DEAR SHAREHOLDERS:
- --------------------------------------------------------------------------------
The Lexington Growth and Income Fund appreciated 13.57%* for the six months
ended June 30, 1998. This compares to a 12.11% return for the average growth and
income fund monitored by Lipper Analytical Services, Inc. during the period.
These returns came despite a background of collapsing Asian economies and
the resultant heightened concern for U.S. corporate earnings growth. Despite
some earlier hope that the worst was over in Asia, economic conditions in Japan
have continued to deteriorate. On the domestic earnings front, optimism for
another strong year of growth has been steadily eroding. First quarter earnings
for the unmanaged Standard & Poors 500 Stock Price Index increased 1.4% and June
quarter earnings are estimated to have risen only 1.5%. At the beginning of the
year the expected gain for the June quarter was 19%. That the stock market has
done this well in the face of virtually flat corporate earnings says much about
the other positive forces underpinning stock prices. These include low inflation
and interest rates, plenty of liquidity, and strong inflows into equity mutual
funds.
The U.S. economy is demonstrating tremendous resilience. While recession in
Asia has weakened the trade sector, the resulting lower interest rates have
served to stimulate the consumer sector. Gross Domestic Product grew at a very
strong 5.4% in the first quarter but will likely slow significantly in the
second quarter as the Asian drag takes hold and inventories are reduced.
However, unless the consumer sector weakens materially, overall growth will
likely remain strong through the rest of the year. Nonetheless, that growth,
together with rising wages and a very tight labor market could influence the
Federal Reserve to raise interest rates later in the year if Asian concerns
diminish. This, together with sluggish earnings growth should lead to increased
market volatility.
We continue to focus our attention on stock selection, believing that
avoiding significant earnings disappointments provides the key to performance.
The Fund continues to be well represented with predictable earnings companies
such as healthcare, consumer staple and domestically oriented financial,
technology and economically sensitive issues.
We appreciate your continued support and welcome the opportunity to discuss
any questions you may have about your investment.
Sincerely,
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Alan H. Wapnick Robert M. DeMichele
Portfolio Manager President
August, 1998 August, 1998
* 25.92%, 18.64% and 15.10% are the one, five and ten year average annual
standard total returns, respectively, for the period ended June 30, 1998.
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 and is not predictive of
future results.
1
<PAGE>
LEXINGTON GROWTH AND INCOME FUND, INC.
STATEMENT OF NET ASSETS
(INCLUDING THE PORTFOLIO OF INVESTMENTS)
June 30, 1998 (unaudited)
NUMBER VALUE
OF SHARES SECURITY (NOTE 1)
- --------------------------------------------------------------------------------
COMMON STOCKS: 99.8%
BANKING: 2.1%
85,500 Union Planters Corporation .................. $ 5,028,469
-----------
BROKERAGE: 1.6%
42,500 Merrill Lynch & Company, Inc.1 ............ 3,920,625
-----------
CAPITAL EQUIPMENT: 3.2%
164,000 Cymer, Inc.1 .............................. 2,654,750
57,500 Federal-Mogul Corporation1 .................. 3,881,250
31,900 Ingersoll-Rand Company ..................... 1,405,594
-----------
7,941,594
-----------
COMPUTER SOFTWARE: 1.8%
87,000 BMC Software, Inc.1 ........................ 4,521,281
-----------
CONSUMER DURABLE GOODS: 4.6%
170,600 EMC Corporation1 ........................... 7,645,012
112,000 Rubbermaid, Inc.1 ........................... 3,717,000
-----------
11,362,012
-----------
CONSUMER NONDURABLE GOODS: 6.8%
115,400 PepsiCo, Inc. .............................. 4,753,037
93,000 Philip Morris Companies ..................... 3,661,875
74,800 Sara Lee Corporation ........................ 4,184,125
54,000 Unilever NV ................................. 4,262,625
-----------
16,861,662
-----------
DRUGS: 2.3%
52,800 Pfizer, Inc. .............................. 5,738,700
-----------
ELECTRICAL & ELECTRONICS: 1.7%
70,500 Emerson Electric Company .................. 4,256,437
-----------
ENERGY SOURCES: 6.4%
130,000 BJ Services Company1 ........................ 3,778,125
64,400 Exxon Corporation ........................... 4,592,525
57,000 Texaco, Inc.1 .............................. 3,402,187
121,800 The Williams Companies. Inc. ............... 4,110,750
-----------
15,883,587
-----------
