Dear Shareholders:
During the first half of 1995 gold bullion continued trading within the
range of $370 an ounce to $397 an ounce which it has maintained since November
of 1993. However it is encouraging to note that despite the reported sale of 175
tons by Belgium as well as talk of other Central Banks' sales elsewhere in
Europe, physical demand enabled the gold price to hold firm at a low of $371 an
ounce for the period with a moderate upward bias allowing it to close at $385 an
ounce on June 30. The net result for the six-month period was a negligible
increase in the gold price of 0.42%. During the lengthy consolidation period
from late 1993, the bottom end of the range has consistently held firm due to
strong physical demand whereas forward selling by the producers and
institutional selling by commodity and hedge funds has put a cap on the rallies.
Physical demand, especially jewelry demand from the Far East, looks to be set
for continued strength. Meanwhile, producer forward sales are at historically
high levels and institutional fund holdings have dwindled dramatically. We are,
therefore, optimistic that the breakout from the long consolidation phase will
be on the upside and there are reasons to believe that the move could be
dramatic.
This lackluster performance of gold bullion was mirrored in the price
performance of the unmanaged Financial Times World Gold Mines Index which had a
-2.45% return for the first six months of 1995. However, while the overall index
showed only a small change for the period, major disparities were evident among
the different geographical subdivisions. The North American subsector of the
index was the star performer, up 18.61% for the period, while the African
subsector was down 16.10%. Even that number understates the decline of the South
African shares because of the inclusion of a Ghanaian company, Ashanti Gold
Mining, which was actually up for the period. The unmanaged Johannesburg All
Gold Index was down 27.5%. This decline came about because of productivity
problems among the South African gold mines resulting from unauthorized work
stoppages as well as fewer working days due to additional holidays. Gold
production in South Africa was down more than 10% in the first half of 1995 and
costs rose significantly. In addition, investors feared a potential strike.
Worries about the South African gold mines caused investors to concentrate their
buying in the North American shares with a less risky political and economic
environment. Meanwhile, the Australian subsector was down 6.61% due to
exceptionally bad rains as well as general weakness of the Southeast Asian
markets affecting investor sentiment.
The Lexington Goldfund was down 4.40%* for the period compared with an
increase of 2.85% for the average gold fund as monitored by Lipper Analytical
Services, Inc. This performance resulted from the Fund's heavier than average
weighting in South Africa at the beginning of the period which was 34.9% of the
Fund's portfolio and now down to 21.4%. Even though the South African gold
shares were significantly cheaper than the North American's in terms of
reserves, lower production together with higher costs have brought the valuation
of those reserves into question. In addition, the possibility of a strike still
exists. Due to these higher risks, the Fund's exposure to South Africa has been
considerably reduced with the proceeds going into Australia and North America.
Although there have been some encouraging signs in South Africa regarding the
potential for significantly greater productivity, we have not yet increased our
South African exposure although we are tempted by the valuations.
As we look forward from the long consolidation phase in the gold bullion
market we see encouraging signs. Earlier assaults by gold bullion on the $400 an
ounce level have been capped by aggressive producer forward selling and by
commodity and hedge fund selling. Producers are now well hedged, and lower
interest rates make forward selling prices less attractive. Meanwhile,
institutional speculators have gone from being long the last time gold rallied
towards the $400 mark to being net short at present. Also, Central Bank selling
in Europe appears slated to abate as they reach their targets for gold reserve
holdings while the Asian Central Banks, with only 6% of their huge foreign
reserves in gold bullion, are beginning to question the wisdom of their
traditional reliance on dollar denominated reserves. Meanwhile, the Japanese
public has increased its purchases of gold markedly as concerns mount over their
banking system and the Chinese eagerly buy gold in order to protect themselves
from
1
<PAGE>
rampant inflation. With global gold production showing little or no growth we
feel buoyed in our optimism for better gold prices ahead and feel that the
Lexington Goldfund portfolio is well positioned to take advantage of this
outlook.
Also included in this semi-annual report to shareholders is a summary of the
results of the shareholder meeting held on April 19, 1995. All of the proposals
were approved by a majority of shareholders.
We appreciate your continued support and would welcome the opportunity to
discuss any questions you may have about your investment.
Sincerely,
Robert W. Radsch Robert M. DeMichele
Portfolio Manager President
July, 1995 July, 1995
*-1.20%, 3.40% and 7.06% are the one, five and ten year average annual standard
total returns, respectively, for the period ended June 30, 1995. 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.
