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PROSPECTUS
November 1, 1999
EXETER FUND, INC.
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PUREMARK-SM- SERIES
CLASS E SHARES
[GRAPHIC]
The Securities and Exchange Commission has not approved or
disapproved these securities or determined whether this
prospectus is accurate or complete. Any statement to the contrary
is a crime.
[LOGO]
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EXETER FUND, INC.
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P.O. Box 41118
ROCHESTER, NEW YORK 14604
716-325-6880 800-466-3863
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EXETER ASSET MANAGEMENT IS A DIVISION OF MANNING & NAPIER
ADVISORS, INC., WHICH WAS FOUNDED IN 1970 AND MANAGES OVER
$7 BILLION FOR INDIVIDUAL AND INSTITUTIONAL INVESTORS.
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CONTENTS PAGE
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Goals, Strategies, and Risks 4
More About the Series' Investments 6
Management 7
How to Buy, Exchange, and Redeem Shares 8
Investment and Account Information 10
Dividends, Distributions, and Taxes 11
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GOALS, STRATEGIES, AND RISKS
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INVESTMENT GOAL
Provide long-term total return that is consistent with the broad U.S. stock
market, as represented by the Russell 3000-Registered Trademark- Index, through
investments that meet the socially responsible criteria of the Series.
INVESTMENT STRATEGIES
The Series invests primarily in the common stocks of companies represented in
the Russell 3000-Registered Trademark- Index. The Advisor seeks to avoid the
common stocks of companies failing to satisfy certain "socially responsible"
investment criteria. After these companies have been removed from the stocks in
the index, the Advisor builds a portfolio of approximately 250-300 stocks that
has market-sector and risk characteristics that are similar to the index. With
this approach, the Advisor attempts to approximate the return and volatility of
the index. The Advisor periodically rebalances the Series' portfolio to keep its
weightings in line with those of the index.
THE RUSSELL 3000 -REGISTERED TRADEMARK- INDEX MEASURES THE PERFORMANCE OF THE
3,000 LARGEST U.S. COMPANIES BASED ON TOTAL MARKET CAPITALIZATION.
SOCIALLY RESPONSIBLE INVESTMENT CRITERIA The screening process is designed to
avoid investments in companies that the Advisor believes derive a significant
portion of their revenue from the following businesses:
- Tobacco
- Alcohol
- Pornography
- Gambling
- Drugs or devices primarily used for abortion
The Advisor uses a variety of outside sources and conducts its own research in
determining which stocks meet the Series' selection criteria.
PRINCIPAL RISKS OF INVESTING IN THE SERIES
As with any stock fund, the value of your investment will fluctuate in response
to stock market movements. You could lose money on your investment in the Series
or the Series could underperform if any of the following occurs:
- The U.S. stock markets go down.
- An adverse event, such as an unfavorable earnings report, depresses
the value of one or more of the Series' portfolio holdings.
There are additional risks associated with the specific investment approach used
in the management of this Series:
- The Advisor will not be able to respond to a decline in the index by
temporarily moving assets to investments not correlated with the
index.
- Because certain types of companies are eliminated from the portfolio,
the Series may not track the index as well as a true index fund.
- The Series will incur expenses, such as advisory fees, trading and
custody costs that do not apply to an index.
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SUMMARY OF PAST PERFORMANCE
This Series was not active as of the date of this prospectus; therefore, no
performance information is provided.
WHO MAY WANT TO INVEST
The Series may be an appropriate investment if you:
- Are seeking a socially responsible investment.
- Are seeking a mutual fund for the equity portion of an asset
allocation portfolio.
- Have a long-term time horizon for your investment and are willing and
able to accept the risk of short-term stock market swings.
- Are willing to accept a potentially lower total return than might be
possible if certain categories of stocks were not eliminated from
consideration for the Series.
FEES AND EXPENSES OF THE SERIES
THIS TABLE ESTIMATES THE FEES AND EXPENSES YOU MAY PAY IF YOU INVEST IN SHARES
OF THE SERIES.
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PUREMARK-SM- SERIES - CLASS E SHARES
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SHAREHOLDER FEES (paid directly from your investment) None(1)
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from assets of the Series)
Management fee 0.50%
Distribution and service (Rule 12b-1) fees 0.25%
Other expenses 0.32%
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Total annual fund operating expenses 1.07%
Less fee waivers and expense reimbursements (0.12)%(2)
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Net expenses 0.95%
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(1) A wire charge, currently $15, may be deducted by the transfer agent
from the amount of a wire redemption payment made at the request of a
shareholder. A shareholder may effect up to four exchanges in a
twelve-month period without charge; subsequent exchanges are subject to a
fee of $15.