FINANCIAL SERVICES: 14.0%
189,000 Ace, Ltd. ................................. 7,371,000
66,700 Excel, Ltd. ................................. 5,190,094
97,000 Federal National Mortgage Association ...... 5,892,750
207,000 Foremost Corporation of America ............ 4,993,875
102,000 NAC Re Corporation ........................ 5,444,250
74,000 NationsBank Corporation ..................... 5,661,000
-----------
34,552,969
-----------
HEALTH & PERSONAL CARE: 8.3%
62,000 Bristol-Myers Squibb Company ............... 7,126,125
66,000 Cardinal Health, Inc. ..................... 6,187,500
112,000 Medtronic, Inc. ........................... 7,140,000
-----------
20,453,625
-----------
HOUSEHOLD PRODUCTS: 2.6%
70,200 Procter & Gamble Company .................. 6,392,587
-----------
MATERIALS: 3.9%
114,000 Fort James Corporation .................. 5,073,000
101,000 Martin Marietta Materials, Inc. ......... 4,545,000
------------
9,618,000
------------
MERCHANDISING: 13.5%
102,000 Costco Companies, Inc.1 .................. 6,435,563
105,900 Gap, Inc. ................................. 6,526,088
76,500 Home Depot, Inc. ........................ 6,354,281
200,000 Safeway, Inc.1 ........................... 8,137,500
242,000 The TJX Companies, Inc. .................. 5,838,250
------------
33,291,682
------------
MULTI-INDUSTRY: 3.5%
136,000 Tyco International, Ltd. .................. 8,568,000
------------
SERVICES: 18.3%
147,700 Caribiner International, Inc.1 ............ 2,584,750
66,100 Computer Associates International, Inc. . 3,672,681
122,600 Ecolab, Inc. .............................. 3,800,600
68,100 Gannett Company, Inc. ..................... 4,839,356
231,200 Global Industries, Ltd.1 .................. 3,894,275
106,100 HBO and Company1 ........................ 3,743,341
84,000 Network Associates, Inc. .................. 4,018,875
92,400 Pitney Bowes, Inc. ........................ 4,446,750
107,800 Republic Services Group .................. 2,587,200
153,500 Sungard Data Systems, Inc.1 ............... 5,890,563
55,000 The Walt Disney Company .................. 5,778,438
------------
45,256,829
------------
TELECOMMUNICATIONS: 5.2%
112,400 Comcast Corporation ..................... 4,562,738
41,300 Lucent Technologies, Inc.1 ............... 3,435,644
78,750 Marsh & McLennan Companies, Inc. ......... 4,759,453
------------
12,757,835
------------
TOTAL COMMON STOCKS
(cost $188,136,232)........................ 246,405,894
------------
SHORT-TERM INVESTMENT: 0.4%
U.S. GOVERNMENT OBLIGATION
$1,000,000 United States Treasury Bill,
5.17%, due 11/12/98
(cost $981,184) ........................... 981,230
------------
TOTAL INVESTMENTS: 100.2%
(cost $189,117,416\^)(Note 1) ............ 247,387,124
Liabilities in excess of other assets:
(0.2)% .................................... (432,995)
------------
TOTAL NET ASSETS: 100.0%
(equivalent to $23.02 per share on
10,726,734 shares outstanding) ............ $246,954,129
============
- ---------------------
1 Non-income producing security.
+ Aggregate cost for Federal income tax purposes is identical.
The Notes to Financial Statements are an integral part of this statement.
2
<PAGE>
LEXINGTON GROWTH AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998 (unaudited)
ASSETS
Investments, at value
(cost $189,117,416) (Note 1) .................. $247,387,124
Cash ............................................. 541,281
Receivable for investment securities sold ......... 12,888,232
Receivable for shares sold ........................ 17,019
Dividends and interest receivable .................. 191,567
------------
Total Assets .................................... 261,025,223
------------
LIABILITIES
Due to Lexington Management Corporation
(Note 2) ....................................... 125,041
Payable for investment securities purchased ...... 13,562,910
Payable for shares redeemed ........................ 148,263
Accrued expenses ................................. 234,880
------------
Total Liabilities .............................. 14,071,094
------------
NET ASSETS (equivalent to $23.02 per share on
10,726,734 shares outstanding) (Note 4) ......... $246,954,129
============
NET ASSETS consist of:
Capital stock-authorized 1,000,000,000 shares,
$.001 par value per share ..................... $ 10,727
Additional paid-in capital ........................ 159,988,605
Undistributed net investment income ............... 73,955
Accumulated net realized gain on investments ...... 28,611,134
Unrealized appreciation on investments ............ 58,269,708
------------
TOTAL NET ASSETS .............................. $246,954,129
============
LEXINGTON GROWTH AND INCOME FUND, INC.
