Prospectus
June 1, 2000
EXETER FUND, INC.
Defensive Series
Blended Asset Series I
Blended Asset Series II
Maximum Horizon Series
Class E Shares
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]
PAGE 1
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Exeter Asset Management is a division of Manning & Napier Advisors, Inc., which
was founded in 1970 and manages approximately $7 billion for individual and
institutional investors.
CONTENTS PAGE
Goals, Strategies, and Risks 4
Defensive Series 6
Blended Asset Series I 8
Blended Asset Series II 10
Maximum Horizon Series 12
More About the Series' Investments 14
How to Buy, Redeem, and Exchange Shares 16
Investment and Account Information 18
Dividends, Distributions, and Taxes 19
PAGE 3
<PAGE>
GOALS, STRATEGIES, AND RISKS
THE ADVISOR'S INVESTMENT STRATEGIES
The Defensive Series, Blended Asset Series I, Blended Asset Series II, and
Maximum Horizon Series are asset allocation funds. Each invests in a
combination of stocks, bonds, and cash and is managed according to specific
goals discussed on the following pages.
A team of investment professionals manages each Series' portfolio using a
multi-strategy approach. The top-down group establishes broad policies regarding
the mix of stocks, bonds and cash that is appropriate in light of the investment
goals of each Series under prevailing market conditions. Stock analysts and
fixed income analysts select individual securities after a peer review for
consistency with the Advisor's disciplines. The specific criteria applied by
each group in allocating assets and selecting securities are set forth on the
opposite page.
HOW THE ADVISOR ALLOCATES ASSETS WITHIN EACH SERIES
The Series offer a range of investment opportunities from fairly conservative to
fairly aggressive. As you move along the investment risk spectrum, the emphasis
on growth increases while the focus on capital preservation declines. This
movement toward growth usually involves a higher percentage of the portfolio
being invested in stocks and the portion of the portfolio being invested in
bonds generally containing longer term maturities.
The pie charts below illustrate how the make-up of each Series' portfolio has
varied in the past.
The Advisor believes that the most important factor affecting portfolio
performance is asset allocation.
HISTORICAL HIGH AND LOW STOCK EXPOSURES
[Pie Charts]
<TABLE>
<CAPTION>
Defensive Series 6/30/96 - 12/31/99
<S> <C> <C> <C>
High Bonds: 78.3%
Stocks: 19.8%
Cash: 1.9%
Low Bonds: 71.0%
Stocks: 6.2%
Cash: 22.8%
Blended Asset Series I 3/31/94 - 12/31/99
High Bonds: 47.6%
Stocks: 50.1%
Cash: 2.3%
Low Bonds: 64.9%
Stocks: 18.4%
Cash: 16.7%
Blended Asset Series II 3/31/94 - 12/31/99
High Bonds: 26.7%
Stocks: 70.1%
Cash: 3.2%
Low Bonds: 52.7%
Stocks: 44.3%
Cash: 3.0%
Maximum Horizon Series 6/30/96 - 12/31/99
High Bonds: 2.2%
Stocks: 95.5%
Cash: 2.3%
Low Bonds: 27.3%
Stocks: 72.7%
</TABLE>
A Series' actual asset allocation may vary from that shown above depending
primarily on current or anticipated market trends.
PAGE 4
<PAGE>
TOP-DOWN GROUP (INVESTMENT POLICY GROUP)
This team establishes the maximum and minimum percentages of assets each Series
will invest in U.S. and foreign stocks, bonds and cash equivalents. The team
also establishes investment policies and guidelines used by the other groups to
set prices at which each Series may purchase and sell individual securities. In
making these decisions, the Advisor focuses on:
_ a Series' risk management priorities
_ economic factors such as inflation, employment and interest rate trends
_ the outlook for corporate earnings
_ stock valuations (e.g., price to earnings and price to book ratios)
_ supply and demand for various asset classes
Based on these inputs, and working within the minimum and maximum parameters set
by this group, the teams of stock and fixed income analysts adjust asset
allocation with each bottom-up decision.