(2) The Advisor has contractually agreed to limit its fees and reimburse
expenses to the extent necessary so that the Series' total annual fund
operating expenses do not exceed 0.95% of the Series' average daily net
assets. This contractual waiver will remain in effect until at least
Feburary 29, 2000 and may be extended.
THIS EXAMPLE IS INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE SERIES
WITH THE COST OF INVESTING IN OTHER MUTUAL FUNDS.
THE EXAMPLE BELOW ASSUMES THAT:
- You invest $10,000 for the periods shown
- The Series' operating expenses remain the same
- Your investment has a 5% return each year
Although your actual costs may be higher or lower, under these assumptions your
costs would be:
AFTER AFTER
1 YEAR 3 YEARS
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$97 $328
Because the Series was not active as of the date of this prospectus, the "Annual
Fund Operating Expenses" presented are estimates based upon projections made by
the Advisor and reflect the effect of the Advisor's contractual fee waiver for
year one only. In addition, the Series has not calculated these expenses beyond
the three year period shown.
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MORE ABOUT THE SERIES' INVESTMENTS
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DERIVATIVE CONTRACTS
The Series may, but is not required to, use derivative contracts as a
substitute for purchasing or selling securities contained in the index. A
derivative contract will obligate or entitle the Series to deliver or
receive an asset or a cash payment that is based on the change in value of
a designated security or index.
THE SERIES' INVESTMENT GOAL
The Series' board of directors may change the Series' investment goal
(described above under "Goals, Strategies, and Risks") without obtaining
the approval of the Series' shareholders. The Series might not succeed in
achieving its goal.
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MANAGEMENT
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THE ADVISOR
The Series' Advisor is Exeter Asset Management, a division of Manning &
Napier Advisors, Inc., 1100 Chase Square, Rochester, New York 14604.
Manning & Napier Advisors, Inc. was founded in 1970, and it manages over $7
billion for individual and institutional investors. The Advisor is
responsible for the day-to-day operations of the Series and generally is
responsible for supervision of the Series' overall business affairs,
service providers and officers.
A team made up of investment professionals and analysts makes all of the
Series' investment decisions.
MANAGEMENT FEES
In return for the services it provides to the Series, the Advisor receives
a management fee at a rate of 0.50%, which is computed daily and payable
monthly by the Series. The Advisor has contractually agreed to limit the
Series' total operating expenses to a total of 0.95% for Class E. This
contractual waiver will remain in effect until at least Feburary 29, 2000
and may be extended.
The Advisor may use its own resources to engage in activities that may
promote the sale of the Series, including payments to third parties who
provide shareholder support servicing and distribution assistance.
Investors may be charged a fee if they effect transactions through a broker
or agent.
THE DISTRIBUTOR
The distributor of the Series' shares is Manning & Napier Investor
Services, Inc. As of the date of this prospectus, Class E shares are only
available through financial intermediaries who provide certain shareholder
services to the Fund. Financial intermediaries include financial planners,
investment advisers, broker-dealers, or other financial institutions with
an agreement with the distributor.
The Advisor may, from its own resources, defray or absorb costs relating
to distribution, including compensation of employees who are involved in
distribution.
DISTRIBUTION PLANS
The Fund has adopted a Rule 12b-1 distribution plan for the Class E shares
of the Series. Under the plan, the Class E shares pay distribution and/or
service fees (as a percentage of average daily net assets) equal to 0.25%.
These fees are an ongoing expense and over time may cost you more than
other types of sales charges.
YEAR 2000 ISSUE
Information technology experts are concerned about computer systems'
ability to process date-related information on and after January 1, 2000.
This situation, commonly known as the "Year 2000" issue, could have an
adverse impact on the Series. The cost of addressing the Year 2000 issue,
if substantial, could adversely affect companies and governments that issue
securities held by the Series. The Advisor, the transfer agent and the
distributor are addressing the Year 2000 issue for their systems. Its other
service providers have informed the Series that they are taking similar
measures. Although the Series does not expect the Year 2000 issue to
adversely affect it, the Series cannot guarantee that the efforts of the
Series or its service providers to correct the problem will be successful.
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HOW TO BUY, EXCHANGE, AND REDEEM SHARES
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HOW TO BUY SHARES
Class E shares are available only through your financial intermediary. You may
be subject to initial and subsequent minimums established by your financial
intermediary for the purchase of shares. The Series reserves the right to reject
purchase orders or to stop offering its shares without notice to shareholders.
All orders to purchase shares received in good order by the distributor,
transfer agent or other agent before the close of trading on the New York Stock
Exchange (NYSE), generally 4:00 pm New York time, will be executed at that day's
share price. Orders received in good order after that day's close will be
executed at the next business day's price. All orders must include the required
documentation and be accompanied by proper payment.