STATEMENT OF OPERATIONS
Six months ended June 30, 1998 (unaudited)
INVESTMENT INCOME
Dividends .............................. $1,154,939
Interest ................................. 332,536
----------
1,487,475
Less: foreign tax expense ............... 3,096
----------
Total investment income .............................. $ 1,484,379
EXPENSES
Investment advisory fee (Note 2) ...... 747,056
Distribution expenses (Note 3) ......... 299,145
Transfer agent and shareholder
servicing expenses (Note 2) ......... 138,648
Accounting expenses (Note 2) ......... 94,333
Printing and mailing expenses ......... 31,066
Professional fees ..................... 21,226
Custodian expenses ..................... 16,377
Registration fees ..................... 14,840
Directors' fees and expenses ......... 8,762
Computer processing fees ............... 7,979
Other expenses ........................ 30,992
----------
Total expenses ....................................... 1,410,424
-----------
Net investment income .............................. 73,955
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
(NOTE 5)
Net realized gain on investments ........................ 26,702,500
Net change in unrealized appreciation on
investments .......................................... 3,597,356
-----------
Net realized and unrealized gain on
investments .......................................... 30,299,856
-----------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $30,373,811
===========
The Notes to Financial Statements are an integral part of these statements.
3
<PAGE>
LEXINGTON GROWTH AND INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
--------------- ----------------
Net investment income ............... $ 73,955 $ 467,120
Net realized gain from security
transactions ........................ 26,702,500 35,330,683
Net change in unrealized
appreciation on investments ......... 3,597,356 20,980,248
------------ -------------
Net increase in net assets
resulting from operations ......... 30,373,811 56,778,051
Distributions to shareholders from net
investment income .................. - (691,040)
Distributions to shareholders from
net realized gains from security
transactions ........................ - (36,280,960)
Increase (decrease) in net assets from
capital share transactions
(Note 4) ........................... (11,456,846) 7,922,045
------------ -------------
Net increase in net assets ......... 18,916,965 27,728,096
Net Assets:
Beginning of period ............... 228,037,164 200,309,068
------------ -------------
End of period (including undistributed
net investment income of $73,955
and $0, 1998 and 1997,
respectively) ..................... $246,954,129 $ 228,037,164
============ =============
The Notes to Financial Statement are an integral part of these statements.
LEXINGTON GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 (unaudited) and December 31, 1997
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 investment objective is long-term appreciation of
capital. Income is a secondary objective. 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 prices is recorded, the mean between the last bid and
asked prices is used. Securities traded on the over-the-counter market 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.
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 are normally declared
and paid semi-annually and dividends from net realized capital gains are
normally declared and paid annually. However, 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, 1997,
reclassifications were made to the Fund's capital accounts to reflect permanent
book/tax differences and income and gains available for distributions 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 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 0.40% of average daily net assets in
excess of $250 million. For 1998, LMC has agreed to voluntarily limit the total
expenses of the Fund (excluding interest, taxes, brokerage commissions and
extraordinary expenses but including management fees 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, 1998.
The Fund also reimburses LMC for certain expenses, including accounting and
shareholder servicing costs of $210,928 which are incurred by the Fund, but paid
by LMC.
4
<PAGE>
LEXINGTON GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 (unaudited) and December 31, 1997 (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 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,
1998 were $299,145 and are set forth in the statement of operations.