<PAGE>
Results of Annual Meeting of Shareholders held April 19, 1995 (unaudited)
Total Outstanding Shares as of February 1, 1995: 25,343,271
1. Directors Elected: Robert M. DeMichele, Beverley C. Duer, Barbara R.
Evans, Lawrence Kantor, Donald B. Miller, Francis Olmsted, John G. Preston,
Margaret W. Russell, Philip C. Smith and Francis A. Sunderland
<TABLE>
<CAPTION>
Votes Votes
Votes For Against Abstained
--------- ------- ---------
<S> <C> <C> <C>
2. Selection of KPMG Peat Marwick LLP as Independent Auditors ....... 12,266,642 617,296 1,328,207
3. Amended investment management agreement with Lexington
Management Corporation .......................................... 11,574,783 1,136,542 1,500,820
4. Amendment to fundamental restriction concerning senior
securities ...................................................... 11,302,325 1,405,960 1,503,861
5. Amendment to fundamental restriction concerning diversification .. 11,330,111 1,412,266 1,469,768
6. Elimination of fundamental restriction concerning restricted and
illiquid securities ............................................. 11,025,910 1,696,837 1,489,399
7. Elimination of fundamental restriction concerning margin and
short sales ..................................................... 10,977,323 1,739,437 1,495,385
8. Elimination of fundamental restriction concerning puts and calls . 11,156,030 1,582,787 1,473,327
9. Amendment to fundamental restriction concerning
concentrations .................................................. 11,566,907 1,158,054 1,487,185
10. Amendment to fundamental restriction concerning commodity
contracts ....................................................... 10,936,904 1,769,837 1,505,403
11. Amendment to fundamental restriction concerning real estate ...... 11,053,821 1,671,106 1,487,218
12. Elimination of fundamental restriction concerning securities of
issuers in operation less than three (3) years .................. 11,160,547 1,532,026 1,519,572
13. Elimination of fundamental restriction concerning securities of
affiliates ..................................................... 11,207,754 1,521,223 1,483,168
14. Amendment to fundamental restriction concerning lending .......... 10,990,842 1,619,076 1,602,227
15. Amendment to fundamental restriction concerning borrowing ........ 10,903,029 1,721,806 1,587,309
16. Amendment to fundamental restriction concerning underwriting ..... 11,107,354 1,454,494 1,650,297
17. Elimination of fundamental restriction concerning securities of
other investment companies ...................................... 10,919,228 1,653,528 1,639,389
18. Elimination of fundamental restriction concerning investment for
control ......................................................... 11,112,371 1,497,102 1,602,671
19. Elimination of fundamental restriction concerning joint trading
accounts ....................................................... 11,280,155 1,443,762 1,488,228
</TABLE>
3
<PAGE>
Lexington Goldfund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
June 30, 1995 (unaudited) (continued)
Number of
Shares or
Principal Value
Amount Security (Note 1)
--------------------------------------------------------------------------------
GOLD BULLION: 5.5%
22,015 fine ounces (cost $8,541,595)* ........ $ 8,463,893
------------
GOLD MINING COMMON STOCKS: 91.5%
AUSTRALIA: 22.2%
905,000 Acacia Resources Ltd. ........................ 1,593,748
135,650 Burmine Ltd. ................................. 269,710
400,000 Climax Mining Ltd. ........................... 318,124
950,000 Delta Gold NL ................................ 1,767,438
1,157,600 Eagle Mining Corporation NL1 ................. 1,274,118
200,000 Emperor Mines Ltd. ........................... 241,434
2,000,000 Gold Mines of Australia Ltd. ................. 411,858
4,490,423 Gold Mines of Kalgoorlie Ltd. ................ 4,017,698
1,300,000 Golden Shamrock Mines Ltd. ................... 978,517
750,000 Great Central Mines NL ....................... 1,672,285
800,000 Gwalia Consolidated Ltd. ..................... 1,102,075
1,072,727 Homestake Gold of Australia Ltd. ............. 1,112,145
100,000 Kidston Gold Mines Ltd. ...................... 138,469
1,000,000 Mineral Resources (N.Z.) Ltd. ................ 1,065,150
612,500 Mount Edon Gold Mines Ltd. ................... 1,326,555
1,141,200 Newcrest Mining Ltd. ......................... 4,821,678
275,000 Niugini Mining Ltd. .......................... 712,762
500,000 Plutonic Resources Ltd. ...................... 2,023,785
882,700 Posgold Ltd. ................................. 1,780,126
341,000 Ranger Minerals NL ........................... 799,075
792,857 Samantha Gold NL ............................. 1,570,791
2,977,100 St. Barbara Mines Ltd.1 ...................... 1,987,196
400,000 Western Mining Corporation Holdings Ltd. ..... 2,198,469
