<PAGE>
================================================================================
Semi-Annual
Report
[GRAPHIC] June 30, 2000
(unaudited)
--------------------------------------------------------------------------------
Pilgrim Mutual Funds
--------------------------------------------------------------------------------
PILGRIM
GOLD FUND, INC.
------------------------------------------
Investment Objective: Capital Appreciation
<PAGE>
Chairman's Message
-------------------------------------------------------------------------------
Dear Shareholders:
Welcome to the Pilgrim Mutual Funds family. We are pleased to present the
Semi-Annual Report for Pilgrim Gold Fund, Inc. (formerly Lexington Goldfund,
Inc.).
On July 26, 2000, ReliaStar Financial Corp. ("ReliaStar") acquired Lexington
Management Corporation and all of its subsidiaries. In conjunction with the
acquisition, Pilgrim Investments, Inc., a subsidiary of ReliaStar, was
appointed to the role of Investment Adviser to the Fund. As a shareholder in
the Pilgrim family of funds, you now have access to more funds with varying
investment objectives. As a Lexington Fund shareholder as of July 26th, you
can now exchange into any Pilgrim Fund A shares without paying a sales load.
Our fund family has 41 varying types of mutual funds which provide more core
investment choices for the serious investor. We believe that the key to
success is matching quality core investments to the individual needs of
investors. Core investments are the foundation of every portfolio and the
basis of other important investment decisions. Pilgrim prides itself on
providing a family of core investments designed to help you reach your
financial goals. Our goal is for every investor to have a successful
investment experienceSM.
If you have any questions regarding your account, or any other Pilgrim Fund
you can access, please call us at 800-992-0180 or visit our website at
www.pilgrimfunds.com.
Sincerely,
/s/ Robert W. Stallings
Robert W. Stallings
Chairman and Chief Executive Officer
Pilgrim Group, Inc.
August, 2000
<PAGE>
Dear Shareholders:
-------------------------------------------------------------------------------
The gold market continues to be buffeted by external pressures specifically
producer forward sales and central bank selling. As a result, after reaching a
high of $315 per ounce in February the bullion prices fell to a low of $270
per ounce in late May. As the first half closed, the price recovered to the
$290 per ounce level. For the six month period ending June 30, 2000, Pilgrim
Gold Fund, Inc. (formerly Lexington Goldfund, Inc.) had a total return of
(16.72)%* compared to a total return of (14.65)% for the average gold-oriented
mutual fund monitored by Lipper, Inc.
The disappointing price action is masking several positive changes occurring
within the gold sector. First, physical gold demand continues to rise spurred
by favorable economic trends globally. Jewelry demand in the first quarter
rose 7% worldwide and this trend is expected to have continued through the end
of June. While somewhat perverse, the second positive is the low absolute gold
price. Industry sources estimate that a price of $400 per ounce is needed to
develop new sources of supply. Over the next two to three years mine supply is
expected to trail demand by increasing amounts. With the Central Banks
apparently abiding by the Washington Accords, this source of supply is
limited, setting the stage for higher gold prices over the intermediate term.
This latter issue is creating another positive in the gold sector,
consolidation. Presently about 300 companies supply the approximately 2,600
tons produced annually with the largest, Anglogold, representing less than
10%. The world's largest companies account for only about 40%. This
fragmentation has resulted in a lack of interest by global investors beyond
sector funds because of small market capitalizations. However, recent events
indicate this is being resolved. Anglogold of South Africa acquired Newcrest,
in Australia; Barrick recently purchased a neighbor in Tanzania, Pangea Gold
Fields; Newmont plans to purchase Battle Mountain Gold; and Franco Nevada of
Canada and Gold Fields, Ltd. of South Africa announced plans to merge. As the
industry consolidates, marginal mines will be closed, further limiting future
supply. All this points to higher gold prices.
Within this expected environment the Fund remains weighted toward unhedged
gold producers who are expected to provide greater upside performance in the
face of rising bullion prices. The Fund also maintains holdings in
intermediate and junior producers who are expected to be targets of the larger
global gold producers.
