Dear Shareholders:
- --------------------------------------------------------------------------------
The Lexington Growth and Income Fund showed a 22.57%* return for the year
ended December 31, 1995. This compares to a 30.82% return for the average growth
and income fund monitored by Lipper Analytical Services, Inc. during the same
period.
The year ended on a strong note with the same positive conditions existing
that drove stock prices steadily higher throughout the year. These conditions
included low inflation, falling interest rates, slow economic growth, strong
corporate profits, and high demand for stocks from the strong flow of money into
equity mutual funds. At the same time, the supply of stocks shrank as
corporations used their strong cash flow to repurchase stock and consummate
strategic combinations. Add to this the very positive reaction by the markets to
the Republican victory in the 1994 elections, and the perceptions that
favorable, fundamental changes in Washington's fiscal policy were underway, and
you have the makings of a very ebullient investment environment.
The U. S. stock market ended up the winner around the world as well, with
the highest return of all the major world markets. Economic conditions were also
similar for most of our major trading partners with low inflation, declining
interest rates and slow growth the norm. Japan was a significant exception as
banking problems intensified, and economic growth actually turned negative.
Although many of the same conditions that drove stock prices higher in 1995
still exist, there are several reasons for caution. While investors have become
complacent with regard to inflation, prices for energy and many important
agricultural commodities are rising and it is possible that, with tight labor
markets in several areas, labor may begin to garner a greater share of corporate
profits by way of wage increases. These could force consumer prices higher, and
with expectations low, any uptick in inflation will likely be taken negatively
by the financial markets. Another concern is that expectations for corporate
profit growth appear too high. Analysts are estimating another 15% increase in
unmanaged Standard and Poor's 500 Stock Price Index earnings in 1996 on top of
the 20% plus gains registered in recent years. With profit margins already at or
near peak levels, and slow economic growth expected in the U.S. and for many of
our trading partners, these estimates appear optimistic. Reduced earnings
expectations could prove unsettling to stock prices. Lastly, as this is being
written, Congress and the President have yet to agree on a budget, balanced or
otherwise. If the budget stalemate persists, optimism on a major shift toward
fiscal responsibility in Washington may be tested. Any of these concerns may
prove to be the catalyst for the long overdue correction in stock prices.
In general however, stocks do not appear to be overvalued, and the outlook
for continued economic growth, with subdued levels of interest rates and
inflation still provides a positive framework for ultimately higher stock market
levels.
The 1995 stock market may be characterized as a very narrow market, in that
approximately 15% of the unmanaged Standard and Poor's 500 Stock Price Index
accounted for about 75% of the entire gain of that Index. Nearly half of those
leading stocks were in the technology and financial sectors, and the low
representation of those stocks in the portfolio contributed to the relative
underperformance of the fund. This was particularly true in the first nine
months of the year. In addition, the Fund's exposure to economically sensitive
issues hurt performance when the economy unexpectedly slowed in the first
quarter of the year.
In the fourth quarter, the Fund's relative performance improved. The Fund
continued to focus on attractively valued stocks with positive earnings and
price momentum. This led to significant weightings in the health care,
aerospace, and energy sectors which were strong performers in the fourth
quarter. The Fund's low exposure to technology also benefitted performance late
in the year as that high flying sector began to correct.
1
<PAGE>
We appreciate your continued support and welcome the opportunity to discuss
any questions you may have about your investment.
Sincerely,
Alan H. Wapnick Robert M. DeMichele
Portfolio Manager President
January, 1996 January, 1996
____________________________________________________________________________
GRAPH
Paper version of this shareholder report contains a graph comparing the
changes in value of a $10,000 investment in
Lexington Growth and Income Fund, Inc., and
the unmanaged Standard & Poor's 500 Stock Price Index
____________________________________________________________________________
*22.57%, 13.54% and 11.05% are the one, five and ten year average annual
standard total returns, respectively, for the period ended December 31, 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 their original
cost. Total return represents past performance.