564,100 Wiluna Mines Ltd. ............................ 600,851
------------
33,784,057
------------
GHANA: 0.8%
49,000 Ashanti Goldfields Company Ltd . (ADR) ....... 1,139,250
------------
NORTH AMERICA: 46.1%
15,000 Amax Gold Inc. (Preferred shares) ............ 723,750
380,000 Barrick Gold Corporation ..................... 9,595,000
345,400 Cambior, Inc.1 ............................... 4,231,150
20,000 Cambior, Inc. (Warrants)* .................... 22,500
340,000 Canarc Resource Corporation .................. 495,446
200,000 Carson Gold Corporation ...................... 262,295
250,000 Carson Gold Corporation (Warrants)* .......... 2,500
350,000 Dayton Mining Corporation .................... 1,198,542
140,000 Euro Nevada Mining Corporation Ltd. .......... 4,284,153
75,000 Franco Nevada Mining Corporation Ltd. ........ 3,907,103
193,600 Freeport McMoran Copper & Gold ............... 3,993,000
400,000 Goldbelt Resources Ltd. ...................... 198,178
100,000 Golden Knight Resources, Inc. ................ 637,522
237,800 Golden Star Resources Ltd.1 .................. 1,664,600
120,000 Golden Star Resources Ltd. (Warrants)*1 ....... 1,200
100,000 Granges, Inc. ................................ 168,306
165,400 Guyanor Resources S.A. ....................... 373,581
237,800 Hemlo Gold Mines, Inc. ....................... 2,526,625
48,100 International Gold Resources Corporation ..... 168,218
200,000 Laminco Resources, Inc. ...................... 272,495
140,000 Newmont Gold Company ......................... 5,635,000
102,291 Newmont Mining Corporation ................... 4,283,435
62,000 North American Palladium Ltd. ................ 325,500
210,000 Placer Dome, Inc. ............................ 5,486,250
150,000 Prime Resource Group, Inc. ................... 1,038,251
379,002 Santa Fe Pacific Gold Corporation ............ 4,595,399
150,000 Stillwater Mining Company .................... 4,200,000
200,000 Triton Mining Cororation (Special Warrants)1 . 677,595
1,250,000 TVX Gold, lnc. ............................... 9,062,500
286,500 Venoro Gold Corporation ...................... 135,683
------------
70,165,777
------------
4
<PAGE>
Lexington Goldfund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
June 30, 1995 (unaudited) (continued)
Number of
Shares or
Principal Value
Amount Security (Note 1)
--------------------------------------------------------------------------------
SOUTH AFRICA: 21.4%
58,000 Anglo American Platinum (ADR) ................ $ 414,705
15,000 Anglovaal Ltd. "N" ........................... 515,818
235,000 Beatrix Mines Ltd. (ADR) ..................... 1,664,105
1,493,000 Deelkraal Gold Mining Company Ltd. (ADR) ..... 1,252,179
201,000 Driefontein Consolidated Ltd. (ADR) .......... 2,801,437
103,000 Driefontein Consolidated Ltd. ................ 1,515,955
49,200 Durban Roodeport Deep Ltd. (ADR) ............. 460,024
1,299,000 East Rand Gold & Uranium Company
Ltd. (ADR) ................................. 3,250,747
370,000 Elandsrand Gold Mining Company Ltd. (ADR) .... 1,780,625
150,000 Free State Development & Investment
Ltd. (ADR) ................................. 94,875
20,000 Free State Consolidated Gold Mines Ltd. (ADR) 247,500
360,000 Gencor Ltd. .................................. 1,237,964
177,000 St. Helena Gold Mines Ltd. (ADR) ............. 1,548,750
200,000 Impala Platinum Holdings Ltd. (ADR) .......... 5,060,080
58,000 JCI Ltd. (ADR) ............................... 402,740
58,000 Johnnies Industrial Corporation (ADR) ........ 614,080
100,000 Kinross Mines Ltd. (ADR) ..................... 797,510
30,500 Kloof Gold Mining Company Ltd. (ADR) ......... 329,781
125,000 Kloof Gold Mining Company Ltd. ............... 1,427,097
360,000 Randgold & Exploration Company Ltd. (ADR) .... 168,300
161,600 Rustenburg Platinum Holdings Ltd. (ADR) ...... 3,333,048
66,000 Vaal Reefs Exploration & Mining
Company Ltd. (ADR) ......................... 410,437
220,000 Western Areas Gold Mining Company
Ltd. (ADR) ................................. 2,510,772
99,000 Winkelhaak Mines Ltd. (ADR) .................. 735,110
------------
32,573,639
------------
UNITED KINGDOM: 1.0%
30,000 RTZ Corporation Plc (ADR) ................... 1,586,250
------------
TOTAL GOLD MINING COMMON STOCKS:
(Cost $123,801,375) ........................ 139,248,973
------------
CONVERTIBLE NOTES: 0.4%
$750,000 Canyon Resources Corporation1
6.00% due 06/01/98 (Cost $683,027) ......... 577,500
------------
SHORT-TERM INVESTMENTS: 2.6%
2,000,000 U.S. Treasury Bills 5.33%, due 8/31/95 ....... 1,981,938
2,000,000 U.S. Treasury Bills 5.37%, due 9/21/95 ....... 1,975,559
------------
TOTAL SHORT-TERM INVESTMENTS
(Cost $3,957,497) .......................... 3,957,497
------------
TOTAL INVESTMENTS: 100.0%
(Cost $136,983,494(D)) (Note 1) ............ 152,247,863
Liabilities in excess of