Within each Series' holdings, the Advisor generally increases the weighting in
stocks when it believes stock valuations are attractive and when economic
factors appear favorable. For instance, the stock holdings may tend to rise if
the Advisor expects corporate earnings to rise, interest rates to fall, or
inflation to be low.
The Advisor will generally increase holdings in bonds when it believes stocks
are overvalued or when it expects stocks to underperform. It also may increase
bond holdings when it expects interest rates to fall and create the opportunity
to capture capital gains as bond prices rise.
STOCK ANALYSTS (INVESTMENT RESEARCH GROUP)
This team selects individual stocks by looking for companies with one or more of
the following characteristics:
_ strong strategic profiles (e.g., strong market position, benefits from
technology, market share gains in a mature market and high barriers to
entry)
_ improving market share in consolidating industries
_ low price relative to fundamental or breakup value
FIXED INCOME ANALYSTS (FIXED INCOME GROUP)
This team selects individual bonds, emphasizing bond market sectors and
securities that it believes offer yields sufficient to compensate the investor
for the risks specific to the sector or security. In evaluating bonds, the
Advisor considers:
_ Interest rate sensitivity of particular sectors and securities
_ Narrowing or widening of interest rate spreads between sectors, securities
of different credit quality or securities of different maturities
_ For mortgage-related and asset-backed securities, anticipated changes in
prepayment rates
PAGE 5
<PAGE>
GOALS, STRATEGIES, AND RISKS
DEFENSIVE SERIES
INVESTMENT GOALS
Primary: Preservation of capital
Secondary: Long-term growth of capital
INVESTMENT STRATEGIES
The Series invests primarily in fixed income securities of the U.S. government
and U.S. companies, although it may also invest in common stocks of U.S.
issuers. The Advisor typically focuses on fixed income securities with short to
intermediate term maturities of 3 to 5 years but may also invest to a limited
extent in longer term securities (such as bonds with maturities of 10 years or
more) and stocks. The Fund may invest in American Depository Receipts (ADRs)
and other U.S. dollar denominated securities of foreign issuers. In pursuit of
the Series' primary goal, the Advisor seeks to protect capital while generating
income. The Advisor may simultaneously seek growth opportunities as a secondary
priority.
PRINCIPAL RISKS OF INVESTING IN THE SERIES
Because the Series invests principally in bonds, the value of your investment
will fluctuate with changes in interest rates. This means that you could lose
money on your investment in the Series or the Series could underperform if any
of the following occurs:
_ Interest rates go up, which will make bond prices go down and reduce the
value of the Series' bond portfolio.
_ The issuer of a bond owned by the Series defaults on its obligation to pay
principal and/or interest or has its credit rating downgraded.
Because the Series may also invest in stocks and U.S. dollar denominated
securities of foreign issuers, the Series carries additional risks. The value
of your investment may decline if the U.S. and/or foreign stock markets decline
or an adverse event, such as an unfavorable earnings report, depresses the value
of a particular company's stock. The prices of foreign common stocks may, at
times, move in a different direction than the prices of U.S. common stocks.
The value of your investment may also decline if the Advisor's judgements about
the attractiveness, relative value and potential appreciation of a particular
security or strategy prove to be incorrect.
PAGE 6
<PAGE>
SUMMARY OF PAST PERFORMANCE
The bar chart and total return table provide some indication of the risks of
investing in Class A Shares of the Series. No Class E Shares were outstanding
during the past year. Class A Shares are offered in a separate prospectus which
may be obtained by contacting the Fund. Class E shares would have different
performance due to their different expenses. The bar chart shows changes in the
performance of the Class A shares of the Series for each full calendar year
since its inception. The total return table shows how the average annual total
returns for the Class A shares for different periods compare to those of the
Lehman Brothers Intermediate Bond Index and a blended index, 15% of which is the
Standard & Poor's 500 Composite Index and 85% of which is the Lehman Brothers
Intermediate Bond Index. Since the Series' asset allocation will vary over time,
the Series' portfolio may not match the benchmarks' asset allocation at any
given time.