2
<PAGE>
(Left column)
Lexington Growth and Income Fund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
December 31, 1995
Number of Value
Shares Security (Note 1)
- -----------------------------------------------------------------------
COMMON STOCKS: 99.8%
BANKING: 6.0%
56,300 Bank of New York Company, Inc............... $ 2,744,625
33,300 J P Morgan & Company........................ 2,672,325
85,500 US Bancorp.................................. 2,869,594
------------
8,286,544
------------
Capital Equipment: 16.3%
37,300 Boeing Company.............................. 2,923,388
58,000 Ceridian Corporation1....................... 2,392,500
83,700 Deere & Company............................. 2,950,425
66,000 Dover Corporation........................... 2,433,750
48,700 Fluor Corporation........................... 3,214,200
38,600 Lockheed Martin Corporation................. 3,049,400
88,200 Loral Corporation........................... 3,120,075
18,600 Xerox Corporation........................... 2,548,200
------------
22,631,938
------------
Chemicals-Specialty: 1.8%
67,000 Union Carbide Corporation................... 2,512,500
------------
Consumer-Non Durable Goods: 9.6%
36,900 CPC International, Inc. .................... 2,532,262
41,000 Hershey Foods Corporation 2,665,000
47,100 PepsiCo, Inc................................ 2,631,712
52,200 Pioneer Hi-Bred International, Inc. ........ 2,903,625
30,600 Procter & Gamble Company.................... 2,539,800
------------
13,272,399
------------
Electrical And Electronics: 1.9%
32,300 Hewlett-Packard Company..................... 2,705,125
------------
Energy Sources: 12.4%
54,000 Burlington Resources, Inc. ................. 2,119,500
102,200 Diamond Offshore Drilling, Inc.1 ........... 3,449,250
62,000 Halliburton Company......................... 3,138,750
25,900 Mobil Corporation........................... 2,900,800
106,300 Valero Energy Corporation................... 2,604,350
67,900 Williams Companies, Inc. ................... 2,979,112
------------
17,191,762
------------
Environmental Technology: 2.0%
67,900 Millipore Corporation....................... 2,792,388
------------
(Right column)
Number of Value
Shares Security (Note 1)
- -----------------------------------------------------------------------
Financial Services: 14.2%
59,000 American Express Company.................... $ 2,441,125
30,000 American International Group................ 2,775,000
27,700 Chubb Corporatio............................ 2,679,975
32,000 Foremost Corporation of America............. 1,632,000
17,200 General Re Corporation...................... 2,666,000
39,700 Household International, Inc................ 2,347,262
37,000 NationsBank Corporation..................... 2,576,125
77,400 Safeco Corporation.......................... 2,675,137
------------
19,792,624
------------
Health & Personal Care: 8.4%
29,500 American Home Products Corporation.......... 2,861,500
56,000 Eli Lilly & Company......................... 3,150,000
33,900 Johnson & Johnson........................... 2,902,688
63,750 St. Jude Medical, Inc.1..................... 2,733,281
------------
11,647,469
------------
Healthcare Miscellaneous: 2.2%
34,400 PacifiCare Health Systems, Inc.1............ 3,001,400
------------
Materials: 5.5%
47,000 Aluminum Company of America................. 2,485,125
36,300 FMC Corporation1 2,454,788
46,800 Hercules, Inc............................... 2,638,350
------------
7,578,263
------------
Medical Products & Supplies: 2.0%
66,000 Abbott Laboratories......................... 2,755,500
------------
Merchandising: 5.7%
149,000 Borders Group, Inc.1........................ 2,756,500
73,000 Circuit City Stores, Inc. .................. 2,016,625
86,000 Winn-Dixie Stores, Inc...................... 3,171,250
------------
7,944,375
------------
Services: 7.9%
92,900 Ecolab, Inc. ............................... 2,787,000
67,900 Meredith Corporation........................ 2,843,313
63,100 Service Corporation International........... 2,776,400
54,000 Viacom, Inc.1 .............................. 2,558,250
------------
10,964,963
------------
3
<PAGE>
(Left column)
Lexington Growth and Income Fund, Inc.