As you are aware, Lexington Global Asset Managers, Inc., the parent company
of Lexington Management Corporation was acquired by ReliaStar Financial Corp.
(NYSE:RLR) the parent company of Pilgrim Investments, Inc., an investment
management and mutual fund company with $17 billion of assets under
management.
On May 1, ReliaStar announced that it agreed to be acquired by ING Groep
N.V. ("ING Group") in a transaction that, subject to certain approvals, is
expected to close in the third quarter of this year. ING Group is a global
financial institution that is active in the field of insurance, banking, and
asset management in more than 60 countries.
1
<PAGE>
We wish to thank you for your continued support.
Sincerely,
/s/ James A. Vail
James A. Vail
Portfolio Manager
August, 2000
-------
*(8.67)%, (11.64)%, and (4.41)% are the one, five, and ten year average annual
standard total returns, respectively, for the period ended June 30, 2000.
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. The price of gold is subject to substantial price fluctuations
over short periods of time and may be affected by unpredictable international
monetary and political policies. Total return represents past performance and
is not predictive of future results. There is no guarantee that the Fund can
achieve its objective.
2
<PAGE>
Pilgrim Gold Fund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
June 30, 2000 (unaudited)
<TABLE>
<CAPTION>
Number of Value
Shares Security (Note 1)
--------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS: 87.9%
Australia: 7.4%
1,000,000 Delta Gold, Ltd. ..................................... $ 745,121
777,172 Newcrest Mining, Ltd./1/ ............................. 2,099,833
2,002,539 Normandy Mining, Ltd. ................................ 1,082,128
-----------
3,927,082
-----------
Canada: 33.7%
443,000 Agnico-Eagle Mines, Ltd. ............................. 2,851,812
65,000 Barrick Gold Corporation.............................. 1,182,188
300,000 Claude Resources, Inc./1/ ............................ 123,509
400,000 Claude Resources, Inc./1/,/2/ ........................ 164,679
200,000 Claude Resources, Inc. (Warrants)/1/,/2/ ............. --
201,500 Franco Nevada Mining Corporation, Ltd. ............... 2,325,518
541,400 Goldcorp, Inc."A"/1/ ................................. 3,873,224
416,100 IAMGOLD Corporation/1/ ............................... 856,537
1,050,000 Kinross Gold Corporation/1/ .......................... 935,431
470,000 Meridian Gold, Inc./1/ ............................... 2,854,887
285,500 Placer Dome, Inc. .................................... 2,730,094
-----------
17,897,879
-----------
South Africa: 30.7%
61,749 Anglo American Platinum Corporation, Ltd. ............ 1,779,669
68,749 Anglogold, Ltd. ...................................... 2,808,865
68,500 De Beers Consolidated Mines, Ltd. (ADR)............... 1,663,266
952,900 Gold Fields, Ltd. .................................... 3,738,641
641,656 Harmony Gold Mining, Ltd. ............................ 3,549,101
74,460 Impala Platinum Holdings, Ltd. ....................... 2,769,829
-----------
16,309,371
-----------
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares or Value
Principal Amount Security (Note 1)
-------------------------------------------------------------------------------
<C> <S> <C>
United States: 16.1%
177,600 Freeport McMoran Copper & Gold "A"/1/ ......... $ 1,620,600
368,570 Homestake Mining Company....................... 2,533,919
140,170 Newmont Mining Corporation..................... 3,031,176
50,000 Stillwater Mining Company/1/ .................. 1,393,750
-----------
8,579,445
-----------
TOTAL COMMON STOCKS
(cost $57,153,719)............................ 46,713,777
-----------
GOLD BULLION: 5.2%
9,513 fine ounces (cost $3,640,945)/1/ ........ 2,759,606
-----------
SHORT-TERM INVESTMENT: 5.1%
U.S. Government Agency Obligation: 5.1%
$2,700,000 Federal Home Loan Bank, 6.48%, due 07/03/00
(cost $2,699,028)............................. 2,699,028
-----------
TOTAL INVESTMENTS: 98.2%
(cost $63,493,692+) (Note 1).................. 52,172,411
Other assets in excess of liabilities: 1.8%.... 980,409
-----------
TOTAL NET ASSETS: 100.0%
(equivalent to $2.74 per share on 19,402,979
shares outstanding)........................... $53,152,820
===========
</TABLE>
--------
/1/Non-income producing security.