DEFENSIVE SERIES - CLASS A
% TOTAL RETURN
[Bar chart showing the percent total return for the Defensive Series for 1996,
1997, 1998 and 1999. The results are 3.44% for 1996, 9.77% for 1997, 6.05% for
1998 and 2.01% for 1999]
CALENDAR YEARS ENDED DECEMBER 31
<TABLE>
<CAPTION>
Avg. Annual
Total Returns Since Inception
for periods ended 12/31/99) 1 Year on 11/1/95
<S> <C> <C>
Class A shares 2.01% 5.60%
Indices:
Lehman Brothers Intermediate
Bond Index 0.39% 5.51%
15%/85% Blended Index 3.35% 8.66%
Quarterly Returns
Highest: 4.56% in 2nd quarter 1997
Lowest: -1.18% in 1st quarter 1996
</TABLE>
The Lehman Brothers Intermediate Bond Index is an unmanaged index of corporate
and government bonds with maturities ranging from one to ten years.
The S&P 500 Index is an unmanaged index of common stocks.
PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE SERIES WILL PERFORM IN
THE FUTURE.
FEES AND EXPENSES OF THE SERIES
This table estimates the fees and expenses you may pay if you invest in shares
of the Series.
<TABLE>
<CAPTION>
Defensive Series
- Class E
<S> <C>
Shareholder fees
(paid directly from your investment) None1
Annual Fund operating expenses
(expenses that are deducted from
assets of the Series)2
Management fee 0.80%
Distribution and service
(Rule 12b-1) fees 0.25%
Other expenses 2.06%
Total annual Fund operating expenses 3.11%
Less fee waivers and
expense reimbursements (1.86)%2
Net Expenses 1.25%
</TABLE>
1 A wire charge, currently $15, may be deducted from the amount of a wire
redemption payment made at the request of a shareholder. A shareholder may
effect up to four (4) exchanges in a twelve (12) 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 1.25% of the Class E Shares' average daily net assets. This
contractual waiver will remain in effect until at least February 28, 2001 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 Fund's 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:
<TABLE>
<CAPTION>
After After
1 year 3 years
<S> <C>
$127* $ 785*
</TABLE>
*Based on Total Annual Fund Operating Expenses after fee waivers and operating
expenses for year 1 only.
No Class E Shares had been issued as of the date of this prospectus; therefore
the "Annual Fund Operating Expenses" presented are estimates based upon
projections made by the Advisor. In addition, the Fund has not calculated these
expenses beyond the three-year period shown.
PAGE 7
<PAGE>
GOALS, STRATEGIES, AND RISKS
BLENDED ASSET SERIES I
INVESTMENT GOALS
Equal emphasis on long-term growth of capital and preservation of capital
INVESTMENT STRATEGIES
The Series invests primarily in common stocks and intermediate to long-term,
fixed income securities of the U.S. government and U.S. companies. The Series
may also invest in ADRs and other U.S. dollar denominated securities of foreign
issuers, including those in emerging markets. The Advisor typically focuses on
fixed income securities with maturities of 5 to 10 years but may invest in
securities of any maturity. The Advisor seeks to balance conflicting goals of
growth of capital and preservation of capital in order to generate a more stable
rate of growth for this portfolio relative to an investment in the general stock
market.
PRINCIPAL RISKS OF INVESTING IN THE SERIES
Because the Series invests in both stocks and bonds, the value of your
investment will fluctuate in response to stock market movements and changes in
interest rates. This means that you could lose money on your investment in the
Series or the Series could underperform if any of the following occurs:
_ U.S. and/or foreign stock or bond markets decline.
_ An adverse event, such as an unfavorable earnings report, depresses the
value of a particular company's stock.
_ Interest rates go up, which will make bond prices go down and reduce the
value of the Series' bond portfolio.
_ The issuer of a bond owned by the Series defaults on its obligation to pay
principal and/or interest or has its credit rating downgraded. This risk is
higher for lower quality bonds.
Because the Series may invest in U.S. dollar denominated securities of foreign
issuers, the Series is subject to the following additional risks:
_ The prices of foreign common stocks may, at times, move in a different
direction than the prices of U.S. stocks.