Statement of Net Assets
(Including the Portfolio of Investments)
December 31, 1995 (continued)
Number of Value
Shares Security (Note 1)
- -----------------------------------------------------------------------
Telecommunications: 2.1%
50,500 Ameritech Corporation....................... $ 2,979,500
------------
Transportation: 1.8%
38,500 Union Pacific Corporation................... 2,541,000
------------
TOTAL COMMON STOCKS
(cost $127,470,606)....................... 138,597,750
------------
(Right column)
Number of Value
Shares Security (Note 1)
- -----------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 1.1%
$1,600,000 U.S. Treasury Bill
5.15% due O1/04/96 (cost $1,599,313)...... $ 1,599,313
------------
TOTAL INVESTMENTS: 100.9%
(cost $129,069,919+) (Note 1)............ 140,197,063
Liabilities in excess
of other assets: (0.9%).................. (1,296,523)
------------
TOTAL NET ASSETS: 100.0%
(equivalent to $15.71 per share on
8,844,228 shares outstanding............. $138,900,540
============
- ------------
1Non-income producing securities.
+Aggregate cost for Federal Income tax purposes is identical.
The Notes to Financial Statements are an integral part of this statement.
4
<PAGE>
(Left column)
Lexington Growth and Income Fund, Inc.
Statement of Assets and Liabilities
December 31, 1995
Assets
Investment in securities, at value
(cost $129,069,919) (Note 1).......................... $140,197,063
Cash.................................................... 72,319
Receivable for shares sold.............................. 96,171
Dividends and interest receivable....................... 256,956
------------
Total Assets.......................................... 140,622,509
------------
Liabilities
Due to Lexington Management Corporation
(Note 2).............................................. 77,728
Payable for shares redeemed............................. 35,772
Distributions payable................................... 1,530,125
Accrued expenses........................................ 78,344
------------
Total Liabilities..................................... 1,721,969
------------
Net Assets (equivalent to $15.71 per share on
8,844,228 shares outstanding) (Note 4)................ $138,900,540
============
Net Assets consist of:
Capital stock-authorized 500,000,000
shares, $.001 par value per share..................... $ 8,844
Additional paid-in capital (Note 1)..................... 127,066,558
Undistributed net investment income
(Note 1).............................................. 695,588
Accumulated net realized gains on
investments (Note 1).................................. 2,406
Net unrealized appreciation of investments.............. 11,127,144
------------
$138,900,540
============
(Right column)
Lexington Growth and Income Fund, Inc.
Statement of Operations
Year ended December 31, 1995
Investment Income
Income
Dividends............................... $ 2,699,630
Interest................................ 543,200
-----------
3,242,830
Less: foreign tax expense............... 13,227
-----------
Total investment income........................... $ 3,229,603
Expenses
Investment advisory fee (Note 2......... 935,397
Accounting and shareholder
services expense (Note 2)............. 198,790
Custodian and transfer agent
expenses.............................. 56,625
Printing and mailing.................... 59,388
Directors' fees and expenses............ 10,371
Audit and legal......................... 38,131
Registration fees....................... 21,117
Distribution expenses (Note 3).......... 31,339
Computer processing fees................ 17,483
Other expenses.......................... 56,229
-----------
Total expenses.................................... 1,424,870
------------
Net investment income............................. 1,804,733
Realized and Unrealized Gain on Investments
(Note 5)
Net realized gain on
investments........................................... 15,931,202
Net change in unrealized appreciation on
investments........................................... 9,051,101
------------
Net realized and unrealized gain.................... 24,982,303
------------
Increase in Net Assets Resulting
from Operations....................................... $ 26,787,036
============
The Notes to Financial Statements are an integral part of these statements.
5
<PAGE>
(Left column)
Lexington Growth and Income Fund, Inc.