/2/Restricted security (Note 7).
ADR--American Depository Receipt.
+ Aggregate cost for Federal income tax purposes is $65,225,195.
The Notes to Financial Statements are an integral part of this statement.
3
<PAGE>
Pilgrim Gold Fund, Inc.
Statement of Assets and Liabilities
June 30, 2000 (unaudited)
<TABLE>
<S> <C>
Assets
Investments, at value (cost $63,493,692)
(Note 1)....................................................... $ 52,172,411
Cash............................................................ 184,689
Receivable for investment securities sold....................... 995,975
Receivable for shares sold...................................... 11,412
Dividends and interest receivable............................... 142,356
------------
Total Assets................................................. 53,506,843
------------
Liabilities
Due to Lexington Management Corporation (Note 2)................ 43,106
Payable for investment securities purchased..................... 71,433
Payable for shares redeemed..................................... 33,133
Accrued expenses................................................ 206,351
------------
Total Liabilities............................................ 354,023
------------
Net Assets (equivalent to $2.74 per share on 19,402,979 shares
outstanding) (Note 4).......................................... $ 53,152,820
============
Net Assets consist of:
Capital stock -- authorized 500,000,000 shares, $.001 par value
per share...................................................... $ 19,403
Additional paid-in-capital...................................... 127,912,981
Accumulated net investment loss................................. (105,392)
Accumulated net realized loss on investments and foreign
currency transactions.......................................... (63,342,499)
Unrealized depreciation of investments and foreign currency
translations of other assets and liabilities................... (11,331,673)
------------
Total Net Assets............................................. $ 53,152,820
============
</TABLE>
Pilgrim Gold Fund, Inc.
Statement of Operations
Six months ended June 30, 2000 (unaudited)
<TABLE>
<S> <C> <C>
Investment Income
Dividends.......................................... $ 486,865
Interest........................................... 66,884
-----------
553,749
Less: foreign tax expense.......................... 15,911
-----------
Total investment income............................ $ 537,838
Expenses
Investment advisory fee
(Note 2).......................................... 279,738
Transfer agent and shareholder servicing expenses
(Note 2).......................................... 102,395
Directors' fees and expenses....................... 99,346
Distribution expenses (Note 3)..................... 29,012
Professional fees.................................. 24,977
Printing and mailing expenses...................... 24,516
Accounting expenses (Note 2)....................... 20,179
Custodian expenses................................. 18,066
Registration fees.................................. 16,670
Computer processing fees........................... 9,623
Other expenses..................................... 31,541
-----------
Total expenses..................................... 656,063
------------
Net investment loss................................ (118,225)
Realized and Unrealized Loss on Investments (Note 5)
Net realized loss on:
Investments........................................ (3,726,792)
Foreign currency transactions...................... (14,598)
-----------
Net realized loss................................ (3,741,390)
Net change in unrealized depreciation of:
Investments........................................ (7,843,335)
Foreign currency translation of other assets and
liabilities....................................... (10,392)
-----------
Net change in unrealized depreciation............ (7,853,727)
------------
Net realized and unrealized loss.................... (11,595,117)
------------
Decrease in Net Assets Resulting from Operations.... $(11,713,342)
============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
4
<PAGE>
Pilgrim Gold Fund, Inc.