_ Investments in emerging market countries may be more volatile than
investments in more developed countries.
The value of your investment may also decline if the Advisor's judgments about
the attractiveness, relative value and potential appreciation of a particular
security or strategy prove to be incorrect.
PAGE 8
SUMMARY OF PAST PERFORMANCE
The bar chart and total return table provide some indication of the risks of
investing in Class A Shares of the Series. No Class E Shares were outstanding
during the past year. Class A Shares are offered in a separate prospectus which
may be obtained by contacting the Fund. Class E Shares would have different
performance due to their different expenses. The bar chart shows changes in the
performance of the Class A shares of the Series for each full calendar year
since its inception. The total return table shows how the average annual total
returns for the Class A shares for different periods compare to those of the
Lehman Brothers Intermediate Bond Index and a blended index, 30% of which is the
Standard & Poor's 500 Composite Index and 70% of which is the Lehman Brothers
Intermediate Bond Index. Since the Series' asset allocation will vary over
time, the Series' portfolio may not match the benchmarks' portfolios at any
given time.
BLENDED ASSET SERIES I - CLASS A
% TOTAL RETURN
[Bar chart showing the percent total return for the Blended Asset Series I for
1994, 1995, 1996, 1997, 1998, and 1999. The results are -0.80 for 1994, 21.08%
for 1995, 7.73% for 1996, 13.95% for 1997, 6.81% for 1998 and 5.44% for 1999.]
CALENDAR YEARS ENDED DECEMBER 31
<TABLE>
<CAPTION>
Avg. Annual Since
Total Returns Inception on
(for periods ended 12/31/99) 1 Year 5 Years 9/15/93
<S> <C> <C> <C>
Class A shares 5.44% 10.85% 8.54%
Indices:
Lehman Brothers
Intermediate Bond Index 0.39% 7.10% 5.32%
30%/70% Blended Index 6.37% 13.09% 10.46%
Quarterly Returns
Highest: 8.67% in 4th quarter 1998
Lowest: -4.42% in 3rd quarter 1998
</TABLE>
The Lehman Brothers Intermediate Bond Index is an unmanaged index of corporate
and government bonds with maturities ranging from one to ten years.
The S&P 500 Index is an unmanaged index of common stocks.
PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE SERIES WILL PERFORM IN
THE FUTURE.
FEES AND EXPENSES OF THE SERIES
This table estimates the fees and expenses you may pay if you invest in shares
of the Series.
<TABLE>
<CAPTION>
Blended Asset
Series I
- Class E
<S> <C>
Shareholder fees
(paid directly from your investment) None1
Annual Fund operating expenses
(expenses that are deducted from
assets of the Series)2
Management fee 1.00%
Distribution and service
(Rule 12b-1) fees 0.25%
Other expenses 0.49%
Total annual Fund operating expenses 1.74%
Less fee waivers and
expense reimbursements (0.29)%2
Net Expenses 1.45%
</TABLE>
1 A wire charge, currently $15, may be deducted from the amount of a wire
redemption payment made at the request of a shareholder. A shareholder may
effect up to four (4) exchanges in a twelve (12) 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 1.45% of the Class E Shares' average daily net assets. This
contractual waiver will remain in effect until at least February 28, 2001 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 Fund's 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:
<TABLE>
<CAPTION>
After After
1 year 3 years
<S> <C>
$148* $520*
</TABLE>
*Based on Total Annual Fund Operating Expenses after fee waivers and operating
expenses for year 1 only.
No Class E Shares had been issued as of the date of this prospectus; therefore
the "Annual Fund Operating Expenses" presented are estimates based upon
projections made by the Advisor. In addition, the Fund has not calculated these
expenses beyond the three-year period shown.