other assets ............................... (42,777)
------------
TOTAL NET ASSETS: 100.0%
(equivalent to $6.04 per share on
25,199,100 shares outstanding) ............. $152,205,086
============
ADR-American Depository Receipt.
*Non-income producing investments.
**Restricted securities.
(D)Aggregate cost for Federal income tax purposes is identical.
The Notes to Financial Statements are an integral part of this statement.
5
<PAGE>
Lexington Goldfund, Inc.
Statement of Assets and Liabilities
June 30, 1995 (unaudited)
Assets
<TABLE>
<S> <C>
Investments, at value (cost $136,983,494) (Note 1) ....................................... $152,247,863
Cash ..................................................................................... 847,314
Receivable for investment securities sold ................................................ 31,530
Receivable for shares sold ............................................................... 281,161
Dividends and interest receivable ........................................................ 381,903
------------
Total Assets ................................................................... 153,789,771
------------
Liabilities
Due to Lexington Management Corporation (Note 2) ......................................... 113,074
Payable for shares redeemed .............................................................. 1,307,368
Payable for investment securities purchased .............................................. 120,763
Accrued expenses ......................................................................... 43,480
------------
Total Liabilities .............................................................. 1,584,685
------------
Net Assets (equivalent to $6.04 per share on 25,199,100 shares outstanding) (Note 4) ..... $152,205,086
============
Net Assets consist of:
Capital stock-authorized 500,000,000 shares, $.001 par value per share ................... $ 25,199
Additional paid-in capital ............................................................... 160,558,296
Undistributed net investment income ...................................................... 282,195
Accumulated net realized loss on investments ............................................. (23,924,973)
Net unrealized appreciation of investments ............................................... 15,264,369
------------
$152,205,086
============
</TABLE>
The Notes to Financial Statements are an integral part of this statement.
6
<PAGE>
Lexington Goldfund, Inc.
Statement of Operations
Six months ended June 30, 1995 (unaudited)
<TABLE>
<S> <C> <C>
Investment Income
Income
Dividends ............................................................. $ 1,389,162
Interest ............................ ................................. 280,418
-----------
1,669,580
Less: foreign tax expense ............................................... 239,556
-----------
Total investment income ............................................... $1,430,024
Expenses
Investment advisory fee (Note 2) ...................................... 631,945
Accounting and shareholder services expense (Note 2) .................. 122,958
Custodian and transfer agent expenses ................................. 97,202
Printing and mailing .................................................. 101,642
Directors' fees and expenses .......................................... 5,543
Audit and legal ....................................................... 23,146
Registration fees ..................................................... 24,533
Distribution expenses (Note 3) ........................................ 189,882
Other expenses ........................................................ 51,346
-----------
Total expenses ...................................................... 1,248,197
----------
Net investment income ............................................. 181,827
----------
Realized and Unrealized Gain (Loss) on Investments (Note 5)
Realized loss on investments (excluding short-term securities):
Proceeds from sales ................................................... 26,327,059
Cost of securities sold ............................................... 29,748,814
-----------
Net realized loss ................................................... (3,421,755)
Unrealized appreciation of investments:
End of period ......................................................... 15,264,369
Beginning of period ................................................... 19,664,931
-----------
Change during period ................................................ (4,400,562)
----------
Net realized and unrealized loss on investments ................... (7,822,317)
----------
Decrease in Net Assets Resulting from Operations ........................ $(7,640,490)
===========
</TABLE>
The Notes to Financial Statements are an integral part of this statement.