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six months ended
June 30, 2000 Year ended
(unaudited) December 31, 1999
---------------- -----------------
<S> <C> <C>
Operations:
Net investment loss......................... $ (118,225) $ (15,134)
Net realized loss from investments and
foreign currency transactions.............. (3,741,390) (25,588,891)
Net change in unrealized depreciation of
investments and foreign currency
translation................................ (7,853,727) 32,389,359
------------ ------------
Net increase (decrease) in net assets
resulting from operations................ (11,713,342) 6,785,334
------------ ------------
Capital Share Transactions: (Note 4)
Proceeds from sale of shares................ 13,614,628 31,794,471
Net assets received in connection with
reorganization (Note 1).................... -- 17,841,616
Cost of shares redeemed..................... (21,264,548) (34,746,635)
------------ ------------
Net increase (decrease) in net assets from
capital share transactions............... (7,649,920) 14,889,452
------------ ------------
Net increase (decrease) in net assets....... (19,363,262) 21,674,786
Net Assets:
Beginning of period......................... 72,516,082 50,841,296
------------ ------------
End of period (including accumulated net
investment loss of $105,392 and
undistributed net investment income of
$12,833 in 2000 and 1999, respectively)
(Note 1)................................... $ 53,152,820 $ 72,516,082
============ ============
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
5
<PAGE>
Pilgrim Gold Fund, Inc.
Notes to Financial Statements
June 30, 2000 (unaudited) and December 31, 1999
1.Significant Accounting Policies
Pilgrim Gold Fund, Inc. (formerly 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 Fund's investment
objective is to attain capital appreciation and as 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. On February 18, 1999, the Board of Directors of the Fund approved an
Agreement and Plan of Reorganization and Liquidation providing for the
transfer of all or substantially all of the Lexington Strategic Investments
Fund, Inc.'s ("Strategic Investments") assets and liabilities to the Fund in a
tax free exchange of capital stock of the Fund at net asset value and the
assumption of stated liabilities (the "Exchange"). The Exchange was approved
by the shareholders of Strategic Investments on June 22, 1999, and was
completed after the close of business on June 25, 1999 at which time
14,495,064 shares valued at $1.23 per share, representing net assets of
$17,841,616 (including $9,295,470 net unrealized depreciation of investments)
were exchanged by Strategic Investments for the respective number of shares of
the Fund. The following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial statements:
Investments Securities transactions are accounted for on a trade date
basis. Realized gains and losses from investment transactions are reported on
the identified cost basis. Securities traded on a recognized stock exchange
are valued at the last sales price reported by the exchange on which the
securities are traded. If no sales price is recorded, the mean between the
last bid and asked prices is used. Securities traded on the over-the-counter
market and gold bullion are valued at the mean between the last current bid
and asked prices. Short-term securities having a maturity of 60 days or less
are stated at amortized cost, which approximates market value. Securities for
which market quotations are not readily available and other assets are valued
by Fund management in good faith under the direction of the Fund's Board of
Directors. All investments quoted in foreign currencies are valued in U.S.
dollars on the basis of the foreign currency exchange rates prevailing at the
close of business. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income, adjusted for amortization
of premiums and accretion of discounts, is accrued as earned.
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 closed and are reported in the statement of operations.
The Fund authorizes its custodian to place and maintain equity securities in a
segregated account of the Fund having a value equal to the aggregate amount of
the Fund's commitments under forward foreign currency contracts entered into
with respect to position hedges. There are no forward foreign currency
contracts outstanding at June 30, 2000.
6
<PAGE>
Pilgrim Gold Fund, Inc.
Notes to Financial Statements
June 30, 2000 (unaudited) and December 31, 1999 (continued)
1.Significant Accounting Policies (continued)
Federal Income Taxes It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to "regulated investment
companies" and to distribute all of its taxable income to its shareholders.
Therefore, no provision for Federal income taxes is required.
Distributions Dividends from net investment income and net realized capital
gains are normally declared and paid annually, but the Fund may make
distributions on a more frequent basis to comply with the distribution
requirements of the Internal Revenue Code. The character of income and gains
to be distributed are determined in accordance with income tax regulations,
which may differ from generally accepted accounting principles. At December
31, 1999, reclassifications were made to the Fund's capital accounts to
reflect permanent book/tax differences and income and gains available for
distribution under income tax regulations. Net investment income, net realized
gains and net assets were not affected by this change.