PAGE 9
<PAGE>
GOALS, STRATEGIES, AND RISKS
BLENDED ASSET SERIES II
INVESTMENT GOALS
Primary: Long-term growth of capital
Secondary: Preservation of capital
INVESTMENT STRATEGIES
The Series invests primarily in common stocks but may also invest a substantial
portion of its assets in long-term, fixed income securities of the U.S.
government and U.S. companies. The Series may also invest in ADRs and other
U.S. dollar denominated securities of foreign issuers, including those in
emerging markets. The Advisor typically focuses on fixed income securities with
maturities of 7 to 20 years but may invest in securities of any maturity. By
focusing on growth of capital and, to a lesser extent on preservation of
capital, the Advisor seeks to participate, over the long term, in the growth of
the stock market, but with less volatility than is typically associated with an
investment in the general stock market.
PRINCIPAL RISKS OF INVESTING IN THE SERIES
Because the Series invests in both stocks and bonds, the value of your
investment will fluctuate in response to stock market movements and changes in
interest rates. This means that you could lose money on your investment in the
Series or the Series could underperform if any of the following occurs:
_ U.S. and/or foreign stock or bond markets decline.
_ An adverse event, such as an unfavorable earnings report, depresses the
value of a particular company's stock.
_ Interest rates go up, which will make bond prices go down and reduce the
value of the Series' bond portfolio.
_ The issuer of a bond owned by the Series defaults on its obligation to pay
principal and/or interest or has its credit rating downgraded. This risk is
higher for lower quality bonds.
Because the Series may invest in U.S. dollar denominated securities of foreign
issuers, the Series is subject to the following additional risks:
_ The prices of foreign common stocks may, at times, move in a different
direction than the prices of U.S. stocks.
_ Investments in emerging market countries may be more volatile than
investments in more developed countries.
The value of your investment may also decline if the Advisor's judgments about
the attractiveness, relative value and potential appreciation of a particular
security or strategy prove to be incorrect.
PAGE 10
<PAGE>
SUMMARY OF PAST PERFORMANCE
The bar chart and total return table provide some indication of the risks of
investing in Class A Shares of the Series. No Class E Shares were outstanding
during the past year. Class A Shares are offered in a separate prospectus which
may be obtained by contacting the Fund. Class E Shares would have different
performance due to their different expenses. The bar chart shows changes in the
performance of the Class A shares of the Series for each full calendar year
since its inception. The total return table shows how the average annual total
returns for the Class A shares for different periods compare to those of the
Merrill Lynch Corporate/Government Master Bond Index and a blended index, 50% of
which is the Standard & Poor's 500 Composite Index and 50% of which is the
Lehman Brothers Aggregate Bond Index. Since the Series' asset allocation will
vary over time, the Series' portfolio may not match the benchmarks' portfolios
at any given time.
BLENDED ASSET SERIES II - CLASS A
% TOTAL RETURN
[Bar chart showing the percent total return for the Blended Asset Series II for
1994, 1995, 1996,1997, 1998 and 1999. The results are 3.52% for 1994, 32.64%
for 1995, 14.06% for 1996, 17.54% for 1997, 2.87% for 1998 and 11.07% for 1999.]
CALENDAR YEARS ENDED DECEMBER 31
<TABLE>
<CAPTION>
Avg. Annual Since
Total Returns Inception on
(for periods ended 12/31/99) 1 Year 5 Years 10/12/93
<S> <C> <C> <C>
Class A shares 11.07% 15.23% 12.66%
Indices:
Merrill Lynch Corp./Government
Master Bond Index -2.05% 7.60% 5.30%
50%-50% Blended Index 9.80% 17.98% 14.17%
Quarterly returns
Highest: 11.06% in 4th quarter 1998
Lowest: -9.88% in 3rd quarter 1998
</TABLE>
The Merrill Lynch Corporate/Government Master Bond Index is comprised of
investment grade securities with maturities greater than one year.
The S&P 500 Index is an unmanaged index of common stocks.
The Lehman Brothers Aggregate Bond Index is an unmanaged index of investment
grade bonds and mortgage-backed securities with maturities of at least one year.
PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE SERIES WILL PERFORM IN
THE FUTURE.
FEES AND EXPENSES OF THE SERIES
This table estimates the fees and expenses you may pay if you invest in shares
of the Series.