The Series' distributor imposes no sales charge on purchases and redemptions of
shares of the Series. However, your financial intermediary may charge you a
transaction fee on purchases and redemptions.
THROUGH THE FUND
If your financial intermediary does not provide account maintenance services,
contact the Fund to purchase shares.
BY MAIL
OPENING AN ACCOUNT
- Send a check payable to Exeter Fund, Inc. with the completed original
account application.
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The address is:
EXETER FUND, INC.
P.O. BOX 41118
ROCHESTER, NY 14604
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- To request an account application, call the Fund at 1-800-466-3863.
ADDING TO AN ACCOUNT
- Send a check payable to Exeter Fund, Inc. and a letter of instruction
with the name of the Series to be purchased and the account name and
number.
BY WIRE
OPENING OR ADDING TO AN ACCOUNT
- After the Fund has received your completed account application, you
may wire funds to open or add shares to your account. Before sending a
wire, call 1-800-466-3863 for wire instructions.
AUTOMATIC INVESTMENT PLAN
You may participate in the Automatic Investment Plan by completing the
applicable section of the account application or contacting your financial
intermediary or the Fund. Through the plan, you can authorize transfers of a
specified amount from your bank account into the Series on a regular basis. The
minimum amount of each investment is $25. If you have insufficient funds in your
account to complete a transfer, your bank may charge you a fee.
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HOW TO REDEEM SHARES
THROUGH THE FUND
If your financial intermediary does not provide account maintenance services,
contact the Fund to redeem shares.
BY MAIL
- Send a letter of instruction to Exeter Fund, Inc., at the address on
the opposite page signed by each registered account owner.
- State the name of the Series, the class and number of shares or dollar
amount to be sold.
- Provide the account number.
- Signature guarantees may be required.
- Additional documentation may be required (call the Fund for details).
The Series may postpone payment of redemption proceeds for up to seven days, or
suspend redemptions to the extent permitted by law. If you recently purchased
your shares by check, your redemption proceeds will not be sent to you for 15
days.
MORE ABOUT PURCHASES AND REDEMPTIONS
All orders to purchase or redeem shares received in good order by the
distributor, transfer agent or other agent before the close of trading on
the New York Stock Exchange (NYSE) will be executed at that day's share
price. Orders received in good order after that day's close will be
executed at the next business day's price. All orders must include the
required documentation and signatures, and all purchase orders must be
accompanied by proper payment.
The Fund has authorized several financial intermediaries to accept purchase
and redemption orders on its behalf, and these intermediaries are
authorized to designate other intermediaries to accept purchase and
redemption orders on the Fund's behalf. The Fund will be deemed to have
received an order when an authorized financial intermediary or its
authorized designee accepts the order, and orders placed with an authorized
financial intermediary will be processed at the share price of the Series
next computed after they are received in good order by the financial
intermediary or its designee.
HOW TO EXCHANGE SHARES THROUGH THE FUND
You may exchange shares of the Series for the same class of shares of any
other Series of the Exeter Fund, if the registration of both accounts is
identical. If received with proper documentation before the close of
trading on the NYSE, exchange requests will be executed at that day's share
prices. Otherwise, they will be executed at the prices determined on the
next business day after receipt with proper documentation.
The minimum exchange amount is $1,000 (or all the shares in your account,
if less than $1,000). You may exchange up to 4 times during any 12-month
period without paying a sales charge or any other fee. For any additional
exchanges, you may be charged $15 per exchange. The Series may refuse any
exchange order and may alter, limit or suspend its exchange privilege on 60
days' notice. An exchange involves a taxable redemption of shares
surrendered in the exchange.
THROUGH THE FUND
If your financial intermediary provides account maintenance services, contact
your financial intermediary to redeem shares. If not:
BY MAIL
- Send a letter of instruction to Exeter Fund, Inc., at the address on
the opposite page, signed by each registered account owner, exactly as
your names appear on the account registration.
- Provide the name of the current Series, Series to exchange into and
dollar amount to be exchanged.
- Provide both account numbers.
BY TELEPHONE
- Unless you have declined telephone privileges, call the Fund at
1-800-466-3863.
- Provide the name of the current Series, Series to exchange into and
dollar amount to be exchanged.
- Provide both account numbers.
- The Fund may ask for identification, and all telephone transactions
are recorded.
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INVESTMENT AND ACCOUNT INFORMATION
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ACCOUNTS WITH LOW BALANCES
If your account falls below $1,000 due to the redemption of shares, the Fund may
ask you to bring your account up to the minimum requirement. If your account is
still below $1,000 after 60 days, the Fund may close your account and send you
the redemption proceeds.
IN-KIND PURCHASES AND REDEMPTIONS
Securities you own may be used to purchase shares of the Series. The Advisor
will determine if acquiring the securities is consistent with the Series' goals
and policies. If accepted, the securities will be valued the same way the Series
values securities it already owns.
