,591,779 649,069 2,240,848 213,211
1995 61,329 837,586 847,586 1,207,794 998,228 2,206,022 913,513 3,119,535 227,040
June 30,
1996 31,693 869,279 879,279 1,308,846 1,106,811 2,415,657 1,007,701 3,423,358 233,199
</TABLE>
- --------------------------------------------------------------------------------
*From March 16, 1941.
Note-During 1990 all sales charges were eliminated. The above table reflects the
change to a "No Load" status as if it were in effect for the entire period
shown. The amounts shown as dividends for periods after October 31, 1988 include
interest income from the investment of amounts deposited in the distributive
fund.
3
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
Assets
<S> <C>
Investments at market quotations,
common stocks (identified cost $222,608,928) ............................... $316,403,245
Cash ......................................................................... 10,569,135
Subscriptions receivable ..................................................... 571,616
Receivable for accrued dividends ............................................. 520,436
------------
Total assets ...................................................... 328,064,432
------------
Liabilities
Distribution payable ......................................................... 1,308,223
Payable for participations redeemed .......................................... 248,842
Accrued expenses ............................................................. 106,432
------------
Total liabilities ................................................. 1,663,497
------------
Net Assets
Balance applicable to 22,229,067 participations
outstanding (Note 6) ....................................................... $326,400,935
============
Computation of public offering price:
Net asset value, offering and redemption price per participation
(net assets divided by participations outstanding) ........................ $ 14.68
============
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS June 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of Market
Securities Shares Cost Value
- ----------------------------------------------- -------- ------------ ------------
<S> <C> <C> <C>
Consumer Products: (17.1%)
American Brands, Inc. ......................... 252,400 $ 9,152,654 $ 11,452,650
Eastman Kodak Co. ............................. 252,400 12,242,354 19,624,100
Procter & Gamble Co. .......................... 252,400 14,385,810 22,873,750
------------ ------------
35,780,818 53,950,500
------------ ------------
Oil International: (20.6%)
Chevron Corp. ................................. 252,400 11,363,197 14,891,600
Exxon Corp. ................................... 252,400 14,973,405 21,927,250
Mobil Corp. ................................... 252,400 19,391,974 28,300,350
------------ ------------
45,728,576 65,119,200
------------ ------------
Chemical & Fertilizers: (9.5%)
DuPont (E.I.) de Nemours & Co., Inc. .......... 252,400 13,475,413 19,971,150
Union Carbide Corp. ........................... 252,400 5,875,367 10,032,900
------------ ------------
19,350,780 30,004,050
------------ ------------
Electrical Equipment: (8.4%)
General Electric Co. .......................... 252,400 13,534,787 21,832,600
Westinghouse Electric Corp. ................... 252,400 5,167,566 4,732,500
------------ ------------
18,702,353 26,565,100
------------ ------------
Retailing: (5.7%)
Sears, Roebuck & Co. .......................... 252,400 6,745,464 12,272,950
Woolworth Corp.* .............................. 252,400 5,274,085 5,679,000
------------ ------------
12,019,549 17,951,950
------------ ------------
Utilities: (7.4%)
Consolidated Edison Co. of N.Y., Inc. ......... 252,400 7,142,520 7,382,700
Pacific Gas & Electric Co. .................... 252,400 6,543,409 5,868,300
Union Electric Co. ............................ 252,400 8,498,624 10,159,100
------------ ------------
22,184,553 23,410,100
------------ ------------
Railroads: (9.1%)
Burlington Northern Santa Fe .................. 139,514 6,970,780 11,283,195
Union Pacific Corp. ........................... 252,400 13,274,357 17,636,450
------------ ------------
20,245,137 28,919,645
------------ ------------
Energy: (5.8%)
Columbia Gas Systems, Inc. .................... 252,400 8,749,603 13,156,350
USX Marathon Group ............................ 252,400 5,264,370 5,079,550
------------ ------------
14,013,973 18,235,900
------------ ------------
Misc. Industrial: (7.9%)
Allied Signal Corp. ........................... 252,400 9,382,591 14,418,350
Praxair, Inc. ................................. 252,400 5,093,295 10,663,900
------------ ------------
14,475,886 25,082,250
------------ ------------
Communications: (4.9%)
A T & T Corp. ................................. 252,400 12,229,906 15,648,800
------------ ------------
Financial: (3.6%)
Travelers Group Inc. .......................... 252,400 7,877,397 11,515,750
------------ ------------
Total Investments (100%) ...................... $222,608,928 $316,403,245
============ ============
</TABLE>
*Non Income producing.