<TABLE>
<CAPTION>
Blended Asset
Series II
- Class E
<S> <C>
Shareholder fees
(paid directly from your investment) None1
Annual Fund operating expenses
(expenses that are deducted from
assets of the Series)2
Management fee 1.00%
Distribution and service
(Rule 12b-1) fees 0.25%
Other expenses 0.30%
Total annual Fund operating expenses 1.55%
Less fee waivers and
expense reimbursements (0.10)%2
Net Expenses 1.45%
</TABLE>
1 A wire charge, currently $15, may be deducted from the amount of a wire
redemption payment made at the request of a shareholder. A shareholder may
effect up to four (4) exchanges in a twelve (12) 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 1.45% of the Class E Shares' average daily net assets. This
contractual waiver will remain in effect until at least February 28, 2001 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 Fund's 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:
<TABLE>
<CAPTION>
After After
1 year 3 years
<S> <C>
$148* $480*
</TABLE>
* Based on Total Annual Fund Operating Expenses after fee waivers and operating
expenses for year 1 only.
No Class E Shares had been issued as of the date of this prospectus; therefore
the "Annual Fund Operating Expenses" presented are estimates based upon
projections made by the Advisor. In addition, the Fund has not calculated these
expenses beyond the three-year period shown.
PAGE 11
<PAGE>
GOALS, STRATEGIES, AND RISKS
MAXIMUM HORIZON SERIES
INVESTMENT GOAL
Long-term growth of capital
INVESTMENT STRATEGIES
The Series invests primarily in common stocks, but may invest to a limited
extent in fixed income securities of the U.S. government and U.S. companies.
The Series may also invest in ADRs and other U.S. dollar denominated securities
of foreign issuers, including those in emerging markets. The Advisor seeks to
generate the high level of long-term capital growth typically associated with an
investment in the general stock market for this portfolio.
PRINCIPAL RISKS OF INVESTING IN THE SERIES
As with any growth fund, the value of your investment will fluctuate in response
to stock market movements. This means that you could lose money on your
investment in the Series or the Series could underperform if any of the
following occurs:
_ U.S. and/or foreign stock markets decline.
_ An adverse event, such as an unfavorable earnings report, depresses the
value of a particular company's stock.
Because the Series may also invest in bonds and U.S. dollar denominated
securities of foreign issuers, the Series carries additional risks. If interest
rates go up, bond prices will generally go down and reduce the value of the
Series' bond portfolio. The prices of foreign common stocks may, at times, move
in a different direction than the prices of U.S. common stocks. Investments in
emerging market countries may be more volatile than investments in more
developed countries.
The value of your investment may also decline if the Advisor's judgments about
the attractiveness, relative value and potential appreciation of a particular
security or strategy prove to be incorrect.
PAGE 12
<PAGE>
SUMMARY OF PAST PERFORMANCE
The bar chart and total return table provide some indication of the risks of
investing in Class A Shares of the Series. No Class E Shares were outstanding
during the past year. Class A Shares are offered in a separate prospectus which
may be obtained by contacting the Fund. Class E Shares would have different
performance due to their different expenses. The bar chart shows changes in the
performance of the Class A shares of the Series for each full calendar year
since its inception. The total return table shows how the average annual total
returns for the Class A shares for different periods compare to those of the
Standard & Poor's 500 Composite Index. Since the Series' asset allocation will
vary over time, the Series' portfolio may not match the benchmark's portfolio at
any given time.
MAXIMUM HORIZON SERIES - CLASS A
% TOTAL RETURN
[Bar chart showing the percent total return for the Maximum Horizon Series for
1996, 1997, 1998 and 1999. The results are 17.57% for 1996, 20.39% for 1997,
1.19% for 1998 and 33.04% for 1999.]
CALENDAR YEARS ENDED DECEMBER 31
<TABLE>
<CAPTION>
Avg. Annual Total Returns Since Inception
(for periods ended 12/31/99) 1 Year on 11/1/95
<S> <C> <C>
Class A shares 33.04% 17.69%
S&P 500 Index 21.04% 27.06%
Quarterly returns
Highest: 19.64% in 4th quarter 1998
Lowest: -19.41% in 3rd quarter 1998
</TABLE>
The S&P 500 Index is an unmanaged index of common stocks.