The Series may make payment for shares in part by giving you portfolio
securities. As a redeeming shareholder, you will pay transaction costs to
dispose of these securities.
SIGNATURE GUARANTEES
A signature guarantee may be required for any written request to sell shares, or
to change the account registration.
The transfer agent will accept signature guarantees from:
- A member of the STAMP program or the NYSE's Medallion Signature
Program.
- A broker or securities dealer.
- A federal savings, cooperative or other type of bank.
- A savings and loan or other thrift institution.
- A credit union.
- A securities exchange or clearing agency.
A NOTARY PUBLIC CANNOT PROVIDE A SIGNATURE GUARANTEE.
VALUATION OF SHARES
The Series offers its shares at the net asset value (NAV) per share of the
Series. The Series calculates its NAV once daily as of the close of regular
trading on the NYSE (generally at 4:00 p.m., New York time) on each day the
exchange is open. If the exchange closes early, the Series will accelerate the
calculation of NAV and transaction deadlines to that time.
The Series values the securities in its portfolio on the basis of market
quotations and valuations provided by independent pricing services. If
quotations are not readily available, the Series values its assets by a method
that the directors believe accurately reflects fair value. A Series that uses
fair value to price securities may value those securities higher or lower than
another Series that uses market quotations to price the same securities.
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DIVIDENDS, DISTRIBUTIONS, AND TAXES
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DIVIDENDS AND DISTRIBUTIONS
The Series generally:
- Pays dividends once a year, in December.
- Makes capital gains distributions, if any, once a year, typically in
December.
The Series may pay additional distributions and dividends at other times if
necessary for the Series to avoid a federal tax.
Capital gain distributions and dividends are reinvested in additional shares of
the same class that you hold. Alternatively, you can instruct the transfer agent
in writing or by telephone to have your capital gains and/or dividends paid in
cash. You can change your choice at any time to be effective as of the next
distribution or dividend, except that any change given to the transfer agent
after the record date will not be effective until the next distribution or
dividend is made. No interest will accrue on amounts represented by uncashed
distribution or redemption checks.
TAXES
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TRANSACTION FEDERAL TAX STATUS
Redemption or exchange of shares Usually taxable as capital gain or loss;
long-term only if shares owned more
than one year
Long-term capital gain distributions Taxable as long-term capital gain
Short-term capital gain distributions Taxable as ordinary income
Dividends Taxable as ordinary income
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If you are a taxable investor, you may want to avoid buying shares when the
Series is about to declare a capital gain distribution or a dividend, because it
will be taxable to you even though it may actually be a return of a portion of
your investment.
After the end of each year, the Series will provide you with information about
the distributions and dividends that you received and any redemptions of shares
during the previous year. In calculating your gain or loss on any sale of
shares, note that your tax basis in your shares is increased by the amounts of
dividends and distributions that you have reinvested in a Series. Dividends and
distributions are taxable as described above whether received in cash or
reinvested.
If you do not provide the Series with your correct taxpayer identification
number and any required certifications, you may be subject to back-up
withholding of 31% of your distributions, dividends and redemption proceeds.
Because each shareholder's circumstances are different and special tax rules may
apply, you should consult with your tax adviser about your investment in the
Series and your receipt of dividends, distributions or redemption proceeds.
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EXETER FUND, INC.
PUREMARK-SM- SERIES
CLASS E SHARES
SHAREHOLDER REPORTS AND THE STATEMENT OF ADDITIONAL INFORMATION (SAI)
Annual and semiannual reports to shareholders provide additional information
about the Series' investments. These reports discuss the market conditions and
investment strategies that significantly affected the Series' performance during
its last fiscal year. The SAI provides more detailed information about the
Series. It is incorporated by reference into this prospectus.
HOW TO OBTAIN THESE REPORTS AND ADDITIONAL INFORMATION
- You may obtain shareholder reports, when available, and the SAI or
other information about the Series without charge, by calling
1-800-466-3863 or sending written requests to Exeter Fund, Inc., P.O.
Box 41118, Rochester, New York 14604.
- You may review shareholder reports, the prospectus and SAI at the
Securities and Exchange Commission's Public Reference Room in
Washington, D.C. You can get copies of these materials for a fee by
writing to the Public Reference Section of the Commission, Washington,
D.C. 20549-6009. Information about the public reference room may be
obtained by calling 1-800-SEC-0330. You can get the same reports and
information free from the SEC's Internet web site
(http://www.sec.gov).
If someone makes a statement about the Series that is not in this prospectus,
you should not rely upon that information. Neither the Series nor its
distributor is offering to sell shares of the Series to any person to whom the
Series may not lawfully sell its shares.
Investment Company Act file no. 811-04087
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