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
5
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS Six Months Ended June 30, 1996
- --------------------------------------------------------------------------------
Investment Income:
Income:
Dividends ....................................... $4,067,806
Interest ........................................ 51,263
----------
Total income .............................................. $ 4,119,069
Expenses:
Sponsor's administrative fee (Note 4) ........... 560,839
Professional fees ............................... 40,454
Trustee's fee (Note 4) .......................... 5,833
Custody fees and other services (Note 4) ........ 64,336
Transfer agent fees ............................. 184,428
Printing, mailing and sundry .................... 59,646
Registration and filing fees .................... 54,815
----------
Total expenses ............................................ 970,351
-----------
Net investment income ................................... 3,148,718
-----------
Realized and Unrealized Gain on Investments:
Net realized gain from securities transactions ................ 7,538,583
Unrealized appreciation of investments
for the period .............................................. 16,922,243
-----------
Net gain on investments ................................. 24,460,826
-----------
Net increase in net assets from operations .................. $27,609,544
===========
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
6
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, December 31,
1996 1995
-------- --------
<S> <C> <C>
Income and Distributable Fund:
Additions:
Net investment income ........................................... $ 3,148,718 $ 5,070,950
Realized gains from sale of securities,
other than sale of stock units ................................ 4,026,456 820,396
------------ ------------
7,175,174 5,891,346
------------ ------------
Deductions:
Paid on account of participations redeemed ...................... 306,172 212,668
Semi-annual distributions (Note 3(a))
Paid in cash ................................................ 1,032,534 939,656
Reinvested, below ........................................... 5,854,912 4,685,472
------------ ------------
7,193,618 5,837,796
------------ ------------
Net change in income and distributable fund ......................... (18,444) 53,550
------------ ------------
Principal Account:
Additions:
Payments received on sale of participations ..................... 99,935,852 74,367,391
Semi-annual distributions reinvested, above ..................... 5,854,912 4,685,472
Realized gains on sale of stock units ........................... 3,512,127 1,700,921
Unrealized appreciation (depreciation) of investments ........... 16,922,243 56,613,954
------------ ------------
126,225,134 137,367,738
------------ ------------
Deductions:
Paid on account of participations redeemed ...................... 56,008,602 35,780,396
Semi-annual distributions of principal (Note 3(b)) .............. 264,245 1,459,632
------------ ------------
56,272,847 37,240,028
------------ ------------
Net change in principal account ..................................... 69,952,287 100,127,710
------------ ------------
Net assets at beginning of year:
Income and distributable fund ....................................... 432,414 378,864
Principal account ................................................... 256,034,678 155,906,968
------------ ------------
256,467,092 156,285,832
------------ ------------
Net assets at end of period:
Income and distributable fund ....................................... 413,970 432,414
Principal account ................................................... 325,986,965 256,034,678
------------ ------------
$326,400,935 $256,467,092
============ ============
</TABLE>
See Notes to Financial Statements.
- --------------------------------------------------------------------------------
7
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Note 1. Nature of Business and Basis of Presentation
Lexington Corporate Leaders Trust Fund (the "Trust") is an unincorporated
Unit Investment Trust registered as such with the Securities and Exchange
Commission. The Trust commenced operations in 1941 as a series of Corporate
Leaders Trust Fund which was created under a Trust Indenture dated November 18,
1935. The Trust's objective is to seek long term capital growth and income
through investment in an equal number of shares of common stocks of a fixed list
of American blue chip companies.