Statements of Changes in Net Assets
Years ended December 31, 1995 and 1994
1995 1994
------------ ------------
Net investment income........................... $ 1,804,733 $ 1,410,631
Net realized gain from security
transactions.................................. 15,931,202 7,178,841
Increase (decrease) in unrealized
appreciation of investments................... 9,051,101 (12,748,337)
------------ ------------
Net increase (decrease) in net assets
resulting from operations................... 26,787,036 (4,158,865)
Distributions to shareholders from net
investment income ............................ (1,809,688) (1,348,135)
Distributions to shareholders from net
realized gains from security
transactions ................................. (13,290,821) (7,199,281)
Distributions to shareholders in excess of
net realized gains from security
transactions (Note 1)......................... - (1,937,432)
Increase in net assets from capital
share transactions (Note 4)................... 2,925,345 4,424,144
------------ ------------
Net increase (decrease) in net assets......... 14,611,872 (10,219,569)
Net Assets
Beginning of period........................... 124,288,668 134,508,237
------------ ------------
End of period (including undistributed
net investment income of $695,588
and $62,496, respectively) (Note 1)......... $138,900,540 $124,288,668
============ ============
The Notes to Financial Statements are an integral part of these statements.
Lexington Growth and Income Fund, Inc.
Notes to Financial Statements
December 31, 1995 and 1994
1. Significant Accounting Policies
Lexington Growth and Income Fund, Inc. (the "Fund") is an open end diversified
management investment company registered under the Investment Company Act of
1940, as amended. The Fund's principal investment objective is long-term
appreciation of capital. Income is a secondary objective. The following is a
summary of the significant accounting policies followed by the Fund in the
preparation of its financial statements:
Securities Security transactions are accounted for on a trade date basis.
Realized gains and losses from security transactions are reported on the
identified cost basis. Investments are stated at market value based on closing
prices reported by the exchanges on which the securities are traded on the last
business day of the period or, for over-the-
(Right column)
counter securities, at the average between bid and asked prices. Short-term
securities are stated at amortized cost which approximates market value.
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. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Interest income is accrued as
earned.
Distributions In accordance with Statement of Position 93-2: Determination,
Disclosure and Financial Statement Presentation of Income, Capital Gain and
Return of Capital Distributions by Investment Companies, as of December 31,
1995, book and tax differences amounting to $62,496 have been reclassified from
undistributed net investment income to additional paid-in capital. In addition,
$700,543 was reclassified from accumulated net realized gains on investments to
undistributed net investment income. As of December 31, 1994, book and tax basis
differences amounting to $29,385 have been reclassified from undistributed net
investment income and distributions in excess of net realized gain to additional
paid-in capital. Distributions in excess of net realized gains reflect temporary
book-tax differences arising from Internal Revenue Code Excise Tax distribution
requirements and associated post-October loss deferral provisions, which
effectively allow the deferral of some net realized capital losses to the next
tax year.
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 an annual rate of 0.75% of the Fund's average daily net assets up to
$100 million and in decreasing stages to 0.4% of average daily net assets in
excess of $250 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 year ended December 31, 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.
6
<PAGE>
(Left column)
Lexington Growth and Income Fund, Inc.
Notes to Financial Statements
December 31, 1995 and 1994 (continued)
3. Distribution Plan
The Fund has a Distribution Plan (the "Plan") which allows payments to finance
activities associated with the distribution of the Fund's shares. The plan
provides that the Fund may pay distribution fees on a reimbursement basis,
including payments to Lexington Fund Distributors, 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 year ended December 31,
1995 were $31,339 which are set forth in the statement of operations.
4. Capital Stock
Transactions in capital stock were as follows:
Year Ended Year Ended
December 31, 1995 December 31, 1994
------------------------ ------------------------
Shares Amount Shares Amount
---------- ----------- ---------- -----------
Shares sold............. 423,165 $ 6,632,289 890,121 $14,369,520
Shares issued to share-
holders on reinvest-
ment of dividends..... 854,913 13,393,562 640,376 9,254,980
---------- ----------- ---------- -----------
1,278,078 20,025,851 1,530,497 23,624,500
Shares redeemed......... (1,087,805) (17,100,506) (1,199,120) (19,200,356)
---------- ----------- ---------- -----------
Net increase............ 190,273 $ 2,925,345 331,377 $ 4,424,144
========== =========== ========== ===========
(Right column)
5. Purchases and Sales of Investment Securities
The cost of purchases and proceeds from sales of securities for the year ended
December 31, 1995, excluding short-term securities, were $196,540,300 and
$196,214,523, respectively.