7
<PAGE>
Lexington Goldfund, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six months Year
ended ended
June 30, 1995 December 31,
(unaudited) 1994
----------- ----------
<S> <C> <C>
Net investment income ................... $ 181,827 $ 783,023
Net realized gain (loss) from security transactions ........................ 3,421,755) 5,641,763
Decrease in unrealized appreciation of investments ........................ (4,400,562) (19,365,629)
----------- ----------
Net decrease in net assets resulting from operations ...... (7,640,490) (12,940,843)
Distributions to shareholders from net investment income ............... . - (704,103)
Increase in net assets from capital share transactions (Note 4) ......... 410,970 13,600,482
----------- ----------
Net decrease in net assets ....... (7,229,520) (44,464)
Net Assets
Beginning of period ................... 159,434,606 159,479,070
----------- ----------
End of period (including undistributed net investment income of
$282,195 and $100,368, respectively) ............. $152,205,086 $159,434,606
============ ============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
8
<PAGE>
Lexington Goldfund, Inc.
Notes to Financial Statements
June 30, 1995 (unaudited) and December 31, 1994
(Left Column)
1. Significant Accounting Policies
Lexington Goldfund, Inc. (the "Fund") is an open end non-diversified management
investment company registered under the Investment Company Act of 1940, as
amended. 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. Investments in securities traded on a national securities
exchange are valued at the last sale price on the last business day of the
fiscal period. Securities traded on the over-the-counter market and gold bullion
are valued at the mean between the last reported bid and asked price. Securities
for which market quotations are not readily available and other assets are
valued at fair value as determined by management and approved in good faith by
the Board of Directors. Short-term securities are stated at amortized cost,
which approximates market value. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is accrued as
earned.
Foreign Currency Transactions Foreign currencies (and receivables and
payables denominated in foreign currencies) are translated into U.S. dollar
amounts at current exchange rates. Translation gains or losses resulting from
changes in exchange rates and realized gains and losses on the settlement of
foreign currency transactions are reported in the statement of operations. In
addition, the Fund may enter into forward foreign exchange contracts in order to
hedge against foreign currency risk in the purchase or sale of securities
denominated in foreign currency. The Fund may also enter into such contracts to
hedge against changes in foreign currency exchange rates on portfolio positions.
These contracts are marked to market daily, by recognizing the difference
between the contract exchange rate and the current market rate as unrealized
gains or losses. Realized gains or losses are recognized when contracts are
settled and are reported in the statement of operations.
Distributions Effective January 1, 1993, the Fund adopted Statement of
Position 93-2: Determination, Disclosure and Financial Statement Presentation of
Income,
(Right Column)
Capital Gain and Return of Capital Distributions by Investment Companies. As of
December 31, 1994, book and tax basis differences amounting to $26,684 have been
reclassified from undistributed net investment income to additional paid-in
capital. In addition, foreign exchange losses of $7,999 were reclassified from
accumulated net realized losses to undistributed net investment income.
Federal Income Taxes It is the Fund's intention 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 has been made.
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% of the Fund's average daily net assets up to
$50 million and 0.75% of average daily net assets in excess of $50 million. The
investment advisory contract provides that the total annual expenses of the Fund
(including management fees, but excluding interest, taxes, brokerage commissions
and extraordinary expenses) will not exceed the level of expenses which the Fund
is permitted to bear under the most restrictive expense limitation imposed by
any state in which shares of the Fund are offered for sale. No reimbursement was
required for the six months ended June 30, 1995.
The Fund also reimburses LMC for certain expenses, including accounting and
shareholder servicing costs, which are incurred by the Fund, but paid by LMC.
3. Distribution Plan
The Fund has adopted 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 Fund Distributors, Inc. ("LFD"), the Fund's
distributor in amounts not exceeding .25% per annum of the Fund's average daily
net assets. Total distribution expenses for the six months ended June 30, 1995
were $189,882 which are set forth in the statement of operations.