PAST PERFORMANCE DOES NOT NECESSARILY INDICATE HOW THE SERIES WILL PERFORM IN
THE FUTURE.
FEES AND EXPENSES OF THE SERIES
This table estimates the fees and expenses you may pay if you invest in shares
of the Series.
<TABLE>
<CAPTION>
Maximum Horizon Series
- Class E
<S> <C>
Shareholder fees
(paid directly from your investment) None1
Annual Fund operating expenses
(expenses that are deducted from
assets of the Series)2
Management fee 1.00%
Distribution and service
(Rule 12b-1) fees 0.25%
Other expenses 0.66%
Total annual Fund operating expenses 1.91%
Less fee waivers and
expense reimbursements (0.46)%2
Net Expenses 1.45%
</TABLE>
1 A wire charge, currently $15, may be deducted from the amount of a wire
redemption payment made at the request of a shareholder. A shareholder may
effect up to four (4) exchanges in a twelve (12) month period without charge.
Subsequent exchanges are subject to a fee of $15.
2 The Advisor has contractually agreed to limit its fee and reimburse expenses
to the extent necessary so that the Series' total annual fund operating expenses
do not exceed 1.45% of the Class E Shares' average daily net assets. This
contractual waiver will remain in effect until at least February 28, 2001 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 Fund's 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:
<TABLE>
<CAPTION>
After After
1 year 3 years
<S> <C>
$148* $555*
</TABLE>
*Based on Total Annual Fund Operating Expenses after fee waivers and operating
expenses for year 1 only.
No Class E Shares had been issued as of the date of this prospectus; therefore
the "Annual Fund Operating Expenses" presented are estimates based upon
projections made by the Advisor. In addition, the Fund has not calculated these
expenses beyond the three-year period shown.
PAGE 13
<PAGE>
MORE ABOUT THE SERIES' INVESTMENTS
PRINCIPAL INVESTMENTS
EQUITY SECURITIES
Each Series may invest in equity securities of U.S. and foreign companies.
These will usually be exchange-traded and over-the-counter (OTC) common stocks,
but may include preferred stocks, warrants, rights, convertible debt securities,
and equity participations.
FOREIGN SECURITIES
The Series may invest in ADRs and other U.S. dollar denominated securities
of foreign issuers. ADRs are securities that are listed and traded in the United
States but represent an ownership interest in securities issued by a foreign
issuer. Prices of foreign securities may go down because of foreign government
actions, political instability or the more limited availability of accurate
information about foreign companies.
FIXED INCOME SECURITIES
Each Series may invest in fixed income securities of any maturity or
duration. These securities may be issued by the U.S. government or any of its
agencies, foreign governments, supranational entities such as the World Bank,
and U.S. and foreign companies. Investments in fixed income securities may have
all types of interest rate payment and reset terms and may include
mortgage-backed, asset-backed and derivative securities. Each Series invests
primarily in investment grade securities, but may invest up to 20% of assets in
lower quality bonds, commonly known as "junk bonds." These bonds are considered
speculative because they have a higher risk of issuer default, are subject to
greater price volatility and may be illiquid.
ADDITIONAL RISKS
EMERGING MARKET RISK
The Series may be exposed to risks associated with investments in emerging
market countries. Emerging market countries are foreign countries that are
generally considered to be less developed than the United States, Canada, Japan,
Australia, New Zealand, and most of the nations in Western Europe. As a result,
they may be more likely to experience political, social, or economic turmoil.
In addition, the financial conditions of issuers in these countries may be more
precarious than those in developed countries.
DEFENSIVE INVESTING
Each Series may depart from its principal investment strategies by taking
temporary defensive positions in response to adverse market, economic or
political conditions. If a Series takes a temporary defensive position, it may
be unable to achieve its investment goals.
The Series' Investment Goals
The Series' board of directors may change each Series' investment goals
(described above under "Goals, Strategies, and Risks") without obtaining the
approval of the Series' shareholders. A Series might not succeed in achieving
its goals.
PAGE 14
<PAGE>
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 approximately $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
an annual management fee which is computed daily and payable monthly by the
Series as described below.