At December 31, 1995, aggregate gross unrealized appreciation for all securities
in which there is an excess of value over tax cost amounted to $13,689,179 and
aggregate gross unrealized depreciation for all securities in which there is an
excess of tax cost over value amounted to $2,562,035.
6. Investment Risks
The Fund's ability to invest in foreign securities may involve risks not present
in domestic investments. Since foreign securities may be denominated in a
foreign currency and involve settlement and pay interest or dividends in foreign
currencies, changes in the relationship of these foreign currencies to the U.S.
dollar can significantly affect the value of the investments and earnings of the
Fund. Foreign investments may also subject the Fund to foreign government
exchange restrictions, expropriation, taxation or other political, social or
economic developments, all of which could affect the market and/or credit risk
of the investments.
- --------------------------------------------------------------------------------
Financial Highlights
Selected per share data for a share outstanding throughout the period:
<TABLE>
<CAPTION>
Year ended December 31,
--------------------------------------------------
1995 1994 1993 1992 1991
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.................... $14.36 $16.16 $16.25 $16.39 $14.24
------ ------ ------ ------ ------
Income from investment operations:
Net investment income................................. .22 .17 .21 .23 .35
Net realized and unrealized gain (loss) on investments 3.00 (.68) 1.94 1.79 3.17
------ ------ ------ ------ ------
Total income (loss) from investment operations.......... 3.22 (.51) 2.15 2.02 3.52
------ ------ ------ ------ ------
Less distributions:
Dividends from net investment income.................. (.22) (.16) (.21) (.32) (.35)
Distributions from net realized capital gains......... (1.65) (.91) (2.03) (1.84) (1.02)
Distributions in excess of net realized gains
(temporary book-tax difference)..................... - (.22) - - -
------ ------ ------ ------ ------
Total distributions..................................... (1.87) (1.29) (2.24) (2.16) (1.37)
------ ------ ------ ------ ------
Net asset value, end of period.......................... $15.71 $14.36 $16.16 $16.25 $16.39
====== ====== ====== ====== ======
Total return............................................ 22.57% (3.11%) 13.22% 12.36% 24.87%
Ratios to average net assets:
Expenses.............................................. 1.09% 1.15% 1.29% 1.20% 1.13%
Net investment income................................. 1.38% 1.06% 1.20% 2.57% 2.19%
Portfolio turnover...................................... 159.94% 63.04% 93.90% 88.13% 80.33%
Net assets at end of period (000's omitted)............. $138,901 $124,289 $134,508 $126,241 $121,263
</TABLE>
7
<PAGE>
Independent Auditors' Report
The Board of Directors and Shareholders
Lexington Growth and Income Fund, Inc.:
We have audited the accompanying statements of net assets (including the
portfolio of investments) and assets and liabilities of Lexington Growth and
Income Fund, Inc. as of December 31, 1995, the related statement of operations
for the year then ended, the statements of changes in net assets for each of the
years in the two-year period then ended, and the financial highlights for each
of the years in the five-year period then ended. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights 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 financial
highlights 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
December 31, 1995 by correspondence with the custodian and brokers. 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 financial highlights referred
to above present fairly, in all material respects, the financial position of
Lexington Growth and Income Fund, Inc. as of December 31, 1995, the results of
its operations for the year then ended, the changes in its net assets for each
of the years in the two-year period then ended, and the financial highlights for
each of the years in the five-year period then ended, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
February 5, 1996
8
<PAGE>
(Left column)
LEXINGTON
INVESTOR SERVICES
- --------------------------------------------------------------------------------
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.
(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 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.
9
<PAGE>
Lexington
Growth and Income Fund, 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 Growth and Income 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.
(Right column)
--------------------------------------------
LEXINGTON
--------------------------------------------
--------------------------------------------
LEXINGTON
GROWTH
AND
INCOME
FUND, INC.
(filled box)
Seeks capital appreciation over the
long term through investments in
the stocks of large, ably managed
and well financed companies.
(filled box)
ANNUAL REPORT
DECEMBER 31, 1995
The Lexington Group
of No Load
Investment Companies
--------------------------------------------