9
<PAGE>
Lexington Goldfund, Inc.
Notes to Financial Statements
June 30, 1995 (unaudited) and December 31, 1994 (continued)
(Left Column)
4. Capital Stock
Transactions in capital stock were as follows:
Six months ended
June 30, 1995 Year ended
(unaudited) December 31, 1994
----------------------- -------------------------
Shares Amount Shares Amount
---------- ----------- ---------- ------------
Shares sold 13,465,478 $78,818,604 29,889,582 $196,803,590
Shares issued to share-
holders on reinvest-
ment of dividends - - 93,509 615,486
---------- ----------- ---------- ------------
13,465,478 78,818,604 29,983,091 197,419,076
Shares redeemed (13,286,088) (78,407,634) (28,084,616) (183,818,594)
---------- ----------- ---------- ------------
Net increase 179,390 $ 410,970 1,898,475 $13,600,482
========== =========== ========== ============
5. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments for the six months
ended June 30, 1995, excluding short-term securities, were $28,102,000 and
$26,327,059, respectively.
(Right Column)
At June 30, 1995, aggregate gross unrealized appreciation for all investments in
which there is an excess of value over tax cost amounted to $26,667,244 and
aggregate gross unrealized depreciation for all investments in which there is an
excess of tax cost over value amounted to $11,402,875.
6. Investment and Concentration Risks
The Fund makes significant investments in foreign securities and has a policy of
investing in gold and in the securities of companies engaged in mining or
processing gold. There are certain risks involved in investing in foreign
securities or concentrating in specific industries, such as mining and
processing gold, that are in addition to the usual risks inherent in domestic
investments. The price of gold in particular, is subject to substantial price
fluctuations over short periods of time. These risks also include those
resulting from future adverse political and economic developments as well as the
possible imposition of foreign exchange or other foreign governmental
restrictions or laws.
-----------------------------
Lexington Goldfund, Inc.
Financial Highlights
Selected per share data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
Six months
ended Year ended December 31,
June 30, 1995 ---------------------------------
(unaudited) 1994 1993 1992 1991
----------- ---------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ....... $6.37 $6.90 $3.70 $4.68 $5.03
----- ----- ----- ----- -----
Income from investment operations:
Net investment income .................... .01 .03 .01 .02 .04
Net realized and unrealized gain (loss)
on investments ......................... (.34) (.53) 3.21 (.98) (.35)
----- ----- ----- ----- -----
Total income (loss) from investment
operations ............................... (.33) (.50) 3.22 (.96) (.31)
----- ----- ----- ----- -----
Less distributions:
Dividends from net investment income ..... - (.03) (.02) (.02) (.04)
----- ----- ----- ----- -----
Net asset value, end of period ............. $6.04 $6.37 $6.90 $3.70 $4.68
===== ===== ===== ===== =====
Total return ............................... (10.13%)* (7.28%) 86.96% (20.51%) (6.14%)
Ratio to average net assets:
Expenses ................................. 1.64%* 1.54% 1.63% 1.69% 1.43%
Net investment income .................... .24%* .50% .25% .58% .81%
Portfolio turnover ......................... 36.66%* 23.77% 28.41% 13.18% 22.14%
Net assets, end of period (000's omitted) .. $152,205 $159,435 $159,479 $71,856 $96,316
*Annualized
</TABLE>
10
<PAGE>
(Left Column)
Lexington
Goldfund, Inc.
Investment Adviser
----------------------------------------------------------
LEXINGTON MANAGEMENT CORPORATION
P.O. Box 1515
Park 80 West Plaza Two
Saddle Brook, New Jersey 07663
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 * Account Balances * Exchanges *
Last Transactions * Total Return * Duplicate Statements
----------------------------------------------------------
This report has been prepared for the information of the
shareholders of Lexington Goldfund, 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.
(Right Column)
------------------------------------------
LEXINGTON
------------------------------------------
------------------------------------------
LEXINGTON
GOLDFUND,
INC.
(filled box)
Seeks capital appreciation and such
hedge against loss of buying power
as may be obtained through
investment in gold and equity
securities of companies engaged in
mining or processing gold
throughout the world.
(filled box)
SEMI-ANNUAL REPORT
JUNE 30, 1995
The Lexington Group
of No Load
Investment Companies
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