Use of Estimates The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
2.Investment Advisory Fee and Other Transactions with Affiliate
The Fund paid an investment advisory fee to Lexington Management Corporation
("LMC") at an annual rate of 1.00% of the Fund's average daily net assets up
to $50 million and at an annual rate of 0.75% thereafter. For 2000, the
adviser, has agreed to voluntarily limit the total expenses of the Fund
(excluding interest, taxes, brokerage commissions, 12b-1 fees and
extraordinary expenses, but including management fee and operating expenses)
to an annual rate of 2.50% of the Fund's average net assets. No reimbursement
was required for the six months ended June 30, 2000.
The Fund reimbursed LMC for certain expenses, including accounting and
shareholder servicing costs of $40,433, which were incurred by the Fund, but
paid by LMC.
3.Distribution Plan
The Fund had a Distribution Plan (the "Plan") which allowed payments to
finance activities associated with the distribution of the Fund's shares. The
Plan provided that the Fund may pay distribution fees on a reimbursement
basis, including payments to Lexington Funds Distributor, Inc. ("LFD"), the
Fund's distributor, in amounts not exceeding 0.25% per annum of the Fund's
average daily net assets. Total distribution expenses for the six months ended
June 30, 2000 were $29,012 and are set forth in the statement of operations.
7
<PAGE>
Pilgrim Gold Fund, Inc.
Notes to Financial Statements
June 30, 2000 (unaudited) and December 31, 1999 (continued)
4.Capital Stock
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
Six months ended
June 30, 2000 Year ended
(unaudited) December 31, 1999
------------------------ -------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Shares sold.............. 4,625,475 $ 13,614,628 10,050,258 $ 31,794,471
Shares issued in
connection with
reorganization.......... -- -- 6,190,600 17,841,616
---------- ------------ ----------- ------------
4,625,475 13,614,628 16,240,858 49,636,087
Shares redeemed.......... (7,236,103) (21,264,548) (10,982,141) (34,746,635)
---------- ------------ ----------- ------------
Net increase (decrease).. (2,610,628) $ (7,649,920) 5,258,717 $ 14,889,452
========== ============ =========== ============
</TABLE>
5.Investment Transactions
The cost of purchases and proceeds from sales of securities for the six months
ended June 30, 2000, excluding short-term securities, were $9,236,099 and
$17,304,216, respectively.
At June 30, 2000, the aggregate gross unrealized appreciation for all
securities in which there is an excess of value over tax cost amounted to
$3,849,852 and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value amounted to $16,902,636.
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 of gold. There are certain risks involved in investing in foreign
securities or concentrating in specific industries that are in addition to the
usual risks inherent in domestic investments. These risks include those
resulting from potentially adverse political and economic developments as well
as the possible imposition of foreign exchange or other foreign governmental
restrictions or laws, all of which could affect the market and/or credit risk
of the investments. In addition to the risks described above, risks may arise
from forward foreign currency contracts as a result of the potential inability
of counterparties to meet the terms of their contracts.
8
<PAGE>
Pilgrim Gold Fund, Inc.
Notes to Financial Statements
June 30, 2000 (unaudited) and December 31, 1999 (continued)
7.Restricted Securities
The following securities were purchased under Rule 144A of the Securities Act
of 1933 or issued in private placements and, unless registered under the Act
or exempted from registration, may be sold only to qualified institutional
investors. Pursuant to guidelines adopted by the Fund's Board of Directors,
these unregistered securities have been deemed to be illiquid. The Fund
currently limits investment in illiquid securities to 15% of the Fund's net
assets, at market value.