<TABLE>
<CAPTION>
Annual Management Fees (as a percentage of daily net assets)
Actual
Management Fee
Paid for year Contractual
Series ended 10/31/99 management fee
<S> <C> <C>
Defensive Series 0.23% 0.80%
Blended Asset Series I 0.97% 1.00%
Blended Asset Series II 1.00% 1.00%
Maximum Horizon Series 0.92% 1.00%
</TABLE>
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. Your financial intermediary can tell you which class of
shares is available through the intermediary.
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.
PAGE 15
<PAGE>
HOW TO BUY, REDEEM, AND EXCHANGE SHARES
HOW TO BUY SHARES
Class E shares are offered 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 reserve the right to reject
purchase orders or to stop offering their 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 p.m. 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.
BY MAIL
THROUGH THE FUND
If your financial intermediary does not provide account maintenance services,
contact the Fund to purchase shares.
OPENING AN ACCOUNT
_ Send a check payable to Exeter Fund, Inc. with the completed original
account application.
The address is:
Exeter Fund, Inc.
P.O. Box 41118
Rochester, NY 14604
_ 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.
HOW TO REDEEM SHARES
THROUGH THE FUND
If your financial intermediary does not provide account maintenance services,
contact the Fund to redeem shares.
_ Send a letter of instruction to Exeter Fund, Inc., at the address above
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).
PAGE 16
<PAGE>
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), generally 4:00 p.m. 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 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
You may exchange Class E shares of the Series for Class E shares of any other
Series of the Exeter Fund currently available for direct investment if the
registration of both accounts is identical. If received with proper
documentation before the close of trading on the NYSE, generally 4:00 p.m. New
York time, 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 exchange 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.
BY TELEPHONE
_ Provide both account numbers.
_ 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.
PAGE 17
<PAGE>
INVESTMENT AND ACCOUNT INFORMATION
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 a 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.
A 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:
_ Members 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
Each Series offers its shares at the net asset value (NAV) per share of the
Series. Each Series calculates its NAV once daily as of the close of regular
trading on the New York Stock Exchange (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.
Each 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, or the value of a security has been
materially affected by events occurring after the closing of a foreign exchange,
each 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 mutual fund that uses market
quotations to price the same securities.
PAGE 18
<PAGE>
DIVIDENDS, DISTRIBUTIONS, AND TAXES
DIVIDENDS AND DISTRIBUTIONS
Each Series generally:
_ Pays dividends twice a year, in June and December.
_ Makes capital gains distributions, if any, once a year, typically in
December.
A 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 Fund 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
<TABLE>
<CAPTION>
Transaction Federal Tax Status
<S> <C>
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
Dividend Taxable as ordinary income
</TABLE>
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.
PAGE 19
<PAGE>
EXETER FUND, INC.
Defensive Series
Blended Asset Series I
Blended Asset Series II
Maximum Horizon Series
Class E Shares
SHAREHOLDER REPORTS AND THE STATEMENT OF ADDITIONAL INFORMATION (SAI)
Annual and semi-annual reports to shareholders provide additional information
about each Series' investments. These reports discuss the market conditions and
investment strategies that significantly affected each Series' performance
during its last fiscal year. The SAI provides more detailed information about
each Series. It is incorporated by reference into this combined prospectus.
HOW TO OBTAIN THESE REPORTS AND ADDITIONAL INFORMATION
_ You may obtain shareholder reports and the SAI or other information about
the Fund 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 and copy shareholder reports, the prospectus and SAI at the
Securities and Exchange Commission's Public Reference Room in Washington,
D.C. Information about the public reference room may be obtained by calling
1-202-942-8090. 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 or by e-mail to [email protected]. You can get the same reports
and information free from the EDGAR Database on the SEC's Internet web site
(http://www.sec.gov).
If someone makes a statement that is not in this prospectus about any of the
Series, you should not rely upon that information. Neither the Series nor their
distributor is offering to sell shares of the Series to any person to whom the
Series may not lawfully sell their shares.
Investment Company Act File No. 811-04087
PAGE 20