Note 2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements:
(a) Valuation of securities-Investments are stated at value based on the
last sale price on the principal exchange on which the security is traded prior
to the time the Trust's assets are valued. Investments for which no sale is
reported, or which are traded over-the-counter, are valued at the mean between
bid and asked prices. Short term securities with 60 days or less to maturity are
valued at amortized cost.
(b) Income taxes-No provision for Federal income taxes is made since the
Trust, under applicable provisions of the Internal Revenue Code, is a Grantor
Trust and all its income is taxable to the Holders of participations.
(c) Other-Investment transactions are recorded on the trade date basis.
Dividend income is recorded on the ex-dividend date. Interest income is accrued
as earned.
(d) Use of estimates-The preparation of financial statements in conformity
with generally accepted accounting principles requires the trustee to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes.
Actual results could differ from those estimates.
Note 3. Distributions
(a) During the six months ended June 30, 1996 the distributions from net
investment income were $.13959 per participation and, from realized gains, were
$.17746 per participation.
(b) The amount shown does not reflect the reinvestment, if any, of that
portion from the sale of securities (other than stock units) representing the
cost of the securities sold which is distributed and then reinvested in
additional participations. In addition, any gain on the sale of stock units to
provide funds for the redemption of participations is non-distributable and
remains a part of the principal account. During the six months ended June 30,
1996, the distributions from return of capital were $.08114 per participation.
Note 4. Trustee and Sponsor Fees
State Street Bank and Trust Company (the "Trustee") receives an annual
Trustee fee, as well as fees for acting as custodian and for providing portfolio
accounting and record keeping services, which aggregated $70,169 for the six
months ended June 30, 1996. The Trust pays an administrative fee to Lexington
Management Corporation (Sponsor) equal, on an annual basis, to 0.40% of the
average daily net assets of the Trust.
Note 5. Investment Transactions
During the six months ended June 30, 1996, the cost of purchases and
proceeds of sales of investment securities, other than short-term obligations,
were $59,083,412 and $10,982,485, respectively.
The cost of investment securities as well as realized security gains and
losses are based on the identified cost basis. The cost of investments for
Federal income taxes is the same as that reported in the Trust's financial
statements.
As of June 30, 1996, net unrealized appreciation of portfolio securities was
$93,794,317, comprised of unrealized appreciation of $95,089,311 and unrealized
depreciation of $1,294,994.
Note 6. Source of Net Assets
As of June 30, 1996 the Trust's net assets were comprised of the following
amounts:
Net amounts paid in and reinvested by Holders net of terminations
and return of capital payments .................................. $191,904,920
Cumulative amount of non-distributable realized gains retained
in Principal Account ............................................ 40,287,728
Unrealized appreciation in value of securities .................... 93,794,317
------------
Principal account ............................................. 325,986,965
Income and distributable fund ................................. 413,970
------------
Total net assets .......................................... $326,400,935
============
- --------------------------------------------------------------------------------
8
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
- --------------------------------------------------------------------------------
Note 7. Participations Issued and Redeemed
During the periods indicated, participations were issued and redeemed as
follows:
<TABLE>
<CAPTION>
Number of Participations
Six Months
Ended Year Ended
June 30, December 31,
1996 1995
---------- ----------
<S> <C> <C>
Issued on payments from Holders ........................... 6,920,020 5,797,609
Issued on reinvestment of dividends and distributions ..... 500,128 914,327
Redeemed .................................................. (3,861,999) (2,910,131)
--------- ---------
Net increase .......................................... 3,558,149 3,801,805
========= =========
</TABLE>
Note 8. Selected Financial Information
<TABLE>
<CAPTION>
Six Month
Period
Ended Years Ended December 31,
Selected Data Per Participation June 30, -----------------------------------------
outstanding throughout the period: 1996 1995 1994 1993 1992 1991
- ---------------------------------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period .............. $13.74 $10.51 $12.78 $11.62 $11.52 $10.53
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ........................... 0.14 0.28 0.31 0.33 0.36 0.39
Net realized and unrealized gain (loss)
on investments ................................ 1.22 3.82 (0.45) 1.71 0.70 1.64
------ ------ ------ ------ ------ ------
Total from investment operations .................. 1.36 4.10 (0.14) 2.04 1.06 2.03