4. CAPITAL STOCK
Transactions in capital stock were as follows:
Six months ended
June 30, 1998 Year ended
(unaudited) December 31, 1997
------------------------------ ------------------------------
Shares Amount Shares Amount
------------- ---------------- --------------- --------------
Shares sold 402,921 $ 8,738,943 1,777,868 $38,033,038
Shares issued on
reinvestment of
dividends ...... -- -- 1,645,460 32,722,626
------- ------------- --------- ------------
402,921 8,738,943 3,423,328 70,755,664
Shares redeemed (924,576) (20,195,789) (2,965,147) (62,833,619)
-------- ------------- ---------- ------------
Net increase
(decrease) ... (521,655) $ (11,456,846) 458,181 $ 7,922,045
======== ============= ========== ===========
5. PURCHASES AND SALES OF INVESTMENT SECURITIES
The cost of purchases and proceeds from sales of securities for the six months
ended June 30, 1998, excluding short-term securities, were $87,731,019 and
$95,792,242, respectively. At June 30, 1998, the aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost amounted to $63,190,396 and aggregate gross unrealized depreciation for all
securities in which there is an excess of tax cost over value amounted to
$4,920,688.
6. INVESTMENT AND CONCENTRATION 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>
Six months ended
June 30, 1998
(unaudited)
-----------------
<S> <C>
Net asset value, beginning of period .................................... $ 20.27
---------
Income (loss) from investment operations:
Net investment income. ................................................ 0.01
Net realized and unrealized gain (loss) on investments ............... 2.74
---------
Total income (loss) from investment operations ........................ 2.75
Less distributions:
Dividends from net investment income ................................. -
Distributions from net realized gains ................................. -
Distributions in excess of net realized gains (temporary book-tax
difference) ......................................................... -
---------
Total distributions ................................................... -
---------
Net asset value, end of period .......................................... $ 23.02
=========
Total return ............................................................ 29.25%*
Ratios to average net assets:
Expenses ............................................................... 1.18%*
Net investment income ................................................ 0.06%*
Portfolio turnover ...................................................... 76.17%*
Average commissions paid per share on equity securities transactions** $0.05
Net assets, end of period (000's omitted) .............................. $246,954
<CAPTION>
Year ended December 31,
------------------------------------------------------
1997 1996 1995 1994
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .................................... $ 18.56 $ 15.71 $ 14.36 $16.16
---------- --------- -------- ------
Income (loss) from investment operations:
Net investment income. ................................................ 0.05 0.07 0.22 0.17
Net realized and unrealized gain (loss) on investments ............... 5.46 4.08 3.00 (0.68)
---------- --------- -------- ------
Total income (loss) from investment operations ........................ 5.51 4.15 3.22 (0.51)
Less distributions:
Dividends from net investment income ................................. (0.07) (0.13) (0.22) (0.16)
Distributions from net realized gains ................................. (3.73) (1.17) (1.65) (0.91)
Distributions in excess of net realized gains (temporary book-tax
difference) ......................................................... - -- -- (0.22)
---------- --------- -------- ------
Total distributions ................................................... (3.80) (1.30) (1.87) (1.29)
---------- --------- -------- ------
Net asset value, end of period .......................................... $ 20.27 $ 18.56 $ 15.71 $14.36
========== ========= ======== ======
Total return ............................................................ 30.36% 26.46% 22.57% (3.11)%
Ratios to average net assets:
Expenses ............................................................... 1.17% 1.13% 1.09% 1.15%
Net investment income ................................................ 0.21% 0.43% 1.38% 1.06%
Portfolio turnover ...................................................... 88.15% 101.12% 159.94% 63.04%
Average commissions paid per share on equity securities transactions** $0.07 $0.07 -- --
Net assets, end of period (000's omitted) .............................. $228,037 $200,309 $138,901 $124,829
</TABLE>
* Annualized.
** In accordance with recent SEC disclosure guidelines, the average commissions
are calculated for the periods beginning with the year ended December 31,
1996, but not for prior periods.
5
<PAGE>
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 permits 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.
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 CORPORATE LEADERS 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 TROIKA DIALOG RUSSIA FUND, INC.--Seeks long-term capital appreciation
through investments primarily in the equity securities of Russian companies.
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 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.
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.
*Redemptions on shares of Lexington Troika Dialog Russia Fund, Inc. held less
than 365 days are subject to a redemption fee of 2% of the redemption proceeds.
<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 o Account Balances o Exchanges o
Last Transactions o Total Return o 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.LEXINGTON
------------------------
LEXINGTON
------------------------
[GRAPHIC]
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.
--------------------------
SEMI-ANNUAL REPORT
JUNE 30, 1998
The Lexington Group
of NO LOAD
Investment Companies