<TABLE>
<CAPTION>
Acquisition Market Percent of
Security Date Shares Value Net Assets
-------- ----------- ------- -------- ----------
<S> <C> <C> <C> <C>
Claude Resources, Inc.................. 09/28/99 400,000 $164,679 0.31%
Claude Resources, Inc. (Warrants)...... 09/28/99 200,000 -- --
-------- ----
$164,679 0.31%
======== ====
</TABLE>
8. Subsequent Events
Effective on July 26, 2000, Lexington Global Asset Managers, Inc. was acquired
by ReliaStar Financial Corp. ("ReliaStar"). In conjunction with the
acquisition and following approval by the Fund's Board of Directors and
shareholders, Pilgrim Investments, Inc., an indirect, wholly owned subsidiary
of ReliaStar, was appointed to the role of investment adviser to the Fund
effective July 26, 2000. Pilgrim Securities, Inc., also an indirect, wholly
owned subsidiary of ReliaStar, was appointed distributor to the Funds on that
date as well.
On May 1, 2000, ReliaStar Financial Corp. (NYSE:RLR), the indirect parent
company of Pilgrim Investments, Inc., Adviser to the Funds, and Pilgrim
Securities, Inc., Distributor to the Funds, entered into an agreement under
which it will be acquired by ING Groep N.V. (NYSE:ING). ING Groep N.V. is a
global financial institution active in the field of insurance, banking, and
asset management in more than 60 countries, with almost 90,000 employees.
Completion of the acquisition is contingent upon, among other things, approval
by the Directors/Trustees of the Pilgrim Funds and certain shareholder and
regulatory approvals. The closing of the acquisition is expected to occur
during the third quarter of 2000.
9
<PAGE>
Pilgrim Gold Fund, 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, 2000 ------------------------------------
(unaudited) 1999 1998 1997 1996
---------------- ------- ------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 3.29 $ 3.03 $ 3.24 $ 5.97 $ 6.24
------ ------ ------ ------ ------
Income (loss) from
investment operations:
Net investment income
(loss)................ (0.01) (0.01) -- -- 0.02
Net realized and
unrealized gain (loss)
on investments and
foreign currencies.... (0.54) 0.27 (0.21) (2.52) 0.50
------ ------ ------ ------ ------
Total income (loss) from
investment operations.. (0.55) 0.26 (0.21) (2.52) 0.52
------ ------ ------ ------ ------
Less distributions:
Distributions from net
investment income..... -- -- -- (0.21) (0.79)
------ ------ ------ ------ ------
Net asset value, end of
period................. $ 2.74 $ 3.29 $ 3.03 $ 3.24 $ 5.97
====== ====== ====== ====== ======
Total return............ (33.62)%* 8.58% (6.39)% (42.98)% 7.84%
Ratio to average net
assets:
Expenses............... 2.26%* 1.94% 1.74% 1.65% 1.60%
Net investment income
(loss)................ (0.41)%* (0.02)% 0.08% 0.17% (0.32)%
Portfolio turnover
rate................... 33.72%* 78.55% 28.93% 38.32% 31.04%
Net assets, end of
period (000's
omitted)............... $53,153 $72,516 $50,841 $53,707 $109,287
</TABLE>
--------
* Annualized.
10
<PAGE>
PILGRIM GOLD FUND, INC.
Investment Adviser
Pilgrim Investments, Inc.
40 North Central Avenue
Suite 1200
Phoenix, Arizona 85004-4408
Distributor
Pilgrim Securities, Inc.
40 North Central Avenue
Suite 1200
Phoenix, Arizona 85004-4408
www.lexingtonfunds.com
All Shareholder requests for services of any kind should be sent to:
Transfer Agent
Lexington Funds
c/o DST Systems, Inc.
P.O. Box 219368
Kansas City, Missouri 64121-6368
Or call toll free Service and Sales: 1-800-526-0056
This report has been prepared for the information of the shareholders of Pilgrim
Gold Fund, Inc. and is authorized for distribution to the public only if it is
accompanied or preceded by a currently effective prospectus which sets forth
expenses and other material information. LEX271-SAR6/00