------ ------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income ............ (0.14) (0.28) (0.32) (0.33) (0.35) (0.40)
Distributions from net realized gains ........... (0.18) (0.03) (0.90) (0.28) (0.35) (0.28)
Distributions from income and realized
gains included in terminations ................ (0.02) (0.02) (0.01) - (0.01) -
Distributions from capital ...................... (0.08) (0.54) (0.90) (0.27) (0.25) (0.36)
------ ------ ------ ------ ------ ------
Total distributions ........................... (0.42) (0.87) (2.13) (0.88) (0.96) (1.04)
------ ------ ------ ------ ------ ------
Change in net asset value for the period .......... 0.94 3.23 (2.27) 1.16 0.10 0.99
------ ------ ------ ------ ------ ------
Net asset value at end of period .................. $14.68 $13.74 $10.51 $12.78 $11.62 $11.52
====== ====== ====== ====== ====== ======
Total return ...................................... 19.59%* 39.21% (0.77%) 17.57% 9.63% 19.41%
Ratios/Supplemental Data
Net Assets, end of period (000) ................... $326,401 $256,427 $156,286 $147,181 $105,712 $98,104
Ratios to average net asset of:
Expenses ........................................ 0.64%* 0.58% 0.62% 0.57% 0.60% 0.67%
Net investment income ........................... 2.06%* 2.57% 2.84% 2.78% 3.16% 3.46%
</TABLE>
*Annualized
- --------------------------------------------------------------------------------
9
<PAGE>
- --------------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
- --------------------------------------------------------------------------------
To the Participation Holders of
Lexington Corporate Leaders Trust Fund
We have audited the accompanying statement of assets and liabilities,
including the statement of investments of Lexington Corporate Leaders Trust Fund
as of June 30, 1996, and the related statements of operations, changes in net
assets and the selected financial information for the periods indicated in the
accompanying financial statements. These financial statements and selected
financial information are the responsibility of the management of the Trust. Our
responsibility is to express an opinion on these financial statements and
selected financial information based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and selected
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1996, by correspondence with State Street Bank and Trust
Company, Trustee. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and selected financial information
referred to above present fairly, in all material respects, the financial
position of Lexington Corporate Leaders Trust Fund as of June 30, 1996 and the
results of its operations, the changes in its net assets and the selected
financial information for the periods indicated, in conformity with generally
accepted accounting principles.
McGladrey & Pullen LLP
New York, New York
July 12, 1996
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10
<PAGE>
(LEFT COLUMN)
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 and Lexington Tax Free
Money Fund permit 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.
Trustee
(RIGHT COLUMN)
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 Troika Dialog Russia Fund, Inc.-Seeks long term capital appreciation
through investments primarily in equity securities of Russian companies.
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 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.
Lexington Tax Free Money Fund, Inc.-Seeks current income exempt from Federal
income taxes while maintaining stability of principal, liquidity and
preservation of capital.
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
1-800-526-0056. Read the prospectus carefully before you invest or send money.
11
<PAGE>
(LEFT COLUMN)
Trustee
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State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Auditors
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McGladrey & Pullen, LLP
555 Fifth Avenue
New York, New York 10017
Sponsor
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Lexington Management Corporation
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
Transfer Agent
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State Street Bank and Trust Company
c/o National Financial Data Services
City Center Square
P.O. Box 419648
Kansas City, Missouri 64141-6648
------------------------------------------
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
------------------------------------------
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(800) 526-0052
"LEXLINE"
24 hour toll-free telephone access to your
Lexington Fund account
Price/Yield * Account Balances * Exchanges *
Last Transaction Activity * Total Return *
Duplicate Statements
- --------------------------------------------------------------------------------
This report has been prepared for the information of the Participation Holders
of Lexington Corporate Leaders Trust Fund 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.
(RIGHT COLUMN)
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LEXINGTON
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LEXINGTON
CORPORATE
LEADERS
TRUST
FUND
(filled box)
SEMI-ANNUAL REPORT
JUNE 30, 1996
The Lexington Group
of
Investment Companies
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